How Do I Sell My Home With a Tenant?

There are a lot of important factors to consider when selling real estate – especially if there are tenants involved. 

Whether you’re a landlord who’s looking to sell their investment property or are a homeowner who hosts tenants in a basement suite or spare room, navigating the sale process from start to finish can seem like a handful. However, if you know what to expect and have the right support by your side, you can sell your tenanted property with minimal stress (and for top dollar)! 

In this blog, we’ll cover some of the essential considerations of selling a property when you have tenants. 

As a hot topic in recent years, there are a lot of myths out there about owning income property in the GTA. Click here to read our post on the 5 biggest misconceptions about investing in real estate. 

Start With an Expert

The most effective way to begin your selling process is to get in touch with a local real estate agent – bonus points if they specialize in working with investors and landlords. An agent’s professional expertise is critical to your success in any type of home sale, however, it’s even more valuable when tenants living in the property. 

First and foremost a great agent will help you make the most of your sale, ensuring you’re able to sell for the most amount of money in the shortest amount of time. On top of that, they’ll help you stay informed of your responsibilities as a landlord before, during, and after your sale. This includes all the critical legal nuances as well as guidance on things like communication. 

In need of more investor-oriented real estate advice? Check out these helpful blog posts. 

• How to Create Wealth Investing in Canadian Real Estate
• Helpful Tips For New Landlords
• How to Buy an Investment Property in the GTA

Understanding Your Responsibilities (and Rights!)

Selling a property that is currently lived in (by someone other than the owner) will come with a little bit of red tape. Although following various rules and regulations is par for the course as an investor and landlord, there will be a few new complexities to be aware of when you actually sell your property. 

That said, these regulatory obligations are far less cumbersome than many property owners assume – and, you’ll also have a distinct set of rights as a landlord that keep your interests protected during the sale too. 

Must-Knows & Tenant Timelines

So what are your primary responsibilities and must-knows when selling with tenants? There are a few. 

First, it’s important to address whether or not one or more of your tenants are still under the first 12 months of their lease. As per the Ontario Residential Tenancies Act (RTA), if any tenants are still within the first 12 months of their lease, it must be honoured should they wish to stay in the property. Of course, you’re still able to begin and proceed with your sale during that time. However, a buyer will not be able to pursue an eviction until the initial year of the lease has concluded. 

All that said, you don’t need to proactively evict tenants (those beyond the initial years of their lease) simply because you are selling the property. In some cases, having existing tenants could be a plus for interested buyers. Instead, maintaining open communication with your tenants as you sell can help make the process smoother for everyone involved. 

Searching for more insights on buying and operating a rental property in the GTA? Explore these other posts from our blog. 

• 3 Reasons to Own a Condo Before a House
• The Ultimate Property Maintenance Checklist
• An Investor’s Guide to Pre-Construction Condos

What About Showings?

Along with lease timelines, showings are another area where tenants have a fair amount of regulatory protection. 

When buyers are set to begin touring the property, you must provide your tenants with a minimum of 24 hours notice before entering their room or unit. Also outlined by the RTA, showings can only be scheduled between the hours of 8 AM and 8 PM. 

It’s also worth noting that tenants may legally be present during the showing if they choose, however, you are allowed to ask them to temporarily vacate if you or your real estate agent would prefer the property to be vacant during showings. 

Selling your tenanted property? Our team can guide you through a smooth process that doesn’t compromise on results. Call our team at 416-571-2724 or email info@arciteam.com to get started.