Selling a property with tenants – whether it’s your primary home or a dedicated income property is fairly intricate. In addition to the standard processes of selling, you’ll be required to navigate a wide range of red tape. 

As a landlord, understanding the legalities of selling a tenanted property is an imperative step in avoiding potential setbacks, penalties, or other adversities.   

In this blog post, we’ll touch on critical information that sellers with tenants will need to know before heading to the market. 

Getting Started 

As a property owner, you have the right to sell your home whenever you wish. However, if you have tenants, they will also have certain rights and protections that can impact your sale. Therefore, if you intend to sell your home, it’s imperative to start planning early. 

Be aware that Ontario tenant rights apply to a wide range of rental types. Even if you are not a full-time investor, or personally share a home with one or two tenants, you will still need to adhere to various rules and regulations. 

From a legal perspective, there’s no formal requirement to inform your tenants about your intentions to sell until the home is actually sold. However, offering notice well in advance can make the selling process significantly easier. 

Seeking market-informed advice about amplifying your home sale? Explore these other resources from our blog. 

• 7 Important Steps to Prepare For the Sale of Your Toronto Property
• Do I Need to Renovate Before I Sell?
• How to Get 100% of List Price in Your Toronto Home Sale

Tenant Rights & Timelines

Depending on how long your tenants have lived in your home, you may need to adjust your selling timeline. For instance, if one of your tenants is still within the first twelve months of their lease, you must honour the terms of their agreement under the Ontario Residential Tenancies Act (RTA). As a result, you cannot pursue formal eviction until the lease is up. However, this doesn’t necessarily mean that you have to wait to sell your home. 

In some instances, certain tenant obligations may be passed onto the buyer. If you have a new tenant, you can still legally sell your property while they are under lease. However, the incoming buyer will not be able to evict the tenant until it is up. That said, there are a number of active investors and buyers in the GTA who are willing to purchase a tenanted home so finding the ideal buying candidate may be easier than you think. 

There are other potential solutions if you’re aiming to sell on a shorter timeline. For instance, you could offer your tenants a cash bonus for ending their lease early. 

Selling Without Tenants

If you wish to evict tenants before you begin the selling process, you are required to provide a minimum of 60 days’ notice. Once again, any tenants facing eviction must be beyond the first twelve months of their lease. 

Scheduling Showings 

Another important element to consider when selling with tenants is coordinating showings.

When it comes to showings there are two main restrictions to be aware of. First, showings may only be scheduled between eight in the morning and eight at night. Second, you or your real estate agent must provide your tenants with a minimum of 24 hours notice before entering their room, unit, or living space. 

Under the RTA, you may ask tenants to vacate the home during showings, however, they are permitted to be present if they choose. 

Searching for investor-focused real estate resources? Consider these related blog posts. 

• Investing in the GTA Suburbs
• Using a Full-Service Real Estate Team to Maximize Your Investment
• How Accurate Are Real Estate Headlines

Navigating Your Sale

In a competitive market like the GTA, selling your property with or without tenants is an intricate process. Your path to success begins with enlisting the help of a specialized expert – like Bahia Realty Group. 

As strategic investors ourselves, we are exceptionally well-versed in the nuances of tenant rights and other important processes that will impact your sale. We’ll provide you with an in-depth education on the RTA, best practices for tenant communication, and value-adding components of your sale. 

In addition to our investor-specialized expertise, our leading selling strategies ensure you enjoy a successful, high-return sale. Anchored by our 100% of list price guarantee, our unique selling tactics have proven effective in a vast range of market conditions and circumstances. 

After guiding you toward a high-value return on your asset, we can assist you in identifying other lucrative opportunities suited to your portfolio. 

If you’re looking for an uncompromising, high-performance real estate team that can help you sell for the absolute highest dollar, look no further than Bahia Realty Group. Click here to send us an email or call 416-498-3444 to get in touch.