Selling a tenanted home in Ontario requires careful attention to detail and following the laws and regulations governing landlord-tenant relationships. Let me give you a rundown of what you need to know:
-
Check the Lease Agreement: Start by reviewing the lease agreement between you (the seller) and the tenants. Understand the terms, termination clauses, and any specific provisions related to selling the property.
-
Serve Proper Notice: In Ontario, you can sell a property with tenants, but you must provide the tenants with proper notice to end their tenancy. The notice period typically requires a 60-day heads-up. Make sure you follow the rules outlined in the Residential Tenancies Act (RTA) and any local bylaws.
-
Communicate with the Tenants: Open and honest communication with your tenants is key. Let them know about your intention to sell, provide them with the appropriate notice period, and discuss the process with them. Maintain a positive relationship throughout the selling process.
-
Showings and Access: As the landlord, you have the right to show the property to potential buyers. However, you must give reasonable notice to the tenants. In Ontario, reasonable notice is generally considered to be 24 hours. Be considerate of their schedules and try to accommodate their needs as much as possible.
-
Selling with Tenants: Selling a property with tenants in place can be attractive to investors. Make sure potential buyers are aware of the existing tenancy, the lease terms, and any associated rights and obligations.
-
Offering the Property Vacant: If you prefer to sell the property without tenants, you can wait until the current tenancy agreement expires or mutually agree with the tenants to terminate the lease early. Follow the required notice period and proper procedures for terminating the tenancy.
-
Handling Security Deposits: If you hold a security deposit from the tenants, transfer it to the new owner upon the property sale. Handle the deposit appropriately, adhering to the rules outlined in the RTA.
-
Seek Legal Advice: It's wise to consult with a real estate lawyer or legal professional experienced in landlord-tenant matters. They can guide you through the process, review documents, and ensure compliance with the relevant laws.
Remember, this is just a general overview. For specific advice tailored to your situation, consult professionals and refer to the Residential Tenancies Act and local bylaws.
