Selling a tenant-occupied property is all about balancing legalities with tenant relations. As Ontario’s market is slowly turning into a buyer’s market, tenant-occupied properties might stay up on the market for longer. If your intentions are clear, the very first thing to do is inform your tenant. Give them ample amount of months to move out, so it’s easier to coordinate viewings and open houses.
Here are my strategies as a realtor in Brampton for selling tenant-occupied properties:
1. Clear Communication with Tenants
Inform them of your decision to sell and discuss how the process will impact them. Address their concerns and reassure them about their rights under the lease. You can offer incentives like a rent discount during the sale period or assistance with moving expenses to encourage their cooperation. You can also help them find a new lease through your friends and family connections.
2. Preparing the Property for Sale
While your tenant prepares to move out, get your property ready. Conduct a thorough inspection and address any necessary repairs or upgrades. Apply a fresh layer of neutral paint and clean up the curb. Negotiate with tenants for property access and consider offering compensation for keeping the property in show-ready condition.
3. Pricing Strategy
Since tenant-occupied properties are mostly sought after by investors, your price has to be within reason. Consider the current market conditions, any fix or upgrades needed, and the fact that it’s tenant-occupied. Sometimes, properties with tenants might be priced slightly lower than vacant ones, as it could be both an opportunity and obstacle for new owners. Investors are also okay with longer closing times to let your tenant move out.
In the listing copy, you may mention that it is tenant-occupied, so you’ll have a fixed income stream at possession. It will attract the right audience.
4. Cash For Keys
If your tenant has been adamant about moving out, your last resort is paying them cash for keys. You might have heard this happen lately in Brampton and Toronto. This route is recommended only if you want to sell your property urgently and at a higher price. You can expect to spend anywhere between a couple months’ rent to up to $60,000.
5. Coordinating Showings
When scheduling, respect their privacy and only book viewings at convenient times. Make sure to provide 24 hours of advance notice and follow any rules mentioned in the lease agreement. Some landlords offer tenants a temporary place to stay or a small financial incentive during showings to minimize inconvenience and be able to stage the property.
6. Early Termination Clause
In future, always add the early termination in your tenant-landlord agreements. According to this clause, your tenant has to leave the premises if notice has been given well in advance. You must be able to provide 60 days of notice.
7. Consider Tenants as Potential Buyers
Ask your tenants if they are interested in buying the property. Sometimes, the easiest and most straightforward sale might be to the current tenants. They are already familiar with the property and may have an interest in owning it. You may offer them a small discount as you’d be saving on professional photography and videography, staging, and professional cleaners.
Let me help you sell your tenant-occupied property. I have extensive experience dealing with them and my legal background comes in handy during documentation and paperwork. For more information, please reach out to me at +1 (905)867-4828.
Is there a loophole for Ontario landlords to evict tenants?
Yes, there’s only one way you can force your tenants out. If you, your wife, children, or parents want to move into the property, it is allowed.
How long does it take to evict a tenant out of your property?
If you’re undertaking the process, it could take 85 to 138 days. However, if you get the Sheriff’s office involved, it could take 168 days or longer. Keep eviction as one of the last resorts as your goal should be to end things with the tenant professionally and calmly.