In this kind of market, we are seeing many long time investors sell their income properties to cash in on their investment.
Ontario Landlords...make note! You will need to make sure that you follow the rules set out by the Residential Tenancies Act, 2006.
How do you sell your home when there is a tenant residing in the home?
Lets use the example of a one year lease. At the end of the one year lease term, the lease will default to a month to month term. At this point, the tenant can give you the required notice to vacate the property, however, you can not give notice to the tenant to vacate unless: You or an immediate family member is moving in.
With that said, after the term of the lease is up and the tenancy is now month to month, you may put the home on the market to sell it. Once it is sold, if the new owners wish to move into the home themselves, then you would need to deliver an N12 notice to the tenant with at leasat 60 days notice to vacate along with compensation equal to one months rent.
If you must sell within the tenants one year lease, then the new owners must accept the tenant and honour the existing lease.
I recoommend that you do not try and sell the home until the tenant is on a month to month term or the home is vacant.
What if the tenant doesn't leave, even if you have provided the proper legal notice? Because you are not able to provide vacant possession to the new owners and potentially breach the contract, you will be open to litigation. Not fun.
Landlords....get to know the ACT!
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