In our final installation in the series “How To Sell An Investment Property”, we will be tackling selling considerations for landlords and other FAQs that have not been addressed in the first two blogs.
Other Selling Considerations for Landlords
• If you’re thinking of selling an investment house or multi-unit dwelling soon, don’t sign new leases. You’ll get a higher price for your house if you are targeting both investors and end-users who want to live in one of the apartments themselves. Having a vacant apartment is an attractive feature for many Buyers.
• If you’re NOT thinking of selling soon, increase your rents every year. The amount of rent your Tenant pays will directly impact the sale price of your house. Because the lease transfers with the property, a Tenant who is paying below market rent will mean the new owner will take in less income than they would with a comparable property, and that will make your house less valuable (read: lower price). Always charge market rent to a new Tenant, and always increase rents annually by the amount allowed by law.
FAQ for Landlords Selling an Investment Property
I just signed a 12-month lease a few months ago. Can I sell the property?
Yes! Note that the Landlord & Tenant Act requires that the new Buyer assume the Tenant and the lease – at the end of the lease, the new Buyer may give 60-days notice to vacate if they want to occupy the property themselves.
Can I take photographs of the property for marketing purposes?
Yes, you have a right to take photographs. It’s good practice to ask the Tenant to remove any personal belongings they don’t want to be photographed in advance of the photographer’s arrival.
I want to do some renovations before selling my investment property. Can I evict the Tenant?
Likely not. Rules about renovating are complicated and the Tenant usually has the right to move back into the property after renovations. You should contact the Landlord Tenant Board for guidance.
Can I pretend I am moving into the unit myself in order to evict the Tenant and then put it up for sale?
This is a serious violation under the Landlord & Tenant Act. Bad faith evictions come with penalties of up to $25,000.
My Tenant doesn’t want showings before 11 AM or after 6 PM. What should I do?
The Tenant’s obligations require cooperation for showings between 8 AM and 8 PM. You can choose to work with your Tenant if there’s a valid reason for their request (eg – they work until 5 AM and sleep until noon) – but you are under no obligations to be flexible.
How do I evict my Tenant so I can sell my property?
Under Ontario laws, you can not evict a Tenant or ask them to move out. The new Buyer inherits the Tenant and the lease. If the Tenant is month-to-month (vs in a fixed-term lease), the new Buyer can provide 60 days written notice if they are going to occupy the home themselves. Often, in these cases, the Seller provides the required notice on behalf of the new Buyer.
If you have any further questions, please do not hesitate to reach out to us! We are happy to answer any and all of your questions.
Thanks for reading today’s BLOG!!!
Brian Kondo
Sales Representative / Team Leader
The Brian Kondo Real Estate Team
Re/Max Hallmark First Group Realty Ltd.
905-683-7800 office
905-426-7484 direct
brian@briankondo.com
www.BrianKondo.com
www.BrianKondoTeam.com
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