What not to do when selling an investment or tenanted property

You’ve decided to sell your investment property and you’re unsure of whether you should tell the tenants as you are afraid that they might not want to stay, causing you to lose your rent.

Most real estate agents will let you as the owner decide whether to tell your tenant regarding the sale of the property and often, people will choose to not tell their tenants.

At Residencity we suggest:

  1. Have open communication with your current tenant(s)
    • Let them know that the property is for sale. Let them know that there will be people coming in to look at the property and that you will be tidying up your area and putting things away and that it would be great if they could do the same.
    • Provide 24 hour written notice if someone is coming. Open houses are a rite of passage and this goes hand in hand with letting them know that people will be coming.
  2. Let them know their rights. Perhaps the new owner may want to use the property, or do a major renovation meaning that the current tenant has to move out.
    • 1+2 factor. 1 month rent + 2 months notice. In BC, the landlord is required to give you 2 months written notice and compensate you with 1 month rent. Tenants can leave sooner within that 2 month time frame by giving the landlord 10 days notice in writing and compensation will be a prorated amount calculated on a daily basis.
  3. If they want to leave, let them. If anything, this might even be better. You get to clean the place and stage it to your liking. This also eliminates the possibility of having to deal with uncooperative tenants.