Selling Tenant Occupied Property
Are you planning to sell your tenanted investment property?
Selling a tenanted occupied property can be very difficult. Especially if the tenant is uncooperative. Watch this video as I go over the 7 tips you should know about before listing your tenant occupied property for sale.
- Check when if the tenancy is a fixed tenancy or month to month tenancy. In a fixed tenancy neither party can break the tenancy, and the new buyer needs to take over the tenant. On a month to month tenancy if the property does get sold, the new buyer can serve notice in good faith to occupy the unit. 2 months notice must be given to the tenant.
- Have a discussion with your tenant that you are thinking about selling your property, and discuss a viewing schedule that is fair to the tenant. Remember you need to give 24 hour notice for each viewing. Open houses should be agreed upon with your tenant as well.
- Check the terms of your rental lease. If it is a fixed term tenancy and it is not up, consider what the market will be like selling a tenant occupied property. Most buyers in the luxury space are looking to purchase a property to move into. They are not looking to become landlords. The perfect properties to sell as tenanted properties are houses that are selling at land value and 1 bedroom condos that are listed at market value.
- The tenant maybe be present at open houses and showings.
- Your are not allowed to stage the property unless the tenant allows you to.
- If a tenant unreasonably refuses access to show the unit or provides misleading or inaccurate information to prospective buyers, the landlord could, serve 1 months notice to end the tenancy.
- Compensation to end any tenancy agreement shall be one months rent.
Question of the day, would you consider selling your property with a tenant or wait till the tenant has moved out? Please leave it in the comments below. I will try my best to personally answer all comments myself.