SELLING A TENANTED PROPERTY

When you decide to sell your tenanted property a landlord cannot simply evict their tenants just because you are selling the property. There is a process and proper notice must be given to show the property and to end tenancies. It is best to maintain open communication and cooperation with the tenants, with some advanced planning and clear guidelines, the sale can go smoothly for all parties involved.

When showing the tenanted property the landlords cannot just enter whenever they want. Under the Residential Tenancy Act, written notice must be given to the tenants 24 hours before entering to show the unit. The landlord or agent must be present during these showings and tenants can refuse entry if the notice is less than 24 hours or if the showings are at unreasonable times.

When ending a residential tenancy to sell, a common misconception among landlords is that they can evict a tenant just to sell the property, in BC this is not the case. Tenancy continues through the sale unless the tenancy ends by either mutual agreement between tenant and landlord or the landlord can give three full months’ notice to end tenancy if the buyer intends to occupy the unit. This is for only month-to-month tenancies. For fixed-term tenancies, the landlord will have to wait until the end to the lease term before ending tenancy. When ending tenancy the landlord must provide compensation equal to one month’s rent to the tenant.

At closing of the sale, it is important to address any adjustments such as rent, security deposits, and compensation owed in the purchase and sale contract. Make sure it is clearly stated, adjusted, and transferred from the seller to the buyer at closing

While selling a tenanted property can be complicated, taking the right steps and following rules will lead to a smooth sale.