Selling, with tenants

Selling a tenanted property is a balance of opportunity and constraint.

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Our expertise

With more than a thousand rental units under our care, we are often involved in selling tenanted properties.

Our sister company – LandLord Realty Inc., Brokerage – was originally set up in response to complications arising from mismanagement of the process by unaffiliated industry professionals whose experience wasn't specific enough to execute on behalf of our clients. In 20 years of property management, we’ve seen the issues and opportunities first hand, allowing for a seamless partnership between our property management and real estate divisions.

Advantages of selling while tenanted

Tenant-occupied properties have cash flow to cover ongoing expenses, which lowers the pressure to sell and puts you in the driver’s seat when it comes to negotiations. It is akin to buying an existing well-run business with a healthy customer base. Concerns about a restricted ability to showcase the property are counteracted by strong financials. An investment-savvy buyer can look past scuffed walls or lackluster décor to see the investment within.

Managing the tenant

The flip side of an unmotivated seller is, unfortunately, an unmotivated occupant. It’s of course quite reasonable to assume some resistance from someone who will have to accommodate potential buyers invading their space, or worse, has been told they’ll have to find a new home.

While tenants have a great deal of power to disrupt the sale process, we have the know-how to compel difficult tenants to cooperate, and that’s where experience with tenancy laws in Ontario is invaluable. Tenants have rights, but also responsibilities.

In situations where we have a pre-existing relationship with the tenant, we are able to leverage the tenant’s familiarity with us. It’s likely we were involved in helping the tenant secure the space initially, and we were certainly there to ensure a trouble-free tenancy. The tenant's familiarity with our company ensures we have an easier time accessing the unit to show it, and that the tenant will be more forgiving should a problem arise.

The realtor’s challenge

Some of the obstacles that a realtor will need to address when selling a tenanted property include:

  • Staging is not possible. The home will be presented “as is”.
  • Pets may impede the showing process.
  • Tenants may not be accommodating to showing requests.
  • It may not be possible to take attractive images for the listing
  • The property may show signs of wear and tear from the tenancy.
  • Occupant has little motivation to cooperate with the sale process

Successful management of an existing tenancy is as crucial to the sale of your investment as a well-structured marketing plan, or a competitive list price.

Terminating a tenancy

A tenancy can’t be terminated just because the property is being put up for sale. Illegal tenancy terminations can result in hefty fines and may impact the sale of your investment.

Our team is experienced in the facilitation of termination related negotiations. If vacant possession is something you require before listing the home for sale, we can help to structure a termination of the tenancy and ensure all goes smoothly before hitting the market.

The better the tenant’s expectations are managed, the easier the process will be.

Crossing T’s

With the experience of managing thousands of properties over the years comes a fluency in tenancy-related documentation and requisite forms. Our guidance limits your exposure to liability and ensures your home is as prepared as possible for a sale. The mismanagement of these forms could result in costly repercussions. It’s critical that the administration of these processes is handled properly. Our team can lead the way.

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