The Money Mustache Community
Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: ottawan on September 21, 2015, 07:51:58 PM
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We've decided we'd like to sell our rental property - and we are relative newbies to landlording. We did have one previous property, but that tenant was month-to-month so we didn't experience any issue selling, and giving them 60 days notice when we sold.
However, for our current property, the tenants have a signed lease until Aug 14, 2016. Am I correct in my interpretation of the Ontario landlord tenant act that I therefore can't sell with a closing date before Aug 15, 2016? So I could sell in the spring, give them 60 days notice mid-Jun, and close the sale Aug 15, 2016? Or am I able to sell before the end of their lease?
Thanks if any experienced landlords can confirm that I'm understanding this correctly.
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Thanks Cathy for your response.
I understand that we could sell the property however, and consistent with the info you also noted below, the new owner must continue to honour the lease, ie the tenant would still be under lease to live there until mid-Aug 2016. And as it is a single family home, most buyers will be looking to live there themselves, and not rent it out. In that case, the buyer would not be able to take possession until their current lease ends, in about 11 months. Therefore, unless I can find a buyer who plans to use it as a rental property, putting the property up for sale now doesn't make much sense. But, we could list it for sale next spring, to close in Aug once the current lease expires.
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If you want to do so, you can enter into an agreement with the tenant to shorten the lease in exchange for you paying them a sum of money (for example, covering moving costs plus some amount for the inconvenience). You can't force such an arrangement on them, but you can negotiate and mutually agree to one.