When it comes to selling a house with tenants in Ontario, you must follow the Landlord and Tenant Board guidelines to avoid getting yourself into any legal issues. Many landlords reach a point where they want to cash out on their investment property—but having tenants in place can make the selling process feel complicated. The good news? With the right strategy, you can sell a tenanted property smoothly while respecting Ontario’s tenant laws and still attracting serious buyers.
In this blog, I’ll walk you through step-by-step how to sell a house with tenants in Ontario, including your legal responsibilities, how to communicate with tenants, and tips to make the process as stress-free as possible while maximizing the sale price of your investment.
Step 1: Hire a Real Estate Agent
When it comes to selling a tenanted property in Ontario, you want to make sure you hire a real estate agent who has successfully sold rental properties before. You also want to make sure they understand the Landlord and Tenant Board guidelines in Ontario so you can avoid any mistakes or legal issues that could come your way.
Step 2: Review Your Lease
Determine if your tenant is on a fixed-term tenancy or if their tenancy is now on a month-to-month term. If your tenant is on a fixed-term tenancy, it is important to know that you cannot evict the tenant until that fixed term is up. If the tenant is on a month-to-month tenancy, then you can issue an eviction notice to the tenant. However, it is important to understand that you cannot evict the tenant until you have a firm Agreement of Purchase and Sale. The tenant has the right to stay in the property during the sale of the property.
Step 3: Understand Who You Can Sell the Property To
A lot of landlords think they can sell their tenanted property to anyone they wish and get vacant possession. You must follow the Landlord and Tenant Board guidelines when selling a tenanted property in Ontario to make sure you do it successfully and to make sure you can actually give your buyer vacant possession. If your buyer is an investor, you cannot evict your tenant and give vacant possession. If your buyer is looking to use the property for their own personal use, their child’s personal use, or their parents’ personal use, then you can issue an N12 notice of eviction with a firm Agreement of Purchase and Sale to your tenant and provide that buyer with vacant possession.
Step 4: Give Notice to Your Tenant
Before you put the property up for sale, you want to give notice to your tenant(s) that you are selling the property. Do not just put up a For Sale sign and get started. This will start things off on the wrong foot and upset your tenant. Although you are allowed to put your property up for sale at any time, I always recommend you give the tenants a few week’s notice. This will allow the tenant to clean up the house and prepare themselves in the event they would like to begin searching for a new place. You also want your tenants to cooperate with you when it comes to selling your tenanted property, as it makes the process a lot easier! So giving them notice before putting the property up for sale starts things off on a more positive note.
Step 5: Set Up a Meeting With Your Tenants
The truth is, it is always a lot easier when the landlord and tenant have an agreement and work together to make the sale smooth and stress-free on both parties. Set up a meeting with your tenant(s) and go over the process of the sale. You want to discuss when the property will be going on the market, what could happen to their tenancy, the showing schedule, photography, and media. The tenant does have the right to deny you of any interior photos, which is why you want to meet with them and discuss everything ahead of time so you can agree on the best outcome possible for you.
Step 6: Schedule Your Photography and Media With the Tenants
Next, you want to give your tenant notice to take pictures and get all of the media you need to promote the sale of the property. This will allow the tenant a few days to prepare the interior and exterior of the home to get the best quality photos possible so you can showcase the property at its best.
Step 7: Put the Property Up for Sale
Now that you have completed all of those steps, it is time to put your property up for sale. When you put the property up for sale, it is best to notify the tenant that the home is now on the market and they can expect to receive notices for showings. Some important things to note are the following:
- You must give 24 hours’ notice to your tenant for each viewing.
- You can only show the property between the hours of 8 a.m. to 8 p.m.
- The tenant does not have the right to deny entry for any showings provided the proper notice has been given.
- The tenant has the right to stay in the property during each viewing if they wish to do so.
I also recommend you have your real estate agent set the tenant(s) up on an automatic showing notice so they see all of the showings as they get scheduled.
Step 8: The Agreement of Purchase and Sale
The next step is understanding how to handle offers. When it comes to selling a tenanted property, you want to make sure the correct clauses are in the Agreement of Purchase and Sale so you can avoid any litigation issues. If the buyer is purchasing the property for their own personal use, this must be reflected in the agreement as you will need to issue an eviction notice to the tenant for the buyer’s personal use. If the buyer is purchasing the property and assuming the tenant, you will also want to have this included in the offer so it is clear the tenant will be remaining in the property at closing and you do not have to worry about evicting the tenant.
Step 9: Issuing Notice to the Tenant
After the property is sold firm, you will want to issue notice to the tenant so they know what is going to happen to their tenancy. If the buyer is purchasing the property for their own personal use, you will need to serve the tenant with an N12 notice of eviction. There are a lot of important steps to serve the N12 notice to the tenant correctly, so I highly recommend hiring a licensed paralegal to make sure this is all done correctly! If the buyer is assuming the tenancy, you will want to let the tenant know this as well so they do not have to stress or worry about their tenancy.
Step 10: Close the Sale of the Property
After the Agreement of Purchase and Sale has been accepted, you have taken the necessary steps to notify your tenant, and you have followed the Landlord and Tenant Board guidelines of Ontario correctly, you want to make sure you have a successful closing. If you are providing vacant possession, you want to be sure the N12 notice has been filed correctly to the tenant and to the Landlord and Tenant Board so you can accomplish vacant possession for your buyers at closing. If the tenancy is being assumed by the buyer, you will want to transfer all of the tenant(s) information, lease agreements, and any last month’s rent deposits over to the buyer on completion of the transaction.
Selling a tenanted property in Ontario comes with unique challenges, from navigating tenant rights to ensuring the proper legal notices are served. But with the right guidance, it’s absolutely possible to sell your home smoothly while maximizing your return.
As an experienced Ontario real estate agent, I specialize in helping landlords successfully navigate the process of selling rental properties in Ontario. Whether you plan to sell with tenants in place or provide vacant possession, I’ll guide you through every step to ensure a stress-free and profitable experience.
📩 Email me at danielhalemgmt@gmail.com
📞 Call or text me at 905-407-2103
👉 If you’re thinking about selling your rental property, let’s connect today—I’d be happy to help you make the process as smooth and stress-free as possible.
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