• Megan Jayne

"Buying a Rental Property with Tenants"

some useful information here https://www.realtor.ca/blog/buying-a-rental-property-with-tenants/16051/1362 on buying a rental property that is currently tenanted.


summary:


- Scenario 1: You wish to keep the tenant(s)This is the simplest scenario and has the least impact on timing and conditions of the sale. No matter if the tenant has a fixed-term or periodic tenancy (month-to-month), once the sale closes they will fall under your responsibility as the new lessor (a.k.a. landlord).Lastly, while it’s not mandatory to sign a new lease, “The rules in the Residential Tenancies Act (RTA) will always apply.


- Scenario 2: You wish to occupy the home or rent to a family memberThere are two ways this works, but in both scenarios it’s important to clearly state your intent to occupy the home or assign it to an immediate family member (parent, spouse or child)—this does not apply to extended family or close friends—as part of your purchase agreement.If you need the home vacant at the time of purchase, then the sale can only close on the last day of the tenancy, and the current owner is responsible for providing notice.

The tenant has a lease that has not come to term: you must assume responsibility for the tenant and serve notice to end the tenancy no less than the minimum period required by law before the end date of their fixed-term lease.

The tenant’s lease is month-to-month: The same minimum notice requirements apply in this case, though notice can be given immediately once the terms of sale have been satisfied. If you require the unit empty, the sale can only close after the day on which the tenancy ends.


Doing your due diligence and approaching tenants with empathy will go a long way to ensure a positive outcome for all.

When buying a tenanted property, you should consult a professional and have a good understanding of the tenancy act.


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