SELLING A TENANT-OCCUPIED PROPERTY
If you own a tenant-occupied property and have decided to sell it, how can you, as the Seller, make the process easier for everyone involved?
- Understand the restrictions of the tenancy. If the Tenants have a fixed term tenancy, you cannot end it before the expiry date. If they are month-to-month, you’ll have to give them two months’ notice to end the tenancy once the property is sold. You’ll also have to pay the Tenant one month’s rent but usually, the Tenants just don’t pay rent during the second month of the notice period. There are other rules surrounding this, so check the Residential Tenancy Act before you sign any Offers. You can review the legislation at rto.gov.bc or call them at 1-800-665-8779 to find out what rules apply to your specific situation.
- Be honest with your tenants. You’ll need their cooperation for viewings so you may as well be upfront about your plans. If your agent can get agreement from the tenant about viewing times, that will make it easier. If they can’t agree, then you’ll have to give them a Notice of Entry each time the agent wants to show the property.
- Offer an incentive to the Tenant. Whether that’s a gift card to restaurants, shops or movies or providing a cleaning service at no charge, or just a nice bottle of wine, a small gesture may go a long way to assisting the sales process. If you’re able to, a slight break on the rent would be appreciated as well. Happy tenants are more likely to be cooperative and helpful so keep this in mind.
- Be respectful of their time. The property is still the Tenant’s home, so be open about showing times and schedules. Residential Tenancy legislation has rules about this as well, so be sure you and your agent are familiar with these. Your tenant is more likely to work with you and your agent if they feel like their concerns are heard.
- Help the tenant out. If the buyer of the home plans to move in and the tenant has to move out, give them a letter of reference to help them with finding a new place. If you have connections, or know of other rental properties, pass this on to the tenant so they can find a new home as quickly and painlessly as possible.
At RE/MAX of Nanaimo, we can help you sell your tenant-occupied property. With an in-house Property Management division who can provide answers and information regarding the end of tenancy issues, we have all the tools needed to achieve your goals.
Call RE/MAX of Nanaimo at (250) 751-1223. We have well-qualified agents ready and available to help.