So you have decided to sell your investment property. There are a few items you need to be aware of to keep in mind during this process.
While selling your home you have to work with your tenant(s). They are the ones living in the home and can make or break the whole process.
Your tenant(s) have direct control over how your home shows when buyers come through the house. Is the house tidy, is it clean, has the lawn been cut or snow cleared? These are all very important items to consider when working with your tenant(s). I highly recommend you have a conversation with your tenant(s) discussing your plans and maybe even offer an incentive as they help you with this process.
Imagine you have someone who wants to see your home tomorrow. How much easier would it be to call your tenant(s) to arrange an appointment compared to typing up a notice of entry and hand delivering it 24 hours in advance for each viewing. Keep in mind your Realtors have to follow the same rules.
Items to consider when working with your tenant(s) are:
- Pictures -Many tenants have concerns about posting pictures of their personal belongings/possessions while advertising the property.
- Admittance -the Residential Tenancy Act only permits entry into a rental unit between 8 am and 8 pm for non-emergency.
- Pets -do your tenants have a cat or dog. Can they be looked after, caged or removed during showings?
Inevitably the question is going to come up regarding the tenant(s) remaining in the home or leaving. This topic is best-discussed upfront so as to not “rock the boat” when an offer is being negotiated.
What do you do if the buyer wants vacant possession?
- If you have a lease term in place, there is no legal notice you can serve to remove your tenant’s, you are left with negotiating with them to move out.
- If you don’t have a lease term, the N12 Form allows a buyer to serve 60 days’ notice to a tenant(s) if the buyer wants to live in the property (keep in mind if the tenant(s) do not move out it will take more than 60 days to evict them).
- Despite popular belief, there is no notice for “I am selling my house you have to move out”.
Were you aware that the standard Agreement of Purchase and Sale used by Realtors, guarantees vacant possession. You may be in breach of your sale if you do not allow time for your tenant(s) to be evicted.
Please keep in mind these items when you are thinking of selling your home as they can avoid many problems and assist with a smooth sale.