Selling a Condo with a Tenant: What You Need to Know

Selling a condo in Ontario can be straightforward unless there’s a tenant involved. If you’re a condo owner or investor looking to list a tenanted unit, it’s crucial to understand the rules and nuances that come with it. Missteps can lead to legal complications, delays or even the loss of a sale. Let’s break down what every seller needs to know about selling a condo with a tenant in Ontario.

Here’s what you need to know about selling your condo with a tenant in Ontario.

Understand Tenant Rights

The most important thing to remember? Tenants have rights, regardless of your plans to sell. You cannot simply ask a tenant to leave because you’ve decided to put the condo on the market. In Ontario, the rules differ based on the type of lease agreement in place:

Fixed-Term Lease: If your tenant has a fixed-term lease (e.g., 12 months), they are entitled to remain in the unit until the end of that term even if you sell the property in the meantime. The lease agreement is transferred to the new owner unless the buyer intends to move in and the timing aligns.
Month-to-Month Lease: If the lease has moved to a month-to-month arrangement, you can issue a 60 day notice but only after the property has sold firm (i.e., no conditions) and only if the new buyer intends to occupy the unit as their primary residence. If they plan to keep the property as an investment the tenant has the right to stay. That’s a key detail: you cannot evict a tenant just because you want to sell.

Keep in mind that even with proper notice, the timing must coincide with the rental cycle. For example, if notice is given on June 15 then it would not take effect until the end of August.

Showings and Access

Under the Residential Tenancies Act, tenants must be given 24 hours’ written notice before any showings. This applies even when the property is listed for sale. In addition, showings must occur between 8 a.m. and 8 p.m. and the tenant does not need to be home during the showing but they have the right to be if they want to.

With condos, there’s an extra layer: building rules. Many buildings require advance elevator bookings, have limits on how many showings can occur per day or restrict access during specific hours. These rules can affect how quickly and efficiently you can get buyers through the door so make sure you plan accordingly.

Get the Status Certificate Early

In a condo sale, the status certificate is critical. It outlines the building’s financial health, bylaws, reserve fund and any upcoming special assessments. It also provides clarity on whether the unit is legally tenanted and if there are any compliance issues.

Savvy buyers (or their agents) will ask for the status certificate upfront. Ordering it early (usually takes 7–10 days and costs around $100–150) ensures the deal doesn’t get delayed later in the process as most buyers will add a condition of purchase based on the review of this document.

A Rented Condo Isn’t Always a Bad Thing

Not all buyers are looking to move in. If your purchaser is an investor, a well-maintained condo with a market rent tenant in place can be a huge asset. It offers immediate cash flow, avoids vacancy risk and saves time finding a new tenant.

To make this work in your favour:

Ensure the rent is in line with market value.
Have a solid lease agreement available for review.
Maintain positive communication with the tenant. Showings and inspections go a lot smoother when the tenant is cooperative.

A tenant who is respectful, tidy and pays rent on time can actually enhance your condo’s appeal to the right buyer.

Searching for more investor-focussed resources? Check out these related blogs next!

Strategy Is Everything

Ultimately, selling a condo with a tenant is less about legal hurdles and more about utilizing the proper strategy. From timing your listing around lease expirations to targeting the right type of buyer, whether it’s a homeowner or an investor, your game plan needs to be aligned with your goals.

Working with a real estate team experienced in tenanted properties can make all the difference. They’ll help you navigate Ontario’s tenant laws, liaise with the tenant to ensure showings run smoothly and position your condo to sell for top dollar, all without unnecessary drama.

Thinking of selling your tenanted condo in Ottawa or the surrounding area? Let’s talk strategy. With the right approach, it’s not just possible, it can be profitable!