Inherited Rental Property How To Sell Ontario: Dealing with an inherited house can be a stressful task in itself, but how do you sell a house if you have tenants already in place? Here are four steps for “Inherited Rental Property How to Sell Ontario“.
Step #1: Ask the Tenants
The first step to selling your house with tenants in Ontario is to notify the tenants that the property will be listed for sale, and ask the tenants if they are interested in purchasing the property. If the tenants have been in place for a few years, they might have fallen in love with the property or really enjoy the school district for their children. They also might really love the area and want to live there permanently. This would be a great opportunity for them to buy the house they know they love. If they are interested, have them qualify for a loan on your property and the purchase process will be nice and smooth. You may also want to offer an owner financing deal to the tenant if they cannot qualify with a traditional lender. This may also be ideal if they have a great payment history, and you can continue to look forward to monthly payments unless you need the lump sum of cash now.
Step #2: Review Your Lease
If your tenants do not want to buy the property, review the lease you have in place with the current tenants. Tenants have the right to stay in the rental unit, even after a sale in most cases. There are strict rules about How a Landlord Can End a Tenancy. Your tenants may or may not be in a position to locate new housing, especially during these uncertain times, so the earlier you are thinking about selling, the better to inform your tenants, especially if you are really serious about listing right away. If your property is in a hot market, the house may sell quicker than you think and the tenants may not make it out in time. Some landlords believe that tenancy ends at the end of the term but it is a myth. At the end of the term, the lease automatically becomes a month-to-month lease and you will have to follow the proper process outlined in The Residential Tenancies Act.
Step #3: List with Tenants in Place
If you are unable to wait months to arrange for tenants to vacate, the next step for selling your inherited rental property with tenants in Ontario would be to list the house with tenants in place. The tenants may be upset that the house is being sold and might cause problems when the house is being shown. They may also decline to have showings because of COVID-19. Be prepared that they may also cause damage to the property when they leave, especially if they leave on bad terms.
Step #4: Pay the Tenant
The fourth step for selling your house with tenants in Ontario would be to offer payment for them to vacate the property. This might help smooth over any uncomfortable house showings or help them move into their new home. Tenants usually want several months worth plus their moving costs covered. If the tenants have been living there for a while, they may also want you to consider that their new home will cost a lot more to rent and may seek additional pay. You could also pay them by offering a discounted rental rate while they look for their new home.
How You Can Avoid These 4 Steps!
If you need to sell an inherited rental property, the fastest, easiest, and most convenient way is to sell the property to a direct buyer. This will eliminate property showings, dealing with upset tenants, and the costs of putting it on the MLS or paying your tenants.