As a REALTOR®, it’s important understand how to navigate tenanted properties in a growing population and the current high interest rate environment because more and more households are turning to the rental market.
Back by popular demand, Bita Di Lisi, licensed paralegal, joined TRREB’s latest Ready to Real Estate podcast episode with host TRREB Chief Market Analyst Jason Mercer to share what you need to know about buying and selling tenanted properties no matter which side of the transaction you are on.
Five Key Takeaways from the Episode
- Even though a rental agreement was signed with the seller, the buyer of the property is responsible for that agreement.
“The only two things that change when a buyer steps into the shoes of a landlord seller is number one, where the rent is sent to, and number two, who it’s payable to. Everything else carries forward. They can’t change the rent. They can’t take away an amenity. They can’t separate utilities. Nothing else changes,” says Bita. - If you’re a REALTOR® preparing for your listing and looking to take photos in a tenanted property, keep the renter’s privacy top of mind. Having a good relationship with the tenant is important to ensure a smooth process for all.
- There are also two different strategies REALTORS® can consider if they are listing a property with a tenant. The first one is listing the property as is with a tenant inside and having a discussion with the tenant that you’re looking to sell the property. The second strategy is ”cash for keys,” which means offering a tenant money to vacant the property to prepare the property for the listing.
- If a buyer is looking to start renovations in a tenanted property, they must use the N13 form to give notice, especially if the renovations are major and will impact the tenant and their living arrangements.
- Finally, working with a REALTOR®, understanding and following the Residential Tenancies Act, and consulting legal advice is essential to understanding who’s responsible for what.
To learn more about navigating tenanted properties listen to the full episode on Ready to Real Estate.
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