Selling a tenanted property can be a tricky proposition these days. When
I get a phone call from a client wanting me to sell their tenanted
property I have a quick list of questions that I ask to see how we want
to go about it. In BC you cannot give a tenant notice to vacate until a
firm offer is in place. Then you need to give him or her 2 clear months
to vacate plus 1 months rent as compensation. The first question I ask
is it a fixed term tenancy and if so when does it end? If it's ending
soon... great let's wait until just before the tenancy ends and we'll
list it. If it doesn't end for a while or it's a month to month we have
to look at plan B. I suggest we use a form called a "Mutual Agreement to
End Tenancy". This is where you sit down with your tenant and explain
you are going to be selling the unit. Have a conversation something to
the effect as...."If we can agree on a date to vacate that is good for
both of us I will give you the 1 month rent you are entitled to under
the BC Tenancy Act and I will give you an extra bonus month of rent for
being flexible and signing this agreement." It's really a win win
situation. The tenant is happy to get the extra money and now you have
an empty apartment that's easy to show and that gives the potential
buyer a definitive closing and possession date. This makes for a much
easier, quicker sale and usually for more money than trying to sell with
a tenant still in the unit. Especially if the tenant is not that
co-operative about letting it be shown. In my opinion that extra 1 month
rent you pay out is well worth it.
This entry was posted on June 5th, 2012 by Owen Bigland | Posted in Video Blog