If you’re thinking about selling a property that currently has a Tenant, it’s important to understand the potential risks and limitations that come with that decision.
The biggest challenge is control.
When a Tenant is still living in the home, you don’t have full say over how the property is presented or how accessible it is for showings.
If they choose to leave things messy, remain in the home during viewings, or limit the showing schedule, those are all things you may need to accept — even if it hurts your chances of a strong sale.
Trying to force the issue through the Landlord and Tenant Board (LTB) can take several months. In many cases, you’re looking at a four to eight month wait just to get a hearing.
That’s a long time to be stuck in limbo.
Understanding Your Legal Position
Many Landlords are surprised to learn that there are only a handful of legally valid reasons to end a Tenancy in Ontario. Selling the property is not, on its own, one of them.
This guide from the LTB explains the rules in more detail.
Even if the Tenant agrees in writing to leave — using the proper forms like an N11 or N12 — there’s still a risk.
Sometimes a Tenant will change their mind or simply decide not to vacate.
If you’ve committed to giving vacant possession in the Agreement of Purchase and Sale, but the Tenant is still occupying the property on closing day… you’re in breach of contract.
The Buyer may take legal action, and you’re left trying to resolve the issue directly with the Tenant — often with limited legal leverage and very little time.
It will feel very much like you’re being held hostage by the Tenant, and they are holding all the cards.
This is a situation we’ve seen more and more in recent years. In some cases, Landlords have had to offer the Tenant financial incentives to leave — a practice known as “cash for keys.”
Unfortunately, even that’s not a guarantee. There have been cases where Landlords paid significant amounts of money — $30,000, $50,000, or more — only to have the Tenant stay anyway.
So what are your options?
You have two main approaches:
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Sell the property with the Tenant in place, but only if the Buyer explicitly agrees in writing to assume the Tenancy. This needs to be clearly stated in the sale Agreement.
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Wait until the property is vacant before putting it on the market. While this may mean covering carrying costs for a few months, it also gives you the ability to show the home properly, offer flexible access and closing dates, and present the property in its best light — without surprises on closing day.
Vacant properties often sell faster, with fewer complications, and can sometimes achieve a higher sale price because the process is smoother for Buyers.
And perhaps most importantly: selling without a Tenant in place removes a major layer of risk.
Final Thoughts
If you’re considering selling a tenanted property, it’s important to have a clear strategy — and the right legal advice. We also recommend working with a qualified paralegal to ensure that everything is done by the book.
If you don’t already have someone you trust, we’re happy to point you in the right direction.
If you know someone who owns a rental property and might be thinking of selling, feel free to share this article with them. It could save them a lot of time, money, and frustration.
