One of the greatest things about buying real estate is its value as a long-term investment. Very few investment vehicles offer the same rate of return for so little risk. For example, if you purchased an investment property in 1990, the median price was $79,000. Today, the average house in Ontario costs $713,000 – almost a tenfold increase!
Even if you bought a house just five years ago, its value has skyrocketed. Selling an investment property now is an excellent way to boost your cash flow, giving you funds for new investments, a new residential home, a vacation, or whatever you want.
Are you looking for creative ways to invest through real estate? Here are some ideas to consider for 2022 and beyond:
- How to Be a Millennial Landlord
- Your New Landlord Checklist
- The Beginner’s Guide to Real Estate Investing
There may be one small catch when it comes to selling your investment property. ..
What happens if you have tenants?
Landlords have gained a bit of a bad reputation over the last few years. The rising cost of real estate has forced many to try to increase rent payments, which makes some people believe they’re entirely motivated by greed. Despite the prevalent and often undeserved conception, it is possible to be a successful investor and a decent and compassionate person at the same time.
Start by realizing that there are moral and legal implications when selling a house, especially when you have tenants. Put yourself in their shoes, and imagine how they will feel when you announce that you are selling their unit. This news that they may have to move can be traumatic. If rental units in the city are hard to come by, it’s even more stressful.
You can help your tenant ease this transition by following a few common-sense principles.
- Remember that while the house is your property, it is their home. It’s where they go to feel safe, to unwind and create their memories with their friends and loved ones.
- The process of selling the home should have as little disruption as possible to your tenant’s daily life.
Although Ontario’s Residential Tenancies Act is strict, a few guidelines will help you stay on the right side of the law (and your conscience).
Notice, notice, notice
You must provide sufficient notice to your tenant at every step in the process.
Notice of Intent to Sell: Once you know for sure that you will sell the home, you must provide 60 days’ notice to your tenants if they are on a month-to-month contract. And neither you nor the new owner can evict a tenant who has a written lease agreement. If you want to sell, you may have to wait unless the new owner agrees to uphold the lease until it expires.
Notice of Significant Renovations: If you intend to do any major renovations to the home that require the tenant to vacate, you must give them 120 days’ notice. Even then, you’ll have to provide another notice of your intent to sell. Otherwise, they have the first right of refusal to move back into the unit.
Notice of Home Showings: As the landlord, you have the right to show the home to potential buyers, but you can’t disrupt your tenant’s life to do so. The tenant does not have to leave for the showing, and they don’t have to prepare the home except for maintaining basic cleanliness.
Don’t Deceive Your Tenants
You can’t evict a tenant under the guise of false information. Some landlords try to trick their tenants into leaving by saying they want to move in. Deceiving your tenant in this way isn’t just unethical. It’s illegal, and can result in fines of up to $50,000. As a landlord, you have the right to sell the home as long as you follow the law. There is no reason to be dishonest about it.
Respect their privacy
You can still show the home even if a tenant is away, provided that you have given them 24 hours written notice. However, you must still respect their privacy. You can not take pictures of the home without their consent or let anyone rifle through their belongings.
Our policy has always been and continues to be as such: We work closely and diligently with all tenants to make the process as seamless as possible for everyone involved.
By following these simple guidelines, the process of selling a home with tenants becomes much less stressful for both parties. Of course, it is always best to consult with a real estate professional with experience with investment properties to ensure no important detail gets overlooked.
Have you ever considered investing in the Peterborough market? If not, it’s a good time to look into it. Peterborough is one of the fastest-growing cities in Canada located just outside of the GTA, with many downsizers looking to rent.
- A Guide to the New Coach Home Rules in Peterborough
- We Can’t Wait to See These 5 New Peterborough Developments
- What to Expect From the Peterborough Real Estate Market in 2022
