Purchasing an investment property is a wonderful way to build equity and have property that profits and appreciates. But when the time comes to list your investment, what happens with the tenants? In British Columbia, there are a lot of rules surrounding what you can and can't do in terms of dealing with tenants in your place.
Ending tenancy in a home you have listed.
There's a lot of grey area surrounding what is and what isn't allowed when ending a tenancy agreement. If you have your property listed, the new owner may wish to purchase your property and keep the existing tenants. If you have an existing lease, this would then be transferred to the new owner, who would then take on all the responsibilities of a landlord.
If the new owners are requesting to move in, 60 days notice must be given by the current owner of the property. This means that if you're the seller, setting a 60 day closing would be necessary to end the tenancy agreement within a legal time frame.
As a landlord, you are required to pay the equivalent of one month's rent to the tenant when serving a 60 day notice.
Notice for Showings
Legally, a 24 hour period is required in order to access the tenant's home. In a hot market, this can definitely be a challenge, but most realtors understand the requirement and can schedule around this. A tenant isn't required to vacate and may stick around for any showings if they wish. As a rule, we always like to block off time with the tenant as much ahead of time as we can (for example, if we know a property will require a lot of showings on the first weekend it's listed, we'll let the tenant know a week in advance that we need to block off a hour each day) and that can really cut down on the interruption of the tenants peace and quiet!
A tenant isn't required to know what your plans are for buying or selling, but maintaining a level of honesty and openness is important to ensuring everyone's happiness! Letting them know that your property is going on the market and that you plan on following all rules is definitely a plus to keeping everything simple.
Going the extra mile
We like to leave little gifts for tenants as a token of our appreciation of their flexibility, and it's a nice gesutre to consider. If you have a family in your rental unit and you'd like to have an open house, a gift card for a meal out or a movie ticket goes a long way.
Leave the showings to us
We gladly make sure we are within the guidelines to show your property and manage tenants. Leave all the scheduling to us, and we will make sure your listing and sale go smoothly!
For more information, we strongly recommending visiting the BC Tenancy Board, where you can find contacts, resources and other information regarding being an awesome and responsible landlord. http://www2.gov.bc.ca/gov/content/housing-tenancy/residential-tenancies