Selling a Rental Property with Tenants: What You Need to Know

When buying or selling a rental property with tenants, navigating tenancy laws can feel complicated, but it doesn’t have to be. We've created a simple chart that you can return to reference anytime.

Your question: Can I end the tenancy?

Whether or not you can end the tenancy depends on the type of rental agreement in place. There are two scenarios to consider: fixed-term tenancy and month-to-month tenancy.

1. Fixed-Term Tenancy: The Answer is NO

If the tenants are on a fixed-term lease, you cannot end their tenancy just because you're selling or buying the property. The tenants have the right to stay until their lease expires, and the buyer will need to inherit the tenants as part of the purchase. Here are a few things to note:

• A 2-Month Notice of Intention Form: This can only be served two months before the end of the fixed-term tenancy if the buyer intends to occupy the property themselves.

2. Month-to-Month Tenancy: The Answer is YES

If the tenancy is month-to-month, you have the option to end the tenancy under certain conditions.

• Before Possession: If the buyer intends to move into the property themselves, they can serve a Notice to Vacate for Purchaser Occupy. In this case, the tenant is entitled to at least one month’s notice.

• After Possession: If you, as the current owner, intend to move into the property yourself after selling, you can serve a Notice to Vacate for Owner Occupy. However, in this scenario, the tenant must receive at least two months' notice.

Why This Information is Important

Knowing these regulations ensures that you follow the correct legal process when selling your rental property, avoiding potential disputes with your tenants or the new owner. It also allows you to maintain a good relationship with your tenants while staying compliant with local laws.

When in doubt, make sure to consult a realtor or legal professional in your area.

By understanding these rules, you can confidently sell or buy a rental property while respecting the tenants' rights.