Buying or selling tenant occupied property 

By Arcuri-Precious Real Estate | Kevin Arcuri and Layla Precious 

Buying or selling a property with a tenant in place comes with a few additional things to consider. There are rules around tenancy agreements, showings, notice periods, and possession dates, so it is important for buyers and sellers to understand the process before making a deal.

If you are planning to list your tenant-occupied property for sale, we recommend communicating your plans with your tenant as early as you reasonably can. Giving them advance notice and allowing them to understand what to expect can help them feel respected and considered throughout the process.

If your property has a tenant, the sale does not automatically end the tenancy. Unless the buyer or an immediate family member of the buyer intends to occupy the property the tenant remains in place and the buyer takes over as the new landlord under the existing tenancy agreement.

Showings also need to be handled carefully. Tenants must receive proper legal notice before someone enters their home, and we believe that good communication goes a long way. Whenever possible, we like to work with the tenant to establish showing times that are reasonable and predictable and at times that also work for them and their schedule. 

Selling a home can be stressful for a tenant, so treating them respectfully and keeping them informed can help make the process much smoother for everyone.

Understanding the Existing Tenancy

If you are purchasing a tenant-occupied property, it is important to understand the existing tenancy. Buyers should review the tenancy agreement, current rent, security deposit, and whether the tenancy is month-to-month or for a fixed term.

Timing Is Important

One of the biggest considerations when purchasing a tenant-occupied property is timing. If you want vacant possession, the required notice period needs to be considered before setting your completion and possession dates.

If you plan to move into the property yourself, there are specific rules and timelines that must be followed. A buyer cannot simply ask a tenant to leave. The proper notice must be given, and the timing needs to be carefully considered.

For a month-to-month tenancy, the required notice for a buyer to occupy the home is three clear months.

Notice can only be given once all conditions of the purchase have been removed. The month in which the notice is given does not count as one of the three full months, so this needs to be taken into consideration when planning the purchase and possession dates.

Fixed-Term Tenancies

If the property is subject to a fixed-term tenancy, the tenancy generally cannot simply be ended early because the property has been sold. If the tenant agrees to leave before the end of the fixed term, the parties can enter into a Mutual Agreement to End Tenancy in writing.

Because tenant-occupied properties involve additional rules, timelines, and considerations, it is important for both buyers and sellers to understand the tenancy early in the transaction and plan accordingly.

Communication Matters

Whether you are buying or selling, clear communication is especially important when a tenant is involved. A tenant's home is their personal space, and having buyers, agents, and other people coming through can understandably feel uncomfortable.

With good planning, respectful communication, and an understanding of the rules, buying or selling a tenant-occupied property can be a smooth process.

This information is intended as general information and is not legal advice. Tenancy rules can change, so always confirm current requirements with the Residential Tenancy Branch or a qualified professional before taking action.

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