In a complex and competitive market like Toronto, the nuanced nature of selling an investment property goes well beyond tenant-related variables. Not only are you exposing your asset to sophisticated, highly-strategic investors like you, but depending on the property itself you may also reach potential buyers who are simply searching for a home.
If you’re looking to amplify profits from the sale of your investment property, the best path forward begins with an expert team who directly specializes in supporting investors – such as Ramsay Real Estate Group.
Selling Strategies Tailored to Your Investment
Effectively achieving the greatest possible ROI on your sale begins with analyzing the asset itself. Informed by our vast industry experience, we’re able to provide high-level recommendations depending on your property type, existing tenants, and current cash flow.
In the case of single or two-family investment homes such as a condo or family home, we advise starting by speaking with the Tenants to see if they would like to stay living in the home or if they’re planning on moving. If they’re planning on moving it’s recommended to wait until they’ve moved out because it’s easier to make value-adding upgrades and stage the property while it’s vacant. If tenants are currently on-site, it’s much more difficult to achieve the greatest possible return on your sale.
Once again, working with an investor-focused team can expedite this process. At Ramsay Real Estate Group, we incorporate unique incentives such as cash for keys and other motivators to assist tenants in moving out before your sale. If you’re unsure about whether or not you wish to proactively discuss moving out with your tenants prior to your sale, we can help you calculate the value difference between each option available to you.
For investors with a multi-unit property, selling with tenants in place can be an effective tactic for communicating profitability to potential buyers. With a few selective techniques to elevate your capitalization rate, we’re able to help you achieve a lucrative sale that leaves nothing on the table.
Looking for industry-informed insights about the benefits of professional staging? Click here to read about the high-ROI value of staging for sale.
Looking to sell your Toronto rental property? Explore these pages from our website for helpful information pertaining to your sale.
Selling With Tenants: Your Legal Obligations
As an established landlord, adhering to the various legal requirements surrounding tenant rights is already a prominent part of your investment. However, if you elect to sell a property that is currently tenanted, you will have a new set of responsibilities to be mindful of.
In the instance that your tenants wish to stay living in the property, it’s important to understand where both parties stand from a legal perspective. One critical detail to note – under the Ontario Landlord & Tenant Act, tenants who are within the first year of their lease may not be evicted due to a sale. For tenants renting on a month-to-month basis, evictions will require a minimum of 60 days’ notice and you can only evict a tenant if the property has been sold and the purchaser or one of their family members will be moving in.
While some investors may find these timelines frustrating, as your agents there are numerous strategies that we can incorporate to help expedite this process.
Communicating Effectively
One of the most important parts of selling an investment property is maintaining an open line of communication with your tenants. Legally speaking, there’s no formal deadline for informing your tenants about your intentions to sell, however, starting a transparent dialogue as early as possible can make it easier for everyone involved.
As avid investors and landlords ourselves, our team can help you assemble a communication plan for keeping tenants appropriately informed. Should you face challenges or resistance from tenants, we’ll be there to provide key advice for navigating the conversation and in many cases, we can handle communications with the Tenants.
Stress-Free Showings
As you may anticipate, scheduling in-person showings with active tenants does entail a fair amount of red tape. In Ontario, you must provide tenants with a minimum of 24 hours’ notice before entering their unit and may only host showings between the hours of 8 am and 8 pm, unless the tenant has provided notice that they will be moving out, in which case you can provide resonable notice for in-person showings. Further complicating this process, tenants may choose to be present at a showing if they wish, and are not obligated to clean the space or perform preparations before potential buyers arrive.
Once again, Ramsay Real Estate Group can streamline this process on your behalf. As your transaction concierge, we’re happy to take on the heavy lifting of showing coordination. Minimizing disruption to you, we can communicate directly with your tenants to ensure a seamless showing process.
Ready to uncover a selling plan that’s personally tailored to your investment? Click here to contact us by email or call 416.906.8366 to get in touch.
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