# Selling a rental property



## Newby1983 (Apr 9, 2015)

Hello everyone. I have a rental property outside the GTA. Based on what I've seen rentals seem more difficult to sell when tenant occupied. I've skipped the annual lease agreement which expires in May opting for a month to month so I can give them 60 days notice should I decide to sell. 

The question I have is for the experienced investors who have had to sell a rental. What would you suggest to ensure I get the best $$. My tenants are good but do not keep it tidy. I'd like your thoughts on the following:

Vacant possession
Renovate - what would you spend money on?
Have the home staged? 

Suggestions appreciated. 

Thanks


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## Just a Guy (Mar 27, 2012)

Selling a rental as a rental doesn't work very well. Your goal is to maximize your sale price, which goes against the investor's goal of finding a place which will provide steady cash flow. 

Your best bet is to get rid of the tenants, fix up the kitchen and bathroom, reprint and sell it to someone looking for a home.


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## marina628 (Dec 14, 2010)

I just sold a rental with the tenants in it , why?Because even though on month to month lease in Ontario you cannot evict the tenant just because you want to sell it .I was very fortunate the market is so hot that we sold this house with the tenants in 6 days and then filed eviction because the new buyers want to move in there.My tenants were an extra treat as instead of tidying the place for showings they messed it up more .


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## Xoron (Jun 22, 2010)

Newby1983 said:


> opting for a month to month so I can give them 60 days notice should I decide to sell.


Yeah, you can't do that in Ontario. The only way to get a tenant to leave in Ontario is:
1. Ask / Beg / Bribe them to leave
2. Take them to the LTB and get a ruling against them (non payment of rent / damage to property). Then get the sheriff to evict. 
3. Move in yourself. (and if you're truly going to be selling, that would raise a red flag - Moving in then promptly selling it)


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## Rusty O'Toole (Feb 1, 2012)

I would leave the tenants in place. The buyer can evict them and get possession in 60 days if they wish to occupy the house. This is not usually a problem, as tenants who know a house is for sale make plans to move.

If it takes a long time to sell you will lose a lot of money. I had a house sit empty for sale for over a year, costing me $20000 in lost rent. If I had known it would take so long to sell I would have rented it. I didn't get any extra money for keeping it empty either.


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## Xoron (Jun 22, 2010)

Rusty O'Toole said:


> I would leave the tenants in place. The buyer can evict them and get possession in 60 days if they wish to occupy the house. This is not usually a problem, as tenants who know a house is for sale make plans to move.


But if the tenants don't play ball, then you could be months getting rid of them. During which time they could do untold damage to the property. Imagine the headache of trying to sue them and/or getting insurance to cover it.

I'd NEVER buy a home with tenants in it. If I had to buy an occupied property - you better believe I'd put the costs on the seller
1. Evict the tenants
2. Pay for short a term lease.
3. Cover any damage done after closing


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## Karlhungus (Oct 4, 2013)

Pay the tenants off. Write up an agreement that you both agree to terminate the lease and give the tenants like one months rent to find another place. You'll get a better selling price which will more then pay for paying off the tenants


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## Xoron (Jun 22, 2010)

Karlhungus said:


> Pay the tenants off. Write up an agreement that you both agree to terminate the lease and give the tenants like one months rent to find another place. You'll get a better selling price which will more then pay for paying off the tenants


This is the right answer.


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## Laylabaccarini (May 9, 2015)

*Property Manager*

A capital gain, or capital loss, is the difference between what it cost you to obtain, maintain and improve the property (the cost base), and what you receive when you dispose of it. Amounts that you have claimed as a tax deduction, or that you can claim, are excluded from the property's cost base.If you acquired the property before CGT came into effect on 20 September 1985, there won't be a capital gain or capital loss. However, you may make a capital gain or capital loss from some capital improvements made since 20 September 1985, even if you acquired the property before that date.



.......................
*Property Manager *


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