Selling Your Tenanted Property? Here Are 4 Must Read Points To Keep In Mind
If you are a landlord and are thinking of selling your home while it has tenants occupying it, you must make sure you follow the rules and regulations of tenancy law to the letter, otherwise you may end up having a lot of legal and financial headaches.
Below are some important procedural matters that you should be aware of before you sell:
Making the tenant aware
When you are going to list your home, make sure you inform the tenant in advance. Letting your tenant find out from a third party that you have listed the home for sale is not good for tenant-landlord relations. While you may not be sure when the home will be sold, it is advisable to give the notice to vacate once you have a firm deal, as you cannot give the notice while the selling process is on-going.
Showing the property
As a landlord, you must give your tenant at least a 24-hour written notice to show the property. The tenant does not have to vacate the property during the showings. Also remember that as a landlord, you may not “stage” the unit without the consent of the tenant and you must respect the tenant’s right to quiet enjoyment.
Giving notice to vacate
You cannot give the tenant notice to leave just because you are selling the property. Once you have a firm deal, depending on the terms of the tenancy, the tenant has the following options:
With a fixed tenancy agreement or lease, the new buyers cannot move in until the lease expires, unless there is a mutual agreement made by both parties.
With a month-to-month tenancy, if the buyer wants to move in, then a 2-month notice must be served to end the tenancy.
If you are planning to demolish, repair, convert or renovate the property, a 4-month notice is required.
If the new owner does not want to move in and agrees to let the current tenants continue staying in the property, then the new owner can arrange a new agreement to be drafted, with or without amendments to the terms and conditions already stipulated.
Tenant’s right to compensation
If you as a landlord serve a 2 month or 4 month’s notice to end the tenancy, then you are required to give the equivalent of 1 month’s rent to the tenant. If, however, the tenant serves you the landlord to end the tenancy or state they are ending the tenancy, then you do not owe the tenant any form of compensation whatsoever.
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