Dec. 10, 2018

Selling Tenanted Properties: What You Need To Know as Landlord

As a landlord selling a tenanted property, there are things to consider to ensure that you are following the tenancy law. We’ve put together a few important points for you to remember when selling your property.

If you have a month to month tenancy:

The buyer and seller are required to give two months written notice to end the tenancy if the buyer intends to live in the property. A landlord must serve the two months notice so that it is received at least two months before the effective date of the notice and before the rent is due.  For example, if the rent is due on the 1’st of each month, serving notice by March 30 would allow the buyer to move in on June 1. https://www2.gov.bc.ca/gov/content/housing-tenancy/residential-tenancies/ending-a-tenancy/landlord-notice/two-month-notice

Please note that a full four months notice is required if the tenancy is being terminated for demolition, renovation, repair or conversion by the buyer. https://www2.gov.bc.ca/assets/gov/housing-and-tenancy/residential-tenancies/forms/rtb29.pdf 

If you have a fixed tenancy agreement:

If the tenancy is the form of a lease, the new buyers cannot move in until the lease expires or unless both parties mutually agree.  Both the seller and the tenant would need to agree and complete a “Mutual Agreement to End Tenancy” form.

Are you obligated to pay the tenant any compensation?

As a landlord, you are required to the equivalent of one month's rent if you either serve a two or four-month notice to end the tenancy.  After a tenant has received notice, they are still entitled to compensation even if they choose to leave at an earlier date.  Alternatively, the tenant may opt to live the last month of the tenancy rent free.  

The buyer can take over the tenancy:

The buyer can choose to take over the tenancy.  The rent for the month of possession is typically adjusted between the buyer and the seller and the security deposit is typically credited to the buyer at completion.

What if the buyer wants to move into the property?

If the buyer would like to move into the home, the proper notice will need to be given to the tenant.  The notice to vacate will need to coincide with possession dates.

What is the notice to tenants required for showings?

The landlord must provide 24 hr written notice to show the property.  The tenant does not need to vacate during showings.  However, if the tenant is providing false information about the property to a prospective buyer, Section 47 of the Residential Tenancy Act allows the landlord to issue a one-month eviction notice for cause for knowingly giving false information.  Similarly, an uncooperative tenant may be issued a one month notice to end the tenancy. https://www2.gov.bc.ca/gov/content/housing-tenancy/residential-tenancies/ending-a-tenancy/landlord-notice/one-month-notice

As Realtors specializing in the marketing and sale of tenanted properties, we can work with your tenants to ensure a smooth sale process.

We communicate with your tenant before the property is active on MLS.  It’s vital to establish positive communication with your tenant.  The more we work with them, the more helpful they will be.  If you are thinking about selling in the near future, don’t enter into a new lease with the tenant.  Wait for the lease to expire and move into a month to month tenancy.  Potential buyers may need a quick possession.  A long completion may have an impact on your sales price.  Ensure that you increase your rent accordingly each year and (of course) Be aware of your rights.

If you’re thinking about selling your rental property, please call us for a valuation.

 

July 13, 2018

Did You Know There Are New Rules For BC Real Estate Industry?

The Real Estate Council of BC has created new rules that affect how real estate advisors and their clients can work together throughout different types of real estate transactions. The rules came into effect June 15, 2018 and were created to enhance consumer protection and increase transparency in the industry. These rules include several new disclosure forms that all real estate advisors must present to consumers and their clients. The forms help you make an informed decision on your rights and the obligations and responsibilities of your advisor or if you choose to become an unrepresented party. In addition, if listing your property there is greater transparency on commissions. To understand how these new rules could apply to you in your next real estate transaction, talk with your real estate advisor and/or read more. Read More.

April 19, 2018

Does BC New Speculation Tax Apply to You?

BC Speculation Tax

Posted in Market Updates
Jan. 12, 2018

A BIG THANK YOU to our clients for a great 2017!

So grateful to all of our clients who entrusted us with the purchase or sale of their home in 2017!  Working with all of you was INCREDIBLE! We can't wait for 2018!

 

 

Jan. 11, 2018

Metro Vancouver Market Highlights

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

After very busy market activity in 2015 and 2016, home sales in Metro Vancouver returned to, what are regarded as, more historically normal levels in 2017. However, the number of listings came in several thousand units below typical activity.  Last month's sales were 7.5 percent above the 10-year sales average for the month.  What's the market in your neighbourhood doing now?  Call or message us to find out!

Posted in Market Updates