Owning a rental property sounds great on paper—steady income, building equity, and future appreciation. But let’s be honest, things don’t always run that smooth. Sometimes tenants stop paying, the property becomes too much to manage, or your life situation changes, and suddenly you’re ready to sell. Problem is, there are still tenants living there. So now what?
If you’ve been wondering how to sell a rental property with tenants in Ontario without making a mess of it, you’re not alone. Whether the lease is month-to-month or locked in long-term, there are ways to sell that don’t leave you stuck in legal red tape or dealing with awkward tenant situations. Let’s break down your best options so you can make the move that fits your goals.
Can You Even Sell a Rental Property With Tenants?
Yes, absolutely. You can sell your rental property whether it’s vacant or occupied. But the approach changes depending on your situation—and the tenants’ lease.
If the tenants have a fixed-term lease, they have the right to stay until that lease expires. If they’re month-to-month, you may have more flexibility, but you still have to follow Ontario’s Landlord and Tenant Board rules. It’s not just about sticking a “For Sale” sign in the yard and calling it a day. The type of buyer you’re aiming for will also impact how you sell.
So what are your options?
Option 1: Sell With the Tenants in Place
This is often the easiest route if you don’t want to deal with evictions or delays. If your tenants are paying rent on time and keeping the place in decent shape, this can actually make your property more attractive to real estate investors.
Here’s why this works:
- Investors like income-producing properties.
- You can sell without waiting for the lease to end.
- It avoids legal complications and unhappy tenants.
How to Make It Work:
- Be upfront with buyers – Make sure they know the lease terms and the tenant situation.
- Gather lease documentation – Have it ready to share with interested buyers.
- Include rent payment history – A strong rental record can be a selling point.
- Maintain communication with tenants – Let them know what’s happening. Honesty can go a long way in keeping things smooth.
If you’re selling to another landlord or an investor, this could be a win-win for everyone.
Option 2: Wait Until the Lease Ends
This route makes more sense if the lease is close to ending and you’re looking to attract traditional homebuyers instead of investors. Many families or first-time buyers want a house they can move into immediately—not one that comes with tenants they didn’t choose.
To make this happen legally in Ontario, you’ll need to follow the Residential Tenancies Act, which includes:
- Giving proper written notice (at least 60 days before the end of the term).
- Providing a valid reason for ending the tenancy if it’s not already expiring.
- Ensuring the buyer genuinely intends to move in if that’s the reason given.
Word to the wise: Don’t cut corners here. Improper notices can land you in hot water and delay your sale.
Option 3: Offer “Cash for Keys”
If you’re looking for a faster way to get the property vacant without waiting for the lease to end, “cash for keys” could be your golden ticket. It means offering your tenants money or other incentives in exchange for them leaving the property voluntarily.
Why would tenants agree?
- They get a financial boost to help with moving costs.
- They avoid formal eviction.
- They get time to find a new place without legal pressure.
This approach works well when:
- You have a cooperative tenant.
- The property needs repairs before listing.
- You want to sell to someone who needs it vacant.
Make sure to get everything in writing and have a formal agreement signed. It’s also smart to work with a real estate professional or paralegal familiar with Ontario landlord laws.
Option 4: Sell Your House for Cash As-Is
If you’re in a bind and just want to be done with the property—tenants and all—selling to a cash buyer could be the best solution. You skip the showings, the repairs, the stress, and the drawn-out process.
At Bloom Homes, we buy rental properties in Ontario exactly as they are, with or without tenants. Whether the house needs work or the tenants are on a long lease, we’ll work around it and give you a fair cash offer.
Here’s why this option might work best:
- Quick closings – Often in as little as 7–10 days.
- No need to evict tenants – We handle that after the sale, legally and professionally.
- No agent commissions – You keep more of the final price.
- No repairs needed – Sell your property exactly as it sits.
It’s a solid route for tired landlords who are ready to let go of the headache.
Option 5: Lease-to-Purchase or Seller Financing
If you’re not in a rush to sell and want to attract more buyer interest, you can consider offering seller financing or a lease-to-purchase option. These alternative selling methods can work well if:
- The property is tenant-occupied, and the buyer is willing to take over the lease.
- The buyer has less-than-perfect credit but wants to own.
- You’re okay with receiving monthly payments instead of one big lump sum.
Just like with tenants, you’ll want solid legal documents and protections in place. But if you’re open to creative solutions, this could bring in buyers other sellers aren’t targeting.
What If the Tenants Aren’t Cooperative?
This can be tricky, but it’s not impossible to handle.
Here are some practical tips:
- Communicate early and clearly – Let them know your intentions and their rights.
- Be respectful – Happy tenants make for better showing conditions and fewer problems.
- Use proper notice for showings – In Ontario, tenants must get at least 24 hours’ notice.
- Keep documentation – If things turn legal, you’ll want a record of all communication and notices.
And if they refuse to leave after the legal notice? You’ll need to go through the formal eviction process through the Landlord and Tenant Board. It’s not fun, but it can be done.
Mistakes to Avoid When Selling a Rental With Tenants
Trying to sell a tenant-occupied property without a plan can backfire. Here’s what to watch out for:
- Skipping legal steps – Ontario’s laws are strict. Cut corners, and you might end up in legal trouble.
- Not disclosing lease terms to buyers – Transparency avoids surprises down the line.
- Trying to stage the property without tenant approval – Always communicate and get permission.
- Overpricing the property – Buyers won’t pay full price for a home they can’t move into right away.
Whether you’re selling to an investor or a family, honesty and preparation make a big difference.
What’s the Best Option for You?
It all depends on your timeline, your financial goals, and the condition of the property. Ask yourself:
- Do I need to sell fast?
- Am I okay keeping tenants in the home?
- Does the home need repairs before I sell?
- Would I rather get monthly payments or a lump sum?
If you’re ready to explore all your options—whether it’s a cash sale, lease-to-purchase, or seller financing—Bloom Homes is here to help Ontario homeowners like you figure out the path that makes the most sense.
You don’t have to deal with the stress of managing tenants during the sale process. We’ll walk you through your options, give you honest advice, and help you move on without all the back-and-forth.