The prospect of selling a tenanted rental property under lease can be challenging but there are inherent benefits to both the seller and the buyer in this type of transaction.

Benefits to the Seller:

The ability to capitalize on prevailing market conditions which may be beneficial to the seller
Realize the equity from the property at an earlier date
No ‘back end’ vacancy costs prior to date of closing

Benefits to the Buyer:
Rental income is generated immediately.
No vacancy period between closing and lease commencement
No real estate leasing fees associated with finding a tenant.
The current inventory of chattels (appliances, window blinds, etc.) is purchased with the property.

Purchasing a tenanted rental property is the equivalent of buying a business that is already up and running. Information regarding the tenant, tenant payment history, rental income, and current lease are obtained prior to making an Offer. A seller or buyer should have a thorough knowledge of the lease and the Residential Tenancies Act,or obtain the services of a real estate sales professional.