Selling a condo in Toronto is already a strategic game of pricing, marketing, and timing—but add tenants into the mix, and suddenly, you’re playing on “final boss mode.”

While a tenanted condo can sometimes be a selling perk (hello, guaranteed rental income!), most buyers prefer vacant possession—so if not handled correctly, it can quickly become a massive problem.

Whether you’re an investor looking to cash out or a homeowner who rented out their place temporarily and now you’re thinking of selling, here’s everything you need to know about selling a tenanted condo in Toronto—without stepping on legal landmines or turning your tenant into an adversary.

1. Know the Law—Or Risk a Lawsuit

First things first: Ontario’s Residential Tenancies Act (RTA) is EXTREMELY tenant-friendly. Way too tenant friendly if you ask me.

Once you decide to sell your property, unfortunately you can’t just slap a “For Sale” sign on your unit and expect your tenant to leave quietly.

Your Tenant’s Rights (a.k.a. What You CAN’T Do):

❌ Selling your property doesn’t automatically mean you can evict your tenant. To request an eviction, you must find a buyer who plans to personally move in for a minimum of one year—and even then, strict rules apply.

**Remember: If you’re selling your condo, it’s crucial to serve the correct forms to your tenant and LTB under the Residential Tenancies Act (RTA). One small mistake could leave you legally vulnerable and delay the process. This is where working with a professional who understands the ins and outs of the RTA can make all the difference. Don’t leave it to chance! 🚨

❌ You can’t force your tenant to leave before the lease is up. If they have a fixed-term lease, they’re legally entitled to stay until the end.
❌ You can’t surprise them with showings. Your tenant has the right to 24 hours’ written notice before any showings.

What You CAN Do:

✅ Sell with the tenant in place. Sometimes buyers will see an occupied unit as a bonus. However most buyers prefer vacant possession.
✅ Negotiate an early exit. Some tenants might be open to leaving early if the deal is right (a.k.a. cash for keys).
✅ Communicate with your tenant. If you’re not in a rush, speak to your tenant once the lease ends or if they’re on a month to month term. Tell them your plans on selling. The tenant may decide to move out early – it may be worth a conversation.

2. To Sell Vacant or Tenanted: That is the Question

Scenario 1: Selling with the Tenant in Place

This option works well if:
✔ Your tenant is clean, cooperative, and paying market rent.
✔ Your buyer is another investor looking for a turnkey rental.
✔ You don’t want to deal with the hassle (or cost) of vacancy.

✔You have an N11 Form signed and tenant has another home secured (not necessary, but a plus)

🔴 The Challenges:

• Limited Buyer Pool – Owner-occupiers likely won’t want a tenanted unit.
• Showing Issues – Some tenants make scheduling a nightmare.
• Presentation – Not all tenants keep a condo “show-ready.”

Your documentation needs to be flawless—if you close the sale but mishandle the tenant’s notice, you could end up facing legal action from the buyer.

Scenario 2: Selling Vacant (If Possible)

This approach attracts the biggest pool of buyers and this is best case scenario for you, but it requires planning. If your lease is ending soon or you can offer an incentive for early departure, this might be the best bet.

🔴 The Challenges:

• Legal Considerations – You cannot force a tenant out unless they voluntarily agree or their lease naturally ends.
• Buyout Costs – If offering a cash incentive, weigh the cost against potential sale price gains.
• Cash Flow Considerations – Once your tenant moves out, rental income stops while your condo sits on the market. If you’re opting for this route, ensure you have 60-120 days’ worth of mortgage payments set aside to avoid any financial strain.

3. Showing the Condo: Tenant Buy-In is Everything

Let’s be real—no one likes strangers strolling through their home. Your best chance at a smooth sale is keeping your tenant on your side.

How to Win Over Your Tenant:

💡 Clear Communication – Let them know your plans early to avoid resentment.
💡 Incentives Work Wonders – Gift cards, reduced rent, or a small cash incentive can encourage cooperation.
💡 Respect Their Time & Space – Stick to showing schedules that work for them.
💡 Make It Easy – Offer professional cleaning before showings to keep things tidy.

A happy tenant = better showings = better offers.

4. Pricing & Marketing: Appeal to Both Investors & End-Users

If you’re selling a tenanted condo with strong potential, targeting investors is a smart move. But don’t forget end users—some buyers might be willing to wait for the unit to become vacant if they really like it.

To attract investors:
✔ Highlight the Numbers – Rent, cash flow, cap rate—investors want to see the financials.
✔ Compare to Market Rent – If the tenant is paying below market, make that clear to show future upside.
✔ Showcase Stability & Flexibility– A long-term, reliable tenant that can either stay or go can be a big selling point.

To appeal to end users:
✔ Position the Property’s Long-Term Value – Future homeowners may see potential beyond the current lease.
✔ Highlight the Lifestyle & Features – Sell the livability factor, not just the numbers.
✔ Offer Flexibility on Closing – Some buyers may be open to negotiating a move-in timeline that is longer than usual so it gives you time to sort things out with your tenant.

In today’s market, a well-rounded approach ensures you’re reaching the widest possible audience—maximizing your chances of a successful sale!

5. Offer Negotiations: The Fine Print That Matters

Once offers start rolling in, be extra careful with the closing date and vacant possession clause. If a buyer wants to move in, the tenant has to be given proper notice after the sale closes—not before.

⏳ The Timeline for End of Tenancy (ONLY If Buyer is Moving In):

• Either get an N11 signed (a mutual agreement between you and the tenant) OR Serve an N12 notice (for personal use) after closing.
• The tenant has 60 days’ notice before they must leave.
• To be extra cautious, I’ve even advised clients to submit an L2 form with the Landlord and Tenant Board (LTB) right after serving the N12 notice. This form officially starts the eviction process for those who suspect their tenant may not leave voluntarily. The key reason for filing the L2 immediately is to avoid last-minute delays—waiting too long means dealing with the LTB’s notoriously slow processing times. The last thing you want is to find yourself unable to close with vacant possession because the tenant decides to stay put.

🔴 Warning: If the buyer changes their mind and doesn’t move in, your tenant can take legal action for wrongful eviction.

Final Thoughts: Selling with a tenant can get tricky

Selling a tenanted condo in Toronto is absolutely possible—but it requires the right approach. Whether you decide to sell with the tenant in place or wait for vacancy, understanding the legal side, pricing strategically, and keeping your tenant happy will go a long way in ensuring a smooth and profitable sale.

Thinking of selling but not sure where to start? Either book a call or email me at [email protected]. I’ll walk you through the best strategy customized to your situation to maximize your sale price while keeping everything 100% above board.

Click here to see my Standard Operating Procedure for all my listings! While every situation is unique, this is the core system I follow to ensure a smooth and successful sales process.