ORT Guidelines on Selling Rental Properties
As an investor looking to sell your rental property, it's crucial to understand and follow the Office of Residential Tenancies (ORT) guidelines to ensure a smooth transition for both you and your tenants. Proper notice and adherence to regulations are vital to maintaining good tenant relations and avoiding legal issues.
Notice Requirements
When selling a rental property, you must give your tenants adequate notice. According to ORT guidelines, the following steps should be taken:
1- Notice of Sale: Inform your tenants in writing that the property is being put up for sale. A 1 calendar month's notice ahead of time is sufficient. Providing more notice will allow your renter to clean the property and stage it for photos.
2—Notice for Showings: If prospective buyers need to view the property, give your tenants at least 24 hours' written notice before each showing. The renters can refuse showings without 24-hour notice on Sundays and religious holidays. Viewings should be scheduled at reasonable times to minimize disruption to the tenants' daily lives.
3- Notice of Termination (Month-to-Month (MTM) Lease): If the property sells (all conditions removed) and the new owner requires it for personal use or renovations that necessitate vacancy, you must provide the tenants with a one-full calendar month termination notice. For example, if the notice is sent on the 1st or 2nd of June, the renters can stay until the end of July.
Rights of the Tenant
Tenants have specific rights that must be respected during the sale process:
1- Right to Privacy: Tenants have the right to privacy and quiet enjoyment of their home. Viewings should be scheduled at convenient times, and the number of showings should be reasonable.
2- Right to Stay: Tenants are not obligated to move out just because the property is for sale. Their lease agreement remains in effect, and the new owner must honour it unless they provide proper termination notice. It differs between a MTM and Fixed Leases.
MTM - Renters are to remain unless the buyer requires the premises for personal or immediate family use or planning on extensive renovations that deem the suite unlivable.
Fixed-Lease - The new owner is to honour the existing lease agreement until the end of the specified term. A notice of intention form must be delivered to the renter 2 months before the lease expires. The landlord or renter may choose to renew or discontinue at their own discretion.
Best Practices
To ensure a smooth sale process and maintain good relations with your tenants, consider the following best practices:
Communicate Clearly: Keep your tenants informed throughout the process. Clear communication helps prevent misunderstandings and fosters cooperation.
Respect Their Space: Schedule showings at convenient times and limit the frequency to what is necessary.
Provide Assistance: If the tenant needs to move out, offer assistance with finding a new rental property or provide references to ease their transition.
By adhering to ORT guidelines and respecting your tenants' rights, you can facilitate a smooth and successful sale of your rental property. Proper notice and clear communication are essential to maintaining good tenant relations and ensuring a hassle-free process for all parties involved. For more specific information, go to the ORT website.
.https://www.saskatchewan.ca/government/government-structure/boards-commissions-and-agencies/office-of-residential-tenancies
