Selling a tenanted property in British Columbia comes with unique legal obligations and strategic considerations. Whether you’re a homeowner looking to cash out or an investor planning to liquidate, understanding the Residential Tenancy Act (RTA) and how the new Landlord Use Web Portal affects your process is essential. Selling with tenants can absolutely be done, but only if you follow the law carefully and approach the situation with professionalism and empathy.
In this article, we’ll walk through your legal responsibilities, the proper notice periods for both existing and new owners, and how to handle tenant relations so your sale proceeds smoothly.
Understanding Your Legal Obligations as a Seller
In British Columbia, tenants have strong protections under the RTA. Selling a home does not automatically end a tenancy. If your tenant has a fixed-term lease, you cannot simply ask them to leave before the end of the lease term unless both parties agree. For month-to-month tenancies, there are clear steps and timelines to follow if you—or a buyer—want vacant possession.
Effective July 18, 2024, all landlords in BC must use the Residential Tenancy Branch’s new Landlord Use Web Portal to initiate notices related to ending a tenancy for the landlord’s personal use, including for new owners as well. This includes uploading the tenancy agreement and issuing proper notice, which starts the formal legal process.
When Can You Give Notice for Possession?
There are two main notice scenarios depending on whether the current owner or the new buyer requires the home for personal use:
1. If the Current Owner Requires Vacant Possession
You may serve a 4-month notice to end the tenancy if you or a close family member intends to occupy the home. This notice must be done through the Landlord Use Web Portal and include all relevant documents. The tenant has 15 days to dispute the notice at the Residential Tenancy Branch.
2. If the New Buyer Requires Vacant Possession
A new buyer can serve a 3-month notice after taking ownership—again, through the official portal—if they or a close family member plans to occupy the property. However, this must be a condition in the accepted offer; otherwise, the tenant remains protected and the sale must proceed with the tenancy in place.
Importantly, buyers must be made aware of this timeline so their possession expectations are realistic. Vacant possession can only be guaranteed if proper legal notice is served and the required timelines are met.
Do Tenants Get the Last Month Free When a Landlord Ends the Tenancy?
Yes — in most cases, tenants are entitled to one month’s rent as compensation when a landlord ends a tenancy for personal use or when a buyer intends to occupy the property. This is legally mandated under the BC Residential Tenancy Act and applies to both:
- 4-month notices when the current landlord (or a close family member) intends to move into the unit.
- 3-month notices when a new purchaser plans to move in, provided the tenancy agreement was properly uploaded through the BC Residential Tenancy Compliance and Enforcement Unit (RTB portal) as of July 18, 2024.
The tenant has the right to choose how they receive this compensation, however typically tenants choose to apply the compensation toward the final month of rent, making the last month effectively rent-free.
It’s crucial that landlords document this properly, especially during a sale. The new portal requires tenancy agreements to be uploaded so that notices are valid and enforceable. Failing to compensate tenants as outlined may void the notice altogether, so always consult the latest rules from the Residential Tenancy Branch or work with a knowledgeable realtor who understands tenancy laws in BC.
Selling a Property with Tenants: Pros, Cons & Best Practices
While some buyers—especially investors—may see tenants as a bonus, others prefer vacant possession. Your strategy will depend on your ideal buyer pool:
Pros of Selling with Tenants:
- Immediate rental income for investor buyers
- Well-maintained homes with long-term tenants can add value
- Avoids difficult conversations around ending tenancies
Challenges:
- Limiting access for showings (as tenants have the right to quiet enjoyment)
- Possible lower offers from buyers seeking vacant possession
- Legal timelines may extend closing dates
To maximize value and cooperation:
- Communicate early and clearly with your tenants
- Offer incentives (like moving costs or cash for keys) for voluntary early move-out
- Provide 24 hours’ written notice for showings and limit them to reasonable hours
- Consider listing the home only after speaking to a real estate professional familiar with BC tenancy law
Why Work with a Realtor Who Knows the Law
Selling a tenanted property in BC requires a strategic approach rooted in legal knowledge and respectful tenant communication. By following the Residential Tenancy Act, using the Landlord Use Web Portal properly, and planning your sale timeline in advance, you can achieve a successful sale without risking legal issues or tenant disputes.
If you’re considering selling your Vancouver or Greater Vancouver rental property and want to ensure you’re following the most up-to-date laws, reach out to a licensed real estate professional who’s experienced in navigating tenancy-related sales.