Under Ontario law, selling the property does not terminate the tenancy. The new buyer inherits the existing lease, including the current rent amount. The tenant has the right to remain in the unit under the same terms. You cannot evict a tenant simply because you are selling. The only grounds for ending the tenancy in connection with a sale are if the purchaser (or an immediate family member) requires the unit for personal use and the proper N12 notice process is followed.

Under the RTA, you must provide the tenant with at least 24 hours written notice before entering the unit for showings. Entry is only permitted between 8:00 a.m. and 8:00 p.m. The tenant does not have to leave during the showing (they can remain in the unit while buyers walk through). You cannot schedule open houses without the tenant's consent. These rules significantly limit your flexibility compared to selling a vacant home.

If you serve an N12 notice (for purchaser's own use), you must compensate the tenant with one month's rent. This compensation must be paid by the termination date on the notice. If you negotiate a voluntary vacancy agreement (cash for keys), the amount is negotiable but typically ranges from 2 to 6 months' rent depending on the tenant's willingness and the local rental market. These are real costs that must be factored into your net proceeds calculation.

The N12 for purchaser's own use cannot be served until a binding agreement exists. The buyer must confirm in the agreement that they (or an immediate family member) intend to move into the unit. Include a condition in the agreement that allows sufficient time for the N12 process to complete before closing. I structure these agreements to protect both the seller and buyer from timing risks.

Serve the N12 form on the tenant with at least 60 days' notice. The termination date must fall on the last day of the rental period (for monthly tenancies, the last day of a month). The notice must include the name of the purchaser and their relationship to the intended occupant. Serve the notice personally, by mail or by sliding it under the tenant's door. Keep proof of service.

You must pay the tenant compensation equal to one month's rent by the termination date on the N12. This is mandatory under the RTA. The compensation can be paid directly or credited against the last month's rent deposit. Failure to pay the compensation on time can invalidate the notice.

If the tenant does not vacate by the termination date, you must apply to the LTB for an eviction order. You cannot change the locks, remove the tenant's belongings or cut off utilities. The LTB hearing process currently takes 4 to 8+ months due to backlogs. During this time, the tenant remains in the unit and continues paying rent. This delay can jeopardize your closing date with the buyer. This is why cash for keys (Option 2) is often the faster and more practical path even though it costs more upfront.

Be honest, respectful and direct. Explain that you are planning to sell and that a vacant property will sell for more. Acknowledge that they have the right to stay and that you are not pressuring them. Frame the offer as a mutual benefit: they receive a significant cash payment to assist with moving costs and a first/last deposit on a new rental and you get the vacancy you need to maximize the sale. Never threaten, harass or mislead. The tenant has rights and will exercise them if they feel mistreated.

There is no standard amount. It depends on the tenant's rent, the local rental vacancy rate, how long the tenant has lived there and how far below market their current rent is. A tenant paying $1,800/month who would face $2,800/month for a comparable unit has a strong incentive to stay and will require a larger payment. Typical offers range from $5,000 to $20,000+ in Richmond Hill and Markham. Start the conversation without a number and let the tenant tell you what would make the move workable. The cost almost always pencils out when compared to the price discount of selling tenanted.

Once you agree on terms, put the agreement in writing. Include the vacancy date, the compensation amount, the payment schedule (some landlords pay half upfront and half on vacancy to ensure the tenant follows through), a clause confirming the tenant is leaving voluntarily and a clause confirming the tenant will leave the unit in clean, broom-swept condition. Have both parties sign. Consider having the tenant get independent legal advice so the agreement is not challenged later.

You must provide the tenant with at least 24 hours' written notice before entering for a showing. The notice must specify the date, time window and purpose (showing to prospective purchasers). Verbal notice is not sufficient. Entry is only permitted between 8:00 a.m. and 8:00 p.m. This means same-day showing requests from buyer agents (which are common in a competitive market) cannot be accommodated without the tenant's voluntary cooperation.

A cooperative tenant who agrees to flexible showing times, keeps the unit tidy and leaves during showings makes the selling process dramatically smoother. This cooperation is not required by law, so it must be earned through respect, communication and often a small financial incentive. Some landlords offer a monthly "showing allowance" ($200 to $500/month) to compensate the tenant for the inconvenience. This investment pays for itself many times over through better showing access and a cleaner presentation.