Looking to Sell but There Are Tenants in Your Unit? A 2026 Guide for Toronto Condo Sellers
If you’re a Toronto condo owner thinking about selling in the current 2026 real estate market, having tenants in your unit can feel like a major obstacle. Between tenant rights, showing restrictions, buyer hesitation, and legal requirements, selling a tenanted condo is very different from selling a vacant property.
The good news? It can absolutely be done — but this is where experienced real estate agents who have handled these situations multiple times become critical.
This guide will walk you through the realities of selling a condo with tenants in Toronto, the legal framework under Ontario law, and how to position your property successfully in today’s market.
The 2026 Toronto Condo Market: Why Strategy Matters More Than Ever
Toronto’s condo market has shifted significantly compared to the pandemic boom years. Prices softened through 2024–2025, inventory increased, and buyers became more selective and cautious. In 2025 alone, nearly 187,000 new listings came to market across the GTA, with properties taking longer to sell and negotiating power shifting toward buyers.
In this environment, anything that creates friction — including tenants — can impact buyer interest and final sale price.
That doesn’t mean you shouldn’t sell. It means you need the right strategy.
Can You Sell a Condo With Tenants in Toronto?
Yes. Under Ontario’s Residential Tenancies Act (RTA), you are legally allowed to sell your condo even if a tenant lives there. However, the lease does not automatically end when the property sells. The tenant and lease terms typically transfer to the new owner unless proper legal steps are taken.
This is one of the biggest misconceptions among sellers.
You cannot evict a tenant simply because you want to sell.
Key Ontario Tenant Laws Sellers Must Understand
If you’re selling a tenanted condo in Toronto, there are several critical legal points:
1. Tenants Have the Right to Stay
Tenants cannot be forced to leave just because you list the property. If they have a fixed-term lease, they can remain until the lease ends.
2. Buyers Often Inherit the Tenant
If the buyer is an investor, they may keep the tenant. If the buyer wants to live in the unit, specific legal procedures are required.
3. The N12 Notice (Purchaser Use)
If a buyer intends to move into the condo, the seller can serve an N12 Notice after a firm agreement of purchase and sale is signed. This requires:
Minimum 60 days notice
Termination date aligned with the rental period
Compensation equal to one month’s rent (in most cases)
The buyer must genuinely intend to live in the property for at least one year — otherwise it may be considered a bad-faith eviction.
4. Landlord and Tenant Board Delays
If a tenant does not leave voluntarily, the process may require a hearing through the Landlord and Tenant Board (LTB), which can take months.
This uncertainty is one reason buyers sometimes avoid tenanted properties.
The Biggest Challenges of Selling a Tenanted Condo
Selling with tenants introduces several practical and financial challenges:
Limited Showings
Ontario law requires at least 24-hour notice for showings between 8 AM and 8 PM.
Tenants may not keep the property in showing condition, which can impact first impressions and price.
Buyer Hesitation
Many buyers today prefer vacant possession because removing tenants can involve legal complexity, time delays, and risk. Some simply avoid tenanted properties altogether.
Presentation Issues
Professional staging, cleaning, and photography are harder when someone is living in the unit.
Negotiation Leverage
Buyers may use the presence of tenants to negotiate lower prices or extended conditions.
Why Experience Matters When Selling a Tenanted Condo
This is where working with experienced agents becomes essential.
Agents who frequently handle tenanted sales understand:
✔ How to communicate with tenants professionally
✔ How to structure offers to protect the seller
✔ When to sell with tenants vs. vacant
✔ How to position the property to investors vs. end users
✔ Legal timelines and risk management
✔ Negotiation strategies that preserve value
Inexperienced agents often treat tenanted sales like normal listings — which can cost sellers tens of thousands of dollars or result in failed transactions.
Strategic Options for Toronto Condo Sellers With Tenants
Every situation is different, but common approaches include:
Option 1: Sell to an Investor With Tenant in Place
Best when:
Tenant is paying market rent
Lease terms are attractive
Minimal disruption desired
Option 2: Negotiate a Tenant Move-Out (Cash for Keys)
Sometimes sellers negotiate financial incentives for tenants to leave voluntarily before listing. This can dramatically improve sale price and buyer pool.
Option 3: Sell With Vacant Possession to End Users
Best when targeting owner-occupiers, but requires careful legal planning and timing.
An experienced agent helps determine which strategy produces the highest net outcome — not just the fastest sale.
The Hidden Opportunity in Today’s Market
Interestingly, today’s Toronto condo market conditions can create opportunity for sellers with tenants — particularly if your unit appeals to investors.
With prices below peak levels and interest rates stabilizing, many investors are re-entering the market looking for rental properties. A well-positioned tenanted condo with strong rental income can actually become an asset rather than a drawback.
But positioning is everything.
Final Thoughts: You Don’t Need to Wait — You Need the Right Plan
If you’re thinking:
“I want to sell but my tenant complicates things”
“Should I wait until the lease ends?”
“Will buyers even consider my unit?”
The answer isn’t always to wait.
The answer is to create the right strategy based on your goals, tenant situation, and market conditions.
Selling a condo with tenants in Toronto is absolutely possible — and often successful — when handled by professionals who understand both real estate and landlord-tenant law.
Need Advice About Selling Your Tenanted Condo?
If you’re a Toronto condo owner considering selling and want to understand your options, timelines, and potential value, working with experienced professionals can make a significant difference.
The right guidance can turn a complicated situation into a smooth — and profitable — sale.
If you want deeper insight into the current market and how to approach timing, you can watch Alex Wilson’s full webinar here:
At RE/MAX Wealth Builders, our team has successfully helped many landlords sell tenant-occupied properties across Toronto. We understand the legal framework, negotiation strategies, and buyer positioning required to protect your interests and maximize your outcome.
If you’re thinking about selling — or just want to understand your options — we’re happy to have a confidential conversation.
Contact Alex J. Wilson, Broker Owner
🔹 #2 RE/MAX Realtor in Canada for Sold Properties 2024
🔹 #17 RE/MAX Realtor in the World (Out of 140,000 Agents) 2024
🔹 Member of RE/MAX Circle of Legends
RE/MAX Wealth Builders Real Estate
☎️ Office: (416) 652-5000
📱 Mobile: (416) 996-5181
🌐 Website: www.alexjwilson.com
For more insights watch Alex’s webinar