Selling a House With Tenants in Alberta: Guide for Landlords

Selling a house with tenants presents unique challenges, but with the right approach, it can be managed smoothly. Whether you're dealing with a month-to-month lease or long-term renters, understanding the legal and practical aspects of selling a tenant-occupied property is essential when you become a landlord. This article will guide you through the key considerations so you can successfully sell your home while maintaining a positive tenant relationship.

For informational purposes only. Always consult with an attorney or real estate professional before proceeding with any real estate transaction.

What Rights Do Tenants Have When a House is Being Sold in Alberta?

• Landlords can’t evict tenants to sell.
• Tenants must receive 24 hours’ written notice before any showings or inspections.
• Tenants are not required to leave during showings or perform deep cleaning.
• New owners must honour existing lease agreements, whether fixed-term or month-to-month.
• Tenants with month-to-month leases must have three full months of notice to vacate after conditions are released from the sale.

Are Landlords Allowed to Sell a Home With Tenants?

Landlords can sell a home with tenants still living in it. In Alberta, the Residential Tenancies Act allows landlords to sell a property with tenants still occupying it. However, the existing lease agreements remain in effect during the sale. This means if tenants have a fixed-term or month-to-month lease, the new owner must honour the terms of the current tenancy.

Can Landlords Break the Lease to Sell a Tenant-Occupied Home in Alberta?

Owners can’t break the lease to sell a tenant-occupied home in Alberta without consent, whether it's a month-to-month or fixed-term lease. With a fixed-term lease, the lease remains valid, and the new owner must honour it until it expires, whenever that may be. For a month-to-month lease, you or the new owner can provide proper notice to end the tenancy if needed.

It is possible for the landlord and tenant to come to a mutual agreement to end the lease early. Often, this is a “cash for keys” agreement, in which the landlord pays the tenant to move out. This could include moving expenses, a month’s rent at a different location, or any other concession.

How Much Notice Does a Landlord Have to Give a Tenant to Move Out in Alberta?

For fixed-term leases, landlords are not required to provide notice of non-renewal; the lease simply expires at the end of the term. However, it's best practice for the landlord to communicate their decision not to renew within a reasonable timeframe. For month-to-month leases, a landlord must give three full months’ notice, and the notice period cannot begin until the conditions of sale have been satisfied and removed.

The 90-day notice applies to month-to-month leases in Alberta. Weekly terms require one week notice, and yearly terms require 90 days. Fixed term leases do not require notice as they end at the end of the fixed term. See Ending a Tenancy about notice requirements.

So, for example, let’s say you list your rental property on March 1st and accept an offer on March 10th. The buyer has a few contingencies, like financing and a home inspection. It takes you 40 days to close, with the final contingency released the week before, on April 12th.

April 12th is after the first of the month, so the rest of April doesn’t count for the notice period. Instead, the notice period “officially” starts on May 1st. The tenant has until August 1st to vacate.

As you might imagine, a buyer having to wait 144 days to move in rather than 40 can be a big sticking point in a sale. If you have a current tenant, you may have more success marketing to buyers who also plan to rent the property to tenants.

What Rights Do Tenants Have During Showings?

As the tenants will be living in the property during showings, landlords or realtors must give tenants at least 24 hours' written notice before entering for showings, as mandated by Alberta's Residential Tenancies Act. This notice must be in writing and specify the date and time of the showing. If proper notice isn't given, tenants have the right to refuse entry, and landlords could face penalties for non-compliance. Keep in mind that each entry must have its own notice; a landlord can’t just specify something like “every Saturday at 1 p.m.”

Showings should be scheduled during reasonable hours, typically between 8 a.m. and 8 p.m. Tenants aren't obligated to leave the property during showings, and can even claim specific days to decline showings, such as religious observances. However, tenants are obligated to keep the property reasonably clean, including during showings.

Proactive communication can go a long way toward smooth showings. Working with the tenant to accommodate the tenant’s schedule and offering small incentives if the tenant leaves during showing times can help make tenants more amiable about the process.

Does the Landlord Accompany Real Estate Agents For Showings?

In Canada, the landlord or the landlord’s agent must accompany real estate agents during showings to ensure the tenant’s belongings are protected. When working with a landlord, these people become agents of the property owner and are allowed to enter without supervision. However, landlords are still required to give the appropriate notice before any third parties arrive.

Do Tenants Have to Clean Before Showings?

Tenants are required to keep the property reasonably clean during showings, though they don't have to perform deep cleaning. While tenants aren't legally obligated to go beyond ordinary cleanliness, landlords may work with them to provide incentives if a higher standard of cleaning before showings is desired.

For informational purposes only. Always consult with an attorney or real estate professional before proceeding with any real estate transaction.

What to Keep in Mind When Selling a Home With Tenants

Selling a house with tenants in Alberta requires careful planning and adherence to provincial laws to ensure a smooth transaction. Clear communication, providing proper notice, and understanding tenant rights in Alberta are crucial steps in the process. By working within the framework of the Alberta Residential Tenancies Act, you can minimize potential conflicts and facilitate a successful sale.

Frequently Asked Questions

Can a Landlord Evict a Tenant to Sell the Property in Alberta?

A landlord cannot evict tenants solely to sell the property. They need specific legal grounds like personal use. Otherwise, tenants with fixed-term leases stay until the lease ends, and month-to-month tenants require proper notice.

What Happens When You Buy a House With Tenants in Alberta?

The new owner will inherit the terms of the existing lease agreement, and the tenants have the right to stay until the end of a fixed lease or until a proper notice period is given. They must honour these lease terms and follow the Residential Tenancies Act. Clear communication with tenants helps maintain a positive relationship and smooth changeover.

Can a Tenant Refuse Viewings in Alberta?

Tenants cannot outright refuse viewings, but they can request reasonable accommodations, such as avoiding religious days or unreasonable times. Landlords must provide at least 24 hours' notice and schedule showings at reasonable hours.

How Much Notice Does a Landlord Have to Give a Tenant to Move Out When Selling?

No notice is required to end a fixed-term lease on the end date; it simply expires. Landlords must give tenants three full months’ written notice to move out for a month-to-month lease in Alberta. Yearly leases require 90 days notice while week-to-week agreements require a full week notice.