GETTING TENANTS TO CO-OPERATE WHEN SELLING A PROPERTY

There is nothing more frustrating to a buyer than not being able to view a rental unit or property because the tenants either can't be reached to schedule an appointment or are un-cooperative. I field the inevitable question: "why put this property up for sale if no one is allowed to see it?" far too many times when my request to arrange a showing is rebuffed or we arrive and can't get in because of the tenants. Sellers/landlords and their REALTORS® inherently know that this reflects negatively on the property, the type of tenant that will be inherited and worse - the purchase price.

So why does this happen and what causes the problem? I've narrowed it down to three main reasons. The first being that the seller has really bad tenants yet the seller still hopes that the limited ability to see the property will not deter a buyer's interest or from his paying top dollar. The second is that the seller/tenant relationship is dysfunctional and the third is that the landlord is not knowledgeable about his rights. Tenant co-operation can be greatly improved just by a landlord being versed in his rights and knowing how to implement them.
First let me say though, it helps to be a landlord who shows, at least, some respect to his tenant throughout the tenancy. But even a bad landlord can induce tenant co-operation when they try.

It is important for the landlord to understand that while he may own the property this is the tenant's home; the tenant may love you as a landlord but once they hear about a pending sale they will go into protective mode because they have an atachment to it and will be stressed by the possibility that they may have to move because this situation is not within their control.

The following basic tips have worked well for my clients:

Prior to placing the property on the market, prepare a letter to the tenant(s) of each unit advising them of your intent to sell and when it will be listed; the REALTOR'S® name and contact information if using one; that in order to minimize any inconvenience to them, *you would like to come to a mutual agreement regarding showings; that your REALTOR® will be respectful to them and their unit; * and, that they will receive a telephone call from either yourself or the REALTOR'S® brokerage advising you of any booked showings. Advise them also that upon your acceptance of an offer, there can be a few further visits by any or all of the buyer, an inspector, an appraiser and that you will do your best to keep these at a minimum.

The letter should of course be dated and the word: "DELIVERED" stated right beside it. It should provide a choice of options that requires the tenant's signature beside each option chosen. These are: The preferred methods for delivery of showing times i.e. telephone call or letter. Note, by law, a landlord is required to provide 24 hours written notice - To waive the 24 hour notice and/or a written notice; a reduced number of notice hours for showing;* The days and showing times; Which of landlord or tenant will respond in a timely fashion to showing requests. 

Sincerity goes a long way so close off the letter by thanking them and state nicely that it is to be retuned to you by such and such a date.

Call them and ask to meet with them. Tell them about your plans to sell and discuss everything in the letter before producing it. Make them feel at ease by letting them know their co-operation will assist with selling the property faster thereby minimizing any disruption to their quiet enjoyment. If you feel you can't handle this by yourself, have your REALTOR® accompany you.

It is important to remember that tenants have a right to occupy the premises until the last day of the term lease agreement or, the last day of the monthly payment cycle if there is no term lease and as such a tenant does not have to agree to earlier termination. With this in mind, be up front and let them know that it is possible the buyer may want the property solely for personal use once their tenancy is up and, ask them if they would want to stay until at least then.

Produce the letter, mention that it's full disclosure by you and in pen, note the time beside "DELIVERED," go over it with them and leave two copies if they don't sign right away. Make sure you have one and on it note the time of delivery.

*I have always advised my sellers that although the rental unit can be shown between 8 a.m. and 8 p.m., to offer to limit visits to start no earlier than 10 a.m, and allow an hour for lunch/dinner break and an earlier stop time if kids are involved. A client of mine, because he had a very good relationship with his tenants actually improved on this by stating the allowable viewing times and method of delivery rather than discuss a mutual agreement. This also made all of the tenants' instructions uniform.

Once they have signed off be sure to honour the choices they made and should they not, your letter served as notice of your intention to sell. Be sure to have a key to the unit and that it works the lock. If you don't, get one because it is not a good idea to leave it to the tenant to let the buyers in. If they do not advise you of their choices, you will be required to provide 24 hours notice in writing stating the date and time of the scheduled showing. Always date written notices, note the time and deliver it to the unit. Slip it underneath or tape it to the door if the tenant is not at home.

As long as you have provided the required entry notices, you will have fulfilled your obligation under the Residential Tenancies Act and accordingly, any buyers/REALTORS® to whom you have given permission may enter the unit.

Two final things. Tenants on occassion may find that it is not convenient to accommodate a particular request to show the unit - maybe they had scheduled a dinner party in advance of the notice. So try to accommodate their first request. But don't let these get out of hand either and,

Instruct your REALTOR® that s/he and all visiting REALTORS® must be respectful to your tenants and their units.