TENANT COOPERATION
The biggest challenge when selling a rental property is ensuring the cooperation of your tenants. While your goal is to maximize the selling price, the tenants goal is to make sure that your home doesn't sell at all. They know that the sooner you sell the home, the sooner they will have to move, assuming the new buyers intend to occupy the home. It is not uncommon to see properties listed where it is almost impossible to gain access to view the home or when you are able to get in, the home does not show well (to put it nicely).

Tenants are entitled to 24 hours written notice in advance of any showings. If the tenant insists on this right, it can make scheduling showings very difficult. We have seen buyers lose interest or buy another property because they had to wait a few days to view it.

To overcome these dilemmas, we have developed an incentive program that encourages tenants to cooperate, potentially without any additional cost to you. Give us a call for the details of this program.

NOTICE AND POSSESSION DATES
Under current landlord-tenant legislation, unless the tenant moves out early, the earliest you can give vacant possession to a new buyer is two clear months after you have a subject-free contract. You must receive written advice from the buyer that they intend to occupy the home as their principal residence. You then must give notice to the tenant using the prescribed form and follow the correct procedure. We will assist you with the proper documentation and following the correct procedures or you can get the forms from the Residential Tenancy Office website. If the tenant does not move out prior to the buyer's possession date, you will be in breach of the Contract of Purchase and Sale. You don't want to be sued for the cost of storing all the buyer's household goods and putting up their family of six at the Four Seasons for a month or two! Please note that the British Columbia Residential Tenancy Act is currently being re-written and we will post the relevant changes once the legislation has passed.

Unless they are committed under the terms of a lease, and even though you have to give them 2 clear months notice, the tenant only has to give you one months notice to vacate the home at any time. You should be prepared to forgo rental income for a few months while you are selling as it is almost impossible to re-rent the home if it is for sale.

INCOME TAX CONSIDERATIONS
Please check with your accountant or tax advisor regarding any income tax considerations upon the sale of an investment property. Normally the sale of real estate, unless it is your principal residence, will be subject to capital gains taxation. Keep copies of all your selling expenses as they will be deductible from the proceeds for tax purposes.

If you are a non-resident owner, your sale proceeds will also be subject to Nonresident Withholdings, to ensure payment of the required income taxes. You will be required to fill out a Form T2062 E or the "Request by a Nonresident of Canada for a Certificate of Compliance Related to the Disposition of Taxable Canadian Property". We can provide you copies of these forms or you can get them from the Canada Customs and Revenue Agency website.