Investing

When your landlord sells: tenant rights in Ontario

Tenants often assume a sold sign means they have to leave. In Ontario the lease travels with the property, and a buyer inherits both the tenant and the terms. The rules around showings and any end of tenancy are specific.

The lease survives the sale

The new owner steps into the existing agreement, including the rent amount and any remaining fixed term. After a fixed term ends the tenancy continues month to month under the same terms unless both sides agree otherwise.

Showings require notice

A landlord may enter to show the unit to prospective buyers, but written notice of at least 24 hours stating the time is required, and entry must fall within reasonable hours. Tenants are not required to leave, clean, or stage.

Buyer wants to move in

A purchaser who genuinely intends to occupy the unit can require the seller to give the tenant notice, with compensation set by law and a defined notice period tied to the tenancy. Bad-faith notices carry penalties, and the Landlord and Tenant Board hears those disputes.

  • Notice must use the correct form and period
  • Compensation is required, not optional
  • A tenant who believes the notice is in bad faith can file an application

For investors buying tenanted property

Financing a tenanted purchase is straightforward, and lenders will often use a portion of the rent to help you qualify. Get the lease, rent roll, and deposit records before waiving conditions, because a below-market rent affects both cash flow and value.

Frequently asked questions

Can a landlord raise rent because the property sold?
No. Rent increases follow the usual guideline and notice rules regardless of ownership changes.
Does rental income help me qualify for a mortgage?
Yes. Most lenders count 50 to 100 percent of documented rent, depending on the program and the property type.