Selling a rental property isn’t like selling the house you live in. There are tenants with legal rights, a lease that doesn’t disappear when the property changes hands, and rules about when you can show the place and whether a buyer can move in. Get it wrong and a sale can stall at the Landlord and Tenant Board.
This guide is for Cambridge landlords, whether you own a single house with a basement unit, a duplex in Galt, or a small building in Preston or Hespeler. It covers what happens to your tenants, how showings work, which notices apply, and the option of selling with tenants in place.
Your tenants come with the house
In Ontario, a tenancy doesn’t end because the property is sold. The buyer steps into your shoes as landlord on closing day, on the same terms: same rent, same lease, same repair obligations.
- Last month’s rent deposits transfer to the buyer, usually as an adjustment on closing. Interest on the deposit is owed to tenants each year, so make sure it’s up to date.
- Fixed-term leases carry over. A tenant with months left on a lease keeps them.
- Month-to-month tenants stay month-to-month. The sale alone isn’t a reason for them to leave.
Before you sell, gather copies of every lease, the current rent for each unit, deposit amounts and any outstanding issues. A buyer will ask for all of it.
Showing a tenanted property
You can show a rental unit to a potential buyer, but you have to give the tenant written notice at least 24 hours before you enter. The notice must state the reason, the date and a time of entry between 8 a.m. and 8 p.m. You can authorize an agent in writing to enter for you.
A wide window like “sometime between 9 and 6” can fall short of what’s required. Be specific, keep showings reasonable, and treat your tenants well. Their co-operation affects how the place looks and how smoothly the sale goes.
If the buyer wants the unit empty
Some buyers want to live in the property. In that case, Ontario allows the seller to give the tenant an N12 notice for the purchaser’s own use, but only if specific conditions are met:
- The residential complex has three units or fewer.
- You’ve signed an agreement of purchase and sale.
- The purchaser, an immediate family member, or their caregiver genuinely intends to live there.
- You’re an individual landlord, not a corporation.
The termination date must be at least 60 days after the notice is given and fall at the end of a rental period. You must pay the tenant one month’s rent in compensation, or offer another unit they accept, on or before the termination date.
Ontario changed some N12 rules on September 21, 2026. A landlord who gives at least 120 days’ notice for their own use no longer has to pay that compensation, but that exemption doesn’t apply to a notice given because a purchaser is moving in. If the person doesn’t move in as required, the former tenant can bring a bad-faith claim. An N12 is also only a notice. If the tenant doesn’t leave, you need an order from the Landlord and Tenant Board.
An N13 isn’t a sale tool
The N13 notice is for ending a tenancy to demolish a unit, convert it to non-residential use, or do repairs so extensive the unit must be empty. It requires at least 120 days’ notice, the necessary permits, and compensation. For repairs, the tenant may have the right to move back in afterward. Using an N13 just to deliver an empty house to a buyer is a misuse that can lead to a tenant claim. If major work is the real plan, get legal advice first.
Selling with tenants in place
For many landlords, the simplest route is to sell to a buyer who’s happy to keep the tenants. Investors often prefer it, because the property is already producing income. You avoid notices, compensation and the risk of a hearing.
If a tenant would like to move on, you can sometimes agree on a voluntary move-out, often with a payment, using the Board’s agreement-to-end form. It has to be genuinely voluntary. A tenant is free to say no.
Cambridge rental properties
Cambridge was formed in 1973 when Galt, Preston, Hespeler and the settlement of Blair joined together, and each core still has its own older housing stock along the Grand and Speed rivers. Some older homes in these areas have been converted to duplexes or had basement units added over the years, and the records for that work can be hard to track down. If you aren’t sure a unit was legally created, raise it with your lawyer before listing, because a buyer’s lawyer and lender will ask.
If your building has four or more units, remember that the purchaser’s-use N12 isn’t available at all. That alone pushes many small-building owners toward selling with tenants in place.
How Sell House Cash buys rental properties
We buy tenanted properties in Cambridge as-is, with the tenants staying in place. You don’t need to end any tenancies, fix up units or arrange repeated showings.
- Send us the basics: units, rents, lease terms and any issues.
- We arrange a walkthrough with proper notice to your tenants.
- You get a written cash offer, with no financing condition.
- You choose the closing date. When title is clear, it can be in as little as a couple of weeks.
There’s no commission, and deposits and rent are adjusted on closing the usual way.
Next steps
If you’re ready to step back from being a landlord, get a cash offer on your rental. You can also read more on our Cambridge page.
Frequently asked questions
Can I sell my rental property in Cambridge with tenants still living there?
Yes. The tenancy simply continues with the new owner on the same terms. Selling with tenants in place is often the simplest option, especially to an investor.
Who keeps the last month’s rent deposit when I sell?
It transfers to the buyer, usually as an adjustment on closing, because the buyer becomes responsible for applying it to the tenant’s final month. Make sure annual interest on the deposit is current.
My buyer wants to move in. Do I still have to pay the tenant compensation?
Yes. For a purchaser’s-own-use N12, you must pay one month’s rent or offer another acceptable unit. The 2026 change that removed compensation with 120 days’ notice applies only to a landlord’s own use, not to a purchaser’s.
My tenant is behind on rent. Can I still sell?
Yes. Arrears and any Landlord and Tenant Board matters should be disclosed to the buyer. Tell us about it upfront and we’ll factor it into the offer.