How Much Less Is a Tenanted Condo Worth in Toronto? What Actually Moves the Price

By Jatin Dua · Broker of Record, RE/MAX Quantum Realty · Updated 27 September 2026 · 10 min read — why tenants change the buyer pool, how investors price a unit off its rent, the section 49 rules a buyer relies on to move in, showing rights under section 27, rent control and the 2018 exemption, and the three ways sellers keep the discount small.

Why a tenant changes the price

A condo sells for what the most motivated buyer will pay, and a tenancy removes some of those buyers. A first-time buyer who wants to move in next month cannot buy a unit with a tenant on a lease that runs until next summer. An investor, on the other hand, may prefer a unit that is already rented to a tenant who pays on time. So the question is not whether tenanted condos are worth less in general. It is whether your particular tenancy shrinks the pool of buyers for your particular unit, and by how much.

Three things decide that: the rent the tenant pays compared with today’s market rent, how long the lease has to run, and whether the tenant will cooperate with showings.

How an investor prices a tenanted unit

Investors work backward from the rent. They take the annual rent, subtract the maintenance fees, the property tax, insurance and an allowance for vacancy and repairs, and ask what that net income is worth to them. An illustrative example, with round numbers only: a unit rented at $2,600 a month brings in $31,200 a year. Take off $8,400 in fees and about $3,600 for tax and insurance and the investor is looking at roughly $19,000 of net income before any mortgage. At the returns investors are currently accepting on Toronto condos, that income alone rarely justifies the price an end user would pay, which is why investors rely on future rent increases and appreciation.

That is the core of the discount. If your tenant pays $2,000 for a unit that would rent for $2,600 today, the investor is buying $7,200 a year less income, and in a rent-controlled unit it will stay below market for as long as the tenant stays. Use what will my unit rent for to see the gap for your unit.

Rent control and the 2018 line

Whether your unit is covered by the provincial rent increase guideline matters to an investor. Ontario exempts new buildings, additions and most new basement apartments that were first occupied for residential purposes after 15 November 2018. For those units the rent can be reset to market between tenancies and increases are not capped by the guideline; for older units the annual increase is limited to the guideline, so a below-market rent stays below market for years. An investor will ask which side of that line your building sits on.

When a buyer can end the tenancy

Section 49 of the Residential Tenancies Act lets a landlord who has signed an agreement to sell give notice to end the tenancy on behalf of a purchaser who, in good faith, needs the unit for their own residential use, or for their spouse, a child or parent of either of them, or a caregiver. The Landlord and Tenant Board’s guideline confirms three details that matter for a sale:

• Condominium units qualify regardless of building size. The rule that otherwise limits purchaser’s-use notices to complexes of three units or fewer does not apply to a condo unit.
• At least 60 days’ notice, with the termination date falling on the last day of a rental period or, for a fixed-term lease, the last day of the term.
• One month’s rent in compensation or another acceptable unit, payable regardless of how much notice is given.

The practical effect: an end-user buyer on a month-to-month tenancy can usually plan a closing about three months out; on a lease with nine months to run they cannot move in before it ends. If the tenant disputes the notice, the Board decides, which adds time. Your lawyer should draft the timing, and the buyer’s lawyer will insist on it.

Showings with a tenant in place

You or your listing brokerage can enter to show the unit to a potential purchaser with at least 24 hours’ written notice, and entry has to be between 8 a.m. and 8 p.m. That is the legal floor. In practice the best results come from agreeing a schedule with the tenant, keeping showings to set windows, and offering something for the inconvenience, such as a rent credit for each week of showings. A tenant who feels ambushed will leave the unit looking lived-in and may tell buyers what they think of the building.

Three ways to keep the discount small

1. Decide the buyer first. If the rent is near market, market the unit to investors as a turnkey rental with the lease, rent history and the tenant’s payment record ready. If it is well below market, you may do better selling to end users on a timeline that fits a section 49 notice.
2. Talk to the tenant early. Some tenants are happy to leave for a negotiated payment and time to find a new place; a mutual agreement to end the tenancy (the Board’s form N11) gives the buyer certainty. Get it in writing and never pressure anyone.
3. Time the listing to the lease. Listing so that a closing lines up with the end of a fixed term widens the buyer pool to include end users without a fight.

If you are still deciding whether to sell at all, read should I sell or rent out my condo first.

Where I fit

I sell tenanted units every year and the work is mostly sequencing: the tenant, the notice, the showings and the closing date all have to line up. Run the estimator below for a vacant-possession range, then book a call and we will work out what your tenancy does to it.

Frequently asked questions

Sources

• Landlord and Tenant Board — Interpretation Guideline 12, eviction for personal use — s. 49 purchaser's own use
• Landlord and Tenant Board — Interpretation Guideline 19, landlord's right of entry — 24 hours' written notice, 8 a.m. to 8 p.m.
• Government of Ontario — Rent increase guideline — units first occupied after 15 November 2018 are exempt
• TRREB — Market Watch, August 2026 — condominium apartment tables by region and municipality

Related reading

• Best realtor for selling a tenanted property in Toronto
• Should I sell or rent out my condo?
• How much rent can I charge in Toronto?
• Does an investment condo cash flow in 2026?