Restrictions On Showings

Business

7 minute read

June 24, 2019

Perhaps when the last version of the Residential Tenancies Act came to pass in 2007, the folks who invented the “Post-It Note” began an internal discussion about what constitutes “written notice.”

Once upon a time, “written notice” actually meant written, like, by hand.

And once upon a time, in order to give your tenant “written notice,” you actually had to send them a letter, or as many did, stick a note to their front door!

Whether or not an email constitutes “written notice” will probably vary from case to case, but there is an understanding that as far as notice to a tenant goes, from a landlord, an email is sufficient.

If a tenant wanted to make things very difficult, however, that tenant could inform the landlord that they want true written notice, in the form of a letter, for every communication.  This is, for many landlords, a worst-case scenario with a “problem” tenant, but I’ve seen it happen.  I’ve seen tenants and landlords do battle for various reasons, which results in a tenant saying that he or she wants all communication to be in writing.  No phone, no email – in writing, as is the tenant’s right under the Residential Tenancies Act.

In the case of a landlord who has his or her property on the market, this can be absolutely disastrous.

I have two rental listings at the moment; one is vacant, the other is tenanted.  Showings on the vacant unit are a breeze.  Showings on the tenanted unit are also a breeze, since the tenant is a really nice guy, who gave notice to the landlord (ie. it’s his decision to leave, so no issues with the landlord), and who is out of town quite often.

More often than not, tenants are very accommodating with showings, so long as they’re given their legally-mandated 24 hours’ notice, and the showing agents are on time, and respectful.

But once in a while, right or wrong, you do get that “problem” tenant, and a colleague of mine recently told me a story about one.  This tenant was living in a unit that was up for sale, and the tenant demanded that the landlord provide true written notice for each and every showing.

The tenant required that the written notice be received too, which meant that the landlord had to go over to the unit every night and provide a written notice of the showing request, usually 36 hours in advance, and physically hand it to the tenant.

This made the property near impossible to sell, because showings were so hard to book.

Connect the dots here: To sell a property, you need an offer.  To get an offer, you need an interested buyer.  To get an interested buyer, you need a viewing.

Without viewings, you have no chance at obtaining an offer.

Like I said: worst-case scenario.

Now the reason that I’m explaining this is simple: in lieu of the scenario above, there is absolutely, positively, zero reason to have restrictions on showings.

Well, almost zero.

I went to show a property north of the city on Sunday, and my showing request was denied.  I called the listing agent and said, “What gives?  I can’t show the property at 2:30pm on a Sunday afternoon?  We’re talking two days after the property hits the market?”

The agent responded, “I know, I know.  Really bad timing here, and I wish I could get you in!  But it’s their son’s first communion, and they’ve got like forty people over!”

Okay then!

So when I said, “Absolutely, positively zero reasons to have restrictions on showings,” maybe I was off by one or two cases.

But at the risk of sounding insensitive, I’ll add this: why in the world would you put your house on the market two days before you’re going to have forty people into your living room all day?

Yes, I know, it’s like I believe real estate comes before everything else.

But what can I say?  I only know one way to sell real estate, and that’s the right way.

When I list a property for sale, I read my clients the riot act with respect to showings.

I’ll tell them that there is zero reason for them to ever turn down a showing request, unless they decide that day that they do not want top dollar for their home.

Now keep in mind, most of my clients are astute.  They’re repeat clients, blog readers, referrals from both, etc.  Most of them already know this.

But just to hammer home the point, I explain it to them again.

And then for good measure, I always ask, “Do you need to be home for the next ten days?”

A big ask, I know.

But more than half of all my sellers end up moving out for the week their home.

Just for fun, let me go back and look at my last 15 listings…

By the numbers:

1 – Vacation Property (Vacant)
3 – Vacant
3 – Lived In The Unit During The Listing
8 – Moved Out

Hmm, very interesting.  I’ve actually never looked at this before!

Of the eight sellers who moved out:

1 – Lived With A Friend
1 – Stayed At Another Property
1 – AirBnB
5 – Lived With Parents

This is the lengths that people will go to in order to get maximum exposure for their properties.

And this is both a testament to access, in a sense that we aren’t just having zero restrictions on showings, but rather there’s nobody actually living in the unit, but also condition of the property, in a sense that the bed will never need to be made, the kitchen sink will never need to be cleaned, the floors won’t need to be swept, etc.

The incredible thing is – I’d say most of those sellers who moved out of the unit volunteered to do so before I even asked them!  Again, these are some astute sellers, many of whom knew I was going to ask.  But a lot of sellers in this market just “get it.”  And of the clients I had that did stay home, they all knew the drill; stay out from 9am to 9pm, and when you leave the property, it has to show exactly like it does in the photos.

And then, there are other ways of selling your home…

Last week, I wanted to show a property in the west end, and this isn’t west as in Milton; I’m talking east of Jane.

I made my appointment for Wednesday night on Wednesday morning, and my showing was refused.

This property, FYI, is under-priced with an offer date, meaning they need showings!

I called the agent, and he said, “The seller needs 12 hours notice.”

I figured this could be a sensitive situation, but I also really needed an answer, so I asked, “Oh, I see.  Is the seller elderly?  Or is there somebody in the house that’s having trouble?  If that’s the case, hey, I totally understand.”

The agent said, “No, no, nothing like that.  She’s just a bit old school, you know?  She likes to have her day planned out, calendar set, you know?”

I didn’t know, so I pressed.

“Well, she does want to sell, right?” I asked, not trying to be snide, but rather asking in the form of a real question.

“Yeah, she does,” he said, “Why?  You can’t go back tomorrow, or the next day?  Just give her some notice, that’s all,” he replied, taking a bit more of a defensive tone, and ultimately leading me to believe that he okay’d this.

He was right, in a way.  This is Toronto, and demand is greater than supply.  The seller holds the cards, so who are we to complain?  If we don’t like it, we can screw off.  Somebody will buy this house, and the seller doesn’t care if it’s us.

But that’s the problem, since my clients did screw off.  They’re both professionals in their late-20’s, working excessive hours, and as a result, they can run hot and cold.  Long day at work, get home at 1:00am, and you might be in a different mood and mindset than you were at 9:30am that day.

My clients passed on this property, and it’s just as much their loss as it is the sellers.  I told them as much, and they know.  They just don’t care, as they told me.

But I can’t help but think that if we passed on seeing this house, there must be others.  And if the seller turned down our showing request, surely there were other times or circumstances that weren’t to her liking.  When offer day comes, she will sell her house.  But if she gets 2 offers, she might have had 4 if she’d given unfettered access to her home.  If she gets 9 offers, she’ll never know if she could have had 10, 11, or 12.

I understand that one’s house is their home, and that buyers need to respect that.  I’ll be the first person to repeat this, especially when random members of the public think it’s their right to attend an open house, rather than a privilege, and have no problem taking smack about the home with others in ear-shot, or letting their kids play with the owner’s kids’ toys, etc.

However, I also advise my clients that as soon as your property is listed for sale, it’s no longer your “home,” but rather now it’s your “asset.”  This is especially true for people who have bought a new home, and then go to sell their existing home.  You know you are moving, so recognize that this isn’t your home any longer; it’s merely your investment vehicle, and an asset.  As such, you should do anything in your power to increase the value of your investment, and showcase your asset to the largest number of people possible.

Last weekend, I was north of the city once more, in an area that is definitely a buyer’s market.

It’s very common for houses to take 60-90 days to sell, if they sell.

It’s very common to see multiple price reductions.

And shocking as it may seem, it’s very common for sellers to simply say, “No showings this weekend.”

Imagine that.

A seller with his or her house on the market who presumably wants to sell, tells his or her agent, “No showings this weekend” with the same laissez-faire demeanour as they would tell the waiter “No freshly-ground pepper, thanks.”

It makes absolutely zero sense to me, and if I were the listing agent, I wouldn’t put up with it.

I’ll give the tough love when needed.  I don’t beat around the bush.  If that were my listing, I’d tell the sellers, “You just reduced the chances of selling your home by 15%, and reduced the expected value of the sale by ten thousand dollars.  Why?  So you can sit at home and ‘relax?’  Does that make sense to you?”

Of course, I rarely have these conversations.  Maybe I’m lucky that way.

But Good Lord, there are so many sellers in the GTA who have no problem waving their hand at weekend showings, or cutting off showings at 6:30pm as though the whole world finishes work when the whistle blows at 5pm, or demanding “ample notice” when their definition of “ample” is more like “unnecessary.”

If you’re a prospective seller, take these words to heart.

A job worth doing, is worth doing well.  And right.

Written By David Fleming

David Fleming is the author of Toronto Realty Blog, founded in 2007. He combined his passion for writing and real estate to create a space for honest information and two-way communication in a complex and dynamic market. David is a licensed Broker and the Broker of Record for Bosley – Toronto Realty Group

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11 Comments

  1. Jon Brown

    at 11:23 am

    Absolutely agree.

  2. Laurie

    at 3:30 pm

    I also agree. When I was searching for my current house we saw a tenanted house. We’d booked the showing well in advance, so there was definitely time for the tenants not to be there. Instead, there were many, many people in the house, one of whom felt the need to run into each bedroom before we looked at it and drop his pants.

    I ended up not buying it because it looked like it would have cost me a lot more than I wanted to spend fixing up the many problems I saw in the house (kitchen, bathrooms, flooring, windows, doors, etc), but I think more people would have been more offended by the surprise pants dropping and run screaming.

    Upon reflection, I don’t think my Realtor actually did anything about that – like telling the sellers/sellers’ Realtor. But sadly, that doesn’t surprise me.

    1. Anna

      at 2:46 pm

      So you are calling tenants difficult right what a jackass landlord puts the house for rent 10 days prior to Christmas and already we had to deal with 6 showings when I can’t relax in my own place and the agent who says I want to be smooth for you guys brings ppl everyday and now it started twice a day and Sunday and the hours they don’t even actually head up to 25 between showings and he calls me on Christmas day to let me know that is a showing the next day she. He was asked to only communicate via true written notice and bothering me on stationary holidays and continuing to do so I’m scare to leave the house I cut these ppl try to walk in with shoes from outside and put the key on the door while I wa trying to open and every day is some new hack as agent but the one on charge complete a a hole do enough about landlords mine comes and goes as it pleases no question asked

  3. K Juss

    at 6:17 pm

    In 2018 when my wife and I purchased our small downtown T.O. house (through David) it was tenanted and a very awkward experience for us during the tour – the renters had a newborn …. and If I recall correctly the child was breast feeding during our showing! Ultimately, there was very limited competition due to reduced showings and we were able to close below list price. I would agree with David, and firmly believe that if the house was not tenanted and staged correctly the listing would have performed better. The tenants were leaving on their own accord – the listing realtor should have advised the landlord to simply wait another 30-60 days and then list.

    When we sold the condo we did exactly what David recommended: cleaned the place, painted what needed to be painted, had some great staging and excellent photos taken. We took his advice and stayed with family during the weekend showings but chose to live in our “asset” throughout the work week. During the week, it was bloody tedious to make sure it was picture perfect, especially with 2 dogs leaving their hair everywhere. The Dyson was a real hero that week.

    We never refused a showing no matter the day, time or lateness of the request (I think ~40 in total – and sometimes finishing at 10 pm). The old lady and I just went for a beer at the nearby brewery or had drinks with friends that lived in the building. It turned out great for us and we had 8+ offers. This is not a brag – we simply followed good advice and were rewarded accordingly with an excellent selling price.

    For reference, our neighbour, who sold at the crazy peak in 2017 had the EXACT same unit as us but did absolutely everything wrong: messy house, not staged, unprofessional photos. Their home was listed at exactly the same price as ours – but they sold under after sitting on the market AND a price reduction. Basically, they hired a terrible realtor that gave shitty guidance. You get what you pay for.

  4. Matthew Beale

    at 7:00 am

    You have wrote something unique and knowledged.

    Keep it up

  5. G.I.Joe/He-Man/Parkhurst

    at 12:52 pm

    Hard to disagree with that…..

  6. Jeremy

    at 8:16 pm

    I had actually never thought of any of this. But I’ve also never bought or sold before. Cool stuff. Thanks!!

  7. Jeremy

    at 5:30 pm

    I understand the incentive for a seller but not for a tenant even if they gave notice that they’re leaving. A tenant still pays full rent during all the showing period. Perhaps a tenant is self-employed and has an office in her apartment with all the things she needs to do her job. Given the potential negative impact, it’s not really reasonable to expect such a tenant to be gone for so long or so often on a few hours notice.

    I think owners of properties with tenants should arrange to have the tenants vacate before they start showing their unit. Such owners should bear the cost (in dollar amount and otherwise) of the sale of their unit.

  8. John

    at 9:12 pm

    Had a question for you. My wife and I just closed on a home we sighed the paperwork with our lawyer and it was stated that no asbestos was in the home. Guess what, the attic has vermiculite insulation that’s tainted with asbestos. We just notified our lawyer, waiting for a response. My question is what recourse do we have? Does title insurance cover this or do we sue the seller for misrepresenting the home?

  9. Anna

    at 2:45 pm

    So you are calling tenants difficult right what a jackass landlord puts the house for rent 10 days prior to Christmas and already we had to deal with 6 showings when I can’t relax in my own place and the agent who says I want to be smooth for you guys brings ppl everyday and now it started twice a day and Sunday and the hours they don’t even actually head up to 25 between showings and he calls me on Christmas day to let me know that is a showing the next day she. He was asked to only communicate via true written notice and bothering me on stationary holidays and continuing to do so I’m scare to leave the house I cut these ppl try to walk in with shoes from outside and put the key on the door while I wa trying to open and every day is some new hack as agent but the one on charge complete a a hole do enough about landlords mine comes and goes as it pleases no question asked

  10. Acina

    at 7:37 pm

    Your a complete piece of shit gir posting this crap the poor tenants have to go through that they should be restrictions specialy when we didn’t put the house for sale have kids and get bothered every day 7 days of the week several times a eeek and we pay the rent on time and fully and sharks like you have no respect for a human life I hope you all rotten in hell

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