The Residential Tenancies Act, 2006 governs what happens next, and it runs with the property rather than ending at closing. A fixed term lease survives a sale, and a buyer who wants to occupy the unit has to follow the Act's notice requirements rather than simply asking the tenant to leave the week after possession.
Below market rent is the quiet cost here. A tenant paying well under current rates depresses the income figure an investor can underwrite and simultaneously makes the property unattractive to an owner occupant, which stacks two disadvantages instead of one, so getting a written estimate of current market rent before listing shows you the real size of that gap.
Joel Dyck prices tenanted properties by first identifying which buyer type the property will actually attract, then adjusting for the lease terms rather than ignoring them. Get your hand-reviewed valuation from Joel Dyck.