Why use a Licensed Property Manager
If you own a property and need to have it rented. Who should you hire to manage the property? Good Question.
In BC the Real Estates Services Act is the law which outlines what a transaction in real estate is and who can manage those transactions for other people. We will look here at Rental Management specifically. It is a requirement to be licensed to provide rental management services in BC for others, unless you are in an exempt category.
The definition of rental management in the Real Estate Services act is as follows:
"rental property management services" means any of the following services provided to or on behalf of an owner of rental real estate:
trading services in relation to the rental of the real estate;
collecting rents or security deposits for the use of the real estate;
managing the real estate on behalf of the owner by
(i) making payments to third parties,
(ii) negotiating or entering into contracts,
(iii) supervising employees or contractors hired or engaged by the owner, or
(iv) managing landlord and tenant matters
The Real Services Act requires individuals to be licensed to provide Real Estate Services in BC to or on behalf of another in exchange for remuneration. There are some exemptions including, the owner of the property may manage the rental, caretakers hired by owners of a property, trustees in bankruptcy, executor or administrators of an estate, persons acting under the order of a court, practising lawyers and financial institutions with respect to real estate it owns. All other parties must be licensed to provide third party rental management in BC.
What are the benefits of using a licensed individual to manage your rental property?
All Real Estate Professionals are governed by the British Columbia Financial Services Authority (BCFSA) which has rules, regulations and requirements in place to protect consumers in the management of their real estate. All rental property managers are required to be employed by a real estate brokerage and have a license. Every two years property managers are required to renew their license, during the two year licensed period property managers are required to engage in specific training to ensure they are complying with regulations in the industry. The brokerage must follow strict rules for accounting the funds they collect from real estate transactions in trust accounts which can be audited by BCFSA for accuracy.
How do I know if a person or company is licensed?
The BCFSA website has information available for professionals and the public. Under public resources in the Real Estate section there is an area labeled “Find a Real Estate Professional”. In this section it gives you the opportunity to enter an individual's name and or name of the brokerage. If you enter the name of the person or the company and nothing identifies them, then they are not licensed in BC. BCFSA offers many more resources for customers explaining how professional managers are required to represent their clients, regarding conflicts of interest, confidentiality and how client money is managed.
If you are not sure your property manager is licensed, view the link below to find out.
https://www.bcfsa.ca/public-resources
Need assistance managing your rental property? contact us for an evaluation of your needs.
Cartref Properties specializes in managing rental units located within Strata Corporations.
www.cartrefproperties.com
