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BCFSA has experienced a recent increase in calls from trading services licensees wondering whether they need a rental property management license to help their buyer clients find tenants for the investment property that the licensee just helped them acquire. In short, the answer is no.
Both trading services licensees and rental property management services licensees can assist clients who own all types of rental properties find tenants, and both can collect the initial security deposits, pet damage, or other deposits paid by new tenants to rent or lease real estate. However, any ongoing management of the rental real estate (including the collection of the first month’s rent) will require a rental property management licence.
If you are licensed to provide trading services, you are able to collect:
- security deposits;
- pet damage deposits; and
- other deposits paid in respect of the rental or leasing of the real estate.
All funds collected must be promptly delivered to your brokerage for deposit into the brokerage’s trust account in accordance with the property owner’s instructions.
Services such as the collection of rent, or any other ongoing management services requires a rental property management license. Trading services licensees who provide those services without the appropriate license will face disciplinary action.
If you are licensed to provide rental property management only, you cannot enter into a contract with prospective tenants seeking rental properties. Only a trading services licensee can provide that service.
Below is a table that can help you understand what licence is required to provide specific services:
|Service||Trading Services Licence||Rental Property Management Licence|
|Assist a landlord to find tenants||x||x|
|Assist a prospective tenant to find a property to rent||x|
|Collect rents from tenants on behalf of the landlord||x|
|Collect security deposits from tenants on behalf of the landlord||x||x|
|Make payments on behalf of the property owner to third parties||x|
|Negotiate or enter into contracts on behalf of the landlord||x|
|Supervise employees or contractors hired by the landlord||x|
|Manage landlord and tenant matters||x|