Information for Landlord and Tenant Clients Regarding Kelowna-based Rental Property Management Brokerage, Menethil Properties Ltd.

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BC Financial Services Authority (“BCFSA”) issued an Urgent Order to suspend the licence of Tao (Terry) Guo on February 10, 2025, after an investigation into Menethil Properties Ltd. (“Menethil”) found that Guo had abandoned his duties as managing broker. Menethil is not authorized to operate as it does not have a managing broker.

The decision to suspend Guo’s licence was made after BCFSA discovered that Guo, Menethil’s managing broker, had moved overseas and was delegating his managing broker responsibilities to Menethil’s director, Yu (David) Song, who was not licensed to serve as a managing broker. The Real Estate Services Act (“RESA”) requires all real estate brokerages to have a licensed managing broker in place to supervise the brokerage. This requirement serves as an important mechanism for protecting consumers. Guo’s failure to supervise the brokerage was discovered during BCFSA’s ongoing investigation into Menethil’s accounting and payments practices.

Menethil Properties provides rental property management services to approximately 100 properties in Kelowna.

There are no immediate impacts to tenancy agreements as a result of this Urgent Order although Menethil is no longer authorized to operate. Tenants are protected by the Residential Tenancy Act and are advised to continue paying their rent according to the terms of their tenancy agreement. Further information for tenants regarding their obligations under their tenancy agreements, including rent payment, returning security deposits, and dispute resolution is available on the Residential Tenancy Branch website.

Landlord clients of Menethil and their tenants may be wondering how this impacts them. BCFSA has the following information:

For Landlord Clients

BCFSA expects that funds owed to landlord clients and tenants will be dispersed as normal.
Menethil’s license status is inoperative because the brokerage no longer has a licensed managing broker. As a result, it can no longer provide any real estate services.

As a result of the suspension of Menethil’s managing broker’s licence, licensed representatives working for Menethil (i.e., your rental property manager) are also no longer licensed to operate for the brokerage.
Landlords must take steps either themselves, or through a licensed rental property manager, to ensure that tenants are provided with clear information about where to pay rent. Landlords and licensed rental property managers must act in accordance with the Residential Tenancy Act and are not permitted to evict a tenant for non-payment of rent or non-payment of deposit if it was paid to Menethil Properties as per the tenancy agreement.

Landlords may wish to seek the services of a licensed rental property management brokerage or take on activities related to the management of their rental property themselves. BCFSA offers resources to support landlords with finding a licensed broker. Visit our ‘Find a Professional’ webpage for more information.
Yes. Landlords can take on activities related to the management of their rental property themselves, if they wish.

Landlords who take on activities related to the management of their rental property should ensure they can prove to the tenant that they are the landlord/property owner.

Landlords and licensed rental property managers must act in accordance with the Residential Tenancy Act and are not permitted to evict a tenant for non-payment of rent or non-payment of deposit if their February rent was paid to Menethil Properties as per the tenancy agreement.
We understand this is a difficult situation, and landlord clients with concerns about their obligations under their tenancy agreements, including rent payment, returning security deposits, and dispute resolution, can find information on the Residential Tenancy Branch website.

For Tenants

Residential tenancy agreements are not impacted as a result of this urgent order. However, your landlord (i.e. the property owner) may contact you to update your agreement because Menethil is no longer authorized to provide rental property management services.
The Residential Tenancy Branch advises that tenants should continue to pay rent according to the terms of their tenancy agreement, until such time as their landlord or another licensed property manager who has assumed responsibility of the property contacts them to provide updated information regarding their agreement.

Tenants should request that any landlord, property owner, or licensed rental property manager that contacts them provide proof that they are the landlord/property owner or appointed property manager.

Landlords are not permitted to evict a tenant for non-payment of rent or non-payment of deposit if it was paid to Menethil Properties as per the residential tenancy agreement.
We understand this is a difficult situation. Tenants with concerns about their obligations under their tenancy agreements, including rent payment, returning security deposits, and dispute resolution, can find information on the Residential Tenancy Branch website.

The Residential Tenancy Branch is responsible for dispute resolution between tenants and landlords and may be contacted for answers to questions you have about continuing rent payment, and other obligations under your tenancy agreement. In accordance with the Real Estate Services Act, BCFSA does not regulate the actions of tenants.

Why Did This Happen?

BCFSA holds all brokerages to high professional and regulatory standards and expects them to remain compliant with the Real Estate Services Act (“RESA”).

As the regulator of B.C.’s real estate sector, BCFSA’s role includes ensuring compliance with the regulations that help to protect consumers, and that the proper controls and accounting practices are in place to protect consumers whose deposits are held in trust. We do this by conducting inspections and working with brokerages and licensees to ensure compliance.

The decision to suspend Guo’s licence was made by BCFSA as a result of information discovered during the course of its ongoing investigation into Menethil’s accounting and payments practices. BCFSA discovered that Guo, Menethil’s managing broker, had moved overseas and was delegating his managing broker responsibilities to Menethil’s director, Yu (David) Song, who was not licensed to serve as a managing broker. The Real Estate Services Act (“RESA”) requires all real estate brokerages to have a licensed managing broker in place to supervise the brokerage. This requirement serves as an important mechanism for protecting consumers.

Song had previously been licensed as Menethil’s managing broker, however, his managing broker licence was cancelled in September 2023, after BCFSA found Song had committed professional misconduct when he failed to file financial statements, properly maintain financial records, and did not respond to BCFSA’s requests for information as required under the Real Estate Services Rules (the “Rules”). While Song’s managing broker licence was cancelled and he was required to pay a $25,000 penalty, he was allowed to continue operating with a representative broker licence and he maintained his role as director at Menethil.