Do Property Managers in BC Need a Licence?

Yes, in most cases. Under BC's Real Estate Services Act, anyone who manages a rental property on behalf of an owner for pay, such as finding tenants, collecting rent or deposits, or handling landlord and tenant matters, must be licensed by the BC Financial Services Authority (BCFSA) or fall under a specific exemption. Short-term rental management is treated differently: BCFSA has said the Act does not apply to people managing short-term rental accommodations.

Here is what the law covers, how licensed managers must handle your money, and what to ask before you hire anyone.

What the Real Estate Services Act requires

The Real Estate Services Act says a person must not provide real estate services to or on behalf of another, for or in expectation of remuneration, unless they are licensed or exempt. "Real estate services" covers three things:

• Trading services: helping buy, sell or lease real estate.
• Rental property management services: managing rental real estate for an owner.
• Strata management services: managing on behalf of a strata corporation.

The Act defines rental property management services as any of the following, provided to or on behalf of an owner of rental real estate:

• trading services related to renting the property, such as finding and placing tenants
• collecting rents or security deposits
• managing the property for the owner by making payments to third parties, negotiating or entering into contracts, supervising contractors, or managing landlord and tenant matters

If a company does any of these for you and charges a fee, it generally needs to be licensed.

How licensing is structured

BCFSA licenses at four levels: the brokerage, its managing broker, associate brokers, and representatives. Licensees work through a brokerage, and a brokerage can only provide services through licensees engaged by it.

Licences are issued in categories set by the Real Estate Services Rules: trading services, rental property management services, strata management services, or a combination. A brokerage licensed for rental property management can manage your rental. Strata management, which means managing a building on behalf of the strata corporation, is a separate category, so a company that manages strata buildings is not automatically licensed to manage individual rentals for owners, and vice versa.

Who is exempt

The licensing requirement is about services provided to or on behalf of another, so an owner managing their own rental does not need a licence. The Act and regulation also set out limited exemptions, including:

• an employee managing real estate only for their own employer
• caretakers or resident managers employed directly by owners, who must promptly hand over any rent, security deposits or pet damage deposits they collect
• caretakers employed by a licensed brokerage, for limited tasks such as showings, collecting rent for the brokerage, and communicating with tenants
• executors, trustees and court-appointed receivers acting in that role

An unlicensed individual who collects rent and deposits for several unrelated owners, and keeps the money, does not fit these exemptions.

Trust accounts for rent and deposits

This is the main protection licensing gives you. Under the Act, a brokerage must keep one or more trust accounts at a savings institution in BC, and must promptly pay into trust all money received for or on behalf of a client in relation to real estate services. For a rental, that includes rent and security deposits.

The Rules add record-keeping duties. A brokerage that provides rental property management services must keep a record of the tenants at each property it manages and the security, pet damage and other deposits each tenant paid. If you move to a new brokerage, the old one must hand over your trust records, tenant records and deposit records on request, within set time limits.

The Rules also require a written service agreement, signed before any services begin, unless you waive it. For rental management, it must state:

• how either side can end the agreement
• what the brokerage can do on your behalf, including signing cheques, making payments and entering contracts
• the timing and type of statements you will receive
• how security deposits, pet damage deposits and other deposits will be handled
• what records the brokerage will keep for you

If a licensee expects to benefit from money spent on your property, such as a referral payment from a contractor, they must disclose it to you before accepting it.

How short-term rental management fits

Short-term rentals, meaning stays under 90 consecutive days, sit under a different framework. In its December 2023 advisory on the Short-Term Rental Accommodations Act, BCFSA stated that the Real Estate Services Act does not apply to persons managing short-term rental accommodations, while reminding licensees that their own conduct can still lead to discipline.

Short-term rental management is covered by provincial and local rules instead:

• Provincial registration. Each short-term rental unit must be registered with the Province, and a property manager can register on the host's behalf using the host's information.
• Principal residence requirement. In most of BC, including the City of Vancouver, short-term rentals are limited to the host's principal residence, plus a secondary suite in some areas.
• Local licensing. Many municipalities, including Vancouver, require a business licence, and the licence and registration numbers must appear on every listing.

See can I Airbnb my condo in Vancouver for the local rules.

Furnished stays of 90 consecutive days or more are outside the short-term rental rules and can be tenancies under the Residential Tenancy Act, depending on how they are set up. BCFSA's statement covers short-term rental accommodation only, so ask any manager how they structure longer furnished stays. Our mid-term rentals guide explains the difference.

What to ask before hiring a property manager

1. Is your brokerage licensed by BCFSA for rental property management? Ask for the brokerage's licensed name, and confirm it with BCFSA.
2. Where will my rent and the tenant's deposit be held? For long-term rentals, the answer should be the brokerage's trust account.
3. Can I see the service agreement first? Check termination terms, spending authority, statements and deposit handling.
4. How do you screen tenants? Look for a credit check with the applicant's consent, ID, income and employment verification, and a previous landlord reference.
5. Who handles the tenancy paperwork? Notices, rent increases and renewals need to follow the Residential Tenancy Act. See our BC rent increase guide.
6. Do you receive anything from contractors you hire? Any such benefit must be disclosed.
7. If you manage short-term stays, how do you handle registration and licensing? Ask how they confirm eligibility before listing.

This is general information, not legal advice, so owners should confirm their own situation with BCFSA or a lawyer.

How Artin is set up

Long-term tenancies at Artin are run by Artin Realty, our BCFSA-licensed brokerage, with rent held in trust and the tenant approved by you before anyone moves in. Short and furnished stays are managed through Artin Stays. If you are weighing your options, our Vancouver property management page explains each rental length, or you can add your property to start a conversation.