Contact Us Licensee Login

Professional Standards Manual

Rental Property Management Services

1. Overview

(b) Exemptions from Licensing - View Entire Section

(III) Exemption for caretakers or managers employed by brokerages (Section 2.14 of the Real Estate Services Regulation)

[06/19/2012 The following section was amended to include the portion from “Keep in Mind” onwards]

 

(1) Subject to subsection (2), an individual who is employed as a caretaker or manager of rental real estate by a brokerage that is licensed to provide rental property management services is exempt from the requirement to be licensed under Part 2 of the Act in respect of any of the following activities in relation to those real estate services:

(a) if the caretaker or manager complies with subsection (2), collecting money in relation to the rental real estate, including money collected as rent, security deposits or pet damage deposits;

(b) showing the rental real estate to prospective tenants;

(c) receiving and presenting applications in respect of the rental of the rental real estate from prospective tenants;

(d) supervising employees or contractors hired or engaged by the brokerage;

(e) communicating between landlords and tenants respecting landlord and tenant matters.

(2) On receipt of money referred to in subsection (1)(a), the exempt caretaker or manager must promptly deliver the money to the brokerage.

(3) Subsection (1) does not apply to a caretaker or manager who negotiates or enters into contracts on behalf of the brokerage or the owner of the rental real estate.

Keep in mind:

Section 2.14(1) of the Real Estate Services Regulation exempts individuals from licensing who are employed as caretakers or managers of rental real estate by a brokerage that is licensed to provide rental property management services.  

Similarly section 2.18(1) of the Real Estate Services Regulation exempts individuals from licensing who are employed as caretakers or managers by a strata corporation or by a brokerage that provides strata management services to or on behalf of a strata corporation. 

There are several key components of these exemption regulations that brokerages employing unlicensed persons who act under it need to understand. First, the relationship between the brokerage and such a person must be one of employer/employee. The individual cannot act as an independent contractor providing services to or on behalf of the brokerage. Whether or not an individual will be considered to be an employee or an independent contractor for the purposes of the exemption depends on the unique circumstances in each case.  In making this determination the Council will consider similar criteria to those used to determine if a worker is an employee or an independent contractor under the Income Tax Act.  Briefly, some of the factors the Council may consider are:

  • The intention of the parties;
  • The level of control the payer has over the worker;
  • Whether the worker provides the tools and equipment;
  • Whether the worker can subcontract the work or hire assistants;
  • The degree of financial risk taken by the worker;
  • The degree of responsibility for investment and management held by the worker;
  • The worker’s opportunity for profit (can the worker increase their proceeds or decrease their expenses to increase profit?); and
  • Any other relevant factors such as written contracts or statutory deductions. 

Brokerages are expected to keep documentation evidencing an employer/employee relationship including any documents that take into consideration the above factors which may include employment contracts, job descriptions, or evidence of statutory deductions such as income tax, employment insurance premiums, Canada Pension Plan contributions etc. 

Brokerages may wish to seek independent legal and/or accounting advice to ensure that their worker will meet the requirement set out in the exemptions.  For further information brokerages should refer to the guide published by the Canada Revenue Agency found at www.cra-arc.gc.ca/E/pub/tg/rc4110/README.html and a guide to the BC Employment Standards Act found at www.labour.gov.bc.ca/esb/esaguide/.

Services provided under this exemption must be limited to those identified above. Advising the landlord on what constitutes appropriate or ‘‘market’’ rent, negotiating the terms of a lease and signing rental agreements are not permitted. Brokerages and their managing brokers are responsible for ensuring that the services offered by unlicensed caretakers/managers do not go beyond what is permitted in the Regulation and may be subject to discipline proceedings for failing to do so.