Payments & Benefits Disclosure Information for Rental Property Owners

Your Simple Solution for Keeping Your Clients Well-Informed

As a rental property manager, you have a duty to make sure that your clients have the information they need to make good decisions. This includes making required disclosures about any fees or benefits received from someone other than your client as a result of providing rental property management services on their behalf.

Disclosure Requirements Simplified

Now, BCFSA has made it easier for rental property managers like you to ensure that your clients are getting the information they need. Our new Payments and Benefits Disclosure Information for Rental Property Owners form includes a page of information that clearly explains the disclosure to your clients.

Keep Clients Informed

By using the Payments and Benefits Disclosure Information for Rental Property Owners form, your clients will know why they are receiving a disclosure from you, and why it is important for them to pay attention to the information. They’ll feel better informed, and better prepared to make decisions.

When you or your brokerage receives or anticipates receiving remuneration (either directly or indirectly) from someone other than your client for providing rental property management services to or on their behalf, you must promptly disclose it in writing. The Payments and Benefits Disclosure Information for Rental Property Owners form helps you to provide clear information to clients about:

• the source of the remuneration
• the amount of remuneration to be received
• all other relevant facts relating to the payment.

You must also disclose any direct or indirect benefit you receive or expect to receive from making an expenditure on behalf of your client. This information must be disclosed before the benefit is accepted. The Payments and Benefits Disclosure Information for Rental Property Owners form helps clients to see at a glance whether a benefit is:

• money
• gifts
• points
• any other type of benefit.

These disclosure requirements also apply any time that an associate or affiliate of you or your brokerage receives or anticipates receiving remuneration from someone other than your client as a result of the rental property management services provided on their behalf.

Ensure Timely Compliance with Disclosure Obligations

The Payments and Benefits Disclosure Information for Rental Property Owners form is a useful tool to help ensure you comply with making the correct disclosures to your clients in a timely manner. You should review your service agreements and related contracts annually for changes related to remuneration and benefits from third parties that will need to be disclosed to your client.

In any of the situations below, BCFSA recommends you use the Payments and Benefits Disclosure Information for Rental Property Owners form so that the disclosure can be easily understood.

Disclose expected benefits at the beginning of the year

It is good practice to provide your client with a completed disclosure form early in the new year that identifies the remuneration you expect to receive for the year ahead. It is important to ensure that your client is well informed about any payments or benefits you receive or expect, including those that have been previously disclosed.

Disclose when benefits or remuneration change

If new payments or benefits are received or expected during the year, you must disclose them promptly in writing to your client. When you anticipate receiving a benefit as a result of making an expenditure on behalf of your client, the disclosure must be made prior to accepting the benefit.

Disclose at year end

You should complete an “end of year” written disclosure identifying the total amount of remuneration/benefits actually received over the course of the year.

Learn More about Disclosure Obligations

For more information about the Payments and Benefits Disclosure Information for Rental Property Owners form, or about the requirements to make disclosures to your clients, visit the BCFSAwebsite.

You can also contact an BCFSA Practice Standards Advisor for a confidential discussion.