Trading Services or Rental Property Management
The owners of a rental property want your help collecting rents from their tenants.
Someone looking for a property to rent asks for your assistance in finding a good rental.
Can you do both these things? Only if you are licensed to provide both trading and rental property management services, and working at a brokerage that is also licensed for both services.
For help understanding the services that require a trading services licence, and when you will need a rental property management services licence, read on.
Q: I am a trading services licensee, and my client who has just purchased a rental property wants me to find tenants for the property. I’d like to help him out. Is this something I can do?
A: Both trading services licensees and rental property management services licensees can assist clients who own rental properties to find tenants, and both can collect the initial security deposits from new tenants – but any ongoing management of the rental real estate will require a rental property management licence.
If you are licensed to provide trading services, you can collect:
- security deposits,
- pet damage deposits, and
- other deposits paid in respect of the rental or leasing of the real estate.
You must promptly deliver any funds you collect to your brokerage for deposit into the brokerage’s trust account. The funds must be paid out in accordance with the property owner’s instructions.
When is a Rental Property Management Services Licence Required?
You cannot collect rents on behalf of a property owner, or provide any other ongoing management services for a rental property unless you are licensed for rental property management services. Trading services licensees who provide rental property management services without the appropriate licence will face disciplinary action from the Council.
If you are licensed for rental property management services and you would like to begin providing those services to a client, discuss the matter with your managing broker. Make sure that the brokerage has systems and trust account(s) in place to account for and collect the rents, before you agree to provide those services for your client.
Who Can Act For Prospective Tenants?
If you are licensed for rental property management services only, you cannot enter into a contract with a prospective tenant looking for a rental property. Only someone licensed to provide trading services can work on behalf of a prospective tenant to find a property to rent.
Here is a quick reference to the services that can – and cannot – be provided with either a trading services licence or a rental property management services licence:
|Service||Trading Services Licence||Rental Property Management Licence|
|Assist a landlord to find tenants|
|Assist a prospective tenant to find a property to rent|
|Collect rents from tenants on behalf of a property owner|
|Collect security deposits from tenants on behalf of a property owner|
|Make payments on behalf of the property owner to third parties|
|Negotiate or enter into contracts on behalf of the property owner|
|Supervise employees or contractors hired by the owner|
|Manage landlord and tenant matters|