PROPERTY MANAGEMENT CONDUCTED BY TRADING SERVICES LICENSEES

What trading services licensees can do for property management

trading services licensees may help clients advertise rental property, show rental property, receive tenant applications, prepare the lease document, negotiate lease terms, collect a tenant’s signature on the lease, and collect a security deposit from a tenant, as these activities fall within the scope of “trading services”

What trading services licensees cannot do for property management

a trading services licensee cannot collect rent from tenants, sign a tenancy agreement on behalf of the property owner, negotiate contracts on behalf of the owner other than the lease agreement, conduct a move-in inspection, supervise contractors hired by the owner, or manage landlord or tenant matters; must not charge a monthly management fee. Instead, it is more appropriate to charge an upfront lump sum fee for assisting the client in finding a tenant and facilitating the relevant trade in real estate.

Services that can and cannot be provided under either a trading services licence or a rental property management services licence.

A licensee is permitted to manage rental property owned by themselves or by their spouse, family partner, children, or parents if they follow certain conditions

If you are renting out your own property or property owned by a family member, you must:

• provide the services in your own name and not in the name of your brokerage;

• disclose to each potential tenant before entering a tenancy agreement that although you are licensed to provide real estate services, you are not regulated under RESA in this particular transaction;

• disclose in writing to the family member you are representing that although you are licensed, you are not acting as a licensee and you are not regulated under RESA in relation to the rental real estate;

• disclose in writing to the managing broker of your brokerage that you will be providing rental property management services on your own behalf or for a family member; and

• provide the rental management services without remuneration (i.e., for free).