- Joined
- Feb 18, 2008
- Messages
- 1,284
I'm just on my way back from a terriffic weekend in Vancouver at the ACRES weekend. I've heard been a number of discussions there and seen some threads on here about property management that give me some concern.
There's two reasons your property manager needs to be licensed:
1. It's the Law. In Alberta that's the Real Estate Act and if you do any of these you're acting as a property manager:
[list type=decimal]
[*]Leasing or offering to lease real estate or negotiating or approving, or offering to negotiate or approve, a lease or rental of real estate;
[*]Holding money received in connection with an activity referred to in 1) above.
Advertising, negotiating or carrying out any other activity, directly or indirectly, for the purpose of furthering an activity referred to in 1) or 2) above.
[/list type=decimal]
2. Licensed property managers and brokerages use trust accounts and several layers of insurance to protect you. If they act fraudulently, die or go bankrupt, there's protections to keep your money (like security deposits) safe. I know folks who have lost tens of thousands of dollars with unlicensed firms.
It's easy to check (in Alberta anyways). Go to the RECA website (https://www.reca.ca/online/aspx/pubinquiry.aspx) and search for your manager's name or the company name. Just as an example, search for 'Davies' and go to the bottom. You'll see my actual first name (which isn't Chris) and notice that I'm not licensed for property management. Brent is licensed for all activities.
I'm not saying that there aren't competent and ethical people out there offering services. You're also well within the law if you hire someone unlicensed if they're working just for you. What is vital if you're using someone who isn't licensed is that you understand the grey area you're entering and the potential risks to both you and the person offering the services.
There's two reasons your property manager needs to be licensed:
1. It's the Law. In Alberta that's the Real Estate Act and if you do any of these you're acting as a property manager:
[list type=decimal]
[*]Leasing or offering to lease real estate or negotiating or approving, or offering to negotiate or approve, a lease or rental of real estate;
[*]Holding money received in connection with an activity referred to in 1) above.
Advertising, negotiating or carrying out any other activity, directly or indirectly, for the purpose of furthering an activity referred to in 1) or 2) above.
[/list type=decimal]
2. Licensed property managers and brokerages use trust accounts and several layers of insurance to protect you. If they act fraudulently, die or go bankrupt, there's protections to keep your money (like security deposits) safe. I know folks who have lost tens of thousands of dollars with unlicensed firms.
It's easy to check (in Alberta anyways). Go to the RECA website (https://www.reca.ca/online/aspx/pubinquiry.aspx) and search for your manager's name or the company name. Just as an example, search for 'Davies' and go to the bottom. You'll see my actual first name (which isn't Chris) and notice that I'm not licensed for property management. Brent is licensed for all activities.
I'm not saying that there aren't competent and ethical people out there offering services. You're also well within the law if you hire someone unlicensed if they're working just for you. What is vital if you're using someone who isn't licensed is that you understand the grey area you're entering and the potential risks to both you and the person offering the services.
