A provincial regulator has suspended the operating license of a Vancouver-based rental property brokerage due to persistent failures to comply with financial record reporting requirements.

In a bulletin released last week, the BC Financial Services Authority (BFSA) suspended the license of Rent It Furnished Realty and froze its rental trust accounts.

A rental trust account is a designated bank account used to collect rent, security deposits, and other tenant payments. Funds must be deposited into this specific trust account and are subject to annual auditing. This process is designed to safeguard tenant and landlord funds and minimize the risk of misappropriation.

Rent It Furnished Realty manages approximately 350 properties across British Columbia. According to the BC Financial Services Authority (BFSA), the recent action is aimed at protecting the tenants and landlords associated with these properties.

This latest step represents an escalation of penalties following an August 2023 consent order. The order required the company to comply with specific terms after its managing broker admitted to misconduct between February 2017 and September 2022. The issues included failing to detect and address six shortages in the rental trust accounts totaling $5,773.18, not taking prompt corrective action, and neglecting to notify the BCFSA of the negative balance within 10 days.

As a result, Rent It Furnished Realty was fined $17,000 and ordered to pay $1,500 in enforcement costs in August 2023.

Jon Vandall, vice president of compliance and enforcement at BCFSA, stated, “The decision to freeze the accounts of this brokerage was not made lightly. The brokerage’s monthly trust accounts have not been reconciled as required by the August 2023 Consent Order and continue to be deficient.”

“We understand the significant impact this may have on landlords and tenants. Freezing the accounts is the most effective way to safeguard trust funds and address the brokerage’s accounting issues. Our primary goal is to protect consumer interests and maintain the integrity of the sector.”

BCFSA notes that landlords cannot evict tenants for non-payment of rent or deposits if these payments were made to Rent It Furnished Realty. Additionally, landlords will not have access to the funds managed by the company and should take steps to revise their rental payment arrangements.

Tenants are advised to continue paying their rent as specified in their tenancy agreements and should verify the legitimacy of the property owner. BCFSA clarifies that tenants who have already paid rent directly to Rent It Furnished Realty are not required to pay the rent again to the landlord.

In April 2016, Rent It Furnished Realty was subject to a consent order issued by the provincial Crown corporation. The company was reprimanded and fined $5,000, with an additional $1,500 in enforcement expenses. The 2016 order, issued by BCFSA, addressed the company's failure to maintain proper books, accounts, and records, as well as its lack of monthly reconciliations for trust account bank statements. Following this order, the company was placed under “enhanced supervision conditions.”

According to its website, Rent It Furnished Realty positions itself as a “leading provider of luxury rental properties” in Vancouver, Toronto, Montreal, Ottawa, and New York, managing over 5,000 luxury furnished properties. In addition to its headquarters in Vancouver, the company has offices in Toronto and Montreal.

BC regulator suspends rental housing management firm of 350 properties | Urbanized (dailyhive.com)

The British Columbia government is implementing major legislative changes to enhance protections for both renters and landlords in the province. The aim is to assist tenants facing unjustified rent increases and evictions, while also supporting landlords dealing with difficult tenants. These amendments seek to foster a fairer and more stable rental market by making targeted adjustments to the Residential Tenancy Act and the Manufactured Home Park Tenancy Act.

Key Legislative Changes

Protection Against Unjust Rent Increases

A major aspect of the amendments is the protection of families with children. Proposed changes will prevent landlords from raising rent beyond the allowable annual limit when a tenant adds a child under 19 to their household, even if their lease allows rent increases for new occupants. This initiative aims to provide greater stability for growing families, ensuring housing costs remain predictable and manageable.

Combatting Bad-Faith Evictions

To tackle the issue of landlords evicting tenants under false pretenses to increase rents for new tenants, the legislation introduces stricter controls on personal-use evictions. Landlords will be required to submit eviction notices through a government web portal, ensuring a standardized process and educating them on legal requirements and risks. Additionally, compliance audits will be conducted post-eviction to monitor and prevent abuse of personal-use evictions.

Expedited Resolution of Rental Disputes

Improving the efficiency of the dispute resolution process is another significant focus. Since late 2022, wait times at the Residential Tenancy Branch have been reduced by over half due to increased staffing and service enhancements. For disputes involving unpaid rent or utilities, wait times have decreased from over ten weeks to less than five, allowing landlords to regain their rental units more quickly. These improvements are part of a broader effort to streamline the resolution of rental conflicts and deliver quicker outcomes for all parties involved.

Stronger Enforcement and Penalties

The forthcoming Money Judgment Enforcement Act, effective in 2025, will simplify the process for enforcing monetary judgments awarded in tenancy disputes. This change will make it easier and more cost-effective for both landlords and tenants to collect owed amounts from Residential Tenancy Branch decisions.

Additional Measures

The proposed amendments to the Residential Tenancy Act include several changes aimed at addressing problematic tenancies and enhancing tenant protections. First, they establish clearer and more flexible guidelines for landlords to manage difficult tenants, promoting a structured yet adaptable approach to resolving issues without lengthy disputes.

Additionally, the notice period for personal occupancy evictions will be extended from six to twelve months, requiring landlords to occupy the unit for at least a year after eviction. This measure is intended to prevent the misuse of personal use evictions for financial gain.

To further protect tenants, the dispute period for eviction notices will be increased from 15 days to 30 days, allowing tenants more time to prepare their cases. Furthermore, personal use evictions will be prohibited in purpose-built rental buildings with five or more units, and the conversion of rental units to non-residential uses, such as short-term rentals or storage, will be banned.

These measures are part of the province’s broader Homes for People Action Plan, designed to maintain a stable supply of long-term rental housing while ensuring fair treatment for both renters and landlords. They build on previous initiatives by further strengthening tenant protections and clarifying the rights and responsibilities of landlords.

BC Landlord And Tenant Protection Legislation Changes: Residential Tenancy And Manufactured Home Park Tenancy Acts (canadianrealestatemagazine.ca)

I have listed a new business in Vancouver with the MLS number of: C8061141

Vegetarian Indian Restaurant in Vancouver, an established business spanning 1800 sq ft in the heart of Vancouver's East Broadway. This restaurant features a variety of Vegan and Gluten-Free options, catering to a loyal customer base with ample walk-in traffic. Currently leased at $5,250.00 per month plus GST(base rent), Gross Rent $7,724.30 (including GST), the location is conveniently situated near amenities and transit hubs, presenting an opportunity for new ownership to introduce fresh concepts and innovations. The neighborhood's vibrant atmosphere and proximity to transit hubs enhance its appeal, offering a promising opportunity Close to amenities and transit. Open to new opportunities and new owner concept.