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)