Any person that provides property management services on behalf of another must be authorized by the Real Estate Council of Alberta (RECA) unless an exemption from the requirements of the Real Estate Act exists.
What activities are considered property management services?
The Real Estate Act definition of “trade” includes, in part, that collecting, or offering or attempting to collect, on behalf of the owner or other person in charge of real estate, money payable as rent for the use of the real estate is a trade in real estate. The definition of “trade” also includes property management activities which are defined as including:
- 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.
There is an exemption from the requirements of real estate legislation for owners conducting property management activities for their own properties or for a direct employee of the owner who is providing property management services for the owner’s properties. Exemptions are found in sections 2(1) and 2(2) of the Real Estate Act, and in the Real Estate Act Exemption Regulation.
There are many activities that a property management brokerage may undertake in providing services to an owner that do not require an authorization from RECA. A few examples of these activities include building maintenance, boiler maintenance and administrative functions such as record management etc.
What do property managers do?
Property managers perform a very important function in the ownership and management of real estate. Many owners are not set up to manage investment properties on an ongoing basis and instead, hire professional property managers to provide these services. Property managers are involved in all types of real estate including commercial and industrial, condominiums, residential, and farm and ranch.
The public places great trust in the assistance provided by property managers when making decisions with respect to income properties. A standard level of competency ensures that licensed real estate industry members who are providing property management services are well trained, well informed, and up to date with current industry trends.
The legal entity or company through which a real estate associate provides property management services is known as a real estate brokerage. Each brokerage has a registered broker, an individual who has specific responsibilities including ensuring adequate supervision of associate brokers and associates, proper management and control of documents, and proper maintenance of trust accounts. While the roles and responsibilities of associate brokers and associates are the same, an associate broker has the education and experience required to be a broker. Note that some real estate brokerages may choose not to provide property management services. If you wish to provide property management services, you will have to register with a brokerage that allows for this.
For more information about property management licensing, please see:
New to the Industry
Changing Licence Class
Opening a New Brokerage