Want to find out how to start a property management company in BC?
Property management businesses can be both profitable and meaningful business ventures. As one of the fastest-growing real estate markets in Canada, BC offers promising opportunities for those looking to manage rental properties, strata corporations, and commercial buildings. But before we jump into the logistics, it’s important to understand the legal, financial, and operational steps required to do it properly, especially if you’re setting up through BRC BC.
In this guide, we’ll walk you through everything you need to know about how to start a property management company in BC, whether you’re going solo or incorporating. We aim to make this complex process clear and manageable, so you can focus on building a trustworthy and compliant business.
Understanding the Role of a Property Management Business
Property managers wear many hats. At the core, their job is to manage residential, commercial or strata properties on behalf of owners. In BC, this could involve anything from collecting rent and coordinating repairs to enforcing tenancy agreements and complying with provincial housing laws.
Services offered often include:
- Leasing and tenant screening
- Routine property inspections
- Rent Collection and arrears handling
- Budgeting and financial reporting
- 24/7 emergency maintenance coordination
What makes starting a property management business in BC unique is the regulatory environment. Property managers must often comply with standards set by the BC Financial Services Authority (BCFSA) and the Real Estate Services Act (RESA), which means your operations need to be airtight from day one.
Understanding the scope of services you’ll offer not only helps define your business but also determines which licenses you’ll need and how your company should be structured. Many new business owners underestimate just how broad the responsibilities are, and that can lead to non-compliance issues down the road.
Who Can Start a Property Management Company in British Columbia?
In BC, not just anyone can open the doors to a property management business and start collecting rent on behalf of someone else. The Real Estate Services Act outlines specific requirements, including a licensing framework for anyone providing rental property management services to the public for a fee.
To get started, you generally need:
- To be at least 19 years old
- Canadian citizenship or permanent resident status
- A clean criminal record
- Completion of the rental management licensing course through UBC Sauder School of Business
- Approval and licensing from BCFSA
Importantly, only a licensed brokerage can provide property management services. So even if you’re a licensed individual, you’ll need to operate under or as a licensed brokerage, whether incorporated or not.
This is a crucial part of starting your company. You can’t manage rental properties professionally in BC unless you’re licensed or working under someone who is.
Business Structures: Sole Proprietorship vs Corporation
Choosing the right structure for your property management company can impact everything from how much you pay in taxes to your personal legal liability.
| Factor | Sole Proprietorship | Corporation |
|---|---|---|
| Legal Structure | Not separate from owner | Separate legal entity |
| Liability | Unlimited personal liability | Limited liability |
| Taxes | Personal income tax | Corporate tax + potential dividends |
| Cost to Start | Lower | Higher (legal + registration fees) |
| Credibility | Lower | Higher, especially with clients |
| Licensing | Must still register as a licensed brokerage | Must license the corporation as a brokerage |
If you’re testing the waters or managing your own properties, a sole proprietorship may be a good starting point. But if you’re looking to scale, bring on staff, or limit personal risk, incorporation may be the smarter move. Read our guide in depth on Sole Proprietorship vs Incorporations in BC.
Incorporating Your Property Management Company in BC
Incorporating in BC means creating a separate legal entity, a corporation, to operate your business. This setup is ideal for liability protection and tax flexibility, but it does come with more administrative work.
Here are the main topics:
- Name reservation and NUANS report through BC Registry Services.
- Prepare your incorporation documents, including articles of incorporation
- File incorporation online via Corporate Online
- Apply for a business licence in the municipality where your office is located.
- Register for a Real Estate Brokerage Licence with BCFSA
In BC, all real estate brokerages, including those offering property management services, must be incorporated or operate as sole proprietorships under license. The corporation itself must be approved by the BCFSA, which includes submitting a detailed brokerage application, brokerage name approval, and designated managing broker details.
Registering as a Sole Proprietor in BC
If you’re planning to operate on a smaller scale or prefer simplicity, you can register as a sole proprietor.
Here’s what the process typically looks like:
- Choose your business name, or use your legal name.
- Register your name with the BC Registry
- Apply for a municipal business licence
- Apply for your individual Real Estate Licence
- Register your business with BCFSA under licensed brokerage (or become one)
Remember, even as a sole proprietor, if you’re providing property management services for others, you’ll need a brokerage license unless you’re operating under an existing brokerage.
Sole proprietorships are faster and less costly to set up, but the trade-off is that you assume full legal responsibility for the business. This can be risky in a field where legal disputes with tenants, owners, and municipalities are not uncommon.
Licensing Requirements with the BC Financial Services Authority (BCFSA)
Licensing is perhaps the most important part of launching your property management company in BC. The BCFSA oversees all licensing for real estate professionals, including those involved in rental property management.
Here’s what you’ll need:
- Complete the rental property management licensing course (Through UBC)
- Pass the exam
- Submit your licence application
- Register a brokerage (If you’re starting your own firm)
Licensing fees typically range from $1,500 to $2,000, and licences must be renewed regularly. Once licensed, you’re legally permitted to act on behalf of property owners to manage tenancies, handle trust funds, and oversee repairs and operations.
It’s illegal to offer these services in BC without a valid license, even if you own the business yourself. Failure to comply can result in fines, license suspension or even criminal charges under the RESA.
Naming Your Property Management Business
Naming your business is more than a creative decision; it’s a legal one in British Columbia. Whether you’re incorporating or registering as a sole proprietorship, your final property management business name must comply with specific provincial regulations.
Here’s what you need to know:
- Your name must be distinct and not misleading.
- It cannot be too similar to an existing BC business or corporation name.
- It must reflect the nature of your business (e.g., include terms like “property management” or “real estate services” if appropriate)
- You must get your name approved via a Name Request through the BC Registry.
For incorporated companies, a NUANS report (a name search report) is typically required to ensure that the name is available. Once approved, the name will be reserved for 56 days while you complete your incorporation.
For property management firms, it’s also important to align the name with BCFSA guidelines. Your business name should not suggest services you’re not licensed to provide. It should clearly reflect that you are a property management business, which helps build trust and ensures compliance.
Getting a Business Number (BN) and Tax Accounts
Once your business is legally registered, you’ll need a Business Number (BN) from the Canada Revenue Agency (CRA). This number is used for tax purposes and other federal services. You can register for a BN online or through your incorporation process via OneStop BC.
Depending on your business activities and revenue, you may also need to register for:
- GST/HST account – mandatory if you earn more than $30,000 in gross revenue annually.
- Payroll account – If you plan to hire employees
- Import/export account – If you deal with goods across borders (less common for this industry)
As a property management business in BC, you’ll likely need to charge GST on your service fees to landlords. It’s important to understand what’s taxable and what’s exempt. For example, rent collected for residential landlords is typically not subject to GST, but your management fee might be.
Setting up a Trust Account and Managing Client Funds
Under the Real Estate Services Act (RESA), managing trust money is a major responsibility for licensed property managers in BC. A trust account is a separate bank account used to hold money that belongs to others, typically rent collected on behalf of landlords, damage deposits, or strata fees.
Here’s what you need to do:
- Open a designated trust account at a recognized financial institution.
- Ensure the account is in the name of your licensed brokerage.
- Follow BCFSA trust account rules, including daily recordkeeping, monthly reconciliations, and annual audits.
Improper handling of client funds can lead to fines, licence suspension, or loss of reputation. Trust accounting must be meticulous, and it’s best to work with a bookkeeper or software that understands BC’s compliance requirements.
This area of the business is heavily regulated. Even something as simple as transferring a security deposit into your business account instead of a trust account can land you in legal trouble. If you’re unsure, BCFSA provides detailed guidance on trust account management for property managers.
Liability & Legal Responsibilities
Operating a property management business in BC comes with legal responsibilities that can’t be ignored. The Real Estate Services Act (RESA), Residential Tenancy Act (RTA), Strata Property Act, and municipal bylaws all play a part in shaping your duties as a licensed operator.
Here’s a realistic scenario:
Let’s say your company oversees a rental property in Vancouver. You hire a plumber to fix a leaking pipe. They complete the job but forget to fully tighten the valve, leading to water damage that costs the landlord thousands of dollars. If your trust account or insurance coverage isn’t set up properly or if there’s no clear contractor agreement, you could be liable for the damages.
As a licensed property manager, your responsibilities include:
- Maintaining accurate records
- Keeping client funds in trust
- Managing risk and insurance
- Complying with housing laws and tenant rights
- Following all licensing conditions
Non-compliance can result in loss of licence, financial penalties, and legal liability, personally or through your corporation. This is one reason why incorporating your business may provide better protection compared to operating as a sole proprietor.
Creating Contracts, Policies, and Internal Systems
Strong internal systems make your property management business more efficient and legally sound. Start by creating standardized contracts, including:
- Property management agreement
- Residential tenancy agreement (BC-standard)
- Maintenance work orders
- Inspection checklists
These contracts protect both your business and your clients. For example, a management agreement should clearly define what services you’re providing, what fees are charged, and what authority you have to act on behalf of the owner.
Additionally, it’s essential to have:
- A record-keeping system (Digital or paper)
- Tenant communication protocols
- Emergency maintenance plans
- Move-in/Move-out inspection procedures
Investing in good systems upfront helps you stay compliant with RESA and protects against disputes with landlords, tenants, or vendors. Whether you’re using spreadsheets or property management software, consistency is key.
Understanding Municipal Rules and Zoning
Before signing a lease for office space or advertising your services, make sure you’re complying with local zoning bylaws and municipal business licensing.
Each city in BC has its own rules. For example:
- Vancouver requires a business licence for real estate services and may restrict home-based offices in certain zones.
- Surrey may require specific insurance or inspection for business premises.
- Smaller municipalities may have different standards for signage, advertising, or business use of residential property.
Always check with the local city hall or municipal office to confirm you can legally operate from your chosen location. Ignoring zoning laws could delay your launch or even lead to shutdowns and fines
Insurance for property management business in BC
Insurance isn’t just smart in most cases; it’s required. Property managers deal with tenants, owners, and third-party contractors regularly. Without insurance, a single mistake or accident could put your company at risk.
Common types of insurance include:
- General Liability Insurance – for injuries or damage occurring on property you manage
- Errors and Omissions Insurance – covers professional mistakes, like lease issues or legal missteps
- Property Insurance for your office equipment or physical records.
- Commercial Vehicle Insurance – If your staff use company cars
If you’re a licensed brokerage, BCFSA mandates specific minimum coverage for certain activities. Work with an insurance broker who understands real estate and property management risks in BC.
Hiring and Training Staff (If Applicable)
As your business grows, you may need to hire licensed property managers, assistants or admin staff. BC regulations require that anyone managing property or dealing with trust money be licensed
Before hiring:
- Check the candidate’s licence status with BCFSA
- Provide training on your internal procedures
- Maintain employee records and payroll accounts
Even for non-licensed staff (like admin assistants), it’s important to set clear job descriptions and ensure they’re not performing regulated activities unless licensed.
BCFSA’s guidelines are strict: unlicensed staff cannot sign a tenancy agreement, collect rent, or negotiate repairs on behalf of a landlord. As an employer, it’s your responsibility to ensure compliance.
Technology Tools and Software for Property Managers
Managing dozens or hundreds of units manually is inefficient. Many property management companies in BC use specialized software platforms or custom ones to handle everything from rent collection to maintenance tracking.
Popular tools include:
- Buildium
- AppFolio
- Rentec Direct
- Property Vista
These platforms offer:
- Automated rent reminders
- Secure tenant portals
- Maintenance request systems
- Owner reporting dashboards
BCFSA doesn’t regulate which tools you use, but whatever platform you choose, make sure it supports trust accounting compliance, tenant privacy, and data security. Technology can save hours per week and reduce the chance of human error, especially when juggling multiple clients and properties.
Building Your Vendor and Client Networks
Success in property management depends heavily on the quality of your networks.
This includes:
- Maintenance vendors (plumbers, electricians, cleaners)
- Real estate agents
- Contractors for renovations or upgrades
Start building these relationships early, and vet each vendor thoroughly. Your clients (the property owners)
will rely on your judgment, and your reputation is tied to the quality of service their tenants receive.
On the client’s side use:
- Referrals from realtors or landlords
- Local landlord groups
- Online presence (Google business profile, local forums)
Word of mouth remains one of the most powerful tools for growth in this industry. Reliable services will speak for themselves, but having systems to attract and retain can ensure long-term stability.
Costs of Starting a Property Management Company in BC
Starting a property management business in British Columbia requires an upfront investment. While costs vary depending on your structure and locations, here’s basic breakdown:
| Expense | Estimated Cost |
|---|---|
| Licensing Course & Exam | $1,250 – $1,500 |
| BCFSA Licensing Fee | $1,000 – $1,500 |
| Incorporation (if applicable) | $350 – $1,000 |
| Business Licence (municipal) | $50 – $500 annually |
| Insurance | $800 – $2,000/year |
| Office Rent | $500 – $2,000/month |
| Software Subscription | $30 – $200/month |
| Marketing & Website | $500 – $2,000 startup |
Being aware of these costs helps plan your cash flow and avoid surprises. Keep in mind that operating expenses will continue monthly, including renewals, maintenance costs, payroll and advertising.
Myths vs Facts About Property Management in BC
Property management is often misunderstood, especially by those new to the business. Let’s take a moment to clear up some of the most common myths we hear from aspiring entrepreneurs in British Columbia.
| Myth | Fact |
|---|---|
| You don’t need a license if you only manage rental properties. | False. In BC, managing rentals on behalf of others requires a license from BCFSA under the Real Estate Services Act. |
| Property management is mostly passive income. | False. It’s an active, hands-on business that requires constant communication, inspections, and conflict resolution. |
| You can run the business from anywhere. | Not always. Zoning laws in BC municipalities may restrict business operations from residential addresses. Always check local regulations. |
| You can avoid liability if you hire contractors. | Not entirely. You’re still responsible for the actions of those contractors while they’re working on properties you manage. |
| Sole proprietorship is always cheaper and easier. | Only initially. Long term, the legal and tax advantages of incorporation may outweigh the simplicity of a sole proprietorship. |
Understanding these facts helps set realistic expectations and prepares you to make smart decisions, especially as the BC real estate landscape continues to evolve.
Where You Can Register Your Business
Whether you’re incorporating or registering as a sole proprietor, you can register your business directly through the BC Registry Services or with the support of business registration services such as BRC BC.
BRC BC assists with incorporation filings, business name approvals, and guiding new entrepreneurs through BC’s regulatory requirements, especially helpful for those starting regulated industries like property management.
While you can manage registrations independently, using a trust partner like us can reduce errors and ensure compliance from day one.
Conclusion
Starting a property management company in BC requires more than just a passion for real estate. It’s a licensed and regulated business that demands legal compliance, trust fund oversight, tenant relations, and clear operational systems. Whether you choose to incorporate or operate as a sole proprietor, success depends on your ability to meet the responsibilites outlined by the BC Financial Services Authority, the Real Estate Services Act and local municipalities.
From registering your company and securing your licence, to setting up trust accounts and navigating zoning bylaws, every step you take must align with provincial laws and ethical business practices. But once in place, your company can offer an essential service, helping property owners (landlords) protect their investments and tenants enjoy safe, well-managed homes.
Frequently Asked Questions
What license do I need to start a property management company in BC?
You need a Rental Property Management Licence from the BC Financial Services Authority (BCFSA). This includes completing a licensing course, passing the exam, and applying to become a licensed brokerage or work under one.
Can I start a property management company in BC without incorporating?
Yes, you can operate as a sole proprietor, but you still need to register the business and obtain the required licences from BCFSA. Incorporation offers liability protection, which many owners prefer.
How much does it cost to start a property management business in BC?
Startup costs vary, but expect to invest between $3,000 and $7,000, including licensing, insurance, incorporation (if applicable), office setup, and marketing.
Do I need a trust account to manage rental properties in BC?
Yes. Under the Real Estate Services Act, you must use a designated trust account for client funds such as rent, deposits, or strata fees.
How long does it take to get licensed as a property manager in BC?
The licensing process can take 3 to 6 months, depending on course completion time and BCFSA application processing.
Can I manage properties without a license if I only manage my own?
Yes. If you only manage your own personally-owned properties, you do not need a license. But if you manage on behalf of others for compensation, licensing is required.
What’s the difference between a property management business and a real estate brokerage?
In BC, both are considered real estate services under RESA. A brokerage can specialize in sales, rentals, or both. Property management firms must still be licensed as brokerages if managing others’ properties.
Where can I register my BC property management business?
You can register online through BC Registry Services or use services like BRC BC to assist with name approval, incorporation, and more.