BC Rental Property Management cheat sheet

Gross operating income = potential gross rent + other income − vacancy and credit loss; effective gross income subtracts collection losses only.

Net operating income (NOI) = effective gross income − operating expenses; it excludes debt service, capital expenditures, income tax, and depreciation.

Capitalization rate = NOI ÷ property value; value = NOI ÷ cap rate. Cap rate rises when risk or required return rises.

Operating expense ratio = operating expenses ÷ effective gross income; a lower ratio indicates stronger operational efficiency.

Cash-on-cash return = annual pre-tax cash flow ÷ total cash invested; it measures return on equity actually deployed.

Debt service coverage ratio (DSCR) = NOI ÷ annual debt service; lenders commonly require a minimum DSCR, often 1.20 or higher.

Vacancy and credit loss allowance is estimated from market vacancy rate plus a collection-loss factor, not from a single month's experience.

Reserve for replacement is funded from operations and treated as an operating expense in underwriting, separate from capital improvements.

A tenancy agreement may be oral or written; where a standard-form written agreement is required by regulation, the landlord must prepare it within the prescribed time after the tenant signs.

Rent may be increased only once in any 12-month period, and only by the maximum annual amount set by the government, unless the unit is exempt from rent control.

A rent increase requires written notice served in the prescribed form and minimum notice period (commonly three full months) before the effective date.

Security deposits are capped at one half of one month's rent where rent is paid monthly; a separate pet damage deposit may also be capped at one half month's rent.

A landlord must return the deposit, with interest where required, within the prescribed period after the tenancy ends, or file a claim to retain part of it.

Entry by the landlord generally requires written notice of at least 24 hours, between 8 a.m. and 9 p.m., unless an emergency or the tenant consents.

Ending a tenancy for cause requires the prescribed form and notice period; a notice that omits required content or is served improperly can be found invalid.

Dispute resolution is filed with the residential tenancy branch; monetary orders are enforceable as court judgments, and time limits apply to claims.

Fair housing and human rights rules prohibit refusing applicants or setting different terms based on protected grounds such as race, religion, family status, or disability.

Advertised rent, unit size, and amenities must match the actual unit; a materially misleading advertisement can support a complaint or a claim of misrepresentation.

Screening criteria must be applied consistently to every applicant and documented; criteria applied only after the fact create discrimination risk.

A tenant selection decision should rest on objective, verifiable factors: income-to-rent ratio, rental history, references, and credit or background checks permitted by law.

Income-to-rent ratio screens commonly require gross monthly income of about three times the monthly rent; the ratio must be disclosed in advance.

A move-in condition inspection must be completed and signed by both parties, and the signed report is the baseline for assessing damage at move-out.

Routine maintenance requests should be logged with date received, action taken, and completion date; the log supports defence of habitability claims.

Renewal and retention decisions should be made before the fixed term expires so notice periods and rent-increase timing are not missed.

Security deposits and rents held for owners or tenants are trust funds; they must be kept in a designated trust account at a recognized financial institution.

Trust accounts must be reconciled monthly: bank statement balance is reconciled to the trust ledger, and the reconciliation is documented and retained.

Each tenancy or owner has an individual trust ledger; the sum of all individual ledger balances must equal the trust bank balance at all times.

Trust funds must not be commingled with the brokerage's operating funds or with the licensee's personal funds, and trust cheques require authorized signatories.

Records must be retained for the period set by the regulator (commonly at least six years) and be produced on request during an audit or investigation.

A licensee who receives money for a client must deposit it into trust promptly, within the time limit set by regulation, and issue a receipt.

Dual agency, undisclosed referral fees, and personal purchases from a client are conflicts of interest that require written disclosure and, where required, consent.

Commission is earned under the management agreement; the agreement should state the fee basis, the term, and the conditions for early termination.

Gross operating income = potential gross rent + other income − vacancy and credit loss; effective gross income subtracts collection losses only.

Net operating income (NOI) = effective gross income − operating expenses; it excludes debt service, capital expenditures, income tax, and depreciation.

Capitalization rate = NOI ÷ property value; value = NOI ÷ cap rate. Cap rate rises when risk or required return rises.

Operating expense ratio = operating expenses ÷ effective gross income; a lower ratio indicates stronger operational efficiency.

Cash-on-cash return = annual pre-tax cash flow ÷ total cash invested; it measures return on equity actually deployed.

Debt service coverage ratio (DSCR) = NOI ÷ annual debt service; lenders commonly require a minimum DSCR, often 1.20 or higher.

Vacancy and credit loss allowance is estimated from market vacancy rate plus a collection-loss factor, not from a single month's experience.

Reserve for replacement is funded from operations and treated as an operating expense in underwriting, separate from capital improvements.

A tenancy agreement may be oral or written; where a standard-form written agreement is required by regulation, the landlord must prepare it within the prescribed time after the tenant signs.

Rent may be increased only once in any 12-month period, and only by the maximum annual amount set by the government, unless the unit is exempt from rent control.

A rent increase requires written notice served in the prescribed form and minimum notice period (commonly three full months) before the effective date.

Security deposits are capped at one half of one month's rent where rent is paid monthly; a separate pet damage deposit may also be capped at one half month's rent.

A landlord must return the deposit, with interest where required, within the prescribed period after the tenancy ends, or file a claim to retain part of it.

Entry by the landlord generally requires written notice of at least 24 hours, between 8 a.m. and 9 p.m., unless an emergency or the tenant consents.

Ending a tenancy for cause requires the prescribed form and notice period; a notice that omits required content or is served improperly can be found invalid.

Dispute resolution is filed with the residential tenancy branch; monetary orders are enforceable as court judgments, and time limits apply to claims.

Fair housing and human rights rules prohibit refusing applicants or setting different terms based on protected grounds such as race, religion, family status, or disability.

Advertised rent, unit size, and amenities must match the actual unit; a materially misleading advertisement can support a complaint or a claim of misrepresentation.

Screening criteria must be applied consistently to every applicant and documented; criteria applied only after the fact create discrimination risk.

A tenant selection decision should rest on objective, verifiable factors: income-to-rent ratio, rental history, references, and credit or background checks permitted by law.

Income-to-rent ratio screens commonly require gross monthly income of about three times the monthly rent; the ratio must be disclosed in advance.

A move-in condition inspection must be completed and signed by both parties, and the signed report is the baseline for assessing damage at move-out.

Routine maintenance requests should be logged with date received, action taken, and completion date; the log supports defence of habitability claims.

Renewal and retention decisions should be made before the fixed term expires so notice periods and rent-increase timing are not missed.

Security deposits and rents held for owners or tenants are trust funds; they must be kept in a designated trust account at a recognized financial institution.

Trust accounts must be reconciled monthly: bank statement balance is reconciled to the trust ledger, and the reconciliation is documented and retained.

Each tenancy or owner has an individual trust ledger; the sum of all individual ledger balances must equal the trust bank balance at all times.

Trust funds must not be commingled with the brokerage's operating funds or with the licensee's personal funds, and trust cheques require authorized signatories.

Records must be retained for the period set by the regulator (commonly at least six years) and be produced on request during an audit or investigation.

A licensee who receives money for a client must deposit it into trust promptly, within the time limit set by regulation, and issue a receipt.

Dual agency, undisclosed referral fees, and personal purchases from a client are conflicts of interest that require written disclosure and, where required, consent.

Commission is earned under the management agreement; the agreement should state the fee basis, the term, and the conditions for early termination.

Gross operating income = potential gross rent + other income − vacancy and credit loss; effective gross income subtracts collection losses only.

Net operating income (NOI) = effective gross income − operating expenses; it excludes debt service, capital expenditures, income tax, and depreciation.

Capitalization rate = NOI ÷ property value; value = NOI ÷ cap rate. Cap rate rises when risk or required return rises.

Operating expense ratio = operating expenses ÷ effective gross income; a lower ratio indicates stronger operational efficiency.

Cash-on-cash return = annual pre-tax cash flow ÷ total cash invested; it measures return on equity actually deployed.

Debt service coverage ratio (DSCR) = NOI ÷ annual debt service; lenders commonly require a minimum DSCR, often 1.20 or higher.

Vacancy and credit loss allowance is estimated from market vacancy rate plus a collection-loss factor, not from a single month's experience.

Reserve for replacement is funded from operations and treated as an operating expense in underwriting, separate from capital improvements.

A tenancy agreement may be oral or written; where a standard-form written agreement is required by regulation, the landlord must prepare it within the prescribed time after the tenant signs.

Rent may be increased only once in any 12-month period, and only by the maximum annual amount set by the government, unless the unit is exempt from rent control.

A rent increase requires written notice served in the prescribed form and minimum notice period (commonly three full months) before the effective date.

Security deposits are capped at one half of one month's rent where rent is paid monthly; a separate pet damage deposit may also be capped at one half month's rent.

A landlord must return the deposit, with interest where required, within the prescribed period after the tenancy ends, or file a claim to retain part of it.

Entry by the landlord generally requires written notice of at least 24 hours, between 8 a.m. and 9 p.m., unless an emergency or the tenant consents.

Ending a tenancy for cause requires the prescribed form and notice period; a notice that omits required content or is served improperly can be found invalid.

Dispute resolution is filed with the residential tenancy branch; monetary orders are enforceable as court judgments, and time limits apply to claims.

Fair housing and human rights rules prohibit refusing applicants or setting different terms based on protected grounds such as race, religion, family status, or disability.

Advertised rent, unit size, and amenities must match the actual unit; a materially misleading advertisement can support a complaint or a claim of misrepresentation.

Screening criteria must be applied consistently to every applicant and documented; criteria applied only after the fact create discrimination risk.

A tenant selection decision should rest on objective, verifiable factors: income-to-rent ratio, rental history, references, and credit or background checks permitted by law.

Income-to-rent ratio screens commonly require gross monthly income of about three times the monthly rent; the ratio must be disclosed in advance.

A move-in condition inspection must be completed and signed by both parties, and the signed report is the baseline for assessing damage at move-out.

Routine maintenance requests should be logged with date received, action taken, and completion date; the log supports defence of habitability claims.

Renewal and retention decisions should be made before the fixed term expires so notice periods and rent-increase timing are not missed.

Security deposits and rents held for owners or tenants are trust funds; they must be kept in a designated trust account at a recognized financial institution.

Trust accounts must be reconciled monthly: bank statement balance is reconciled to the trust ledger, and the reconciliation is documented and retained.

Each tenancy or owner has an individual trust ledger; the sum of all individual ledger balances must equal the trust bank balance at all times.

Trust funds must not be commingled with the brokerage's operating funds or with the licensee's personal funds, and trust cheques require authorized signatories.

Records must be retained for the period set by the regulator (commonly at least six years) and be produced on request during an audit or investigation.

A licensee who receives money for a client must deposit it into trust promptly, within the time limit set by regulation, and issue a receipt.

Dual agency, undisclosed referral fees, and personal purchases from a client are conflicts of interest that require written disclosure and, where required, consent.

Commission is earned under the management agreement; the agreement should state the fee basis, the term, and the conditions for early termination.

Gross operating income = potential gross rent + other income − vacancy and credit loss; effective gross income subtracts collection losses only.

Net operating income (NOI) = effective gross income − operating expenses; it excludes debt service, capital expenditures, income tax, and depreciation.

Capitalization rate = NOI ÷ property value; value = NOI ÷ cap rate. Cap rate rises when risk or required return rises.

Operating expense ratio = operating expenses ÷ effective gross income; a lower ratio indicates stronger operational efficiency.

Cash-on-cash return = annual pre-tax cash flow ÷ total cash invested; it measures return on equity actually deployed.

Debt service coverage ratio (DSCR) = NOI ÷ annual debt service; lenders commonly require a minimum DSCR, often 1.20 or higher.

Vacancy and credit loss allowance is estimated from market vacancy rate plus a collection-loss factor, not from a single month's experience.

Reserve for replacement is funded from operations and treated as an operating expense in underwriting, separate from capital improvements.

A tenancy agreement may be oral or written; where a standard-form written agreement is required by regulation, the landlord must prepare it within the prescribed time after the tenant signs.

Rent may be increased only once in any 12-month period, and only by the maximum annual amount set by the government, unless the unit is exempt from rent control.

A rent increase requires written notice served in the prescribed form and minimum notice period (commonly three full months) before the effective date.

Security deposits are capped at one half of one month's rent where rent is paid monthly; a separate pet damage deposit may also be capped at one half month's rent.

A landlord must return the deposit, with interest where required, within the prescribed period after the tenancy ends, or file a claim to retain part of it.

Entry by the landlord generally requires written notice of at least 24 hours, between 8 a.m. and 9 p.m., unless an emergency or the tenant consents.

Ending a tenancy for cause requires the prescribed form and notice period; a notice that omits required content or is served improperly can be found invalid.

Dispute resolution is filed with the residential tenancy branch; monetary orders are enforceable as court judgments, and time limits apply to claims.

Fair housing and human rights rules prohibit refusing applicants or setting different terms based on protected grounds such as race, religion, family status, or disability.

Advertised rent, unit size, and amenities must match the actual unit; a materially misleading advertisement can support a complaint or a claim of misrepresentation.

Screening criteria must be applied consistently to every applicant and documented; criteria applied only after the fact create discrimination risk.

A tenant selection decision should rest on objective, verifiable factors: income-to-rent ratio, rental history, references, and credit or background checks permitted by law.

Income-to-rent ratio screens commonly require gross monthly income of about three times the monthly rent; the ratio must be disclosed in advance.

A move-in condition inspection must be completed and signed by both parties, and the signed report is the baseline for assessing damage at move-out.

Routine maintenance requests should be logged with date received, action taken, and completion date; the log supports defence of habitability claims.

Renewal and retention decisions should be made before the fixed term expires so notice periods and rent-increase timing are not missed.

Security deposits and rents held for owners or tenants are trust funds; they must be kept in a designated trust account at a recognized financial institution.

Trust accounts must be reconciled monthly: bank statement balance is reconciled to the trust ledger, and the reconciliation is documented and retained.

Each tenancy or owner has an individual trust ledger; the sum of all individual ledger balances must equal the trust bank balance at all times.

Trust funds must not be commingled with the brokerage's operating funds or with the licensee's personal funds, and trust cheques require authorized signatories.

Records must be retained for the period set by the regulator (commonly at least six years) and be produced on request during an audit or investigation.

A licensee who receives money for a client must deposit it into trust promptly, within the time limit set by regulation, and issue a receipt.

Dual agency, undisclosed referral fees, and personal purchases from a client are conflicts of interest that require written disclosure and, where required, consent.

Commission is earned under the management agreement; the agreement should state the fee basis, the term, and the conditions for early termination.