Information for Landlord and Tenant Clients Regarding an Order in Urgent Circumstances to Rent It Furnished Inc., dba Rent it Furnished Realty (“RIF”)

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BCFSA issued an Urgent Order on July 25, 2024, to freeze the rental trust accounts of Vancouver-based brokerage, RIF, and to suspend its licence.

The order is one of a series of escalating actions taken by BCFSA due to RIF being unable to produce reconciled rental trust accounts over the last year, as required under the Real Estate Services Act (“RESA”). Without complete and accurate reconciliations, trust accounts cannot be assessed to determine if funds are handled correctly in accordance with RESA. RIF was unable to identify and track specific amounts held in trust for its clients, or how much money its clients were owed.

Landlord clients of RIF and their tenants may be wondering how this impacts them. BCFSA has the following information:

For Landlord ClientsPermanent link to this section

I am a landlord client of RIF. Will I still receive my rental payments from RIF?Permanent link to this section

The accounts that disburse the rental payments have been frozen, and no payments can be made until BCFSA varies the freeze order.

Money in the frozen accounts will be preserved for the appropriate beneficiaries. Landlords may wish to update their rental payment arrangements, according to the terms of their tenancy agreement to ensure they receive future rental payments. This may include working with a licensed rental property management brokerage to establish alternate payment arrangements.

We understand this is a difficult situation, and landlord clients with concerns about their obligations under their tenancy agreements, including forms of rent payment, returning security deposits, and adjudicating disputes, can find information on the Residential Tenancy Branch website or contact BCFSA at [email protected] with questions regarding the Urgent Order.

Landlords are not permitted to evict a tenant for non-payment of rent or non-payment of deposit if it was paid to RIF as per the tenancy agreement.

For TenantsPermanent link to this section

Does the Urgent Order impact my tenancy agreement?Permanent link to this section

No, there are no impacts to tenancy agreements as a result of the Urgent Order.

I am a tenant of a RIF landlord client. Will I still be able to pay my rent?Permanent link to this section

Representatives of the Residential Tenancy Branch advise that tenants should continue to pay rent according to the terms of their tenancy agreement. If tenants hear from their landlord, landlords should ensure they can prove to the tenant they are the landlord/property owner. Landlords are not permitted to evict a tenant for non-payment of rent or non-payment of deposit if it was paid to RIF as per the tenancy agreement.

We understand this is a difficult situation. Tenants with concerns about their obligations under their tenancy agreements, including forms of rent payment, returning security deposits, and adjudicating disputes, can find information on the Residential Tenancy Branch website.

The Residential Tenancy Branch is responsible for adjudicating disputes between tenants and landlords and may be contacted for answers to questions you have about continuing rent payment, and other obligations under your tenancy agreement. In accordance with the Real Estate Services Act, BCFSA does not regulate the actions of tenants.

Why Did This Happen?Permanent link to this section

BCFSA holds rental brokerages to high professional and regulatory standards, and expects them to remain compliant with the Real Estate Services Act.

As the regulator, BCFSA’s role includes ensuring that the proper controls and accounting are in place to protect consumers whose deposits are held in trust. We do this by conducting inspections and working with brokerages and licensees to ensure compliance.

RIF was found to have committed professional misconduct between February 2017 and September 2020 and was subject to a Consent Order from August 22, 2023. RIF has been non-compliant with the terms of the August 2023 Consent Order, which required it to provide monthly reconciliations of its trust accounts. All reconciliations have been deficient, which led to the rental trust accounts being frozen.