Vancouver company in hot water over missing rental payments
The BC Financial Services Authority (BCFSA) has frozen the rental trust accounts of Vancouver-based brokerage Rent It Furnished Inc. (RIF) and suspended its license.
The regulator has issued an urgent order to freeze RIF’s accounts and suspend its license due to RIF's repeated failure to provide compliant financial records over the past year.
According to BCFSA’s documents, the brokerage was unable to identify and track specific amounts held in trust for its clients or determine how much money its clients were owed. Without these reconciliations, it is challenging to determine if the funds are managed correctly.
“The decision to freeze the accounts of this brokerage was not taken lightly,” said Jon Vandall, vice president of compliance and enforcement at BCFSA. “The brokerage’s monthly trust accounts were not reconciled in accordance with the August 2023 consent order and have remained deficient.”
The trust accounts are used to disburse rental payments from tenants to landlord clients of RIF, primarily in the Metro Vancouver area. The BCFSA said that tenancy agreements are not affected by this order, and tenants should continue paying rent according to their agreements.
Landlords, however, will not have access to rental payments deposited into the frozen accounts and are encouraged to set up alternative payment arrangements.
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BCFSA’s move followed an August 2023 consent order where RIF and its managing broker admitted to professional misconduct, including failing to identify and rectify account shortages and not notifying BCFSA of negative balances in a timely manner. The brokerage was fined $17,000 and ordered to pay $1,500 in enforcement expenses.
If RIF complies with the necessary regulations, BCFSA may lift the freeze. If not, BCFSA can request the BC Supreme Court appoint a receiver to manage the accounts and distribute payments to landlords.
Landlords are advised that the funds in the frozen accounts will be preserved for the appropriate beneficiaries. They should update their rental payment arrangements to ensure future payments are received. Tenants are instructed to continue paying rent as usual, and landlords cannot evict tenants for non-payment of rent or deposit if it was paid to RIF.
“We acknowledge the serious impact this may have on landlords and tenants. A freeze order is the best mechanism to protect trust funds and address the accounting deficiencies of the brokerage,” Vandall said. “We must take action to protect the interests of consumers and the integrity of the sector.”
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