spacerSauder School of Business Logo University of British Columbia Logo

Opening Worlds

THE UNIVERSITY OF BRITISH COLUMBIA

Real Estate Division

Rental Property Management Licensing Course Manual

Table of Contents

UBC Real Estate Division. 2017. Rental Property Management Licensing Course Manual. Vancouver, BC: UBC Real Estate Division.

Preface: Introduction to Real Estate

Land Ownership
Land Value
Elements of the Real Estate Market
Characteristics of Real Property
Historic Origins of Property Management
Development of Property Management as a Profession
The Complexity of Property Management
The Objectives of Property Management
Key Relationships in Property Management
Types of Residential Property
The Demand for Residential Rental Property
Why Do People Rent Accommodation?
Factors to Consider in the Tenancy Agreement
Responsibilities of the Property Manager

Chapter 1: Fundamentals of Law

The Sources of Our Laws
Categories Within Our Legal System
Real Property Law
The Judicial System in Practice: The British Columbia Court System

Chapter 2: The Real Estate Services Act

Requirements for Licensing
The Licensing Body – The Real Estate Council
The Office of the Superintendent of Real Estate
Real Estate Foundation, Errors and Omissions Insurance Corporation and Compensation Fund Corporation
Other Real Estate Related Organizations
Licensing System
Licensee Conduct
Additional Responsibilities of a Brokerage
Discipline and Enforcement
The Real Estate Development Marketing Act

Chapter 3: Professional Ethics

Why Study Professional Ethics?
Professionalism
What are Professional Ethics?
Duty to Uphold the Law
Duty to Client in Providing Rental Property Management Services
Pecuniary Relations with Clients
Duty to the Profession
Enforcement
Appendix 3.1: Code of Conduct of the Professional Association of Managing Agents

Chapter 4: What the Purchaser Buys: Estates and Interests in Land

The Evolution of Real Property Law and the Doctrine of Estates
Fee Simple Estate
Life Estate and Estate Pur Autre Vie
Leasehold Estates
Interests in Land Less Than Estates
The Extent of “Ownership” in Land
Co-Ownership of Land

Chapter 5: The Subdivision of Land and Title Registration in British Columbia

Who owns the land?
How is Land Divided?
How a Strata Development is Created
Types of Strata Property
Title Registration in British Columbia
The Torrens System of Land Registration
Land Title Offices, Searching Title, and the Registration Process
First Nations Land Registration
Contaminated Sites Registry
Manufactured Homes
Appendix 5.1: Sample Excerpts From Strata Plans: Sample Strata Plan

Chapter 6: Strata Properties (Condominiums) and Cooperative in British Columbia

The Strata Corporation
How a Strata Corporation is Governed
Finances
Bylaws and Rules
Legal Proceedings
Strata Titles Compared with Cooperative Corporations
Appendix 6.1: Sample Excerpts From Strata Plans
Appendix 6.2: Strata Property Act Form B – Information Certificate
Appendix 6.3: Strata Property Act Form F – Certificate of Payment
Appendix 6.4: Strata Property Act Form J – Rental Disclosure Statement
Appendix 6.5: Strata Property Act Form K – Notice of Tenant’s Responsiblities

Chapter 7: The Professional Liability of Real Estate Licensees

Common Grounds of Liability Against Licensees
Negligence
Misrepresentations and Deceit
Errors in Drafting Agreements
Breach of Fiduciary Duty
Statutory and Industry Liability
What is the Bottom Line?
Introduction to Tort Law
Trespass
Private Nuisance
Liability of an Occupier
The Role of the Competition Act
Canada’s Anti-Spam Legislation

Chapter 8: The Law of Contract

Void, Illegal, Voidable and Unenforceable Contracts
Offer
Acceptance
Consideration
Legal Intention
Capacity
Legal Object
Genuine Consent
Termination of a Contract
Remedies
The Requirement of Writing

Chapter 9: Law of Agency

Agent’s Appointment and Authority
The Common Law Duties of the Agent to the Principal
The Duties of the Principal to the Agent
Relationship Between the Agent and the Third Party
The Management Agreement
Appendix 9.1: Sample Management Agreement

Chapter 10: Residential Tenancies

The Residential Tenancy Branch (“RTB”)
Residential Tenancy Law
Appendix 10.1: Stages of Tenancy

Chapter 11: Effective Negotiations, Alternative Dispute Resolution, and Resolving Residential Tenancy Disputes

The Nature of Effective Negotiations
Negotiation Approaches
When Negotiations Fail
Resolving Residential Tenancy Disputes

Chapter 12: Commercial Tenancies: Introduction

Introduction to Commercial Tenancies
Other Important Legal Concepts
Types of Commercial Property
Special Use Properties and Leases
Commercial Tenant Selection
Tenant’s Criteria

Chapter 13: Commercial Tenancies: The Commercial Lease

Negotiation of Lease Terms
Overview of the Life of a Lease
Essential Terms of a Lease
Other Important Lease Terms
Miscellaneous/General Lease Provisions
Proper Execution of a Lease
Special Topics
Appendix 13.1: Sample Office Lease
Appendix 13.2: Sample Estoppel Certificate

Chapter 14: Human Rights Law

Purpose
Rental Property Management
Human Rights Complaints

Chapter 15: Protection of Personal Information

Personal Information
Collecting Personal Information
Using Personal Information
Disclosing Personal Information
Disposing of Personal Information
Privacy Complaints
Privacy Policies and Privacy Officers

Chapter 16: Market Research and Marketing

Market Research Analysis
The Marketing Concept
Market Segmentation and the Selection of Target Markets
The Marketing Concept and Consumer Needs
Developing an Integrated Marketing Program
Developing an Integrated Promotional Plan
The Promotional Mix
The Communication Process
The Marketing Plan
Know Your Product

Chapter 17: Financial Statements

Forms of Organization
Importance of Financial Reporting
Generally Accepted Accounting Principles (GAAP)
Financial Statements
Income Tax Return
Analyzing Financial Statements

Chapter 18: Operational Budgets, Capital Budgets, and Accounting

The Operating Budget
The Capital Budget
The Monthly Operating Statement
Appendix 18.1: Tenant Roll Form
Appendix 18.2: Tenant Arrears Report Form
Appendix 18.3: Example of Tenant Ledger

Chapter 19: Local Government Law

The Three Levels of Government
The Rationale for the Regulatory System
The Planning Process
Official Community Plans
Rural Land Use Bylaws
Zoning
Non-Conforming Uses and the Board of Variance
Subdivision
Building Bylaws and Inspection
Licensing Bylaws
Appendix 19.1: Site Profiles and Development Screening under the Environmental Management Act

Chapter 20: Taxes on Real Property

Who Pays the Real Property Tax?
The Tax Base: What is Taxed?
Basis of Assessment: What “Value” is Taxed?
The Tax Rates
Administrative Procedures
Exemptions and Reliefs
Assessment Appeals
Appendix 20.1: Notice of Assessment
Appendix 20.2: Property Tax Notice

Chapter 21: Introduction to Real Estate Appraisal

Purpose of Appraisal
Licensing Requirements for Appraisers
Subject of an Appraisal
Nature of Value
Variations in Sale Prices
Definitions of Market Value
Legal Considerations for Appraisers
Overview of the Appraisal Process
Step 1: Defining the Appraisal Problem
Step 2: Scope of Work Determination
Step 3: Data Collection
Step 4: Data Analysis
Step 5: Selection of the Appropriate Appraisal Approach
Step 6: Reconciliation of Value Indications and Final Opinion of Value
Step 7: Communicate Findings
Looking Ahead – Innovations in Property Valuation

Chapter 22: Building Design and Construction

Considerations in Multi-Family Property Construction
Multi-Family Dwelling Substructure Design and Construction
Multi-Family Dwelling Superstructure Design and Construction
Building Systems: HVAC, Plumbing, Electrical, and Elevators
Building Finishes
Site and Unit Layout: Functional Considerations
Green Housing: Energy Efficiency and Sustainable Real Estate

Chapter 23: Controls, Maintenance, and Energy Conservation

Accounting – Income and Expenses
Leasing
Maintenance and Repairs
Janitorial Services
Security
Assessment and Taxation
Tenant Relations
Administration
Taking Over a Property
Building Maintenance and Repairs
Preventive Maintenance
Corrective Maintenance
Routine Maintenance
Deferred Maintenance
Keeping Operating Expenses to a Minimum
Development of an Operations Manual
Fire Prevention Systems and Equipment
Energy Conservation
Electrical Terminology
Energy Flows
The Building Audit
Planning Energy Conservation
Appendix 23.1: Lease Summary Form
Appendix 23.2: Sample Offer to Lease
Appendix 23.3: Leasing Progress Report
Appendix 23.4: Landlord-Tenant Work Schedule
Appendix 23.5: Institute of Real Estate Management: Office Building Inspection Report – Exterior
Appendix 23.6: Institute of Real Estate Management: Office Building Inspection Report – Interior
Appendix 23.7: Sample Daily Maintenance Log Form
Appendix 23.8: Sample Mechanical Preventive Maintenance Control Sheet
Appendix 23.9: Sample Daily Maintenance Log

Chapter 24: Security, Safety, Environmental Protection, and Hazardous Materials

Developing a Security and Safety Program
Planning
Fire Prevention
Disaster Precautions
Building Security
Security Personnel
Security Rights and Wrongs
Liaison with Public Safety Officials
Environmental Law and Real Estate
Persons Who May be Liable
Federal and Provincial Statutes Relating to the Environment
Environmental Audits – What to Look For
Workplace Hazardous Materials and Products
BC Regulations
Appendix 24.1: Bomb Threat Checklist
Appendix 24.2: Earthquake Preparedness – Before, During, and After
Appendix 24.3: Sample Questions for a Pre-Bid Questionnaire
Appendix 24.4: Topics to Cover in Bid Specifications

Chapter 25: Purchasing

Strategic Procurement
Deciding How To Purchase
The Laws of Sole Source
The Laws of Competitive Bidding
Controlling Risk
Competition or Sole Source?
Developing Purchasing Policies and Documents
Competitive Bidding – The Purchasing Documents

Chapter 26: Personnel Management

Introduction to Personnel Management
Job Analysis
Personnel Selection

Chapter 27: Insurance and Risk Management

Key Insurance Terminology
Types of Insurance
Property Insurance Evaluation
Tenant’s Insurance
How the Insurance Policy “Fits” Together
Preventing Insurance Claims: What Is “Risk Management”?
Reporting Insurance Claims
The Role of Risk Management in Litigation
Settlement of Claims
Appendix 27.1: Warehouse Lease Extract
Appendix 27.2: Third Party Personal Injury and Property Damage Report
Appendix 27.3: Insured Property Damage Report
Appendix 27.4: Final Release

Glossary

Index