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If you manage rental properties in British Columbia, it's easy to assume that when a tenancy goes sideways, the financial risk ultimately falls on the property owner. But a recent update from the RTB should make you rethink how you handle your paperwork.
In February 2026, the RTB updated Policy Guideline 26: Advocates, Agents and Assistants. Tucked into this update is a massive wake-up call for property managers acting as agents: you can now be held personally liable for paying Section 51 compensation to tenants.
You Are the "Landlord":
Most property managers know the drill with Section 51 of the Residential Tenancy Act (RTA). If a landlord evicts a tenant claiming they need the unit for personal use, but they don't actually follow through with those plans, the tenant gets a hefty compensation payout.
Historically, this was the owner's problem but not anymore. Following a BC Supreme Court decision (0808799 B.C. v British Columbia, 2024 BCSC 1915), the rules shifted. The Court noted that the RTA’s broad definition of "landlord" includes the landlord's agent, and this broad definition strictly applies to Section 51 monetary orders. The only exception to this is provided under section 49, where the definition of “landlord” is restricted to narrow the class of landlords who can end a tenancy for their own or their close family member’s use. The Court found the meaning of “landlord” under section 51 of the RTA is not restricted to the narrow definition contained in section 49 of the RTA.
This means a tenant can bypass the owner entirely and come straight after the property manager. They are fully within their rights to do this even if they have only ever dealt with you, have never met the actual owner, or have no idea what the owner's address is.
The Red Flags:
The RTB Arbitrators aren't just going to blindly fine agents, but they are looking for specific scenarios to determine if you should be the one paying out the tenant. According to the updated Guideline, you are at high risk if:
1. You are the only person the tenants have ever interacted with.
2. Your name is the only one listed as the "landlord" on the tenancy agreement and the eviction notice.
3. You never bothered to give the tenants the actual property owner's address.
4. The property owner isn't explicitly named as a respondent in the dispute resolution paperwork.
5. You step up to defend the notice to end tenancy yourself when the tenants dispute it.
If you are ticking most of those boxes, you are practically volunteering to take on your client's financial liability.
How to Protect Your Business
You need to act in your clients' best interests, but you shouldn't be subsidizing their change of plans. The Court and the RTB have laid out a few ways agents can distance themselves from this liability. Update your standard procedures to include these protective steps:
A. Name the Owner: Ensure the property owner is officially added as a respondent to any dispute resolution application.
B. Serve the Owner: Make sure the owner is properly served with the dispute resolution materials.
C. Update Your Leases: Be transparent. Make sure your leases clearly identify the owner and provide their address so it's obvious you are just the middleman.
D. Use the "Extenuating Circumstances" Defense: If you do get dragged into a Section 51 hearing as the respondent, remember that you can argue under Section 51(3). You can try to prove that extenuating circumstances exist, which should prevent the monetary order from being slapped on you.
We can help review your standard lease agreements. Making sure that the owner's name is on the dotted line could save you thousands of dollars down the road.
