Property Management Agreement (Canada)
This Property Management Agreement (the "Agreement") is entered into as of [Start Date] by and between:
[Owner Name], with an address at [Owner Address], [Owner City], [Owner Province] [Owner Postal Code] (the "Owner"); and
[Manager Name], with offices at [Manager Address], [Manager City], [Manager Province] [Manager Postal Code], licence number [Manager Licence] (the "Manager"),
with respect to the [Property Type] property located at [Property Address], [Property City], [Property Province] [Property Postal Code], comprising [Number of Units] unit(s) (the "Property"). The Owner and the Manager are hereinafter collectively referred to as the "Parties" and individually as a "Party."
1. APPOINTMENT AND AUTHORITY
1.1 The Owner hereby appoints the Manager as the exclusive managing agent for the Property, and the Manager hereby accepts such appointment. The Manager is authorized to act on behalf of the Owner in all matters relating to the day-to-day management, operation, and maintenance of the Property, subject to the terms and limitations set forth in this Agreement.
1.2 The Manager shall act as an independent contractor and not as an employee or agent of the Owner for any purpose other than the management of the Property. Nothing in this Agreement shall be construed as creating a partnership, joint venture, or employment relationship between the Parties.
1.3 The Manager represents and warrants that it holds all licences and registrations required by the applicable provincial real estate or property management regulatory body (including, where applicable, BCFSA in British Columbia, RECO in Ontario, or RECA in Alberta) and shall maintain such licences throughout the term of this Agreement.
2. MANAGEMENT FEE AND COMPENSATION
2.1 As compensation for the services rendered under this Agreement, the Owner shall pay the Manager a management fee of [Management Fee] ([Fee Type]), calculated and payable monthly in Canadian dollars (CAD). The management fee shall be deducted from collected rental income prior to disbursement to the Owner.
2.2 In the event that rental income is insufficient to cover the management fee, the Owner shall pay the balance directly to the Manager within fifteen (15) days of receiving an invoice.
2.3 The management fee is subject to the applicable Goods and Services Tax (GST) or Harmonized Sales Tax (HST) under the Excise Tax Act (R.S.C., 1985, c. E-15). The Manager shall provide the Owner with a GST/HST-compliant invoice for all fees charged.
2.4 The Manager shall not be entitled to any additional compensation unless expressly agreed to in writing by the Owner.
3. TERM AND TERMINATION
3.1 This Agreement shall commence on [Start Date] and shall continue for a term of [Term Length], unless earlier terminated as provided herein.
3.2 Either Party may terminate this Agreement by providing at least [Termination Notice Days] days' written notice to the other Party.
3.3 Upon termination, the Manager shall promptly deliver to the Owner all funds (including trust account balances), records, documents, keys, and other property belonging to the Owner or relating to the Property. The Manager shall provide a final accounting of all income and expenses within thirty (30) days of the termination date.
3.4 Termination of this Agreement shall not affect any rights or obligations that have accrued prior to the date of termination, including the Manager's right to receive fees for services rendered prior to termination.
4. MANAGER'S DUTIES AND RESPONSIBILITIES
4.1 The Manager shall perform the following duties in connection with the management of the Property: [Manager Duties]. In addition, the Manager shall:
(a) Use commercially reasonable efforts to maintain the Property in good condition and repair, and to keep it in a tenantable state at all times in compliance with applicable provincial property standards and building codes;
(b) Market vacant units, screen prospective tenants in accordance with applicable human rights legislation (including the Canadian Human Rights Act and provincial human rights codes), execute lease agreements on behalf of the Owner that comply with the applicable provincial Residential Tenancy Act, and manage tenant relations;
(c) Collect all rents and other charges due from tenants in a timely manner and take appropriate action for non-payment or lease violations in accordance with the applicable provincial Residential Tenancy Act;
(d) Arrange for and supervise all necessary repairs, maintenance, and improvements to the Property, provided that any single expenditure exceeding CAD $[Repair Threshold] shall require the Owner's prior written approval, except in the case of emergency repairs necessary to protect the Property or the safety of tenants;
(e) Maintain accurate and complete financial records of all income and expenses related to the Property and provide the Owner with monthly financial statements;
(f) Issue proper receipts for all rent payments and maintain records sufficient for the Owner's annual income tax filing with the Canada Revenue Agency (CRA).
5. SECURITY DEPOSITS AND TRUST ACCOUNTS
5.1 All tenant security deposits shall be held by the [Deposit Handling] in accordance with the requirements of the applicable provincial Residential Tenancy Act. The Manager shall comply with all statutory requirements regarding the collection, holding, interest payment (where required), and return of security deposits.
5.2 The Manager shall maintain a separate trust account for all funds collected on behalf of the Owner, including rent payments and security deposits. Trust account funds shall not be commingled with the Manager's own funds.
5.3 In provinces where security deposits are prohibited or restricted (such as Ontario, where only a last month's rent deposit is permitted), the Manager shall comply with the applicable statutory limitations.
6. PRIVACY AND PERSONAL INFORMATION
6.1 The Manager shall collect, use, and disclose personal information of tenants and prospective tenants only in accordance with the Personal Information Protection and Electronic Documents Act (PIPEDA) and any applicable provincial privacy legislation (including the Personal Information Protection Act in British Columbia and Alberta, and the Act respecting the protection of personal information in the private sector in Quebec).
6.2 The Manager shall implement appropriate safeguards to protect personal information against unauthorized access, disclosure, copying, use, or modification, and shall promptly notify the Owner of any privacy breach involving tenant personal information.
6.3 The Manager shall obtain appropriate consent from tenants for the collection and use of their personal information and shall provide tenants with access to their personal information upon request, as required by applicable privacy legislation.
7. FINANCIAL REPORTING AND RECORDS
7.1 The Manager shall provide the Owner with a written monthly report detailing all income received, expenses paid, and the current financial status of the Property.
7.2 The Manager shall maintain all financial records for a minimum of six (6) years as required by the Canada Revenue Agency (CRA) for income tax purposes.
7.3 The Owner shall have the right to inspect and audit all records and accounts maintained by the Manager at any reasonable time upon reasonable notice.
7.4 The Manager shall provide the Owner with an annual summary of income and expenses suitable for filing with the CRA, including any applicable T4A slips if required.
8. LIABILITY AND INDEMNIFICATION
8.1 The Manager shall perform all duties under this Agreement with reasonable care, diligence, and in compliance with all applicable federal, provincial, and municipal laws, regulations, and by-laws.
8.2 The Owner shall indemnify, defend, and hold harmless the Manager from any claims, damages, or liabilities arising out of the Manager's good-faith management of the Property, except to the extent caused by the Manager's negligence, wilful misconduct, or breach of this Agreement.
8.3 The Manager shall indemnify, defend, and hold harmless the Owner from any claims, damages, or liabilities arising out of the Manager's negligence, wilful misconduct, or failure to comply with applicable legislation in the performance of its duties under this Agreement.
9. NOTICES
9.1 All notices required or permitted under this Agreement shall be in writing and shall be deemed delivered when: (a) personally delivered; (b) sent by registered mail or courier service; or (c) sent by email with confirmation of receipt, to the following addresses:
Owner: [Owner Name], [Owner Address], [Owner City], [Owner Province] [Owner Postal Code], Email: [Owner Email], Phone: [Owner Phone]
Manager: [Manager Name], [Manager Address], [Manager City], [Manager Province] [Manager Postal Code], Email: [Manager Email], Phone: [Manager Phone]
10. GOVERNING LAW
10.1 This Agreement shall be governed by and construed in accordance with the laws of the Province of [Governing Province] and the federal laws of Canada applicable therein.
10.2 The Manager shall comply with all applicable provincial residential tenancy legislation, including but not limited to the Residential Tenancies Act, 2006 (Ontario), the Residential Tenancy Act (British Columbia), the Residential Tenancies Act (Alberta), or the Civil Code of Québec, as applicable to the Province in which the Property is located.
10.3 Any disputes arising under this Agreement shall be subject to the exclusive jurisdiction of the courts of the Province of [Governing Province].
11. SEVERABILITY
11.1 If any provision of this Agreement is held to be invalid, illegal, or unenforceable by a court or tribunal of competent jurisdiction, the remaining provisions shall continue in full force and effect.
12. ENTIRE AGREEMENT
12.1 This Agreement constitutes the entire agreement between the Parties with respect to the management of the Property and supersedes all prior negotiations, representations, and agreements, whether oral or written. No modification or amendment to this Agreement shall be effective unless made in writing and signed by both Parties.
IN WITNESS WHEREOF, the Parties have executed this Property Management Agreement as of the date first written above.
PROPERTY OWNER:
Name: [Owner Name]
Date: [Owner Sign Date]
PROPERTY MANAGER:
Name: [Manager Name]
Licence: [Manager Licence]
Date: [Manager Sign Date]
Party 1
________________
Signature
Date: ________________
Party 2
________________
Signature
Date: ________________
What Is a Property Management Agreement (Canada)?
A Property Management Agreement in Canada engages a manager to operate a property and sets the manager’s authority, duties, and fees, governed primarily by provincial real estate and contract law.
Property management in Canada is regulated at the provincial level, with licensing requirements varying significantly across jurisdictions. In British Columbia, property managers must be licensed through the BC Financial Services Authority (BCFSA) under the Real Estate Services Act (S.B.C. 2004, c. 42). Ontario requires property managers who trade in real estate to register with the Real Estate Council of Ontario (RECO) under the Trust in Real Estate Services Act, 2002. Alberta mandates licensing through the Real Estate Council of Alberta (RECA) under the Real Estate Act (R.S.A. 2000, c. R-5). Saskatchewan, Manitoba, and the Atlantic provinces have their own regulatory frameworks, while some provinces do not require specific licensing for property management activities that do not involve trading in real estate.
A critical legal obligation is the handling of trust funds. Most provinces require property managers to deposit tenant security deposits, rent payments, and other funds held on behalf of the owner into a designated trust account separate from the manager's operating accounts. Commingling trust funds with personal or business funds is a regulatory violation in every province with a licensing regime and can result in licence suspension or revocation.
Property managers acting on behalf of landlords must comply with provincial residential tenancy legislation — Ontario's Residential Tenancies Act, 2006, BC's Residential Tenancy Act, Alberta's Residential Tenancies Act — which governs rent increases, eviction procedures, maintenance obligations, security deposit rules, and tenant privacy. The manager must also comply with PIPEDA when collecting, using, or disclosing tenant personal information in the course of commercial property management activities.
The legal framework governing the Property Management Agreement (Canada) in Canada draws on several key statutes and regulatory bodies. Under provincial residential tenancies legislation — including Ontario's Residential Tenancies Act 2006 and British Columbia's Residential Tenancy Act (SBC 2002) — the Landlord and Tenant Board (Ontario) or Residential Tenancy Branch (BC) adjudicates disputes. The Land Title Act governs property registration through provincial land title offices. The Canada Revenue Agency (CRA) administers the non-resident property tax and GST/HST on real estate transactions. Parties executing a Property Management Agreement (Canada) in Canada should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Provincial Real Property Acts sets the foundational requirements.
When Do You Need a Property Management Agreement (Canada)?
When an individual property owner has one or more rental units and lacks the time, proximity, or expertise to handle day-to-day tenant relations, rent collection, maintenance coordination, and regulatory compliance — particularly when the owner lives in a different city or province from the rental property.
When a real estate investor acquires a multi-unit residential building (duplex, triplex, apartment complex) and needs professional management to handle tenant screening, lease administration, maintenance scheduling, and financial reporting across multiple units simultaneously.
When a condominium corporation or strata council engages a property management company to administer common elements, enforce bylaws, manage reserve funds, coordinate maintenance contractors, and handle owner communications under the applicable provincial Condominium Act or Strata Property Act.
When a property owner is renting out their principal residence temporarily — during an extended absence, work relocation, or sabbatical — and needs a manager to oversee the property, respond to tenant emergencies, and confirm compliance with the provincial residential tenancy act during the rental period.
When an estate trustee or executor manages rental property on behalf of a deceased owner's estate and requires professional property management to maintain the asset's value and rental income during the estate administration period.
Without a written property management agreement, the scope of the manager's authority is undefined, creating disputes over unauthorized expenditures, tenant concessions, or lease terms that the owner did not approve. The manager may also lack the contractual protection to recover management fees or expenses incurred on the owner's behalf.
Parties in Canada should prepare a Property Management Agreement (Canada) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under provincial residential tenancies legislation — including Ontario's Residential Tenancies Act 2006 and British Columbia's Residential Tenancy Act (SBC 2002) — the Landlord and Tenant Board (Ontario) or Residential Tenancy Branch (BC) adjudicates disputes. The Land Title Act governs property registration through provincial land title offices. The Canada Revenue Agency (CRA) administers the non-resident property tax and GST/HST on real estate transactions. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your Property Management Agreement (Canada)
Scope of Authority — A precise definition of what the manager is authorized to do: collecting rent, signing leases on behalf of the owner, screening tenants, issuing notices (N4, N12, or equivalent provincial forms), coordinating maintenance and repairs, and representing the owner before the Landlord and Tenant Board (Ontario) or equivalent provincial tribunal. Define expenditure limits above which the manager must obtain prior written approval.
Management Fee Structure — The compensation arrangement: a percentage of gross monthly rent collected (typically 5-12% in Canada), a flat monthly fee, or a combination. Specify whether the fee applies to vacant units, whether there is a leasing fee for securing new tenants (typically 50-100% of one month's rent), and whether the manager receives a markup on maintenance and repair services.
Trust Account Obligations — Requirements for depositing all rent payments and owner funds into a trust account, maintaining proper accounting records, and providing regular financial statements. Reference the applicable provincial trust account regulations (BCFSA, RECO, RECA) and the consequences of commingling funds.
Rent Collection and Arrears — Procedures for collecting rent, issuing late payment notices, applying provincial-guideline rent increases, and initiating eviction proceedings for non-payment. Specify the timeline for remitting collected rent to the owner after deducting management fees and authorized expenses.
Maintenance and Repairs — The manager's authority and obligation to maintain the property in compliance with provincial property standards, respond to emergency repairs (burst pipes, heating failures, security issues), and coordinate routine maintenance (landscaping, snow removal, common area cleaning). Set a dollar threshold for discretionary repairs requiring owner approval.
Tenant Relations and Compliance — The manager's obligation to comply with the applicable residential tenancy legislation when dealing with tenants, including proper notice periods for entry, lawful rent increase procedures, security deposit handling (noting that Ontario only allows last month's rent deposits, not security deposits), and privacy protections for tenant personal information under PIPEDA.
Insurance and Liability — Requirements for the manager to carry professional liability (errors and omissions) insurance and general liability insurance. Clarify the owner's obligation to maintain property insurance and whether the management agreement includes an indemnification clause for claims arising from the manager's authorized actions.
Term and Termination — The duration of the agreement (typically one year with automatic renewal), the notice period required for termination by either party (30 to 90 days is standard), and the transition procedures for transferring keys, tenant files, security deposits, and trust account balances to the owner or a successor manager.
Governing Law — The province whose residential tenancy legislation, real estate licensing requirements, and trust account regulations apply, and the courts or dispute resolution mechanisms with jurisdiction over disputes between the owner and manager.
Under provincial residential tenancies legislation — including Ontario's Residential Tenancies Act 2006 and British Columbia's Residential Tenancy Act (SBC 2002) — the Landlord and Tenant Board (Ontario) or Residential Tenancy Branch (BC) adjudicates disputes. The Land Title Act governs property registration through provincial land title offices. The Canada Revenue Agency (CRA) administers the non-resident property tax and GST/HST on real estate transactions. The forms-legal.com Property Management Agreement (Canada) template covers the mandatory elements under Provincial Real Property Acts.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Property Management Agreement (Canada) (Canada) [Legal document template]. Forms Legal. https://forms-legal.com/canada/real-estate/leases/property-management-agreement-canada
"Property Management Agreement (Canada) (Canada)." Forms Legal, 2026, https://forms-legal.com/canada/real-estate/leases/property-management-agreement-canada.
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title = {Property Management Agreement (Canada) (Canada)},
year = {2026},
howpublished = {\url{https://forms-legal.com/canada/real-estate/leases/property-management-agreement-canada}},
note = {Free legal document template. Based on Provincial Real Property Acts}
}Also available for these jurisdictions:
Frequently Asked Questions
Licensing varies by province: BC requires BCFSA real estate licensing, Ontario requires RECO registration for trading activities, and Alberta requires RECA licensing.
Yes, Ontario has annual rent increase guidelines, BC has annual allowable increases, and Quebec has TAL guidelines. Property managers must comply with these limits for residential properties. Under Canada law, Provincial Real Property Acts, parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under provincial residential tenancies legislation — including Ontario's Residential Tenancies Act 2006 and British Columbia's Residential Tenancy Act (SBC 2002) — the Landlord and Tenant Board (Ontario) or Residential Tenancy Branch (BC) adjudicates disputes. The Land Title Act governs property registration through provincial land title offices. Forms-legal.com provides this template as a starting point for Canada-compliant documentation.
In most provinces, security deposits and last month's rent must be held in a trust account. Ontario only allows last month's rent deposits. Interest on deposits may be required in some provinces. Under Canada law, Provincial Real Property Acts, parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under provincial residential tenancies legislation — including Ontario's Residential Tenancies Act 2006 and British Columbia's Residential Tenancy Act (SBC 2002) — the Landlord and Tenant Board (Ontario) or Residential Tenancy Branch (BC) adjudicates disputes. The Land Title Act governs property registration through provincial land title offices. Forms-legal.com provides this template as a starting point for Canada-compliant documentation.
A Property Management Agreement (Canada) does not legally require a lawyer in Canada, and individuals and businesses may draft and execute the document independently. The Provincial Real Property Acts does not mandate legal representation for the creation or signing of this type of document. However, seeking independent legal advice from a qualified Canada lawyer is recommended for transactions involving substantial financial value, complex regulatory requirements, or cross-border elements where multiple legal jurisdictions may apply. A lawyer can verify that the document complies with all applicable statutory requirements, identify potential risks specific to the transaction, and confirm that the terms adequately protect the interests of all parties involved. The Federal Court of Canada has jurisdiction over disputes arising from this type of document, and Corporations Canada may impose additional compliance obligations depending on the nature of the underlying transaction. Professional legal review is particularly advisable where the document will be submitted to government agencies or used as evidence in legal proceedings.
A Property Management Agreement (Canada) does not legally require a lawyer in Canada, though legal advice is recommended for complex transactions. Under Canadian law, individuals may draft and execute this type of document independently. The Competition Act (R.S.C. 1985, c. C-34) provides consumer protections. However, Corporations Canada, the Canada Revenue Agency (CRA), or provincial regulatory bodies may have specific requirements. For property transactions, provincial land title offices require qualified lawyers or notaries. PIPEDA and provincial privacy legislation impose obligations on parties handling personal data. Where disputes arise, provincial superior courts or the Federal Court of Canada have jurisdiction. Forms-legal.com provides this template as a starting point — always review with a qualified Canadian lawyer for significant transactions.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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