BC PST on Property Management Fees?
Short answer: most residential property owners will not be impacted by the 7% PST on management fees that starts on October 1st, 2026.
The BC Budget 2026 announced a significant change to how Provincial Sales Tax (PST) is applied to professional services, including property management fees.
At Birds Nest Properties, many of our clients have been asking: “Will I see a 7% increase in my management fees this year?” Here is the essential breakdown of the new rules and how they affect your specific investment properties.
What is Changing?
Beginning on October 1st, 2026, the BC government will expand the 7% PST to include several professional services that were previously exempt.
According to the government’s Notice 2026-001, this includes accounting, engineering, and non-residential real estate services.
How This Affects Your Portfolio
The impact of this tax depends entirely on the classification of your property.
1. Residential Rental Properties (Exempt)
If you own a standard residential rental such as a detached home, a condo, or a townhome, your property management fees remain PST-exempt. The new legislation specifically targets “non-residential” services. Because Birds Nest Properties is primarily a residential property management company, the vast majority of our owner clients will see no change in the taxes applied to our management fees.
2. Commercial Properties (Taxable)
For owners of commercial real estate (e.g., retail spaces, offices, or industrial units), however, the landscape is changing. Effective October 1, 2026, the professional fees you pay for rental property management and strata management will be subject to the 7% PST.
3. Mixed-Use Buildings
If you own a “mixed-use” property, which is typically a building with commercial storefronts on the ground floor and residential units above, the tax will likely be applied proportionally.
-
- Fees for managing the residential units remain exempt/li>
- Fees for the commercial units will become taxable.
Frequently asked questions
Based on current provincial guidance, no. The PST expansion effective October 1, 2026 targets commercial and non-residential real estate services. Residential property management is currently classified as a residential real estate service and is not included.
The expansion applies to non-residential and commercial real estate services, along with services like accounting and engineering. For a mixed-use property, only the portion of the fee tied to the commercial unit would be affected.
October 1, 2026. Final regulations from the Ministry of Finance are still awaited to confirm the details for mixed-use properties.
Birds Nest Properties specializes exclusively in long-term residential tenancies and does not manage Airbnb or short-term vacation rentals. Short-term and commercial arrangements are where PST questions are more likely to arise.