theANNUAL Nova Scotia 2023

The provincial market perspective for the Nova Scotia rental housing industry

Welcome to the 2023 Provincial editions of theANNUAL . Not unlike our National edition, theANNUAL , is a special industry specific periodical, delivering relevant, timely information and data with a single-minded approach; “What does the Apartment industry need to know!” With that as our goal, our research team reviewed extensive data from numerous sources to bring you the regional editions of theANNUAL . From CMHC, Stats Canada, association executives, Government sources and apartment owners, managers & REITs, we bring you the most complete and thorough industry guide that delivers region specific information and data.

Produced by RHB Inc., creators of RHB Magazine, RHBTV, RHB Newsreel, Perpetual Media Group (PMG) and BoldTV in collaboration with the Canadian Federation of Apartment Associations (CFAA), theANNUAL delivers a complete market perspective for the rental housing industries of Nova Scotia and Saskatchewan.

Developing a standalone resource guide with vital and practical information is never an easy undertaking. There are reasons why in-depth, analysis and forecasting aren’t done in this form and on this scale for our industry! Time, resources and industry knowledge are required to deliver a comprehensive report respecting individual regional apartment owners and managers while allowing them to respond to market needs, size and competition.

What you’ll find in this Provincial Edition of theANNUAL:

• The State of the Industry Repor t, an in-depth look at the individual provinces’ market conditions, based on CMHC and Stats Canada data.

• Association Report, from our partners at IPOANS and SKLA, an overview of what we need to know about each province and association.

• Neighbourhood Trends, data provided by Rentals.ca on tenant searches and trends.

• Five Things You Should Know, some interesting tips and tools for managing key aspects of your buildings provided by Yardi Canada, Advantage Pest Control, McIntosh Perry, LeacShield and Guzina Law.

• The industry’s first vetted report of the Top Ten, Owners, Managers and REITs for each province.

This has been a labour of love. As Canada’s national voice for the apartment industry, RHB Inc. prides itself on always delivering the latest news and information that help our industry maintain a competitive advantage. Therefore, we’d like to acknowledge the following people and companies for their help gathering the information and data which enabled us to deliver this comprehensive guide:

Kevin Russell, Executive Director, Investment Property Owners Association of Nova Scotia (IPOANS); Cameron Choquette, CEO, Saskatchewan Landlord Association (SKLA); Rentals.ca; Enbridge; Yardi Canada, Advantage Pest Control, McIntosh Perry, LeacShield and Guzina Law.

RHB Inc accepts responsibility for accurately delivering relevant news to the rental housing industry. As well, we always want to hear from you, the people who make up the rental housing industry. Let us know your thoughts on what you’ve read and what you’d want to see next year in theANNUAL , both at the National and Provincial levels.

Publisher Nishant Rai

Associate Publisher

Debbie Dollar-Seldon

Art Director

Scott Clark

Office Manager Geeta Lokhram

Owner Marc Côté

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Opinions expressed in articles are those of the authors and do not necessarily reflect the views and opinions of the CFAA Board or management. CFAA and RHB Inc. accept no liability for information contained herein. All rights reserved. Contents may not be reproduced without the written permission from the publisher.

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All the best, Nishant Rai

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TOP 10 – 27

21 – NEIGHBOURHOOD TRENDS

5 THINGS YOU SHOULD KNOW – 37

AVR: 0.0%

2BR: $972

East Hants MD

AVR: 0.0%

2BR: $1,089

AVR: 3.8%

2BR: $837

Queens RGM

AVR: N/A

2BR: $674

Halifax AVR: 1.0%

2BR: $1,449

AVR: 1.5%

2BR: $872

1,019,725

Nova Scotia Zone Statistics

1. Lunenburg MD: AVR: N/A 2BR: N/A

2. Chester MD: AVR: N/A 2BR: N/A

3. West Hants RM: AVR: N/A: 2BR: N/A

4. Kentville: AVR: 0.9% 2BR: $855

5. Truro: AVR: 0.7% 2BR: $943

AVR= Average Vacancy Rate in October 2022

2BR= Average Rent of 2 Bedroom Suite in October 2022

3.

2.

5.

4.

1.

New Glasgow

Cape Breton

Kings, Subd. A SC

2022 population

Nova Scotia

Number of Primary Apartment Units

Bachelor 3,176

1 Bedroom 20,254

2 Bedroom 35,677

3 Bedroom + 4,501

Total 63,608

Primary Apartment Vacancy Rates

Bachelor 1.3%

1 Bedroom 1.2%

2 Bedroom 0.9%

3 Bedroom + 1.1%

Total 1.0%

Primary Apartment Average Rents

Bachelor $954

1 Bedroom $1,112

2 Bedroom $1,355

3 Bedroom + $1,657

Total $1,281

State of the Industry

Nova Scotia

Nova Scotia’s primary and secondary rental market universe totals

63,608 79,153 Total: 142,761

45% 55%

*Secondary figure estimate based on growth rate

Important things to know about Nova Scotia’s primary market:

Association Report

Association Report

Founded in 1978, the Investment Property Owners Association of Nova Scotia (IPOANS) was born out of frustration with Nova Scotia’s rent control regime implemented in 1973. Owners of rental properties believed that the provincial government was disregarding concerns that were having adverse effects on their businesses and the availability of rental properties. From this governmental apathy emerged, IPOANS, an industry association dedicated to advocating and representing Nova Scotia’s rental housing providers.

Both the government and media recognize IPOANS, with its members having 45,000 rental units under management across Nova Scotia, as the industry voice and for being the “positive voice” of rental housing providers.

2022 continued to be challenging for the industry as governments continued to implement renter protection policies that included the provincial government extending the temporary rent cap until December 31, 2025 with added legislative amendments to increase the cap from to 2% to 5% beginning January 1, 2024, and Halifax Regional Municipality implementing a mandatory landlord rental registry.

IPOANS remaining dedicated to its core principles of service: advocating for members, imparting education, and enhancing membership services continued to deliver best-in-class virtual learning, education programs and member engagement opportunities while advocating against government programs that are detrimental to members operations.

Advocacy

Advocacy assumed a heightened role in 2022 as governments continued to enact populist housing policy legislation in response to the demands of housing activists, bolstered by media reports advocating for more robust tenant protection laws.

Despite IPOANS’ research, the provincial government extended the rent cap until December

31, 2025, disregarding our recommendation for abolition. The government has also hinted at potential legislative modifications to either terminate or alter the application of fixed-term leases, a move that would adversely affect the industry.

IPOANS persists in its efforts to modernize the Residential Tenancies Act (RTA) regulations, aiming

to restore balance in Residential Tenancies Office (RTO) decisions, which appear to be increasingly tilting towards tenants. A concerning trend emerged in 2022, where RTO decisions are progressively influenced by personal interpretations of the act, rather than adhering to its established regulations. Disturbingly, RTO decisions awarded to tenants) are frequently overturned on appeal in favour of Rental Housing Providers at Nova Scotia Small Claims Court appeal hearings, as adjudicators base their judgments on RTA regulations.

IPOANS called upon the Minister overseeing the Residential Tenancies Program, urging a revision of the legislation to allow for the public dissemination of recorded hearings and RTO decisions. We believed that making these decisions public would serve as a deterrent against the RTO deviating from Act-based rulings. Unfortunately, the government has chosen to disregard our request, despite reports indicating that housing activists invite journalists to witness and record telephone hearings without facing repercussions for violating the Act.

Halifax Regional Council voted in favor of a mandatory landlord registry, requiring all RHPs – as defined under RTA as anyone who accept payment for housing accommodations, they must register their properties or face up to $10,000 in fines.

IPOANS presented arguments to both levels of government, outlining that their current housing policies would result in higher rents due to reduced rental inventory, stemming from property owners

opting to sell their rental properties. This decision is exacerbated by the fact that many small rental property owners, who possess single-family homes, duplexes, triplexes, and condominium rentals, are grappling with continual operating losses. Most are also facing mortgage renewals in 2022 and 2023.

An IPOANS survey distributed to over 400 members and non-members revealed that over 1,000 units per year for the next three years are poised for sale, negating any projected increases from new units entering the market.

Governments have disregarded research indicating that negative housing policies, such as rent control and rental registries, often lead to diminished rental housing inventory as property owners sell or repurpose their assets, causing rents to escalate higher than pre-policy levels.

Prior to rent control, Nova Scotia’s rental market enjoyed two decades of stability with annual rent increases ranging from 2% to 3.5%. By mid-2022, reports indicated that Halifax had the highest asking rents nationwide. And during the same period Halifax’s homelessness rate doubled. Despite this, governments have yet to acknowledge the link between poorly designed housing policies being responsible for the current lack of rental housing and increasing homelessness.

IPOANS remains steadfast in its unwavering advocacy, engaging directly with governments and utilizing media platforms to underscore the urgency

Association Report

of implementing housing policies that motivates RHPs to remain invested in the industry and foster greater investment in rental housing.

Education

“Managing Resident Expectations Through Education”

In collaboration with Nova Scotia Community College (NSCC), IPOANS successfully conducted its 90-hour online Residential Property Management course, leading to 18 students earning an NSCC Certificate in Professional Studies in Residential Property Management.

We collaborated with NSCC to revamp our Building Service Excellence course for a 2023 launch. The course’s curriculum is designed to empower frontline staff with enhanced customer service skills. These skills are deeply grounded in a thorough comprehension of essential operational aspects within a residential building.

Our Building Maintenance Course, that includes a hands-on workshop component providing frontline building maintenance staff with fundamental maintenance knowledge and proficiency in basic maintenance and utilizing small hand tools. It is anticipated the course will launch 2023.

Membership Services

In 2022, IPOANS witnessed a 5% rise in its membership, and both events and educational programs achieved record-high attendance levels.

Subscriptions to IPOANS’ weekly e-newsletter surpassed 1,200 subscribers, maintaining an impressive weekly open rate of 65%.

Our Virtual Town Halls, Panel Discussions, and Webinar offerings garnered an impressive registration count exceeding 150 registrations per event.

The annual IPOANS Awards Gala and Dinner drew an impressive attendance of 300 participants, while our annual golf tournament sold out with 35 competing teams. Additionally, 18-hole sponsors

had the opportunity to showcase their products and services, with 140 attendees joining us for the posttournament dinner.

The inaugural Women in Industry Luncheon was an undeniable success, attracting a gathering of 160 industry professionals. The event featured an exceptional panel of women industry leaders, including Ruth Buckle from Killam Apartment REIT, Jennifer Bateman from CAPREIT, Donna Van Luven from Skyline Living, and Jennifer Poirier from Southwest Properties.

Conclusion

Looking ahead, we foresee 2023 yet another challenging year where governments are likely to continue to overlook empirical research in favour of anecdotal evidence amplified by media reports to enact housing policies. These polices will lead to an increase in departures of small and midsize

Residential Housing Providers from the industry. This comes at a time when the demand for more rental housing is increasingly imperative to resolving Nova Scotia’s housing crisis. Nova Scotia’s most affordable rental inventory is its existing rental stock, playing a crucial role in providing quality housing for people until new supply becomes available, a prospect that is presently anticipated to be seven to ten years away.

Neighbourhood Trends

Latest information on some of Nova Scotia’s many neighbourhoods

Kings, Subd. A SC

Kentville

East Hants MD

Halifax

Neighbourhood Trends

Average Income

Data provided by Rentals.ca

Lead Submission of Prospective Tenants by Bed Count

Average Asking Rent by Bed Count

Neighbourhood Trends

Searches by

YoY% Change in Lead Volume of Prospective Tenants

VeriFast

Employment income

Identity and address

History of NSF fees

Average closing bank balance

Average monthly debt payments

Overdraft percentage

Consistent payment of rent

Consistent payment of bills and more

Reduced average time from 2 hrs to 5 mins

Cost savings up to 50% compared to a credit score

VeriFast does not leave a mark on renters credit scores

Top 10

Nova Scotia’s top ten private landlords by size

NOVA S C O T I A’ S TOP 10

Top 10 Owners, Managers & REITs

Trusted Advisors

Philip Sarvinis | Bill Gladu | Jeremy Horst | Michael Pond | Duncan Rowe Jack Albert | Beau Gaudreau | James Cooper | Tim Van Zwol | Michael Park

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5 things you should know

A Checklist for Simplifying Property Management – Page 38 –

By Yardi Canada

5 Tips to Prevent Pest Outbreaks – Page 39

– By Advantage Pest Control

5 Essential Steps to Winterize Your Building for a Cozy and Efficient Season – Page 40

By McIntosh Perry

5 Things You Should Know about Caring for your Drinking Water –Page 41

– By Leac Shield

5 Things You Should Know about the Landlord and Tenant Board – Page 42

By Guzina Law

5 things you should know

A Checklist for Simplifying Property Management

– By Yardi Canada

With interest rates on the rise again, property managers can leverage technology to reduce operational costs and increase NOI. Keep reading to discover some of the most popular software features property managers are looking for to meet the demands of the modern renter.

1 Marketing solutions that allow you to:

• Showcase available units on popular listing sites

• Provide virtual tours on custom-built property websites

• Boost your online presence with corporate websites

2 Leasing solutions that allow you to:

• Communicate with prospects and residents via CASL-compliant text and email

• Complete applications, screening, leases and renewals online

• Automate rent collection

3 Property management software that allows you to:

• See your daily, weekly and monthly task and activity calendar

• Provide secure online portals for resident services

• Track online maintenance requests in one convenient place

• Limit data access for staff based on need and security clearance

• Save time and money with comprehensive utility billing

• Win at customer service with a 24/7 maintenance call centre

• Centralize communications with prospects, residents, owners and investors

4 Owner portals that allow you to:

• Create report packets by owner or property

• Onboard multiple owners quickly

• Generate reports in seconds, saving you hours

• Guarantee accuracy and reliability

• Track investor capital commitments, contributions and distributions in one place

5 Accounting software that allows you to:

• Centralize data and reduce entry mistakes

• Simplify financial reporting

• Spend less time and money processing invoices

• Process bulk payments via cheque or pre-authorized debit

The property management solution you adopt will impact every aspect of your business, from how efficiently your team can work to your renters’ overall experience. Not sure which software is right for you? Yardi Breeze Premier can help you understand what makes for a great technology partner. Just request a personal consultation with one of our experts on Yardibreeze.ca

5 Tips to Prevent Pest Outbreaks

– By Advantage Pest Control

Pest management within the apartment industry necessitates a strategic shift from reactive to proactive measures. This editorial explores five pivotal insights that underscore the significance of a proactive approach in curbing pest outbreaks, ensuring tenant well-being, and safeguarding property value.

1 The Power

of

Proactivity:

A Preventive Paradigm Pest control must transcend mere issue reaction. A proactive stance emerges as the most effective defense against potential outbreaks. Embracing a proactive approach, such as comprehensive building inspections during new client onboarding, provides real-time insights into unit health and tenant cleanliness. This preemptive measure identifies potential ground zero units, where seemingly unsuspecting tenants might unknowingly harbor severe infestations. Swift action at these focal points can mitigate pest proliferation across the entire building, averting costly remediation and legal complexities.

2 The Hidden Threat: Hitchhiking Pests

Beyond the Envelope While bolstering the building envelope’s exterior is a logical start for pest defense, the hitchhiking tendencies of bed bugs and roaches cannot be ignored. These pests infiltrate through tenant belongings, transcending geographical and structural confines. Infested tenants relocating from other buildings may unwittingly introduce active infestations. Moreover, cross-contamination risks arise when visitors with infestations frequent units in apartment complexes or condominiums. A proactive strategy entails vigilant internal monitoring alongside external defense.

3

Elevating Prevention: Education and Tenant Engagement

In the pursuit of proactive pest management, education and tenant engagement are invaluable tools. Educating tenants on optimal hygiene, early detection, and reporting protocols empowers them in pest prevention. Consistent communication channels ensure tenants are aware of potential risks, fostering a collective commitment to pestfree living spaces.

4 Technological Advancements for Timely

Intervention Modern technology is a potent ally in proactive pest management. Integrated pest management (IPM) systems, sensor-based traps, and real-time monitoring technologies equip property managers with data for swift, targeted interventions. Leveraging these tools allows managers to detect early infestation signs and apply precise treatments before pests escalate.

5 Collaborative Partnerships: Uniting Against Pests

A proactive approach extends beyond property managers to collaboration with pest control experts. Regular consultations and partnerships with seasoned pest management professionals enhance prevention strategies. Their insights, combined with property-specific data, facilitate tailored action plans that address vulnerabilities and potential infestations before they gain momentum.

In the dynamic apartment pest management landscape, a proactive approach emerges as the foundation for effective control. Embracing these five insights—making proactivity a prevention strategy, acknowledging hitchhiking pest threats, tenant education, technological integration, and fostering collaborative partnerships—property managers can elevate their pest management practices. This shift not only guards against costly infestations and legal entanglements but also nurtures a healthier, more robust living environment for Canadian apartment industry residents.

Conclusion: Fostering Resilience Through Proactive Pest Management

5 things you should know

5 Essential Steps to Winterize Your Building for a Cozy and Efficient Season

– By McIntosh Perry

As winter approaches, it is vitally important to prepare your home for the challenges that cold weather brings. Proper winterization keeps indoor environments comfortable and saves energy. Those savings can help offset some of the likely inflationary cost pressure to come this season. Here are five essential steps to prepare your building for the winter months with colder daily and seasonal temperature changes:

1 Insulation and Weather Stripping: One of the most effective ways to keep your building warm and energy-efficient during winter is by ensuring proper insulation. Investing in high-quality insulation can significantly reduce heating costs and improve overall comfort. Check for gaps and cracks in the building envelope, especially around windows, doors, and in the attic. Seal these openings with weather stripping or caulking to reduce heat loss and cold drafts.

2 HVAC System Maintenance: Your heating, ventilation, and air conditioning (HVAC) system plays a critical role in maintaining a comfortable indoor temperature during winter. Schedule a professional HVAC inspection before the cold season to ensure that your system is operating efficiently. Clean or replace air filters, check thermostat settings, and address any issues promptly. Properly maintained HVAC systems not only save energy but also extend their lifespan.

3 Roof and Gutter Maintenance:

Inspecting and maintaining your roof and gutters is an important first step to preventing water damage and ice dams during winter. Check for loose or damaged shingles and repair them promptly. Clean gutters and downspouts to ensure proper drainage and prevent ice buildup. Consider installing gutter guards to minimize debris accumulation. A well-maintained roof and gutter system help prevent costly winterrelated repairs.

4 Pipe Insulation and Freeze Prevention: Frozen pipes can lead to significant damage and inconvenience. To prevent this, insulate exposed pipes in unheated areas, such as basements, crawlspaces, and attics. Additionally, consider letting faucets drip during extremely cold nights to keep water flowing and prevent freezing. Installing pipe insulation and practicing freeze-prevention measures can save you from potential disasters.

5 Emergency Preparedness: Lastly, prepare your building for emergencies that can arise during severe winter weather. Stock up on emergency supplies, including flashlights, batteries, blankets, and non-perishable food items. Install smoke and carbon monoxide detectors, ensuring they have fresh batteries. Create an emergency evacuation plan and communicate it to all building occupants. Being prepared can make a significant difference in keeping everyone safe during winter storms or power outages.

Properly preparing your building for winter involves a combination of insulation, maintenance, and planning. By following these five essential steps, you can ensure a cozy and energy-efficient environment throughout the cold season while minimizing the risk of costly repairs and emergencies. Remember that early preparation is key to a smooth and comfortable winter in your home.

5 Things You Should Know about Caring for your Drinking Water

– By Leac Shield

1 Drinking Water Supply

When you turn on the tap for a glass of water, your water has already traveled through numerous pipes. These pipes may be copper, steel, plastic, or even lead. Over time, flowing water erodes and corrodes these pipes, leading to pinhole leaks and the release of materials like copper, zinc, lead, and plastic into your drinking water, posing health risks due to high concentrations. How can we address this issue?

2 LEaC Shield: Pipe Protection

Introducing LEaC Shield—a solution using a Sodium Silicate mineral formula to prevent leaks. It forms a protective thin film inside pipes, achieving two key objectives: shielding pipes from corrosion, extending their lifespan, and significantly reducing copper and metal concentrations, ensuring the safety of your drinking water.

3 Sodium Silicate: Environmentally Friendly

Let’s explore the eco-friendly marvel of Sodium Silicate. Comprising 60% of our Earth’s crust, silica, the primary mineral in most rocks, naturally occurs in water without harm to humans or the environment. Health Canada recognizes Sodium Silicate as an “Approved Food Additive,” endorsed for use in organic foods by the Food & Agricultural Organization of the United Nations. Esteemed organizations like the National Sanitation Foundation (NSF), the United States Environmental Protection Agency (US EPA), the US Center for Disease Control (CDC), and the World Health Organization (WHO) recommend Sodium Silicate for water treatment. Beyond water, Sodium Silicates find applications in food preservation, topical anti-aging products, cosmetics, and toothpaste, where they safeguard tooth enamel.

4 Phosphates: Cautionary Use

Phosphates, approved for treating drinking water pipes, require careful handling. Their use mandates tiny quantities, continuous monitoring, and thorough removal from wastewater, particularly building sewer pipes. Excessive phosphates in freshwater and wastewater trigger algae overgrowth, depleting oxygen levels and harming aquatic life. The Center for Biological Diversity labels phosphates as “a serious threat to the natural environment.” Furthermore, phosphates promote biofilm growth within drinking water pipes, potentially increasing harmful pathogens. If used, systematic removal is essential. Additionally, phosphates, as corrosive acids, dissolve the protective calcium scale inside pipes, releasing copper, zinc, or lead into your drinking water, posing risks to occupants.

5 Environmental Impact of Sodium Silicates

Sodium Silicates emerge as the safe and environmentally friendly choice for treating drinking water pipes. Silicates, mild bases, have no adverse environmental impact. Silica used in water treatment mirrors natural silica, essential for microorganisms and plants’ health and life, whether in water or soil.

In conclusion, safeguarding your drinking water supply is essential, and solutions like LEaC Shield, utilizing Sodium Silicate, offer ecofriendly ways to protect your pipes and ensure the purity and safety of your water.

5 things you should know

5 Things You Should Know about the Landlord and Tenant Board

–

By Guzina Law

1 What is the Landlord and Tenant Board? The Landlord and Tenant Board (LTB) is an adjudicative tribunal and forms a part of the administrative state and is not a part of the ordinary courts. The LTB was created by the Residential Tenancies Act, 2006 (RTA) on January 31, 2007. The RTA gives residential landlords and tenants rights and responsibilities and sets out a process for enforcing them. The role of the LTB is to resolve disputes between landlords and tenants through mediation or adjudication and provide information to landlords and tenants about their rights and responsibilities under the RTA.

2 Exclusive Jurisdiction – The LTB has exclusive jurisdiction to hear all residential tenancy disputes under the RTA. This means that the only way to obtain orders for compliance, eviction, etc. is through the LTB. The only exception is where a monetary claim exceeds $35,000.00, in which case an application may be made to the Superior Court of Justice.

3 Adjudicative Qualifications – There are no tribunal specific qualifications for LTB Members. The Adjudicative Tribunals Accountability, Governance and Appointments Act, 2009, requires the selection process for the appointment of a member to an adjudicative tribunal to be competitive, merit-based and to apply the following criteria: Experience, knowledge or training in the subject matter and legal issues dealt with by the tribunal; aptitude for impartial adjudication; aptitude for applying alternative adjudicative practices and procedures that may be set out in the tribunal’s rules.

4 Eviction Process – Nearly all eviction proceedings start with a Notice of Termination, and all require an application to the LTB to obtain an eviction order. A Notice of Termination must comply fully with all technical requirements as set out in the RTA, or they are void. The Courts have held that a Notice of Termination that does not comply with mandatory content requirements is void and cannot be amended

5 Review and Appeal Process – Any party may request a review of or appeal an LTB order. A review of an order is conducted internally by the LTB. For a review to be successful, the LTB member must find that there is a serious error in the order, an error in the procedure, or that a party was not reasonably able to participate in the hearing. An appeal of an LTB order is made to the Divisional Court. For an appeal to be successful, the Divisional Court must find that there was an error of Law.

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