London
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Ottawa
Hamilton
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Waterloo
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Bill 132: Terminating lease on 28-days’ notice
The legislation opens landlords to potential liability even as it aims to help abused tenants. The Ontario government has amended the Residential Tenancies Act to permit tenants who are experiencing domestic or sexual abuse or sexual harassment to break their leases on short notice. However, landlords who fail to thoroughly familiarize themselves with the legislation could accidentally expose victims of abuse to further violence – and incur hefty fines for themselves. Bill 132, which takes effect in September, permits certain tenants to terminate monthly or fixed-term leases on only 28 days’ notice, allowing the tenancy to end at any time during the month. That’s a significant reduction from the current 60 days’ notice that must be given before the end of a fixed or monthly rental period. Joe Hoffer, a lawyer who specializes in residential tenancy law for landlords, says there may be no way of determining whether a tenant’s claim of abuse is genuine. Notices can be based on court orders; however, such orders are not required and tenants who give notice need only provide their landlord with a statement asserting a belief that the tenant or the tenant’s child may be at risk of harm as a result of “an act… omission… or threatened act or omission” that caused the tenant or the tenant’s child to fear for his or her safety. The statement does not need to describe the details of the abuse or identify the abuser. The landlord, the Landlord and Tenant Board, and the Ministry’s Enforcement Unit cannot challenge the statement until after the tenant has vacated the unit. Secrecy requirement: The legislation’s secrecy requirement poses the greatest difficulty for landlords, Hoffer notes. For example, if a tenant gives a 28-day notice but then decides not to vacate on day 28, the notice is void and the tenancy continues. In fact, there is no
limit on the number of times the 28-day notice may be given. Hoffer says that in cases of spousal abuse, it is common enough for a tenant to seek refuge temporarily, but then to return to the abusive environment within a matter of weeks. Clearly, this has the potential to lead to more than one 28-day notice being received from the same tenant; however, the extent that this will happen can only be accurately assessed after the legislation has been in effect for a period of time. Although the landlord and superintendent can advertise the potential availability of a unit, they can’t disclose any details about it or allow prospective tenants to see it. If the unit is part of a duplex, for example, the risk is high that the abuser will discover his or her partner is leaving and the landlord will be blamed. As a practical matter, the unit can’t even be listed until after the 28th day specified in the notice of termination, which would be a significant financial loss for a small landlord. If a breach of secrecy occurs, the maximum fines are $25,000 for individual landlords and $100,000 for corporations. And if the fleeing tenant is injured in retaliation for attempting to leave when the abuser discovers the plan, “the landlord is likely to be hit with the high end of the fine because it’s so serious,” says Hoffer. Even if the victim leaves on day 28, in a joint tenancy the superintendent will have difficulty verifying the tenant’s departure short of knocking on the abuser’s door. If the superintendent asks if the victim has moved out, and the victim is still there, the abuser could learn of the plan, endangering the victim and creating liability problems for the superintendent and the landlord. “The civil liability aspect is a concern,” says Hoffer. Joint tenancies: If two tenants are on a lease jointly and one gives a 28-day notice and vacates, the remaining tenant may leave on 60 days’ notice, starting on the day the notice is given, instead of 60 days before the end of a rental period.
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“When it’s mid-month, it makes it that much more difficult for the landlord to rent the unit,” says Hoffer. It’s also common for students to want to break their leases, which they can do now by citing fears for their safety to terminate their interest in the tenancy. If all the roommates left, it would be difficult for the landlord to re-rent the unit partway through the school year. Unauthorized occupant application: In another situation, suppose a tenant allows a partner to move in, but the relationship deteriorates to the point of abuse and the tenant gives the 28-day notice. Hoffer advises landlords to bring an unauthorized occupant application to clarify the status of the person who is left behind. However, that can’t be done until after 28 days have passed and the tenant on the lease has actually moved out.
“Events like the golf tournament make a huge difference,” says Gerry Dearing, Director of Philanthropy, Merrymount Family Support and Crisis Centre.“And it’s a wonderful opportunity for us to help people learn more about what we do.”
The London charity gives hope to families during times of crisis and transition.
“All of those things lead to very real financial consequences for landlords that the landlord is left to deal with,” says Hoffer. Training staff: Landlords should begin training their staff now, ensuring that every staff member attends the sessions and that the training becomes part of the orientation for new employees. According to Hoffer, the most severe consequences of inadequate training won’t be for large landlords. “They’ll be for small landlords who don’t have rigorous training in place and who can’t afford to absorb the financial consequences of the short notice period, the inability to list the unit, the uncertainty until day 28 as to whether the tenancy has even been terminated. Those are the ones who will experience the most serious financial losses from this Bill,” adds Hoffer.
LPMA golf tournament supports children’s Residential/Respite Program at Merrymount When members hit the links for the 13th annual LPMA golf tournament in September, they will be helping to provide a safe haven for children who can’t stay at home due to family turmoil. Funds raised from the tournament will benefit the Crisis Residential/Respite Program at Merrymount Family Support and Crisis Centre.
Founded as an orphanage in 1874, the centre offers a wide range of resources and programs that support families through challenging times. It is the only centre in Canada to offer emergency overnight shelter for children whose parents are in crisis. Brenda Trineer, LPMA golf tournament chair, was moved by what she saw when she toured the centre earlier this year. “When you think about someone who is homeless, you don’t think of a child, but there can be circumstances that make it impossible for a child to live at home,” says Trineer. “This year’s golf tournament is a great opportunity for us to support these young children who, through no fault of their own, find themselves in these difficult situations.” Last year’s event raised $20,000 for St. Paul’s Social Services. In 2015, Merrymount’s Crisis Residential/Respite Program provided
London Property Management Association (LPMA) is a non-profit organization, located in London, Ontario, Canada, that provides information and education to landlords. LPMA represents the interests of both large and small property owners. The association has more than 400 landlord members representing approximately 35,000 rental units.
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Membership is open to landlords and property management professionals who own or manage one or more residential rental units. Sign up online www.LPMA.ca, or call Brenda Davidson at 519-672-6999 for more information.
a temporary home away from home to 2,300 children from birth to age 13. Of the centre’s 18 residential beds, only four are supported through government funding. Each bed costs between $70,000 and $80,000 a year to keep open. Ailene Wittstein, Merrymount’s executive director, says children come to the program for many different reasons. Parents could be struggling with mental health challenges, addiction, a tumultuous separation or an unexpected illness. If they don’t have friends or family who can help care for their offspring during these difficult times, parents can turn to Merrymount. “We have children who are brought here in the middle of the night by an ambulance when their parent has been hospitalized,” Wittstein notes. The average overnight stay is three or four nights. During their stay, children receive around-the-clock professional care and participate in group programs designed to help them improve their coping strategies, build resiliency and social skills, and increase their sense of safety and well being. “We also taxi them to school and back, so they don’t miss a beat while they are with us,” says Wittstein. “Kids are smart. They understand that something has gone wrong at home.” Many are mature beyond their years and care for younger siblings when their parents struggle to cope. “It takes time for a lot of our little ones to become a child again when they come here and to realize that someone else is taking care of their parents and that their parents are okay,” says Wittstein.
President’s message... To be a landlord in Ontario is to stay educated. Bill 132, an amendment to the Residential Tenancies Act (RTA), takes effect in September. It permits tenants who are experiencing domestic or sexual abuse or sexual harassment to terminate monthly or fixed-term leases on only 28-days’ notice, allowing the tenancy to end at any time during the month. Currently, tenants must give 60 days’ notice before the end of a fixed or monthly rental period. Experts predict the legislation’s secrecy requirement will pose the greatest difficulty for landlords. To help landlords prepare for the amendments to the RTA and to the Occupational Health and Safety Act, LPMA is holding a seminar on June 17 in London. Lawyer Joe Hoffer will discuss the changes and their impact on landlords. Limited space is available. Please join us for our annual LPMA Charity Golf Tournament on September 12 at FireRock Golf Club in Komoka. Registration opens June 1 and costs $160 per golfer. Various sponsorship opportunities, ranging in price from $250 to $1500, are available. Be sure to register early because the tournament, which will benefit Merrymount Family Support and Crisis Centre, sells out quickly.
The golf tournament takes place September 12 at FireRock Golf Club in Komoka. Online registration opens June 1st at www.lpma.ca/calendar and Trineer encourages members to sign up early to avoid disappointment.
— Shirley Criger, Property Manager Gateway Property Managament Corporation
Register for both the seminar and golf tournament at www.lpma.ca/calendar
Hassle-Free Laundry Rooms For more information, contact us today! 1.877.755.5302 ■ info@coinamatic.com ■ www.coinamatic.com
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Is “affordable housing” affordable?
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he latest buzzword being tossed around to describe a solution to the current housing shortage we are facing in Hamilton is “affordable housing.” This phrase seems to give a solution in the very definition of the wording. We need housing, and we need it to be affordable. Simply saying that we are looking into affordable housing makes us feel good that we are making the right choice regardless of how we make housing affordable or what the longterm ramifications might be. To make a decision on how to create affordable housing, it is important to look at the ongoing cost of providing housing, the tenant’s income and the price of new construction. New, “purpose-built” construction that is either subsidized or built by the government makes a portion of the new building affordable to lower income tenants. Either the government directly pays the developer to have lower rents or the government builds and maintains the rentals as subsidized housing. The recent announcement by the provincial government regarding inclusionary zoning allows the city to require developers to set aside a percentage of their new units for lower income households. To make this feasible, the cost will be spread over to other residents’ rent. Some of the suggested cost reductions to the government for new construction have involved implementing a reduction of property tax, using government-owned land or creating interest-free bonds. While it has been calculated that the cost to the government (and tax payers) for straight grants would be $150,000, the better option would be the low-interest bond proposal, which could reduce the cost to $72,000 per unit or less. Either way, these types of subsidies would be for the units in the building or for the construction itself and not attached to the person who needs the subsidy. Any new construction will eventually become old and need repair. How will subsidies given out now cover the cost in 25 years? Many examples of long-term consequences of subsidized housing already exist in Hamilton. How many problems has city housing faced with its older buildings? Much of Canada's social housing was built with
subsidies in place for the length of the mortgage, often 30 years. The theory at that time was that the projects would be able to sustain themselves once the mortgage was paid off. These subsidies are now expiring and the mortgages are paid off, but the ongoing costs and the capital needs are such that the projects are unsustainable and the government is being asked for more funds. A recognized social housing failure is Regent Park; it was built in the 1960s, but it was so poorly designed and maintained that it needed to be torn down. The government projects we subsidize now could have the same issues down the road. Hamilton needs to increase density and make housing affordable at the same time. It has been stated in the Strong Communities through Affordable Housing Act, 2011, that municipalities are required to authorize second units in detached, semi-detached and row houses, as well as in ancillary structures. Hamilton needs to stop the roadblocks that inhibit the creation of secondary units and start using current stock better by bringing them into compliance, thereby opening up many affordable units.
Why not combine the use of our current stock of secondary units with new construction by the private sector, rent at market rents and create portable shelter subsidies for the tenant? This method would allow renters to choose to upgrade to a better apartment, causing the more affordable older units to become available. It costs less to subsidize a person in an older unit with a market rent of $800 than in a new unit with a market rent of $1,500 or more. With portable shelter subsidies, tenants can move wherever there are job opportunities and not be limited to where they can find a subsidized unit. It can take years for new housing to be built, but shelter subsidies could be implemented within weeks. If we let the private sector run the risks of building and maintaining a rental apartment, then the taxpayer is not the one left holding the bill if things go wrong. The simplest solution would be to increase the income of low wage tenants, which would allow them to afford rent and require fewer housing subsidies. Every decision about “affordable rental housing� needs to consider affordability now and in the future, not just for the tenant but also for the taxpayer.
Hamilton and District Landlords Since 1960, the Hamilton and District Apartment Association has grown significantly. Our member landlords and property managers manage in excess of 30,000 units throughout Hamilton, Burlington, Brantford, Guelph, Mississauga, Oakville, St. Catharines and into the Niagara Peninsula. The association is a highly respected organization, sought out regularly by government, industry, media and the public. To join, submit the application form available at www.hamiltonapartmentassociation.ca, or contact HDAA at 289-208-5445. 5 0 | j un e 20 1 6
President’s message... HDAA has been getting a lot of publicity lately. I was on Hamilton News Radio AM900 CHML talking about the impact of licencing. CBC News has written a few articles about HDAA’s involvement in the City of Hamilton’s rental housing sub-committee, and The Hamilton Spectator published our latest article on affordable housing. I feel that our association is gaining momentum as a voice for landlords in the industry. We have been asked to participate in many discussion groups and to send in feedback on various industry-related issues. Please follow our lead and get involved by contacting the Ministry of Municipal Affairs and Housing with your feedback on their changes to the RTA consultation paper as shown below.
Help make changes to the RTA by Thursday, June 30 Ontario recently announced details of the update to its Long-Term Affordable Housing Strategy (LTAHS). The updated strategy recognizes the critical role that the private sector, including private landlords, play in providing a wide range and mix of housing. In this respect, the strategy proposes a range of initiatives to encourage greater participation from the private sector in the development of affordable housing. As part of these initiatives, changes to the Residential Tenancies Act, 2016 (RTA) are being explored to encourage small landlords to participate in the rental housing market, while maintaining strong protections for tenants. — Arun Pathak
A consultation paper highlighting the changes they are exploring has been posted on the Government of Ontario website. http://www.mah.gov.on.ca/Page14836.aspx. Please send in your written feedback and responses on the discussion questions included throughout the consultation paper by: Email: residential.tenancies@ontario.ca Mail: Residential and Commercial Tenancies Unit Housing Policy Branch Ministry of Municipal Affairs and Housing 777 Bay Street, 14th Floor Toronto, ON M5G 2E5
UPCOMING EVENTS June 14, 2016 The golf tournament is going to be another fun event. We are expecting a large turnout and some amazing prizes, including the players’ favourite: a wine cellar prize!
September 14, 2016 We are holding a dinner meeting. Horizon Utilities will talk about the latest incentive programs for landlords to save money.
Look for more exciting events for 2016 Dinner at a winery and an information morning on AODA compliance so that your staff will be ready for the 2017 deadline.
ACE
GROUP OF COMPANIES www.acegroupgta.ca rentalhousingbusiness.ca | 51
Ottawa city council protects tenants and landlords from undue tax increases
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n May 11, Ottawa City Council again protected tenants and landlords from property tax increases due to the assessment shift between multi-residential properties and single family homes in the current assessment cycle. On average, rental properties will pay the same tax increase as single family homes, namely the 1.5 per cent City budget increase. If City Council had not made that change, landlords and tenants would have paid an extra $2.5 million in property taxes in 2016. The multi-residential tax ratio now stands at 1.425 (down from last year’s 1.47). Ottawa landlords should expect their 2016 property taxes to be similar to last year. If a building had a small tax increase last year, it will likely have a small increase this year. If a building had an automatic tax-driven rent reduction last year, it will likely have one this year. For decades, multi-residential properties (and residential tenants) across Ontario have been taxed at significantly higher property tax rates than single family homes (and homeowners). In Ottawa, tenants currently pay municipal property taxes at a rate 42.5 per cent higher than the rate that homeowners pay, because the multi-residential tax ratio is set at 1.425. This disparity is unfair on its face, and numerous studies across Canada have found such disparities to be unjustified. In most other Ontario cities, the tax disparity is worse. However, in most provinces across Canada, landlords and tenants pay the same property tax rate as homeowners. Ontario recognized that the fair rate for tenants is the same as the rate for homeowners when it set the education property rate at the same rate for both. Ontario also set the target for municipalities at a nearly equal tax rate when it set the band of fairness for the multi-residential tax ratio at between 1.0 and 1.1. (The Federation of Rental-housing Providers of Ontario was instrumental in both of those reforms.) Next year will be the first year of a new four-year assessment cycle in Ontario, determining property taxes for 2017 through 2020. We do not yet know how this will affect multi-residential taxes in Ottawa. If the Municipal Property Assessment Corporation (MPAC) continues to show multi-residential values as increasing faster than residential
properties, we hope that the City will stay the course, providing consistent, manageable reductions in the tax ratio. But if MPAC shows multi-residential values not keeping up with residential increases, then EOLO will need to lobby hard to maintain the gains that we have achieved in the multi-residential tax ratio.
City of Ottawa water rate update In the last issue of RHB Magazine’s Regional Association Voice, EOLO reported in detail on the City of Ottawa’s moves to reform the way it charges for water, sewers and storm drainage. For many years, the City funded all three services entirely from charges based on the volume of water a property has consumed. Tenants and landlords of large buildings did reasonably well under that system because of many landlords’ water conservation measures. However, the City is moving to a system with a charge for storm drainage, and a fixed charge for water and sewer, as well as a volumetric rate, which could undo the benefit of those conservation measures. While EOLO wants to avoid cost increases on residential rental buildings, EOLO’s main arguments need to be about making sure that the new system is fair between homeowners and residential tenants. Water costs are costs of operating rental buildings, and as such, those costs are ultimately borne by the residential tenants through their rents (or sometimes directly). Tenants use water in the same way as homeowners. Therefore, the City should treat the multi-residential sector the same way it treats homeowners. It should not lump the multi-residential sector in with the Institutional-Commercial-Industrial (ICI) sector, as the City is sometimes inclined to do. In the water rate review, the most contentious issue has turned out to be charges for storm water drainage. Due to the objections from rural residents, Councillors sent the City staff away to bring forward more options. (In land mass, Ottawa is 90 per cent rural. In area, Ottawa is one of the largest municipalities in the world.)
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EOLO will be monitoring the situation to make sure nothing detrimental to landlords (and tenants) is advanced over the summer when few people are watching. We expect that the water charge reforms will be brought back in fall 2016, if they are not abandoned because of objections from rural residents.
Ontario considers landlord-friendly changes to the RTA The Government of Ontario is consulting on potential reforms to the Residential Tenancies Act (RTA). Possible reforms include: • Revising the guideline rent increase formula (Part II) • Allowing landlords to claim utility arrears at the Landlord and Tenant Board (LTB) (Part I, section 1.1)
Landlords and others can provide input to the government or to their MPPs. You can help make these reforms happen! See the end of the article for how to do that.
Revising the guideline formula
• Allowing landlords to claim rent arrears and damage claims at the LTB for up to 12 months after a tenancy has ended (section 1.2) • Allowing easier enforcement of no-smoking provisions and no-pet rules (sections 3.1 and 3.2) • Changing the process for appealing decisions of the LTB to the Divisional Court (section 2.3) The section numbers indicate where each item is found in the discussion paper.
The motivation for the reforms The motivation for the possible reforms is “to encourage small landlords and private homeowners to participate in the rental housing market, while maintaining strong protections for tenants.” The purpose is “to help increase the supply of affordable rental housing options, and choices available to low-to-moderate income tenants.” The government has finally realized that Ontario’s supposedly tenantfriendly legislation is also off-putting to landlords. In many ways, the current RTA is overly friendly to tenants who behave improperly. As a result, it is not friendly to tenants who pay their rent on time and who do not disturb their neighbours. However, if these reforms are adopted, the balance will move in favour of landlords and responsible tenants.
Unlike in the other areas, the discussion paper lacks specifics about what the guideline review might produce. The Federation of Rentalhousing Providers of Ontario (FRPO) will address the guideline review. FRPO members should watch for information. Members of other associations should watch for information from them. Industry groups are almost always more successful at getting positive change if virtually all the input their members give the government is very similar. One key change is likely to be a request that the current 2.5 per cent cap on the guideline be removed. That cap could be devastating to landlords if inflation were to take off again for any reason.
Allowing landlords to make more claims at the LTB Allowing landlords to claim utility arrears at the LTB would be a very positive step. At the moment, such claims must be made in Small Claims Court, and enforcement cannot include termination of the tenancy. Landlords also have to go to Small Claims Court for any claims they want to make after the tenancy is terminated. That is more onerous than using the LTB, and sometimes results in a hearing of some issues at the LTB and a hearing about other issues at Small Claims Court. That wastes time and creates difficulties in enforcement. Another positive proposal is to allow the LTB to make orders for damages based on a mediated agreement that has not been complied with.
BECOME AN EOLO MEMBER NOW! EOLO invites Ottawa area landlords to join the organization. Have your interests and concerns heard, and benefit from EOLO’s support. As an EOLO member, you will: • Receive prompt email notification of relevant City rule changes • Be able to attend two networking receptions each year • Be able to attend two free education events each year 5 4 | j un e 20 1 6
• Receive EOLO’s newsletter with more information about new issues and developments at the City and in provincial funding programs and landlord-tenant laws. To apply for membership, go to www.eolo.ca, download the membership application form and send it to us at the contact info on that website.
Appeals to Divisional Court The consultation paper notes that landlord organizations claim that some tenants abuse their appeal rights, and the accompanying stay provisions, to remain in their units without paying rent for an extended period of time after the LTB has made an eviction order. In recent years and in multiple court decisions, numerous Superior Court judges have noted the unfairness caused by those abuses of the appeal process. Removing the automatic stay on appeal would be a very positive step for landlords. It would also help responsible tenants because eviction orders are often made against tenants for disturbing neighbouring tenants, and the irresponsible tenant continues to disturb the responsible tenants for months during an appeal.
Allowing the enforcement of no-smoking and no-pet rules The current RTA makes no-pet rules void. To stop a tenant from keeping a pet, the landlord needs to show that the pet is inherently dangerous, has seriously interfered with the reasonable enjoyment of other tenants or the landlords, or has caused a serious allergic reaction. The proposal is to allow the owners of small buildings who live in the building to enforce a no-pet rule. Arguably that does not go far enough because the health or enjoyment of other tenants can be threatened by animals in a building of any size. As well, some employees are allergic to various animals, and they should be entitled to a safe workplace. Similar issues apply to smoking, especially since it is more clear that second-hand smoke is a menace to people’s health, as well as being unpleasant to many people.
Opposition by tenant advocates Many tenant advocates are up in arms about the proposed reforms, alleging that they will take away tenants’ rights. In many ways, the proposed reforms would help tenants who pay their rent on time and who do not disturb their neighbours. Common experience notes many
people who have ceased to be residential landlords in Ontario because the current legal rules are slanted against them and responsible tenants, in favour of the few tenants who do not pay their rent, damage rental units or disturb their neighbours. That has reduced the rental supply, and means all tenants pay more rent than they would need to pay if the rules were more evenly balanced.
Making your views known Ontario landlords and others can access the full consultation paper at http://www.mah.gov.on.ca/Page14837.aspx. For a PDF of the paper, go to http://www.mah.gov.on.ca/AssetFactory.aspx?did=14811. The consultation paper includes 28 questions. However, Ontario landlords and others can make their views known by referring to the section number of the item they want to comment on. The government originally wanted comments by April 26, but they extended it to June 30. Even after June 30, it is well worthwhile for landlords and others to make their views known, both to the Ministry of Municipal Affairs and Housing and to your MPP. These issues may be debated for some considerable time. — By David Lyman, EOLO Vice-President
Help make these changes happen! Send your comments by mail to: Residential and Commercial Tenancies Unit Housing Policy Branch Ministry of Municipal Affairs and Housing 777 Bay Street, 14th Floor, Toronto, ON M5G 2E5 or email to: residential.tenancies@ontario.ca.
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Impact of light rail transit in the Kitchener-Waterloo area
representing hundreds of millions of dollars of investment. Projects such as 1 Victoria, Midtown Lofts, Kings Crossing, redevelopment of the former Brick Brewery and Canada Post sites, and the Drewlo block are only a few examples of properties that were purchased/developed with LRT ridership in mind. Many of these residential developments have been bolstered by the big move by office tenants back downtown such as Manulife, Deloitte, Google, etc., that also want to be close to effective transit to attract the best employees. The suburbs are also experiencing many new developments that are directly focused on LRT proximity including the redevelopment of the former NCR lands and the Laurel Springs property at Northfield and Weber, the bold repositioning plans for the former BlackBerry real estate by the Waterloo Innovation Network at Phillip and Columbia, the entire University node and the Schneider’s site. These areas will continue to undergo major transformation well after the first train rolls through.
D
riving anywhere in Kitchener and Waterloo right now is a less than pleasant experience. The cities are wounded with numerous construction sites along the ION Light Rail Transit (LRT) route, causing major traffic disruption at all hours. Every day seems to present a new adventure trying to navigate detours and street closures. The unending construction paired with lost revenue from business affected by construction makes it hard to believe that the LRT will ever benefit the cities, let alone the Region as a whole. What is not in plain sight is the continuing strong demand from developers, users, residents and investors who have already taken a position, or are looking to take a position, within one of the 19 station areas along the 19 kilometre Phase I route. Long before the Region of Waterloo Council approved the project in 2011, these stakeholders started to eye this part of the market as they bought into a vision that the landscape around LRT would change as we know it. There are 3,864 rental units and 2,808 condominium units currently under construction or in the planning stages along the LRT line,
What many people don’t see today through all the construction and the big budget is the project isn’t as much about this generation; it’s more of an investment into our future. This forward thinking will help position Kitchener-Waterloo as a world-class city and pave the way for a new generation that is driving less and looking for smaller spaces in which to live. The resident of the future cares less about the dream of the white picket fence and more about living and working in a transitoriented environment full of culture, amenities, accessibility and high quality of life. But what does it all mean for residential landlords? We see the potential for landlords within a reasonable distance to stations to enjoy a premium for the rent once the system is in place. That premium is difficult to quantify at this point, but with increased
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Highlights from T
he industry presenters at WRAMA’s May 2016 meeting included Enercare Commercial Services and Molok North America. Enercare, represented by Scott Beneteau (General Manager) and Dylan Morrow (Energy Management Consultant), provided information and case studies on geoexchange, also known as geothermal energy. Molok’s Mark Hillis, Vice-President of Business Development, provided information on their garbage containment system.
demand should come better rent, lower vacancy and greater liquidity. All of that said, with the projects in the pipeline, prudent landlords in station areas need to keep their eye on the market. How will absorption of new product impact demand for nearby older product? How many condo units will compete with traditional rental stock? Where will rents stabilize? Today, we are observing a wide spread on rents between older rental stock to new purpose rental. This spread can be as much as $1,000/month for a two-bed unit! While it might be difficult to visualize through the clouds of construction dust and pylons, behind the scenes there are major projects in the works that will fundamentally change the KitchenerWaterloo real estate market as a direct result of LRT. Landlords in close proximity to stations should take time to understand how their real estate fits into the big picture and uncover what opportunities they have to drive value and stay competitive. — By James Craig, CBRE Limited (101 Frederick Street, Kitchener)
Scott provided a brief outline of his company’s HVAC services including water heating, boilers, air make-up units and roof top units. Although more common in Europe, the number of geoexchange systems has increased by over 11 times since 1996, and currently there are more than 100,000 systems in Canada. In an urban setting, the technology involves drilling vertically down into the ground and installing a grout-encased PVC tube. Going down in the order of 60 metres, the heat exchange fluid travels down and then back up through the tube. During the winter, the relatively warm ground transfers heat to the system, allowing extracted heat to warm a building. During the summer, the reverse occurs and heat from a building is removed by transferring it to the ground. In a rural setting, a cheaper horizontal system may be used. Scott noted that in combination with co-generation, the system can provide up to 80 per cent of a building’s heating and cooling needs. In a co-generation system (or combined heat and power), waste heat from a back-up or dedicated electrical generating system (often gas fired) can be used to provide additional heating. The geoexchange system
Discover the benefits of being a member of our association: The mission of the Waterloo Regional Apartment Management Association is to actively and positively develop and sustain the integrity of its members’ business – the provision of private residential rental accommodation – in Waterloo, Kitchener, Cambridge, Guelph and surrounding areas. To view the full range of valuable property management resources we offer our members, or to apply online go to http://wrama.com/, or contact WRAMA at 519-748-0703.
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the May WRAMA seminar is considered a capital intensive system and is suitable for those who take a long-term view of their investments. This, he noted, reflects our business where asset considerations have a long-term horizon. Scott provided a local example of a Kitchener condominium complex that uses solar and geoexchange to provide a near energy-neutral complex. Where is geoexchange going? Scott noted that the system has benefits including a long-term hedge against the rising cost of energy, energy security and the ability to enhance the marketability of suites. He did note some of the challenges for such systems include a high level of expertise to operate the systems and payback periods that may be longer than some private investors are willing to accept. Overall, with continually rising energy costs, alternatives such as geoexchange will be one of the options considered by managers.
bag allows the waste to drop into the collection truck. Mark showed a video of how the system works and noted the entire lifting, emptying and replacing the bag can take less than two minutes. The plastic woven bags typically last 15 years for garbage and eight to ten years for organic materials due to the denser waste. Waste removal is provided by a separate waste removal provider. Mark noted three advantages for the system, including reduced odour, greater convenience and capacity. Since the units store much of the waste in the ground where temperatures are cooler, odour generation is reduced. He noted his personal garbage system where the waste is removed approximately every nine months and still does not generate odour. Also, since a boom truck is used, the containers can be placed in convenient places for people and do not need space for truck access to lift the units. Finally, since the system uses space below the grade, the surface area needed to store waste is reduced, allowing more amenities or potential living space at a site.
Mark Hillis from Molok described their garbage containment system I as a deep containment method that was developed in Finland in the 1980s by Veikko Salli. Mr. Salli owned a number of businesses in Following the presentations, Scott and Mark responded to questions Scandinavia and, with a mechanical engineering background, he from the audience. WRAMA would like to thank our guest speakers sought to find a method to improve his waste collection. In his for their presentations and for providing valuable information to those system, a large fraction of the cylindrical waste container is set who attended the meeting. below the ground. Users simply see a shoulder-high cylinder with a domed roof and pivot lid in which the waste is placed. Secure Mark notedmaximum incentive available that there are approximately 200,000 containers worldwide with We look forward to ourand September meeting at Golf’s Steakhouse in O Disposal recycling 7,000 in Canada and 2,500 in the Waterloo Region. Kitchener where we will have our annual experts’ panel provide the E latest update on various aspects of our business including The waste is stored in a large bag that is lifted out using a specialized management, rental accommodation sales activity and the latest boom-equipped collection truck. A quick release at the bottom of the legal news.
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MultiLogic provides property owners with energy savings through turnkey energy management solutions, lowering operating costs and maximizing savings. Shane Blanchard C: 647.822.4947 O: 1.866.291.1266 sblanchard@multilogicenergy.com
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