RHB December by Marc Cote

Canada’s #1, most widely read publication for Apartment Owners, Managers and Association Executives

Vol.6 No.6 December 2013 rentalhousingbusiness.ca

RENTAL HOUSING BUSINESS

A BILLION DOLLAR

SKYLINE

+ FRPO

Federation of Rental-housing Providers of Ontario

CFAA’s

The Unintended Consequences of Government Regulation

Property Assessments and the Gross Income Multiplier

Safety is the First Priority

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his issue of RHB Magazine includes an important political update in National Outlook, following page 32. As noted in the last issue, many groups are becoming active on housing issues. That includes the federal Conservative Caucus and the Federation of Canadian Municipalities.

CFAA’s Rental Housing Employee Compensation & Benefits Survey shows what building superintendents are paid in 17 different areas of Canada. The survey covers a total of 12 building –based positions and 15 head office or corporate positions. See page 33 for more details and how to order the survey for your area.

National Outlook addresses the new Conservative Housing and Construction Caucus. Included is a list of the executive members, the issues the Caucus may deal with, and quotes from some of the members of the Caucus, including Brad Butt, formerly a CFAA Director and now MP for Mississauga-Streetsville, a suburb of Toronto. Also noted are the positions of the NDP and the Liberal Party on housing issues.

This issue also includes an article on the Skyline Group of Companies, which has just passed the one billion dollar mark in assets. CFAA congratulates Skyline on its great achievement!

National Outlook also includes an article on the effect of excess home-ownership rates on unemployment rates. The U.S. National Bureau of Economic Research has found a robust and worrisome correlation between high rates of home ownership and high rates of unemployment. U.S. housing and employment research results are almost always true in Canada too.

We hope you enjoy this issue of RHB Magazine, including National Outlook. We invite you to join CFAA as a direct landlord member to help the rental housing industry deal with the rising challenges and opportunities presented by the new increase in attention to rental housing.

John Dickie John Dickie, CFAA President

CFAA has fixed the place and dates for the CFAA Rental Housing Conference 2014. We will meet at the Sheraton Vancouver - Wall Centre Hotel, with a building tour on Monday, June 9; Investment topics and an evening social event on Tuesday, June 10; and Rental Operations topics on Wednesday, June 11. We hope to see you there.

CFAA Member Associations Eastern Ontario Landlord Organization (EOLO) www.eolo.ca P: 613-235-9792

London Property Management Association (LPMA) www.lpma.ca P: 519-672-6999

Saskatchewan Rental Housing Industry Association (SRHIA) www.srhia.ca P: 306-653-7149

Federation of Rental-housing Providers of Ontario (FRPO) www.frpo.org P: 416-385-1100, 1-877-688-1960

Manufactured Home Park Owners Alliance of British Columbia (MHPOA) www.mhpo.com P: 1-877-222-4560

Waterloo Regional Apartment Management Association (WRAMA) www.wrama.com P: 519-748-0703

Greater Toronto Apartment Association (GTAA) www.gtaaonline.com P: 416-385-3435

New Brunswick Apartment Owners Association (NBAOA) www.nbaoa.myidealhome.com P: 506-640-1460

Hamilton & District Apartment Association (HDAA) www.hamiltonapartmentassociation.ca P: 289-440-3185

Professional Property Managers’ Association (of Manitoba) (PPMA) www.ppmamanitoba.com P: 204-957-1224

Investment Property Owners Association of Nova Scotia (IPOANS) www.ipoans.ns.ca P: 902-425-3572

Rental Housing Council of BC -formed from the merger of the British Columbia Apartment Owners and Managers Association and the Rental Owners and Managers Society of BC

Kingston Rental Property Owners Association (KRPOA) www.kingstonrentals.com P: 613-572-7276

Vancouver Office (formerly BCAOMA) www.bcaoma.com P: 604.733.9440, 1-877-700-9440 Victoria Office (formerly ROMS BC) www.romsbc.com P: 250-382-6324, 1-888-330-6707

The Canadian Federation of Apartment Associations represents the owners and managers of close to one million residential rental suites in Canada, through 13 apartment associations and direct landlord memberships across Canada. CFAA is the sole national organization representing the interests of Canada’s $480 billion rental housing industry. For more information about CFAA itself, see www.cfaa-fcapi.org or telephone 613-235-0101

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Editor’s Note

y now, US Thanksgiving (and Black Friday) has come and gone, and you will have heard about the rampaging crowds of deal-seeking American consumers. Canadian retailers got in on the action this year, and consumers north of the border are mimicking their southern neighbours’ outrageous behaviour (such as camping out front of stores days in advance). I like a good deal as much as the next person, but it’s not worth the long lines and crowds just to save some money on an LCD TV or tablet computer. And as I read online recently, “Paying $600 for a $1,000 TV does not mean that you saved $400 – it means that you just spent $600.” This month’s issue profiles the Skyline Group of Companies. After buying their first student rental property just 20 years ago, they now own and manage more than 10,000 units and have reached $1 billion in value. The Skyline Apartment REIT is the seventh largest owner and manager of multi-residential properties in Canada. And with the addition of the Skyline Commercial REIT, there are no limits on where this company could go. We have a feature on the Federation of Rental-housing Providers of Ontario (FRPO), which is the largest apartment association in English-speaking Canada. We spoke with Mike Chopowick, interim President and CEO, to learn more about what FRPO is doing for its members and the rental housing industry. We also have an interesting article on the unintended consequences of government regulation with respect to the rental housing industry. It discusses the impact of rent control and the eviction process on landlords and tenants across Canada, so make sure that you give it a read. In case you were unaware, RHB Magazine is the exclusive media partner for FRPO’s 2013 MAC Awards Gala, which is being held on December 5 in Toronto. The Right Honourable Jean Chretien is guest speaker, so it is going to be a huge event. And to add to the evening’s festivities, RHB Magazine is also the official media for The Byng Group Holiday Cocktail Party, which takes place right after the FRPO Awards Gala. This is the must-attend event of the show!

Vol. 6 No. 6 CO-FOUNDER, DIRECTOR

Juan Malvestitti juan@rentalhousingbusiness.ca

CO-FOUNDER, PUBLISHER

Marc L. Côté marc@rentalhousingbusiness.ca

EDITORIAL

David Gargaro david@rentalhousingbusiness.ca

CONTRIBUTING EDITOR

John Dickie, President CFAA jdickie@rentalhousingbusiness.ca

DESIGN

Thomas Calvert

PHOTOGRAPHY Trina Koster

OFFICE MANAGER Kayla Clark

SUBSCRIPTIONS Canada: One year $27.00 Elsewhere: $39.00 Single copy sales: Canada $9.00 Elsewhere: $12.00 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 written permission from the publisher.

P.O. Box 696 Maple, ON, L6A 1S7 416.236.7473 www.rentalhousingbusiness.ca

Our website has a new service called RHB Newsreel, which features industry headlines, market updates and the latest trends. Visit www.rentalhousingbusiness.ca to stay connected to what is going on in your industry. Make sure to read the other great articles in this month’s issue, and don’t forget to check out CFAA’s newsletter, National Outlook. Enjoy the magazine!

David Gargaro To view the online edition of RHB, please go to www.rentalhousingbusiness.ca

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TABLE OF CONTENTS

Foreground: Mike Chopowick of FRPO (page 34) Background, left to right: Wayne Byrd, CFO; Roy Jason Ashdown, COO; Martin Castellan, CAO; Jason Castellan, CEO; Matthew Organ, President, of Skyline Group of Companies (page 12)

THE skyline group of companies

federation of rental housing providers of ontario

Nearly 20 years ago, the founders of the Skyline Group of Companies bought their first property. This year, its portfolio of apartment properties surpassed 10,000 suites and $1 billion in value.

The Federation of Rental-housing Providers of Ontario (FRPO) is the largest apartment association in English-speaking Canada, representing more than 2,200 rental owners and managers with more than 350,000 rental suites.

DECEMBER 2013

NATIONAL OUTLOOK

the unintended consequences of government regulations Government regulation, including rent control and the eviction process, have had various impacts on people involved in the rental housing industry.

40 42

Property Assessments and the Gross Income Multiplier Assessment authorities are in the midst of mailing out Assessment Notices for 2014. Now is the time to consider an appeal.

safety is the first priority In building-based property management, safety should be the first priority. It is everyone’s responsibility to adhere to all aspects of safety in their roles.

RHB EDITION

Federal Conservatives focus on housing By John Dickie, CFAA President

On October 23, 2013, the federal Conservative caucus launched a Housing and Construction Caucus to address housing issues, relating to homeownership, renting, social housing and new construction. At last count, 28 MPs have joined the new Caucus. The executive committee consists of Phil McColeman (MP for Brant) as Chair, Brad Butt (MP for Mississauga-Streetsville), Ron Cannan (MP - KelownaLake Country). Peter Goldring (MP – Edmonton East), Chris Warkentin (MP – Peace River) and Joe Preston (MP – Elgin Middlesex-London). Prior to entering politics, Phil McColeman owned and operated property development and construction companies, as well as rental housing. Brad Butt was formerly a residential property manager and then the President and CEO of the Greater Toronto Apartment Association, CFAA’s affiliate in Toronto. continued on page 3

Inside this edition Rental rates vs. income & age In National Outlook (Digital edition) Available at www.cfaa-fcapi.org

Life safety as a key priority CFAA Rental Housing Employee Compensation Survey HDAA defeats landlord licensing

Is excess home-ownership about to ruin Canada’s economy? House prices are near a 23 year high in Canada. Excluding Toronto and Vancouver, house prices now average 4.0 times the average income, up from 2.7 times that income in 2001, according to BMO Economic Research, February 22, 2013. Economists disagree on whether house prices will flatten out, fall 10% or fall 25%, but no one believes they will keep rising. As well, no economist believes that interest rates will stay at their current levels. As a result, many people are concerned about the effect the inevitable correction will have on the economy. However, there is also another concern. Over the last four decades, the homeownership rate in Canada has risen from 60% to 69%, in large part driven by government policy, including the preferential treatment of home ownership under the Income Tax Act and in the OAS/GIS system. continued on page 6

National Outlook - RHB Edition 1

NATIONAL OUTLOOK National Outlook, the newsletter of the Canadian Federation of Apartment Associations (CFAA), provides political news, policy updates, association news and other information to keep rental housing providers up to date and ready for future opportunities and risks.

[ Skyline ]

“We realized that it would be much more efficient to own and manage a single apartment building with multiple units, rather than multiple properties with individual units.” – Jason Castellan, Chief Executive Officer and Co-founder

Nearly 20 years ago, the founders of the Skyline Group of Companies bought their first property, a student rental house in Guelph, Ontario. This year, the company’s portfolio of apartment properties surpassed 10,000 suites and $1 billion in value. Officially launched in 2006, Skyline Apartment REIT is currently the seventh largest owner and manager of multi-residential properties in Canada. Over the years of acquiring and managing properties, the Skyline Group has overcome numerous challenges, surpassed every goal it has set for itself, and learned many lessons about what it takes to succeed in the real estate industry. In the early 1990s, Jason and Martin Castellan moved in with their father while they attended the University of Guelph. During their first semester, they found and purchased a student rental house near the school. They lived in the basement while renting out the rest of the house to other students, which allowed them to earn an income and live rent-free while attending school. Shortly thereafter, they met Roy Jason Ashdown, who was also subsidizing his university experience by doing maintenance and property management work in the building in which he lived.

14 december 2013

The partners found that they enjoyed owning rental properties, and decided to make a business out of it. With financial help from family and friends, they bought a nearby student rental, and then another; after eight years, their investment portfolio consisted of 52 properties in the Guelph area. Despite the regular cash flow being generated by the rental properties, the partners determined that their business model was inefficient. “Our student rentals were spread all over Guelph, which meant that we had to deal with 52 different properties with different needs and issues,” said Jason Castellan, Chief Executive Officer and Co-founder, Skyline Group of Companies. “We realized that it would be much more efficient to own and manage a single apartment building with multiple units, rather than multiple properties with individual units.” Taking the next steps In 1999, the partners founded the Skyline Group, and decided to adopt a syndication agreement to operate their new business venture. They created a holding company to purchase multi-residential buildings (mostly smaller properties with 15-30 units), and invited shareholders to

Congratulations Skyline on surpassing 10,000 suites and $1 billion in assets. IMC is proud to be a lender to Skyline, and we look forward to your continued success.

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Tel: 416-814-2586 shawn.philpott@imcapital.com Rental Housing Business 15

[ Skyline ]

invest. Under the syndication model, Skyline and its investors provided the equity to purchase the property, and Skyline would participate in 20% of the cash flow once investors were completely reimbursed for their initial equity.

to ensure the investors’ engagement in the discussions. The company had to establish a legal agreement to share performance and income with the REIT on a pro rata basis, based on the equity provided.

“This model laid the foundation for our investment philosophy, which involves looking after our investors first,” said Martin Castellan, Chief Administrative Officer and Co-founder, Skyline Group of Companies. “We extended this approach to how we treat our tenants, which also ensures that our investments—the buildings—increase in value, since satisfied tenants stay longer and keep paying rent.”

“To get everyone to agree on the value of their respective properties, we used a scorecard approach where we graded each property on a number of factors, including location, amenities, and building age and condition,” said Wayne. “The resulting grades determined an implied cap rate for the building and resulting value for its investors, which enabled us to transfer investors’ respective shares into new shares in the newly amalgamated entity.”

Skyline operated under the syndication model from 1999 to 2005, which resulted in 16 different corporations that owned and managed various multi-residential properties, introducing a new layer of inefficiency at the organizational level. In 2005, the Skyline partners asked Wayne Byrd, now Chief Financial Officer of the Skyline Group of Companies, to join them. Wayne, who had known Jason, Martin and Roy since 1999, was instrumental in transforming the company’s syndication structure into a real estate investment trust (REIT).

In June 2006, the Skyline Apartment REIT officially launched, and began acquiring properties and engaging new investors. Its first offering memorandum enabled the REIT to privately raise $20 million in just four months (to compare, under its previous syndication arrangement, it took Skyline almost seven years to raise more than $14 million). Five years later, Skyline Group pursued another opportunity for growth with the creation of a second REIT—Skyline Commercial REIT—which officially launched in 2012.

Over the next 14 months, Skyline went through the process of combining its syndicates to establish a launch platform for the new Skyline Apartment REIT. To amalgamate the 16 corporations (27 properties) under one umbrella, the company obtained unanimous approval from 80 separate shareholders that made up the different syndications, which involved holding numerous shareholder meetings

“The creation of a new investment product gave the choice back to our investors,” said Jason. “They now have the option of buying shares in a REIT that focuses on a specific asset class: either multi-residential rental buildings or commercial properties. We took our experience from launching the first REIT to help make the development and creation of the second REIT run more smoothly.”

16 december 2013

Barry Gidney

Assistant Vice President Commercial Mortgages Barry Gidney Assistant Vice President Commercial Ilan BardaMortgages Senior Manager Commercial Ilan Barda Mortgages Senior Manager Commercial Mortgages

is a First National Firstproud National lender istoa

proud lender to

TheSkyline Skyline The GroupofofCompanies Companies Group

Congratulationson onreaching reaching$1 $1billion billionininreal real estate Congratulations estate assets. Best Bestwishes wisheson onyour yourcontinued continuedsuccess. success. assets.

Thankyou youfor for25 25years yearsofofshared shared success. Thank success.

Barry BarryGidney Gidney

rstnational.ca fifirstnational.ca

Ilan Barda Ilan Barda

Assistant Mortgages Manager, Commercial Mortgages AssistantVice VicePresident, President,Commercial Commercial Mortgages Senior Senior Manager, Commercial Mortgages T:T:416.593.2915 T: 416.597.5450 / 800.465.0039 416.593.2915/ /800.465.0039 800.465.0039 T: 416.597.5450 / 800.465.0039 E: rstnational.ca E: ilan.barda@fi rstnational.ca E:barry.gidney@fi barry.gidney@fi rstnational.ca E: ilan.barda@fi rstnational.ca Ontario Mortgage Brokerage License No. 10514 Ontario Mortgage Brokerage License No. 10514

[ Skyline ]

“Specialization has enabled us to lower the cost of raising capital, which translates into higher returns for the REITs.” – Martin Castellan, Chief Administrative Officer and Co-founder

Supporting growth from within From the beginning, Skyline’s founders believed in the integration of all levels of management servicing the REITs. When they created the Skyline Apartment REIT (and later the Skyline Commercial REIT), they decided to separate the property management, asset management and wealth management functions into independent business units, each of which would share the responsibility of providing the necessary services to the REITs while aligning their interests with the REITs. Together, these service companies make up the Skyline Group. Skyline Asset Management Inc. (SAMI) is responsible for purchasing properties for the REITs. It conducts due diligence prior to purchase, arranges financing for purchases and existing assets, engages in asset management, negotiates contracts and creates capital upgrade plans for properties. SAMI’s management takes a high-level approach to asset management, using its portfolio strength to obtain better pricing on services and financing. It also develops strategies for laddering mortgages and determining which properties to buy and sell.

18 december 2013

Skyline Management Inc. (SMI) manages the properties on behalf of the Skyline Apartment REIT, as well as some third-party properties. It provides comprehensive property management services, including tenant recruitment, maintenance, service contract negotiation, marketing, rent collection, financial reporting, accounting services and insurance placement. Skyline Commercial Management Inc. (SCMI) provides property management services for the properties in the Skyline Commercial REIT, which require different strategies and approaches than those in the Skyline Apartment REIT. Skyline Wealth Management Inc. (SWMI) is responsible for investor relations, securities law compliance, marketing, and communications for the REITs and the Skyline Group. It raises capital when required through a confidential offering memorandum, and runs advertising and information sessions to keep investors informed and engaged. SWMI also serves as an intermediary between the REITs and investors, and communicates with them on issues such as growth, sales, distributions and reporting.

Rental Housing Business 19

[ Skyline ]

This year, Skyline brought its mortgage financing in-house with the launch of Skyline Mortgage Financing Inc. (SMFI). The new service company enables Skyline to integrate its mortgages into SAMI’s laddering program. It also makes the organization more responsible for managing its debt and getting the best financing rates, while eliminating the requirement to have to deal with multiple mortgage brokers. “We began by doing everything ourselves, including buying, financing and maintaining the properties, so we understand the

areas to create benefits through consolidation of properties. Although the REIT has grown substantially over the years, it has focused on finding value opportunities and distributing stable, consistent returns to investors, rather than purchasing solely for the sake of growth. Liquidity is a key benefit for Skyline’s REIT investors: they can sell their investments as early as four months after purchasing shares in the REIT without penalty (securities law mandates an initial fourmonth hold). Skyline Apartment REIT owns and manages properties that are profitable and generate a regular income. It has a $30 million

“Owners and upper management have grown through the business, and understand what is required from those front-line roles, so we know what resources and training are necessary to do the job.” – Matthew Organ, President, Skyline Management Inc.

value that it brings,” said Jason. “We do almost everything in-house, which includes employing in-house legal and accounting specialists to handle those duties. Simply put, this strategy makes us more efficient, since we can respond to issues and requests for information much more quickly.” Creating attractive investment vehicles The Skyline Apartment REIT includes 125 properties, with more than 10,000 units and a value in excess of $1 billion. The REIT has grown by purchasing multi-residential rental properties in secondary and tertiary markets throughout Ontario, and expanding its holdings within those

line of credit, regularly pays off and refinances existing mortgages, and consistently attracts new investors. It is thus provided with sufficient funding to make new acquisitions, make capital upgrades to create efficiencies, and budget for whole or partial redemptions to investors. “We facilitate redemptions on a monthly basis, and investors can redeem wholly or partially at 100% market value of their investment without penalties or discounts,” said Wayne. “We’ve budgeted about $750,000 per month in redemptions for 2014, and we are generating enough capital and using our leverage appropriately to remain sufficiently liquid for investors who want to redeem their units.” continued on page 23

20 december 2013

Congratulations to the Skyline Group of Companies

airdberlis.com

[ Skyline ]

Apartment REIT

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22 december 2013

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[ Skyline ]

Skyline Apartment REIT has been able to benefit from the growth in real estate value (especially rental properties) over the last 20 years. Because real estate is a tangible asset that people can see and touch, many Skyline investors prefer it as an investment option over less tangible assets (such as stocks). Investors can also see when Skyline makes physical improvements to a building after purchase, and how these improvements add value to the building and the investment. The Skyline Group is continually learning and improving its business strategies and policies, including its underwriting, purchasing and property management. Skyline owners’ (and staff’s) years of experience have enabled them to mitigate risks associated with utilities, taxes, interest rates and vacancies. This collective knowledge and experience has given them control over the process, and has helped them to improve with each new acquisition. “As our underwriting process has evolved over the years, we have been able to make improvements on our acquisitions,” said Jason. “We’ve established a solid foundation in real estate that enables us to better evaluate future purchases, and understand ratios in things like utility costs, which puts the control back in our court. The end result is more room to provide value to our investors.”

People drive the engine of growth Skyline Apartment REIT has learned that customer service is essential to its growth, as high-quality, happy tenants are necessary for increasing the value of its buildings. Being flexible enables it to service tenants in different cities, towns and areas with different demographics. Property managers learn how to accommodate tenants that might have different needs, such as seniors and students. The organization understands that proper training of property managers is essential to its success, as they are the first line of communication in the business. Skyline employs a hands-on approach, maintaining one of the lowest ratios of field managers to resident managers in the industry. It requires that property managers visit their respective properties as often as possible to deal with issues in an expedient manner. Skyline holds group education sessions at each of its buildings, focusing on training to ensure that its staff provides exceptional service to tenants. “We have buildings spread over wide geographic areas, so when you have 10,000 units with more than 25,000 tenants, a lot continued on page 25

Rental Housing Business 23

[ Skyline ]

Skyline Apartment REIT: Frequently Asked Questions (Answers provided by Jason Castellan, CEO) Q: How has the Skyline Apartment REIT been able to maintain positive returns for investors since inception?

Q: What key reason can you provide for investing in the Skyline Apartment REIT over other investment options?

A: Itâ&#x20AC;&#x2122;s all about the buy. We aim to make the right acquisition for the REIT by ensuring that we have the numbers and knowledge to back it up. With FWFSZ QVSDIBTF PVS FYQFDUBUJPO JT UP CF HFOFSBUJOH cash flow from day one. Weâ&#x20AC;&#x2122;ve developed an ability to use leverage properly in purchasing properties so that we get the funding we need. Weâ&#x20AC;&#x2122;ll then ensure that any equity we get from investors is eventually returned to them by way of cash flow and growth from the property. We also manage all aspects of the business in-house, which helps to JODSFBTF FÄ&#x160;DJFODJFT

A: Our investors have access to every member of our wealth management team, as well as anyone FMTF EJSFDUMZ DPOOFDUFE UP UIF JOWFTUNFOU ÍłFSF are no â&#x20AC;&#x153;middle menâ&#x20AC;?; we only promote our PXO 3&*5T CFDBVTF XF BSF UIF FYQFSUT PO PVS products. We also provide many opportunities for investors to meet with our wealth management team, operations team and management to learn what we are doing, and provide suggestions and MFBET GPS OFX BDRVJTJUJPOT ÍłJT HJWFT PVS JOWFTUPST DPOmEFODF BOE DPNGPSU JO XIP JT MPPLJOH BGUFS their investment, and allows them to be engaged and informed.

Q: What are the ultimate goals for Skyline Apartment REITâ&#x20AC;&#x2122;s growth?

Q: What type of liquidity do you oďŹ&#x20AC;er investors?

" ÍłF LFZ JT UP CF SFBEZ UP BDU PO UIF OFYU BWBJMBCMF EFBM 'PS FYBNQMF JG B QPSUGPMJP PG SFOUBM CVJMEJOHT ever becomes available, and we believe that there is value, then weâ&#x20AC;&#x2122;ll buy it after doing the appropriate EVF EJMJHFODF 8F IBWF UIF BCJMJUZ UP EP GSPN NJMMJPO UP NJMMJPO JO EFBMT JO BOZ HJWFO ZFBS depending on the economic environment. We have no control over when someone is ready to TFMM o XF KVTU QMBO UP CF SFBEZ XIFO JU IBQQFOT BOE XJMM NBLF BO PÄ&#x2030;FS XIFO JU NBLFT TFOTF

" 8F PÄ&#x2030;FS GVMM MJRVJEJUZ GSPN EBZ POF BT PVS JOWFTUPST DBO FYJU UIF JOWFTUNFOU BU BOZ UJNF BGUFS UIF mSTU GPVS NPOUI NJOJNVN IPME QFSJPE XIJDI is a securities mandated law). With such a large QPSUGPMJP XF BSF FYUSFNFMZ MJRVJE BT XF IBWF BDDFTT UP DBTI nPXT MJOFT PG DSFEJU SFmOBODJOH BOE OFX JOWFTUPST 8F PÄ&#x2030;FS GVMM SFEFNQUJPO XJUIPVU GFFT penalties or discounts.

Q: What strategies do you use to deliver consistent, reliable growth?

" 8IJMF QVCMJD NBSLFUT BSF FÄ&#x2030;FDUJWF GPS FOTVSJOH liquidity and raising capital, they provide more volatility than we care for. We want to de-correlate from public markets to avoid volatility. Weâ&#x20AC;&#x2122;ve been able to raise funds at a fraction of the cost of public markets and have used our marketing FYQFSUJTF UP SBJTF JOWFTUPS JOUFSFTU BOE FRVJUZ 8F IBWF OP QMBOT UP HP QVCMJD CVU JU JT B WJBCMF FYJU TUSBUFHZ 4P TIPVME XF FWFS HFU UIF SJHIU PÄ&#x2030;FS from the right buyer, and our investors approve, then we would go public.

A: It begins with taking care of our properties and servicing our tenants. When you take care of the fundamental aspects of this business, which includes both our buildings and the people who live in them, then the properties will generate QSPmUT GPS PVS JOWFTUPST

24 december 2013

Q: Does the Skyline Apartment REIT ever plan to go public?

[ Skyline ]

of issues appear on a daily basis,” said Matthew Organ, President, Skyline Management Inc. “Owners and upper management have grown through the business, and understand what is required from those front-line roles, so we know what resources and training are necessary to do the job.” Since each department in the Skyline Group is aligned to achieve the common goal of servicing the REITs and ensuring their success, management and staff have made customer-focused processes and practices a priority. Management meetings often involve discussions of different problems and strategies that affect both individual departments and the organization as a whole. Skyline staff does not focus on the finances of individual departments, but rather on how it can benefit the company, its investors and its tenants. As the Skyline Group has grown, its founders have learned that hiring specialists who focus on specific tasks provides greater efficiencies and opportunities for growth. For example, Skyline created SCMI to focus on the needs of the properties in the Skyline Commercial REIT, which has enabled it to find greater efficiencies and provide a more customized level of service to its commercial tenants (and better returns to investors).

“Specialization has enabled us to lower the cost of raising capital, which translates into higher returns for the REITs,” said Martin. “At the same time, we’ve ensured that our specialists are aligned with our overreaching goal: to satisfy our tenants and our investors.” Skyline also ensures that every new hire knows the Skyline story: the purchase of the first property, the key experiences along the way and valuable lessons learned. The point of sharing the company’s history with new hires is to create an understanding of how Skyline staff and owners work toward a common goal, and how new employees will contribute to the overall corporate strategy. “We’re fortunate to live and work in an area like Guelph where people have a strong work ethic, and they are willing to roll up their sleeves to get the job done, which is essential in the real estate business,” said Jason. “You need passion and hard work to be successful, and management leads the way in both areas to ensure that our employees follow.” Efficiency leads to growth Very early on, the Skyline Group owners developed a scalable approach to managing properties. They created a platform of operating

Congratulations on all your success and achievements in such a short time. We don’t want to give away all your trade secrets. Continued success!

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Rental Housing Business 25

[ Skyline ]

procedures that was implemented with each new property, and taught to each new hire. The platform teaches how and when to deal with different situations in the dayto-day business of property management. This platform has been crucial to Skyline’s success in acquiring and prospering from new buildings in multiple geographical regions. “This scalable platform enables Skyline to drive growth and ensure profitability whenever we take over a building,” said Roy Jason Ashdown, Chief Operating Officer and Co-founder, Skyline Group of Companies. “In many cases, we can manage buildings more efficiently than the previous owner, simply because of our experience and economies of scale. Each new building presents a great opportunity to improve profitability through operations; when we improve efficiencies and deliver better service to tenants, we are able to drive revenues and surface value.”

“Each new building presents a great opportunity to improve profitability through operations; when we improve efficiencies and deliver better service to tenants, we are able to drive revenues and surface value.” – Roy Jason Ashdown, Chief Operating Officer

26 december 2013

When Skyline is presented with a buying opportunity, it employs its own analytics (in addition to the numbers provided by the seller) to determine the cost of different elements (e.g., hydro, gas, garbage collection, water), and where it can realize savings. Rent increases are capped, but there are no caps on utilities and energy savings, so finding ways to compress those costs (like investing in new boilers or lighting) increases building value. Skyline has also found that changing tenants’ consumption behaviour can also help reduce its carbon footprint and increase building value. Skyline educates its tenants through newsletters, signage and mailers, and also through leading by example with the implementation of numerous efficiency upgrades to its properties. The organization has found that tenants have responded to its efficiency programs and have bought into its efforts once they have realized what Skyline is doing in the properties to improve energy efficiency. “People just need to be reminded as to how a small change in routine can have a substantial effect on the environment,”

[ Skyline ]

said Roy. “If we are able to achieve just a 1% reduction in energy consumption by changing our residents’ behaviour, this can translate into $150,000 in energy savings per year. At the end of the day, we improve tenant comfort and building value, and our tenants feel good about our combined efforts. This can be a crucial difference for consideration when tenants compare a Skyline building to a neighbouring property.” The future of Skyline Because they are not looking to grow simply for the sake of growth, the Skyline Group’s ownership and management no longer intend to set growth goals for either REIT. Each member of the Skyline team is motivated to drive his or her individual component of the organization, which helps to create positive pressures on other parts of the business. While the Skyline Apartment REIT is currently focused on purchasing in Ontario, management might consider looking outside the province for new opportunities. It has determined that the deals are not there yet, and has continued to expand into new Ontario markets, such as northern Ontario, while intensifying holdings in

existing markets. The Skyline Commercial REIT is currently providing numerous opportunities to add value, and management foresees further growth opportunities in 2014. Skyline is also working on a third investment product, the Skyline Retail REIT, which is expected to launch in the near future. Much like the Skyline Apartment REIT, it will focus on secondary and tertiary markets where there exists a national anchored tenant (e.g., Shoppers Drug Mart, LCBO, Canadian Tire) with long-dated retail leases. Skyline’s ability to identify value and generate relationships will enable it to create another source of passive income for potential investors, and another source of growth for the organization. “In 1999, we would have been happy with hitting our initial goal of 800 units, but we’ve grown and evolved to the point where I will not rule anything out,” said Jason. “Something in our DNA drives us to grow, find more efficiencies and surpass expectations. We will continue to benefit from the expertise of our specialists who continuously find better ways to do things. We know that we can always do better while continuing to grow.” RHB

The Byng Group congratulates Skyline on its continued success!

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Rental Housing Business 27

[ Skyline ]

â&#x20AC;&#x153;In 1999, we would have been happy with hitting our initial where I will not rule anything out. Something in our DNA drive We will continue to benefit from the expertise of our specialist we can always do better while continuing to grow.â&#x20AC;?

[ Skyline ]

goal of 800 units, but weâ&#x20AC;&#x2122;ve grown and evolved to the point es us to grow, find more efficiencies and surpass expectations. ts who continuously find better ways to do things. We know that â&#x20AC;&#x201C; Jason Castellan, Chief Executive Officer and Co-founder

[ Government ]

The Unintended Consequences of Government Regulation By David Gargaro

Rent control Depending on where you live in Canada, and where you own and manage rental properties, rent control is either a non-issue or a very serious one. Ontario, Quebec, British Columbia, Manitoba and PEI all have some form of rent control, while the other provinces and territories do not. Proponents of rent control legislation have always believed (and argued) that rent control legislation helps to prevent or reduce increases in rent. Historically, research shows that this is not the case. The Frontier Centre for Public Policy studied the path of rent increase from 2008 to 2010. According to their research, two-bedroom apartments in nonrent-controlled and rent-controlled cities faced average rent increases of 3.9% and 6.0%, respectively, while three-bedroom apartments saw increases of 6.3% and 6.4%, respectively. Owners of rental properties have long argued that rent control legislation is harmful to their business, their industry, the community and tenants. Putting a cap on rent increases distorts the rental housing market and discourages investment in new rental properties (as well as necessary upgrades to existing rental stock). Rent control also keeps tenants living in units longer, as without rent control many would typically move into a newer rental property or purchase a home. This means older rental units are not available to new renters. From the landlord’s perspective, rent control prevents them from recovering legitimate operating costs and running their business effectively. Most rental properties are older buildings that require investment in maintenance and upgrades. Rent control causes building operating costs to rise more quickly than rents are allowed

30 december 2013

to be increased, making it difficult to budget for capital improvement projects, such as roof replacement, elevator upgrades and underground garage repair. Tenant advocacy groups often point out that many tenants’ incomes are not keeping pace with inflation. Median incomes have not increased quickly enough, and cost of living increases have made it difficult for many people to afford their rents. However, forcing landlords to cap rent increases because of lower income levels is not the answer. Rather than trying to control rents, a better solution is housing benefits, as they address the income problem, and tenants can pay their rent in full and on time. For many low–income tenants, rent takes up at least half of their income, and in many cases they come up $100 to $200 per month short of covering their rent. A housing benefit would help low-income tenants to make up the shortfall and enable them to cover their rent and other necessities. When a tenant’s income increases, the benefit can be removed and redirected to another tenant who has seen an income drop. Eviction process Most eviction applications are a result of non-payment of rent (i.e., the tenant either cannot or chooses not to pay the rent). When nonpayment occurs, and the tenant chooses not to leave voluntarily, the landlord must begin the eviction process to seek to collect the rent. In most provinces, tenants have significant rights to pay and stay; in situations where this does not occur, then what should be a relatively straightforward process is often prolonged by excessively long statutory, administrative and enforcement delays.

[ Government ]

Every province has different waiting periods for each phase of the process, and it is these waiting periods that can stretch out the eviction process from weeks to months. When rent goes into arrears, landlords must wait a specific amount of time before serving notice. Hearings must be scheduled, and when there is a judgment in the landlord’s favour, they must schedule an appointment with a court enforcement officer to enforce the eviction and change the locks. In Ontario, landlords must use the Sheriff and wait 11 days after receiving a favourable judgment before they can even schedule an appointment with the Sheriff, who will often delay the process even further (for scheduling or other reasons).

more quickly. In Ontario, Sheriffs’ offices can work to make the process more efficient. Conclusion Our cities’ streets are not paved in gold, which tells us something about good intentions. The rental housing industry needs to educate elected officials, the

general public, the media and tenants about the unintended consequences of rent control and eviction procedures on landlords, tenants and others. Simply saying that these issues cost us all isn’t enough; we must make a good case for a rollback of the government regulations that tie our hands and have a negative impact on everyone. RHB

However, other than the tenant getting an adjournment, there are many delays that stretch out the process, and it can vary widely from province to province. Ontario and Quebec have the longest dispute processing delays of all the provinces, often averaging about 75 days. Compare this to Alberta, where the whole process usually takes less than 20 days. British Columbia has the shortest statutory delay, but hearing delays have historically extended the process to twice as long as in Alberta. New Brunswick has no hearing and thus no hearing delay, and its entire process is shorter than either Ontario’s statutory delay or its hearing delay. Delays affect everybody. New tenants who have applied to rent the unit sit on the sidelines waiting for the matter to be resolved, while landlords continue to lose out on rent. Tenants in arrears continue to accumulate debt that eventually must be paid back, and landlords must pay fees for going through the process, including additional fees for engaging the Sheriff. It is also quite problematic when tenants who are being evicted for disturbing their neighbours are allowed to continue the disturbances. Different solutions are needed in each province. For example, in Ontario, Quebec and Nova Scotia, each government can amend its Residential Tenancies Act to reduce statutory delays, which is where most delays occur. In Ontario, British Columbia and Quebec, landlord-tenant boards should ensure that they schedule hearings and make judgments

Rental Housing Business 31

IN THE KNOW FRPO LIFETIME ACHIEVEMENT AWARD Each year since 2009, FRPO has presented Lifetime Achievement Awards to individuals with overwhelming contributions to the rental housing industry and the province of Ontario. Past winners include Arthur Weisz of Effort Trust, Bernie Herman of Citipark, Mowbray Sifton of Sifton Properties as well as Harold Green, Al Green and Albert Latner of Greenwin. Our distinguished recipient this year is Mr. Jack Weinbaum of WJ Properties. Jack came to Canada in 1948 and got his start painting houses. Soon he was buying them up and selling them. Toronto was growing rapidly and in 1958, Jack started construction on 6 walkup buildings in East York. Over the next two decades, Jack and his partners would construct and manage 34 buildings throughout Toronto including 12 buildings containing 3000 suites in Flemingdon Park. From the start, Jack aimed to provide attractive, comfortable and safe homes for his tenants. His contributions have provided quality housing for tens of thousands over the years. Congratulations Jack! FRPO has announced that this year’s MAC Awards Gala is completely sold out. There will be over 800 rental housing professionals in attendance as we announce this year’s best in the business. Award categories include Marketing, Construction and Achievement. Each year FRPO aims to raise those organizations who have achieved excellence. Good luck to the ﬁnalists and FRPO looks forward to presenting the 2013 MAC Awards on December 5th at the Metro Toronto Convention Centre. NOVA SCOTIA GETS A NEW GOVERNMENT On October 8, 2013, Nova Scotians returned the Liberal Party to power under Stephen McNeil. The Liberal Party won 33 seats to 11 for the Progressive Conservatives and seven for the NDP, the out-going government. The Liberal Party had last formed the government of Nova Scotia in 1998.

The out-going Premier, Darrell Dexter, lost his own seat to a Liberal by 31votes. “Nova Scotia’s landlords look forward to a positive relationship with the new government,” says Jeremy Jackson, President of the Investment Property Owners Association of Nova Scotia. “Exciting things are happening and about to happen in housing at all price points.” THE BYNG GROUP HOLIDAY AFTER-PARTY The Byng Group’s Holiday Cocktail Party will be held on Thursday, December 5th, in the Metro Toronto Convention Centre in Toronto. This prestigious event takes place immediately following and adjacent to the FRPO Awards Gala. This convenient location ensures a large attendance (it is in the same location as last year). The FRPO Awards Gala attracts the country’s largest and most successful landlords, property managers and real estate ownership groups, who own or manage more than 350,000 multi-residential units in Ontario. The Byng Group has successfully hosted this Holiday Cocktail Party for the past ﬁve years (over 300 invited guests attended last year’s party). This is a highly anticipated, “must attend” annual event, so if you plan to go to the FRPO Awards Gala, make sure that you get a ticket to the party. FRPO’s property manager (regular) members receive a complimentary, all-access pass to the event. FRPO’s corporate and supplier members can purchase tickets for $50 in advance or $75 at the door. GOVERNMENT OF CANADA ACTS ON SOCIAL HOUSING Through CMHC, the federal government now provides $1.7 billion annually in support of close to 594,000 individuals and families living in existing social housing. Provinces and territories contribute a similar amount to subsidize this housing. The funding is provided under long-term agreements, which cover a 25 to 50 year period. At the end of these agreements, Continued on page 33

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DECEMBER 2013

NATIONAL OUTLOOK

RHB EDITION

Federal Conservatives focus on housing By John Dickie, CFAA President

On October 23, 2013, the federal Conservative caucus launched a Housing and Construction Caucus to address housing issues, relating to homeownership, renting, social housing and new construction. At last count, 28 MPs have joined the new Caucus. The executive committee consists of Phil McColeman (MP for Brant) as Chair, Brad Butt (MP for Mississauga-Streetsville), Ron Cannan (MP - KelownaLake Country), Peter Goldring (MP – Edmonton East), Chris Warkentin (MP – Peace River) and Joe Preston (MP – Elgin Middlesex-London). Prior to entering politics, Phil McColeman owned and operated property development and construction companies, as well as rental housing. Brad Butt was formerly a residential property manager and then the President and CEO of the Greater Toronto Apartment Association, CFAA’s affiliate in Toronto. continued on page 3

Inside this edition CFAA Conference - June 9 to 11 In National Outlook (Digital edition) Available at www.cfaa-fcapi.org

Safety is the key priority CFAA Rental Housing Employee Compensation Survey Misconceptions about rental housing and affordability

National Outlook - RHB Edition 1

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2 National Outlook - RHB Edition

NATIONAL OUTLOOK

DECEMBER 2013

What Conservative MPs say CFAA looks forward to establishing a productive relationship with the Housing and Construction Caucus While the Caucus will address social housing issues, most members want to devote more of their efforts to the health of the private housing market, both rental and owner-occupied. Private market housing accommodates 95% of Canadian households, 69% in owner occupied dwellings and 26% in rental dwellings. CFAA believes the committee should examine these key issues: s THE TAX TREATMENT OF RENTAL HOUSING COMPARED TO WHAT IT was when substantial amount of rental housing was built) s THE IMPACT OF A RETURN TO NORMAL INTEREST RATES ON mortgages, including the impact - on homeowners’ ability to pay on renewal - on housing prices s THE LIKELY IMPACT OF A CORRECTION IN HOUSE PRICES ON the economy s THE AVAILABILITY OF RENTAL HOUSING WHERE IT IS NEEDED s THE AFFORDABILITY OF RENTAL HOUSING FOR LOW INCOME Canadians, including the impact - of municipal development charges - of other government requirements and taxes on new development

Phil McColeman, Caucus Chair MP Brant “The housing industry is a key driver of the Canadian economy. When our housing sector is healthy and succeeding, it means good paying jobs and spin-off benefits for communities across Canada; not to mention quality and affordable homes for our families. Rental housing is also a very important part of the mix since it serves new workers in growing communities, and low and moderate-income Canadians.” Brad Butt, Caucus Vice-Chair MP Mississauga-Streetsville “I am delighted that many MPs from the Conservative Party have come together to form a Housing Caucus in Ottawa. Every Canadian needs housing. Our role is to study and advise the Government on things we can do to make sure Canada has a strong housing market - in all sectors and regions - and that Canadians have choice and affordability. Our work with important stakeholders like the CFAA will guide these discussions and help us make solid recommendations to Ministers and agencies responsible for housing issues.”

s THE AFFORDABILITY OF NEW HOMES FOR YOUNG PEOPLE INCLUDING those impacts

Ron Cannan, Caucus Vice-Chair MP Kelowna-Lake Country

s THE OPTIMAL RESPONSE TO THE EXPIRY OF THE SOCIAL HOUSING operating agreements

“The housing market in Kelowna attracts many affluent people who look to the high quality life style the Okanagan provides. Yet, the lack of affordable housing continues to be a major and growing concern for constituents of all ages. This is particularly an issue for employers trying to bring skilled labour to the region.”

s EXPANDING THE USE OF FEDERAL FUNDING FOR PORTABLE HOUSING allowances or rent supplements. So far, the Caucus has heard from CFAA, CHBA (Canadian Home Builders’ Association), CAAMP (Canadian Association of Accredited Mortgage Professionals) and CREA (Canadian Real Estate Association.) CFAA’s key concerns CFAA’s key advocacy points are the tax treatment of rental housing, compared to what it was when substantial amount of rental housing was built, and also the design of federal housing funding. CFAA seeks better tax treatment for rental housing, both to make the continued operation of rental housing more attractive and to encourage new construction to meet an enhanced demand for rental housing as an asset.

Peter Goldring, Caucus Executive Committee member MP Edmonton East “Multi-unit construction had flat-lined for 20 years, which has serious implications for many people across Canada at all rent levels. In particular, we have a great need for more housing which is affordable. I think the government should look seriously at a capital gains rollover.”

National Outlook - RHB Edition 3

NATIONAL OUTLOOK

DECEMBER 2013 continued from page 3

What the opposition parties say about housing The NDP: s 4HAT THE #ONSERVATIVE GOVERNMENT MAINTAIN THE total amount of $1.7 billion per year (85% of the entire federal budget for housing) currently dedicated to the social housing operating agreements; s 4HAT THE AMOUNTS SAVED BY THE END OF LONG TERM agreements on social housing projects that will remain viable without subsidies be reinvested in new [social housing construction]projects; s 4HAT THE GOVERNMENT PROVIDE SUFlCIENT FUNDING to ensure the renovation, improvement and modernization of all social housing to ensure its sustainability The Liberal Party: Develop a comprehensive strategy that:

national

housing

s INCLUDES SOCIAL HOUSING LOW INCOME RENTAL HOUSING co-op housing, and middle-income housing in partnership with other levels of government service providers and business s EMPLOYS FEDERAL TAX POLICY TO ENCOURAGE THE building and maintaining of long-term affordable rental and co-op housing s INCLUDES SPECIlC MEASURES TO PREVENT AND address homelessness Adopt a neutral tax policy to encourage new investment and level the playing field for rental housing investors. This would: s 4REAT RENTAL INVESTMENT THE SAME IN PRINCIPLE AS other comparable investments by allowing small business rental investors to qualify for small business tax treatment s 2EDUCE '34 PAYMENTS ON RENTAL HOUSING s $EFER THE TAXATION OF CAPITAL GAINS AND CAPITAL cost allowance recapture for rental investors who sell a rental building and buy another within a year, as is currently the case for hotels, motels and family farms

CFAA wants to ensure that funding for new construction does not result in the crowding out of existing rental housing. We are making recommendations about the design of any incentives for new construction. We also advocate the need for improvements in the tax treatment of existing rental housing to avoid crowding out. CFAA advocates for reduced development charges and municipal requirements for all housing development, including rental development. Finally we advocate for improvement in the operation of social housing, along with greater use of direct financial assistance to low-income households so that they can rent in the private market if they choose. More details are set out below. Development changes and housing affordability For CHBA a key concern is the development charges and other provincial and municipal requirements (such as “public benefits” extracted under section 37 of Ontario‘s Planning Act, and similar legislation in some other provinces). To CHBA the evidence is clear that such charges and extractions are paid for by new home buyers and renters, and have a dramatic effect on affordability for them, and especially for young people entering home ownership for the first time. CFAA agrees. CFAA takes the issue one step further. Research from the U.S. makes it clear that lack of affordability in the new home sector impacts on affordability and availability throughout the housing market, including the rental housing market. Governments and politicians say they want housing to be affordable, but they often implement policies that have the exact opposite effect. If the Caucus and the government agree with CFAA and CHBA, then the tricky issue will be how the federal government can reduce taxes on new housing construction (both rental and homeowner), while preventing the provinces and municipalities from occupying the tax room the federal government vacates. One potential policy tool would be tying federal housing money to restraint in development charges and requirements. Of course, the Federation of Canadian Municipalities (FCM) and the provinces would not find such restrictions positive. Social Housing The Caucus will also look at social housing, including the expiry of the social housing operating agreements. CFAA is addressing the expiry of the agreements as an opportunity continued on page 6

4 National Outlook - RHB Edition

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NATIONAL OUTLOOK

DECEMBER 2013

continued from page 4

to improve how social housing operates. CFAA would like to see changes to: s 0ROMOTE CHOICE FOR LOW INCOME RECIPIENTS OF HOUSING support, so that each low-income household being assisted has the choice of direct financial assistance to rent in the private market, not only the choice of social housing. s 0ROMOTE RATIONALIZATION AMONG SOCIAL HOUSING PROVIDERS so that they can serve low-income households better by making use of economies of scale and additional crosssubsidization. s 0ROMOTE ACCESS TO SOCIAL HOUSING UNITS BY THE HARD to-house, while other agencies make available the appropriate social service and mental health supports to ensure successful tenancies.

s %NSURE LOW INCOME PEOPLE HAVE EASY ACCESS TO THE RANGE of social housing options open to them, without needing to make multiple applications. s %NSURE SOCIAL HOUSING CONTINUES TO BE AVAILABLE TO THOSE IN need of deep subsidies, not just people who need shallow subsides, or can pay market rent. Other groups would also like to see governments and social housing providers make those changes. Since these changes are about making social housing and housing subsidies work better for people, CFAA is seeking support for those changes from FCM and the Canadian Housing & Renewal Association (CHRA). It remains to be seen whether that support will be forthcoming.

continued from page 1

Recently the U.S. National Bureau of Economic Research (NBER), a highly respected, non-political economic research institute, published a working paper on the relationship between homeownership and the labour market. The paper found that a doubling of the homeownership rate is associated with an increase of more than double in the unemployment rate. The paper’s authors were Andrew J. Oswald and David G. Blanchfield. Through detailed statistical analysis they studied homeownership and unemployment rates in all 48 continental states, since the 1950’s. The U.S. housing and labour markets are very similar to Canada’s; and so, the results are almost certainly transferable to Canada. The authors found: s (IGH LEVELS OF HOME OWNERSHIP ARE TIGHTLY LINKED TO HIGH levels of unemployment (3 to 5 years later) s "OTH WITHIN AND ACROSS STATES HIGH HOME OWNERSHIP AREAS have lower labour mobility s 3TATES WITH HIGHER RATES OF HOME OWNERSHIP HAVE LONGER commute times s 3TATES WITH HIGHER RATES OF HOME OWNERSHIP HAVE LOWER rates of business formation. The study also noted that not all rental housing is equal. In public housing, labour mobility tends to be low and associated joblessness high. As a result, private rental housing is key for low unemployment.

6 National Outlook - RHB Edition

The same relationship between high rates of home ownership and high rates of unemployment holds true across European countries. Here are the extremes: Switzerland has a home-ownership rate of 30% and a 3% unemployment rate, while Spain has a home-ownership rate of 80% and a 25% unemployment rate. As individuals, home owners are not unemployed more than renters. As a result, the exact connection between higher homeownership rates and higher unemployment is not clear, but the authors of the NBER study note the connection is incredibly robust and very worrisome. That should make governments re-think the tax advantages they now extend to homeownership, and the tax increases they have imposed on rental housing over the last four decades. The NBER research paper can be downloaded at www.nber.org/papers/w19079.

NATIONAL OUTLOOK

DECEMBER 2013

Save the Date! CFAA 2014 Conference TO TAKE PLACE JUNE 9 TO 11

Save the dates June 9 to 11, 2014, for the CFAA Rental Housing Conference 2014! The Conference is returning to Vancouver, and will be held at the Sheraton Vancouver Hotel Wall Centre, a new venue for CFAA. The conference will open on Monday, June 9, with an afternoon tour of innovative rental buildings in Vancouver. On June 10, the sessions will address Investment in rental housing. The keynote speaker is to be the always-engaging and everinsightful Benjamin Tal of CIBC World Markets. Tuesday

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8 National Outlook - RHB Edition

evening delegates can network at a fun social event. The conference will wrap up on Wednesday with a day discussing Rental Operations. Hotel room group rates for the conference start at $195 per night. The Sheraton - Wall Centre is conveniently located downtown, with easy access to shopping, dining and entertainment on Robson Street and Yaletown. While visiting Vancouver, the possibilities are endless. Enhance your conference stay with an afternoon spent whale watching, a horse-drawn tour of Stanley Park, or a visit to the public market at Granville Island, all while enjoying the breathtaking views of the mountains and ocean. Shelley Wittal, Director of Property Management (Eastern Region) at Gateway, said this about the CFAA Rental Housing Conference 2013, â&#x20AC;&#x153;The education topics were fresh and aimed at current challenges which had not been recently addressed. I especially enjoyed the topics geared towards employment and Human Resource challenges. I found the conference very helpful, and am looking forward to the next CFAA Conference.â&#x20AC;? CFAA is working hard to achieve that high degree of topic relevance again in 2014. The next issue of National Outlook will include details of the educational topics to be addressed. f you are interested in participating in the CFAA Rental Housing Conference as a speaker, or a sponsor, please contact CFAA today at admin@cfaa-fcapi.org. To attend, please check the CFAA website at www.cfaa-fcapi.org. Registration will open in February.

Continued from page 22

the federal government will have fulfilled its commitment and funding will end. At the same time, the mortgages on the properties will generally be paid off, which was supposed to allow housing groups to continue to provide affordable housing without further subsidies. However, many social housing providers and advocacy groups are concerned that the expiry of the operating agreements will leave them with insufficient funding. A Federal/Provincial/ Territorial (F/P/T) Working Group is currently examining the financial viability of the existing social housing stock across Canada as the operating agreements mature. On November 21, 2013, Candice Bergen, Minister of State for Social Development, announced that when their operating agreements mature, social housing groups can retain certain surplus money they set aside in past years through Subsidy Surplus Funds, when the federal assistance exceeded the amount required. Those Funds are limited to $500 per unit. NEW NAME IN BC RENTAL HOUSING In July, the BC Apartment Owners and Managers Association (BCAOMA) and the Rental Owners and Managers Society (ROMS BC) merged as the Rental Housing Council of B.C..to create a unified voice for the rental housing industry in BC.

Through Power Smart, Kay Four Properties have upgraded some of their buildings with high-efficiency boilers, compact fluorescent interior lighting, new windows, high-efficiency washing machines and smart-block heater plugs in parking lots. Avrom Charach, Vice-President, said, “Power Smart lets us make our buildings better while slowing rent increases for tenants, and reducing our carbon footprint as much as we would by taking 120 cars off the road every year.” RENTAL HOUSING COMPENSATION & BENEFITS SURVEY AVAILABLE The 2013 CFAA Compensation and Benefits Survey is now available for purchase. The 2013 survey includes much more information than was included in the 2009 and 2011 surveys. The participants cover a wide range of company sizes, right across Canada. The survey covers 17 cities and areas across Canada, including 12 building-based positions, and 15 head office positions. Either actual data or statistical estimates are given for all building positions in all cities or regions.

As of November 19, the uniﬁed voice, has a new name: LandlordBC.

Owners, property managers or Human Resources heads can use the survey as a recruitment tool, to offer compensation and beneﬁts packages that are competitive within their speciﬁc markets. The results are set out within cities by building size for building superintendents (i.e. resident managers), and by portfolio size for property managers and regional managers.

Andrew Bekes, Chair of LandlordBC, said, “Our goal is to educate landlords and professionalize the industry, while ensuring tenants have access to safe, quality housing.”

The survey can also be used for human resources policy matters, including establishing salary levels or deciding on regional differentials.

LandlordBC’s new website is scheduled to be unveiled in the New Year. Go to www.landlordbc.ca to sign up for more updates.

The report can be purchased nationally or separately for one or more of the surveyed centres. This year the surveyed centres/ areas include Halifax, Maritimes (excluding Halifax), Quebec City, Montreal, Ottawa, Kingston, Toronto & GTA, Hamilton/ Burlington, Waterloo Region, London, Ontario-smaller centres, Winnipeg, Saskatoon & Regina, Edmonton, Calgary, Vancouver and Victoria. Pricing information and an order form are available in the Compensation Survey Section of the CFAA website at www.cfaa-fcapi.org.

POWER SMART OPPORTUNITY FOR MANITOBA LANDLORDS Manitoba’s Power Smart programs are helping homes and businesses reduce their energy consumption. According to Municipal Government Minister Stan Struthers, Power Smart investments have saved more than 545 megawatts of electricity since 1999. Manitoba Hydro offers 27 programs for homes and businesses including ﬁnancing, rebates and technical support for energy efﬁcient building upgrades and appliances.

To inquire about the survey or purchase it, please contact Spencer Kenney at 613-235-0101 or at admin@cfaa-fcapi.org.

Rental Housing Housing Business Business 33 Rental

Mike Chopowick, President and CEO of FRPO

34 december 2013

[ FRPO ]

Federation of Rentalhousing Providers of Ontario The Federation of Rental-housing Providers of Ontario (FRPO) is the largest apartment association in English-speaking Canada. It represents more than 2,200 rental owners and managers with more than 350,000 rental suites. FRPO was established in 1985 when the new provincial government proposed major changes to rent control, including making it permanent. Ontario landlords created FRPO to be the voice for private sector rental owners and property management companies on that vital issue. Advocacy to the Ontario government remains FRPOâ&#x20AC;&#x2122;s main objective. FRPO continually advocates legislative and regulatory rules that serve landlordsâ&#x20AC;&#x2122; best interests. Fortunately, the public policies needed to serve those interests very often also serve the interests of tenants and taxpayers, who also benefit from a healthy and competitive rental housing industry. FRPO has taken on numerous other tasks to help fulfill its main objective.

Rental Housing Business 35

[ FRPO ]

Membership services To advocate most effectively, an association must represent many of the members of its industry. To attract and retain members, FRPO has evolved into a full-service association that helps landlords and property managers in a variety of ways. FRPO provides legal information to its membership and helps landlords to find the best solutions for resolving disputes with tenants. FRPO offers education and training sessions to help ensure that property owners, managers and staff have a good working knowledge of the Residential Tenancies Act, and what is required to provide top-level customer service and rental housing operations. FRPO runs networking events that enable members to share information with peers and engage in business

development. Members also have access to exclusive services and discounts from trusted industry suppliers. Public image Advocacy is more likely to be successful if the level of public support for an industry is higher rather than lower. In that respect, residential landlords have a challenge, due to public perceptions. The problematic public attitude is largely due to the impact of the pre-1997 rent control regime on building maintenance standards, the ultra-competitive nature of the rental business, and the income challenges faced by tenants. “FRPO’s mandate is to uphold public policies that support the availability of quality housing and protect the rights of private sector landlords and

“FRPO has been able to achieve results due to the support of its members. Landlords understand that positive regulatory results require long-term investment of time and resources.” – Mike Chopowick, Interim President and CEO

36 december 2013

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[ FRPO ]

property managers,” said Mike Chopowick, interim President and CEO. “It is our goal to educate elected officials, the general public and the media on the quality of our people and the rental properties they provide.” Dealings between landlords and tenants can occasionally be confrontational, which creates political issues for the sector. Over the past decade, FRPO has made progress in elevating the public image of rental housing providers and changing the public perception of rental housing. One of its key initiatives has been the Certified Rental Building (CRB) program, an accreditation program for apartment buildings that enforces rigorous quality and environmental standards. FRPO’s education and information sessions help enhance customer service in rental housing. Its efforts to promote the value of renting have contributed to making apartment living a preferred lifestyle choice for many households across Ontario. FRPO enhances the industry’s image by highlighting how landlords and property management staff give back to their communities, while also contributing to jobs and economic growth. FRPO has worked diligently to reach out to a wider audience through its aggressive social media presence, creating additional avenues for advocating policy positions and solutions for a stronger rental housing sector. The association uses a variety of tools to communicate on behalf of its landlords, including policy reports and submissions, news releases, a bi-monthly FE magazine, email bulletins and social media. “FRPO places great importance on effective and persuasive communications,” said Mike. “FRPO’s advocacy is strengthened by ensuring dialogue with politicians takes place in easy to understand terms. We emphasize how landlords’ positions can complement politicians’ agendas and improve the quality of constituents’ lives.” Effective advocacy FRPO has focused on proposing solutions to problems in rental housing policy, such as harmful rent control, the broken eviction process, or overreaching enforcement of the fire code and property standard bylaws. FRPO puts in the time to develop thoughtful, alternative solutions to governments, rather than simply pushing a list of grievances and complaints. FRPO has worked diligently to build itself into a credible, believable organization, as well as avoiding extreme arguments. Maintaining a trustworthy relationship with government officials requires ensuring that the information being communicated is accurate, factual and relevant. “The key to FRPO’s advocacy and lobbying efforts is providing a compelling reason to do (or not to do) something that impacts rental housing,” said Mike. “FRPO’s success as a lobby group for landlords is largely due to our efforts to foster good, constructive relationships with elected officials and government staff.”

38 december 2013

FRPO’s advocacy work includes meeting directly with the Minister of Housing and the Premier, and meeting with individual Members of Provincial Parliament (MPPs) from all major parties. FRPO also consults with government officials at the Landlord and Tenant Board, the Human Rights Commission, the Fire Marshall’s Office and the Ontario Energy Board. “Effective advocacy is always a challenge, and it takes time to get results,” said Mike. “FRPO has been able to achieve results due to the support of its members. Landlords understand that positive regulatory results require a long-term investment of time and resources. FRPO’s members know that springing a request upon the government and expecting immediate results simply doesn’t work.” Industry solidarity Industry solidarity is essential for advocacy and growth. If an industry is fragmented and speaks with many voices, then governments will hear what they want to hear and can either take their desired action or engage in no action at all. FRPO has been effective at reaching out to city-based associations to ensure that they have a voice in the formulation of FRPO’s policies and that they maintain consistent messaging. FRPO is a strong supporter of the Canadian Federation of Apartment Associations (CFAA), the sole national voice for the rental housing industry that speaks with the federal government. Over the years, FRPO’s leaders have guided and supported CFAA as it has grown to become a formidable lobbying voice for the rental housing industry on a national level. Conclusion Mike Chopowick is currently the interim President and CEO of FRPO. He graduated from the University of Toronto with a degree in urban geography and planning. Instead of entering into urban planning, his career led him to government relations. Mike worked first as a policy advisor in the Ontario Ministry of Finance, and then as a lobbyist for the Toronto Board of Trade. During his time with those organizations, he learned about the inner workings of the federal, provincial and municipal governments. In 2006, he joined FRPO as manager of policy, where he is responsible for lobbying the government on a wide range of issues that affect Ontario’s rental housing providers. “Everything FRPO does contributes to its central goal of advocating effectively for landlords,” said Mike. “FRPO’s services and programs help landlords provide quality rental housing and enhance professionalism, which in turn leads to more respect for our industry by the government and better advocacy results. RHB Editorial written by Canadian Federation of Apartment Associations.

CFAA RENTALOwners, HOUSING CONFERENCE 2014 da’s Voice for Apartment Managers and Association Executives

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For more details, visit our website www.cfaa-fcapi.org or call CFAA: 613.235.0101

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Organized by CFAA with the support of the Rental Housing Council of BC.

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Rental Housing Business 39

[ Tax ]

Property Assessments and the Gross Income Multiplier By Sara Moosavi

’Tis the season to be jolly! As many Canadians begin to prepare for the holiday season, assessment authorities across the nation are in the midst of mailing out Assessment Notices for the 2014 tax year. The designated assessing authority or authorities (some provinces may have more than one) in each respective province are responsible for accurately assessing and classifying your property in compliance with the applicable statutes and regulations as set by each respective province.

The chart below lists important dates relating to Provincial Assessment Cycles. If you have any questions about your property taxes or assessment you can contact your municipal/local taxing authority. Provincial assessment cycles Schedule

Valuation date

Notices

Appeal deadlines

Assessing authority

Annual assessments

July 1, 2013

Notices sent December 31, 2013

January 31, 2014

BC Assessment

Annual assessments

July 1, 2013

Notices sent early January, 2014

60 days from mailing

Designated Municipal Assessors

4 Year assessment cycles 2013 – 2016

January 1, 2012

Notices sent mid January, 2014

60 days from mailing

Saskatchewan Assessment Management Agency

2 Year assessment cycles 2014 – 2015

April 1, 2012

Notices sent between May 1June 26, 2013

June 23, 2014

Manitoba Assessment Services & City of Winnipeg

4 Year assessment cycles 2013 – 2016

January 1, 2012

Notices sent September – December, 2013

March 31, 2014

Municipal Property Assessment Corporation

3 Year assessment cycles (Municipalities vary*)

18 months prior (July 1, 2010, 2012 – 2014 cycle*)

Notices sent November – December of prior year

April 30th (first year of reassessment cycle only*)

Various Municipalities

Annual assessments

January 1, 2012

Notices sent March 1, 2014

30 days from mailing

Service New Brunswick Property Assessment Services

Annual assessments

January 1, 2012

Notices sent early January 2014

21 days from mailing

Provincial Valuation Services Corporation

Annual assessments

January 1, 2012

Notices sent 1st week of May 2014 90 days from mailing

Provincial Government

3 Year assessment cycles 2013 – 2015

January 1, 2011

Notices sent September – October 2013

Municipal Assessment Agency & City of St. Johns

40 december 2013

30 days from mailing

[ Tax ]

The method generally used by assessing authorities to value multi-residential property is the Gross Income Multiplier (GIM) approach. To determine the GIM, the assessing authorities review sales of comparable properties and divide the sale price by the gross annual rental income to develop an average multiplier. The GIM reflects the relationship among the income, condition, and sometimes the expense ratio of the property, and sale prices of comparables. The assessing authorities then apply the GIM to the Gross Income of the property, which is determined from the Typical Annual Rent (TAR) and suite mixes of the property.

an inaccurate assessment is increased if the assessment is higher than a realistic sale, or if an appeal has not been undertaken for several years.

For more information, contact: Sara Moosavi, Associate, Cushman & Wakefield Ltd., 1.416.359.2641, sara.moosavi@ca.cushwake.com, www.cushmanwakefield.com/knowledge

And what better way to kick off the season than to reduce your tax liability, perhaps significantly. RHB

THE EVOLUTION OF NEWS RHB Newsreel is your connection to the apartment industry audience!

It is important to note that the GIM valuation method is employed on a mass appraisal basis. If a property owner files an appeal relating to the assessment of multi-residential property, that creates an opportunity to discover and address any issues and discrepancies specific to that property as compared to the data applied in the mass appraisal GIM valuation. For instance, the actual rent and suite mixes, expense ratios, income and vacancy rates specific to the property at hand should be reviewed to ensure that an accurate assessment has been made. It would be worthwhile to take a moment out of this busy time of the year to make note of the Property Assessment Notice(s) issued to you and ask yourself these two questions: 1) could you have sold your property for its assessed value on the valuation date listed on your Property Assessment Notice? and 2) Have you ever filed an assessment appeal for your property? If the answer to either of these questions is ‘no’, then you may want to consider appealing your property’s assessment. In both situations, an appeal may function as a valuable gateway for the property owner to access the information utilized by their assessing authority to value their property in order to ensure the correctness and accuracy of the information. As implied in the questions, the likelihood of

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Rental Housing Business 41

[ Safety ]

Safety is the First Priority By Doug Brunsdon

In building-based property management, safety should be the first priority. It is everyoneâ&#x20AC;&#x2122;s responsibility to adhere to all aspects of safety in our roles. For property managers this includes focusing on safety for our staff, our contractors, our customers and our properties.

reviews, audits, and, if necessary, investigations, to ensure that the workplace is safe. These ideas will help to create a culture of safety in your organization that encompasses all staff.

We all have a responsibility to address safety concerns in a timely manner. We have not only requirements imposed by law, but also a moral obligation to ensure that we operate in a safe manner. As a senior manager, the worst thing that I could ever have to do would be to call someone to explain that a loved one would not be coming home from work that day.

Safety for customers and visitors

Safety for our staff We need to provide a safe working environment for our staff. The best place to start is arranging for suitable training, including orientation training to introduce new staff so that they are aware of potential hazards and the location of emergency equipment. That includes current staff being transferred to new sites. We must also address on-going training needs. Many of our industry groups and service providers offer training courses for employees (e.g. WHMIS, fall protection, asbestos and first aid). Health and Safety committees (including management and front line staff) provide for a safer work environment that minimizes dangerous situations and is free from harassment. Check all equipment regularly for damage or wear. Ensure that the â&#x20AC;&#x153;back of houseâ&#x20AC;? areas (boiler rooms, storage closet, workshop areas, garbage rooms) are clean and free of clutter. Hold internal training programs,

42 december 2013

Our customers (that is our tenants) and their guests deserve to live in a safe environment. They trust us to manage our properties in this way. To do this, we ensure that our life safety systems are operational at all times and are being serviced, checked and recorded properly. We should take care to address slip hazards, monitor our emergency and safety systems (window restrictors, fire panels, smoke detectors, emergency lighting, generators, etc.), as they are often our first line of defense. Processes should be in place to address all of these items (e.g. salt and sanding logs, monthly signoffs on fire extinguishers, electric logs, emergency generator testing, etc.). Adhering to these processes keep the properties safe, meet legal requirements and prepare for an emergency. If an accident does take place we can often defend ourselves by showing we were diligent. New landlords may be well served by having a consultant review and audit your new building and operating procedures, and then assist you to design these important safety processes into your ongoing operations. Safety for our contractors As owners or senior managers we need to ensure that we create a safe environment for our contractors to work. If we see that a contractor may

[ Safety ]

not be operating in a safe manner, we need to bring this to the attention of the person responsible for dealing with the contractor. Examples of this would be seeing a landscaper using equipment improperly or roofers not being properly harnessed. These situations should be reported to the project manager responsible for dealing with the trade for this specific project. As a rental housing employee, if you see a potential life threatening situation, then express your concerns to the person in charge of the workers and also report the issue to your manager so it can be documented and addressed. However, unqualified people should not give direction to a contractor on how to do their job, as this can lead to serious legal issues. Safety at our properties There is a lot of safety equipment with detailed processes at our properties. Many of the life safety systems need routine maintenance and checks to be completed in order to ensure that they are working properly. The checks must be documented. In most areas, there are very strict regulations enforce compliance. Ensuring that the life safety systems are current, operational and properly checked could mean the difference between life and death in the case of an extreme emergency. In the case of a fire, the fire panels must be

fully operational. You need to be able to provide the necessary information to the emergency workers so they can minimize the damage, deal with a crisis and save lives. In emergency situations, there is never a second chance. We must be prepared all the time. Some areas to focus upon include life safety system checks, fire logs, fire extinguisher inspections, ESA logs for electrical work, emergency generator tests, smoke detector and CO sensor checks, and window restrictor checks. It is our responsibility to address safety from a business and a moral perspective. Many property managers have an excellent track record for safety at multi-residential property. By being proactive and diligent, we will continue to create safe environments for our staff, contractors, and customers. RHB Doug Brunsdon has worked in the real estate industry for over 25 years. He has extensive experience in property management and asset management across Canada, including managing an 18,000 unit residential rental portfolio and a mixed commercial portfolio of over 13.5 million square feet. Doug also has extensive experience with mortgage financing and turning around challenged properties. He can be reached at doug_brunsdon@yahoo.com.

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Rental Housing Business 43

COAST TO COAST PM Expo December 4-6 Metro Toronto Convention Centre

WRAMA â&#x20AC;&#x201C; Dinner Seminar January 8 Golfâ&#x20AC;&#x2122;s Steak House and Seafood

Participate with over 24,000 attendees and business leaders, 450 speakers and 1050 exhibits as you discover the leading strategies and solutions for managing and operating your buildings. Visit http://www.pmexpo.com for registration and more details.

The Waterloo Regional Apartment Management Association is hosting a dinner seminar at Golfâ&#x20AC;&#x2122;s Steakhouse and Seafood. This month CMHC will present the Annual Housing Market Report. Visit the WRAMA website for details www.wrama.com.

FRPO â&#x20AC;&#x201C; MAC Awards Gala December 5

FRPO/GTAA â&#x20AC;&#x201C; Multifamily Operations Seminar January 9 Westin Prince Hotel

The Federation of Rental-housing Providers of Ontario is hosting the annual Marketing, Achievement & Construction (M.A.C.) Awards Gala. The Awards Gala is sold out. LPMA â&#x20AC;&#x201C; Christmas Party December 10 RiverBend Golf Club The London Property Managers Association is hosting its Christmas Party at the RiverBend Golf Club from 5 â&#x20AC;&#x201C; 8 PM. This is a free, members-only event. Please bring an unwrapped toy for the Salvation Army Toy Drive. Visit the LPMA website for details www.lpma.ca. IPOANS â&#x20AC;&#x201C; Solid Waste Management Workshop December 18 The Investment Property Owners Association of Nova Scotia is hosting a Solid Waste Management Workshop. Visit the IPOANS website for details www.ipoans.ca. PPMA â&#x20AC;&#x201C; Holiday Luncheon December 18 Hotel Fort Garry The Professional Property Managers Association (of Manitoba) is hosting a Holiday Luncheon at the Hotel Fort Garry. Visit the PPMA website for detaila at www.ppmamanitoba.com.

The Federation of Rental-housing Providers of Ontario and Greater Toronto Apartment Association are hosting a Multifamily Operations Seminar. This half day event features three segments including Super Safety, Tenant vs Tenant and Media Relations tips and best practices. For information, visit the FRPO website at www.frpo.org. PPMA â&#x20AC;&#x201C; General Membership Meeting January 15 Masonic Memorial Temple The Professional Property Managers Association (of Manitoba) hosts its General Membership Meetings on the third Wednesday of the month. Visit the PPMA website for details www.ppmamanitoba.com. CMHC Rental Survey Breakfast January 23 7:30AM - 9:30AM The Old Mill This annual event presented by CMHC will be sharing some key findings from its October 2013 Rental Market Survey for the Greater Toronto Area. The presentation will conclude with an outlook of where rental markets are headed in 2014 and beyond. Registration will open in mid December. For information, visit the FRPO website at www.frpo.org.

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GTAA - Chairman’s Luncheon in support of the GTAA Charitable Foundation February 11 David Duncan House The Greater Toronto Apartment Association is hosting the Chairman’s Luncheon in support of the GTAA Charitable Foundation at the David Duncan House from 12:00 pm - 2:30 pm. For information, visit the GTAA website at www.gtaaonline.com/.

EOLO – 2014 Spring Networking Event March 26 Centurion Conference Centre The Eastern Ontario Landlord Organization is hosting its 2014 Spring Networking Event at the Centurion Conference Centre. This event is members only. Visit the EOLO website at www.eolo.ca for details about contacting EOLO regarding membership. HDAA – 2014 Trade Show March 26 Michelangelo Banquet Centre

WRAMA – Dinner Seminar February 12 Golf’s Steak House and Seafood The Waterloo Regional Apartment Management Association is hosting a dinner seminar at Golf’s Steakhouse and Seafood. Topic and speakers are to be determined. Visit the WRAMA website for details www.wrama.com. PPMA – Annual General Meeting February 19 Masonic Memorial Temple The Professional Property Managers Association (of Manitoba) is hosting its Annual General Meeting on at the Masonic Memorial Temple. Visit the PPMA website for details www.ppmamanitoba.com. 2014 Real Estate Conference in the Sun March 2 – 9, 2014 The Rental Housing Council of British Columbia is host partner of the 2014 Real Estate Conference in the Sun, in Playa de Carmen, Mexico. For information, visit the conference website at www.recis.ca.

The Hamilton District Apartment Association is hosting its 2014 Trade Show at the Michelangelo Banquet Centre. The trade show is free to attend. Visit the HDAA website for details www.hamiltonapartmentassociation.ca/ CFAA – 2014 Rental Housing Conference June 9-11, 2014 Sheraton Vancouver Wall Centre Hotel, Vancouver BC The conference will open on Monday, June 9, in the afternoon, with a tour of innovative rental buildings in Vancouver. On Tuesday, June 10, speakers will address investment in rental housing. The keynote speaker will be Benjamin Tal of CIBC World Markets, who is always very well received. On Tuesday evening delegates are invited to a social event. The conference will wrap up on Wednesday, June 11, with a day focusing on Rental Operations. If you are interested in participating in the CFAA conference as a speaker or a sponsor, please contact CFAA today at admin@cfaa-fcapi.org. If you want to attend as a delegate, please watch the CFAA website at www.cfaa-fcapi.org for updates. Registration will open in February 2014.

http://www.cfaa-fcapi.org/ Tel: (613) 235-0101 | Fax: (613) 238-0101 Email: admin@cfaa-fcapi.org Rental Housing Business 45

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AIRD & BERLIS LLP www.airdberlis.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 ALL PROFESSIONAL TRADES www.allprofessionaltrades.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 BYNG GROUP www.thebynggroup.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 CARMA INDUSTRIES www.carmaindustries.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 THE CERTIFIED GROUP www.thecertifiedgroup.ca . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 CFAA www.cfaa-fcapi.org . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 CMLS FINANCIAL www.cmls.ca . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 COINAMATIC www.coinamatic.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IBC + 32 + 46 CUSHMAN & WAKEFIELD www.cushwake.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 + 31 ENBRIDGE www.enbridge.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 ENERCARE CONNECTIONS www.enercare.ca . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 FIRST NATIONAL www.firstnational.ca . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 GOTTARENT www.gottarent.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . OBC INSTITUTIONAL MORTGAGE CAPITAL www.imcapital.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 MULTITECH 2000 CONTRACTING www.multitech2000.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 NOBLE www.noble.ca . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 + 44 PRIMECORP www.primecorp.ca . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 RENTAL HOUSING BUSINESS NEWSREEL www.rentalhousingbusiness.ca . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 WYSE METER SOLUTIONS www.wysemeter.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8+9+37 YARDI www.yardi.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IFC+23 Bolded advertisers are CFAA Allied Members

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