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WWW MI DNOR T HER NAPPL I ANC E C OM


pg.

Contents

24

JANUARY / FEBRUARY 2010

Features THE MOST IMPORTANT FORM A LANDLORD WILL SERVE ON A TENANT By Martin P. Zarnett

12 FRPO WINS CSAE AWARD CRB Program Recognized for Standards

Departments 2010 CFAA

PRESIDENT’S PERSPECTIVE

Rental Housing Conference

Vacancy Rates Going Up in Short Term?

38

By Vince Brescia

SURPRISES IN RENTAL HOUSING COMPENSATION SURVEY

CFAA REPORT

6 A National Housing Strategy May be in the Works

39

14 CONNECTED... Skyline Apartment REIT Adopts Atria Networks High-Speed Internet Service

21

By John Dickie

TEST CASE ON LMR IS GOOD FOR LANDLORDS Landlord Keeps LMR if “Tenant” Refuses to Take Possession

8 LEGISLATIVE UPDATE

10

By Joe Hoffer

40

FRPO MEMBER PROFILE: CLV GROUP

FRPO 2009 MAC AWARDS

INDUSTRY STRATEGY RETREAT

By Mike Chopowick

Recognizing Rental Industry Excellence

Held along with NMHC Apartment Strategies Conference

24

42

FRPO BULLETIN WRAP-UP & UPCOMING EVENTS

CANADA’S LARGEST FOOD DRIVE Landlords and tenants work together to help the hungry on Tuesday, April 13th

36

45 Cover: Award Winner Arthur Weisz pg.

24

CSAE Award pg.

16

14

FRPO 2010 Retreat

pg.

42

CFAA Rental Housing Conference pg.

38


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President’s Perspective Vacancy Rates Going Up in Short Term? By Vince Brescia

E

ach year at the end of the year, the industry benefits from new data from several sources on changing market conditions, notably Altus Group’s and CMHC’s respective Rental Market Reports, and economist Will Dunning provides an annual forcast. CMHC also prepares a market update and forecast specific to the rental industry for FRPO’s annual CMHC breakfast. As usual, it was an informative look at variety of factors that have affected the rental market in the short term, and a forecast as to what will happen next year.

Fair Exchange

January / February 2010

Vince Brescia, FRPO President

6

For most markets in Ontario, vacancy rates have been going up, and are forecast to continue increasing. Paul Fish of the Altus Group says “a key factor has been first time homebuyers leaving the apartment base, with low interest rates being a major driver.” “The first place it shows up is in higher availability” says Fish. CMHC forecasts vacancy rates to go up in most markets in Ontario. One market notably bucking the trend in CMHC’s forecast is the Waterloo/Guelph area, which is forecast to have a decline in its vacancy rate from 3.3% to 3.1%. Ottawa and Kingston continue to have the lowest vacancy rates and are not forecast to have major increases in vacancy rates: with a high percentage of government labour force, it is not surprising that these markets have remained tighter. London’s vacancy rate is now quite high at 5%, and expected to continue to rise. Several years of a high level of apartment completions are a major factor affecting the London market. The changing economy has also changed where the vacancies are occurring in the rental stock. According to Paul Fish, they are seeing significant impacts in downtown areas in Toronto where there are large numbers of condominium completions, particularly west Toronto. Another new trend is that availability rates are going up fast at the high end of the market. “Three bedroom vacancies are rising faster than one bedroom, probably because they are more affected by new home buyers” says Fish. “And there is higher vacancy rates in Class A buildings, where the higher rents are.” The latter is not an unexpected impact of a slowing economy.


The experienced lawyers you can count on From acquisitions, dispositions and financing, re-development and intensification, to tax and regulatory matters – Aird & Berlis LLP is actively engaged in all aspects of the rental housing industry.

t h e v o i c e o f t h e Fe d e ra t i o n o f Rental-housing Providers of Ontario

A PUBLICATION OF:

We have extensive expertise in the range of multifaceted legal issues that affect you. Rely on A&B to provide seamless, timely and cost-effective practical solutions to any multi-residential property issue. For more information, please contact: Robert Doumani T 416.865.3060 E rdoumani@airdberlis.com

Partnership. Results. Success.®

Brookfield Place, 181 Bay Street, Suite 1800, Toronto, ON M5J 2T9 T 416.863.1500 F 416.863.1515 W www.airdberlis.com

EDITOR: Mike Chopowick • FRPO e-mail: mchopowick@frpo.org toll free: 1-877-688-1960 phone: 416-385-1100 x 21 fax: 416-385-7112 www.frpo.org 20 Upjohn Rd., Suite 105 Toronto, Ontario M3B 2V9 ADVERTISING & SALES: Christine Tonus • Mediapeach email: christine@mediapeach.com phone: 905-952-2224 x32 fax: 905-952-0826 www.mediapeach.com/fe 171 Main Street South, Suite 5, Newmarket, Ontario L3Y 3Y9 SUBSCRIPTIONS & ADDRESS CHANGE: Lynzi Michal • FRPO e-mail: lmichal@@frpo.org toll free: 1-877-688-1960 phone: 416-385-1100 x 22 fax: 416-385-7112

DESIGNED AND PRINTED BY: Looking out a little longer, there may be some reasons to be more optimistic. Most economists are forecasting the economy to continue to recover. As this happens, governments will begin raising interest rates. Both factors will work together to improve the demand for rental housing, and to improve the relative affordability of rental housing. Paul Fish summarized the long term perspective quite well: “apartments are still relatively inexpensive in Ontario: new construction still can’t come close to the cost of the existing product, so it is positioned well for the future”. F

FRPO IS A MEMBER OF:

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


A National

Housing May be in the Works By John Dickie, President, Canadian Federation of Apartment Associations

A

t the moment Canada has no national housing strategy, but that may change in the next year or two. Bill C-304 would require the federal Minister responsible for housing to establish a national housing strategy, through a conference with the provincial housing ministers, human rights groups, representatives of municipalities and aboriginal communities and housing providers. Bill C-304 is a private member’s bill tabled by Libby Davies, the NDP MP for Vancouver East. Normally one would not expect a private member’s Bill to proceed very far. However, Bill C-304 has the support of the Liberals, NDP and Bloc Quebecois, and in this minority Parliament, it may well be enacted. If enacted, the Bill will require the Minister to convene a conference within 180 days in order to develop standards and objectives for a national housing strategy, and programs to carry it out, and to produce targets for the commencement of the programs. As well, the consultations done for the conference and the submissions could easily form the basis

for more vigorous action on housing if the government changes at any point in the next few years. The Bill would mandate that the housing strategy ensure the availability of housing that, among other things: a) “is secure, adequate, affordable, accessible, and not-for-profit in the case of those who cannot otherwise afford it”; and (b) “includes notfor-profit housing cooperatives, special-needs housing and housing that allows senior citizens to remain in their homes as long as possible.” In November 2009, the Canadian Federation of Apartment Associations (CFAA) addressed the Human Resources, Skills and Social Development Committee on Bill C304. CFAA expressed support for a national housing strategy, but criticized the prescriptive elements of the Bill. CFAA submitted that a national housing strategy ought to contain direct assistance for tenants, such as portable housing allowances. We also stressed that drawing more private


Strategy capital into the rental market would ments for the strategy, and a focus on be a very important public policy goal, housing as a human right. and that requires a rebalancing of the tax system so that the tax treatment of Besides CFAA, the witnesses were tenants and rental housing is Michael Shapcott of the Wellesley improved to come closer to the Institute, members of the Federation favourable tax treatment provided to of Municipalities of Canada (FCM) owner-occupiers. By those policies and representatives of the Canadian both tenants and landlords can be Housing and Renewal Association, made better off, at less the Assembly of First CFAA pointed Nations, and the cost to the taxpayer. E v a n g e l i c a l out that As well, the Bill origiFellowship of Canada. private sector nally spoke only of Except for CFAA, all housing government and abothe witnesses strongly riginal participants in providers need supported Bill C-304 the conference. CFAA as presented. to be part of pointed out that the strategy, private sector housing CFAA will monitor providers need to be and should be the status of Bill Cpart of the strategy, 304 as part of our onincluded in the and should be included going efforts to creation of in the creation of the prevent moves toward strategy. The Bill was the over-building of the strategy. amended to include social housing such as both private sector housing providers occurred in many areas in the early and non-profit housing providers as 1990s, while CFAA seeks improved participants in the conference. Other conditions for both landlords and amendments added a focus on allevitenants through direct assistance to ating homelessness to the requiretenants and tax reforms. F


Legislative Update Bill 235, Energy Consumer Protection Act, 2009

Status: Debated in 2nd Reading, December 10th 2009 • New suite-metering (submetering) rules proposed The province introduced new legislation yesterday that would, if passed: • •

Set new customer standards for energy contract retailing practices Enable individual suite metering (submetering) in apartment buildings, which gives tenants more control over energy costs. Grant the Ontario Energy Board more authority to set policies on security deposits and shutting off a customer’s electricity.

Part III of Bill 235 outlines new rules for suite meters. A suite meter is defined as a unit smart meter or unit sub-meter, both of which are installed in a unit of a multi-unit complex and are not connected to a bulk meter. In summary it proposes the following:

• •

Fair Exchange

January / February 2010

10

Enables mandatory installation of sub meters in new residential buildings and voluntary installation in existing buildings Requires consent from sitting tenants Establishes a framework for rent reduction if a tenant agrees to suite metering Requires prospective new tenants to be given prescribed information on suite energy use

Subjects suite-metering providers to rules paralleling local distribution companies (LDCs) concerning fee regulation, licensing, security deposits and disconnections Requires Landlords to meet certain energy efficiency standards for appliances and suites

Bill 235 would repeal and replace Part VIII of the Residential Tenancies Act that deals with smart meters. FRPO’s main concern is that many of the important detailed provisions in this legislation are left to be developed in regulations, which can be introduced or changed at anytime without debate in the legislature. Requirements for information to be provided to tenants, energy efficiency standards for units related to suitemetering and new regulatory powers to limit what qualifies for an AGI if individual meters are installed, are among important concerns FRPO has with Bill 235.

Access to Justice Act, 2006 Status: Law Society’s Review of Paralegal Licensing Exemptions Threatens Rights of Landlords and Property Managers While FRPO supports the efforts of the province to regulate paralegals in Ontario, it is critical that landlords and property managers have the right to represent themselves at Landlord Tenant Board hearings, and be able to complete all necessary Board forms and documents on behalf of their employers.

Currently, under what is known as the “Single Employer Exemption”, property management staff, when party to an application as landlords as defined under the Residential Tenancies Act, can represent themselves at hearings, and be exempt from the requirement to be a licensed paralegal. With over 50,000 applications made to the Landlord Tenant Board by landlords annually, this exemption is crucial to the efficient and timely operation of the Board’s adjudication system. A New Loophole Against Landlords Unfortunately, the new paralegal licensing requirements are being used as a loophole against landlords, and landlords who are unable to properly explain the reason for their exemption are faced with unfair adjournments and delays. Efforts to impose paralegal licensing requirements on property management staff who are party to an application as landlords are even more unfair and unjust considering tenants and legal aid staff are exempt from the paralegal licensing requirements. The Law Society has assured FRPO it will not proceed with any further changes without proper consultation with the industry. If you have any concerns about this issue, or feel your legal rights have been violated due to the paralegal licensing issue, please contact FRPO’s Manager of Policy at 416-385-1100 ext 21, or mchopowick@frpo.org. F


The Voice of the Federation of Rental-housing Providers of Ontario

11


The

By Martin P. Zarnett

MOST IMPORTANT

FORM a

Landlord

Disclaimer: This article is not intended to and does not provide legal advice

T

Fair Exchange

January / February 2010

he most important Form that a Landlord will ever serve on a Tenant is a Notice of Rent Increase (NORI). A NORI can be in the form of Form N1, N2 or N3.

12

A Form N2 relates to a unit that is partially exempt from certain rent control provisions of the Residential Tenancies Act. A Form N3 is a Notice to Increase the Rent and/or charges for Care Services and Meals in relation to care homes as defined in Part IX of the Act. The comments in this article relate specifically to the Form N1; as once a Tenancy has been established, the ability of the Landlord to increase the rent is dependent upon the service of a proper and lawful Notice of Rent Increase. In 2007, the Court of Appeal for Ontario in the Price v. Turnbull’s Grove Inc. decision determined that a rent increase taken that did not comply with the mandatory notice requirements of the Act, was not

will Serve

on a

merely unlawful, it was a nullity. The impact of this decision means that if a Landlord serves a NORI that does not comply with the legislation, it is void.

Section 116 of the Residential Tenancies Act (RTA), which is substantially similar to Section 127 of the previous legislation, provides that a Landlord must give a Tenant a NORI prior to increasing the rent charged to a Tenant. It could be argued that the Court of Appeal leaves open the right of the Landlord to serve a valid NORI based on a previously served void NORI. However, based on the language in Price, it is not expected that this would be the result of a case on point as described below.

Rent Increases Could be Void The “statutory amnesty” that was supposed to provide protection to Landlords with respect to NORIs is doubtful. The harsh language of subsection of 116(4) provides that an increase in rent is void if the Landlord has not given the NORI required by the RTA.

Tenant

If such a NORI is void, the rent would revert back to the last lawful rent. If a NORI is given based on a previously served void Notice, the amount of the increase in all likelihood, if a guideline increase is given for each rent increase, would be greater than guideline, meaning that a Notice of Rent Increase based on a void NORI would also itself be void on the basis that the rent increase is larger than permitted by law contrary to Section 120 which provides that no Landlord may increase the rent charged to a Tenant by more than the guideline amount. Many Landlords use software systems which print an “N1 Attachment”. The addition to the NORI of this N1 Attachment as one form voids a NORI and could jeopardize rent increases. In the reported Landlord and Tenant Board decision in TSL-03635, the Landlord and Tenant Board examined and reviewed the effect of a NORI that contained a Form N1 Attachment. The addition of the language of the “N1 Attachment” attached to the Form N1 is not the regulated wording provided by


the Landlord and Tenant Board. This Board Member followed the decision of other Board Members made in 2003 and determined that the NORI was void because the Form did not substantially comply with the Form approved by the Board because it contained additions that contradict and confuse the approved Form.

Even if increases have not been previously taken, a Landlord cannot catch up the increases. A Landlord is only permitted to increase the rent based on guideline.

In that case, the Landlord’s Application for arrears of rent based on the increased rent was dismissed meaning that the Landlord’s rent base was the old rent base. Because the legal maximum rent provisions pursuant to the Rent Control Act were abolished under the Residential Tenancies Act, even if increases have not been previously taken, a Landlord cannot catch up the increases. A Landlord is only permitted to increase the rent based on guideline. The Board commented that the submission by the Landlord that this Form of N1 is the one generated by the software that most large Landlords use is an unsatisfactory defence to the issues raised by the Tenant.

N1 Forms Must be Perfect The legal rent is the basis of a Landlord’s valuation of his or her property. While vacancy decontrol permits a Landlord and Tenant to set a new rent at any level in a new tenancy, for an existing sitting Tenant, the legal rent that increases over time adds the true measure of increased value to the Landlord’s investment. The Court of Appeal appears to take the position that a Form N1 must be perfect from every perspective and Landlords who fail to serve proper Notice that is not perfect, will suffer the consequence being a void Notice of Rent Increase. That is why the Notice of Rent Increase is the most important Form the Landlord will ever serve on a Tenant. F Copyright 2010 – Martin P. Zarnett May only be used with written permission.

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F R P O

WINS CSAE Award CRB Program Recognized for Standards

E

ach year, the Canadian Society of Association Executives (CSAE) is proud to recognize and honour those who have demonstrated significant accomplishments, exemplary leadership and tireless commitment to Canada’s not-for-profit community.

Fair Exchange

January / February 2010

The “Associations Make A Better Canada Awards” recognize CSAE member organizations that have initiated innovative projects resulting in positive outcomes in the areas of public education/information, public affairs/government relations, professional development and education, and ethical, technical or professional standards.

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FRPO won the 2009 award for Ethical, Technical or Professional Standards for its commitment to raising the standards of the rental housing industry and profession through the Certified Rental Building (CRB) Program.

Ted Whitehead (left) and Vince Brescia (centre) of FRPO accept a CSAE Award recognizing the CRB Program.

About the Certified Rental Building Program The Certified Rental Building Program was developed by the Federation of Rental-Housing Providers of Ontario (FRPO) to provide tenants with a quality assurance alternative they can count on when selecting their rental apartment home. It is the only multi-residential apartment building “certification” program in North America, which assures tenants they are choosing a well-run, wellmanaged building each and every time they select their home in a Certified Rental Building. The program ensures that each certified building practices over 38 established building management and customer service standards. After officially launching in 2008, FRPO’s Certified Rental Building (CRB) Program now has over 1,000 apartment buildings, with over 80,000 suites, enrolled in this quality assurance initiative. F


Associate Members

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MARKET ANALYSIS & RESEARCH Altus Group Veritas Valuation Inc.

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FRPO member profile:

Fair Exchange

•

January / February 2010

CLV GROUP

16

Based in: Ottawa Number of Rental Housing Units: 7,000 Year Started: 1960 From residential rentals to commercial leasing, CLV offers a comprehensive approach to real estate services By Mike Chopowick


R

anging from quaint heritage apartments to amenity filled high-rises, CLV Group is known for having one of the largest and most diverse selections of residential rentals in Ottawa & across Ontario. Its residential portfolio includes a wide range of rental options including townhomes, apartments and fully furnished suites. CLV Group's commercial portfolio includes plazas and malls, industrial, retail, and office buildings.

CLV Group started in 1960 as Levinson-Viner and in 1998 merged with Commvesco to become CLV Group. As a merged company, CLV Group was able to offer a wide range of real estate services including Property Management, Real Estate Brokerage, Financial Services and Construction Services. The focus of CLV Group is to provide outstanding customer service to all residents and building owners.

The Voice of the Federation of Rental-housing Providers of Ontario

CLV Staff L-R: Rhoda Caplan (Rental Agent), Kate Sandu (Leasing Administrator), John Tweedie (Property Manager), John Kola (Maintenance), Jeff Barrett(Superintendent), Christine Barrett (Janitorial Staff), Bob Wright(Superintendent), Gerry Jutras (Site Manger) and Greg McDowall (Maintenance).

17


With successful and established divisions concentrating in Residential Rentals, Real Estate Sales and Leasing, Property Management, Hotel Management and Mortgage Brokerage, CLV Group provides "Complete Real Estate Solutions" to meet a range of real estate needs. Ottawa CMA Average 2-Bedroom Rents $1,300 $1,200

2008 2009

$1,100

FE Magazine visited the superb Avalon Park rental complex in Ottawa, and toured the property and buildings, meeting staff and tenants who are proud to be a part of the CLV community. CLV’s Dave Nevins, who is also an active member of the Eastern Ontario Landlord Organization (EOLO), took some time to answer some of FE’s questions about the company’s operations.

FE: How does CLV maintain high levels of customer service to tenants? Dave: Everyone at CLV Group is focused on our clients (residents). Whether it is our Rental Consultants, Maintenance Staff, Leasing Administrators or Managers, all are focused on putting the needs and living comfort of our residents first. By understanding their needs and through our professionally trained maintenance staff, we are able to ensure a hassle free lifestyle.

$1,000 $900 $800 $700

Sa nd

y

Ot ta

w a CM Do A Hi w nt ll /L ow ow Gl n eb er e to Al / w Ol ta n d Vi Ot st ta a /H w a Ca unt Ch rli in C lu ng at b to N e ow n n w / Iri Ed / H s in in to b. / M nb W ur es an g tb or or Pa o rk /H Gl am ou pt ce on st er / C Va um nie be r Ne rla pe nd an /K an at a

$600

Source: CMHC 2009 Market Survey

CLV Group is one of the largest private property management firms in Ottawa servicing both the National Capital Region and numerous other Ontario communities. The company provides an expansive portfolio of almost 7,000 apartments and townhomes throughout Ontario. Some of the major markets include Ottawa, Kingston, Toronto, Hamilton, Guelph, St. Catherines and London. CLV employs approximately 120 people its residential rental division. CLV's Avalon Park Rental Community in Ottawa

FE: And clearly CLV does more than provide quality rental housing. Can you further describe CLV’s commitment to providing "Complete Real Estate Solutions"? Dave: By providing Complete Real Estate Solutions, CLV Group is able to build long lasting relationships with clients. From the time that someone rents an apartment to the moment that they purchase their first home, we help them with all the little details that can sometimes be overwhelming. By providing an extraordinarily wide range of apartments, we are able to find that perfect apartment for either the first time renter or for someone who is downsizing. When it comes time to purchase a home, our experienced Residential Sales Representatives will help you find that perfect home and our in-house mortgage brokerage will help with the financing.

FE: How does CLV serve other needs in the real estate sector? Dave: With our expertise in investment properties, successful real estate investors turn to CLV Group to help buy, sell and manage their assets. Further, whether you own your home or an investment property, our Construction Division is able to complete any size renovation project, ranging from redoing a bathroom to retrofitting a large high-rise apartment building. Starting your


own business – no problem. CLV Group has commercial leasing experts to help you find that perfect storefront or office space to help your business succeed. CLV Group truly is the only phone number you require for all your real estate needs.

FE: CLV’s rental communities, such as Avalon Park, seem very well-maintained. How are your properties managed to ensure high quality of buildings and property? Dave: In essence, it is a result of the client focused culture mixed with our numerous years of experience and continuous education in industry related fields. We really concentrate hard on being at the leading edge in maintenance standards, energy efficiency and life safety systems.

FE: Is there any special training or support given to staff? Dave: Yes, everyone goes through formal and informal training as an employee of CLV Group. We have a mentoring program which provides on the job training from other experienced employees. There are also job-specific courses and related programs that staff take to ensure we can offer the best possible service to our clients.

Ottawa CMA 2008 1.4% 1.3% 0.8% 1.1% 1.1% 1.9% 1.6% 0.7% 0.7% 3.3% 1.1% 2.2%

2009 1.5% 0.8% 1.4% 1.1% 2.0% 1.4% 1.2% 0.8% 0.8% 2.6% 0.9% 2.7%

FE: How important is location as a factor for attracting tenants (proximity to jobs, schools, shopping, etc..)?

FE: Does CLV engage its tenants through any charity initiatives or community projects? If so, please describe them. Dave: Absolutely. Each year CLV Group participates in an excellent charitable program held by the Ottawa Food Bank to help feed hungry people in Ottawa. The staff at CLV Group go door to door within the buildings we manage and our residents have been wonderful in pitching in with food donations towards this great cause. Our residents can also be proud to know that over the past 10 years, CLV Group’s

Gerry Jutras and Rhoda Caplan review suite floor plans

The Voice of the Federation of Rental-housing Providers of Ontario

Average Vacancy Ottawa CMA Downtown Sandy Hill / Lowertown Glebe / Old Ottawa South Alta Vista / Hunt Club Carlington / Iris Chinatown / Hiltonburg New Edinb. / Manor Park Westboro / Hampton Vanier Gloucester / Cumberland Nepean / Kanata

Dave: Location is obviously an important factor when choosing a place to live and CLV Group has one of the widest community selections to choose from across Ontario. When we first meet a potential resident, our rental consultants try to find out all important details to help determine which neighbourhood would make for an ideal home. Just as important, providing top customer service is an ideal which CLV Group subscribes to wherever we manage; therefore, residents are sure to find excellent choices with CLV Group.

19


annual charity golf tournament has raised almost $1,000,000 going directly to Ottawa based charities and programs. One such program was a Park and Playground build at Ledbury Park here in Ottawa. CLV believes in giving back to the community and we do so through many institutions like the Boys and Girls Club, Habitat for Humanity, Easter Seals, Youth Services Bureau, Snow Suit Fund and many more.

FE: In general, average vacancy rates in Ontario are higher than they were a decade ago. How is CLV adapting to a more competitive rental market? Dave: In general we have focused for a long time on providing the best apartments and townhomes within each neighbourhood we manage, coupled with top notch customer service. We believe that by doing those two things, even in a highly competitive market, CLV Group maintains a strong competitive advantage. We are constantly monitoring our competition and strive to make our apartments the best in each neighbourhood.

Fair Exchange

January / February 2010

FE: What is CLV’s outlook for the rental housing market in the Ottawa area and Eastern Ontario?

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Dave: Ottawa and much of Eastern Ontario have managed to maintain a very strong rental housing market despite the downturn in other Ontario markets. We believe that the future will continue to be progressively positive while remaining a balanced rental market. We think it is an opportune time for renters due to the fact that there are many excellent choices out there and likewise, for property owners, we believe that the rental market will experience healthy growth as the economy strengthens.

FE: What are CLV’s future plans in Ontario or Canada, or outlook for growth? Dave: CLV Group is always looking to invest into new buildings, neighbour-

hoods and cities. We have a large property management platform which we wish to grow.

FE: Does CLV own residential rental property, or is the company focused on property management? Dave: CLV Group not only owns many buildings but has provided Professional Property Management Services to a variety of third party owners such as Canada Lands Corporation, Bank of Nova Scotia, Royal Bank, CMHC, InterRent REIT, as well as many other private investors.

FE: What is the strategic focus of CLV in the residential rental market (geographic, demographic, building size, rent level, etc…)? Dave: Our strategic focus is to either purchase under managed real estate properties and reposition them; and, to pursue new property management contracts where we can utilize our expertise to create value for owners.

FE: For many Ontario households, the renting lifestyle presents distinct advantages over homeownership. In what ways does CLV promote the advantages of renting to its prospective tenants? Dave: It really is a carefree lifestyle and CLV Group is always working hard to make sure it really is just that. We understand that when someone rents an apartment or townhome, they expect a certain level of service and it all comes down to how well we can deliver that service. Again, as mentioned before, a high level of customer service is our primary focus and much of what we do including training, our organizational structure, and, our corporate philosophies are all centered around providing that carefree lifestyle. Our low turnover rate and high level of word of mouth referrals are reflective of just that. F


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ne of Canada’s fastestgrowing residential Real Estate Investment Trusts, Skyline Apartment REIT, has chosen Atria Network’s fibre Internet service to help power its expanding portfolio of rental properties. Since its inception a decade ago, Skyline Apartment REIT has assembled one of Canada’s largest and highest quality multi-unit residential and commercial real estate investment portfolios, with first class properties in Guelph, Cambridge, Kitchener, Thunder Bay, Southampton and City of Temiskaming Shores. With Skyline Apartment REIT’s properties valued at $450 million, and given its current growth rate, Skyline Apartment REIT expects to soon rank among the top ten multi-residential real estate companies in terms of value and units held, ranked by Canadian Apartment Magazine.

Skyline Apartment REIT’s corporate vision is clear: “Driven by a desire to be the very best at pursuing steady,

The Voice of the Federation of Rental-housing Providers of Ontario

Skyline Apartment REIT consists of 88 properties, with 5,574 residential units and over 782,000 square feet of commercial space, in 33 communities across four provinces. Over 700 investors in eight Canadian provinces participate in the Skyline Apartment REIT portfolio.

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calculated Real Estate growth grounded in fundamentally sound properties, Skyline takes pride in its ability to continually identify accretive real estate investment opportunities to complement its growing REIT portfolio.” A key element to delivering on Skyline Apartment REIT’s vision is a rock solid, world class IT system for managing its growing business, including its over 5,000 rent paying residential and commercial tenants. According to Director of IT, Peter Marshall, Skyline’s Apartment REIT’s decision one year ago to switch to Atria Networks’ fibre-based metro ethernet service from a previous telco service provider was driven by “our need for higher performance and reliability at our Guelph head office.” As soon as Marshall had joined Skyline Apartment REIT in 2008, he had found that the company needed faster network service speed and reliability that its then-current network service provider could deliver.

Fair Exchange

January / February 2010

Marshall had already had prior positive experience with Atria Networks, which made him receptive to considering a switch in network services. At his previous employer, an Internet publishing company, Marshall had used Atria’s fibre-based metro ethernet service and was impressed with its speed, reliability and low cost.

22

Said Marshall, “At Skyline Apartment REIT, we had had challenges to meet with our (existing telco provided) network service. We are small, but we needed speed to operate our property management tool, and move it over to the sales force.”

And Skyline Apartment REIT was certainly having problems with the telco’s service. In the afternoons, as all the telco’s customers tended to put the heaviest demands on its network, Marshall found that Skyline Apartment REIT’s network speed slowed to a crawl. He metered the service speed coming into the company to verify it was not an internal problem. “At times we couldn’t even get 0.16 kb per second of inbound bandwidth. When we called their service desk, the technician said the problem was with our internal network, not their service. But I was pinging, and it was the telco’s bandwidth that was the issue. The next day, a different technician admitted it was their problem and temporarily fixed it. We had the same issue two days in a row.” Excuses from the telco included ‘rainy weather’ interfering with the wiring and connections. “Staff who had to do Internet based rent rolls had to stay late to complete their work, due to the old network’s speed and reliability problems,” Marshall says. “We switched because of Atria’s competitive pricing, with over twice the speed of the telco service, plus existing fibre network coverage in Guelph, with no demarcation fee. That was a big bonus. “And our support relationship is more personal. With their team, you don’t just go into a help desk queue waiting to talk to people who don’t know who you are. That’s an extra bonus,” he added. Marshall said that Skyline Apartment REIT ran the new service in parallel with the old telco’s networking service

for two months. They tested the new service for about a month, ran benchmarks and speed tests, and load tests. Marshall had two weeks to make a case for the new service to Skyline management, to convincingly prove that Atria was working as promised. The next week, he did a ‘soft transition,’ with both the Atria and the telco services running at the same time, so that users could experience both services. The following week Skyline Apartment REIT switched entirely to Atria, updated the users VPN configurations, and Marshall made sure that all staff could connect on the new service. Adds Marshall, “The installation of the system took a couple of hours when the Atria technicians came by,” but easing the transition of the users into it was done gently over the course of a month. Skyline Apartment REIT’s management sees additional future benefits from the new service. “We see that there is more metro ethernet in downtown Guelph, so we may work with Atria to offer the service to our tenants,” said Marshall. As Skyline Apartment REIT continues growing, Marshall prefers to grow with Atria. “One thing I really like about metro ethernet networking over ADSL and cable, is that upload speeds are as fast as download speeds.” The other non-optical fibre services often only offer half the upload speed compared to download speed. “With our new network, speed is burstable and we can increase speed at a moment’s notice; with other services, we’d have to add another line,” he added. F


Recognizing Rental Industry Excellence

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n December 3, 2009 FRPO held its ninth annual awards gala in Toronto. FRPO’s MAC (Marketing, Achievement and Construction) Awards recognize success and quality in Ontario’s rental housing sector. FRPO also presented its first Lifetime Achievement Award to Dr. Arthur Weisz, Chairman of The Effort Trust Company in Hamilton. FRPO’s awards gala continues to grow, with record attendance of over 640 guests, and a record 110 award submissions. Keynote speakers include entrepreneur TV show host Kevin O’Leary, and Ontario PC Leader Tim Hudak, MPP.

Fair Exchange

January / February 2010

Award Presenters included: Peter Friedmann (CMHC); Greg Stokes (Rogers Cable Communications); Gord Alderdice, (Coinamatic Canada Inc.); Brenda Brockbank, (TD Business Banking); Lynn Topp (Yardi Systems).

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FRPO Thanks our Sponsors: Primary Event Sponsor • Yardi Systems Event Sponsors • Coinamatic Canada Inc • Rogers Cable Communications • TD Commercial Banking Audio Visual Sponsors • The Canadian Apartment Investment Conference • Enbridge • Renters News • The Toronto Star

Cocktail Sponsors • Aird & Berlis LLP • HSI Solutions • My Ideal Home Network • Park Property Management Inc • Stratacon Coat check sponsor • SPAR Property Consultants White Wine Sponsors • Suite Collections

Red Wine Sponsors • Metcap Living Award Sponsor • CMHC Water Sponsor • O’Shanter Property Management Chocolate Sponsor • Cohen Highly LLP Photography Sponsor • The Byng Group

Dinner Sponsors • Ace Painting & Decorating Company • CMHC • Union Gas Centrepiece Sponsor • Sun Life Financial

Primary Event Sponsor The Voice of the Federation of Rental-housing Providers of Ontario

Event Sponsors

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Carissa Drohan, Jason Ashdown (Skyline)

Lifetime Achievement Award

Property Management Advertising Award - Corporate Branding

Arthur Weisz – Effort Trust

Fair Exchange

January / February 2010

Skyline

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Effort Trust Chairman Dr. Arthur Weisz received FRPO’s first Lifetime Achievement Award. Arthur Weisz was born in Hungary and survived WWII and the Holocaust, escaping post-war Communist rule by fleeing to Austria with his wife and young son. He immigrated to Canada in 1951, then soon began a career in real estate, founding his own company within two years of arriving in Canada. Today, The Effort Trust Company, based in Hamilton, ON, encompasses real estate brokerage, asset management, property development and financial services and is one of the largest property managers in Ontario with over 10,000 residential apartment suites and over six million sq. ft. of commercial real estate in its portfolio.

“To receive a pat on the back from our peers is a welcome compliment and testament to the dedication and efforts of our staff ”, said Roy (Jason) Ashdown, Skyline’s Co-Founder and COO. Marissa Morettin, Director of Investor Relations added, “We are thrilled to be acknowledged as an industry leader when it comes to our creative vision, philosophies and our in-house design and marketing talent. We particularly recognize our graphic designer Carissa Drohan, who helped conceptualize this campaign and bring the idea to fruition.” Other Nominees: Concert Realty Services Ltd.; Sterling Karamar Property Management


Sheryl Erenberg (Sheryl Erenberg & Associates) and Samantha Mashni (Greenwin)

Property Management Advertising Award – Single Project

Walter Pecnik, Corina Nica (Greenrock)

Curb Appeal Award Greenrock – 45 & 57-93 Balliol St

Greenwin Property Management – 88 Erskine

Other nominees: Morguard Residential Inc.; Vertica Resident Services

The Curb Appeal award recognizes exterior property improvements, gardens, landscaping, structural design, functionality and aesthetics of the entrance to the building. Consideration is given to the overall curb appeal and it’s relevancy to residents and surrounding neighborhood. Ivan Murgic, Greenrock’s Vice President, Operations, said, “At this property, we had to waterproof the parking garage, which meant the landscaping had to be removed. We have always taken pride in our buildings’ exteriors, but we decided to take this opportunity to take our curb appeal further. We hired Janet Rosenberg + Associates for the design, Halsall Associates as consulting engineers and Macdero Construction to do the work, and we are very proud of the winning result.” Other Nominees: Minto; Skyline

The Voice of the Federation of Rental-housing Providers of Ontario

Trying to stand out from Toronto’s Yonge & Eglinton competitive rental market is no easy task. Greenwin’s marketing consultant Sheryl Erenberg said, “Our ad’s target market is young professional singles 20-35. We presented the many building and neighbourhood features in an eye-catching way without crowding the page with a boring features list. We highlighted the lifestyle of living in this building in this exceptional neighborhood, instead of the building exterior.”

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Fair Exchange

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Amin Rahim (Vertica)

Property Management Website Award – Corporate Branding

Property Management Website Award – Single Project

CAPREIT – www.caprent.com

Vertica Resident Services – www.10lisa.ca

This award recognizes a company that has demonstrated creativity, design, content, use of graphics, ease of navigation and overall utilization of medium. CAPREIT effectively used its website to highlight its professional management, high quality rental communities, while promoting the renting lifestyle. Mark Kenny, CAPREIT Chief Operations Officer said, “FRPO’s MAC Awards is of an extremely high caliber and improves each year. To be recognized is something that gives us great pride. The acknowledgement of our dedicated staff and their work, and our quality accommodations, is a great accomplishment. Recognition of the hard work and staff dedication is well deserved by everyone involved.”

Vertica was named the winner for this innovative and tenant friendly website. Director of Marketing, Amin Rahim said, “Vertica and our clients, were honoured to be nominated. We feel that the 10 Lisa website truly reflects the calibre of this distinguished Brampton property and the type of discerning resident to whom it appeals. With a focus on detail, great thought was put into the placement of key words, images, colour schemes and creating the logo and branding for the website (www.10lisa.ca) and marketing materials.”

January / February 2010

Trish Macpherson (CAPREIT)

Other Nominees: Skyline; Park Property

Other Nominees: GWL Realty Advisors; Park Property


Anthony Perlingieri (GWL Realty Advisors)

Pat Arnett (Morguard Residential)

Suite Renovation Under $5,000

GWL Realty Advisors – Bretton Place

Morguard Residential – 1477 Mississauga Valley

"GWL Realty Advisors and our client are honoured to receive the 2009 Lobby Renovation of the Year award,” said Anthony Perlingieri, Multi-Residential Asset Manager. “This lobby complements the overall character of its upscale urban address. The design incorporated existing elements and increased plus aesthetic appeal and environmental impact.”

Says District Manager Pat Arnett, “This Award represents recognition for the hard work and dedication the Morguard team has shown to help achieve a marketing vision we have for renting suites in the future. This suite renovation is more than just installing new kitchen cabinetry and ceramic floors. It offers a selection of choices to help tenants pick the right finishes for their new home. By furnishing a model suite, we provide different options for how they may utilize their space. We believe this approach will be worthwhile to create future growth for our multi-residential operations.”

Other Nominees: Realstar; Skyline

Other Nominees: Briarlane Rental Management, 10 Walmer & 3400 Keele

The Voice of the Federation of Rental-housing Providers of Ontario

Lobby Renovation of the Year

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Ira Kaufman (CAPREIT)

Suite Renovation Over $5,000

Rental Development of the Year

CAPREIT – 355 St. Clair West

Concert Properties Ltd. – Tapestry Village Gate West

This renovation was desperately needed given the previous condition of the suite. The previous tenant had lived in the suite for 35 years and no major work had been completed during the tenancy. A major investment was made with renovations to the entrance, kitchen, bathrooms and bedrooms. The quality of the suite was significantly enhanced. Other Nominees: GWL Realty Advisors; Morguard

This award recognizes a company that has achieved excellence in the development of a new rental housing project. This award is judged impartially on the overall creativity and suite design, curb appeal, and efficient use of space and functionality of the floor plan. Concert Properties Ltd. was named the winner. President Brian McCauley said, “This illustrates Concert’s commitment to redefining seniors rental retirement communities across Canada to meet the changing needs of today’s seniors. We and our co-owners OMERS and Sun Life Assurance Company of Canada are proud to be recognized by FRPO.”

Fair Exchange

January / February 2010

Back: Kelly Wilson, Brian McCauley, David Kent Front: Jennifer Collier, Hilary Spriggs, Julie Paterson, Carol Hrabi, Indira Escobar, Liza Williams, Angela Sue (Concert Properties Ltd.)

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Other Nominees: The Tricar Group; Park Property


Cosimo Marini (Oxford Properties Group)

Jennifer McPhail, Jason Ashdown (Skyline)

Outstanding Community Service

Oxford Properties

Skyline

Oxford’s Director, Global Asset Management, Kevan Gorrie, said “This is recognition for progress we’ve made in terms of sustainability, particularly on the energy conservation front. Instead of looking at individual projects, we considered the entire picture to aggressively reduce our carbon footprint by targeting energy consumption which covered lighting, controls, boiler plant retrofits, water tune-ups and more, for nine of our Ontario buildings. It was designed to bring these buildings to the next level in terms of energy efficiency. The results have exceeded our expectations.”

Skyline, through many innovative and creative initiatives, supported many community causes such as Big Brothers Big Sisters of Guelph; Habitat for Humanity and Onward Willow. Skyline is a chief sponsor of the Guelph Storm OHL Team, and donates space in many of its buildings to the Red Cross for on-site support services. Ashdown added, “Skyline has long believed that community involvement and charitable work is important. We are always looking for ways to positively impact all our communities.” Other Nominees: Boardwalk; Vertica Resident Services

Other Nominees: GWL Realty Advisors; CAPREIT

The Voice of the Federation of Rental-housing Providers of Ontario

Environmental Award of Excellence

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Fair Exchange

January / February 2010

Kelly Brazeau (Greenwin)

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Marc Monette (McArthur Properties)

Leasing Professional of the Year

Property Manager of the Year

Kelly Brazeau – Greenwin Property Management

Marc Monette – McArthur Properties

“Kelly emerged as the most dedicated, profoundly up-beat and enthusiastic team member at 1240 and 1244 Donald Street Apartments in Ottawa,” says Greenwin marketing consultant Sheryl Erenberg. “She relates effortlessly to the many different cultures that come to rent apartments – many of whom are new Canadians and enjoys an impressive referral rate from existing tenants because she genuinely likes learning about them, their families and their lives. Her closing ratio throughout the year was exceptional, considering these challenges: garage drilling and restoration was underway for eight months of the year, and half of all elevators in the buildings were being restored and out of service four months of the year.”

Said McArthur’s Senior Vice President/General Manager Bert Steenburgh, “Through Marc Monnette’s management style, he motivated and engaged his staff beyond our expectations. He embodies professionalism because he says what he means and means what he says, which has also earned respect from tenants. He never forgets that our job is to serve our tenants.”

Other Nominees: Mary Ferlisi (CAPREIT); John Burns (Vertica)

Other Nominees: Petronela Ionescu (Metcap); Johann Isopp (Realstar)


Rhodora Dorado (CAPREIT)

Cindy Stockdale, Jamie McDonald (Realstar Management)

Customer Service Award of Excellence

Rhodora Dorado - CAPREIT

Realstar Management Partnership

This award recognizes an employee, nominated by an employer, who has demonstrated excellence and professionalism in building management. Rhodora Dorado, a recent immigrant from the Philippines, considers herself a “people” person. Over the past year, there was a high 22% turnover rate, but Rhodora worked diligently to fill the vacant units and 81% of the units were back-to-back rentals. Rhodora has achieved a 99.7% occupancy rate, a testament to her hard work and dedication. When a severe storm in August caused a power outage and left all of the residents at 33 Eastmount without power for 26 hours, Rhodara visited all 211 units to offer assistance and make sure everyone is okay.

This award recognizes high standards of resident care in rental housing. From high maintenance standards, to building a community atmosphere, to staff courtesy, Realstar leads the way in providing quality services to tenants, starting right from the application process to throughout their tenure. Realstar also won the FRPO Customer Service Award in 2007 & 2008.

Other Nominees: Lucy Norocea (O’Shanter); Wayne Gilpin (Park Property)

Other Nominees: Concert Property; Metcap

The Voice of the Federation of Rental-housing Providers of Ontario

Resident Manager of the Year

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Oxford recognizes our responsibility to develop, operate and invest in sustainable buildings – buildings that conserve natural resources, minimize environmental impacts and promote a healthy environment for occupants.

Oxford Properties is a proud recipient of FRPO’s 2009 “Environmental Award of Excellence”


Canada’s Largest

FOOD DRIVE Landlords and tenants work together to help the hungry on Tuesday, April 13th

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n April 13, 2010, rental housing owners, managers and tenants will work together to give back to their communities and collect food for the 2010 Spring H.O.P.E. (Housing Owners & People Everywhere) Food Drive.

Last year, volunteers at over 2,000 rental properties across Ontario went door-to-door to collect food for local food banks. Almost 500,000 lbs of food was collected for food banks in Barrie, Cambridge, Hamilton, Kingston, London, Niagara, Ottawa, Toronto and Waterloo. “We’ve come a long way in ten years”, says Bonnie Hoy, one of the founding organizers of this food drive. “When we first started, no one gave our industry or cause credit for making an effort to put food on the table for those in need. Now, we’ve become the largest door-to-door food drive in the country and food banks rely heavily on our participation to meet their targets”.

Fair Exchange

January / February 2010

Last year in Waterloo, FRPO organized a Food Drive Launch event with WRAMA (Waterloo Regional Apartment Management Association), at 55 William St E, a CAPREIT apartment building. In exchange for donating non-perishable food items, tenants received coffee and breakfast. The tenants and CAP REIT staff collected over 400 lbs of food at that one building alone for the Food Bank of Waterloo. Similar events will be held this year. F

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Glenn Trachsel (President, WRAMA), at FRPO’s 2009 Food Drive Launch event at CAPREIT’s 55 William St E apartment building.

To participate and get your enrolment form, contact Lynzi Michal today at lmichal@frpo.org or 416 385 1100 x23, or visit www.springhopefooddrive.ca.


No flat lines. Just healthy bottom lines. MetCap Living knows the importance of your property investment. With over 20 years experience in professional property management, we have the expertise to boost your NOI. Ask us how we have done it for others in our $1 Billion property portfolio. From Marketing, Leasing, Accounting, Utilities and Site Management, we tailor our services to your needs, while providing your residents with great living experiences in friendly neighbourhoods. Ensure the health of your bottom line, contact: Anne Meinschenk Director, New Business Development 416.993.4305  anne.meinschenk@metcap.com

www.metcap.com


2010 CFAA

Rental Housing

Windsor, October 2009

Kingston, March 2009

ruary 2009 Ottawa, Feb

A profound

advantage

Competitively distinguish your buildings Increase tenant satisfaction

Attract new tenants more quickly London, October 2009

Toronto, Jun

e 2009

Conference T

June 14-15, Vancouver B.C.

he Canadian Federation of Apartment Associations (CFAA) is holding its 2010 Rental Housing Conference in Vancouver, British Columbia, from June 14 to 15, 2010.

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Rental housing executives, investors, property managers, individual landlords, maintenance managers and realtors will all benefit from attending this year’s event. Held with the support of the B.C. Apartment Owners Association (BCAOMA) and the Rental Owners and Managers Society of B.C. (ROMS BC), the conference will feature seminars and discussions on both energy efficiency and investment & management. Management Topics Include: •

Scarboroug

h, Nov. 2009

• • •

Attracting and keeping tenants in the digital era The economic outlook Ancillary revenue Dealing with the HST and tax deferral

Toronto, November 2009

Energy Efficiency Topics Include:

www.crbprogram.org

w•

Ted Whitehead,Director of Certification 416-385-1100 twhitehead@crbprogram.org

• • •

Sub-metering New technologies Energy conservation approaches Waste disposal & Recycling

The CFAA conference is the ideal venue for networking and information sharing for landlords and property managers. There are also many sponsorship opportunities available for supplier companies interested in promoting themselves to industry decision-makers nationwide. F The 2010 CFAA conference will be held at the Coast Plaza Hotel & Suites in Vancouver. Special rates are available for those who register early or for both days. To register, or to become a sponsor for this year’s conference, please see the conference section of CFAA’s website, www.cfaa-fcapi.org, or contact Erin Wallace, CFAA Event Coordinator at events@cfaafcapi.org or tel: (613) 235-0101.


SURPRISES

in Rental Housing Compensation Survey

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andlords in Ontario have a new tool to help manage their compensation costs, including their benefits costs. The CFAA Rental Housing Compensation Survey has confirmed some suppositions about the pay practices of rental housing providers in Greater Toronto and other centres across Ontario, and has also revealed some surprises. For many categories of employees, organizations in Toronto with fewer than 50 employees pay higher salaries than larger organizations. For a number of categories of employees, employees in high-end buildings tend be paid more than staff who work in mid-tier ...organizations to properties or affordable properties.

in Toronto with fewer than 50 employees pay higher salaries than larger organizations.

Building size plays a role in both base salary and total compensation for many categories of employees, particularly in Toronto and Ottawa. That trend was also present in Hamilton, Waterloo Region and Kingston, but not as strongly. In London the trend appeared for building superintendents, but not for other positions.

Compensation reports are available for Greater Toronto, Hamilton and area, Waterloo Region, London, Kingston and Ottawa and for other cities across Canada. A Human Resources & Benefits report about company-wide pay policies, and about benefits plans such as pensions, group health benefits and medical, dental, life and disability insurance is available for Ontario, and for Alberta, BC and Canada as a whole. The CFAA Compensation survey has been endorsed by FRPO and by Canada’s national landlords. To find out about the report pricing or other details, or to order the compensation survey, please go to CFAA’s website at cfaa-fcapi.org, or contact Erin Wallace via email at admin@cfaa-fcapi.org or by telephone at (613) 235-0101. F

9 Toronto, August 200

Toronto, June 200 9

Toronto, Jun e 2009

A profound

advantage

Improve occupancy rates Increase professionalism of staff

Enhance employee moral Streamline daily operations

Stratford, November 2009

Mississauga, November 2009

er 2009 Hamilton, Novemb

www.crbprogram.org Ted Whitehead,Director of Certification 416-385-1100 twhitehead@crbprogram.org


Test Case on LMR is

GOOD FOR LANDLORDS Landlord Keeps LMR if “Tenant” Refuses to Take Possession By Joe Hoffer, Cohen Highley LLP

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e recently argued in Divisional Court that the LTB had no jurisdiction to order reimbursement of Last Month’s Rent (LMR) in circumstances where a tenant repudiates a lease prior to commencement of the term. The Divisional Court agreed.

The case in question involved interpretation by the Court of the standard LPMA; GTAA; WRAMA and FRPO leases and rental application forms. Drewlo Holdings Ltd. of London accepted a rental application in July, which resulted in the transfer of the “contract deposit” to LMR under the terms of the rental application. The term of the lease was to start in September, but in mid-July the tenant said she would not take possession and demanded a return of her deposit. The landlord was able to re-rent the unit for Sept. 1, but refused to return the deposit. The LTB held the applicant was a “prospective” tenant entitled to a return of the deposit because the Landlord had not “given vacant possession” (s. 107 RTA). The Landlord appealed to the Divisional Court, not because of the amount involved in the specific case but because of the poor precedent it set for the industry and its impact on the validity of provisions of the rental application and lease used by most landlords in Ontario.

Fair Exchange

January / February 2010

It was argued on behalf of the landlord that the money in question was “rent” as defined in the RTA as it was given in exchange for the right to occupy the rental unit in question, thus making the payee a “tenant”, not a “prospective tenant”. The court agreed that upon acceptance of the rental application and the conversion of the “contract deposit” to LMR, the person was a “tenant” and that the Landlord did not breach the RTA by retaining the LMR deposit. The principles in this case should apply regardless of whether the tenant actually signs a lease as the key factor is the legal obligation created upon acceptance of the rental application and the transfer of the contract deposit to payment of LMR.

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The court also noted that s. 106 of the RTA, which requires that LMR be applied only to the last month of the tenancy, was also not breached by the landlord since the tenancy never actually took effect. Only the “tenancy agreement” took effect and then only until such time as the tenant repudiated it. The RTA deals with residential tenancies and not with “anticipatory breach” of leases. If the tenant wants the deposit back, she will have to sue in Small Claims Court and at that time the Landlord is entitled to show that it is should be permitted to retain the money to offset its costs and damages arising from the tenants’ breach of contract. F A copy of the Divisional Court decision (handwritten endorsement and typed transcript) is available at the following link: www.cohenhighley.com/articles/rrb36custidio.pdf


Brookfield Financial Aird & Berlis LLP

BMO Capital Markets Real Estate Inc.

Brookfield Place, 181 Bay St. Suite 1800, Box 754, Toronto, ON M5J 2T9 Attention: Robert Doumani Tel: 416 863 1500 • Fax: 416 863 1515

1 First Canadian Place, 5th Floor, P.O. Box 150 Toronto, ON M5X 1H3 Attention: Drew Koivu MBA Tel: 416 359 6781 • Fax: 416 359 4639

Brookfield Place, Bay Wellington Tower P.O. Box 762, 181 Bay Street, Suite 260 Toronto, ON M5J 2T3 Atention: Colin Catherwood Tel: 416 956 5212 • Fax: 416 956 5201

Carma Industries Inc. 494 The Parkway, Peterborough, ON K9J 7L9 Attention: Rick Williams Tel: 888 298 3336 • Fax: 705 743 3575

Coinamatic Canada Inc. CMHC Ontario Business Centre 100 Sheppard Ave. E, Suite 300, Toronto, ON, M2N 6Z1 Tel: 416 221 2642 • Fax: 416 218 3310

301 Matheson Boulevard West Mississauga, ON L5R 3G3 Tel: 905 755 1946 • Toll Free: 1 800 361 2646 Fax: 905 755 8885

Enbridge Gas Distribution

Energex Inc

P.O. Box 650, Scarborough, ON M1K 5E3 Attention: Rachit Bhambri Tel: 416 753 4663 • Fax: 416 495 8350

105-6091 Dyke Rd. Richmond, BC Attention: Rami Belson, President Tel: 604 448-1899

Giant Plumbing & Hardware Distributors Ltd.

Great Northern Insulation

14 Bentley Ave., Nepean ON, K2E 6T8 Attention: Andy Brule Tel: 613 723 3190 • Fax: 613 723 5733

J.D. Power and Associates 2225 Sheppard Avenue East Toronto, ON M2J 5C2 Attention: David Hanson Tel: 416 499 3033 • Fax: 416 499 6626

935 Keyes Drive, Woodstock, ON N4V 1C3 Attention: Cody Seagrist Tel: 1 800 265 1914 • cseagrist@gni.ca

Cordeiro Roofing Ltd.

Enbridge Electric Connections

343 Olivewood Rd. Toronto, ON M8Z 2Z6 Tel: 416 234 9901 • Fax: 416 234 9581 info@cordeiroroofing.com

PO Box 650, Scarborough, ON M1K 5E3 Attention: Wendy Mortson Tel: 905 747 5589 • Fax: 905 881 1732

First National Financial LP

Fuller Landau LLP

100 University Ave., North Tower, Suite 700, Toronto, ON M5J 1V6 Attention: Mr. Peter Cook Tel: 416 593 1100 • Fax: 416 593 1900

151 Bloor Street West, 12th Floor Toronto, ON M5S 1S4 Attention: Brenda Hadju Tel: 416 645 6500 • Fax: 416 645 6501

hsi solutions

Jacques Whitford

35 Carl Hall Road, Unit 3 Toronto, ON M3K 2B6 Attention: Reaud Singh, Business Tel: 416 891 6119 • Fax 416 981 4510

2009 CORPORATE MEMBERS

Marsh Canada Limited

MCAP Financial Corporation

70 University Ave, Suite 800 Toronto, ON M5J 2M4 Attention: Neil Gilbertson Tel: 416 349 6656

200 King Street West, Suite 200 Toronto, ON M5H 3T4 Attention: Leo St.Germain, Vice President Tel: 416 847 3870 • Fax: 416 368 8822

Midnorthern Appliance 137 Chrislea Drive Vaughan, ON L4L 8N6 Attention: Michael Gnat Tel: 905 850 5335 • Toll-free: 1 877 353 2850 Fax: 905 850 5348

7271 Warden Avenue, Markham, ON L3R 5X5 Attention: Chris Welch Tel: 905 474 7704 • Fax: 905 479 9326

Madhouse Advertising Inc. 176 John St. Toronto ON, M5T 1X5 Attention: Tami Kenwell Tel: 416 591-7770 • Fax: 416 596-9897

MMPI Canada/ York Communications 10 Alcorn Ave, Suite 100 Toronto, ON M4V 3A9 Tel: 416-512-3809

Reliance Home Comfort Murray & Company Limited

Penmor Mortgage

Reliance Home Comfort 2 Lansing Sq, 12th Floor Toronto ON M2J 4P8 Attention: Joanne Druce Tel: 416 499 7245 • Fax: 416 499 7095

Rogers Cable Communications 855 York Mills Road, Toronto, ON M3B 1Z1 Attention: Greg Stokes Tel: 416 446 6500 • Fax: 416 446 7416

Stratacon Rona

SOLID General Contractors Inc.

Sparkle Solutions

220 chemin du Tremblay Boucherville PQ J4B 8H7 Tel: 514 599 5900

Attention: Carlos Munoz Tel: 905 475 0707 info@solidgc.ca

2700 Steeles Avenue West, Unit 4 Concord ON L4K 3C8 Tel: 905 660 2282

Commercial Mortgage Group TD Commercial Banking 66 Wellington Street West 39th floor Toronto, ON M5K 1A2 Attention: David Gale Tel: 416 944 6400 • Fax: 416 307 8423

641 Chrislea Road, Unit 8, Woodbridge, ON L4L 8A3 Attention: Peter Mills Tel : 905 856 4001 • Fax: 905 856 1513

Toronto Star

Yardi Systems Inc.

1 Yonge Street, 4th Floor Toronto ON M5E 1E6 Attention: Grace Pastore Tel: 416 869 4248 • Fax: 416 865 3977 GPastore@thestar.ca

5925 Airport Road, Suite 510, Mississauga, ON L4V 1W1 Attention: Mr. Peter Altobelli Tel: 905 671 0315 • Fax: 905 671 9424 email: peter.altobelli@yardi.com

Wyse Meter Solutions Inc. 31 Davisville Avenue Toronto, ON M4S 1G3 Tel: 416 869 9900

The Voice of the Federation of Rental-housing Providers of Ontario

40 University Avenue, Suite 502, Capital Corporation Toronto, ON M5J 1S3 36 Toronto St., Suite 510 Toronto, ON M5C 2C5 Attention: Mr. Robert Lynch, Vice-President Attention: David Scott Tel: 416 598 0950 • Fax: 416 597 8415 Tel: 416 646 1005 • Fax: 416 646 1009

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a S uccess!

FRPO 2010

Industry Strategy Retreat Held along with NMHC Apartment Strategies Conference

F

RPO held its 2010 rental housing industry retreat on January 12, 2010, just preceding the National Multi Housing Council’s (NMHC) Apartment Strategies Conference in Boca Raton, Florida, which was held January 13-15, 2010.

Fair Exchange

January / February 2010

Twenty-five industry leaders representing Ontario’s rental housing sector participated in FRPO’s full-day strategy retreat, and provided important input on the key issues we are facing this year.

42

Some important outcomes from FRPO’s retreat: •

A range of financial and regulatory measures the industry will lobby for to mitigate the effects of the HST on landlords and tenants;

A new understanding of the long-term negative effects of the Ontario’s current rent guideline formula on the rental housing stock, and the best, practical solution for fixing the province’s rent control system;

A strategy for proceeding with an effective advocacy


Brockville

effort to fix the unfavourable and unfair property tax treatment of rental housing; •

A political strategy to ensure FRPO has proactive and meaningful participation in the next 2011 provincial election.

FRPO members who attended the NMHC conference benefitted from expert presentations on the economic and housing market outlook for 2010-2011, investment strategies, student housing issues, energy efficiency measures for rental housing, and a detailed look at how apartment markets function in the U.S., Europe and Asia. F

27,300

Peterborough

Windsor

The Voice of the Federation of Rental-housing Providers of Ontario

Simcoe

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Greystar

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Beacon Communities

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Fairfield Residential Korman Communities Signature Management LLC

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FRPO Bulletin Wrap-Up Ontario Vacancy Rate Increases to 3.5% • Average monthly rent increase is $7/month Canada Mortgage and Housing Corporation’s (CMHC) October 2009 rental survey indicates a big increase in vacancy rates in Ontario, from 2.7% in 2008 to 3.5% in 2009. Average 2-bedroom rents in new and existing structures increased from $948 to $955 in 2009, $7/month or about 0.7%. The percentage rent increase (in existing structures only) was 2.0% from October 2008 to October 2009. Highlights •

• • •

The economic downturn in industrial areas, softer employment conditions and lower homeownership costs have resulted in a decrease in rental demand A decline in Ontario’s share of new immigrants to Canada also reduced rental demand Vacancy rates increased for all bedroom types, particularly bachelor units More purpose built apartments and condominiums increased the supply, and also put upward pressure on vacancy rates Ontario’s average availability rate, which includes vacant

CMA

5-Year Trend Average Vacancy Rates-Privately Initiated Apartment Structures, 3 units and over CMA

Oct. 2005 n/a n/a 4.3% 2.4% 3.3% 4.2% 3.3% 3.3%

Oct. 2006 n/a n/a 4.3% 2.1% 3.3% 3.6% 4.1% 2.3%

Oct. 2007 3.2% 1.9% 3.5% 3.2% 2.7% 3.6% 3.7% 2.3%

Barrie Guelph Hamilton Kingston Kitchener London Oshawa Ottawa St.Catharines/ Niagara 2.7% 4.3% 4.0% Sudbury 1.6% 1.2% 6.0% Thunder Bay 4.6% 4.9% 3.8% Toronto 3.7% 3.2% 3.2% Windsor 10.3% 10.0% 12.8% Ontario Average 3.8% 3.4% 3.3%

Oct. 2008 3.5% 2.3% 3.2% 1.3% 1.8% 3.9% 4.2% 1.4%

Oct. 2009 3.8% 4.1% 4.0% 1.3% 3.3% 5.0% 4.2% 1.5%

4.3% 4.4% 0.7% 2.9% 2.2% 2.3% 2.0% 3.1% 14.6% 13.0% 2.7% 3.5%

Average 2-Bedroom Rents ($) 5-Year Trend

Oct 2005

Oct 2006

Oct 2007

Oct 2008

Oct 2009

n/a $791 $807 $811 $775 $855 $920 $736 $668 $689 $1052 $780 $903 1.5%

n/a $796 $841 $824 $790 $861 $941 $752 $706 $696 $1067 $774 $919 2.1%

$934 $824 $856 $829 $816 $877 $961 $765 $749 $709 $1061 $773 $924 2.6%

$954 $836 $880 $845 $834 $889 $995 $777 $800 $719 $1095 $772 $948 1.4%

$961 $831 $909 $856 $896 $900 $1028 $804 $830 $742 $1096 $747 $955 1.8%

Oct 2008Oct 2009

Oct 2008Oct 2009

(New & Existing Buildings)

(Existing Buildings Only)

0.7% -0.6% 3.3% 1.3% 7.4% 1.2% 3.3% 3.5% 3.8% 3.2% 0.1% -3.2% 0.7%

1.2% 1.1% 2.3% 1.7% 1.2% 1.2% 2.9% 2.2% 4.7% 2.9% 2.2% n/a 2.0%

The Voice of the Federation of Rental-housing Providers of Ontario

Barrie Hamilton Kingston Kitchener London Oshawa Ottawa St.Catharines/Niagara Sudbury Thunder Bay Toronto Windsor Ontario Average Ontario Rent Guideline

units plus units where an existing tenant has given notice to move, increased to 5.5% from 4.3% last year. Average 2-bedroom rents in the Toronto CMA increased only $1/month year-over-year, to $1,096 Subdury and Ottawa and saw the largest average 2bedroom rent increases (new and existing buildings), while Kingston and Ottawa had the lowest average vacancy rates

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New Housing Minister: Hon. Jim Bradley Premier Announces Major Cabinet Shuffle Premier Dalton McGuinty appointed the Hon. Jim Bradley as the new Minister of Municipal Affairs and Housing. Bradley takes over from Jim Watson, who recently announced his resignation to seek the Mayoralty of Ottawa this year. Minister Bradley brings tremendous depth and experience to the housing ministry, and has represented the riding of St. Catharines since being first elected there in 1977. Bradley served as Minister of the Environment under Premier Peterson from 1985-1990, where he greatly expanded the Blue Box recycling program. In the McGuinty administration, Bradley has served as Minister of Tourism, and most recently as Minister of Transportation. We look forward to a constructive and positive relationship with Minister Jim Bradley, and offer congratulations on his most recent Cabinet appointment. FRPO would also like to take this opportunity to thank Jim Watson for this approachfulness and professionalism as Minister of Municipal Affairs and Housing during his 2007-2010 term.

Information set out in Temporary Recapture of Input Tax Credits Requirement provides details to businesses to comply with the tax changes. To find out more about tax savings for businesses, visit www.ontario.ca/taxchange. For further information, please call the Canada Revenue Agency at 1 800 959 8287

Upcoming FRPO Events Energy Efficiency Rebates Webinar February 24 – 10am

Strategies for Dealing with the HST

Fair Exchange

January / February 2010

Temporary Restrictions On Input Tax Credits For Large Businesses

46

The Ontario Ministry of Revenue has announced that businesses with annual taxable supplies greater than $10 million, and certain financial institutions, will be temporarily restricted from claiming input tax credits (ITCs) for the provincial portion of the HST they pay on certain inputs: energy, except where used to produce tangible personal property for sale; certain telecommunications services; certain road vehicles and their fuel; and food, beverages and entertainment. The temporary recapture of ITCs will be in place for the first eight years that the HST is in effect. The rate of recapture will be 100 per cent for the first five years, and will then be reduced in equal increments over the following three years.

March 16 – 8am

Province-Wide Food Drive April 13

FRPO Golf Classic June 1 – Angus Glen Golf Club For more information or to register, please contact FRPO at info@frpo.org or call 1-877-688-1960.



FRPO's FE Magazine