Page 1

Vol. 12 No. 3 Jul-Aug 2019

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

The official publication of:

RENTT: Landlords’ impact on tenants’ lives Panelists examine how landlords affect tenants and their communities, government supports for tenants, being more supportive, and improving landlord-tenant relations.

CFAA’s 4th Annual Rental Housing Awards

Halifax’s red-hot multiunit residential housing boom

See the winning rental providers, suppliers, developments and renovations.

New residential rental housing developments are being built to meet the needs of Halifax’s growing population

Reshaping the housing market: Seniors opt for the big city Seniors are changing real estate trends across Canada.


How do you control utility costs?

Reduce utility consumption and costs with a built-in energy intelligence solution. Increase cost recovery with seamless resident utility billing and save money on late fees with paperless utility invoice processing. Get valuable analytics and actionable insights to increase visibility and control.

A single connected solution for energy management

888.569.2734 Yardi.com/Energy Š2019 Yardi Systems, Inc. All Rights Reserved. Yardi, the Yardi logo, and all Yardi product names are trademarks of Yardi Systems, Inc.


Project Management | Building Science | Structural Engineering | Roofing Surveys | Condition Assessments | Asbestos and Mould Surveys

1.888.348.8991

McIntoshPerry.com We’ve encountered every possible building-related issue over our five decades of history. With more than 500 engineers, project managers and technical experts across the country, we provide a full range of services to the rental housing industry.

rentalhousingbusiness.ca | 3


EDITOR’S NOTES New floors are great until they get scratched Every year, we try to renovate, repair or replace something in our home, depending on our needs and budget. This year, we finally got rid of our 30-year-old bedroom carpeting and parquet flooring in the living/dining room, replacing it with hardwood flooring. Everything looks new and fresh, and we love how the rooms look, although the echoes take some adjustment. While we’ve been careful, I know that scratches, dings and dents are on the way, and we’ll agonize over them until we get over the newness factor. The July/August issue of RHB Magazine features a RENTT panel including leaders from several of Canada’s landlord associations. The key topic was how landlords can affect their tenants’ lives. Discussions included how landlords generally impact tenants and their communities, government supports that landlords can use to help tenants, how landlords can be more supportive, initiatives that have helped to improve landlord-tenant relations, and the public perception of landlords in the public and the media. One article examines the impact of the seniors demographic on the housing market across Canada. According to Environics, there are more people born between 1946 and 1965 than children under 14, and this cohort is changing real estate trends in every province. Another article takes a brief look at Halifax’s surging rental housing boom, the factors driving the growth, and three recent developments in the city. Make sure to read what CBRE has to say about Ottawa’s economic growth in the Suite Count section. Don’t forget to read CFAA’s newsletter, National Outlook, as well as the Regional Association Voice. Of course, we always enjoy hearing from our readers, and we want to support twoway communication. If you have any comments or questions, send them to david@rentalhousingbusiness.ca. I look forward to hearing from you.

Co-founder, Publisher

Marc Côté marc@rentalhousingbusiness.ca

Co-founder, Director

Juan Malvestitti juan@rentalhousingbuisness.ca

Editorial

David Gargaro david@rentalhousingbusiness.ca

Contributing Editor

John Dickie, President CFAA jdickie@rentalhousingbusiness.ca

Art Director Kyu Shim

Director of National Sales Nishant Rai

Office Manager Geeta Lokhram

Subscriptions

One year $49.99 Cdn Two years $79.99 Cdn Single copy sales $9.99 Cdn Opinions expressed in articles are those of the authors and do not necessarily reflect the views and opinions of the CFAA Board or management. CFAA and RHB Inc. accept no liability for information contained herein. All rights reserved. Contents may not be reproduced without the written permission from the publisher. P.O. Box 696, Maple, ON L6A 1S7 416-236-7473

Enjoy the issue! David Gargaro Senior Editor

4 | July - August 2019

Produced in Canada All contents copyright © RHB Inc. Canadian Publications Mail Product Sales Agreement No. 42652516


What makes this compactor smart?

iSMART technology sends alerts and provides compactor diagnostics in real time. With the data it collects, we’ll reduce your service calls, limit downtime and save you money. If you want to optimize your waste stream, call us at: 416 743 8484 ext. 2

rentalhousingbusiness.ca | 5


CONTENTS

VOL.12 NO.3 2019

Halifax’s redhot multi-unit residential housing boom Several new residential rental housing developments have been built recently, helping to meet the needs of Halifax’s growing population. RHB’s forum for rental housing associations to share news, events and industry information

RENTT: Landlords’ impact on tenants’ lives

The Rental Executives National Think Tank panel comes together to discuss how landlords affect their tenants’ lives.

Hot Topics: EOLO explains its recent submission to the City of Ottawa on the proposal for landlord licensing, including better alternatives to address the perceived problems driving the issue. pg. 45 HDAA reports on its meeting with Mayor Eisenberger, and presentations about planning law changes, cannabis, lending and living trusts, as well as how to simplify the life of a property manager. pg. 49 LPMA discusses its actions on recent proposed changes to the nuisance bylaw and the results so far, as well as the program supported by the annual LPMA golf tournament. pg.53 WRAMA explores the rental housing experience, from tenant to rental housing provider under the RTA, starting with the adventures of WRAMA President, Andrew Macallum. pg.57

The Member Associations

Regional Association Voice Regional Association Voice features the latest industry news from four member associations.

Reshaping the housing market: Seniors opt for the big city Seniors have created a demographic time bomb, and are changing real estate trends across Canada.

6 | July - August 20192019

Suite Count Ottawa is emerging as a major source of economic growth within Ontario.


ASPHALT PAVING CONCRETE PAVING LANDSCAPE CONSTRUCTION BUILDING RESTORATION WINTER SNOW SERVICES INTERLOCKING STONE SITE SERVICING

diversified construction 24 hour emergency service 416.524.3000 Email: estimating@forestgroup.ca

forestgroup.ca

rentalhousingbusiness.ca | 7


PRESIDENT’S CORNER The main event coming up soon on CFAA’s calendar is the federal election that will take place on Monday, October 21. The federal government often plays a large role in housing policy and programs across Canada. Those policies and programs influence how easy it is to buy a home, what support low-income renters have to rent a home, and how difficult it is to develop rental housing, condos or single family homes. The federal government also drives the income tax system and the GST/HST system. All of that has a great impact on the after-tax returns on rental operations and investments. The current polls show a tight race between the Liberals and the Conservatives, with the distinct possibility of a minority government. Rental housing providers need CFAA to be ready to represent their interests with the new or renewed government. CFAA’s past work has built a good foundation for that work. CFAA now needs your support and input to address the key issues for rental providers.

Canadian rental providers can also access Visto, the NAA’s on-line training courses at the same price as NAA members. NAA is also making its research available to CFAA members, both direct landlord members, and affiliate members, who are CFAA members by belonging to one or more CFAA-member associations. For more information, email admin@cfaa-fcapi.org. Finally, CFAA has made an agreement with Home Depot to facilitate access to Home Depot’s volume discounts and other perks. In turn, Home Depot is supporting CFAA in our work for the rental housing industry. Sign up at homedepot.ca/ proxtra, and send your Proxtra number to admin@cfaa-fcapi.org, and you will support CFAA’s work on behalf of landlords across Canada.

For more about CFAA’s government relations work, see page 35. “Influencing Government” was one of the many education sessions which took place at CFAA – Rental Housing Conference 2019. See page 38 for the winners of the CFAA – Rental Housing Awards for 2019. Save the dates for CFAA - Rental Housing Conference 2020, which will take place from June 8 to 10 in Halifax, Nova Scotia. Besides government relations, CFAA works hard to increase knowledge within the rental housing industry. As part of that mandate, we have entered into an agreement with the National Apartment Association in the U.S. Using a discount code from CFAA, Canadian rental providers can attend Apartmentalize at the same price as NAA members, which is a substantial discount from the non-member rate.

8 | July - August 2019

John Dickie, CFAA President


1-800-387-9503

www.harcoco.com

Multi-Housing

Specialist

7/5 YEAR LIMITED WARRANTY ON MHN33PD HIGH EFFECIENCY FRONT LOAD WASHER 5-YEAR LIMITED WARRANTY ON ALL OTHER MODELS, ALL PARTS COVERED Visit our website for complete warranty details

rentalhousingbusiness.ca | 9


In this issue of... NATIONAL OUTLOOK 35. CFAA -RHC 2019 took place from May 13 to May 15, in downtown Toronto. Explore highlights from the education sessions and read what delegates had to say about their conference experience. Mark your calendars for CFAA-RHC 2020 in Halifax!

38. CMHC’s Rental Market Survey is coming soon. Learn when it will be conducted and why it’s important for the rental housing industry.

CFAA Member Associations Eastern Ontario Landlord Organization (EOLO) www.eolo.ca P: 613-235-9792 Federation of Rental-housing Providers of Ontario (FRPO) www.frpo.org P: 416-385-1100, 1-877-688-1960 Greater Toronto Apartment Association (GTAA) www.gtaaonline.com P: 416-385-3435 Hamilton & District Apartment Association (HDAA) www.hamiltonapartmentassociation.ca P: 905-632-4435 Investment Property Owners Association of Nova Scotia (IPOANS) www.ipoans.ns.ca P: 902-425-3572

38. CFAA’s 4th annual Rental Housing Awards Dinner took place on Tuesday, May 14, 2019, as part of CFAA-RHC 2019. Find out who won the awards in the categories of Rental Development, Renovation, Marketing, Rental Housing Providers and Rental Housing Suppliers!

To subscribe to CFAA’s e-Newsletter, please send your email address to communication@cfaa-fcapi.org.

The Canadian Federation of Apartment Associations represents the owners and managers of close to one million residential rental suites in Canada, through 11 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.

10 | July - August 2019

LandlordBC www.landlordbc.ca P: 1-604-733-9440 Vancouver Office P: 604-733-9440 Victoria Office P: 250-382-6324 London Property Management Association (LPMA) www.lpma.ca P: 519-672-6999 Manufactured Home Park Owners Alliance of British Columbia (MHPOA) www.mhpo.com P: 1-877-222-4560 Professional Property Managers’ Association (of Manitoba) (PPMA) www.ppmamanitoba.com P: 204-957-1224 Saskatchewan Landlord Association Inc. (SKLA) www.skla.ca P: 306-653-7149 Waterloo Regional Apartment Management Association (WRAMA) www.wrama.com P: 519-748-0703


Are you an affordable housing provider in our Ontario service area?

Keep your Affordable Housing Affordable. Looking to cut your operating costs? Lower energy use and improve resident comfort by upgrading your building's equipment.

With up to

$200,000 in available incentives

Here are some of the measures we support: • High Efficiency Boilers • Make-Up Air Units • Water Heaters • Heat Reflector Panels • Low-Flow Showerheads • Control Upgrades • Heat Recovery Ventilators

Let’s get started. There are solutions and retrofit rewards for all budgets. For more information, contact: Cam Black, Enbridge Energy Solutions Consultant energyservices@enbridge.com (416) 758-4748

EnergyRetrofits.ca

rentalhousingbusiness.ca | 11


TOP 6 S R E G MANA P U O R G S THE DM COGIR

1 2

IN GREENW

3 4 5 6 12 | March 2019

METCAP E N A L R A I R B Y A W E T A G

20,920 19,652 16,128 15,565 13,500 10,100


rentalhousingbusiness.ca | 13


RENTT:

Landlords’ impact on tenants’ lives

In this month’s issue, we asked our esteemed RENTT (Rental Executives National Think Tank) panel to discuss how landlords can affect their tenants’ lives. Panelists included several leaders of Canada’s landlord associations. They examined how landlords generally impact tenants and their communities, government supports that landlords can use to help their tenants, what landlords can do to be more supportive, and how different initiatives have helped to improve landlord-tenant relations. They also discussed the public perception of landlords in the public and the media. 14 | July - August 2019


RENTT panelists:

John Dickie, President, Canadian Federation of Apartment Associations (CFAA), and Chair, Eastern Ontario Landlord Organization (EOLO)

Avrom Charach, Vice President, Kay Four Properties, and Director of External Relations, Professional Property Managers Association (PPMA)

RHB: Welcome to RHB Magazine’s RENTT panel. We appreciate the time and effort involved in participating in today’s discussion and sharing your experience. Our readers will benefit from your input and experience. Today we’d like to talk about how landlords affect their tenants’ lives. Generally speaking, how can landlords have a positive impact on tenants and the community? John Dickie: There are specific initiatives many landlords do for the communities they manage, which will be discussed by other speakers, but what is so often overlooked is the positive impact rental providers have through the service and product they provide. Most people who cannot afford to buy a home are able to rent one. If it were not for someone willing to rent them a home, they would have no home. By doing that, landlords earn their incomes, but so do grocery stores when they sell food, and clothing stores when they sell clothes. Most landlords are not charities, although landlords often do charitable things, as well as provide an essential product for people. When landlords rent to people who choose to rent, landlords are again responding to the demand for

Jeremy Jackson, President, Investment Property Owners Association of Nova Scotia (IPOANS), and VP Program Development, Killam REIT

Arun Pathak, President, Hamilton District Apartment Association (HDAA)

a service and product that many people want, which makes those people better off because they prefer it to buying a new home or sharing accommodation. In the very work landlords do to earn a profit, landlords make it easier for people to move to new jobs, to downsize (in space and in home maintenance requirements) or to attend university or college. The multitude of charitable activities landlords undertake are the icing on the cake. Avrom Charach: Some of what we do is done quietly and person to person, some is physical and some is purely financial. For example, many landlord associations pick a charity every year that deals with housing and support them. In Manitoba, we have built homes for Habitat for Humanity, and rebuilt or improved kitchens in shelters and other organizations dealing with people in need. I know of companies and staff discounting rents, buying groceries, helping with household issues or taking tenants to appointments. Jeremy Jackson: When it comes to tenant relationships, income property owners, managers and front line staff wear many hats in the run of a day or week or month. From community organizer, in the form of weekly

rentalhousingbusiness.ca | 15


or monthly events, to home handyman, to social worker, to sympathetic friend, to errand runner, just to name a few. From a community perspective, IPOANS members are often active community leaders in sponsoring any number of charitable organizations including hospitals, shelters, food banks, mental health programs, youth programs, etc. Arun Pathak: Housing providers can have a huge impact on tenants and the community. Housing providers who spend the extra time and money to ensure that their tenants have maintenance issues resolved quickly, focus on communication, and show an understanding of tenants’ rights have happier tenants. Small landlords may be an important social connection for their tenants. Many large housing providers also go the extra mile and have programs in their buildings to help with senior isolation, youth group activities, and provide easy access to information for tenants to help them with mental and financial troubles. Even more housing providers go the extra mile and get involved with their communities through fundraising and charity events. RHB: What government supports are available for landlords to help their tenants? John Dickie: The supports usually fall into two categories: financial supports and social service supports. Financial supports are income support to tenants, such as rent supplements, shelter allowances in social assistance, portable housing benefits, many construction subsidies and rent banks for people who fall behind in their rent. Social service supports include mental health supports, Housing First case support, home care supports and other help for people who lack the ability to maintain a tenancy without that kind of support. Avrom Charach: If you have a tenant who is involved in the Housing First strategy, then there are often supports that are not financial. Other than Housing First and the shelter

16 | July - August 2019

allowance programs, which are not adequate, there are not many provincial incentives in Manitoba. There is room for so much more, such as programs to help seniors and people with special needs, to allow them to live independently in the community. Jeremy Jackson: Rent supplements are the prime program available to landlords in Nova Scotia to assist those on fixed incomes. Health agencies or agencies like the YMCA also provide mental health supports to many tenants who rent in the private rental market. Arun Pathak: There are financial support systems in place that the housing provider can tell the tenant about if they are not already aware of OW and ODSP, such as the local Housing Help Centre. Tenants can get help with short-term interest-free loans, money from the Housing Stability Benefit, and help with utilities through the Low-income energy assistance program. There are also social and mental programs to help with hoarding, isolation, and drug abuse. A great website all housing providers should know about is HNHBHealthline.ca. On it you can find resources to help your tenants with almost any health-related issue in your area. RHB: What can landlords do to be more supportive of tenants and the community? John Dickie: The most systemic additional thing landlords can do is to provide quality rental accommodation at a fair price. That is a constant struggle as property taxes, water charges and other government-imposed costs continue to rise above the rate of inflation. Government-imposed charges and taxes also make the production of new rental housing much more expensive than it would be without those charges. Even with current portfolios, landlords could set aside a portion of their rental units, in which they do not apply the normal criteria for renting, although third party managers would need the consent of the property owners to do that. Under agency law, third party managers have


Outstanding Products

Unsurpassed Service

Lifetime Commitment

Century Building Restoration and SKYLINE Railings and Windows are proud to present you with the highest quality of services and workmanship concerning BUILDING RESTORATION, PARKING GARAGE REHABILITATION, WINDOWS AND RAILINGS. Being in this business for over 30 years we have established a solid leadership and a sound relationship with our clients and suppliers.

395 Steelcase Road East 395 Steelcase East Markham, OntarioRoad L3R 1G3 Markham, Ontario L3R 1G3 Tel. 905-415-7773 Tel. 905-415-7773 www.centuryrestorationinc.com www.centuryrestorationinc.com www.skylinerail.com www.skylinerail.com pmarku@centuryrestorationinc.com paul@centuryrestorationinc.com

rentalhousingbusiness.ca | 17


fiduciary duties to look first and foremost to the interests of the owners they manage for. In seeking to run their businesses, owner-operators generally follow the same practices. Both third party managers and owner-operators want to select tenants who will pay their rent in full and on time, who will not disturb their neighbours, and who will not damage the rental unit. Most tenants want neighbours like that too. The problem arises from the fact that there is not enough supportive housing for people with mental health issues, and many agencies want tenants with issues to live within the general population, but there are not enough effective social service supports to support all of them adequately. Avrom Charach: I believe that many landlords do more than their fair share through donations and also through staff going that extra mile for tenants who they see need some help, but quite often they do this quietly. Housing tenants with mental health or serious social issues is challenging due to the impact they can have on other tenants and the extra demands on the landlord’s employees. Many landlords do it despite those negative impacts. Jeremy Jackson: We can continue to look for ways to assist in the affordable housing challenge. That could mean working with CMHC using one of their national programs to create new affordable rental units, or working with non-profit housing agencies and provincial rent supplement programs to assist in housing those on fixed income, and those who are less fortunate. Arun Pathak: Housing providers can always try to do more to help support their tenants and the community. The best way is to listen to tenant concerns and to know the community. If you have a building with many seniors, focus on programs that help them with their socialization. If you have a building full of kids, look at creating more kid-friendly events and sponsoring local kids’ sports teams.

18 | July - August 2019

RHB: Discuss how certain initiatives have created a better relationship between landlords and tenants. John Dickie: At the national level, CFAA was heavily involved with social housing providers and anti-poverty organizations and foundations in lobbying for specific features in the National Housing Strategy. Many of those social groups told me that they had not realized the extent to which rental providers want to be able to do more in the affordable housing field, or the extent to which low-income people need to find their housing in the private rental market. In any given year, two out of every three households in core housing need live in the private rental market, while only one in three lives in social housing. EOLO also has a very different relationship with social housing and supportive housing agencies than we had 20 years ago. We also have a much more positive relationship with the City’s Housing Branch, which recently rolled out one thousand housing allowances, raised the maximum rents for rent supplement units, and created a Landlord Damage Fund to pay for undue damage caused by tenants who received housing under the Housing First program. All of that has largely been the result of EOLO’s work with the City and agencies on the Ten Year Housing and Homelessness Plan. All of it means government and for-profit rental providers are working together to address people’s housing and other needs effectively. Avrom Charach: Food drives run by CFAA member associations have helped improve relations and quality of life. Many professional managers spend time helping charities and not-for-profits in the community. We do hear from tenants who state that they appreciate the support of a given manager to a charity of their choice. If the government would fund programs that provide landlords with resources for tenants in need, we could certainly add supports to those in need without taking away from our normal operations. “End Homelessness Winnipeg” CONTINUED ON PAGE 22


THE WYSE ADVANTAGE Take control of rising operating costs

Submetering allows you to back hydro costs out of rent and provides rent posting flexibility.

Turn every resident into an energy manager

Submetering allows your residents to reduce their energy costs through reduced consumption.

90,000,000 kWh

saved through submetering in 2018

Savings equal to over 1,700,000 trees grown for 10 years from reduced greenhouse gas emissions

1,500 buildings

under contracted services

900 properties on Synergy

19th fastest-growing company in Canada

3,284% revenue growth over 5 years

START NOW

www.wysemeter.com | sales@wysemeter.com | 1.800.672.1134


Serving the public interest every day The specific corporate social responsibility (CSR) initiatives undertaken by rental housing providers, and described in these pages, reflect today’s approach to CSR and to environmental sustainability. Millennials and others want the companies they work for, and the companies they rent from, to do good in the world. For decades, many rental housing providers have made major, but usually lowkey, contributions to various charities, but growing numbers of rental housing providers are now making more visible contributions to CSR in the housing field. Governments are now coming to for-profit housing providers looking for more direct contributions to the perceived public good. Many housing providers will answer those calls, but we should not forget that just by operating efficiently and properly, rental providers are serving the public good. Many rental housing providers make major contributions to society every day. In Canada each year, twice as many low-income households live in private rental units as live in social housing. Put another way, Canada’s for-profit rental providers house twice as many low-income people as non-profits and other community housing providers do.

20 | March 2019

When the government wanted to find housing for the Syrian refugees, they came to the private sector, and the private sector stepped up. When tens of thousands of people fled the forest fires around Fort McMurray, they found temporary shelter in public facilities, but then very quickly moved to units rented by private housing providers across Alberta and Saskatchewan. Likewise, when communities grow, private builders and for-profit rental providers are invariably the people who develop, build and provide the vast bulk of the new housing people need. Government rarely acts quickly enough or with enough resources or efficiency, whereas for-profit providers see the opportunity, assemble the resources, make the investments and provide the housing supply that people need. By all means, rental providers can bring out specific CSR initiatives, but let us all remember that most of what rental housing providers do every day, in their own interests, also greatly serves the public interest. John Dickie, CFAA President


WE’VE GOT ALL OF YOUR

LAUNDRY PAYMENT

OPTIONS in

co

! ne! ine onl en lig t us us Visi ez-no com t tic. Visi ma

ed ag m nt e. da me abl or ace nd en pl fu ol e re na La st to r on- om coi . a t, n c nt i l os ject is ry. l ta e s ur s ub rd nd p é d r s ca au m urs ale a o l v c e t C r t bo La le. a ar my . en m sh ct sm fix rg re ée. sab r ca le s e eg thi o l’a pas ag our com e lik r n to 972 d a mm mb rie. e er rd o n -1 m e s ndo -re de ca se d o 61 is al u ade 0-5 om e n u e non uan h c t m o 0 o t sb rt at or e l 1-8 rte ca te es so ca tte trui uce ou tre abn alu s? e v n e tt ce dé à p 972 as ugh he stio e , r e c r Pl hro s. T ue su le rte 1-1 ed t ge Q ite re vo ca 6 mag ra ai e, e 0-5 ar r da ment . z t nét rdu ett 80 ch no e e li le mo pe r c ? 1tole replac ndabl s u u t , s s r u t s Ve leu es gé ion -ref t to s lo e ard subjec is non om C va art har est rd dry.c h. e c Qu c La cas n t ar t ca t. like neglec s smar mylau tan si la mp i ix ard r t co oursée eur is c use o nto th 2 or f n h t e l o g b t 97 al l’ar s rem . La va trea norm loaded -561-1 de . a b ase 0 me sera p magée rsable Ple ough a value 1-80 om u te c rte ne endom rembo .com thr s. The tions? r a c a ie u c r n e ge Ques o t r e o e t a e d n t ch r ce ur cet étruit e est sbuan c d o s aite z tr étaire vole, e à pu 2 ou s t ille , 7 Veu r mon erdue te car 61-19 t u p -5 vale te est sur ce 1-800 car hargé ions? c st Que

ER T I N S R EZ É I NS

RT S E EZ I N SÉ R IN

! ne e! lig in m nl s en o o c s ou . ic t u z-n t i s a Vi site am Vi

Coinamatic CP Mobile

Whether it’s coin or card, we’ve got you covered. Ask us today about our coin, contact card, contactless card and NEW mobile payment options for your laundry facility.

Scan with your phone camera to join our mailing list for exclusive promotions! You can unsubscribe at any time.

1-877-755-5302 | www.coinamatic.com

rentalhousingbusiness.ca | 21


is looking at establishing programs to incent private managers to take in tenants who need additional supports, be they financial or personal. I recall sitting down with one government minister who did not realize how many hundreds of thousands of dollars and thousands of hours our members had given to initiatives in the community. That one meeting changed his perception significantly. It is up to our industry to get out and tell people of the good work we do. Jeremy Jackson: Here in Nova Scotia, IPOANS is actively involved in addressing the affordable housing and homelessness problems as a founding member of the Housing and Homelessness Partnership (HHP). We are active partners in HHP with the City, the Province, CMHC officials, Department of Health, Mental Health providers, as well as non-profit housing partners, all in an effort to improve housing for all Nova Scotians. Arun Pathak: Hamilton looked at a seniors isolation program that worked well. It helped get the tenants that were at risk, to be more active socially and the housing providers’ staff gained opportunities to get to know them. The annual Spring Hope Food Drive is another program that tenants and housing providers work together to help the community. RHB: Describe your thoughts on the public perception of landlords in the media and among tenants - good and bad. John Dickie: The fundamental problem is that conflict is newsworthy, but peace and satisfaction are not. Nine hundred and ninety-nine landlords and tenants may get on perfectly well and live up to all their obligations, but that is not a news story. The one in which someone behaves badly is news, especially if that person is a landlord. However, recently the media has started to be more balanced, and sometimes reports on the one really bad tenant too.

Avrom Charach: Some people have always had a negative image of landlords. Simply using a term that comes from lord of the land creates that perception, which is why we in Manitoba refer to ourselves as professional property managers. Any time a landlord opts for a repair that is not what the tenant wants, it is a cheap repair in the minds of some tenants. Sometimes we cannot be as open as we would like due to privacy legislation. All of the goodwill we build up can be set back when one landlord does something wrong. On the positive side, we sometimes get the acknowledgement from media and tenants that there are bad tenants, and good landlords, out there. We have recently seen more stories about bad tenants than bad landlords. We have worked hard over the last 15 years to develop a reasonable working relationship so that media allows us to put our perspective out there to balance things. Jeremy Jackson: We continue to work on the negative perceptions and stereotyping of income property owners. Because IPOANS has been so active with the Housing and Homelessness Partnership, I believe many government and non-profit folks see us now more as allies rather than enemies, and in fact, they do defend us from time to time, when “landlord bashing” raises its ugly head. Arun Pathak: Unfortunately, the public perception of landlords in the media is not great. It is easy to blame all housing providers and target them as the cause of all tenants’ issues. It is a hard perception to change, especially among tenants who have had a bad experience or among tenant advocacy groups. As leaders of rental housing industry associations, we do what we can to overcome the negative stereotypes and present the positive things rental providers do. Every landlord can help with that by acting as a responsible business person. Every landlord could do even more by going the extra mile. RHB: Thank you for your input and participation.

22 | July - August 2019


FLOOD? FIRE? TRAUMA? GROW-OP? MOULD? FROM FLOOR MAINTENANCE TO FLOOD MANAGEMENT – THE ONLY CALL YOU NEED TO MAKE! 416-967-4461 | SpectrumCo.ca


Reshaping the housing market: Seniors opt for the big city People born between 1946 and 1965 currently outnumber all other

generations in Canada. According to Environics, for the first time ever, there are more seniors than children under 14. Also, the 2016 Census showed that the number of people over age 55 went up by 87% between 1996 and 2006, while those between 16 and 54 only rose by 14%. So what is the impact of this demographic shift on the housing market?

Seniors – the “demographic time bomb” changing real estate trends According to the 2016 Census, compared to younger people, people over 55 own properties further away from major business and financial centres, in the suburbs and in smaller cities, where properties are larger and less expensive than homes in bigger cities. But as they grow older, many owners exit the homeownership market, opting for rentals or senior care facilities. Others start to think about downsizing by buying and moving to homes closer to city centres, trading space for accessibility and more comfort. These moves might lead to a glut of Boomer properties, larger homes in smaller cities, which would not be of interest to younger generations. Both Millennials and Gen Z-ers tend to prefer smaller, more affordable homes close to the hustle and bustle of downtown. With both seniors and younger generations looking for homes in bigger cities, the pressure on the condo market is increasing, putting the spotlight on this already hot sector.

Number of seniors increases fastest in cities with more young people A demographic shift is underway. In provinces with the highest economic growth rates, cities currently dominated by young people are seeing

24 | July - August 2019

the biggest increases in senior populations. Due to the growing number of seniors moving closer to family and Boomers living in cities who are deciding to “age in place,” people over 55 are taking over the urban spaces that used to be the Millennials’ playground. To discover how seniors are changing homeownership trends, and gauge how this demographic shift might impact housing, we looked at population changes between 2006 and 2016 and at the correlation between the percentage of seniors and home prices in Canada’s 150 biggest cities.

BC boasts the highest home prices, and it’s aging fast In BC, with very few exceptions, most people over age 55 are living in cities outside the Greater Vancouver Area. The “oldest” cities are Penticton, West Vancouver, North Cowichan, Courtenay, and Vernon, which all have a share of seniors of over 40%. Port Moody, Surrey, Port Coquitlam, and Prince George have a considerably smaller share of seniors, around 25%. Vancouver comes in sixth, with 28% of its population over the age of 55. In general, home prices are inversely related to age. Cities that have higher proportions of people over age 55 tend to have lower house prices. For example, the five most expensive cities in the Greater Vancouver Area all boast some of the lowest shares of seniors. One notable exception is West Vancouver, where the share of people over


Call your iron railing specialists today! We specialize in: Roof Top Guard Rails | Wall Mounted Access Ladders Stairwell Railings & Handrails | Iron Gates & Fencing Balcony Guard Rails Exterior Railings | On-site Welding

Serving the GTA since 1972!

416.535.1686 sales@dufferiniron.com

Dufferin Iron & Railings is committed to serving our customers’ needs. Our trade skills and years of experience enable us to produce high quality products delivered in a timely fashion. Our clients choose us because of our reputation for quality, excellent service, and competitive pricing. www.dufferiniron.com


55 is second highest, but homes also routinely sell for prices that would make your head spin. However, BC’s youngest cities are getting old the fastest. Port Coquitlam and Port Moody, two of the youngest cities, have seen the biggest jumps in the number of seniors: 46% and 39%, respectively.

Ontario ages fast, has second-most expensive home prices

The Prairies is the youngest region, has second lowest home prices Alberta, Saskatchewan, and Manitoba represent Canada’s youngest provinces. No city has a share of seniors higher than 35% (Moose Jaw, AB is the “oldest” city, with 33% seniors), and the youngest city, Wood Buffalo, AB has a share of seniors of only 12%. Airdrie and Grande Prairie, both in Alberta, have the second- and third-lowest shares of seniors, under 20%. Of the three capitals, Edmonton has the lowest share of seniors (24%), making it the “youngest” capital. Regina comes second, with a slightly higher share of seniors (26%), meaning Winnipeg (28% people over 55) is the “oldest” capital. Home prices are inversely related to age in the Prairies as well: in most cases, the higher the share of people over 55, the lower the average home price. One exception is Calgary. Home prices are the highest in the region, although almost a quarter of Calgary’s population consists of seniors. As was the case in BC, the younger cities see the biggest spikes in senior population: Okotoks, AB has seen a 59% increase, and Wood Buffalo, AB, the city with the lowest share of people over 55, saw its number of seniors increase 41%.  

26 | July - August 2019

Cities in the Greater Toronto Area boast the lowest shares of people over 55. With only 18% seniors in 2016, Milton is the “youngest” city in Ontario, followed by Brampton (22%) and Ajax (23%). The cities with the highest share of people over age 55 are Kawartha Lakes (43%), Brockville (42%), and Owen Sound (40%). Toronto and Ottawa’s share of people over 55 is just under 30%. The average home price drops as the share of seniors increases. Again, relatively “young” cities are aging the fastest, with the biggest increases in share of seniors seen in Brantford (61%), Aurora (52%), and Clarence-Rockland and Pickering (both 44%). The most significant exception seems to be Milton: it is the “youngest” big city in Ontario, but its share of seniors decreased by 3%.   


Simplify your energy coStS

Achieve 35-75% energy savings! Our clients have received approximately $5 million in rebates and well over $10 million in energy savings! Free lighting audits | IESO applications | Long-term solutions and reduced maintenance costs | 5 year warranty | Excellent paybacks

Call us: 1-877-345-5351

www.allprofessionaltrades.com


In Quebec, Blainville sees the highest spike in seniors Shawinigan, Sorel-Tracy, and Thetford-Mines have the largest shares of seniors, with 46% or 47%; Cote-Saint-Luc, Salaberry-de-Valleyfield, Rimouski, and Joliette also have a significant percentage of people over age 55 (40% of the population is over 55). Two of the “youngest” cities boast very low shares of seniors: Mirabel’s population over 55 only reached 21% in 2016, while Blainville reached 23%. Two other cities with a small share of seniors are Terrebonne and Vaudreuil-Dorion (25%).

Just as in the rest of Canada, home prices decrease as the share of seniors goes up: Cape Breton, NS has the highest share of people over 55 and the lowest average home prices, while Halifax, NS and St. John’s, NL are the “youngest” cities, but home prices are the highest in the region. The increase in the number of seniors is also less dramatic, with the biggest spike in Cape Breton (28%). However, between 2006 and 2016, Cape Breton’s population decreased by 8%, and the 28% jump in people over age 55 shows that the national trend toward rapid aging did not bypass the region.

With a few exceptions, Quebec tends to follow the same patterns when it comes to the correlation between the share of people over 55 and home prices in the area: the higher the share of seniors, the lower the average home price. The most outstanding exception is Cote-Saint-Luc, a smaller city in the Greater Montreal Area. At 40%, the share of seniors is rather high, but this is the only city to see a decrease since 2006. Also, Cote-SaintLuc has the highest average home price in the province: $484,361.  

Conclusion As Canadian Boomers are retiring and seniors are weighing their options, the real estate decisions they make will have a great impact on the housing market. Whether it’s downsizing, investing in real estate, renting, or helping their Millennial children get a foot on the ladder, Boomers and seniors will continue to play a significant role in the evolution of the housing market.

Methodology The Atlantic Region has lowestpriced homes, and ages more slowly The Atlantic Region shows less variation in cities’ population age structures and in house prices than is seen in other provinces. The lowest share of people over 55 is in Halifax, NS, tying with St. John’s, NL (30%). Cape Breton, NS boasts the highest share of seniors in the region (42%).  

28 | July - August 2019

For this study, we analyzed Statistics Canada and Environics demographics data, such as changes in total population, as well as changes in the share of seniors (people aged 55 and over) in the decade between 2006 and 2016, in the 150 biggest cities in Canada. We also looked at home price data (February 2019) to establish a correlation between the share of seniors and home prices in Canada’s largest cities. By Andra Hopulele, Point2Homes


CFAA Rental Housing Conference 2020

June 8-10 The Canadian Federation of Apartment Associations (CFAA) invites you to join us out East next Summer at Canada’s Rental Housing Conference in Halifax, Nova Scotia. www.CFAA-RHC.ca Thanks to Principal Sponsor:

With special thanks to:

rentalhousingbusiness.ca | 29


BROUGHT TO YOU BY

RICHARD DOLAN, Anchor & Host

A DIGITAL BROADCAST NETWORK FOR ALL OF YOUR RENTAL HOUSING BUSINESS NEWS.

HUGO DOS REIS I.P.A

We welcome Tony Irwin to the show as we discuss Rent Control and the impact of BILL 108.

An interactive tour of “The Montgomery”, Rockport Group’s latest purpose-built project.

TEST YOUR RENTAL HOUSING KNOWLEDGE WITH THE RHBTV TRIVIA HALF-TIME SHOW!

BEN MYERS

A comprehensive look at vital factors affecting rental housing activity across Canada.

JASON COSENTINO

PURPOSE-BUILT SHOWCASE

COAST TO COAST

A look at monthly asking rents, and the breakdown of rental listings by bedroom type and unit size.

NEWS AND DATA LIKE YOU’VE NEVER SEEN BEFORE

SAMANTHA SAVOIA OUT & ABOUT

Catch all the action from the Greenwin Cares Golf Classic and the FRPO Charity Golf Classic.

WWW.RHBTV.CA


DONE ONCE. DONE RIGHT!

Structur

al

Mechan

ical

ation

Restor

lting

Consu

FROM TOP TO BOTTOM – FROM START TO FINISH… WE’RE THERE. WYNSPEC is a multi-faceted consulting, engineering, design and project management firm. We provide a unique blend of services and expertise, working with our clients to restore, transform and modernize their buildings.

www.wynspec.com


Halifax’s red-hot multi-unit residential housing boom If you were asked to rank Canada’s fastest growing cities, Halifax might not immediately come to mind. However, as of June 2019, the city had 4,483 apartment units under construction. When adjusting for relative size, Halifax has more rental housing units under construction than the Greater Toronto Area! Several factors are spurring Halifax’s strong economy and growing population, which are driving high rental demand. The province’s overall unemployment rate is steadily declining, which has contributed to record-low levels of unemployment. After a period of stagnation, Nova Scotia’s population has grown for the last three years, mostly due to strong international and neutral interprovincial migration (rather than a net outflow). Most of that population growth has occurred within Halifax, as many people have moved from rural and small-town Nova Scotia to its capital city for employment and urban amenities. Halifax is also experiencing a relatively low and falling vacancy rate, dropping to 1.6% in 2018. Rental demand has outstripped the supply coming online for the last three years. Fortunately, Halifax is also seeing a surge of new multi-unit rental housing developments, which will help to meet the needs of young professionals moving to the city for employment, as well as older people wanting to move closer to family and take advantage of more readily available health care amenities. Time will tell whether the future growth in rental demand will be enough to absorb the new rental supply coming online in Halifax, or whether vacancy rates will rise again to more balanced levels. The three following residential rental housing developments are part of the recent surge in Halifax’s growth.

32 | July - August 2019

Maple by Southwest Properties This 300-unit building, completed in April 2017, is located at 1583 Hollis Street in Halifax’s downtown core. It was the first new high-rise building built in Halifax in more than 20 years. At the time of its construction, it was also the largest multi-unit residential building in downtown Halifax. In 2018, the building won Rental Development of the Year at the CFAA Rental Housing Awards. Features and amenities include: • 24-hour concierge service • Well designed and efficient suites with harbour and city views • Indoor swimming pool and hot tub • Fitness centre • Terrace overlooking the harbour • Resident party room with full lounge • Kitchen, sit-up counter and dining table • Billiard room • Resident social events • Original artwork • Great downtown location


The Alexander by Killam Apartment REIT

The Dillon by Mosaik Properties

This 239unit building, completed in October 2018, is located at 5121 Bishop Street in downtown Halifax, on historic Brewery Square. The property includes one storey of commercial space. The building offers indoor access to Alexander Keith’s Brewery Market, as well as scenic views of the Halifax Harbour.

This recently completed 39-unit building is located at 1619 Sackville Street on the corner of Market and Sackville. The builder and designer collaborated to include beautiful design elements and amenities to the units. The five-storey glass tower, which is located above the former building’s restored 1800s exterior, provides most tenants with breathtaking views.

Features and amenities include: • Concierge service • Common room • Café • Gym • Custom courier lockers • Underground parking • Well-equipped fitness room • Spacious lobby • Large landscaped terrace and BBQ area

Features and amenities include: • Smart-living layouts • Stainless steel appliances • Chic interior design finishes • Private balconies • Floor-to-ceiling windows • Rooftop gym • Terraced green space • Concrete construction • Quieter urban living By David Gargaro, with Jeremy Newman

rentalhousingbusiness.ca | 33


“Through my capacity as Realty Asset Manager for the City of Surrey, I have contracted the services of Canadian Tenant Inspection Services Ltd for the last 10 years. CTI Services has looked after the inspection services for our rental portfolio. I have had no concerns when dealing with CTI Services during our contractual arrangement and know that any request will be completed in a prompt professional manner. In summary, based on the level of service CTI Services has provided for me, I would have no concerns recommending them for inspection services.” –Ken Woodward, Realty Asset Manager, City of Surrey

Canadian Federation of Apartment Associations

2019

“New Service of the Year”

PROTECT

your real estate investment one inspection at a time!

(778) 846-9125 www.ctiservices.ca


JULY - AUGUST 2019

CFAA-RHC 2019: Working Together to Help You Succeed By Jeremy Newman, CFAA Director of External Relations CFAA Rental Housing Conference 2019 took place in downtown Toronto from May 13 to 15. The Conference included the Building Innovations Bus Tour, Networking and Awards Receptions, the CFAA Rental Housing Awards Dinner, and two full days of education sessions. The 25 education sessions included over 60 speakers, who shared knowledge on various topics in order to help rental housing providers succeed. Here are descriptions are some of the education topics explored at CFAA-RHC 2019.

JOIN YOUR COLLEAGUES FOR CFAA-RHC 2020 IN HALIFAX We hope to see you at the CFAA-Rental Housing Conference 2020 in Halifax from Monday, June 8, to Wednesday, June 10! Stay tuned for more details. To receive updates about CFAA-RHC 2020, email events@cfaa-fcapi.org.

Executive Round Table The Executive Round Table consisted of: • Kris Boyce, CEO at Greenwin Inc. • Todd Cook, President and CEO at Northview REIT • Alf Hendry, CEO at Homestead Land Holdings Limited • Tyler Seaman, Head of Hotels and Multi-Residential, North America at Oxford Properties Group

The panelists discussed the current rental environment and prospects for many different rental markets across Canada, as well the roadblocks that are standing in the way of rental development, and whether Ontario’s new Housing Action Supply Plan will clear away some of those roadblocks. The panelists also covered the current challenges to buying or selling apartment assets from the perspectives of REITs, institutions, and private companies; in what assets investors are looking for growth; what options are available when buying old and renovating; and the comparative advantages to buying new or developing. Panelists also commented on new construction techniques, including modular construction and crosslaminated timber, which speed up construction. Delegates commented that the Round Table was “topical and informative”, offered “great insight and breadth of knowledge” and was “a great panel and discussion”.

Influencing Government CFAA’s main political goals are to improve tax policy and housing programs as they affect the rental housing industry. Using funds from the expanded direct membership drive, we elevated our game by engaging consultant lobbyists on both tax and housing. In the first six months of 2019, we honed our messages to use the current housing supply crisis as a lead in, and met more than 30 key officials and politicians (of all three main parties). What do these government meetings do for you as a rental housing provider? In the Influencing Government panel, government relations experts discussed what government relations is, some

rentalhousingbusiness.ca | 35


How do you increase marketing ROI?

SEPTEMBER- OCTOBER 2018

Attract more prospects, convert more leads and retain more residents with the RENTCafĂŠ Suite, a powerful marketing, leasing and resident services platform with innovative property marketing features, automated lead tracking and management tools, contact center resources and advanced search marketing services.

A single connected solution for multifamily marketing management

888.569.2734 Yardi.com/Marketing

36 | nov 2017

Š2019 Yardi Systems, Inc. All Rights Reserved. Yardi, the Yardi logo, and all Yardi product names are trademarks of Yardi Systems, Inc.


NATIONAL OUTLOOK issues the rental industry faces, and what rental providers can do to make a meaningful impact on how the governments regulate the rental housing industry. CFAA President, John Dickie, moderated that panel, which consisted of: • John Matheson, Principal and General Counsel at StrategyCorp • Robert McCreight, Consultant at The Capital Hill Group • Tony Irwin, President and CEO at FRPO

researchers have discovered about leadership. Greg explored the vital roles that courage and teamwork play in effective leadership, and how those issues play out in the NHL. He also addressed how everyone can develop and use those traits in all endeavors and industries, including rental housing. Delegates enjoyed Greg Millen’s message and delivery. One stated that that it had a “good message and take-aways to think about”. Another said Greg was a “great speaker who related with the audience and kept the talk very upbeat!”

Additional education sessions

According to the panelists, government relations work best for an industry: • When it overcomes negative stereotypes or perceptions; • When it creates win-win solutions that address government goals (such as more affordable housing), while being positive for the industry; and • When the industry association’s membership is engaged, educated, and knows what lobbying approaches are needed to achieve the best results. One delegate said, “Great background from all speakers. There was a lot of explanation of current issues and how they will affect each landlord and the industry.”

Leadership Keynote: Greg Millen CFAA was pleased to welcome back Greg Millen to present a new talk on Leadership through Courage and Teamwork. He made use of his first-hand experiences with champions, trailblazers, and disruptive corporations, to share the key knowledge which today’s

Other sessions on Education Day 1 included the keynote economic update by Benjamin Tal, Artificial Intelligence, Energy and building retrofits, Tornado: One company’s response, Improving the public perception of landlords, Rental market reporting in Canada, Operations Roundtable, Corporate Social Responsibility by rental housing providers, and Rental market data in the US and reports available from the National Apartment Association (through CFAA’s new partnership with NAA). Education Day 2 featured Developing a Strong Corporate Identity, Tenant selection, Benefits of new purpose-built rentals, Serving the tenants of today, Internet of Things, Planning – to get rental housing built, Digital Marketing Trends and Analytics, Steps to Success, CMHC support for private market affordable housing, Tenant services in today’s environment, Employment law update, and a plenary talk by Financial Post columnists Stephen Moranis and Murtaza Haider on the Economics and Politics of Rental Housing Development.

Conclusion Many delegates took advantage of the many networking opportunities, including the CFAA Rental

WANT TO STAY UP TO DATE WITH NATIONAL OUTLOOK? Sign-up for CFAA’s National Outlook e-newsletter to receive up-to-date news on what is happening across Canada, as well as industry insights and insider information on CFAA happenings. Email communication@cfaa-fcapi.org to start receiving National Outlook today!

rentalhousingbusiness.ca | 37


JULY - AUGUST 2019 Housing Awards Dinner, honouring some of the leading people, developments and renovations in the rental housing industry. (For the winners and finalists, please see the following pages). Every delegate who provided feedback enjoyed CFAARHC 2019. Here are some sample comments: Tracy Roth, of Wilstar Management, said: “This is a great conference!” John Loubser, of Timbercreek Communities, said: “Thanks again for the fabulous conference!” Speaking for himself and his wife, Anna Garnett, Jim Garnett, President of Canadian Tenant Inspection Services, said: “We felt that the function was very well organized and professionally run. It exceeded our expectations. We will definitely be in Halifax next year!” CFAA thanks all sponsors, speakers, moderators and delegates, who made CFAA - Rental Housing Conference 2019 such a success. We especially thank Yardi Canada Inc, the Conference Principal Partner.

CFAA Rental Housing Awards 2019 – Winners and Finalists Congratulations to all the finalists and winners of the CFAA Rental Housing Awards 2019! CFAA thanks the judges, and everyone who applied for the CFAA Awards Program this year. This program could not continue without your interest and generous support. The CFAA Rental Housing Awards Dinner was held on Tuesday, May 14, 2019, as part of CFAA Rental Housing Conference 2019 (see page 35 for more details about the conference). To find out more about CFAA’s Awards Program, how to apply for 2020, or to volunteer as a judge, please email awards@cfaa-fcapi.org.

Rental Development Awards Rental Development of the Year – Low-Rise

CMHC’s Rental Market Survey coming soon Canada Mortgage and Housing Corporation (CMHC) will be conducting its annual Rental Market Survey during the first two weeks of October 2019. The Rental Market Survey is important for all landlords because it provides up-to-date, accurate, and comprehensive information on rental markets across Canada. CFAA encourages owners and property managers to provide their data to CMHC survey enumerators when they contact you. All survey data gathered is strictly confidential, and CMHC does not disclose building specific information to third parties, nor do they use it for reviewing mortgage loan applications or renewals. The Rental Market Survey reports should be available by late November.

Rental Development of the Year – High-Rise

38 | July - August 2019

Winner: Carrington Ridge by Skyline Living Finalists: Cinque by Drewlo Holdings Parkplace Towns by North Prairie Developments Ltd

Winner: Vision at Pay Bayly Square by Medallion Finalists: The Alexander by Killam REIT The Livmore by Vertica Resident Services


NATIONAL OUTLOOK Renovation Awards Renovation of the Year – Building Makeover

Winner: Lougheed Village by Starlight Investments Finalists: 411 Duplex Avenue by CAPREIT Malibu Apartments by Skyline Living

Renovation of the Year – Suite

Winner: 30 Clark Avenue by Starlight Investments Finalists: 450 Dallas Road by Starlight Investments 2160 Lakeshore Road by Vertica Resident Services

Renovation of the Year – Common Area

Co-Winners: High Park Village by Minto

77 Parkwoods Village Drive by Starlight Investments

Additional finalist: The Berkshire Club by Sifton Properties

Energy Use and Efficiency Survey National Resources Canada’s Office of Energy Efficiency is conducting a survey of energy use and efficiency in multiresidential buildings in Halifax, Greater Montreal, Ottawa/Gatineau, the Greater Toronto Area, Hamilton, Winnipeg, Calgary and Greater Vancouver. Buildings need to be at least four storeys or have a footprint of at least 600 sq meters. The survey has two main sections: first, property characteristics, including the total floor space, building layout and amenities; and second, energy sources and consumption during 2018. (The first bill of 2019 may have a sufficient summary.) It takes about 20-30 minutes to complete the survey for each separate building. NRCan made some direct requests to specific building operators, but needs more data. If your building is located in any of the eight census metropolitan areas listed above, NRCan invites you to participate in the survey by going to: https://www.nrcanbuildingsurvey.ca. For more information, please contact Kathy-Ann Jackson Fong, Survey Manager, at kathy-ann.jacksonfong@canada.ca, or 343-292-6331. CFAA urges you to provide your data promptly since it will help guide NRCan’s future policies and programs, and support the development of benchmarks for the rental housing industry.

rentalhousingbusiness.ca | 39


JULY - AUGUST 2019 Rental Housing Provider Awards Rental Housing Provider of the Year

Property Manager of the Year Winner: Jennifer Bateman-Hatch of CAPREIT Finalists: Micheline AbouZeid of Skyline Living Ashly Chamberlain of Greenwin

Winner: Hollyburn Properties Limited Finalists: Sifton Properties Limited Skyline Living

Off-Site Employee of the Year

Winner: Danielle Cannon of Skyline Living Finalists: Jonathan Bursey of Hollyburn Properties Chris Jacobson of Sifton Properties

On-Site Employee of the Year

Marketing Awards Marketing Program Excellence of the Year – Lease-Up

Winner: Cinque by Drewlo Holdings Finalists: Carrington Ridge by Skyline Living The Livmore by Vertica Resident Services

Marketing Program Excellence of the Year – Social Media

Winner: Line Poulin of Skyline Living Finalists: Elizabeth Ball of Shiplake Properties Dwayne Whitford and Marshal De Souza of M&R Property Management

40 | July - August 2019

Winner: Sifton Properties Finalists: Selfie to End Youth Violence by Greenwin Inc. #WhyWeRent by Hollyburn Properties Limited


NATIONAL OUTLOOK Rental Housing Supplier Awards Suppliers Council Member of the Year

New Product of the Year

New Service of the Year

Winner: National Efficiency Systems Finalists: Alert Labs The Storm Insurance Group

Winner: Sumpie Sump Pump Sensor by Alert Labs Finalists: Snaile Automated Parcel & Smart Lockers by Snaile Canada SuiteSpot by SuiteSpot Technology

Winner: Rental Inspection Service by CTI Services Ltd. Finalists: My Portal by Payquad Solutions Rental Parking Management with iStall Pro by iStall.ca

CFAA Rental Housing Compensation Survey 2019-2020 The only Canadian survey of rental housing employee compensation and benefits. Find out market compensation for all key positions in the sector, at the city or provincial level. To purchase the survey, e-mail admin@cfaafcapi.org.

Visit www.cfaa-fcapi.org for more information.

rentalhousingbusiness.ca | 41


TRUSTED FOR OVER 40 YEARS

Since 1977, Lincoln Construction Group has been leading the way in a variety of services for commercial and industrial projects in the Greater Toronto Area and beyond. Ranging from asphalt paving and concrete work, to site work, landscaping and snow plowing, let Lincoln be the one-stop-shop for all your property maintenance needs. Built with determination, hard work and a high degree of respect and appreciation for each and every customer, we are committed to being the most thorough and responsive contractor to meet your every need. We assure you unmatched quality at a competitive price. Call us for a FREE estimate and consultation today!

ASPHALT

|

CONCRETE

|

LANDSCAPE

|

LEASEHOLD IMPROVEMENTS

|

SNOW PLOWING

2001 Albion Road, Unit 22, Etobicoke, ON. M9W 6V6. Office: (416) 675-7283 | Fax: (416) 675-7369 info@lincolngroup.ca | www.lincolngroup.ca


RHB’s forum for rental housing associations to share news, events and industry information

Hot Topics: EOLO explains its recent submission to the City of Ottawa on the proposal for landlord licensing, including better alternatives to address the perceived problems driving the issue. pg. 45 HDAA reports on its meeting with Mayor Eisenberger, and presentations about planning law changes, cannabis, lending and living trusts, as well as how to simplify the life of a property manager. pg. 49 LPMA discusses its actions on recent proposed changes to the nuisance bylaw and the results so far, as well as the program supported by the annual LPMA golf tournament. pg.53 WRAMA explores the rental housing experience, from tenant to rental housing provider under the RTA, starting with the adventures of WRAMA President, Andrew Macallum. pg.57

The Member Associations


City of Ottawa studies landlord licensing By John Dickie, Chair, Eastern Ontario Landlord Organization As part of a broader review of the regulation of rental accommodations, the City of Ottawa has engaged a team of consultants to review the options for landlord licensing, for regulating Airbnb and similar platforms, and for continued or revised licensing for rooming houses. The consultants will report in August or September, and City staff will make recommendations for action by City Council in late 2019 or early 2020. EOLO is active in the consultation and in the consideration of landlord licensing, which we strenuously oppose. The following is a summary of the EOLO submission to the City’s consultant on rental housing regulations. In a nutshell, EOLO submits that landlord licensing would reduce the availability and affordability of rental accommodations, while having little, if any, positive effect on the quality of rental accommodations. EOLO’s submission began with a review of the effect of rooming house licensing. Then, we presented a detailed discussion of the arguments for licensing (expressed as the goals it seeks to achieve) and the counter-arguments (that licensing will not achieve those goals). We also presented alternative, better solutions to the perceived problems that proponents of landlord licensing seek to address.

Rooming houses – a case study in licensing Ottawa’s experience with licensing rental accommodations has largely been with the licensing of rooming houses. According to the consultant’s background report, the number of rooming houses has fallen from 400 in the 1990s to 192 in 2001, and to 91 today. Seemingly, the number of rooms has fallen by a similar amount. Since 2001, the main regulation issue has been licensing. Both the facts, and economic theory, strongly suggest that the fees, and other costs of licensing, have reduced rooming house supply.

The goal of licensing was to improve rooming house quality. The statistics on 311 service calls clearly show a few rooming houses with issues, and the bulk of licensed rooming houses with no significant issues (generally less than one service call per year). To quote the consultant, “The number of problematic rooming houses is in the minority compared to the total, and they continue to be problematic even once licensed.” The facts strongly suggest that rooming house licensing:

• Has reduced rooming house supply • Has not eliminated problems in the minority of rooming houses that are problematic

Based on those facts, EOLO submits that rooming house licensing should be reduced. To maintain the current rooming house supply, and to potentially increase that supply, rooming house licensing should be changed to a performance-based system, in which those rooming houses with minimal service calls are released from the licensing system.

Rental licensing According to its proponents, rental licensing has five goals. Each is addressed below.

Improving ineffective enforcement Licensing proponents believe that municipal landlord licensing is a way to address shortcomings in the existing municipal and governmental regulatory network. However, a licensing regime does not provide any substantive additional enforcement tools against noncompliance with by-laws. Will people who do not follow the existing bylaws follow a new licensing by-law? Since the best predictor of future behaviour is past behaviour, it is logical to assume that scofflaws who disregard the current by-laws will also disregard a new bylaw requiring licensing. In Ontario cities that have adopted landlord licensing, municipal staff reports indicate that apartment licensing has “evasion” rates of at least 35% and perhaps close to 50%. (Fenn, Residential Licensing Effectiveness Review, 2013, p. 10)

rentalhousingbusiness.ca | 45


A licensing regime does not provide any substantive additional enforcement tools to address noncompliance. Rather, a licensing regime creates new procedural offences, which would tend to take attention away from the substantive issues. Laws engender more respect and work better when they address what is bad in itself rather than what is bad because it is prohibited. Specifically, failing to do necessary repairs after appropriate notice is bad in itself, but operating without a license is only bad if it is prohibited. That means the courts will tend to impose only modest fines for operating without a license, and little moral blame attaches to such an offence. The real hammer in licensing is the threat to shut a rental operation down if the license is not granted or is withdrawn. However, in practice, the threat of shutting down rental accommodation, thus evicting innocent tenants for a landlord’s non-compliance with licensing requirements, would be difficult to carry through and would work against providing more and better rental housing, since the evicted tenants might well find themselves homeless. A more cost-effective solution, which does not bring with it the downsides of landlord licensing, would be more concerted action in addressing the limited number of problem addresses, up to and including prosecutions for substantive property standards violations. When the violations are the failure to repair properties after notice, then the City could have the work done, and add the cost to the property’s tax bill.

Gaining entry Some licensing proponents point to the challenges associated with gaining entry to rental units for the purpose of ensuring compliance with existing regulations. Licensing is suggested as a mechanism that would help to get around the existing restrictions on entry in statute law and common law. The underlying assumption is that access would be a precondition to licensing, where inspection is demanded or required. However, licensing would not alter the law governing access. It is only the need to have a license to continue to operate that leads to suggestions that voluntary compliance – by landlords, if not by tenants – would be easier to secure. Under the Residential Tenancies Act (RTA), a landlord can gain access to a rental unit by giving a 24 hour written notice of entry to determine the condition of the unit, and whether the unit complies with housing and maintenance standards. EOLO suggests that the City could enact a by-law requiring landlords to comply with a demand from a property standards officer (PSO) to give notice of entry and then to enter with the property standards inspector to determine the condition of the unit. Landlord licensing is not needed to obtain entry.

Financing more inspections Proponents of landlord licensing see it as a way of collecting money outside the property tax system to fund more property standards inspections. However, the experience of other Ontario municipalities suggests that with all-in costs, rental licensing is a break-even proposition at best, and then only if applied with high recurring fees, and light or very selective enforcement. (Fenn, p. 9)

46 | July - August 2019


If indeed money is extracted from landlords to fund more property standards inspections, then that will tend to reduce rental supply and cause rents to rise to pay for those costs. That is the inevitable outcome of the economic forces that operate in a competitive market like rental housing. In fact, rents will rise more than the amount of the license and inspection fees. Rents will also rise because of the substantial internal costs of the work required to obtain the licenses, including collecting the paper required and the time and effort to schedule the licensing inspections.

Compensating for deficiencies in LTB enforcement Some tenant advocates have argued that the Landlord and Tenant Board (LTB) is ineffective in dealing with tenant complaints about maintenance, tenants’ rights, rent rebates, etc. They say the LTB is too expensive and complicated, and thus tenants cannot get the remedies they want or need. In fact, data from the LTB demonstrates that the LTB deals with a significant number of tenant-initiated cases relating to repair issues or complaints about landlord behaviour. In addition, licensing could lead to the building being shut down, forcing the tenants out, while denying them their recourse to rights under the RTA to remain as tenants. Consequently, tenants would be worse off with licensing. If there is a concern that some tenants do not know their rights under the RTA despite the LTB documentation and information services, then the cost-effective solution is to increase the City’s support for Action-Logement and Housing Help. If there is a concern that too many landlords do not know their obligations under the RTA, then the cost-effective solution is to support and encourage groups to provide more landlord education. EOLO already holds education meetings for our members. We are well placed to provide more education on landlord obligations (and also on tenant rights).

Helping fearful tenants enforce their rights Some tenant advocates say vulnerable and lowincome tenants are afraid to apply to the LTB

or to call property standards because they are afraid of retaliation from their landlord. However, the RTA gives tenants protections, and there are several support agencies for vulnerable or low-income tenants or for students. The experience of EOLO’s members and most other landlords is that tenants are not at all afraid to make requests and demands for repair work. Indeed, landlords find that numerous tenants make unreasonable requests with no fear at all. It is illogical to think that a tenant would fear the outcome of a maintenance complaint to property standards because the landlord could seek to evict the tenant at the LTB (despite the RTA protections), but the same tenant would not fear the outcome of a licensing investigation, which could lead to the building being shut down. A large part of what Action-Logement and Housing Help do with their current City funding is support vulnerable and low-income tenants. If there is concern that vulnerable tenants do not know their rights or are afraid of their landlords, the costeffective solution is for the City to provide (more) funding for Action-Logement and Housing Help, or to have those agencies direct more of their funding to address those perceived problems.

Other arguments against licensing EOLO also made the following arguments against landlord licensing:

• Licensing would reduce rental supply • Licensing would increase rents • The City would have liability exposure if a licensing regime is imposed

• Licensing misdirects attention from the real issues

See www.eolo.ca for the complete EOLO submission.

Conclusion EOLO submits that licensing should be relaxed on rooming houses, and that licensing should not be imposed on long-term rentals, since the concerns that are driving the demand for licensing can be addressed through less problematic and less expensive alternate approaches that do not risk reduced rental supply and higher rents. EOLO is in contact with the consultants, key City staff, the Mayor and City Council to oppose landlord licensing.

rentalhousingbusiness.ca | 47


Discover why most people choose Cogeco for Internet and TV.*

Contact your Cogeco Account Manager at 905-337-7909 or email stacey.norton@cogeco.com to discuss our customizable packages and offers for your residents.

*Based on a 2017 CROP Survey, where Cogeco is available.


President’s message HDAA has been busy working behind the scenes to build a stronger relationship with the City of Hamilton and reinforce the need to have rental housing providers and tenants work together to address housing issues. In a recent meeting with Mayor Fred Eisenberger, HDAA stressed the importance of consulting and working with rental housing providers when making decisions that affect the industry. A trial landlord licensing program is being looked at in September and some Councillors are pushing hard to implement it. Mayor Eisenberger said he will be asking staff about a more detailed review of how licensing is working in other cities, as well as how the recently implemented proactive enforcement regime is working in Hamilton. He is not 100% convinced that licensing will solve the real issues of unsafe housing but is not dismissing the idea outright. When we talked about the solution of supply, Mayor Eisenberger said the City is in the process of increasing supply with laneway housing, granny suites, and other programs to make it easier to create more units. We briefly talked about the need for a change of attitude toward rental housing providers and that a solution that works with them will be a longer lasting, more economically viable solution. We pointed out that it is counterproductive to have Councillors openly demonize rental housing providers. - Arun Pathak, President

Recent events May 8: Dinner meeting - Two guest speakers Edward John, Director of Housing Services for the City of Hamilton, discussed Hamilton’s approach to growth. He talked about the missing middle housing and Hamilton’s approach to creating more affordable housing. Hamilton is implementing a clear vision through providing missing form, affordability, and choice through “pre-zoning.” This strategy includes commercial mixed use, nodes and corridors, transit-oriented design – LRT, downtown secondary plan, laneway & secondary suites. The City wants commercial and mixed-use zones (CMUs) and transit-oriented corridor zones (TOCs) to be flexible, address climate change, be business friendly, and be economically resilient.

Important changes to zoning regulations include Reduction in Parking Requirements, Mid-rise and Tall Building, Built Form Regulations, New Permitted Uses, Microbrewery, Amusement Arcades, Local Commercial Uses, Amenity Area Requirements, and Incentives for Green Roofs. The development of laneway housing permits a secondary dwelling unit within a stand-alone building on a lot adjoining a laneway with a limited height and size requirement and restricted locations for windows and doors above the first floor, but eliminates parking requirements for the unit. Greg Maitinsky, Chief Executive Officer for Go Beyond Collection Agency, talked about cannabis legislation and a landlord’s ability to collect on damages related to growth and use. For those unaware of the legislation, tenants can carry up to 30 grams, cannot share with people under 18, can use in some public places, and can grow four plants per dwelling. It is legal to purchase online or from a licensed retail store, and all medical pot is protected by the Human Rights Code. The effect of cannabis on your pre- and post-move-out collections can be mold due to growing pot, disposal of plants and growth equipment left behind, and possible need for hazmat protection. Greg pointed out some great strategies a rental housing provider can follow to help reduce the impact of cannabis gone wrong. His pre-collection strategies include proper screening, superintendent training, awareness of tenant activities, and proper insurance.

June 18: Golf tournament It was another great day on the green for the annual golf tournament. Congratulations to all the winners and thanks to our sponsors for supporting this event. 50/50 putting contest winner: Liam Fleet – with a perfect score of 300! Best hole sponsor contest winner: Skyview Realty Closest to the hole • Male: Robert Fleet • Female: Karri-Lee Grant Longest drive • Male: Michael Huber • Female: Karri-Lee Grant

rentalhousingbusiness.ca | 49


Winning team: Diresco • Bill Norris • James Hill • Charles Koch • Todd Cadenhead

WINE CELLAR DRAW WINNER: Michael Holden with 66 bottles of wine!

May 23: Education seminar - Estate Planning Carmen Costa, The Costa Group, focused her presentation on the mortgage impacts since the stress test was implemented in 2018. For uninsured home buyers (anyone who qualifies with a down payment of 20% or more), the minimum qualifying rate is based on either the Bank of Canada’s five-year benchmark rate (5.14% at the time of writing) or the rate offered by your lender plus 2% – whichever is higher. Buyers with default insured mortgages (i.e., anyone who makes a down payment of less than 20%) must qualify using either the Bank of Canada five-year benchmark rate, or the rate offered by your lender (without adding the extra 2%) – whichever is higher. The stress test has limited the ability of traditional lenders to grow their mortgage books, with growth in residential mortgages at its slowest pace in 17 years. In late 2017, some buyers kicked into overdrive as they searched for a home, in an effort to avoid having to pass the mortgage stress test at the beginning of 2018. In fact, the Canadian Real Estate Association reported more than 46,000 homes sold throughout Canada in December 2017. The following month, after stress tests were put in place, housing transactions dropped by 14%. Carmen talked about how to overcome the stress test by using B lenders, which are large Canadian institutions that offer a variety of lending mortgage products. Clients that fall into the B category would be missing one of the major components that the banks and other A lenders require, such as income or good credit. The other option is private money, which involves borrowing money from a private individual or organization. While banks are traditional sources of financing for real estate and other purposes, private money is offered by individuals or organizations and may have non-traditional qualifying guidelines. Travis Dolinski & Mike Veldhuizen, MNP, LLP, talked about living trusts, whether they were good or bad, and how they relate to rental properties. Travis and Mike explained some of the best options available for passing along properties after death. They covered tax deductions for rental properties and when it makes the most sense to own a property through a corporation. The main takeaway from their presentation was the MNP LLP ExitSMART TM approach. This is a four-phased approach where the client retains control and makes all decisions; the focus is on what the client wants, not what the advisors suggest. They take into account all of the stakeholders – owners, management and family, following the “3 Circle Model” principles, which include a collaborative approach – working with other advisors and helping to provide discipline, to ensure progress toward a comprehensive result, but with flexibility to meet each client’s unique needs.

50 | July - August 2019


Simplifying the life of a property manager

flow that saves time and energy and encourages on-time payments.

For many property managers, time management is one of the most important, yet most difficult, skills to master. With every acquired property comes a new set of challenges, and you want to be mentally and physically present to tackle them. That’s hard when you’re also reviewing applications, tracking payments, handling maintenance requests, and booking amenities for your residents.

Do you think you’ll miss chasing down those chronically late-paying residents? No, I didn’t think so.

The best way to free up time for you and your staff is to go paperless. I’ll show you how much simpler property management can be when you do. Best of all, anyone with a basic knowledge of computers and the Internet can do this.

Online applications Prospects crave an easy application process, and online applications are the best way to do it. This way, prospective renters can submit applications, even at 1 a.m. when your offices are closed. Not only do online applications make it easier for prospects to apply, more people than ever expect to be able to complete the entire leasing process online. Most Canadians are using electronic lease signatures these days. If you’re not supporting that majority, you risk losing the attention of qualified prospects. To take it a step further, your online application system should work great on a desktop computer—and be optimized for mobile. Many renters, especially millennials, prefer to use their smartphones to apply online. This is a great upgrade to your business because mobile grows in popularity every year.

Online payments Online payments are easy to set up and more secure and trackable than exchanging cash by hand. They save time by eliminating the need for human interaction. No more being bombarded by cheques and puffy envelopes stuffed with small bills, so no more making trips to the bank to deposit rent payments. The online method of collecting rent is so time efficient that millennials, who grew up in the Internet age, essentially see it as a requirement. But don’t look at that as selfish! Online payments are beneficial for both residents and property managers. There is an ease of cash

Online maintenance requests It’s inevitable that every unit is going to require maintenance at some point. The more units you manage, the more it may seem like life is a series of things needing repair or replacement. You can reduce that stress and personal involvement when you take advantage of an online maintenance management system. With an online system, a resident’s maintenance request uploads automatically to the maintenance tracker in your online portal. This prevents your inbox from being cluttered by requests and eliminates the chance of a request getting lost in your email. It also puts an end to time-consuming phone calls from disgruntled residents. Enabling residents to submit maintenance requests online lets them track the upkeep of their rental units in real time. For maintenance staff, an online and mobile maintenance management system means the freedom to schedule, manage, track, and close maintenance requests in the field without having to report into the office, saving significant time and hassle. What better way for your residents and staff to work together to make sure your properties are maintained effectively? A win-win!

Online booking of amenities Ensure a consistent, friendly user experience by offering online amenities booking via a resident portal. Residents can instantly view and reserve available common spaces on a calendar. This is yet another way to free up time and eliminate phone calls. Online systems also prevent accidental double-booking, and they are completely fair and transparent. With online services, property managers can achieve a nearly paperless office while delivering seamless customer service at every point during the renter experience. We highly recommend using a property management software solution to help you do this—just make sure it has all the capabilities described here. Peter Altobelli – Yardi Canada

rentalhousingbusiness.ca | 51


Comfy living for tenants. Comfy energy bills for you. We’ll cover up to 50% of the cost when you upgrade to high-efficiency equipment The Affordable Housing Conservation Program provides financial incentives for high-efficiency space and water heating equipment, heat recovery, building automation systems and more.

Visit uniongas.com/affordablehousing to learn more.


President’s message Teeing off into another LPMA season I would like to sincerely thank our board members, as well as our landlord and associate members, for their continued support. LPMA’s board of directors has recently voted me back in as president. In this issue, we have a story that outlines the proposed amendments to London’s nuisance bylaw. This is an important topic for landlords. The May meeting was well attended and included an Ask the Experts panel discussion featuring representatives from various areas of expertise. The annual golf tournament will be held on September 9, the second year in support of Merrymount Family Support and Crisis Centre. The golf registration was sent to members the last week in June and sold out in seven days, a sign of the enormous popularity of the event. Dinner/general meetings start in October.   Wishing everyone a safe and enjoyable summer, - Shirley Criger, President

Proposed bylaw changes face revisions after LPMA raises concerns LPMA achieved a recent win by having proposed changes to the City’s public nuisance bylaw temporarily shelved — changes that could have resulted in landlords being fined up to $10,000 if their tenants held unsanctioned street parties. Despite this success, experts say the broader issue centres on the necessity of landlord groups monitoring policies that inform legislation before it’s passed, taking with it all chances of implementing changes. Objecting after the fact is futile, said London lawyer Joe Hoffer. “Municipalities are very sophisticated at coming up with policy initiatives and bylaw changes, and then implementing them without meaningful public input. That’s the bottom line and that’s common with municipalities right across the province,” added Hoffer. The City of London is proposing bylaw changes to curb the unsanctioned street parties, known as Fake Homecoming, that occur each fall at Western University. The City wants to recover increasing costs to fire and police services, and bylaw enforcement. Last September, 20,000 people attended the celebrations, and policing costs alone exceeded $100,000. According to the initial draft of the bylaw changes, property owners or landlords would have been responsible for tenants’ parties. If a party went

out of control, landlords would have to prevent it, or prove they tried to prevent it, or they could be fined $10,000. The most recent draft recommended increasing fines to $25,000. Hoffer said the initial issue for landlords centred on the municipality’s attempt to impose a liability on them. If landlords were in breach of the regulation, they could be charged for the cost of having police, fire and bylaw enforcement officers summoned to a nuisance party. “The landlord has to pay those costs; if they don’t, those costs go on their tax bill and eventually they’ll lose the property,” he said. “For landlords, that was simply untenable.” The changes would also require landlords to contravene the Residential Tenancies Act (RTA) by going on the property they leased to tenants — and to which they gave exclusive possession — without giving them the requisite 24 hours’ written notice. The RTA states that landlords can’t go on a property without notice unless there is an emergency. “It’s not an emergency if a tenant has people on their property,” Hoffer said. If landlords characterize a street party as an emergency, they will be a target for the anger of tenants and guests, he added. The uniforms of police, firefighters and bylaw enforcement officers offer them some protection. The correct way for landlords to respond to a nuisance party is to do it after the fact since, under the RTA, they have no control over whether events such as a party occur, Hoffer explained. They can serve a tenant with an N5 notice of termination, giving them seven days to correct the behaviour. If the tenant complies, the notice is void. LPMA’s Lisa Smith was alerted to the proposed bylaw changes by the City’s chief bylaw officer, Orest Katolyk. In March, Hoffer made a submission to the community and protective services (CAPS) committee at a public meeting, advising members to obtain legal advice and take the RTA provisions into account when re-drafting the bylaw changes. Hoffer told the committee the issue could be dealt with through an addendum to the lease that cautioned tenants about the consequences of hosting nuisance parties. This would entail imposing fines or charging tenants for the costs of summoning municipal employees. A second addendum to the guarantor form would require parents, who are guaranteeing the terms of the lease, to acknowledge that they would be equally liable for fines incurred by the tenant as a result of a breach of the bylaw.

rentalhousingbusiness.ca | 53


“I know people complain about kids these days, but I think they would respect their parents’ interests. Regardless, you have a way of penalizing somebody and collecting money when fines are levied,” Hoffer said. After Hoffer’s submission, the CAPS committee recommended that City staff review the changes. However, the second draft, presented in mid-April, did not reflect LPMA’s recommendations and continued to assume that a landlord had some legal basis to prevent tenants and their lawful guests from engaging in nuisance conduct. In addition, LPMA believed the City gave barely enough time to allow Hoffer to create a submission and meet the deadline to appear before the next CAPS committee and public meeting on May 28. After that meeting, committee members met in camera with legal advisors and, with no public debate, directed staff to bring back an amended bylaw. It will be presented in mid-August at a public meeting. In an interview, Katolyk said a task force was struck last November to consider options, including cost recovery. Its members decided to accomplish that goal by amending the nuisance bylaw to focus on preventing, ending and cleaning up after a nuisance party. He said the City engaged the town and gown committee, of which LPMA is a member, held a neighbourhood meeting and posted a survey on the City’s website requesting the public’s opinions on street parties and how to resolve them. Katolyk disputed LPMA’s contention that not enough time was given for the association to respond to the second draft of the bylaw. “The time was set by council so it wasn’t something that was debatable,” he said. “We’re aware of LPMA’s comments and we’re giving them regard in our next revision.” Hoffer believes landlord associations need to be vigilant within the urban areas in which their members operate. He advises them to monitor the online reports that go to specific committees and then create a strategy to support or contest a proposal. Tony Irwin, president of the Federation of Rental-housing Providers of Ontario (FRPO), said it’s not uncommon for industry stakeholders not to be consulted, although the provincial government has a greater capacity than municipal governments to contact stakeholders. “They don’t have the same budgets or the same staffing and perhaps they don’t have the same capabilities. It really is important to use every method you can to try to find information.” Even as the head of a provincial association, Irwin has often accidentally discovered important information through the media. For that reason, regional associations should ask members to update them if they learn of valuable news. Although information is accessible by reading committee or council meeting agendas on municipal websites, it’s better to find out earlier so an association can make a submission or arrange a meeting with the appropriate department.

“You want as many opportunities for contact that you can and you hope that you find out and act accordingly,” Irwin noted.

However, it’s wise for associations to have a plan in case they need to respond quickly to an issue; FRPO can also help.

“Their knowledge and their contacts coupled with our experience can make that work well together,” Irwin said.

LPMA golf tournament celebrates 20 years of supporting local charities When members hit the links for the annual LPMA golf tournament on September 9, they will be celebrating 20 years of raising money for London charities.

54 | July - August 2019


“We’ve always tried to find grassroots organizations to support,” said golf tournament chair Brenda Trineer. “It’s something we are very proud of.” Funds raised at this year’s tournament will mark the second of a two-year commitment in support of the Crisis Residential/Respite Program at Merrymount Family Support and Crisis Centre. Last year’s event raised $20,000. “Merrymount is a natural fit for our members,” Trineer said. “It’s a fantastic charity that provides a refuge for children who require a safe bed to sleep in.” Founded as an orphanage in 1874, it is the only centre in Canada to provide emergency overnight shelter for children whose parents are in crisis. The average stay is three or four nights. The tournament is a much-anticipated opportunity for LPMA members and associate members to get to know each other in an informal setting, said Trineer, who will be stepping down as tournament chair after this year’s event. “I’m proud of the fact that registration continues to sell out within a week to 10 days. It’s been an amazing 20 years, but I felt this anniversary would be a good time to pass the torch on to somebody else.” Merrymount executive director Paul Howarth said the funds raised this year and last will make a real

difference in the lives of children and families who turn to Merrymount in times of crisis. “A multi-year commitment allows us to plan our budget and to know that we’ll be able to provide help to children coming into our residential respite program for another year.” In 2018, the program provided a temporary home to 4,500 children from birth to age 13. That’s a significant increase over 2017 when just under 3,000 children were served. Of the centre’s 18 residential beds, only four are supported through government funding. “Each bed costs around $85,000 a year to keep open,” Howarth noted. Children enter the program for many reasons, including families that are struggling with addiction issues, child or parent mental health challenges, a tumultuous divorce, or a sudden illness. If family or friends can’t help with childcare during these difficult times, Merrymount can step in. “Knowing that their children are in a safe place allows parents to deal with whatever crisis they are facing so they can build a better future for their family,” said Howarth. “We are so pleased to be the recipient of the funds from this golf tournament, and to have the opportunity to strengthen our relationship with London rental housing providers.”

rentalhousingbusiness.ca | 55


O O ne n O e Vo ne M ic e e M s , ag sa az ge in , e! k in Th

bs cr

to

u ho

e. su is xt ne e th in y! s is da e m to ri b ’ll e sc in ou az ub ty /s ag ha ca s.

e

w

ib

al nt

t ou ab

Su re

M

us

in

es

Vol. 12 No. 3 Jul-Aug 2019

B

b ng

56 | March 2019

RH

si

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

The official publication of:


President’s message WRAMA continues its dynamic event series through the fall. Featuring guest speakers who support the provision of private residential rental accommodation, our events are timely and informative. With a federal election scheduled for October 21, the importance of being informed on party platforms cannot be understated.   Please join us! Event dates below with more details available at www.wrama.com.   Wednesday, September 11, 2019 Expert Panel Event  Hosted by AM 570 Kitchener Today’s Brian Bourke Tannery Event Centre, 151 Charles St. West, Kitchener, ON   Wednesday, October 9, 2019 Professional Industry Event  Guest Speaker TBA Golf’s Steak House, 598 Lancaster St. W, Kitchener, ON   Wednesday, November 13, 2019 Canadian Federation of Apartment Associations National Rental Housing Outlook  Guest Speaker John Dickie, President, CFAA Tannery Event Centre, 151 Charles St. West, Kitchener   Looking forward to seeing you at an event! - Andrew Macallum, President

Understanding the rental-housing provider experience In her article published July 13, 2019 in The Globe and Mail, Jennifer Keesmaat, chief executive of the Keesmaat Group and former chief planner of Toronto, provokes readers to rethink the way in which we confront housing issues. Suggestions range from renting out rooms, including ones vacated by grown children, to repurposing basements and building secondary suites to help address the housing crisis. There is a disconnect between our idea of property ownership and rights – owning versus renting and expectations about living in Canada.

I remember vividly, in 1999, starting my adventure into my career and adulthood in downtown Toronto. Having completed my tour of different universities in southern Ontario, I secured a job at Bloor and Spadina. That was the easy part. Trying to find a place to live, in a city which I was unfamiliar with while balancing my wants (budget, transportation) and needs (safe and secure) led to meeting a spectrum of humanity offering shared accommodation. From the group of male students renting out the enclosed balcony of their rented condo to the middle-aged single woman renting out a bedroom in her centrally located home, I eventually turned to a school friend who connected me with her parents’ acquaintances who rented me the top floor, semi-private bedroom in their annex-area Victorian home. I have many great memories from living in that house – an adjustment for the providers, who were empty nesters, and me, a single 25-year-old male. They were kind, gracious, and generous. Friendship and humour were found in our differences. Among the many conversations was explaining that the cheese I would bake on pizza was as startling to their noses as the unfamiliar preparation of kimchi was to mine. Our relationship was respectful and trusting. I learned to love kimchi, a traditional side dish of salted and fermented vegetables and a staple in Korean cuisine. Over the years since starting out in the Annex, I have lived in different housing situations and have gained experience as a renter, homeowner, and rental housing provider. There are many considerations in offering housing of any kind for rent. For those who own a home in the City of Toronto, you may be in a position to take advantage of a proposed draft zoning framework that responds to provincial changes in the Planning Act. The changes in the Act are intended to support secondary suites across the province and seek to simplify the creation of secondary suites. According to the City of Toronto website, a secondary suite is defined as a “self-contained living accommodation for an additional person or persons living together as a separate single housekeeping unit, in which both food preparation and sanitary facilities are provided for the exclusive use of the occupants of the suite, located 1 in and subordinate to a dwelling unit.”

rentalhousingbusiness.ca | 57


Homeowners who plan to venture into the business of rental housing provision are likely considering the risks and benefits that will confront them along the way. Questions about addressing a community need, influencing the value of a home and impact on personal routine, family life, and neighbourhood, are sure to be at the top of the list. Other considerations of building and renting out a secondary suite should include policy and regulation from every level of government. When you become a rental-housing provider, you are subject to the expectations of the Residential Tenancies Act, 2006 (RTA) and its enforcement through the Landlord Tenant Board (LTB), a quasi-judicial arm of Social Justice Tribunals Ontario (SJTO). Tenants in Ontario are provided free legal counsel, while rental-housing providers are not. As a result of the shortage of adjudicators, the provincial government has endeavoured on a hiring initiative. If you find yourself seeking support from the LTB, be prepared for a hearing date that is assigned months from the application date and an accumulation of legal costs. To illustrate the vast quantity of people taking the effort to seek support from the LTB via phone, there were 272,719 calls handled with an average time per call of 4 minutes and 57 seconds during this time 2 period. According to the SJTO 2017-2018 Annual Report (the latest available), there were 47,595 applications from rental-housing providers to Terminate & Evict for Non-Payment of Rent, which account for just under 66 per cent of the total number of 3 applications made. In Toronto, 32,633 landlord/tenant applications to the LTB were made, accounting for about 40 per cent of the 4 total 80,249 applications made from around the province. The RTA does not apply if the tenant shares a kitchen or bathroom with the landlord. Renting out your child’s bedroom after they have left home would be considered boarding. Renovating the basement complete with a private entrance would be considered a tenancy. As a landlord, you must use the Residential Tenancy Agreement form. If you do not provide the tenant with the standard lease form, the tenant can demand that the landlord do so. The “provincial lease,” as it is commonly known, is 14 pages long. Legal addendums in the “industry lease,” including items on damage from growing plants as well as the condition and care of the secondary suite, bring the total number of pages to 28. If the property address falls within a municipality that requires the satisfaction of a residential rental housing licensing by-law, there will be additional regulations, requirements, and costs. In the City of Waterloo (my present home), the cost varies (up to and beyond $70 per month, per unit) and the licensing fees and mandatory charges levied by the City of Waterloo have been declared “municipal charges and taxes” as determined by the Landlord and Tenant Board, and affirmed by Divisional Court. Among the documents required for a rental license in the City of Waterloo is a police criminal record check. If taking advantage of an incentive to build a secondary suite, the maximum amount of rent that a tenant is charged may be determined by the municipality and strictly controlled by the province,

58 | July - August 2019


with increases in rent permitted once a year and capped at 2.5 per cent. The allowable increase for 2019 is 1.8 per cent. As a rental-housing provider, you cannot force a tenant to leave the secondary suite if you change your mind about being a rental-housing provider. Additionally, the tenant can dictate whether or not they vacate the secondary suite if you decide to sell your home. Issues like this, as well as those surrounding pets, number of occupants (guests vs. partners vs. weekend parenting obligations), smoking (tobacco and marijuana, for example), and noise are all important and, in some cases, lifestyle-altering considerations. The rent charged is generated income and reportable to the CRA. Your applicable marginal tax rate impacts the amount of income taxed. Rental-housing provision and becoming a landlord is not for the faint of heart. The way in which rental-housing providers are viewed is changing, as the need for affordable private rental supply has become a viable part of the solution to Canada’s housing crisis. However, the need to understand the rental-housing landscape is

imperative for those hoping to enter the market and take advantage of the City of Toronto’s Secondary Suite Initiative or others offered by municipalities across Ontario. It took a sense of adventure to navigate my way through shared accommodation. It satisfied a need in my life at the time as owning a home does now. For every person I speak with about the benefits of owning a home, I hear an equally appealing reason for renting. Whether to offer unused space as a viable home for another person is a deeply personal decision that can provide many positive outcomes. It is the unintended consequences of not knowing and understanding the impact of layers of multi-tiered government regulation that can result in both tenants and landlords being dissatisfied with the experience. By Andrew Macallum, President, WRAMA, and Principal, Management First Professional Property Management 1

https://www.toronto.ca/city-government/planning-development/planningstudies-initiatives/secondary-suites/overview-secondary-suites/

234

http://www.sjto.gov.on.ca/documents/sjto/2017-18%20Annual%20 Report.html#ltb4

Don’t let your profits

away!

Take charge of your water costs and invest in efficiency. The Region of Waterloo offers funding to help landlords and property managers cut water waste. You can benefit from:

Landlords have saved up to

$250 to $500 per unit per year.

• $15 rebate for each toilet flapper replaced • free showerheads and aerator upgrades • funding for building‐wide upgrades to toilets, showerheads and aerators • funding for audits or sub-metering to bill fairly and encourage conservation • water softening and water conditioning solutions Do you manage an apartment building? Townhouses? A duplex or triplex? Contact us to learn more.

www.regionofwaterloo.ca/conservation | 519-575-4400, TTY: 519-575-4608 rentalhousingbusiness.ca | 59


SUITE COUNT

Brought to you by:

RHB SIDEBAR Capital Markets & National Investment Snapshot

National Apartment Group

Suite Count – Ottawa in the Spotlight

DAVID MONTRESSOR, Executive Vice President, CBRE - National Apartment Group

Ottawa is emerging as a major source of economic growth within Ontario. In 2018, the City achieved the third largest population increase in Canada, primarily driven by immigration and a diverse and growing local economy. Ottawa is home to the largest concentration of technology jobs in North America (10% of overall employment), which complements the strength and depth of the City’s public sector employment base. The City’s latest economic trend has seen the tech industry surpass 64,500 total workers, following 6.0% growth in tech-related jobs between 2012-2018. Demand pressures from a growing technology sector and higher immigration have crowded out core and workforce segments of the City’s housing stock. Ottawa’s rental market posted a decline in vacancy for the fourth consecutive year to 1.6%; meanwhile, rents increased on average by 5.4% in 2018, one of the largest increases of any major city in Ontario. The trend has rippled across the City with demand filtering from downtown to Nepean, Alta Vista, and Vanier, as commuter-oriented areas with proximity to employment become substitutes for more established neighbourhoods. Assets with value-add potential outside the City core are well-positioned to capitalize on the significant downstream demand in Ottawa’s rental market. Through 2019 and 2020, investors can expect cap rates to compress while renters compete for relatively limited rental supply and B-class rental rates adjust to levels consistent with the City’s increasingly higher income profile. Source: CBRE Research, CMHC

60 | July - August 2019


Local Knowledge. National Reach. National Apartment Group

8

$13B

OFFICES ACROSS CANADA

IN SALES VOLUME

Contact us to learn more about how we can help you

www.cbre.ca/nag-canada

Profile for Juan  Malvestitti

RHB Magazine Jul/Aug 2019  

RHB, RHB Magazine

RHB Magazine Jul/Aug 2019  

RHB, RHB Magazine

Advertisement