Issuu

CANADA’S NATIONAL PUBLICATION FOR APARTMENT OWNERS AND MANAGERS

VOLUME 13 / NUMBER 3 / AUGUST/SEPTEMBER 201 6

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Amenities issue Trending Kitchener Waterloo Swimming pool maintenance Q3 apartment market info

CHARTING THE FUTURE

OF SENIOR LIVING

PA R T O F T H E

Chartwell’s Maxime Camerlain shares insights on the burgeoning retirement industry

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Editor’s Note

A Thriving Neighbourhood: the Ultimate Amenity

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It’s our annual amenities issue, and for a timely change of pace, this year we decided to put a spotlight on the retirement sector. In short, senior’s homes today are not what they used to be. Today they are active, stylish, and well-equipped places with a gamut of high-end services and amenities. Our issue’s Industry Influencer, Chartwell’s Maxime Camerlain, provides a great window into the burgeoning sector that’s currently propelled by the baby boomer generation. While amenities continue to be an important force behind what makes a successful property—retirement or otherwise—as with everything in real estate, it’s the location that matters most. Location, location, location... Gone are the days when senior homes were tucked away on the outskirts of communities. Aging Canadians today are far more lifestyle oriented. Like younger generations, they want to live in the centre of it all, in thriving neighbourhoods where they can roam, dine, shop, exercise and stay connected. Amenities are also top of mind as we look into another active marketplace, the Kitchener–Waterloo Region. You can see some of the latest rental buildings to recently rise up in Ontario’s answer to Silicon Valley, on page 26. Our expert this issue is swimming pool guru Martyn Knowles of Hayward Canada. Looking for ways to improve your pool’s longevity and maintain it as a worthy investment? Read our Ask the Expert feature on page 28. Up front in our Transactions section, find out what Morguard’s Keith Reading has to say about the current Canadian apartment market and Q3 trends and notable sales that helped to shape the landscape.

Editor

Erin Ruddy

Publisher

Mitchell Saltzman

Senior Designer

Annette Carlucci

Designer

Jennifer Carter

Production Manager

Rachel Selbie

Digital & Sales Coordinator

Paula Miyake

Contributing Writers

aula Gasparro P Chris Seepe Barbara Carss Andy Schwartze

National Sales

Sean Foley, Stephanie Philbin

Digital Media Director

Steven Chester

Circulation

Maria Siassina

For sales information call (416) 512-8186 ext. 248

Canadian Apartment Magazine is published six times a year by:

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President Kevin Brown Group Publisher Melissa Valentini

Sincerely,

Erin Ruddy @ehruddy

Circulation ext. 246 Subscription Rates: Canada: 1 year, $50*, 2 years, $90*, US $75 International $100, Single Copy Sales: Canada: $12* * Plus applicable taxes

Quoteworthy

Requests for permission to reprint any portion of this magazine should be sent to Melissa Valentini

Authors: Canadian Apartment Magazine accepts unsolicited query letters and article suggestions.

“The biggest misconception about our industry is that it is boring and nothing happens. Actually, it’s hard to keep up.” -Maxime Camerlain

Manufacturers: Those wishing to have their products reviewed should contact the publisher or send information to the attention of the editor. The opinions expressed are those of the authors of articles and do not necessarily reflect the views of Canadian Apartment Magazine. This information is general and is not a substitute for legal advice. Sworn Statement of Circulation: Available from the publisher upon written request. Although Canadian Apartment Magazine makes every effort to ensure the accuracy of the information published, we cannot be held liable for any errors or omissions, however caused. Printed in Canada.

– page 20 4 | Canadian Apartment | Part of the REMI Network |

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CONTENTS COVER STORY

FEATURES

20 Industry Influencer

14 Ontario Readying CDM

Putting the Gold in Golden Years Chartwell’s Maxime Camerlain paints a picture of seniors housing—and it’s a lot more colourful than it used to be By Erin Ruddy

Incentives for Portfolios By Barbara Carss

Small City, Big Change By Erin Ruddy

The Taxing Truth By Chris Seepe

COLUMNS 10

Transactions The Apartment Market Today By Erin Ruddy

CMHC Achieving Safety for Seniors By Paula Gasparro

Insurance Coping with Disaster By Andy Schwartze

DEPARTMENTS 4

Editor’s Note

Ask the Expert

Smart Ideas

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ALL NEW LOOK

Coverage that is setting the standard in the Real Estate Management Industry. Online Exclusives

August/September 2016

The GTA rental market today A new report from Urbanation indicates the GTA rental market is in healthy shape, with tightened conditions due to fewer completions and less turnover. A notable surge in demand for rental was cited. Factors included the high cost of home ownership; the in-flux of millennials seeking independence; international immigration; and Canadians from other parts of the country moving to Toronto for work.

New Chartwell residence coming to Oakville Chartwell Retirement Residences announced it has started construction on Chartwell Waterford Retirement Residence, a new community located in North Oakville. Chartwell Waterford Retirement Residence will be set amongst the highly-popular and growing residential areas of the Palermo, West Oak Trails and Bronte Creek neighbourhoods.

A guide to glass balcony guards and breakage Over the past several years, there have been many instances of glass balcony guards breaking from high rise buildings. Amid these periodic reports of shattering panels, an expert explains how to mitigate the risks.

All the buzz

From the Green Bin

Expert Advice

Social Media

REMI Network a finalist for publishing award

CaGBC partnership expands green trades training

Sub-metering and the multifamily space

Connect with us on

For the fourth year in a row, the REMI Network has been named a finalist in the 2016 Canadian Online Publishing Awards (COPAs).

The CaGBC is expanding training to meet rising demand for skilled workers in the green building field.

Peter Mills talks submetering in multi-family space.

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Transactions

The Apartment Market Today Q3 2016 Trends and Insights from Morguard’s Keith Reading

Apartments continue to capture the attention of investors craving stability in what has become an uncertain economic backdrop. Notably, Calgary market conditions have softened significantly with vacancy rising and landlords offering inducements, such as free rent, against a backdrop of a slumping economy. “But we have seen this before,” said Keith Reading, Director of Research at Morguard. “Investors with a long-term view continue to look at Calgary given its long-standing record of positive performance.” Across the country, vacancy levels remain low, even with competition from the secondary condo market. Rents for the most part continue to hold at the peak for the cycle.

“Apartments have typically performed well during periods of economic weakness, which bodes well for the sector given a slow-growth Canadian economy over the past year,” Reading said, noting the MSCI indexed properties posted an average overall return of 8.4 percent. Canada’s rental apartment sector continues to see demand outpace the supply of assets currently available for purchase. That said, CAPREIT has been very active in acquiring apartment assets, and as a long-term market participant they continue to recognize the sector as a good place to park investment funds.

Notable New Sales:

Conundrum Capital/Q Residential acquired 80 Morelle Court, a 265-unit building in Scarborough for $38 million ($149,057 per unit)

Skyline Apartment REIT purchased a 416-unit portfolio in Sarnia/Niagara Falls for $32.1 million ($77,439 per unit)

10 | Canadian Apartment | Part of the REMI Network |

Boardwalk acquired an Edmonton property containing 165 units for $30 million ($182,750 per unit)

CAPREIT acquired a portfolio of 850 units in Ottawa for $180.3 million ($212,059 per unit)

Boardwalk purchased Auburn Landing, a 238-unit property in Calgary for $51 million ($215,000 per unit)

Transactions

In other apartment news… SOLD: 61 Yorkville Avenue In early September, Avison Young announced the sale of 61 Yorkville Avenue in Toronto, a residential property containing 19,646 square feet of land with 181 feet fronting on Bay Street and 109 feet fronting onto Yorkville Avenue. Property highlights: The property is improved with an 18-storey building completed in 2003 Freehold interest, subject to a long term land lease offering “blue chip” long term return Premier location, steps to the “Mink Mile”, ROM, Queen’s Park, Jesse Ketchum Public School, University of Toronto, 5 star Hotels, TTC and Bay/Bloor PATH

CHC and Dundee join forces to create one of Canada’s largest student housing operators Led by CHC CEO Mark Hansen, the new company—to be named Canadian Student Living Group—will manage 4,700 beds in 20 properties across 13 markets. The total transaction is valued at $420 million, and the company expects to have 100 percent ownership of 11 properties and a 50 percent interest in nine co-owned properties. CHC and Dundee see student housing as an attractive asset class because it is considered underdeveloped in Canada, where only three percent of post-secondary students live in purpose-built housing (compared with 12 percent in the United States and 23 percent in the United Kingdom). “We are extremely excited about this transaction and believe it creates a strong platform going forward for the benefit of all current CHC stakeholders,” said Mark Hansen, in a joint statement issued August 25. “The DAQ team has done a great deal to help create CSL, and position it to be a market leader in Canadian student housing with a world class portfolio of high-quality operating assets.” The two companies expect the transactions to be completed in November.

Upscale new rental building coming to Quebec Arrondissement 74, an upscale rental building located in the quiet neighbourhood of Charlesburg, Québec City, broke ground in mid-August. A partnership between GCS Développement immobilier and Fonds immobilier de solidarité FTQ, the six-storey project valued at $20 million, will include 92 rental units and two levels of underground parking. Other features will include panoramic views of Québec City, security cameras and a superintendent on-site 24/7. Occupancy is slated for the end of spring 2017. “Charlesbourg is a modern, sought-after Québec City suburb that offers an enviable quality of life and numerous wooded areas. This is why we’ve chosen this place to build an apartment building with condo-style units that will appeal to an active clientele in search of quality, peace of mind and proximity to services,” said Mr. Sylvain Gilbert, President and CEO of GCS Développement Immobilier. The contemporary-style building will have a rooftop terrace with spectacular views of the provincial capital. It will be built according to superior quality standards, ensuring maximum soundproofing and comfort. All apartments will have central air, large windows, and a balcony with glass railings. | www.REMInetwork.com | August/September | 11

CMHC

Achieving Safety for Seniors Maintaining Independence Begins with Adapting the Home Environment By Paula Gasparro

The Canadian population is aging and seniors constitute the fastest-growing age group. This trend is expected to continue for the next several decades due to a below replacement fertility rate, an increase in life expectancy, and the aging of the baby boomer generation. By 2036, the senior population aged over 75 is expected to double, making up twelve percent of the overall Canadian population. About 41 percent of this group of seniors over the age of 75 will have some form of disability. Many surveys conducted in recent years have indicated that the majority of seniors still wish to age in place. For those individuals, living independently at home is considered more cost effective and a welcome alternative to living in an institution. The design of much of our housing stock, however—whether it’s high rise apartment units or individual residences—does not allow for the increasing disabilities that accompany the aging process.

A study from 1987 indicated that over 45 percent of Canada’s elderly population who continued to live at home had some difficulty in carrying out one or more of the Activities of Daily Living (ADL) – getting in and out of bed, for example, going up and down a flight of stairs, bathing, bending, reaching, handling objects, and cooking. Because of this, the percentage of seniors living in private homes decreased as they aged.

12 | Canadian Apartment | Part of the REMI Network |

There have been several studies over the years that have outlined the social and economic benefits of enabling elderly people to remain in their homes. Adapting residences in order to accommodate aging Canadians’ needs is the surest way to achieve this. Helping seniors stay independent longer For landlords catering to aging tenants, there are a few minor, inexpensive adaptations

CMHC

that can be carried out to accommodate the changing needs of seniors. The simple rearrangement of furniture or the installation of a shower seat or grab bars in the bathroom can make a huge difference. For a larger scale look at what can be done, CMHC offers an assessment tool to identify home improvements or adaptations that will enable elderly individuals to remain independent for longer. The three basic principles of the assessment tool include: 1. An accessible environment Elderly residents should be able to fully use their complete apartment space in a safe way. Stairs that are too steep to climb, balcony thresholds that are too high, and toilets that are too low can create barriers for aging residents. Some of these barriers can be eliminated without major repairs or rehabilitation. 2. An attractive and practical environment It is important not to over-adapt a space. Only those changes that provide appropriate, practical and attractive environments for everyone should be carried out. In extreme circumstances, when some specific modification or specialized technical intervention is necessary, the simplest means should be used. Time and energy can be saved without turning a property into an emergency unit. Any specialized equipment should be avoided. 3. A flexible environment While the goal is to be accommodating, it’s important to making specific changes that will require ‘undoing’ later. The changing needs of older people can be satisfied by providing flexible environments and adjustable equipment that can be removed when no longer needed. Think safety first Many seniors cite similar barriers as they age, and these can include navigating stairs, reaching low cupboards and electrical outlets, accessing clothing, etc. Through minor modifications, it is possible to address safety issues in order to ensure that seniors have the ability to move about and accomplish tasks in the kitchen and the bathroom, for example. Floor surfaces can be replaced to ensure they don’t become slippery when wet. Electrical outlets can be relocated to higher areas, and new, accessible

use of their strengths and abilities. To help you learn more about home adaptations, CMHC has two publications called Maintaining Seniors’ Independence: A Guide to Home Adaptations and Maintaining Seniors’ Independence Through Home Adaptations: A Self-Assessment Guide. Download your free copies at www.cmhc.ca or call 1-800-668-2642.

shelving can be installed under the kitchen cupboards for easier access. Adding handrails in hallways, lever handles on doors and extra lighting in dark spots are also some other helpful and inexpensive adaptations that can be made. It is also good to remember that it is important not to overadapt the environment, but to modify it in such a way that elderly people can make best

ARE YOU CONTEMPLATING THE SALE OF YOUR APARTMENT PROPERTY? Consider the following: • Who will represent your best interest? • Who will give your property maximum exposure? • Who will deliver the highest value for your property? With over 25 years experience, tens of thousands of units sold, and hundreds of clients represented, we have consistently delivered superior results. Through our local and national coverage, we create maximum exposure, ensuring maximum value for your property.

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* Sales Representative This disclaimer shall apply to CBRE Limited, Real Estate Brokerage, and to all other divisions of the Corporation; to include all employees and independent contractors (“CBRE”). The information set out herein, including, without limitation, any projections, images, opinions, assumptions and estimates obtained from third parties (the “Information”) has not been verified by CBRE, and CBRE does not represent, warrant or guarantee the accuracy, correctness and completeness of the Information. CBRE does not accept or assume any responsibility or liability, direct or consequential, for the Information or the recipient’s reliance upon the Information. The recipient of the Information should take such steps as the recipient may deem necessary to verify the Information prior to placing any reliance upon the Information. The Information may change and any property described in the Information may be withdrawn from the market at any time without notice or obligation to the recipient from CBRE. CBRE and the CBRE logo are the service marks of CBRE Limited and/or its affiliated or related companies in other countries. All other marks displayed on this document are the property of their respective owners. All Rights Reserved.

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Feature

Ontario Readying CDM Incentives for Portfolios Program to Target Buildings Located in at Least Two Different Electricity Utility Jurisdictions By Barbara Carss

Proposed incentives for building owners/managers operating in more than one of Ontario’s 70+ electricity utility jurisdictions may not be as lucrative as other existing conservation and demand management (CDM) programs. The recently released draft plan for a performance-based method of calculating energy savings generally earns praise for its intent, but stakeholders asked to provide feedback have challenged some of the details, including the suggested incentive rate of $0.04 per kilowatt-hour (kWh) of measured savings for a maximum of four years. 14 | Canadian Apartment | Part of the REMI Network |

Feature

“Economically, it would be disadvantageous to pursue the P4P (pay-for-performance) program,” maintains Andrew Pride, an energy management consultant and former vice president of conservation at the now defunct Ontario Power Authority. “I would recommend a minimum of 5 cents/kWh over four years or to extend the 4 cents to a five-year term.” The proposed program arises from the Minister of Energy’s directive to the Independent Electricity System Operator (IESO) earlier this year, in which he called for a centrally administered CDM program targeting commercial, multiresidential and institutional portfolios with buildings located in various regions of the province. The IESO was instructed to consult with local distribution companies (LDCs) to develop a pay-forperformance (P4P) program that could be ready for launch in the fall of 2016. In part, it’s an effort to streamline the logistics of Ontario’s Conservation First Framework — which designates LDCs as the delivery agents of CDM programs and holds them responsible for attaining specified consumption reduction targets — for portfolio owners/managers who may have to deal with multiple LDCs. In addition, the P4P model moves beyond the current emphasis on replacing energy-consuming equipment and devices to a whole-building approach that involves a mix of retrofit measures, operational adjustments and outreach to building occupants. “Operational savings incentives are an important evolution of CDM that has up to this point been missing as an offering. Conceptually, this is a positive development with great opportunity across some, if not all, sectors,” observes Joe Bilé, manager of CDM program delivery with Toronto Hydro and co-chair of a broader working group of LDCs developing CDM programs. “Retrofit-based energy conservation measures alone cannot deliver optimized energy savings in buildings. There needs to be mechanisms to address and motivate a behavioural component, and performance-based programs account for this,” concurs Bala Gnanam, director of sustainable building

operations and strategic partnerships with the Building Owners and Managers Association (BOMA) of Greater Toronto. “A whole-building based program would also drive innovation and persistence of savings from the installed energy conservation measures and management best practices.” Pay-for-performance rules As envisioned in the draft program design the IESO released in mid-July, payouts will be calculated by comparing buildings’ actual metered electricity consumption against baseline energy modelling conducted prior to the program’s start. Participating customers would be required to enroll at least two buildings located in different LDC jurisdictions and commit to achieving annual energy savings of at least 5 per cent for a minimum two-year period. Buildings signed up for the P4P program would be ineligible for most other CDM incentives LDCs offer, with the exception of funding for energy audits and/or energy managers. However, LDCs will be able to count savings achieved within their territories toward their own mandated targets. Hourly meter data, at minimum, will be required for all enrolled buildings. Ideally, the IESO would also prefer buildings with initial annual electricity consumption of at least 2 million kWh, but states it may allow for groupings of smaller buildings that equal that total. Although designed as a four-year program, there will be leeway to opt out

after two years. In all cases, the IESO’s accredited third-party technical reviewer must confirm 12 months of participants’ savings data before they can receive their payout for each year. Program designers are now considering the comments they’ve solicited on the draft plan, including submissions from BOMA Toronto, the LDCs’ working group and consultants to the real estate industry. The proposed incentive rate and prohibition on P4P participants tapping into other incentives draw almost unanimous criticism, while respondents typically favour the flexibility to aggregate buildings to reach required consumption thresholds and agree that buildings should also be benchmarked through Natural Resources Canada’s Energy Star Portfolio Manager program. Pride’s recommended 5 cents/kWh incentive rate is actually the lowball among submitted suggestions, with others calling for a minimum of 6 cents/ kWh, or a frontloaded or back-loaded incremental scale with rates from 4 cents to 8 cents/kWh over a five-year term. These arguments are based on what would effectively be competing offers from LDCs under the SaveOnEnergy banner — such as $0.20 per kWh of savings from process and systems upgrades — and the higher risk P4P participants would have to take since their payout would first be contingent on achieving 5 per cent savings. If forced to choose just one program stream, as the proposed P4P rules contemplate, energy management

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specialists speculate that many customers will opt for the retrofit incentives they already know. “Instead of an either-or with the current list of LDCs’ offers, why not allow both?” asks Geoff Lupton, director of energy, fleet and traffic for the city of Hamilton and a member of the IESO’s 18-member Stakeholder Advisory Committee,

representing Ontario municipalities. “The strategy might be to calculate the incentive given to a particular measure and subtract part or all of it from the payfor-performance funding.”

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promoted by a different organization and with minimal interface with LDCs” that could create confusion. From the LDCs’ perspective, they provide a logical platform for coordinating CDM incentives for portfolios because they often already have relationships with prospective P4P participants through key account managers. “It would enable the LDCs to continue with their strong momentum in promoting retrofit and other programs. In fact, customers who believe their savings are actually higher than the LDC will credit can prove it and be rewarded through the P4P program,” Pride adds. “The programs can be complementary.” Yet, the promise of streamlined centralized administration is appealing to prospective applicants. “A complaint that is normally levied against the current SaveOnEnergy program, from many landlords and energy services providers who assist or act on behalf of landlords, is that some LDCs do not respond to inquiries in a timely manner, and in some cases, don’t respond at all. This must change,” Gnanam asserts. “It is hoped that a centralized program for multi-distributor consumers would make it easier for landlords and service providers to follow up on the status of their applications, payments and other inquiries related to their projects.” Relatively few organizations from the broader public sector will qualify for the program since they rarely own buildings in more than one LDC’s jurisdiction. Universities with campuses throughout the province, health care networks that straddle municipal borders and some regional governments operating non-profit housing and long-term care facilities in lower-tier municipalities served by different LDCs are among the exceptions, but the wider exclusion of Ontario’s cities disappoints Lupton. “I’m a fan of the pay-for-performance concept. If done right, it should allow for more comprehensive measures and controls,” he says. “The goal is to achieve kWh reduction, so the fewer the rules and the higher the participation levels, the better the results.” The IESO is scheduled to respond to comments by early September.

Barbara Carss is editor-in-chief of Canadian Property Management.

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New wave of apar Debt and equity raise experts After the meltdown of 2008, many lenders scaled back significantly, and there was not a lot of creativity in financing (i.e. interest only, longer amortizations, non-recourse structures etc. were not available). From 2012 to 2013 and especially over last two years, the market saw an exponential growth both in terms of supply and flexibility of loan metrics. For example, non-recourse loans or loans with burn-offs are more common now, and there are several new lender entrants to the market including multiple commercial mortgage-backed securities (CMBS) and foreign lenders.

Who are the new lenders? AMAR: We classify the lending market in Canada into eight or nine different lending buckets (banks, pension funds, CMBS, foreign lenders, credit unions, trust companies, etc.). Within each bucket, lenders have somewhat similar levels of lending criteria and pricing. Through our active involvement with CRELA (www.crela. ca), we are tracking a total of 110 lenders in Canada. There are 25 to 30 foreign lenders active in Canada, from the U.S., Europe and Asia. Credit unions and trust companies along with pension funds are also very active. Some of these lenders have branch offices in Canada, while others are working remotely. We have been very active at JLL last year and advised over $1 billion in debt transactions. In our experience, these lenders like stability of Canadian financial system compared to other global jurisdictions. STEVE: Our borrowers love dealing with us as we are able to bring new lenders to them and expand their lender pool. This is great from a diversification standpoint as they do not rely that heavily on one or two lenders.

Which capital pools do you see being very competitive? AMAR: There are seven CMBS lenders in the market right now. It is imperative for a borrower to check with all of these entities to find out their level of interest on any given deal as their product can vary a lot depending on timing of their pooling process. CMBS lenders can offer a 30-year amortization with a non-recourse structure often times in a secondary market or maybe even in a tertiary market – depending on asset quality of course. CHAD: Foreign lenders are also very aggressive on pricing and loan structure with a bias toward major markets. However, depending on the time of year and their allocations, we sometimes see a huge swing in the kind of loans offered.

tment financing How can a borrower benefit with such an abundance of capital? AMAR: If borrowers approached just one of these lenders, they would be disserving themselves. It’s imperative in today’s market to check with multiple lenders. We are often times able to take a deal out to the market to as many as 50 lenders if the need be. Borrowers are pleasantly surprised to see how we are able to get much better deals than their “home bank” for example.

CMHC vs conventional action CHAD: Given the sheer amount of supply of debt capital, the spreads on conventional mortgage have now compressed to as low as 150 bps over the GOC compared to 100 bps over the GOC for CMHC insured business. GARRET: However, the delta between a CMHC and conventional mortgage coupon still is large enough. So, it makes more sense on five-year mortgages to take conventional deals but not so much on longer than five-year

Amar Nijjar Senior Vice President & Practice Lead B.Eng, MBA

Chad Gemmell Vice President MBA LEED AP

deals. But there is a trade-off because with CMHC you pay a big premium up front. Conventional financing for apartments is becoming more meaningful because it offers higher leverage than CMHC loans. There is no up-front fee and rates are only slightly higher.

Is all apartment financing more of a commodity, or is there an art in underwriting which influences results? AMAR: There are more than 50 lenders in the apartment financing space today, and they all have slightly different underwriting models and viewpoint. Unlike most of the shops out there, we at JLL have in-depth research capabilities to back up the data, cap rates, rents, absorption, availability stats etc. Smart advisors understand the story behind the deal and will be able to package it effectively. This is critical when going to market in front of lenders. A good package will have the right level of back-up data to substantiate underwriting versus going out with a poor package to the lending community – which is akin to a panhandler simply asking for whatever can be obtained!

Garret MacGillivray Analyst B.Comm

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Industry Influencer

20 | Canadian Apartment | Part of the REMI Network |

Industry Influencer

PUTTING THE ‘GOLD’ IN GOLDEN YEARS Chartwell’s Maxime Camerlain paints a picture of seniors housing—and it’s a lot more colourful than it used to be By Erin Ruddy In the not too distant past, aging Canadians faced a grim decision over where to live out their so-called ‘golden years.’ They could lean on younger family members for support, thus allowing them to remain independent for as long as possible in the comfort of a familiar space, or they could settle into a nursing home, where reliable paid help was always on hand but the ambiance was more akin to a Long Term Care home.

| www.REMInetwork.com | August/September | 21

Industry Influencer

Today’s top amenities:

• Good, age-appropriate

programming (i.e. aqua fitness, yoga, etc.)

• Well-equipped fitness centres • Pet-friendly features, like a pet spa or a dog-walking service

• Kids zones for visiting

grandchildren (i.e. a games room)

• A place to have a drink with friends for ‘Happy Hour’

The Sumach is the first urban rental retirement residence for active adults in the 69-acre Regent Park revitalization in Toronto’s downtown east, which is being led by The Daniels Corp and Toronto Community Housing.

In 2016 the options are far less stark. Baby boomers today—a group known to be collectively healthier and more active than past generations—are choosing to live out their complete lives on their own terms. Looking for a quaint country club vibe? Not a problem. Prefer a cool, urban setting close to all the amenities of downtown? Nowadays you’re apt to find that too. And regardless of the location, you can rest assured knowing you’ll be surrounded by a supportive, engaging community with programs and services structured to meet your every need, all within the luscious confines of property akin to an upscale holiday resort. Sound too good to be true? Not according to Maxime Camerlain, Chartwell’s VP of

Marketing. “We consider to have a dozen larger competitors in various markets but there is actually quite a larger number of smaller operators – Chartwell being the largest owner and operator in the country”, he said. “I learned a long time ago that if you didn’t build it for them, the baby boomers would just build it themselves,” he quips. “As an industry, we’ve been around for about 25 -30 years, but in the last few years things have really begun to change. We’ve discovered that these baby boomers—many of whom took care of their own aging parents—have a clearer set of expectations of what retirement is going to be for them. And they don’t all want the same things. We have to give them more variety in order to appease the demands.”

What the future holds A few industry experts share their visions for the future of retirement homes in North America:

• Destination retirement communities, with people from across the country gravitating to these purpose-built, expansive communities where residents can age in place

• More choices, including condominiums, townhouses, and bungalows, arranged in small and large settings to cater to increasing consumer expectation and market demands

• Larger suites in retirement residences • More varied and lavish amenities and services (Example: home theatre in every suite) • Greater range of innovative programming, including opportunities for continuing education • Higher levels of health-care services supporting aging in place 22 | Canadian Apartment | Part of the REMI Network |

Camerlain points to the Canadian landscape today and notes that retirement communities offer the most complete buildings of any other asset class in real estate. “We put everything in there,” he says. ”Pools, gyms, hair salons, lounges. So now we are at that point where even though amenities are still important— what is becoming even more important is the location of the building. When you think about it, that’s the basis for everything in real estate. Location, location, location.” The old perception of a retirement home as somewhere off in the secluded countryside next to a quiet lake, is changing. The reason, says Camerlain, is that many aging Canadians don’t want that element of seclusion. “Most have spent their entire lives in an urban or suburban settings surrounded by restaurants and theatres,” he says. “Why would they want to suddenly give that up and head for the hills?” Bustling neighbourhoods where stillactive residents can freely roam are the hot commodity of the day. So much so that if Chartwell had its pick of development sites anywhere in Canada, nine times out of ten it would be in an amenities-rich neighbourhood. The phrase Camerlain uses for this is “externalizing the experience.” As an example, he points to Chartwell’s newest project in downtown Toronto, a 12-storey, 332-suite residence called The Sumach by Chartwell. A new partnership between

Industry Influencer Chartwell, The Daniels Corporation, Welltower and the building will provide retired occupants with a maintenance-free adult lifestyle set among Regent Park’s diverse range of dining options, arts and entertainment venues, and health and fitness centres. And though each suite will offer generous, private living spaces equipped with full kitchens, the residence will also include 82 underground parking spaces, 100 bike racks, a pet spa, close to 5,500 square feet of retail spaces, an outdoor terrace and a BBQ area for entertaining. “At the Sumach, we are putting our residents in a property where they will feel safe and secure surrounded by people just like them, but with access to a great neighbourhood,” says Camerlain. “In that sense the neighbourhood itself becomes the ultimate amenity.” Sharing space Camerlain, who got his start in real estate in the student housing sector, draws the analogy of the student residence, in which a group of similar-aged individuals are all living together under a single roof. Keg parties and all-night study sessions aside, there are many similarities. “The whole experience of living with people your own age has a lot of value,” he points out. “It brings a feeling of safety and security. There are common interests, common needs, but that said, not everyone is going to want the same things. One might prefer to stay on the property, another to take in the surroundings of the neighbourhood. But we know that our properties that often have the most success are the ones in an area buzzing with activity. The biggest misconception about our industry that it’s boring and nothing happens. Actually it’s hard to keep up.” Another misconception, Camerlain points out, is that retirement residences feel like hotels—clean and sterile, lacking in personality. “We strive for that blend of resort and home,” he says. “We found that you don’t want to fall into the trap of making a property seem too much like a hotel, because nobody wants to live in a hotel every day of the year. We also strive to give residents variety. For example, we are starting to build two or three different dining rooms with different menu options so that residents aren’t always eating at the same table. These are the little things that elevate the experience, yet still provide that feeling of home.”

Variety: the spice of life In its thirteen year history, Chartwell has built, expanded and acquired properties across four provinces—Quebec, Alberta, Ontario, and B.C.—and has a portfolio of 186 retirement residences with eight more in development. With such a vast portfolio and a national brand to uphold, you’d think the design and service offerings within each building would be relatively consistent. But not so, says Camerlain.

“This company was built by the combination of four portfolios,” he explains. “So right from the beginning we started off with a very diverse offering of homes. Very small for us would be 40 to 50 suites per building. Typically these smaller properties are exclusively independent with some support. Now we have a number of larger buildings, as well, but no two are exactly alike. Each building has its own atmosphere, history and décor. And they evolve. Maybe twenty years ago, a building

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Industry Influencer

“

I learned a long time ago that if you didn’t build it for them, the baby boomers would just build it themselves.”

was fully independent, but the clientele has since needed more care. So now that building has become more care-driven.” Camerlain says that despite the variation, overall Chartwell is moving in the direction of buildings with a wider mix of units. “Back in the day most of our homes had the same suites— small with no kitchen, or maybe a kitchenette. Now we’re finding people want more choice. If they want to be able to cook a meal they can.” Aside from suite-style, the levels of care offered to residents varies from property to property as well. From independent living with minimal support to assisted living with customized services, Chartwell offers the gamut, and even has “complete campuses of care” where every option is available under one roof. And for those residents suffering from memory loss, designated wings or floors called “Memory Living” exist. “Residents with dementia and Alzheimer’s require a different level of care,” says Camerlain. “Often times these people are quite physically fit. There are programs specifically for them, and support for their families. They require a safe, secure area and even a separate outdoor space.” Staff and residents Unlike your average apartment building, a retirement residence requires a huge staff

with a special blend of skills to manage daily, on-site operations. “It’s a very diverse mix of people. You have a general manager, you have a food services manager, you have a care and wellness manager, you have a lifestyle and activities manager, and so on, much like a resort,” Camerlain says. “Along with the unique skillsets that go with each position, you also need people management, business acumen, and a general appreciation of what it takes to deal with seniors and their families. You have to have that natural empathy—respect for the evolution of life. You have to like this work, and if you do, you are never going to want to do anything else.” And while it takes a great mix of staff to run a retirement residence, it also takes a mix of residents to fill one. But Camerlain says you don’t necessarily have to be wealthy to find your perfect housing solution. “People often get intimidated by the monthly cost. But you have to keep in mind that, typically it includes things like utilities, meals and housekeeping,” he says. “There’s an exercise to be done that involves calculating your living expenses right now, even if your mortgage is paid out. The cost becomes less daunting when you factor in these things. Still, if you want to live in the top of the top, then yes, there is going to be a higher price tag associated with those offerings. But I would tell you that generally speaking, as a

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business, the question of how we are going to build good, affordable seniors housing for the future is one we are all asking.” Economy of scale Finding a model that addresses the affordability issue is something Quebec has been successful at, and Ontario is watching its neighbour closely. “In Quebec, the issue of affordability was addressed many years ago,” Camerlain points out. “Real estate developers discovered that there was a certain limit of rent that could be charged, and therefore the only way to achieve profit was through volume. Today you’ll find that the average retirement home in Quebec has about 325 to 350 units, whereas the traditional home in Ontario has about 125 to 150.” What this means, of course, is that the larger the building, the lower the cost per unit. According to recent CMHC statistics, renting a unit in a Quebec home will cost the resident about $1,626 per month. In Ontario, the average rate per month is $3,499. The different is that, in Ontario that price will include things like meals and housekeeping. “The Sumach in Regent Park was inspired by the Quebec model in terms of volume, but takes the best of the Ontario system too,” Camerlain says. “At 332 units, the rate range is a lot more affordable, yet it has all the amenities with meals being à –la-carte. It is a different style home though, because it’s being marketed as a new rental design concept. It is our jumping board into a segment of the business we think has a lot of potential.” That segment is the highly vocal, physically fit 65- to 79-year-olds who don’t want to be confined to a traditional seniors residence. “Perhaps they have a winter spot in Florida and they just want a nice, maintenance-free dwelling for when they come home, one that’s right downtown and accessible,” Camerlain says. “Well the Sumach is just such a place. The only thing it doesn’t provide is care. In that respect, it is much like an independant apartment but with all the amenities of a resort.” Camerlain concludes that, despite the variation—the ages and stages, the personalities and levels of care his industry is striving to accommodate—the one thing that everyone seems to want at the end of the day is a nice place to congregate and share a drink. “Don’t underestimate the power of a good Happy Hour,” he says.

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Feature

Small City, Big Change “The Walter” is Just One of Several New Apartments Rising in the Bustling Kitchener, Waterloo Region By Erin Ruddy

Kitchener is a city on the rise. Located about a hundred kilometres west of Toronto, the metropolitan area (which includes neighbouring cities Waterloo and Cambridge) is home to roughly 563,000 people. Known for its industrial heritage, economic diversity is a defining characteristic of the area. Today it is recognized as a world-renowned high tech cluster, while simultaneously being one of Canada’s most intensive manufacturing communities. It is also home to the headquarters of some of the country’s largest insurance and financial companies. In 2015, CMHC reported that the area’s new home construction market had shifted from single-detached homes to apartments. Moving forward, demographic changes will continue to support this trend. “Housing demand will be supported by in-migration and job growth,” said Erica McLerie, CMHC’s Senior Market Analyst for the Waterloo Region. “In the longer term, as baby boomers age, the trend to smaller households will support the shift to higher density housing.” Now, here we are in 2016 and those forecasts have proven to be accurate. Apartments are rising up where family homes and student housing once exclusively reigned. In July 2016, The McGillivray Group, in partnership with Zehr Group and Vanguard Developments, announced the ground breaking of “The Walter,” a new residential development in mid-town Kitchener. Located at 100 Walter Street, the 4-storey, 38-unit rental building is slated for occupancy in the spring of 2017. “I’ve spent my career investing in real estate, and now I’m excited to take it to the next level with this new residential development in the Kitchener region,” said Scott McGillivray, CEO 26 | Canadian Apartment | Part of the REMI Network |

The Walter is slated for occupancy in the Spring of 2017.

of the McGillivray Group. “I see huge value in this area with the massive growth plan by the city, and all the high profile tech companies establishing themselves here. It’s definitely growing at a great pace, which makes it an excellent place to invest.” In fact, since 2004, the city and its many partners have invested heavily in the

development of major community assets and catalysts to re-energize the Kitchener downtown core. With more than $440 million spent to date, the goal has been to establish downtown Kitchener as “one of the best downtowns in North America.” McGillivray, of course, hopes to benefit from that revitalization. Situated directly across from green space and steps from

Feature

Ontario’s Silicon Valley

Employment in Canada’s high-tech sector is growing rapidly, creating the demand for more than 1,500 new jobs each year. As a leading hub of innovation drawing comparisons to Silicon Valley, the Kitchener Waterloo area is reaping the benefits of a lucrative sector. At the heart of it all is Communitech, an innovation centre located in Kitchener that supports a community of more than 1,000 tech companies—from startups to rapidly growing mid-size companies and large global players. A member of the Ontario Network of Entrepreneurs, which is funded by the Ontario Government, Communitech helps tech companies start, grow and succeed. Rental housing, of course, is an appealing alternative to home ownership for the younger workforce that comprise these companies, and developers are taking note.

Google HQ and the new LRT, The Walter is being marketed for its cool, unique and vibrant experience. As the host of the hit series, Income Property, star of numerous renovation shows and an expert in construction and real estate investing, McGillivray has gained a wealth of experience and knowledge in adding style and value to a property. His vison for The Walter is for upscale quality finishes and a contemporary flair, providing the perfect lifestyle for the urban professional looking for a rental property near downtown Kitchener. “We feel that Scott McGillivray’s involvement with this project reinforces the positive change happening downtown,” said Don Zehr, CEO of Zehr Group, a distinguished developer, recognized for its leadership and contribution to several high profile projects. ” Kitchener is on the cusp of something great and it’s a big validation to have Scott on board with us.” In fact, McGillivray’s expertise was one of the main reasons he was sought by developers. “Building high quality rental developments with a community-oriented design is a key focus for Vanguard, and Scott’s unique skillset is a huge asset,” said Paul Ballantyne, co-founder of Vanguard Developments along with Tommy Rakic. The foundation work at 100 Walter Street has already started and the building will be out of the ground by the end of summer. Building occupancy is slated for mid-April 2017.

Live, Play, Work

COVERING ALL LIFE’S BASES IN ONE CONVENIENT LOCATION Real estate developers are taking note of the ‘live, work and play in place’ concept and it’s becoming a driving force behind where we’re seeing new apartments. In Kitchener, for example, The Setman Group is in the midst of converting a commercial tower into a mixed-use residential space. The property is located at 30 Duke Street in the heart of downtown Kitchener’s City Centre District. It sits near to City Hall and amid the city’s highest density of executive office space. “We are waiting for building permits to be issued, so construction has not yet begun,” said Denny Cybalski, President. “But when complete there will be four floors, each containing seven one-bedroom units.” Cybalski said the units will have large windows, laminate floors, their own heat and air conditioning units, a controlled entrance, modern kitchens and bathrooms, and each suite will be designed with a one-off layout. But what makes the property so unique is all the amenities that happen to come with it: a movie theatre, a bank, a café, a dry cleaners, a seamstress, and a print shop available for tenants to use. “There is a high demand for one-bedroom units for people starting out in the work force and wanting to live, play and work in the same area downtown,” Cybalski said. “This is a benefit to the large number of tech companies starting up in the Kitchener downtown neighbourhood and their employees.” On the urban development front, Kitchener has been attracting attention recently with more businesses moving back into the downtown core and more people looking for everything in one handy location. “We are seeing a lot of new residential spaces being built between commercial spaces,” Cybalski said. So is this a trend we’ll be seeing more of in the future? “Yes, we think it will be an ongoing trend,” he said. “People don’t drive cars like they used to. To get to work, or to home, or to enjoy entertainment opportunities, they prefer to use the LRT, bikes or to walk there.” We’ll be keeping our eye on this new development, and future updates will be available at: www.reminetwork.com

| www.REMInetwork.com | August/September | 27

Ask the Expert

Getting the Most from your Swimming Pool

Martyn Knowles, Commercial Sales Manager for Hayward Canada and Certified Pool Operator

Whether it’s a standard outdoor pool or a luxurious indoor facility with a spa, swimming pools make wonderful amenities that appeal to all tenant types. To help building owners get the most out of their pools, we spoke with Martyn Knowles, Commercial Sales Manager for Hayward Canada and Certified Pool Operator. Mr. Knowles is also a member on numerous committees, including Ontario Building Code revisions, Ontario Ministry of Health and Long-Term Care Code changes and implementation of Coroner’s Report and directives. His aquatic credentials include aquatic supervision, lifeguard training and administration. What qualities of a pool contribute to the overall experience for the user? The common sensory experience of the pool user is the water itself. All users will want to have water that is the right temperature, sparkling clear and chemically balanced for safety and lack of irritation. If one of these three elements is not up to anticipated standards, then the user will be dissatisfied. 1. Temperature: Temperature is completely subject to the individual but extremes should be avoided. Since water can conduct heat away from the body better than air, pool temperature is typically warmer than the air temperature. As a matter of practice, most pools used for leisure are maintained between 27-29° C (82-85° F). 2. Clarity: Clarity must be maintained so that the (required) black disc at the bottom of the pool is clearly visible in order to meet Health Regulations. But ideally, the water should sparkle under normal conditions.

3. Water conditions Water conditions include many factors and the required standard readings are intended to protect the health and safety of the users. Both disinfectant (Chlorine/Bromine) and pH (balance of acidic/alkaline) levels must meet the criteria of the Health Department standards. One often overlooked factor is the amount of disinfectant by-products in the water and air. If you can stand on the pool deck and smell that characteristic “chlorine” odor, then these by-products are present and can irritate eyes, lungs and mucus membranes of the body. In most cases, disinfectant chlorine in the water will not irritate or smell, but chlorine by-products, if not treated and removed, will certainly do so. 2. What are some common maintenance problems that should be fixed to ensure pool longevity? The Pool Health Regulations, in most cases, are intended to avoid conditions or operations that would pose a health threat to the users. This same regulation does not prescribe standards of operation for the protection of the pool equipment, treatment systems

28 | Canadian Apartment | Part of the REMI Network |

or pool shell. There are industry standards that note the methodology for maintenance and proper operation, however in Canada; there are no required certifications or training standards mandated for the pool operator and/or technician. I would suggest to owners of commercial pools and spas that the number one way to ensure longevity of the pool and the pool equipment is to establish a proper maintenance plan with a reputable firm and proper training of staff. Secondly, I would suggest that all recreational bodies of water be equipped with an automatic water quality controller that would sense when the primary chemicals are not in proper range and automate feeding devices to make the appropriate corrections. In this way, proper disinfection is assured and the pool equipment and shell are exposed to more balanced water conditions. 3. Are there any emerging trends that property managers considering an ‘update’ to their pool should be aware of? The trends in facility construction and renovation follow the progress in efficiency and technology, some of which are:

• LED underwater lighting to ensure minimal electricity use and vastly improving safety versus conventional high voltage underwater lighting. • Use of automatic chemical controllers that allow for online communication, chemical/ operational tracking and supervision of commercial pools. The controller will download and record not only the readings from the pool, but also alarms that are triggered by improper operation. This also means that a central office can view the operational performance of several facilities at the same time. • While the underwater portion of a commercial pool shell must be white by code, the waterline tile can be any colour. Many choices of tile are available but a high gloss finish will allow for easier cleaning. • While it has been law that all pubic spas must be fitted with Safety Vacuum Release Systems, pools also have the possible liability of suction entrapment of bathers. The installation of these Vacuum Release Systems should be seen as mandatory for pools as well.

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4. On the technology front, how have pools changed? What can we expect in the future? Chlorine resistant pathogens, viruses and bacteria are an emerging concern, just as antibiotic resistant disease is in the medical community. The use of Ozone and UV light, when properly installed into the pool filter system, is an answer to the secondary sanitation recommendation of the CDC for pool use. An added benefit of UV/Ozone in water treatment is the destruction of chlorine by-products, thereby removing the “chlorine” irritation and odor. On the aesthetic side of pool design, the use of infinity edge or zero edge pool design is becoming an excellent choice. This vanishing edge design, especially when combined with pools on high rise podiums or located on the top of a high rise building, makes a dramatic statement. There are many examples of this feature constructed in the Toronto Condo Market over the last 10 years. This has only been a brief overview of some of the factors in the design, construction and maintenance of commercial pools. For further information, contact a commercial pool specialist near you.

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| www.REMInetwork.com | August/September | 29

Insurance

Coping with Disaster Breaking Down the Cost of the Fort McMurray fires By Andy Schwartze

In late June, 2016, the Fort McMurray disaster was just beginning to become the focus of insurance actuaries. How much would this unfortunate disaster cost Canadian insurers? What would the international reinsurance community have to kick in—and, of course, how would this nasty event affect our insurance rates going forward. Although much of the information is readily available on the internet, I thought it might be interesting to look at the overall picture and gain some perspective on the world of North American natural disasters, which are making a surprisingly new impact on all of us, and at a time when economies are far from robust. In the first half of 2016, worldwide economic losses have risen to US$70 billion, up from the first half of 2015 by a significant US11 billion. That is up just over 18 percent. Now, not all of these losses are necessarily insured, according to a Munich Re report published recently. Apparently, while the insured portion of economic losses in the first half of 2015 was US$19 billion, the insured portion of economic losses in 2016 (so far) is US$27 billion. That’s just over a staggering 40 percent increase from one half year to the next. The Fort McMurray disaster has clearly been a significant contributor to these statistics. Two reputable consulting firms vary noticeably in their estimates of what that fire will ultimately cost the insurance industry, this having been

estimated from a low of CDN$3.58 billion to a high of CDN$4.6 billion. Inevitably, in the case of such major catastrophes, the prediction of cost is ultimately exceeded by harsher realities. The problem with such events is that the cost attributed to the significant delays, that are encountered, cannot be factored in. Such a vast level of damage simply cannot be dealt with quickly; the resources are too limited. In the U.S., natural catastrophes are up in 2016 from US$11 billion to US$17 billion. The hail season in Texas has already sucked US$700 million out of the system. Tornado season is just starting and water, the most serious concern of North American insurers, will yet make its mark on this insurance year, one that is forecast to be a “La Nina” year. Reinsurers are expecting

30 | Canadian Apartment | Part of the REMI Network |

significant drains on their “catastrophe reinsurance contracts”. It sounds bad, but in reality the property/ casualty industry is very well capitalized. Whatever happens, the money will be there. So, none of the industry experts, who opine on the state of the industry, are as yet suggesting that there may be any kind of liquidity problem in the future. The property/casualty insurance industry (these are 2013 numbers) is about 4.5 percent of the U.S. GDP. Its capital is safely invested in fixed income instruments to the tune of about 64 percent, with a slowly growing position in equities, as interest rates are so dismally low. The Canadian insurer statistics are not that much different; the industry is just proportionately smaller, although the regulatory oversight in

Insurance Canada is more stringent, thus providing Canadians with a bit more peace of mind. But where does this lead us, as individual buyers of insurance, personally or corporately here at home? What can we expect down the road and how will that affect our insurance protection, not to mention the attendant costs? For some time now, I have been steering risk related conversations back to July 8, 2013, a day when central Ontario woke up to a very serious natural catastrophe. Rains flooded the area to such a significant extent that public mobility was seriously compromised and, the next day, some 30,000 claims were reported to insurers everywhere. Additional claims were inevitably reported in the ensuing days and the disaster recovery and repair industry was overwhelmed. Water makes a bad enough mess, but when unattended quickly kicks in an additional mould problem which is very expensive to remedy. This event was a wake up call to insurers everywhere. While home insurance policies do not cover natural flooding, the backing up of sewers caught them flatfooted. Irrespective of that, commercial insurance policies typically cover natural flooding, so there was no dodging that bullet in any way. This particular event (which was followed at year’s end by another nasty ice storm)

drew immediate attention to the inadequacy of decaying public infrastructure and the importance of preventative flood control measures in buildings with a below grade exposure to excess water. This new awareness has now become a permanent part of the underwriting process and we can see the changes in attitude by underwriters who assess risks that they are presented with. Low lying flood plain lands are being rated higher (even the Toronto GTA has a variety of identifiable flood zones) and increasingly insureds are being asked to demonstrate upgrades to buildings that are relevant to water related claims. One major Canadian insurer, significantly frustrated with losses in the apartment building sector, recently announced a complete withdrawal from that niche. The others have noticed and the

predictable tightening of rates by the few insurers, still in that space, is very evident. What does this all come down to? It is clear that the North American insurance market has learned that natural catastrophes are the new “game in town”. They are struggling with attempts to forecast how this new reality will impact their bottom line, and so far it is a guessing game that will probably never be subsumed to the rules of actuarial prediction. While many of us will continue to be proud of what fine insurance risks we are, the world of reinsurance (the one that bears the brunt of these huge events) is already passing on the bill for its contributions. So, while local conditions may not be that different, the disasters that occur elsewhere will be reflected in what we have to pay at renewal time.

Andy Schwartze, BSc., MBA, CIP, is an insurance broker specializing in property management and real estate. He is a former President of the Insurance Institute, has taught in the community college system and provides continuing education to other brokers. He can be reached at andy@takecover.ca. For any comments, you can go2:54 to PM TakeCover_CAM_August_2013_FINAL.pdf 1 13-07-22 www.takecover.ca and post them on their new blog.

| www.REMInetwork.com | August/September | 31 EliteContract_CAM_AugustSeptember_2016.indd 1

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Affordable Rental Housing is Taxed Higher than Single Family Homes By Chris Seepe For most landlords in Ontario, it comes as no surprise that many municipalities tax multi-residential rental properties anywhere from 50 to 250 percent more than single family homes or condominium units. But, what many tenants don’t realize is that those high taxes are effectively pushing up their rent. This practice of over taxing the rental housing sector is adding fuel to an already pandemic rental housing crisis in Ontario. Typically, the property tax rate is determined by the municipality, and is applied to the property value assessment determined by Municipal Property Assessment Corporation (MPAC). Property tax = property value x applicable municipal tax rate(s) and education tax rate. For example, the property tax for a home which has been assessed at $300,000 = $300,000.00 x 1.100000% = $3,300.00. For those considering investing in a multi-residential property, below is a list of Ontario municipalities’ property tax rates, in order of worst offenders to best: Location Hamilton (Urban) Orangeville Toronto Halton Hills (Urban) Burlington (Urban) Burlington (Rural) Oakville Burlington (Rural) Milton (Urban) Milton (Rural) Oshawa Brock Clarington Whitby Ajax Pickering Scugog Uxbridge Mississauga Brampton Caledon Orillia Collingwood Bradford New Tecumseh Aurora Barrie (Urban) East Gwillimbury Georgina King Markham Newmarket Richmond Hill Vaughan Whitchurch/Stouffville

ONTARIO PROPERTY TAX RATES (2015) Residential Multi-Residential 1.383361 3.451109 1.410898 3.453851 0.7056037 1.7265482 0.896794 1.782388 0.910620 1.803566 0.865139 1.710788 0.849481 1.675371 0.859260 1.687395 0.757464 1.467236 0.727371 1.399170 1.572389 2.765896 1.410671 2.464050 1.341171 2.334329 1.303649 2.264293 1.285391 2.230215 1.280144 2.220423 1.236323 2.138631 1.178204 2.030151 0.888635 1.428825 1.115127 1.763816 0.896546 1.376615 1.365073 2.075631 1.244804 1.810123 1.119161 1.616821 1.040052 1.495112 0.946098 0.946098 1.324051 1.324051 0.9447664 0.9447664 1.193835 1.193835 0.933277 0.933277 0.805732 0.805732 0.992400 0.992400 0.830899 0.830899 0.837242 0.837242 0.879414 0.879414

Diff. 2.07 2.04 1.02 0.89 0.89 0.85 0.83 0.83 0.71 0.67 1.19 1.05 0.99 0.96 0.94 0.94 0.90 0.85 0.54 0.65 0.48 0.71 0.57 0.50 0.46 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

149.5% 144.8% 144.7% 98.8% 98.1% 97.7% 97.2% 96.4% 93.7% 92.4% 75.9% 74.7% 74.1% 73.7% 73.5% 73.5% 73.0% 72.3% 60.8% 58.2% 53.5% 52.1% 45.4% 44.5% 43.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Developing your content strategy By Steven Chester Minutes after sending that first tweet, thousands of passive onlookers instantly turn into clients and advocates, with media buzz sending audiences flocking to your door. If only it worked that way. Without a content strategy behind those social media pushes, your message is very quickly on its way to being lost in the plethora of brand noise. Think about the story you want your organization to tell and how you can position it as a thought leader. What questions are being asked in your industry that your business can answer? Write down your ideas, and generate some compelling content. Think of visuals as well – if your business designs or installs anything, you’ve got it made. Otherwise, are you attending any events? Presenting to audiences? Taking part in charitable events? Winning awards? What about something lighthearted around the office where you’re showing some personality? Then, create a content calendar that illustrates what you’re going to say. Mix those content posts – at least two each week – with shares from other groups and influencers you want to impress. In that calendar, sandwich between those posts the one thing you’re really there for: marketing. People get it. They know you’re a business. As long as you’re not hammering away the marketing messages, you can get away with slipping a weekly marketing message in between that great content.

Note that 150% in the above table means two-and-a-half times higher. Since property taxes generally represent the largest annual expense (financing is not an ‘operational’ expense), as an investor you should consider property tax rates of municipalities in which you’re considering buying (or building) a multi-unit rental property—not just for their unfair tax practice but also for the actual tax rate of multi-residential properties.

Steven Chester is the Digital Media Director of MediaEdge Communications. With 15 years’ experience in cross-platform communications, Steven helps companies expand their reach through social media and other digital initiatives. To contact him directly, email gosocial@mediaedge.ca or call 416.512.8686 x224.

| www.REMInetwork.com | August/September | 33

Smart Ideas

THE COMFORT FACTOR

When it comes to creating a happy, stress-free residence for tenants, nothing spells comfort like peace, quiet, and convenience…

Soundproof windows All property managers know that noise complaints aren’t just common, they’re also difficult to resolve. Especially if the sound is travelling through the windows rather than the walls, from outside sources landlords have no control over. While double pane windows do stop some of the noise, an even better solution is Soundproof Windows, which can reduce noise levels by 75 to 95 percent. Soundproof Windows custom builds units that install right over the current windows and have been tested and verified to be the most effective solution available for shutting out noise. www.soundproofwindows.com

Responsive temperature control Up until recently, property managers of electrically heated buildings had few options available to address the need for responsive temperature control at a reasonable cost. This is no longer the case today. Thermium by the Canadian company Ecovena, for example, is a combined hardware and software solution that can reduce electrical heating costs by 20 to 35 percent. The heating management system allows users to control and monitor energy use in multi-residential buildings, ensuring only the energy required to maintain appropriate in-suite temperatures is provided to each suite. While residents continue to control their heating through their existing thermostat, Thermium seamlessly ensures that excessive energy is not being used. www.ecovena.com

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