project. In the context of strained supply, such tools are vital. CMHC expects that without similar incentives, affordability targets will remain out of reach. MLI Select, by aligning financial incentives with social outcomes, makes purpose-built rental developments more feasible and compelling for developers.
Bonding challenges and who they affect
As of late 2024, CMHC significantly tightened its enforcement of surety bond requirements under MLI Select—a move with implications for rental project timelines and feasibility, particularly for developer-builders.
Surety bonds, including performance and labour/materials payment bonds, are now mandatory for MLI Select projects, even where developers self-perform construction or hire a general contractor. Historically, this requirement was not as frequently enforced; for now, CMHC applies it uniformly across projects over 25 units.
This requirement particularly affects three key groups:
• Self-Performing Developers: These developerbuilders now face the full weight of underwriting and surety risk without traditional contractor intermediaries to assume it. It can be difficult to place this type of business.
• Developers Working with General Contractors: These firms must now assess and validate their contractors’ bonding capacity. Prequalification accuracy is critical; letters from brokers alone may not suffice. Only letters from surety companies with detailed track records carry weight.
• Specialty Sub-trades: Many subcontractors are being asked to post bonds. Without prior bonding relationships, they must establish new bond facilities, often under tight timelines and unfamiliar requirements.
When bonding is not properly addressed early in project planning, CMHC may delay or withdraw funding, costing developers millions and disrupting project delivery, presales and unit availability.
The value of industry experience
Navigating the world of surety bonds requires a partner familiar with CMHC’s requirements, particularly for developer-builders. The right support can make a significant difference throughout the MLI Select bonding process, guiding clients through each stage of compliance to enable smoother financing and timely project delivery.
For self-performing developers, presenting clear, well-structured financial and operational
“When bonding is not properly addressed early in project planning, CMHC may delay or withdraw funding, costing developers millions and disrupting project delivery, presales and unit availability.”
documentation is essential to strengthening underwriting outcomes. A strategic partner who cultivates strong relationships with surety providers and engages directly with underwriters can significantly streamline the bonding process. Proactive involvement—shaping compelling financial narratives, assembling thorough documentation, and anticipating underwriter needs—helps minimize friction, accelerate approvals, and safeguard project timelines.
When approaching surety firms, it’s essential to work with someone who does more than manage paperwork. The right partner collaborates to package financials effectively, clearly communicates the project’s value and viability, and fosters underwriter confidence. This level of engage-
ment can be the difference between a delayed start and a successful launch. Canada’s housing affordability crisis demands not just ambition, but action. CMHC’s MLI Select presents a powerful tool for developers aiming to deliver socially responsible rental housing, offering incentives that align with affordability, accessibility and energy efficiency.
Yet the recently enforced surety bond requirements can pose complex roadblocks. Early engagement, strategic underwriting and expert surety guidance are now vital prerequisites for MLI Select success. With the right partner, however, you can turn policy challenges into financing opportunities and new housing for Canadians.
Slava Kolmatskyy is vice president of Surety at NFP Canada. Find out more at nfp.ca
THE DISCONNECT
by Sami Kazemi, Principal, BDP Quadrangle
Canada’s urgent need for affordable, accessible rental housing has exposed a disconnect between the architectural form of multi-unit residential buildings and the human experience of living in the spaces within them.
Somewhere along the way, planning restrictions, exterior form and development metrics increasingly drove the building design, resulting in unit layouts that are left to conform into these parameters, instead of the other way around. We have had to work harder to keep liveability at the front and centre. When housing becomes the residual space within a project, the outcomes are predict-
able—housing that is technically efficient but falls short experientially.
As the need for rental living intensifies in cities across Canada, particularly in the Greater Toronto Area and across Ontario, it has become evident that adopting an inside-out approach to design is crucial to the sustainability of rental housing—not just in terms of building performance, but in creating homes that support the
day-to-day lives of the people who live in them. Bridging the disconnect starts with returning to basic design principles, beginning with envisioning the lived experience and allowing that to inform everything else.
What inside-out design really means
The idea of designing from the inside out isn’t new. It has always been part of architectural practice, rooted in the fundamental principle that buildings should strive to support and elevate the lives of the users and the community at large. This approach is re-emerging in response to today’s challenges, reminding us that good housing begins with the people who live in it. It’s about revisiting core design principles— light, flow, flexibility and comfort—and bringing them back to the forefront, especially in the context of high-density rental housing.
This methodology means asking questions like: How do families move through their space? Where do groceries go? How does daylight enter a unit across seasons? Where do kids do their homework? And, crucially, how do the edges between private, semi-private and public space support or inhibit social connection, safety and wellbeing?
At the same time, designing from the inside
“Many of Alta’s units will be located within the podium, ensuring easier access to amenities, parking and outdoor space, and reducing the need for elevator use.”
out also means thinking about who we’re designing for. That includes finding ways to deliver more affordable homes at scale, and making space for larger, family-sized units that better reflect the needs of multi-generational households and communities that have often been underserved.
Alta: A case study in ‘inside-out, humancentric design’
With decades of experience designing multi-residential communities across the Greater Toronto Area, BDP Quadrangle is well versed in advancing approaches that prioritize livability, sustainability and community connection. This depth of practice informs the ongoing work at Alta, a purpose-built rental development located on the West side of Oxford’s Scarborough Town Centre Shopping mall.
Set to deliver 1,285 rental units, with 20 per cent earmarked for affordable, Alta aptly showcases what can be achieved when an inside-out, human-centric design is applied, and what’s at stake for residents when development norms and architectur-
al form outweigh livability standards in the design process of a project.
Comprising three purpose-built rental towers rising 35, 41 and 45 storeys, all atop the development’s seven-storey shared podium, 42 per cent of units will be family-sized, including 10 per cent three-bedroom and 32 per cent two-bedroom suites. Many of Alta’s units will be located within the podium, ensuring easier access to amenities, parking and outdoor space, and reducing the need for elevator use.
When envisioning the suites, the design team at BDP Quadrangle first considered what an optimal suite layout could look like for families, young adults, or seniors, and what in-suite features would be most beneficial, before setting out to develop the rest of the site, integrating abundant greenspace and amenities trough the greater property and development.
In other words, designing for livability doesn’t end at the unit door. Alta’s layout integrates a network of indoor and outdoor pub-
lic spaces, at-grade townhomes and approximately 16,000 square feet of retail. The site is flanked by four public roads—none of which act as “backs” of the building, allowing active uses on all sides. A pedestrianized mews cuts through the block, functioning as both a mid-block connector and a courtyard-style gathering space for residents.
Alta also features a 22,000-square-foot public park and privately owned, publicly accessible spaces (POPS), encouraging layered interaction between public, semi-public and private zones. This gradient—from the city-facing park to internal courtyards, to rooftop and podium amenities— fosters multigenerational community living, while allowing space for solitude and flexibility for future development.
Community-minded, humanistic design also means designing for a climate-resilient future. As such, a geothermal heating and cooling system has been integrated, which is expected to cut energy use by 55 per cent and slash greenhouse gas emissions by 74 per cent compared to traditional systems. By opting for above-grade parking wrapped in active residential uses, the design helped lower embodied carbon while creating a more integrated, efficient use of space. Looking ahead, the goal is to see these design principles applied more widely to purpose-built rental housing in Canada. Taking an inside-out approach prioritizes liveability and leads l to the development of more thoughtful, resilient homes, benefiting both the apartment owners and the people who live in them.
Sami Kazemi is Principal at BDP Quadrangle and BDP sector lead for housing in North America. Visit www.bdp.com/ca for more info.
Kicking off construction on Alta
Oxford Properties Group celebrated the groundbreaking of Alta, Scarborough’s first major purpose-built rental development in over a generation, in late July of 2025. Situated on a 3.4-acre parcel of land, the development will consist of three residential towers made up of 1,285 purpose-built rental units.
“This generational project signifies a model we hope to replicate across Canada in the years to come—and with CMHC as a funding partner, we’re confident it will serve as a prime example of the power of public-private partnerships to work together to address the housing challenges in Canada’s largest cities,” said Daniel Fournier, executive chair at Oxford Properties.
The project is supported by a $650 million loan under the Canada Mortgage and Housing Corporation’s Apartment Construction Loan Program. This represents the largest individual loan granted and approved by CMHC through the ACLP in Toronto to date.
Managing Tenant Risks
Best practices for protecting against tenant defaults and property damage
by Drew Fenton, Hub International, Toronto
Rental units are top of mind across Ontario, with affordable housing a hot-button issue in the recent provincial election earlier this year.
Landlords are struggling on multiple fronts. The case load waiting at the Landlord Tenant Board (LTB) has exploded in recent years, peaking in mid-2024 with a backup that hit 53,000 cases. While many of these cases are eviction hearings, a significant number also deal with property damage. Security deposits often fall short of covering expensive repairs today, and landlords are hoping the LTB will supply some relief.
Yet with the LTB unable to deal with these cases in a timely manner, landlords have taken matters into their own hands, reporting “bad tenants” on online forums specifically to warn other landlords about tenants who don’t pay their rent or damage their rental units.
To best protect your asset, begin with the first two steps:
STEP 1 - Identify the Risks
Real estate owners and operators face two major types of risks from problem tenants: Tenant Defaults
A tenant default occurs when a renter fails to uphold his or her lease obligations—most commonly by not paying rent. In some cases, the tenant abruptly vacates the property before the lease ends, leaving unpaid rental
details or claiming to have overpaid—prompting landlords to issue a refund and prolonging the payment process. In other cases, scammers have sent eTransfer requests designed to look like incoming rent. If a landlord accepts, thinking it’s a deposit, the funds are actually withdrawn. While less common, these tactics can pose real challenges—especially for landlords managing properties solo or without protective systems in place.
Mitigating fraud
Mitigating the risk of rental scams starts when screening for potential tenants. While it might be tempting to combat the risk of scams through more stringent screening processes, holding tenants to the traditional 30 per cent rent-to-income cut-off isn’t realistic. In the current economic conditions, tenants will ultimately be putting more income towards rent. With rising vacancies, an overly strict approach not grounded in the realities of the current market can see you miss out on rental income altogether.
While rent-to-income models are an important factor to assess, there are a variety of metrics that can measure a tenant’s financial situation and whether they’d be equipped to withstand any additional financial burden.
Key metrics for evaluating a tenant:
Credit Score:
Monitor tenant credit scores by looking at the credit rating and the number of inquiries made. Excessive inquiries can indicate a tenant is wary of their own financial standing.
Eviction Records:
This publicly available data is crucial for determining if a tenant has been evicted before and why.
Payment History:
In the grand scheme, one missed cell phone payment is not much, but missed car loan payments or repeated missed credit card payments can be an indicator of a higher-risk tenant.
Employment History:
A snapshot of a tenant’s current and past employment to determine if they can consistently generate income to meet payment obligations.
Debt-to-Income Ratio:
A comparison of a tenant’s debt to their income determines
whether they are taking on too much debt in their personal finances, making rental payments more challenging to meet on a recurring basis.
What’s the solution?
One of the main reasons why rental scams are so prevalent and impactful is the lack of safeguards and standardized processes within the rental market. For investments like houses and cars, owners are required to have insurance. Rental income should also have “trust infrastructures” in place to reduce risk and increase transparency in the tenant-landlord relationship. Examples include:
• Standardized screening platforms that verify income, credit, and identity data
• Automated rent collection systems that confirm legitimate payments
• Rent guarantee programs that insure the landlord against missed payments
By embracing modern screening practices and adopting trust infrastructures, landlords can move from being reactive to proactive in their approach to filling vacancies. These safeguards aren’t about distrusting tenants; they’re about creating a fair and transparent process for both parties.
Viler Lika is the founder and CEO of SingleKey, Canada’s leading tenant screening and rent guarantee platform. Visit www.singlekey.com for more info.
Anewly released primer on Indigenous-led assessments comes in sync with a national push for major infrastructure projects and expectations that First Nations, Métis and Inuit peoples will be engaged and invested Indigenous-led assessments gaining traction
in decisions affecting their lands. The First Nations Major Projects Coalition (FNMPC) and Firelight, an advisory providing negotiation, engagement, research and training services in support of Indigenous rights and interests, have joined forces to discuss how a self-directed assessment process can serve Indigenous objectives.
“Indigenous Nations have the right to make decisions about what happens on their lands,” says Angel Ransom, senior vice president of environmental services at FNMPC. “This primer supports that right by helping communities lead their own assessments, on their own terms, and with a clear path to engage with proponents and governments in a way that upholds Indigenous values.”
The primer outlines considerations, principles and practical approaches for conducting an Indigenous-led assessment (ILA) that can be either separate from, or in collaboration with, statutorily required processes the federal or provincial/territorial governments undertake. An ILA could be used to inform and support rights holders’ decision-making about proposed projects or ILA findings may be considered in the statutory process.
The ILA process is intended to garner information about expected project impacts, identify pathways to avoid, reduce or compensate for those impacts, and help Indigenous stakeholders determine conditions for consent. It’s also aimed at conveying a truer Indigenous perspective—responding to a longstanding critique of how the statutory process frequently underdelivers on that front.
“Indigenous-led assessments aren’t new,” observes Melody Lepine, Firelight’s business lead for Indigenous-led assessments. “This primer captures the lessons learned so far, so Nations can shape and define their own assessments based on their laws, values and decision-making processes.”
BC announces 2026 rent cap
In late August, the Province of British Columbia announced that the maximum allowable rent increase for 2026 will be capped at 2.3 per cent, aligning with the rate of inflation. This marks a decrease from the 3 per cent cap set for 2025.
“B.C. is an extraordinary place, but with economic uncertainty and rising costs, people are struggling to find a place to live that fits in their budget,” said Christine Boyle, Minister of Housing and Municipal Affairs. “We’re continuing to cap rent increases, linking them to inflation, to reduce housing costs for seniors, families and individuals, protecting them from unfair hikes. At the same time, this rent increase allows landlords to invest in their properties to keep rental homes on the market.”
This is the second consecutive year the rent cap in B.C has been tied to the Consumer Price Index. In 2024, the Province limited rent increases to 3.5 per cent, significantly below the inflation rate of 5.6 per cent. Prior to 2018, landlords were permitted to raise rents by an additional 2 per cent above inflation.
Since 2017, B.C. has introduced a range of measures intended to support renters while maintaining landlords’ ability to manage problematic tenancies. These include protections against illegal renovictions and the introduction of a $400 annual renter’s tax credit for individuals and families with low to moderate incomes.
B.C. also became the first jurisdiction in Canada to offer provincewide rent bank services, providing interest-free loans to tenants facing urgent financial challenges. The Rental Protection Fund continues to preserve affordable rental housing across communities, and recent enhancements to the Rental Assistance Program and Shelter Aid for Elderly Renters have expanded support for low-income families and seniors.
Good News: The Insurance Market Has Softened
Rising insurance costs appear to be easing
by Andy Schwartze
After years of tough, disciplined pricing, the property/casualty insurance market has finally shifted in favour of the customer. If you haven’t noticed yet, we’re now in a “soft market”—a very different landscape, especially for newer insurance brokers. In this environment, clients are matched with more competitive insurers, and brokers are expected to deliver elevated service, often for less compensation. Seasoned professionals have seen this cycle before and know how to navigate it.
To understand what’s happening, it helps to grasp the basics of insurance pricing cycles. The chart on the right (simplified, but instructive) illustrates the relationship between claims and premiums—a dynamic that’s been central to property/casualty insurance since the beginning.
Over time, claims tend to rise. Labour and material costs increase steadily, driven by inflation, supply and demand. Occasionally, claims spike due to unusual events—often weather-related. Predicting claims year to year remains an imperfect science, though some industry experts argue it’s becoming more feasible. Their forecasts, however, should still be taken with a grain of salt.
Unlike manufacturing, insurance contracts have no fixed production costs—no materials, no assembly lines. But once issued, they represent significant exposure on the insurer’s balance sheet. In essence, the insurer “holds its breath” and hopes the policy year passes without disaster. Premiums, therefore, fluctuate over time—always retroactively—because there’s no reliable way to price for the future.
Each summer, Canadian Underwriter publishes its comprehensive review of the previous year’s industry performance. For those tracking pricing trends, this report is essential reading. This year’s edition, which covered the 2024 results from some 190 insurers, revealed that total industry income exceeded $13 billion. Investment income surged 30% year-over-year, helping offset catastrophe losses. Higher interest rates on invested premiums also played a role. Major players—Intact, Aviva, Lloyds—had a strong year. And in a Canadian economy that’s currently flatlining, they’re showing greater willingness to compete on price to maintain growth and market share. Their moves set the tone for the rest of the industry, which must follow suit to stay relevant.
For owners of residential rental properties, this is encouraging news. Rising insurance costs appear to be easing. Your broker may be able to secure better premiums—either with your current carrier or by switching underwriters. Of course, results aren’t guaranteed. Many factors influence pricing: building quality, age and upgrades, claims history, and more. Still, 2025 presents a timely opportunity to speak with your broker about the softened market—and explore options to improve coverage or reduce premiums
TENANT RETENTION TACTICS
Retaining reliable tenants is a cornerstone of long-term profitability
In Canada’s competitive rental market, where turnover costs can erode margins and vacancy rates fluctuate with regional trends, smart retention strategies help apartment owners build trust, reduce expenses, and foster a sense of belonging.
Here are five proven approaches to keep residents satisfied and staying longer:
1. Thoughtful Tenant Screening - Prioritize applicants with stable income, good credit, and positive rental history. Long-term renters reduce turnover costs.
2. Responsive Communication & Feedback Loops - Send short surveys or emails to gather tenant input. Act on suggestions to show you value their experience.
3. Lease Flexibility & IncentivesOffer options like month-to-month extensions or renewal bonuses. Consider perks like free parking or discounted utilities for long-term tenants.
4. Localized Amenities & Community Building - Understand regional preferences—urban tenants may value transit access, while suburban renters might prioritize green space. Host occasional community events to foster belonging.
5. Competitive Pricing & Transparency - Use platforms like Rentals.ca to benchmark rates. Avoid overpricing, which leads to vacancies. Be clear about rent increases and comply with provincial regulations like Ontario’s rent cap.
