Canadian Apartment Magazine

Apartment CANADIAN

VOLUME 15 / NUMBER 4 / SEPTEMBER/OCTOBER 2018

STUDENT HOUSING SET TO SOAR

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EDITOR’S NOTE>>

Apartment CANADIAN

STRENGTH IN NUMBERS

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As the fall season transitions into winter, all signs seem to indicate another strong year for the apartment sector. In the GTA specifically, one of the key factors influencing this healthy outcome has been the rise in household formation, aided by the flourishing tech sector.

According to a recent Marcus & Millichap report, Toronto has registered exceptional job growth in tech-related positions, adding more employers in this sector than many other major metros in the U.S. 73,100 jobs were created in the GTA this past year, marking a 2.2 per cent expansion to the workforce. In June, the unemployment rate rested at 6.3 per cent, recording a 50-basis-point year-over-year decline, and creating challenges for employers amid tightness in the labour market.

Thankfully, our world-class education system is hard at work shaping the minds of future labour recruits. As our cover story indicates, postsecondary student enrollment is up, with both international and domestic students choosing to further their studies at one of the 98 campuses across Canada. Capitalizing on this influx of students (and the shortage of rental housing available to them), Alignvest Student Housing REIT formed in July of this year and hasn’t looked back since. Read our feature story on page 18 and see why investors are finally taking note of a sector deemed lagging just a year ago.

Also, don’t miss contributor Chris Seepe’s “Landlord’s Guide to PIPEDA” on page 30, as well as the many newsworthy topics that fill this issue.

Sincerely,

Editor

Erin Ruddy

Publisher

Maya Merchant

Senior Designer

Annette Carlucci

Production Manager

Rachel Selbie

Contributing Writers

Graeme Huycke Andy Schwartze Chris Seepe

National Sales

Kelly Nicholls Melissa Valentini

Digital Media Director Steven Chester Circulation

Anthony Campbell For sales information call (416) 512-8186

Canadian Apartment Magazine is published six times a year by:

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President Kevin Brown Group Publisher Sean Foley Copyright 2018 Canada Post Canadian Publications Mail Sales Product Agreement No. 40063056 ISSN 1712-140X Circulation 416-516-8186 ext. 234 circulation@mediaedge.ca Subscription Rates: Canada: 1 year, $50*, 2 years, $90*, US $75 International $100, Single Copy Sales: Canada: $12* * Plus applicable taxes Requests for permission to reprint any portion of this magazine should be sent to Erin Ruddy.

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rent trends

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.

Q2 2018 CAP RATES (HIGH RISE APARTMENT BUILDINGS)

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.

3.50% 5.00% 4.50% 5.00% 4.00% 5.25% 4.75% 3.75% 3.50% 3.00% 2.00% 5.00% 4.50% 5.50% 4.75% 6.00% 5.00% 4.50% 4.50%

VICTORIA

Source: Colliers

VANCOUVER

CALGARY

EDMONTON

WINNIPEG

TORONTO

OTTAWA

MONTREAL

HALIFAX

STABILITY AND BALANCE

AT THE TOP!

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Apartment CANADIAN

VOLUME 15 / NUMBER 4 / SEPTEMBER/OCTOBER 2018

FEATURES 10 A partments are a Hot Commodity Lack of supply makes for tight conditions in the GTA 14 To Rent or Own? New report finds home ownership more affordable than rental 16 Developers Weigh in on Market Drivers Canadians more wary than global peers of trade policy and approvals process COLUMNS 8 Transactions Apartment Market Trends 12 CMHC Canada’s Co-investment Fund

By Graeme Huycke 24 Newsworthy Industry Hot Topics 28 Insurance Tenants Need Tenant Insurance

By Andy Schwartze 30 Legislation The Landord’s Guide to PIPEDA

By Chris Seepe

COVER STORY

DEPARTMENTS

18 Purpose-Built For Students Why the newly-formed ASH REIT is well positioned for a prosperous future

By Erin Ruddy

4

Editor’s Note

34 Smart Ideas

Apartment

ON THE COVER:

STUDENT HOUSING SET TO SOAR

Photo courtesy of ASH REIT.

CANADIAN

VOLUME 15 / NUMBER 4 / SEPTEMBER/OCTOBER 2018

181 Lester Street, Waterloo, Ontario

CANADA’S PBSA SECTOR ADVANCES

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Celebrating 30 Years.

With you.

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As we reflect back on 30 years in commercial real estate, we are proud of our accomplishments and excited about the future.

We are proud of our leadership position as the largest commercial lender in Canada. We are proud of the entrepreneurial spirit that has kept our structure flat and our leaders engaged. We are proud of our strong balance sheet and the confidence it brings to our clients.

But what makes us most proud are the relationships that we’ve formed, the businesses that we’ve helped to build and the impact that we have made – together with our clients – on commercial real estate in Canada.

And that is what excites us about the future. Finding the high value opportunities. Providing the highest quality mortgages in response.

Constantly innovating to move clients toward their business goals.

So thank you for your faith, trust and loyalty for the past 30 years.

We promise to continue to earn it and deserve it for the next 30 years and beyond.

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APARTMENT MARKET TRENDS Robust demand continues to support a “healthy” transaction volume across Canada The popularity of Canada’s multi-suite residential rental sector continues to persist in 2018, according to a recent report from Morguard.

I

n the opening six months, Toronto, Calgary and Vancouver recorded a combined $935.2 million in rental property transactions, keeping on trend with the past several years in which total sales volume rose on average 17.5 per cent per year.

Average sale price has also increased significantly year-overyear. During the first six months of 2018, an average sale price of $13 million was posted compared with $8.5 million during the same period a year ago.

“The sector consistently quenched the investment thirst of investors during both time periods,” the report said. “The lure for most was the prospect of persistent growth, modest capital appreciation and the sector’s record of stable and healthy longterm performance. Positive investor sentiment is expected to persist, for at least the near-term.”

Spotlight on Vancouver Vancouver’s West Side continues to be the premiere multifamily district as indicated by its submarket’s unrivalled per-unit values and ever-compressing capitalization rates.

According to Colliers, the first half of 2018 witnessed the sale of five concrete high rises in the West End submarket, representing approximately $260 million in transactional volume and totaling

8 | Canadian Apartment | Part of the REMI Network |

nearly 500 rental suites. In all of 2017, the same number of high rise apartment buildings were sold on Vancouver’s West Side, however the total dollar volume of these transactions were roughly half.

With approximately 10,416 rental units, Vancouver’s West Side and West End are home to nearly 37 per cent of the purpose-built rental developments that have recently completed, are currently being built, or are in the rezoning or development permit stage in Metro Vancouver.

Meanwhile, over in Atlantic Canada…

Atlantic Canada’s multifamily construction boom has been an ongoing reality, particularly in Halifax, where according to brokerage firm Turner, Drake and Partners, the invasion of tower cranes has been a regular media focus since the collapse in interest rates in 2009.

But now that monetary policy is tightening, how much longer is it likely to continue? According to the firm, “Demand has not yet abated for these units, and anecdotally many of the new condo and condo-quality rental apartment occupants are empty nesters. It seems everyone is looking to realize equity and recover from decades of lawn maintenance.”

TRANSACTIONS >>

So just how deep is this potential pool of Boomer demand? This past August, Royal LePage commissioned a Boomer Trends Survey examining consumer intentions in the Atlantic region. According to results, Boomers out east are more likely to remain in their current community, and more likely to renovate rather than downsize to a condo in retirement when compared to aging Canadians in other regions.

“Boomers in this region are very conservative and price sensitive. They need to be motivated to reinvest in another property,” said Donna Gardiner Thompson, broker, owner and sales consultant, Royal LePage Gardiner Realty. “Many are looking to simplify their expenses and realize the equity from their primary residence. There is also a trend toward high-end rentals, as that option offers increased financial predictability.”

New and notable transactions FOR FALL 2018 Address

1.

2.

City

#of Units

Sale Price (Millions)

Sale Price/Unit

Purchaser

109 Indian Road

Toronto

38

$11.1 M

$292,105

Akelius

736 Woodbine Ave, 1953-1955 Gerrard St E

Toronto

64

$32.4 M

$506,250

Realstar Group

3.

10 Garfella Drive

Etobicoke

148

$32.6 M

$221,674

Siteline Group

4.

9 Knightsbridge Court

North York

72

$19.7 M

$273,650

Siteline Group

5.

1433 Burnaby Street

Vancouver

30

$15.1 M

$501,667

Starlight

6.

50 Burnhill Road

Scarborough

163

$32.6 M

$200,000

Starlight

| www.REMInetwork.com | September/October 2018 | 9

APARTMENTS ARE A HOT COMMODITY Lack of supply makes for tight conditions in the GTA

by Lorenzo DiGianfelice The Greater Toronto Area apartment market keeps getting tighter and tighter. Cap rates continue to compress despite the fact that interest rates have moved up over the past 12 months. This is a direct result of the huge imbalance between supply and demand in this space—not only in the GTA, but in most markets in Southern Ontario.

In the first half of 2018, there were 27 GTA apartment transactions totaling over $448 million. The volume of deals is up from 2017, which saw 19 deals total, but down from the previous two years, which saw 34 and 98 deals respectively.

Historically in any given year there were an average of 120 completed GTA deals. At the current pace it appears that less than 70 deals will be completed in 2018. Demand for buildings, however, has gone on unabated, hence the imbalance.

Price per suite The number of deals and sales volume completed in 2018 thus far indicates a price per suite on average of $234,000. This is over 23 per cent higher than a year ago, and much higher than the $168,000 price per suite recorded in 2016. With over 1,917 suites sold, this indicates an average building size per sale of roughly 71 suites. The smallest building sold was nine units for $3 million, while the largest deal was for 422 units at $108 million.

10 | Canadian Apartment | Part of the REMI Network |

Some of the year’s major transactions: Homestead purchased a large complex of $108 M; Starlight purchased three buildings totaling about $44 M; Medallion purchased one building with a price of $37 M; Akelius purchased three buildings with a total value of around $32 M; And Hollyburn picked up one building for a price of $19.5 M.

Cap rates Cap rates, too, have continued to compress in this tight market despite the rise in lending rates and the pull back on banks advancing less and less funds on apartment buildings.

In the first half of 2018, average cap rates stood at 3.02 per cent, which is the lowest they have ever been (especially in the last 25 years). Cap rates have compressed by 13.5 per cent over the last year and are far below the 4.2 per cent level recorded in 2016. The reasons for this largely stem from the fact that

FEATURE >> apartments make great investments, with more buyers chasing them than available products on the market.

Over the past 12 months bond rates and interest rates have moved up for the first time in over five years. Yes, they have only come up 1 per cent in that time and rates are still at historic lows, but generally cap rates will follow in tandem albeit with a bit of lag. We have not seen this yet—why? Because market fundamentals in this space are still highly positive and with the equity markets peaking and other real estate classes softening, apartments are the “golden boy”.

Non-traditional players Throughout 2018 to date, we have also seen more non-traditional players entering the apartment space. This includes developers looking to purchase rental apartments on large acreages with a “hold and redevelop later” concept, as well as buyers in the retail and commercial markets that have started to purchase apartments. They see the strength in this market, with its 1 per cent vacancy rate and rents growing on average by 5 per cent per year, and the risk levels being very low.

No one has a crystal ball but we have been on a 30 year cycle of price escalations. Rising interest rates would precipitate a rise in cap rates at some point. But as of now that has not been the case.

Record-setting U.S. rent growth continues U.S. multifamily rents in the month of August maintained the year’s torrid pace, according to the Yardi Matrix Multifamily National Report for August 2018. The $1,412 nationwide average for the month represented a 3 per cent year-over-year increase and was the seventh consecutive all-time high, according to a survey of 127 markets.

U.S. multifamily rents have grown steadily throughout 2018, buoyed by the strong economy and continued healthy demand. The 25-basis-point increase in the occupancy rate of stabilized properties since January is “particularly impressive, considering that 2018 is on pace for a third straight year of some 300,000 new units,” the report noted, adding, “The multifamily market … shows no signs of being at the end of its cycle.”

August’s year-over-year rent growth leaders—Orlando, Fla.; Las Vegas; California’s Inland Empire; Phoenix; Tampa, Fla.—have populated most of 2018’s monthly rankings. Metros in the South and West occupied the nine top spots in August.

Report highlights: Rents increased 3.1% nationwide in August, as the multifamily industry maintains consistent growth. Fundamentals appear to be in balance, as moderate rent appreciation, steady occupancy rates and new deliveries are supported by strong demand for apartments.

Orlando (6.7%) once again led the top 30 metros on a year-over-year basis, while other popular retirement metros Las Vegas (5.7%), Phoenix (5.3%), and Tampa (4.8%), were also among the top performers. The Inland Empire (5.4%) ranked third overall, as Los Angeles residents continue to migrate eastward in search of more affordable housing.

Renter By Necessity (3.5%) continues to outperform Lifestyle (2.4%) as new supply hinders rent growth of luxury units.

For additional insight into 127 major U.S. real estate markets, the full report can be found online.

Lorenzo Digianfelice, AACI is the Broker of Record of Commercial Focus Realty Inc. and member of the Apartment Group. Together they have sold over $5BB worth of apartments and completed over 1,000 deals in their history. He can be reached at ldigianfelice@cfrealty.ca

Laneway housing in Toronto Back in June, Toronto City Council voted to allow homeowners to create a laneway suite on their properties—a small apartment or suite at the back of a residential lot that is separate from the main residential unit. Toronto has approximately 2,400 laneways stretching about 300 kilometres through downtown corridors and city streets. With affordable options in downtown neighbourhoods at an all-time deficit, the small secondary suites would draw utilities via the main home and serve as rental units (or so-called “granny suites”) for potentially thousands of future tenants.

| www.REMInetwork.com | September/October 2018 | 11

CMHC REPORT >>

Canada’s National Housing Co-Investment Fund Working with partners to build and repair much-needed affordable rental units

by Graeme Huycke The National Housing Co-Investment Fund (NHCF), under Canada’s National Housing Strategy (NHS) was launched earlier this year as a means to help fuel the economy and give more Canadians a safe place to call home.

T

hrough the NHCF, the Government of Canada will work with partners to create up to 60,000 new affordable units and repair up to 240,000 affordable and community units over the next ten years.

Investments will also support the creation, or repair, of at least 4,000 shelter spaces for survivors of family violence, the creation of at least 7,000 new affordable units for seniors and 2,400 new affordable units for people with developmental disabilities.

The NHCF will be delivered in tandem with the recently created $3.75 billion Rental Construction Financing initiative and the $208.3 million Affordable Housing Innovation Fund. Combined, these three initiatives represent an investment of over $17.15 billion.

“Canada’s first-ever National Housing Strategy is built, in part, on the idea that 12 | Canadian Apartment | Part of the REMI Network |

when the federal government works collaboratively with its partners, we can give more Canadians a place to call home,” said the Honourable Jean-Yves Duclos Minister of Families, Children and Social Development and Minister Responsible for Canada Mortgage and Housing Corporation. “The National Housing Co-Investment Fund is this idea in action. By working with our partners at all levels, more middle class Canadians— and those working hard to join it—will find safe, accessible, affordable homes, in vibrant and inclusive communities where families thrive, children learn and grow, and their parents have the stability and opportunities they need to succeed.”

Investments under the NHCF will support projects that attract additional funding from other levels of government, not-for-profit and co-operative housing providers, and the private sector. It

aims to improve accessibility for people with disabilities, increase affordability and contribute to energy efficiency by prioritizing projects that exceed mandatory requirements.

Spurring new development through projects that support partnerships The National Housing Co-Investment Fund provides low-cost loans and/ or financial contributions to support and develop mixed-income, mixedtenure, mixed-use affordable housing.

This housing must be energy efficient, accessible and socially inclusive. The Fund prioritizes projects that support partnerships between governments, non-profits, private sector, and others to make federal investment go further.

It covers a broad range of housing needs, from shelters to affordable homeownership.

CMHC REPORT >>

CMHC’s Innovation Fund spurs groundbreaking building solutions In response to pressures on the supply of affordable rental housing and a market rental vacancy rate of 0.8%, Vancouver introduced its first temporary modular housing development in 2017.

Through the Affordable Rental Innovation Fund’s first funded project, the Vancouver Affordable Housing Agency (VAHA) created the 220 Terminal Avenue development, setting up moveable modular units on undeveloped, city-owned land. When the land is needed for a permanent development, the units will simply be moved to another vacant site.

Together, these modular units form a three-storey building made up of 40 single occupancy suites with self-contained bathrooms and kitchens, individual climate control, and private living space. The building also features indoor and outdoor amenity space, central laundry and a number of wheelchair accessible suites on the first floor.

This project offers a glimpse of what Canada’s affordable rental housing future could look like with continued innovation.

At a glance, the NHCF will: create 60,000 new units repair 240,000 units create or repair at least 4,000 shelter spaces for victims of family violence create at least 7,000 new affordable units for seniors create at least 2,400 new affordable units for people with developmental disabilities Projects funded through the initiative will also: support Canada’s climate change goals improve accessibility of housing for people with disabilities by promoting accessibility, universal design and visitability Housing Repair and Renewal: While the Housing Construction Stream is for new construction projects, the Housing Repair and Renewal Stream is for the preservation and renewal of the existing community and affordable housing supply. Rental housing providers across Canada can now apply to obtain financial assistance for repairs and retrofits. Over the next 10 years, $3.46 billion in loans and $2.26 billion in capital contributions are to be made available.

The loans will be interest-only for a 10 year term, renewable for a further 10 years with an interest rate reset. The amortization can be for up to 50 years. For private sector applicants, capital contributions are available for exceeding minimum requirements for affordability, energy efficiency or accessibility.

For more information, visit www.cmhc-schl. gc.ca/en/nhs/housing-repair-and-renewalstream.

To take advantage of CMHC’s Mortgage Loan Insurance, contact Graeme Huycke, Senior Specialist, Client Relations, Multi-Unit Underwriting, at 416-250-2705 or via e-mail at ghuycke@cmhc.ca.

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 of 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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| www.REMInetwork.com | September/October 2018 | 13

FEATURE >>

To Rent or Own? New report finds home ownership more affordable than rental According to a new consumer report from Mortgage Professionals Canada, the soaring cost of rent is making it more cost effective to own a home than to rent one.

T

he report, Owning versus Renting a Home in Canada, compares the expected costs of housing for Canadians that rent versus those that own a home. In the 266 scenarios discussed in the report, which were taken from a broad crosssection of regions throughout the country, the current monthly cost of home ownership is determined to be lower than the cost of renting equivalent housing in the majority of cases, and becomes even more cost-effective over time.

“The report demonstrates that the money Canadians are spending on monthly rent, if used instead to finance a home, would be a very beneficial investment over time,” said Will Dunning, Mortgage Professionals Canada’s chief economist and author of the report, in a press release. “The costs of owning and renting continue to rise across Canada.

However, rents continue to rise over time whereas the largest cost of home ownership – the mortgage payment – typically remains a fixed amount over a set period of time, usually for the first five years. The result is that the cost of renting will increase more rapidly than the cost of home ownership.”

Although more Canadians are becoming used to the idea that they may never be able

14 | Canadian Apartment | Part of the REMI Network |

to own a home and become lifelong renters, the report suggests that those who do have the opportunity to invest in home ownership will be significantly better off long-term. The study compares the costs of renting five and 10 years in the future.

For example, the report finds that if mortgage rates remain at 3.25 per cent, in 10 years the cost of ownership (on the net basis that takes out principal repayment) will be lower than the cost of renting in almost 98 per cent of cases. On average, the net cost of owning will be $1,295 less than the monthly cost of renting an equivalent residence. If the interest rate increases to 4.25 per cent after 10 years, the cost of ownership is less than the cost of renting in 92 per cent of case studies, with an average saving of $1,014 per month.

Even with interest rates rising to 5.25 per cent in 10 years, home ownership will be less expensive than renting in 82 per cent of cases, saving home owners about $726 per month compared to renters.

“Using conservative expectations for rental increases over time, there is a clear financial benefit of owning versus renting,” said Paul Taylor, president and CEO of Mortgage Professionals Canada. “While recent changes to mortgage qualifying have

made the barrier to entry higher, those who can qualify will be much better off in the long term. Given the economic advantages of home ownership, Mortgage Professionals Canada would recommend the government consider ways to enable more middle-class Canadians to achieve home ownership. Our collective long-term economic success may be compromised without that support.”

The report notes that in all 266 scenarios, once a mortgage has been fully repaid, the cost of owning a home will be significantly lower than the cost of renting. In 25 years, on average, the cost of owning is projected at $1,549 per month, compared to $4,655 for renting an equivalent residence.

In addition, after reviewing data from Statistics Canada on wealth in the country, the report finds that homeowners are in better shape financially compared to tenants who are similar in age and level of income.

“Everyone wants to save for their future, but rising costs, including rent, are making that more difficult,” added Dunning. “The lower life-time costs of home ownership mean that owners have more ability to save for retirement than do renters. The financial benefits of home ownership go beyond equity accumulation.”

Yes, we can!

Since MetCap Living established itself as a leader in property management, we have routinely been asked one, simple question; “Can you help us run our property more effectively?” And, for well over thirty years, the answer has remained — Yes, we can! Our managers are seasoned professionals, experienced in every detail of the day to day operations and maintenance of multi-unit rental properties. From marketing, leasing, finance and accounting, to actual physical, on-site management, we oversee everything.

Guaranteed vacancy reduction, revenue growth and net profitability — when you’re ready to discuss a better option; we’ll be there. You can count on it.

Kazi Shahnewaz Director, Business Development Office: 416.340.1600 x504 C. 647.887.5676 k.m.shahnewaz@metcap.com

www.metcap.com | www.REMInetwork.com | September/October 2018 | 15

MARKETING FEATURE >> >>

Developers Weigh in on Market Drivers Canadians more wary than global peers of trade policy and the approvals process

C

anadian respondents to a global survey of real estate developers with at least USD $250 million (CAD $322 million) worth of projects in progress are generally in sync with their international peers in gauging positive and negative market influences. Recently released results from Altus Group indicate that, collectively, the 400+ C-suite and senior executives see more opportunity than threat in technological advancements, social change and a less economically stratified society.

Earlier this year, the international research firm, IDC, polled these leading real estate players on 11 forces that could potentially affect development demand, developers’ proficiency in supplying product and/ or their return on investment. A largely 16 | Canadian Apartment | Part of the REMI Network |

optimistic outlook emerges, albeit with the qualification that respondents were asked to weigh in on market drivers like housing affordability and investment in public infrastructure that, in some cases, may be more theoretical than real.

In addition to its global makeup, the survey sample represents a diverse portfolio mix that offers a revealing snapshot of where global investment is going. Notably, mixed-use development is the most active sector, capturing 20 per cent of development underway.

Presuming that residential is a significant component of those mixed uses, that further underscores housing’s prominence.

Stand-alone multifamily rental and ownership projects account for another 28 per cent of reported activity. The

remaining breakdown is: 16 per cent office/ commercial; 15 per cent industrial; 12 per cent retail; 7 per cent hotel; and 2 per cent government or institutional projects.

Positive, negative and neutral factors A significant majority of the survey participants endorse housing affordability, immigration, environmental regulations, public infrastructure investment and the expectations of the millennial demographic as positive impacts. Only a minority view any of the 11 market drivers as an outright negative impact, while upwards of a quarter of respondents decree that six of the 11 forces wield no sway over the development pipeline.

More evidence of housing’s relative importance might be drawn from the fairly

FEATURE >>

“In addition to continuous cost pressures on development generally, many cities are dealing with unaffordable housing.”

low level of threat attached to changing commercial occupancy patterns, such as the rise of co-working space. The greatest share of respondents — 46 per cent — categorize these trends as positive; 35 per cent call them negative; and 19 per cent say they have no impact.

Respondents are most blasé about transportation technology, such as electric vehicles, autonomous public transportation and the spectre self-driving vehicles. Fully half of them attribute little clout, good or bad, to these emerging trends.

Perhaps more surprisingly, 31 per cent of respondents are unfazed by taxes and 28 per cent identify the development approval process as a neutral factor. However, this seems to complement other findings of Altus Group’s trends report.

“Government regulation is a barrier to market entry, but if already developing in a market, it has a lesser impact on a firm’s decision to leave,” the report concludes.

“Fifty-nine per cent say that government regulation has a high impact on their desire to enter a market, but only 26 per cent say that government regulation has a high impact on their desire to leave or avoid a market.”

Reflective of a dataset with interests in North America and Europe — 24 per cent of

respondents are active in the United States; 17 per cent in Canada; 12 per cent in the United Kingdom; 11 per cent in Germany; and 10 per cent in France — cross-border trade policy triggers more concern than the 10 other market drivers addressed in the survey.

More than a third of respondents suggest it has a negative impact on projects and decision-making.

“Rising trade tensions throughout a number of regions globally are adding to cost pressures in numerous markets, both real, via disputes and tariffs (e.g. steel, rebar and other commodities affected by recent tariff actions), and speculative, based on continued uncertainty about future implications of changes to economic, political and trade agreements,” the report observes.

Canadian sentiment diverges from the pack A further breakdown of national perspectives reveals that Canadian respondents are the most pessimistic, with 40 per cent deeming cross-border trade policy to be a negative force and only 20 per cent calling it positive. In contrast, 40 per cent of American respondents see cross-border trade policy as positive and 31 per cent see it as negative.

Canadians also voice the strongest reservations about the development approval process — with both the highest percentage of respondents, at 38 per cent, categorizing it as negative and the lowest percentage, 30 per cent, calling it positive. Meanwhile, the majority of respondents from the U.S., the U.K. and Europe perceive the development approval process as positive. Michael Brooks,

chief executive officer of REALPAC, is quoted in the report, offering further context for Canadian misgivings.

“In addition to continuous cost pressures on development generally, many cities are dealing with unaffordable housing. This disparity can often start at the development stage with unexpected taxes and charges that often get passed onto the end-occupier through increased cost or rent,” Brooks notes. “There is an increased imperative for policy makers to be upfront and clear about all fees and charges developers will be accountable for when embarking on a new project.

This will help ensure they are developing appropriate project budgets and will move the entire process along with less delay.”

Although a majority of Canadian respondents identify environmental regulation as positive, they are somewhat less enthusiastic than their peers from other global regions — registering a 65 per cent approval rating versus 80 per cent of respondents from the U.S. and 83 per cent of participating Europeans.

Meanwhile, Canadians are most upbeat about immigration, even in a broadly supportive field, with 85 per cent of respondents calling it positive and only 5 per cent judging it negative. The largest proportion of detractors, deeming immigration negative, are Americans (13 per cent) and Australians (12 per cent). The smallest share of respondents viewing immigration positively are Europeans (73 per cent) and Asians (74 per cent).

| www.REMInetwork.com | September/October 2018 | 17

COVER STORY >>

PURPOSE-BUILT FO Why the newly-launched ASH REIT is well positioned for a prosperous future

by Erin Ruddy

COVER STORY >>

OR STUDENTS The purpose-built student housing scene in Canada has long been perceived as “lagging� when compared to other western markets. Look no further than a Colliers investment survey from 2016 which found that not a single Canadian investor among the 600 participants had any plans to put money in these much-needed residences, choosing to stick with shopping centres, office space, industrial facilities and other commercial real estate ventures known for their steady returns.

COVER STORY >>

20 | Canadian Apartment | Part of the REMI Network |

Not the case in the U.S. or the U.K—and surprising, given that globally the purposebuilt student accommodation sector (PBSA) represents a $200 billion segment and the Canadian market is so ripe for development.

Well, today the student housing plot seems to be thickening with the highlyfragmented sector coming into its own. It began in July, when Alignvest Management Corporation announced it had opened a new dedicated student housing REIT, called “ASH REIT”, with over $65 million in capital commitments. Describing the initiative as “a proven global investment strategy with a substantial first-mover advantage to consolidate and professionalize student housing in Canada,” the new REIT is already poised to become the largest student housing owner and operator in Canada.

“Currently, only about 3 per cent of Canadian university students live in off-campus purpose-built student accommodation compared to 10 per cent in the U.S. and 12 per cent in the U.K.,” said Sanjil Shah, ASH REIT Managing Partner.

“We are 10 to 15 years behind those markets, even though our student population is growing at a much higher rate fueled by both domestic enrollment and our increasing share of international students.”

Before launching the REIT, Shah and his team spent three years researching the student housing industry and found that the limited funding to Canadian universities was affecting their ability to provide enough beds to meet the increase in demand.

As a result, the group recognized that a unique market opportunity was upon them to acquire, build and operate high-quality, institutional-grade PBSA assets across Canada.

Why investing in student housing makes sense: 1. Students have financial backing from their parents, meaning they aren’t a credit risk.

2. Students are more willing to share space with each other (i.e. bathrooms and amenities) than other renters.

3. During periods of recession, undergraduate students tend to stay in school longer, while many graduates return to upgrade their skills, thus increasing demand for student housing.

4. Canadian universities are respected institutions all over the world. Domestic and foreign enrollment is growing at a rate much higher than other countries, meaning the tenant pool is constantly being replenished.

5. Given the high cost of tuition and rent, students are respectful of their surroundings and neighbours, unlike their stereotypes might suggest.

“We believe that there is a need for a professional owner/operator of purposebuilt student accommodation in Canada,” he said.

“Canadian universities are well-respected around the world. Our objective is to ensure that the total student experience, including their residential component, is very positive. We believe that we can provide this positive experience with a strong understanding of the industry and at the same time generate attractive returns for our investors.”

Acquiring assets: the Lester Street property In August, less than a month after announcing the REIT’s official launch, ASH REIT completed its first purchase of a purpose-built student accommodation located at 181 Lester Street in Waterloo, Ontario.

“This building represents a cornerstone of the Alignvest Student Housing acquisition and operating strategy,” said Jonathan Turnbull, Managing Partner. “We believe this asset represents the high-end offering discerning students

expect, and a performing investment our investors expect.”

The Lester Street property is four years old and strategically located within 500 metres of both the University of Waterloo and Wilfrid Laurier University.

Combined, the two universities have over 54,000 students and have experienced a 25 per cent growth in student population since 2010 (including a 161 per cent increase in international students).

The 18-storey building has 455 beds in fully-furnished suites, and offers high-end

student-oriented amenities, such as: bed/bath parity; in-suite laundry; unlimited internet access; study halls; meeting rooms; a games room; and a fitness facility.

In the coming years, ASH REIT intends to offer institutional and high-net worth investors the opportunity to invest in a diversified portfolio of PBSA and participate in the profits derived from them.

It expects to generate attractive returns to Unitholders through both current income and long-term value appreciation.

“The goal at ASH REIT is to deliver an attractive quarterly distribution to our investors and

COVER STORY >> generate long-term capital appreciation with targeted returns of 15 per cent plus,” Shah said.

Targeting a student tenantbase: myths and stereotypes debunked Anyone who’s ever stepped foot in a student housing residence knows that these buildings operate differently than generic rental properties. For starters, students require unique amenities and live a more socially connected lifestyle than your average renter.

“Student housing is not a passive real estate investment,” remarked Shah. “It is an operationally intensive business.

Students are not long-term tenants. We expect a 40 per cent turnover on an annual basis.

Also, students expect studentoriented amenities and services, such as study lounges and high quality internet. To deliver these, we incur substantially more operating expenses versus standard residential apartment buildings.”

That said, Shah is quick to point out that the negative reputation students often get slapped with isn’t necessarily true, and nor is the perception that managing student properties is more fraught with challenges than other rental buildings.

“There is a general misconception regarding students,” Shah said. “The common thought is that students are bad tenants; that they have poor (or no) credit and that they will likely trash the property. In reality, with guarantees from parents who can afford the cost of university tuition, the credit quality of our tenants is actually quite strong. In addition, students are respectful. As tenants who are at university to obtain an education, they are not abusive of the premises and we incur very little property damage.”

Contending with massive shortages: the real issue Aside from the occasional bender and pizza sauce slopped on the floor, really, it’s not the tenants themselves that should be of concern but the massive shortfall of beds—especially in cities like Toronto and Vancouver where affordable rental housing is already scarce, and thousands of students are joining the masses on wait-lists with seemingly no end.

In September, the University of British Columbia revealed plans for a new 1,000-bed residence which will break ground in the spring of 2019 for a targeted 2021 move-in, but still more is needed. With a

Rendering of new U.B.C. residence

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University of Toronto addresses accommodation shortfall With students back in the lecture halls and concerns about a massive shortfall of 2,300 beds by 2020, the University of Toronto has shared plans for a 511-bed residence at 698 Spadina Ave. Built in partnership with Daniels Corp., the 23-storey building will be designed by Toronto’s Diamond Schmitt Architects and is currently scheduled to open in 2021.

The residence, which will incorporate an existing three-storey heritage building into the facade, will be the first of its kind on the school’s campus in more than 10 years. With plans first floated in 2013, the building was just approved in August by the city and local groups following the appointment of a mediator.

Concessions from the university included a smaller footprint and fewer storeys, as well as opening up 17,000 square feet of adjacent green space to the public.

Despite a rise in the number of unaffiliated residence buildings opening up in Toronto, including the Parkside Student Residence near Ryerson, the University of Toronto said it strives to offer affiliated residence options, particularly for first-year students who may not be familiar with the city. The advantages are that students are guaranteed to be close to the university and that programs will be offered on-site to help new students acclimatize.

The construction of the new University of Toronto residence is pending a final hearing at the Ontario Municipal Board and will be announced later in October.

city-wide vacancy rate hovering just below 1 per cent, and student enrollment steadily on the rise, the City of Vancouver has taken meaningful steps to help bolster purpose-built rental development—including streamlining the slower-thanmolasses permitting process.

In the meantime, Shah and his team at ASH REIT intend to satisfy at least some of that growing backlog…while turning a hefty profit in the process.

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NEWSWORTHY >>

Industry Hot Topics WHO classifies hoarding as a medical condition

M

Ontario utilities to stop collecting carbon tax

N

atural gas bills are expected to reflect the dismantling of Ontario’s cap and trade system beginning in October. For now, major utilities such as Enbridge and Union Gas still have communiques on their websites explaining that they are awaiting required direction from the Ontario Energy Board before they can stop collecting carbon tax, but Premier Doug Ford confirms that protocol is in progress.

“By removing the carbon tax from natural gas bills, we’re saving families about $80 a year and small businesses about $285 a year,” he announced in late-August.

The levy, which had been set at approximately 3.3 cents per cubic metre of consumption, represented about 12 per cent of the natural gas costs under current prices.

However, budgeters aren’t necessarily counting on a straightforward 12 per cent saving on heating costs for the coming year.

“The natural gas rate is only one factor. Colder than normal temperatures mean higher consumption, which might translate to the actual dollar-spend staying the same,” says Rob Detta Colli, manager of energy and sustainability with Crossbridge Condominium Services.

“We will be changing our budget templates to reflect the reduction now that we know the effective date. What will likely happen is savings from natural gas will offset other budget lines that might be increasing.”

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ental health advocates and clinicians are calling for more targeted research and hoping for less public stigma now that the World Health Organization has recognized hoarding as a medical condition, distinct from other disorders with which it is often associated. The new definition is found in the recently released 11th edition of International Classification of Diseases (ICD), the international standard for diagnosing and reporting diseases, disorders, injuries and related health conditions.

This updates the circa 1990 ICD 10th edition and now aligns with the American Psychiatric Association’s Diagnostic and Statistical Manual of Mental Disorders, which categorized hoarding separately from obsessive compulsive disorder in 2013.

A report in the international medical research and news digest, The Lancet, reiterates that expanding stashes of collectables also present a health and safety hazard for residents and neighbours of hoarders’ properties, while the treatment is far more complex than simply removing accumulated materials and/or menageries.

Although ICD-11 clarifies that excessive acquisition and extreme aversion to discarding possessions can be a unique condition, many sufferers have other diagnoses or emotional stresses such as bereavement. The Lancet report notes that individuals with autism spectrum disorder may be prone to hoard certain kinds of items, while in comparison to the general population, hoarders “are more likely to depressed, overweight or to have chronic medical conditions.”

Psychiatric researchers are focused on identifying triggers and positive interventions. The new ICD-11 classification is considered a boost for the relatively nascent field of study.

“There are frequently early signs of hoarding disorders in adolescence, although presentations do not tend to occur until much later in life,” the Lancet report states.

“There is emerging evidence that cognitive behavioural therapy is an effective treatment; whether this is best delivered individually or in groups is yet to be confirmed.”

Landlords could be among the beneficiaries of better awareness and kinder perceptions of hoarding. They are currently among the most common discoverers and reporters of tenants with the condition since those afflicted may neither see their behaviour as problematic nor wish to expose it by seeking help.

NEWSWORTHY >>

Canadian REITs mark 25 years on the TSX

S

eptember 5th marked 25 years since the first real estate investment trusts (REITs) were listed on the Toronto Stock Exchange (TSX). In honour of the milestone, Michael Brooks, chief executive officer of the industry association REALPAC, shared buzzer pressing duties with Loui Anastasopoulos, the TMX Group’s president, capital formation, to launch the day’s trading.

“Out of the depths of the early 1990s recession, Canadian REITs have emerged as a preferred way for many investors to participate in commercial real estate,” Brooks said. “Canadian REITs have a stellar track record of increasing distributions and growing asset values over this period.”

From the circa 1993 listings of Canadian Real Estate Investment Trust (CREIT) and RealFund, which has since merged with RioCan, investors can now look to 44 REITs with a collective market capitalization of $62 billion. That translates to 60 per cent of the market capitalization of all real estate equities traded on the TSX and TSX Venture Exchange.

Together, REITs and other real estate equities have achieved nearly 350 per cent growth in market capitalization during the past 10 years. More than 80 real estate companies have completed an initial public offering over the past 25 years, with BSR REIT and Minto Apartment REIT being the most recent.

“Today, we salute that proud history together with our partners in the industry and affirm our commitment to supporting the continued growth of the real estate sector on our equity markets into the future,” Anastasopoulos said.

“The growth of the Canadian REIT vehicle has been nothing short of remarkable,” Brooks concurred.

“The leaders of these REITs deserve great credit for continuously expanding their investment base and evolving to meet changing investor needs.”

FRPO appoints new president and CEO

T

he Federation of Rental Housing Providers (FRPO) announced it has appointed Tony Irwin as its new President and CEO. Daryl Chong of the Greater Toronto Apartment Association has been the interim president since Jim Murphy left the position in February 2018.

Irwin was formerly President and CEO at Canadian Consumer Finance Association (CCFA), a national trade association representing businesses that provide a range of financial products to Canadians (including payday loans, installment loans, lines of credit, cheque cashing, wire transfer services, bill payment services and currency exchange). The association advocates for regulations that balance the need for strong consumer protection with a viable industry.

Prior to that, Irwin was Vice President, North American Government Affairs, with Dollar Financial Group, Inc. based in Toronto, where he directed government affairs initiatives across Canada and the United States to influence the public policy environment and enhance the company’s profile and position as an industry leader. Irwin served as Chairman of the Canadian Payday Loan Association, and was active with the Community Financial Services Association of America.

From March 2009 to July 2012, Irwin was Manager of External Affairs & Consumer Relations with Allstate Insurance Company of Canada, where he implemented a national government relations strategy and served as official company spokesperson.

Prior to joining Allstate, Tony served as Executive Director of the Justin Eves Foundation, a non-profit organization granting scholarships and bursaries to learning-disabled and disadvantaged young people to assist them to achieve a post-secondary education.

Irwin has also held key political roles, and was Senior Advisor to an Ontario Premier and Executive Assistant to the Leader of the Official Opposition. He attended Huron University College at the University of Western Ontario where he obtained an Honours Bachelor of Arts in Political Science.

FRPO of ficially welcomed Ir win into his new role on September 24th.

| www.REMInetwork.com | September/October 2018 | 25

NEWSWORTHY >>

Revisiting Inclusionary Zoning in Ontario

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2017-07-26

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EALPAC is calling on the new administration at Queen’s Park to revisit Ontario’s inclusionary zoning regulation.

The national industry association would like to see the province 2:53 PM define requirements around reserving units in new developments for affordable housing. As it stands, the regulation defers to municipalities on specifics, paving the way for uneven implementation.

This message comes in a new white paper, Does Inclusionary Zoning Work? In it, REALPAC finds that inconsistent application and unbalanced partnership between government and industry could blunt the effectiveness of this policy tool and produce opposite, unintended consequences.

“Inclusionary zoning, contrary to the understanding of some policymakers, is not free housing,” said Michael Brooks, CEO of REALPAC. “If used improperly, it can drive up costs for home-buyers and work at cross-purposes with government housing plans that seek to improve access and affordability.”

For example, the white paper points out that municipal provisions for how long housing delivered through inclusionary zoning must remain affordable have the potential to lock buyers into this subsidized product. In order to facilitate their move-up to market-rate housing, the white paper asserts that buyers should be able to realize increases in the value of their property at the time of its resale.

Province-wide definitions were dropped from the regulation between its draft and final version, enacted this past winter, in a move the white paper says blindsided industry stakeholders. REALPAC sees a resurrection of the industry-supported provisions contained in the draft version of the regulation as the way forward on inclusionary zoning.

At the same time, however, the industry association cautions that the policy tool should be treated as one of last resort, to be used alongside and where other policy tools fail to deliver affordable housing.

INSURANCE >>

Tenants Need Tenant Insurance What will it take to get them to listen?

by Andy Schwartze

T

he recent high-rise fire in Toronto’s Jamestown district has once again demonstrated the importance of tenant insurance and just how careless some renters can be when it comes to protecting their possessions.

It isn’t the first time temporarily displaced renters have had to learn the hard way that the landlord isn’t always responsible for their losses, and nor will it be the last. While professional managers take diligent steps to ensure every tenant who signs a lease is aware that tenant insurance is a requirement, often this step is skirted. A landlord may demand evidence of insurance before move-in; follow up with yearly reminders and emphasize again and again that the landlord is under no obligation to assume responsibility for events that are beyond their control. Yet still some tenants refuse to buy it, putting themselves at risk.

Some of the sneakier tenants will even go so far as to obtain insurance prior to first

28 | Canadian Apartment | Part of the REMI Network |

occupancy only to terminate it right after move-in. That said, if the landlord can show that a reasonable effort has been made to impress upon the tenant the importance of carrying tenant’s insurance, there’s little more that can be done. Terminating the lease for failure to insure is a non-starter for many reasons.

Landlords have a legal obligation to maintain their properties in a safe and livable condition.

It is their duty to ensure that the integrity of the building’s envelope is well maintained and that the systems within the building work properly and safely. It is not the landlord’s responsibility to predict events that cannot be expected, and which fall outside of the reasonable right of the building occupants’ expectations of good maintenance and management.

Where a tenant can make a case that negligence on the part of the landlord (or its employee or agents) was the cause of a loss, then the tenant has every right to attempt to recover that loss. This does not,

however, extend beyond the market value of what was damaged. A simple case in point is that there is no recovery right to have older contents replaced with their newer equivalent. For that reason, tenant insurance policies provide coverage on a “replacement cost” basis, recognizing that there might otherwise be a financial hardship that the tenant is unable to handle.

The cost of “new” is normally higher than the value of “used”, which is the limit of the legal responsibility that any landlord might have, assuming negligence is evident.

Tenant insurance policies, in the same fashion as home insurance policies, also provide assistance in paying for temporary lodgings if the apartment is untenable.

Thus, the insurer helps maintain the tenant’s monthly living costs at the same level as that of being in the apartment, even though the hotel bill is going to be much higher during the repair period.

INSURANCE >>

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High-rise fire displaces hundreds of tenants A six-alarm high-rise fire was successfully extinguished several hours after a blaze broke out in a Toronto apartment on August 21, resulting in hundreds of displaced tenants. Calls first began coming in about “smoke in the building” at 650 Parliament St., just south of Bloor St. E., at about 1 p.m. and had escalated to a six-alarm response by 3 p.m. Officials speculated at the time that the source of the fire was an electrical box, as heavy black smoke was discovered coming out of the basement and moving up into the building.

Though not much damage was reported within the units, fire officials warned that due to the significant damage to the building’s electrical system, tenants would be forced to find temporary accommodations for potentially several months.

The reality (based on the best empirical evidence available) is that about one half of all tenants do not insure. Where the damage is unexpected and unpredictable, the onus is on the tenant to prove the landlord’s liability.

A tenant who won’t pay a few hundred dollars for insurance is one who can hardly afford to hire legal counsel to take on the landlord. The result is usually vocal complaining that the problem was not created by the tenant and thus the responsibility is automatically that of the landlord. For the landlord, this becomes uncomfortable identification in the press and also, ultimately the loss of one or more affected tenants.

Despite this being a long-standing problem, very little has developed into a solution. The reasons are fairly obvious: for starters, tenants are voters too and it would be a bit scary for anyone seeking political office to try to suggest to the renting public that tenant insurance is mandatory. On occasion, insurance brokers have attempted to create programs for larger landlords wherein tenants are offered such policies, perhaps even at a discount, but

the fact that the purchase of tenant insurance is not enforced, or enforceable, renders such attempts meaningless.

One option would be to take a page out of the leasing business, wherein the lessee’s failure to provide ongoing evidence of insurance allows the leaser to build an insurance charge into the leasing contract. If a landlord were to add a small charge to the monthly rent (perhaps $25) where the tenant has not proven the existence of coverage, he or she could then use that money to arrange insurance for the tenant through an insurer.

However, the right to levy that charge would have to be enshrined in the lease. Failure to pay would essentially be the equivalent of being delinquent in the payment of rent and allow the landlord, if it so wished, to terminate for non- payment. We can easily assume that few tenants would want to face eviction for not having paid that small additional amount.

This problem of uninsured displaced tenants, following an unpleasant event, will not go away until all tenants have some form of insurance at a cost that, to this day, is pretty insignificant.

Andy Schwartze, BSc., MBA, CIP, is an insurance broker specializing in property management and real estate. He can be reached at andy@takecover.ca.

Sourcing third-party blog content

By Steven Chester Did you see something great in today’s news or an industry blog that’s inspired your next blog post? If you’d like to chime in, there are some rules to follow that will keep you in good standing in the online community.

If the article in question is from another blogger, reach out to the author. You can generate some goodwill by congratulating them on a job well done, and can ask to republish the post on your own blog.

Many bloggers also invite guest blogging opportunities or trading of guest posts, so if you’re looking to cultivate relationships, this is a good way to start.

If you’re dealing with a mainstream news publisher, they’ll typically not allow you to republish their work. Your best bet is to give credit to the original author and publication, and be sure to quote no more than a few sentences of their work. Quoting too much of the original text may be considered copyright infringement, and search engines also punish web pages that have duplicate content.

In the text you’ve quoted, be sure to either use quotation marks around the text, or if it’s a full paragraph, indent and italicize the quote so it appears to stand alone from your own post. Be sure to hyperlink to the original piece.

Regardless of who your content source is, it’s a good idea to either email or tag the writer/publication on social media to let them know you’ve referenced their work. Most authors are happy to receive a mention and the referral traffic you’re sending their way, so you might end up with a new contact who may even share your post on their own channels.

The blogging community is more often than not a respectful one, so being a member in good standing will not only keep you out of legal trouble but could help grow your own networking if done correctly.

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.

FEATURE >> >> LEGISLATION

The Landlord’s Guide to PIPEDA Changes to the Personal Information Protection and Electronic Documents Act

by Chris Seepe

All private businesses across Canada, from small residential landlords to large multifamily portfolio owners, will be impacted by the latest changes to the Personal Information Protection and Electronic Documents Act (PIPEDA) beginning November 01, 2018.

P

IPEDA is Canada’s federal private sector privacy law that sets out the ground rules for how businesses must handle personal information in the course of their commercial activity. PIPEDA was significantly amended when The Digital Privacy Act received Royal Assent in June 2015.

Under PIPEDA, all landlords must: • Obtain a tenant’s consent to collect, use or disclose a person’s personal information • Identify the reasons for collecting the personal information (before collection) and only ask for the limited information needed for what a reasonable person would consider appropriate to the circumstances • Provide an individual with access to the personal information the holder has obtained and allow them to challenge its accuracy

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• Only use a tenant’s personal information for the purposes for which it was collected As of November 1, 2018, PIPEDA will include a mandatory requirement for organizations to give written notice to affected individuals and to the Commissioner about privacy breaches, while maintaining records for 24 months about each breach.

All businesses (including landlords of every size) must ensure that personal information is protected by the appropriate safeguards. These might include: locking filing cabinets, restricting office access, employing alarm systems, strengthening technical tools (i.e. passwords, encryption, firewalls), and boosting organizational controls (i.e. security clearances, staff training, agreements, etc.).

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LEGISLATION >> In short, there’s a lot to know about PIPEDA and how, beginning November 1, it will affect your rental housing operation. To test your knowledge and level of preparedness, take this Landlord-Tenant Privacy test: 1.

Do you need a tenant’s SIN number for most things?

Answer: No.

2. Do you need permission to capture a tenant’s face on a surveillance camera?

Answer: Yes, but that permission can be implied.

3. Do you need written permission to do a credit check?

Answer: Yes. 4. What minimum information is needed to do a credit check?

Answer: At minimum, a full name, address and date of birth.

12. Can you take pictures of a tenant’s apartment and contents if you suspect a tenancy agreement breach?

Answer: Yes, however strict rules apply.

13. Can you set up surveillance cameras in your building that capture tenant faces?

Answer: Yes, but strict rules apply here, too.

14. Can a tenant ask what information you hold about them?

Answer: Yes. 15. Can other tenants collect information on a tenant?

Answer: Generally, no.

5. Is it against the law to demand a tenant’s SIN number?

Answer: No law currently prevents landlords from asking for a SIN for purposes of identification.

16. How long can you retain a tenant’s information?

Answer: There is no prescribed period, but not indefinitely.

6. Can you deny a tenancy applicant because they didn’t give you their SIN number?

Answer: No

17. Is there a prescribed process for personal information destruction?

Answer: No, but it must be done appropriately.

7. Can you use the SIN as a general tenant identifier, in your accounting system for example?

Answer: No.

18. Can you disclose personal information to pursue a debt?

Answer: Strict rules apply.

8. Can a landlord ask for a driver’s license, tax information, or pay stubs?

Answer: Privacy law doesn’t prevent such requests but any information obtained must be fully protected.

9. Can you look into a tenant’s background by checking their social media postings or calling another landlord?

Answer: Informal checks are still considered a collection of personal information—therefore, permission is required and privacy laws do apply.

10. Can you put a tenant’s name on a ‘bad tenant’ list?

Answer: Not to an unregulated or ‘ad hoc’ list.

11. Can you verbally disclose bad tenant behaviour to other landlords—for example, during a phone reference check?

Answer: No. Despite bad behaviour or poor payment history a landlord doesn’t have the right to ‘shame’ a bad tenant by disclosing such information, which can be construed as ‘vigilante’ actions. Formal, regulated mechanisms such as credit agencies may be notified in appropriate circumstances.

19. Can police agencies demand tenant information from you?

Answer: Strict rules apply here too and specific documentation is required.

20. Can police agencies demand the landlord allow them entry to a tenant’s unit?

Answer: Maybe, if police declare it an emergency. Otherwise, a warrant is usually required or 24-hours’ notice to tenant.

Strict rules apply.

Now, be honest with yourself: how well did you score? More importantly, do you have all of the above risk exposures covered in your Rental Application form and Standard Lease appendix B clauses?

Chris Seepe is a published writer and author, ‘landlording’ course instructor, president of the Landlords Association of Durham, and a commercial real estate broker of record at Aztech Realty in Toronto, specializing in income-generating and multi-residential investment properties. (416) 525-1558 Email cseepe@aztechrealty.com; website: www.drlandlord.ca

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WHAT’S NEW FOR RENTAL PROPERTY MANAGERS Save time and money with these handy new tools Procurify

Yardi RENTCafé Kiosk

In September, Yardi released RENTCafé Kiosk, a self-service app designed for multifamily property management companies. RENTCafé Kiosk streamlines leasing operations on a tablet. It walks prospective renters through the complete application workflow, assists residents with concierge services and gives agents secure access to front office tools.

Prospects can use RENTCafé Kiosk in the leasing office to explore property photos, amenities and floor plans.

They can create a guest card, set preferences and start an application without any help.

Residents can also use the app to reserve property amenities and sign for packages.

RENTCafé Kiosk brings daily operations full circle for the front office staff. Using the same tablet, leasing agents can manage appointments, see

prospect and resident activity, send follow-up communications and countersign lease documents.

RENTCafé Kiosk integrates with Yardi Voyager, RENTCafé and RENTCafé CRM to give prospects, residents and agents access to real-time property data. Touch ID keeps sensitive data secure and out of sight for prospects and residents.

“The true value of RENTCafé Kiosk is the ease it brings to the leasing office,” said Patrick Lawler, director of RENTCafé product development at Yardi.

“A prospect can learn more, self-select a unit and complete the application right there, including paying related fees.

You don’t have to hand them a paper application and hope they come back or keep a separate computer in the office for online applications.”

Yardi.com/RENTCafeKiosk

34 | Canadian Apartment | Part of the REMI Network |

Vancouver-based start-up Procurify helps organizations cultivate a better spend culture through a simple-to-use software that employees actually enjoy using.

According to owners, the software is “helping organizations reinvent the way they track, manage and control their spending through a ‘smart spend hub’ that empowers users to make better financial decisions through data.”

Founded in 2013 by three operations management students—Kenneth Loi (CRO), Aman Mann (CEO), and Eugene Dong (CTO)—the idea emerged when the trio discovered that the field of procurement was in dire need of disruption in the area of technology. From that realization the cloud-based program was born, helping companies large and small achieve greater visibility into their spending, by tracking purchases and reporting on financial data with certainty.

Procurify’s user-friendly website, dashboard and mobile app makes it easy for users to track items, match invoices, allocate costs, and submit expense forms in a secure, controlled way.

Find out more at: www.procurify.com

Comfy living for tenants.

Comfy energy bills for you.

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

Visit uniongas.com/affordablehousing to learn more.