Issuu

CANADA’S NATIONAL PUBLICATION FOR APARTMENT OWNERS AND MANAGERS

VOLUME 10 / NUMBER 4 / Winter 2014

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PM#40063056

Living

Made Easy 2014 is off to a winning start for Vertica

Enhancing Curb Appeal PA R T O F T H E

Landscaping tips Preparing to sell Lighting your property

P A R T

O F

T H E

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Without visibility into utility consumption and cost recovery at your properties, there’s no way to identify how and where to save — or figure out where you might have system leaks or other anomalies that could be driving costs sky high. And when pertinent utility data is housed in disparate places across multiple desks in your organization, that doesn’t help matters. Bottom line: you need reliable analytics derived from centralized, real-time information.

processing to reduce costs. If you’re ready to capitalize on energy and utility management The only solution that enables you and transform it into a new revenue to accomplish all of that in a single stream for your organization, system is Yardi Energy Solutions.™ analytics help deliver actionable You can also ensure optimized business intelligence. But first, you submeter performance, accurate must centralize operational and allocations and reporting with Yardi utility data within your property management and accounting system Energy Solutions. Now you know so you can leverage the data to gain how to empower energy and utility critical insights along with effective management to improve efficiencies, budgeting and benchmarking. Then, achieve conservation goals you can automate billing workflows and increase NOI. and switch to paperless invoice

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Editor’s Note

Staying Ahead of the Curb According to Wikipedia, curb appeal is the attractiveness of the exterior of a residential or commercial property. Used extensively in the United States during the housing boom of the mid 2000s, the term continues to be used as an indicator of a building’s initial appeal to prospective buyers. For residents, curb appeal is all that and more. Features like towering trees and ambient lighting are lovely, but do they accurately reflect the condition of the interior? Whether a property is forty years old or brand new, its appeal should be thorough if it hopes to remain competitive in today’s rental market. Fixing up an older building may cost money but these days there’s little tolerance for sub-par aesthetics. So, what makes good curb appeal? It’s the combined features that create an inviting impression; lighting that suggests safety...landscaping that soothes...balconies that don’t look as though they’ll crumble the moment they are stepped upon. In this issue of Canadian Apartment Magazine, we offer a variety of tips and ideas to enhance your property’s curb appeal. It doesn’t take much to spruce up the garden or refresh the paint on the walls, and with spring right around the corner, now’s the time to do it. Speaking of freshening up, our cover story profiles a company that always puts a fresh spin on things. Since 2007, Vertica has been doing a good job of staying ahead of the ‘curb.’ Find out on page 18 what exciting things are happening for the ambitious Toronto-based company as it takes on 2014. Sincerely, Erin Ruddy

CANADA’S NATIONAL PUBLICATION FOR APARTMENT OWNERS AND MANAGERS

V OLUME 1 0 / NUMBE R 4 / WINTE R 2 0 1 4

Editor

Erin Ruddy

Publisher

Paul Murphy paulm@mediaedge.ca (416) 512-8186 ext. 264

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Production Manager

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Contributing Writers Peter Cook, Robert Fleet, Paula Gasparro, Derek Lobo, Chaim Rivlin, Andy Schwartze, and Daniel Viola

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For sales information call (416) 512-8186 ext. 262 Canadian Apartment Magazine is published six times a year by:

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LIVING

MADE EASY

Enhancing Curb Appeal PA R T O F T H E

Landscaping tips Preparing to sell Lighting your property

P A R T

O F

T H E

2014 is off to a winning start for Vertica

CAM_January_February_2014.indd 1

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Circulation ext. 232 Subscription Rates: Canada: 1 year, $50* 2 years, $90* US $75 International $100 Single Copy Sales: Canada: $12* * Plus applicable taxes Reprints: Requests for permission to reprint any portion of this magazine should be sent to Paul Murphy

On the Cover: Suzi Mudhar, Todd Nishimura Laura Holland, Mark Hill Doina Hordila, Paula Agnelli Photo by: Drew Duck

PA R T O F T H E

P A R T

O F

T H E

Quoteworthy

“What I’ve always admired about Vertica is its passion and pride for keeping its properties maintained.” - Mark Hill, Director, Technical Services

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

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contents Cover Story 18

FEATUREs

Living Made Easy

Vertica reinforces core brand tenets while forging new territory

By Erin Ruddy

Getting the Look Right By Erin Ruddy

Simple Ways to Enhance your Rental Property By Jessica Green

columns 8

Transactions Market Report By Richard Vilner

10 CMHC From Unsightly to Unsafe By Paula Gasparro

16 Financing Financing, Then and Now By Peter Cook and Robert Fleet

28 Portfolio Strategy Preparing to Sell By Derek Lobo

36 Insurance A year of Surprises By Andy Schwartze

Marketing Bright Lights, Big Payoff By Chaim Rivlin

Departments 4

Editor’s Note

Smart Ideas

Columnists Peter Cook, Robert Fleet, Paula Gasparro, Jessica Green, Derek Lobo, Andy Schwartze, Richard Vilner

6 www.canadianapartmentmagazine.ca

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» Submeter installations and maintenance include reporting on exceptions and equipment health To learn more, call 888.569.2734 or visit yardi.com/cam35 Yardi Energy Solutions is a service provided by YES Energy Management, Inc.

Transactions

GTA Market Report By Richard Vilner

In the first month of the year, a total of $91 million through 14 multi-residential properties traded throughout the GTA Region (deals above $1 million). The price per unit for the month averaged $193,795, while the average yield was 5.42%, remaining in line with the average yield in 2013 of 5.46%. Starlight acquires North Vancouver properties

Feature transaction: 2808 – 2810 Keele Street, Toronto, Ontario Located on the west side of Keele Street, north of Wilson Avenue in the City of Toronto, the property is comprised of a 52-unit apartment building and a single, detached residential dwelling. Built in 1937, it was purchased by a local, private investor for a total consideration of $6,450,000, representing a price per unit of $121,698. The transaction was brokered by Mysak Realty Inc., and was on the market for approximately 11 days. Date of Sale: January 31, 2014 Sale Price: $6,450,000 Capitalization Rate: 5.1% Total # of Units: 52+1 Price per Unit: $121,698

This first class asset known as Parklea Apartments at 151 E. Keith Road consisted of a 15-storey 88-suite building in North Vancouver’s Lower Lonsdale neighbourhood across from Victoria Park. It was acquired for a benchmark $25,500,000. This represented a price per sq. ft. of $443, price per unit of $289,772 and a cap rate of 3.25%. This is the only purposebuilt apartment building to trade hands in 23 years in North Vancouver. The building is fully rented. Built in 1975 the property is unique to the Vancouver market being built with concrete. Starlight also purchased an 18 suite lowrise for $9 million in the upscale Kerrisdale area. This property also has potential for land assembly on either side to create a much larger development site. Mark and David Goodman from the Goodman Report acted for the seller for both transactions.

For more transactions, visit This article was written by Richard Vilner, Research Manager at RealNet Canada Inc. Contact Richard at: rvilner@realnet.ca. RealNet Canada Inc. is the leading real estate information services company in Canada, powering the decisions of firms involved in approximately 75% of the market activity. www.realnet.ca 8 www.canadianapartmentmagazine.ca

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CMHC

From Unsightly to Unsafe Dealing with Deteriorating Balconies By Paula Gasparro, Canada Mortgage and Housing Corporation

The ravages of time are particularly noticeable on high rise structures where weather conditions over a prolonged period of time play havoc on even the most basic elements of a building. Our cities are full of them, those once attractive residential towers that now look unsightly—and unsafe. One example of this is a 30-year-old, eightstorey Ottawa apartment building that had such badly deteriorating balconies; tenants could no longer use them. Loose concrete fragments had to be removed and the slab shored. In order to restore the structural integrity of the balcony slabs, the building owner undertook a major rehabilitation project; the first major work on the balconies since the building first opened. “The objective was to assure the safety of the public and increase tenants’ comfort by allowing them to use their balconies during Ottawa’s hot, humid summers,” said Jamie Shipley, senior research consultant at CMHC. 10 www.canadianapartmentmagazine.ca

The process began with a detailed preconstruction survey that outlined the concrete and railing deterioration, determined the remedial measures required, and estimated overall costs. “Deterioration of the balcony slabs and railings was so bad that it was not safe for many tenants to use their balconies,” said CMHC’s Shipley. Also, the condition of the balconies and railings made the building unsightly, reducing the building’s curb appeal and possibly, its marketability. Delaying repairs would have led to more severe deterioration and, in time, higher repair costs.

CMHC The scope of the work The reinforced concrete building had a brick masonry façade. There were 56 reinforced concrete cantilevered balcony slabs with a total area of 463 square metres (4,981 square feet). Balcony railings consisted of steel handrails with intermediate metal panels. The balcony slabs and railings exhibited extensive deterioration. The most severe concrete delamination and spalling were along the balcony edges, the result of freeze-thaw action. On some balconies, crumbling concrete forced the building’s owners to remove concrete fragments and shore the edges of the slab. Exposed reinforcing steel was visible on some balconies and the metal railings showed significant corrosion on the panels, handrails and the railing posts. There were loose railing anchors and the railings no longer met current Ontario Building Code (OBC) requirements. “The owner had no choice,” said CMHC’s Shipley. “The slabs had to be repaired or replaced. The new, exposed concrete had to be protected from excessive moisture and freeze-thaw damage.” And that was only the beginning, he explained. “The balcony railings also had to be repaired or replaced. The owner decided to replace the railings, upgrading them to current OBC standards.” Work was carried out from mid-April to midNovember. Deteriorated concrete was removed and replaced with Portland cement concrete for through-slab repairs and polymer-modified concrete and repair mortars for patching repairs. Because more than half the balconies required major through-slab repairs, it was essential to carefully plan and execute shoring, form work and concrete placement. The contractor used a two-component, multi-coat membrane over the new exposed concrete slabs. The polyurethane membrane is waterproof and applied in liquid form. It is designed for heavy use. The balcony railings were removed and replaced with custom fabricated, galvanized steel railings. Before installation, they were coated with polyurethane enamel. In the end, all involved considered the project a triumph. “It restored the structural integrity of the balconies,” said CMHC’s Shipley. “And, it extended the service life of the balcony slabs and replaced deteriorated railings with new guards meeting current OBC standards.”

Shipley said the success was in the project’s problem-solving approach, particularly in the detailed survey of balcony conditions before work began. “This allowed all parties to have a clear idea of the scope of the work,” Shipley added. Also, the owner-property manager invited only contractors experienced in this type of work to bid, minimizing delays and cost overruns. “That was key,” Shipley said.

To take advantage of CMHC’s Mortgage Loan Insurance or to learn more about CMHC resources, contact Paula Gasparro, Manager, Business Development, MultiUnit Mortgage Insurance at 416-250-2731, via e-mail at pgasparr@cmhc.ca or log on to www.cmhc.ca/mult-unit.

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Winter 2014 11

Feature

Getting the Look Right A lot can be achieved with the right vision Canada has some beautiful buildings—though some are notoriously not. Toronto in particularly is home to some of the nation’s drabbest creations, 1970s apartment towers you’d never expect to see featured in a copy of Architectural Digest. But, could all that be changing? Here is a look at some of the rental properties that are doing it right by investing in curb appeal. Everything from luscious landscapes to modern designs are helping to change the look of these properties, and by extension, the look of our cities.

Le Mille Neuf Managed by: Oxford Properties Location: 1009 rue de Bleury, Montreal Number of units: 197 Year of construction: 2006 Property features: Le Mille Neuf is a 19-storey building situated near Old Montreal. Modern architecture and exceptional building amenities, such as an outdoor salt water pool, combine with elegant suite features to create the one-of-a-kind space its tenants enjoy.

12 www.canadianapartmentmagazine.ca

Feature

88 Spadina Managed by: Park Property Management Inc. Year of Construction: 2009 Location: The Annex, Toronto Number of units: 91 Property features: The new building features engineered hardwood floors, French balconies, three appliances and central air conditioning in all units. The property offers an on-site media room, a recreation room and an exercise room in the adjacent building (100 Spadina). Both buildings are steps to the TTC, parks, schools, and entertainment.

Village Gate West Community Managed by: Concert Location: Etobicoke, Ontario Number of units: It features three rental buildings (200-plus units each) and one senior’s residence (168 units) Year of construction: 2007 – 2012 Property features: Located in Central Etobicoke, the community is within close proximity of both the Islington and Kipling TTC stations. Residents can stroll over to Islington Village for pubs and restaurants, explore the wider selection of shops and services at Bloor West Village, or venture to downtown Toronto in 20 minutes by car or TTC.

Winter 2014 13

Feature Alto Owner: Edenshaw Location: 1544 Dundas Street West, Toronto Year of construction: Construction began in February 2014 Number of units: 95 (terraced 8-storey mixed-use building) Property features: Once complete, the spacious apartments at Alto will boast stainless steel appliances, laminate wood floors, porcelain tile bathrooms, smooth ceilings, stone countertops, and a washer/ dryer in every unit. Amenities will include an access controlled lobby, fitness area, and party lounge, with ample parking, storage lockers, and bicycle stalls. Alto is in the heart of Little Portugal conveniently located close to shopping and restaurants.

Gates of Bayview Managed by: Sterling Karamar Location: Bayview Village, Toronto Number of units: 641 Year of construction: 1972 Property features: Older properties like this can really benefit from exquisite landscaping. The Gates of Bayview offers residents a private, parklike setting with manicured lawns and shrubbery, mature foliage and stunning floral displays. This gated community also has an indoor pool, fitness centre, squash and tennis courts as well as 24-hour Gatehouse service.

14 www.canadianapartmentmagazine.ca

Finance

Financing, Then and Now

How will the 2014 multi-family market compare to last year?

By Peter Cook and Robert Fleet

2013 was a good year for landlords who continued to enjoy some of the lowest interest rates in Canadian history. Many took advantage of these favorable rates by refinancing and unlocking equity from their buildings. Borrowers used this equity to acquire new properties, complete much needed capital expenditures and green their buildings. The Bank of Canada rate remained unchanged at 1.0% for the entire calendar year. This past year has seen an improvement in Canadian consumer confidence. Cap rate compression in the apartment industry pushed market values to all time highs in many Canadian cities. CMHC insured mortgages continued to be the most popular mortgage product of borrowers in 2013. Interest rates The sheer size ofthe U.S. economy and its impact on the rest of the world continued to affect the Canadian markets and interest rates. On May 22nd, U.S. Federal Reserve Chairman Ben Bernanke announced the Fed may taper or reduce the size of the bond-buying program, known as quantitative easing. This bond-buying program was designed to stimulate the U.S. economy. The announcement was a surprise and led to turmoil in the financial markets in the second quarter. The mere mention of a possible reduction of spending from the current 85 billion dollar-a-month stimulus caused panic. Within seven days of Bernanke’s announcement, Canadian bond rates spiked temporarily 100 basis points, causing Canadian borrowers great concern. However, the U.S. bond-buying program remained unchanged for the balance of the year. As a result of the continued stimulus program, Canadian bond yields began to decline. Overall 2013 saw the five year Canada Mortgage Bond increase by over 30 basis points and the 10 year rise by 70 basis points. This highlights the volatility that can occur when our friends to the South make any changes to their monetary policy. In many ways we are at their mercy. Five or ten year terms? Throughout 2013, 70% of our clients opted for 10 year term financing. This was a substantial shift from prior years where five year term was the norm. This decision should be based on the client’s overall business plan for the property. The ability to absorb a large jump in interest rates at the end

of five years must be strongly considered when deciding on length of the term. The Canadian apartment rental market The low interest rate environment in 2013 kept the real estate market very competitive. Cap rate compression forced premium pricing in the multifamily market. In CMHC’s October report, vacancy rates increased slightly to 2.7% up from 2.6% in 2012. Demand for properties outstripped supply and the seller’s market continued throughout the year. Vendors received multiple offers for their properties resulting in bidding wars driving prices to all-time highs. What is the outlook for 2014? We anticipate seeing more of the same in 2014. The outlook for employment and economic growth is expected to gain further momentum this coming year. Rates should slowly climb once again as confidence grows in the economy and the US Government gradually reduces its monthly stimulus program. A sustained increase in interest rates may lead to a slight climb in CAP rates over the year. Vacancy rates will remain low as residential mortgage restrictions will continue to force potential home buyers to remain in the rental market longer. In summary, we predict the multi-family market in 2014 will remain an attractive low risk investment and demand for apartment buildings will be high throughout the entire year. It will still be an excellent environment to refinance, unlock equity or acquire new property.

First National is the largest apartment lender in the country. If you are considering acquiring or refinancing a property, First National is one of the few companies that will have access to all three mortgage products; CMHC, conventional and CMBS. It is important you consult with a mortgage expert to determine the best mortgage product for you and your company. 16 www.canadianapartmentmagazine.ca

Engineering Excellence

Cover Story

Living

made easy Vertica reinforces core brand tenets while forging new territory By Erin Ruddy

18 www.canadianapartmentmagazine.ca

Cover Story

2014 is off to a winning start for property management company, Vertica Resident Services. With a strong presence already established in the GTA, Ottawa, Montreal, Edmonton and Calgary, the multi-residential firm recently entered the Halifax market and looks forward to more growth in the coming months.

Winter 2014 19

Cover Story

Founded in 2007, Vertica Resident Services is a wholly-owned subsidiary of GWL Realty Advisors (GWLRA). Vice President, Laura Holland is among the key decision-makers leading the national staff of 200-plus. From her corporate headquarters in downtown Toronto, Holland strives to be a cut above the rest, identifying customer service akin to the hotel sector as one of the key factors. “When we launched Vertica seven years ago,” Holland explains, “we wanted to change the status quo and create a company that was unique to the industry. We wanted to bring a high level of professionalism and specialization to our staffing model. We consider each property individually with respect to our staffing model in order to create an experience that is second-to-none for residents. We spent a great deal of time developing our brand tenets to truly define what the Vertica experience means. We wanted to take best practices from the hotel industry and adapt it to the residential side. This involved hiring a number of staff from the hotel sector—because that industry really knows how to provide extra service.” Today, the four brand tenets Vertica stands for are: Customer Service, Convenience, Cleanliness and Community. And, as Todd Nishimura, Director of Leasing and Marketing, points out: “These aren’t just tenets that hang on a wall. These are things we live and breathe—that we truly believe in. These principles have been in place since Vertica’s inception, but my responsibility when I joined Vertica was to take the brand, propel it forward and create an experience that would resonate with our customers. ”

20 www.canadianapartmentmagazine.ca

“

We consider each property individually with respect to our staffing model in order to create an experience that is second-to-none.” - Laura Holland

The Customer Experience Angela Thomaidis, Manager, Customer Experience, prides herself on forming and nurturing strong customer relationships. Her position is a unique one within the industry, developed strictly to boost resident retention, decrease resident vacancy, and promote a positive rapport with the residents who call Vertica-managed properties home. “My position is the conduit between the residents and senior management at Vertica,” Thomaidis explains. “I look after resident inquiries, feedback and concerns with attention to corrective action to improve Vertica’s processes. We use our resident’s feedback to support and coach our onsite team, who are the customer service representatives of our company. My goal is to ensure the customer always remains front and centre. Our biggest challenge is to ensure the connection between our promise of ‘Living Made Easy’ and the comfort,

Cover Story

“

Our residents always come first. I know a lot of companies say that but we truly believe it.” - Angela Thomaidis

22 www.canadianapartmentmagazine.ca

convenience and superior service our residents expect from Vertica.” “We are very customer service focused,” continues Thomaidis. “Our residents always come first. I know a lot of companies say that but we truly believe it. At Vertica, it’s not only a rental contract; it’s a promise. We try our best to maintain our residents’ homes like we say we will. If they ask us for maintenance we will be there within 48 hours to fix the problem. We do everything possible to keep our customers happy and proud of their home.” Leasing Manager, Michael Vezina, is another Vertica employee dedicated to delivering a top notch customer experience. “I coach our leasing consultants to not be ‘order takers’,” he points out. “We are involved with our customers as soon as they make contact. We get to know them in order to provide them with what they want. I travel across Canada to visit all our sites. I take pride in the little things we do—in punctuality, manners, responding quickly and effectively. These may sound like small details but when it comes to customer satisfaction, the details are what really count.” Another way Vertica strives to bring the customer experience to life is through the training and education of its staff. “Employee growth is a large part of our mandate,” explains Suzi Mudhar, Director, Corporate Resources. “Most of our training is done inhouse. We customize our programs to meet our company and resident needs. We have a complete orientation package, a customer service training package, a leasing package, and we’re in the process of developing a stronger maintenance package. We also offer a training and development tuition reimbursement allowance so employees can

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take courses that are relevant to their growth. Recruitment is always busy because we are continually growing, filling the new positions we’ve created, or for the new properties we’ve acquired. We strive to be proactive, professional and insightful, which is all part of the Vertica experience.” Convenience Convenience is something the company emphasizes, as espoused in its tagline, ‘Living Made Easy.’ This is achieved through the technical features of a building, by regular communications from management, or even by the location of the buildings themselves. “Our property locations are all, for the most part, outstanding,” says Vezina. “Close to transit, amenities and shopping.” “It helps that the suites are well built and well managed,” adds Mark Hill, Director, Technical Services. “What I’ve always admired about Vertica is its passion and pride for keeping the properties maintained. We want people to come home, relax, and not have to worry about whether the elevator is working or the lobby is clean. We are continually communicating with our residents, whether it be through our resident portal, via email, phone calls or, most importantly, in person. We work diligently to mitigate issues as much as we can.” In December, 2013, Vertica launched its new corporate website and expects it to be a convenient source of information that falls under the ‘Living Made Easy’ mindset. “For a lot of our customers, the Vertica experience begins the second they hit our website,” explains Todd Nishimura. “We wanted to create something that was

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Cover Story contemporary, that used best practices and made finding an apartment easy. Every component, every feature was put in place to make it easier for the prospective resident.” The new website also offers a community activities blog and an on-line resident portal that allows residents to submit maintenance requests, check their account balance live, stay connected with what is happening in the community, book amenities and elevators and much more – at their convenience 24/7 with a click of a mouse. Cleanliness Paula Agnelli, Regional Property Manager for GTA and Brampton as well as having over 30 years experience in multi-residential property management, has her finger on the pulse of resident activity and understands what’s expected at the site level. A clean, safe property, she says, is something that cannot be undervalued. “Quite simply, we want our buildings to shine. We also want them to be safe,” she explains. “To ensure this, someone walks the properties ever day so problems or safety hazards don’t go unnoticed.” Taking its promise of cleanliness to a whole new level, Vertica is proud to become the first property management company to introduce a new, natural, all-purpose sanitizing agent in place of traditional chemical cleaners across its portfolio. Created by Canadian company Tersano, the Lotus PRO system’s patented technology transforms ordinary tap water into a chemical-free commercial cleaner by infusing it with ozone. A number of healthcare facilities, public service institutes and casinos are already using the Lotus PRO system, touting it as an effective method for eliminating germs, odours, stains, mould, mildew and other contaminants on any surface or item.

Facts about the Lotus PRO cleaning technology: • Requires minimal safety training— converts back into pure water and oxygen after a certain amount of time • Quickly kills odours, stains, viruses and bacteria, including E. Coli, Salmonella, MRSA, C-Difficile, and hundreds of other common germs • 100% chemical free - no toxins, carcinogens or chemical residue • Can be used on any surface, from toilet bowls to windows

26 www.canadianapartmentmagazine.ca

“We’d heard about it,” Agnelli says, “but before introducing it to our properties, we conducted our own independent third-party testing to see if it lived up to its reputation. And it did, removing more bacteria than our chemical cleaners as well as not having to deal with smells or residue on surfaces. Residents with sensitivities to chemicals aren’t bothered by it—and another advantage is that if you spill it, it won’t stain. It is a big step forward for not just Vertica but for a greener environment.” Community Vertica’s fourth tenet is certainly not its least valued, and that is its commitment to community initiatives. In order to promote and build resident loyalty, Vertica organizes resident appreciation events throughout the year. Through these events, staff have the opportunity to interact and build rapport with residents and thank them for their continued loyalty. For residents, it offers the opportunity to meet their neighbours. A few of the organizations Vertica supports on an ongoing basis include: Interval House, Ronald McDonald House, the Scott Mission, and Habitat for Humanity. “We are very community-focused,” says Thomaidis. “We donate according to location. Our residents like to give locally so each one of our buildings has a designated charity for the holiday toy drive. We also host a summer picnic for the families of Interval House. No detail is overlooked when we organize

an appreciation event for our residents. From the choice of theme to food to music and entertainment, every detail comes together to create a memorable event for our residents. This is why our events are always well attended and residents look forward to them throughout the year.” Doina Hordila, Director of Finance, adds, “I have seen many changes in the industry. Lately more people are switching from homes to rental because it makes better financial sense. Renters are taking pride in their homes and treating their buildings like communities. Property managers are doing more than they used to. At Vertica, we do a lot for our residents to ensure that they are happy and we take pride in our buildings. Building a sense of community is an important part of the puzzle, and we are happy to offer it.” Adds Vice President Laura Holland: “We always want to be ahead of the game. We always want to be the first to bring something into the market, to make improvements that are important to our residents and clients. Similar to our attention to customer service, our new website and our focus on cleanliness, the Lotus PRO System is another industry first, enabling Vertica to be chemical-free. It feels good to be the first property managers to bring this forward.” With 2014 off to such a great start, we look forward to what the future holds for the hard-working, forward-thinking team at Vertica.

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Untitled-3 1

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Portfolio

Preparing to Sell From street to suite, tips for boosting your building’s value By Derek Lobo

While real estate brokers may use the same language, selling an apartment building is not like selling a house. Apartment buildings exist on a completely different scale—meaning that while similar words can be used, their intent becomes something entirely different. For one thing, the amount of preparation required to sell your apartment building may take months, but it is important to set aside this time. By ensuring that your apartment is properly staged, you can rest assured you 28 www.canadianapartmentmagazine.ca

won’t be leaving any money on the table when you sell. Here are seven tips to help increase the value of your apartment.

Portfolio

1. Consider how your building looks from street to suite A house that has good curb appeal will sell better than one with poor landscaping. For apartment buildings, good curb appeal will ensure that you will attract more prospective tenants, but it’s also important for investors. Too many apartment owners think they need only focus on the quality of their units, or even the outside of the building. They forget that prospective tenants experience their building as a progression from curb, to lobby, to elevator, to corridor before they get to their apartment’s front door. Investors will look at your property and see lower rents and higher vacancies in dated carpets and elevators that are out of service. 2. Investor curb appeal means attention to apartment infrastructure Investors are also looking at things that prospective tenants might not. They want to see whether your building has up-to-date infrastructure. They

want to see a roof that isn’t in need of replacement. They want to see no signs of potential environmental issues like abandoned oil tanks or asbestos. Even if these potential environmental problems aren’t obvious, look into them and get them addressed. They will appear during due diligence, and they may cause a deal to fall through, or force you to backtrack on your price. 3. Stage your apartment, financially as well as physically Staging has been used by the real estate industry to help sell houses for the past few years. Sellers hire professional stagers to rent furniture to fill up the empty rooms of a house during the period in which it is for sale. With a keen eye to detail, stagers produce a home that looks both uncluttered, as well as lived in. Staging is an art, almost like storytelling. Very few real families would be able to live in houses as they are staged. However, by

carefully placing tables, chairs, decorations and even place settings, stagers tell stories through their presentations. This way, they are able to convey a sense of potential in the minds of prospective buyers – far more than is conveyed by a series of empty (or cluttered) rooms. Professional staging helps prospective tenants see themselves as renters in your building. Financial staging helps prospective buyers see themselves as owners of your building. Potential investors aren’t looking to live in your building, they want to see that they can make a good return on their investment in buying your building, and here’s how you can tell your tale. Take your building and upgrade a handful of your suites. Rent these suites out at a higher rate to reflect the upgrade, and then hold onto the building for a year. This way, you will be able to show in a year how much you can increase your income by renovating the other suites in your building.

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Portfolio You have told a story, and given investors the evidence they need that potential exists. A completely un-renovated apartment building may have tons of potential, but renovating a handful of units unlocks the image in the minds of prospective buyers, and that will increase the offers you will get. 4. Don’t Forget Your Expenses Financial staging also works in terms of dealing with your operating costs. Taking the time to install low-flow toilets and shower valves, or improving the lighting of your building with compact fluorescents will show investors the potential that exists on the expense side of the building. A building that has potential to increase its net operating income through increased rents and decreased costs is a gem that every investor is looking for.

Are you contemplating the sale of your apartment property?

With over 20 years experience, tens of thousands of units sold, and hundreds of clients represented, we have consistently delivered superior results. Through our local and national coverage, we create maximum exposure, ensuring maximum value for your property. Please visit our website at www.cbre.ca/nag-toronto or contact us at 416.815.2332 to learn more about how we can help you.

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Calgary

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30 www.canadianapartmentmagazine.ca AD Redesign Half Page Island 2011 Jan 012.indd 1

Selling an apartment building may be different than selling a house, but the language is the same because the main activity is the same: as sellers, we are trying to tell compelling stories about our properties that make investors want to buy them. A good real estate broker will help you write your own story, addressing curb appeal and financially staging your property to attract the best buyers. With the properly staged building showing off its true investment potential, you will have potential buyers stepping off that curb and beating a path to your door.

Derek Lobo is the CEO of ROCK Advisors Inc. To learn more about investing in or developing student housing, consider attending the Third Annual ROCK Student Housing Symposium in the spring of 2014. Details can be found on our website, www.rockaptadvisors.ca

SOLD 849 Suites - Toronto $129,564 per suite

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2014 promises to be another exciting year for the purpose-built rental apartment industry. The opportunities have never been better, and investors only need to take the leap. But it doesn’t have to be a blind leap of faith. This coming spring, Derek Lobo will be hosting the second annual symposium on new apartment construction and the third annual symposium on student housing. These events are an excellent chance to meet and mingle with developers, investors, building owners and other professionals and to learn more about the opportunities that await. More details will be available soon at www.rockaptadvisors.com

Consider the following: • Who will represent your best interests? • Who will give your property maximum exposure? • Who will deliver the highest value for your property?

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Learn More about 2014 Opportunities

1/6/2012 4:35:37 PM

Building Lasting Change 2014 Exploring the Value of Green Building

Toronto, June 2-4 at the Metro Toronto Convention Centre

Attention Real Estate Professionals! Connect with the green building community at Canada’s largest green building conference and expo. A program that promises to inspire... This year’s program will address new information on the business case and performance of green buildings, but also embrace the broader value proposition of building green. Going beyond the operational savings, the focus will be on emerging benefits that are now becoming better understood such as: • Enhanced health and well-being; • Tenant attraction and retention; and • Innovation and job growth with linkages to enhancing corporate social responsibility, shareholder value, environmental quality, livability and international trade.

We’re expanding this year to accommodate 200 booths, and providing a more interactive trade show floor: • International Pavilion • Green Product Showcase

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Curb Appeal

Simple ways to Enhance Your Rental Property

Tips for Property Managers By Jessica Green

It’s a competitive market out there. Innovative marketing tactics and visionary brand awareness campaigns will only get you so far with today’s apartment hunters. While traditional and digital advertising will put your company’s name on the map, if the property itself looks like a rundown relic of Toronto’s 1960s mass housing boom, you’ll be kicked to the curb before you can say, “modernized elevators.”

32 www.canadianapartmentmagazine.ca

Curb Appeal

A recent study conducted by J. Turner Research noted that 46% of renters determine their interest in an apartment simply by walking or driving by the site. In other words, that award-winning suite turn is worth its weight in coal if you can’t get a prospect through the door. “Curb appeal is the single greatest indicator to prospects and existing renters of a landlord’s attention to detail,” says Canada’s leading multiresidential marketing specialist, Sheryl Erenberg. “If they can’t keep the grass alive, what else is being neglected inside the building?”So roll up your sleeves and reel in quality traffic by making your building stand out as the Shangri-La of the neighbourhood with the following tips from the experts.

Deep-freeze decorating In a particularly harsh winter, snow and ice can quickly pile up. Keeping entranceways clear is essential for the safety of current residents, but also serves the dual purpose of maximizing the inflow of prospective renters. It shows care and attention is paid to the maintenance of the site despite the cruel musings of Mother Nature. By the same token, keep an eye on icicle formations that could pose a potential danger to those below. “Another way to make entranceways more appealing,” adds Erenberg, “is with seasonal planters. Plus, in the winter, pathways should be shoveled and salted. I can always tell which landlords are really paying attention when I see ice-melter (which is less harmful to dogs’ feet) instead of rock salt.” Due to the early setting of the sun, the winter months provide an opportunity to make your apartment complex shine with light displays, particularly around the holidays. In addition to installing effective outdoor lighting tocreate a sense of safety and security, holiday lights create visual interest.Blue and white lights, in particular, play beautifully off of the snow and will catch the eyes of passersby. Resist the temptation to overdo it. By adding balanced lighting to avoid dark areas to a few trees and bushes near the front, your building will be tasteful and colourful enough to spark some interest. Spring cleaning The melting of snow in the springtime heralds a sense of renewal, so now is the time to refresh the exterior of your building. “Although we are taught to never judge a book by its cover, we do,” says Simone Webb, Director of Leasing & Marketing, Starlight Investments. “Curb appeal forms that critical first impression and attention to detail sends a subtle, yet powerful,

message that you care.” As the snow recedes, a season’s worth of sand, gravel and other de-icing accessories will be left behind. Sweeping them away from your walkways will make an immediate difference, leaving your property looking clean. Adds Webb: “Edging walkways, cleaning windows, adding a fresh coat of paint and pressure washing are quick ways to enhance your curb appeal while staying within budget.” Spring also affords you the opportunity to plant the flowers that will bloom around your property in the summer. This step is key when it comes to a centrefold-worthy property. And, it goes beyond a shot of fertilizer and clean beds. Plant your flowers for optimal exposure, including the walkway leading to the front entrance, all around the ground floor and near the base of small trees. Aim to use colours that will attract foot traffic—bright yellows, oranges, and reds are more appealing than a solid bed of darker brown and purple flowers. Once the snow has melted completely, seeding the lawn will pay off after the April showers, bringing flowers and a lush look to the entire site. Summer facelift The summer months are the ideal time to undertake large outdoor projects that will work to enhance the overall look of your property. By this point, your flowers have sprung to life and the rain has eased up. One of the most significant projects to undertake is painting, which can include entryways, balconies and perimeter fencing. Although you certainly won’t have to invest in a full-scale painting job each year, monitor the exterior of your building to see where paint is chipping and ensure spot-treatments are attended to. If your current paint job has faded, or it has been more than five years since the last time Winter 2014 33

Curb Appeal your building was painted, it’s time to call in the big guns. Of course, exterior maintenance is not limited to painting. Take care of sagging gutters, rotting wood on balconies, torn window screens and potholes in the parking lot. In fact, a smooth, restriped parking lot can have as much impact as brand new balconies. And on that note, don’t forget to remind residents that balconies are not for storage— especially when it comes to those units facing the street. Nothing is too small to ensure your building is at its absolute best. Of course, the usual summer maintenance of mowing the lawn, pulling weeds, picking up trashand trimming trees and bushes around thesite will be the attention-to-detail edge that will putitin a league of its own. Fall-back plan When it comes to curb appeal, autumn generally means one thing—keeping the falling leaves on your property in check. While a few leaves here and there do add some whimsy to the season, don’t allow them to pile up to the point of unsightliness (not to mention how hard it will be to finally clean them all up!).

Use this time to prepare the complex for winter. Check the lighting around all entranceways and replace bulbs that have burned out, keep the gutters clear of leaves and arrange to have any trees branches that are close to hydro wires removed. Take stock of your property’s street sign and building numbers, too. Are they clean and eyecatching? Consider investing in a sign that is truly unique—one that potential renters will remember when they drive or walk by.

look at these projects not only as rehabilitation efforts, but as once-in-a-lifetime opportunities to significantly improve the appearance, organization and function of a building exterior for a relatively small additional cost.” So what does such a colossal undertaking look like? “Geometric pattern, colour and material of windows, and balcony-guard replacements are carefully thought through with a view toward calming and organizing the building façade,” Binder explains.“Stripping garage top slab affords us the opportunity to re-arrange walkways, planting and lighting in a way that accommodates and enhances the pedestrian experience, and most importantly, establishes a strong discourse between the building and City street—which is so often weak or entirely absent. This is when the areas outside of a building start to feel more like urban spaces for pedestrians rather than just spaces.”

Architectural Digest Architect David Binder, President of Hanard Investments and Rosebind Developments, explains, “Improving the exterior presentation of an existing rental high-rise can be an expensive undertaking.” Having accepted FRPO’s 2013 MAC Award for Outstanding Curb Appeal at 30 Carabob Ct. in Toronto – a joint endeavour with property manager Greenwin Inc. – Binder knows first Jessica Green is the founder of Cursive, a hand the positive impact of investing in a Toronto-based communications consulting property’s rejuvenation. “The inevitable time firm that specializes in brand messaging with comes in the life of a building when, due to an emphasis on digital media strategy in the TakeCover_CAM_August_2013_FINAL.pdf 1 13-07-22 2:54 PM real estate sector. Get connected by visiting age, windows must be replaced, balconies restored, and garage slabs rehabilitated. We www.cursivepr.ca.

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Insurance

A Year of Surprises Even in Canada, disasters happen By Andy Schwartze

It must be the number “13” that can claim responsibility for the series of disasters that marked the former year, making it one of the worst years, disaster-wise, in our history. We tend to sit back here in beautiful Canada, stalwart in our belief that bad things don’t happen here. After all, the weather is fairly predictable—it rains in the spring, it snows in the winter, but typically typhoons and other freaky weather systems are things that happen only in other places. Well, last year was a great example of just how nasty things can get. So far, 2014 hasn’t offered us any better, with temperatures reaching the negative teens more days than we can count. But fortunately, the sun is on its way back north and eventually even Old Man Winter will have no choice but to capitulate. 36 www.canadianapartmentmagazine.ca

Insurance

The flooding in Calgary last summer was, in the eyes of some experts, worse than Katrina in New Orleans. This is one comparison that should be left to the experts, but the fact that it was an ugly and costly disaster goes without question. In 2013, we also had the return of “Hurricane Hazel,” that nasty rain storm in 1954 that every baby boomer remembers with dread. The flooding in Ontario was so unusual that it forced people in downtown Toronto off the roads, with many abandoning their cars for the night. In some areas, the enormous amount of water flow was downright dangerous. New rainfall records were set that had not been broken since 1954. If that wasn’t enough, December handed the ice storm to residents of Ontario in the days leading up to Christmas. This packed such a wallop

it was in the news everywhere, even in Europe. The very last homeowner to be reconnected to his electricity grid waited some 30 days to get it. (2013 not only gave us some serious weather challenges from Mother Nature, it also gave us the entertaining antics of a fellow by the name of Rob Ford, Toronto’s big city version of Sideshow Bob.) Through it all, the world of insurance has been remarkably quiet. Over the past 20 years, the amount of capital that has emigrated from other investment sources and sought the safety of insurance company balance sheets has been enormous. After all, who wants to hang around capricious stock markets and one percent paper when insurers must surely do better? Today, this industry is solidly capitalized, throughout the world, and knows all too well that it can re-price its policies once a year. Losing money need

only be a temporary inconvenience. Shareholders won’t lose any sleep over a temporary setback. Where this may change, as with so many other elements of a mature economy, is in the area of interest rates. While the current rate stability in the Canadian insurance market is presently influenced by the one public company that dominates the market, with just under 25%, (they do not want to endanger their share price, after all) a spike in interest rates could see a number of changes. Higher interest rates put a serious squeeze on consumers, and when that happens, the claims numbers begin to rise. The small nuisance claims, that were typically paid out of one’s own pocket, are now presented for reimbursement. While on one hand, insurers gain some added traction on the treasury notes

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Insurance

“

With the market leader continuing to focus on profitability, it signals all others that market stability will continue.” - Andy Schwartze

and GICs, that are their limited form of investment, their customers now increasingly hold out their hands for financial compensation. It creates an interesting problem that insurance managers must grapple with—balancing their premium demands with the rising investment income; offset, of course, by the growing claims demands. This is no easy feat for any of these managers, as errors of a few percentage points can grow in to some big losses. Often that’s exactly what happens and usually to the detriment of the insurer’s performance. Price competitiveness always goes too far and must then snap back sharply. What’s interesting is the role that is being played by Canada’s largest

38 MaximGroup_March_2013.indd www.canadianapartmentmagazine.ca 1

insurer, Intact Insurance. We all know that Ottawa does not want any one insurance “group” (more than one with common ownership) to take on any more than 25% of the market. Intact is very close to that threshold. They have expanded as best they can, by acquiring other insurers and also buying up a network of independent insurance brokers. Having done as much expanding as they could, the goal now is to

grow their share value and, of course, their dividend. We don’t think Intact will risk poor results by engaging in a rate war to attract business, as has happened in previous decades. With the market leader continuing to focus on profitability, it signals all others that market stability will continue. It may be a bit boring for insurance consumers, but better that than an unpleasant surprise at renewal time.

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

13-03-25 9:29 AM

STUDENT HOUSING: MAY 6

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Marketing

Bright Lights, Big Payoff Why Investing in Lighting and Technology Helps Boost Curb Appeal By: The RentSeeker.ca Team

Curb appeal is not just important during the day—night time curb appeal is just as critical. Having a welllit building shows that you care about the safety and security of your residents, and it will make your building appear more inviting to potential renters. Buyers too—according to statistics from Realcorp, improving the curb appeal of a property increases its chance of selling by 15 - 20%. These same statistics can be applied to the process of “selling” your property to potential renters. If the building does not look as if it is safe and well cared for, they’ll drive right by and never look back. In fact, the general rule of thumb is, it takes a mere 30 seconds for prospective renters to make a decision about your property. Use those 30 seconds wisely by maximizing your curb appeal. 40 www.canadianapartmentmagazine.ca

Marketing Invest in quality lighting You only get one chance to make a first impression—so what happens if that drive-by happens at night? Monitor and replace burned out bulbs promptly and regardless of where they are located on the property. Also, winter is the perfect time to put up additional light displays around trees or the front entrance. Lights add warmth and ambiance, a sense of safety and security, while they can also strategically light up the nicest features of the building. During the spring and summer months, decorating your trees with minimal white lighting livens up a property and adds a certain level of comfort and hominess to the building. Additionally, strategically placed ground lighting can highlight a well-cared for flower garden or impeccably pruned trees and shrubbery. Get creative with your signage When advertising your building at street level, consider a sign that really pops. Include your logo, address and contact

information in a colour and font that stand out. Don’t be afraid to let your creative side shine through while you work with a professional signage company. Having a memorable sign will make your property instantly recognizable and will separate you from competitors. Take your tech outdoors Technology is a marketer’s friend, and renters today want to know your building is up-to-date. QR Codes added to your street level signage can be scanned by a smart phone to lead potential tenants to more information about available suites, floor plans and even allow them to book an appointment for a viewing. Make it easy for passersby to access video tours of your building by simply snapping a photo of the QR Code on your sign. Really want to up-the-ante when it comes to tech? Consider creating a free app that can be downloaded to any Android smart phone or iPhone, allowing potential residents to have direct access to 3D floor plans, provide them with

instant information about suite pricing and availability and give them a quick and easy way to contact your company. Advertising your app on your curb signage shows that you are a property management company that thinks outside of the box. Better yet, once they become a tenant they can use the app to create service request tickets, pay rent and much more. An app will instantly add value to your property and benefit both current and potential tenants alike. By creating great curb appeal, you will make potential residents think of your property as more than just a building— they’ll think of it as their future home. RentSeeker.ca offers Landlords a host of online marketing services including: Listings & Syndication; Property Videos; Website Design & SEO; 3-D Floor Plans; Social Media Marketing; Custom Branded QR Codes; and more. For more information about RentSeeker.ca and our Apartment Marketing Services, contact us at: Contact@RentSeeker.ca.

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Winter 2014 41

Smart Ideas

The Right Touch

Install tubular skylights Depending on the height of the building, tubular skylights can help property managers increase curb appeal and attract new

A few small details can go a long way

tenants. These lights not only offer aesthetic

By Jill Bentham

daytime lighting and requires no electricity.

appeal, but also reduce energy costs. Tubular skylights have highly reflective interiors that are capable of carrying sunlight over 20 feet. This growing trend offers bright In addition, these skylights can be installed in areas where traditional equivalents are not always an option, such as bathrooms,

Replace your building’s address numbers

kitchens and hallways.

Many landlords and property managers are renovating and modernizing older buildings to appeal to a wider range of potential renters. One way to achieve a more modern look and increase building curb appeal is to update building numbers. Aluminium is a popular choice for its distinctly modern feel and visibility at street level. For consistency and continuity throughout the building, replace numbers on individual units as well.

Add planters to unit windows Landscaping at street level can add curb appeal to apartment properties at ground level, but if you’re looking to add a pop of colour to a neutral building, window planters are a good option. Window planters can be bolted directly through siding and into wall studs or fastened using supportive brackets. Choose low maintenance perennials and flowers that complement the colour of your building. Planters draw the eye up from street level, setting your building apart from those without “green” additions.

42 www.canadianapartmentmagazine.ca

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Ontario Mortgage Brokerage License No. 10514

BuIldINg MAINteNANce

A BuIldINg cAN’t MAINtAIN Itself. thAt’s where we coMe IN. Introducing Building Maintenance from Noble. We’ve got the right people and the right products to help you manage your property. No matter what type of building you run, you can rely on our expertise in construction, renovation and maintenance to help you find the products and solutions you need. We have an extensive inventory of leading brands, giving you a huge selection of parts and supplies. All with our 20 years of wholesale and distribution experience, and the convenience of our growing branch network and on-site delivery. Your job is challenging enough, that’s why you can count on us to deliver what you need, when you need it. we know your business. It’s our job.

PLUMBING | HVAC | HYDRONICS | INDUSTRIAL FIRE PROTECTION | BUILDING MAINTENANCE

noble.ca • 1-800-529-9805