Canada’s Most Widely Read Condominium Magazine
November 2021 • Vol. 36 #6
OUT IN THE COLD
PM#40063056
Insurance crisis hits the snow and ice management industry
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PA R T O F T H E
Management & HR Worker-friendly legislation proposed, avoiding staff deficits, and new resources set higher standards for communicating
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COMMITTED TO EXCELLENCE SINCE 1986
Contents 32 FEATURE 25 Snowed In By Rebecca Melnyk
16
MANAGEMENT & HUMAN RESOURCES
LEGAL
GOVERANCE
16 Ethics, Etiquette and Excellence
10 Potential Cost of the CMRAO’s Discipline Process
14 People: A Condominium’s Biggest Asset or Liability?
By James Davidson and Nancy Houle
By Marc Bhalla
20 Ontario Proposes Pro-Worker Labour Legislation
CONDO MARKET
By Greg Fraleigh
32 The Digital Transformation in Human Resources
By Flora Vineberg
By Vadim Koyen
42 A Delicate Balance By Shlomo Sharon 44 A Still-Valid COVID Excuse By Kirsten Dale
30 Changing Insurance Providers: Avoiding Gaps in Coverage By Kate (Letchford) Schoffer
IN EVERY ISSUE 6
Editor's Note
38
8
Ask the Expert
46
New & Notable
Carbon Cutters By Terry Bergen
CUSTOMER SERVICE Make sure condo owners feel heard and supported in their living community.
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EDITOR’S NOTE
Snowball Effect As the first snow of winter
blankets regions across Canada, snow and ice contractors are
readying themselves for the seasonal work ahead. But some are not. The global insurance market is affecting service providers everywhere, and in the snow and ice management sector, many smaller companies have been watching their years of hard work melt away due to rising insurance premiums. We take a look at what these companies are experiencing right now, why it’s happening, how it’s affecting condo corporations and the changes that Landscape Ontario and the Canadian Nursery Landscape Association are setting out to accomplish. With snow, comes a brand-new holiday season, in which the pandemic remains an unwelcome guest. One thing condo communities have come to realize over this year is the importance of not letting your guard down. Just when coronavirus seems to have subsided, a new variant of concern pops up on the news. The normalcy residents are striving to return to has been redundantly tested—a challenge for property managers and condo boards who must oversee that rules and regulations (in some cases, vaccine policies) are followed. All this on top of the many other non-COVID-related challenges. Our management and human resources issue addresses various obstacles and opportunities for condo managers. An article on page 16 looks at how proper communication among management is ever more important today, with the low down on new tools to help navigate the more difficult aspects of the profession, which the pandemic has indeed exacerbated. We also present articles on using digitalization to train and retain talent amid condo management and front-line staff deficits, how to make social media platforms transparent yet approachable for all, and how to help buildings survive climate change. Plus, our round-up of legal articles looks at the potential cost of the CMRAO’s discipline process, how Ontario’s newly proposed pro-worker labour legislation will affect the real estate industry, and what to consider when switching insurance providers. A glimmer of hope is that COVID cases in general are declining at a leisurely pace. There’s this saying, if you don’t know where you’re going, turn around and look how far you’ve come. From the looks of it, we’ve come pretty far since March 2020. As we approach the end of 2021, we would like to say thank you to all our expert contributors this year who shared with us their wisdom on this path forward. And to all our readers—happy holidays! Rebecca Melnyk Editor, CondoBusiness rebeccam@mediaedge.ca JTB_Condo_May_2020_FINAL.pdf
Associate Publisher Bryan Chong Editor Rebecca Melnyk Advertising Sales Bryan Chong Art Director Annette Carlucci Graphic Designer Thuy Huynh Production Manager Rachel Selbie Contributing Writers Christopher Alexander, Terry Bergen, Marc Bhalla, Kirsten Dale, James Davidson, Greg Fraleigh, Nancy Houle, Vadim Koyen, Kate (Letchford) Schoffer, Shlomo Sharon, Sam Soltani, Flora Vineberg. Digital Media Director Steven Chester Subscription Rates Canada: 1 year, $60*; 2 years, $110* Single Copy Sales: Canada: $10*. Elsewhere: $12 USA: $85 International: $110 *Plus applicable taxes Reprints: Requests for permission to reprint any portion of this magazine should be sent to info@mediaedge.ca. Circulation Department Adrian Hollard circulation@mediaedge.ca (416) 512-8186 ext. 234 CONDOBUSINESS is published six times a year by
President Kevin Brown Director & Group Publisher Sean Foley Accounting Anna Kantor 2001 Sheppard Avenue East Suite 500 Toronto, Ontario M2J 4Z8 (416) 512-8186 Fax: (416) 512-8344 e-mail: info@mediaedge.ca CONDOBUSINESS welcomes letters but accepts no responsibility for unsolicited manuscripts or photographs. Canadian Publications Mail Product Sales Agreement No. 40063056 ISSN 0849-6714 All contents copyright MediaEdge Communications Inc. Printed in Canada on recycled paper.
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A recent fire in a high-rise residential building in Toronto resulted in one death and left many other residents to suffer the effects of smoke inhalation. Fire departments in the Greater Toronto Area, especially in Toronto, have stepped up their enforcement and inspections as a result of a spate of other f ire events. Here, Sam Soltani, president of Trace Consulting, answers: How can condos ensure smoke control systems are functioning correctly?
8 CONDOBUSINESS | Part of the REMI Network
ASK THE EXPERT
A smoke control system consists of mechanical and electrical components, which manage the movement of smoke within a building during a fire event. These systems are designed to keep smoke out of certain areas of the building to protect occupants and first responders when evacuating. Smoke control systems vary from building to building depending on their age and construction, but are usually composed of pressurization fans and a series of ancillary devices like automatic door openers or a relay to disable the make-up air units. These devices are all connected to the fire panel and operate automatically when the system is in an alarm state. The Ontario and National Fire Codes require regular testing of the smoke control systems in a building in order to ensure that they are operating properly in accordance with operation and test procedures designed by a professional engineer or architect. Buildings are required to maintain records of these tests to prove compliance. If documentation does not meet the code requirements, buildings are served with an inspection order, with a very tight timeline (about one month) to resolve the outstanding issues. In addition to regulatory compliance, formal specifications for testing and maintenance procedures can also be used by property managers when tendering fire alarm and HVAC service contracts to ensure the contractors are submitting competitive prices on an established scope of work. Steps need to be taken to ensure smoke control systems are functioning correctly. The first and most critical step is for corporations to determine whether they have a smoke control system maintenance and testing procedure document in place. Most condominiums do not have one. If one has not been prepared for your condominium, a professional engineer or architect must be retained to review your building system and building drawings to engineer a Smoke Control Maintenance and Testing Procedure. This will allow the engineer to create a specific plan tailored to the systems that exist in the building. Every building is
designed differently; therefore, it is crucial that the procedures prepared are tailored. The maintenance and testing outlined within these procedures must be performed on a periodic basis as outlined within the procedures. Any deficiencies identified during the maintenance and testing must be addressed as soon as possible, and rectified. F o ll o w i n g t h e p r o c e d u r e s a n d maintaining logs of all testing performed
will ensure that all smoke control equipment within the building is operating as designed and that the building’s smoke control system remains effective if and when required. 1 Sam Soltani is the president of Trace Consulting Group Ltd, a Toronto-based multi-disciplinary consulting engineering firm.
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Potential Cost of the CMRAO’s Discipline Process According to its website, the Condominium Management Regulatory Authority of
BY JAMES DAVIDSON AND NANCY HOULE
Ontario (CMRAO) is a regulatory body providing oversight of condo managers and management companies. We normally think of the CMRAO as the body that oversees the licensing of Ontario’s condominium property managers. But the CMRAO’s mandate also includes education, training, discipline and enforcement. In other words, there’s more to the CMRAO than just licensing. The CMRAO’s Enforcement Rights In a recent case, two condominium corporations complained to the CMRAO about a manager’s failure to turn over records following termination of the
management contract. The failure to turn over records was a specific violation of Section 5 4 of the Condominium Management Services Act, 2015 (CMSA) and Section 35 of Regulation 123/17 (the general regulation under the CMSA). Quite separate and apart from any consideration of disciplinary procedures, the CMRAO brought a court application against the manager; and the CMRAO successfully obtained an order requiring the manager to comply with a manager’s obligations under Section 54 of the CMSA. The court also
10 CONDOBUSINESS | Part of the REMI Network
ordered the manager to pay costs of $7500 to the CMRAO. The CMRAO’s authority to make this sort of court application exists under Section 67(1) of the CMSA, which reads as follows: ‘If it appears to the director (of the CMRAO) that a person is not complying with this Act or the regulations or an order made under this Act, the director may apply to the Superior Court of Justice for an order directing that person to comply, and, upon the application, the court may make the order that the court thinks fit.”
LEGAL
So, the bottom line is that the CMRAO can be a powerful enforcement alternative for anyone (for instance, a condominium corporation) who is concerned about a manager’s failure to comply with the CMSA. The Potential Cost of the CMRAO’s Discipline Process The CMR AO also has the authority, in an appropriate case, to discipline a condominium manager. The CMSA and regulations spell out the mandate of the CMRAO to receive complaints and to take disciplinary procedures. Among other things, the CMRAO may: • At tempt to mediate or resolve a complaint. • Give the manager a written warning. • Require a manager to take further educational courses. • Require a principal condominium manager to take further educational courses. • Refer a matter, in whole or in part, to the CMRAO discipline committee. • Suspend or revoke a manager’s license (with prior notice and the right to a hearing). Depending upon the circumstances, a discipline process, particularly a hearing by the discipline commit tee, could become very expensive and sometimes quite lengthy, involving law yers and expert witnesses. This, in turn, raises the following questions: Who would be responsible to cover the manager’s costs for the hearing? Normally, a complainant would not be ordered to pay such costs. And the CMRAO also won’t normally be ordered to pay such costs. Is this cost simply part of a manager’s “cost of doing business”? Let’s take a simple example: Mary Smith is managing a 10 0 - unit high rise, Condominium Corporation No. 123. One of the owners in the condominium, Fred Jones, makes several complaints about Mary to the CMRAO. Some of the complaints are very serious, including allegations of unprofessional conduct involving alleged discrimination and harassment. The CMRAO is not able to “get to the bottom” of the complaints. The CMRAO concludes that the complaints are serious enough to merit a hearing by the discipline committee. The committee holds
a hearing and ultimately determines that the complaints are without merit, and orders no discipline against Mary. However, the costs for Mary’s defence total $100,000. The management contract (between Mary’s principal condominium manager and the condominium corporation) includes a typical indemnification provision, whereby the condo corporation agrees to indemnify the manager against costs incurred as a result of claims, provided the claims don’t result from the manager’s negligence or misconduct. Does that indemnification provision apply? Is the condo corporation obligated to cover the costs of Mary’s discipline hearing? And of course this raises some further questions: Are these costs covered by the manager’s professional (E & O) liability insurance or by the condo corporation’s insurance? And is the manager even a named insured under the condo corporation’s insurance? According to our enquiries, the answers to these questions may, in many cases, be unclear. So, our recommendations are as follows:
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F ir s t a n d fo re m o s t : A sk t h e insurers involved—the manager’s insurer and the condo corporation’s insurer— whether or not they would cover the defence costs in the event of a hearing by the CMRAO discipline committee. If not, you might also ask whether or not it is possible to obtain such insurance for an added premium.
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Then, with the b enefit of that “i n su r a n c e i nfo r m a t i o n”, a n d after a good discussion between the condo corporation and the manager about responsibilit y for such costs, you can hopefully make the appropriate revisions to the indemnification provision in the management contract so that the responsibility is clear. When i t c o m e s t o t h e C M R A O, there is more to think about than just licensing. 1 James Davidson and Nancy Houle are partners at Davidson Houle Allen LLP C o n d o m i n i u m L a w. d h a c o n d o l a w. cadhacondolaw.ca
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MOVING AHEAD AT MJW It’s time to look forward at the MJW Team (divisions of Metro Jet Wash Corporation). After one of the most disruptive years on record, the waste equipment cleaning specialist is eager to enter 2022 with fresh insights and renewed optimism. “The property management community hasn’t had it easy over the last year and a half,” says Linda Passarelli, Office Manager with the MJW Team. “We all had to adapt in some way or another, and now the most important thing is how we’re moving ahead.” For Passarelli and the team at MJW, one of the biggest takeaways from the global pandemic has been the need to double down on workplace health and safety. “We’ve always had very strict rules when it came to cleaning, wearing personal protective equipment, and following hygiene protocols on-site because our jobs take us to some of the dirtiest places in buildings and facilities,” she notes. “That being said, the pandemic reinforced how important those measures were to keeping everyone safe, including the residents and property management teams we encounter every day.” Certainly, adds Brian De Carli, Vice President with MJW,
““The MJW Team has always been very strict and has always strongly enforced health and safety measures prior. We’re definitely evolving more and more each day as a company and not stopping now.” ADAPTING TO CLIENTS Health and safety considerations have become a chief focus for property management teams. As a result, MJW has seen a surge in demand for its power washing and cleaning services, be it for compactors, chutes, drains, catch basins, or underground garages and parking lots. Moreover, says MJW Team Division Lead Andrew De Bartolo, clients are requesting more extensive and frequent cleanings in order to stay ahead of health risks: “More and more, we’re being asked to go in there and we’re disinfecting chute doors and flaps on every floor just to give occupants that extra level of protection.” As Metro Jet Vac Division Lead Cassandra Mammoliti notes, “When things are visibly clean, it makes everybody feel that the environment is safer and more comfortable to live in. It also gives property managers (PMs) that extra peace of mind, so it’s a win for all.”
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For added peace of mind, MJW has rolled out several promotions and campaigns aimed at helping property management staff tackle their enhanced hygiene obligations. Today, the corporation offers yearly cleaning and maintenance packages, cleaning bundles, and discount offers for new and current customers to make its cleaning services as worry-free and cost-effective for its clients. “PMs have got enough to deal with. There’s so much on their plates managing these buildings, so if we could somehow cut a good portion of that and take care of it and then make life easy for them, then that’s our goal,” says De Carli. HYBRID COMMUNICATIONS Face-to-face customers interactions aren’t over, but business communications aren’t likely to return to “normal” any time soon. With many property teams still split between on-site and remote offices, service providers like MJW have adapted to a more “hybrid” approach to customer contact. “Before the pandemic, we were mostly communicating with property managers in person. Now, though, a lot of those people are working digitally, so we’ve also started doing things a lot more digitally or over the phone while trying to keep that personal touch wherever possible,” says De Bartolo. Nevertheless, there is a sense that the work-fromhome life is growing thin among property managers and their staff who have spent a bulk of their time offsite in 2021 and are anxious to get back into action. “A lot of people want to get back into the office or have done so already, so we’re working with a mix of digital and in-person communications,” he adds. “The priority on our end is to recognize how our customers prefer to interact and make it as easy as possible for them to do so.”
continually looking forward and asking ourselves how we can better serve our customers? How can we make the job easier for a property manager? Like a lot of companies out there, it’s all about evolving and continually learning how we can be better.” Adds Passarelli: “We’re excited for what’s ahead.” Learn more about The MJW Team (divisions of Metro Jet Wash Corporation) at www.mjwcanada.ca or contact the team directly at 416-741-3999 or toll free at 1-844-669-3999.
BUILDING MOMENTUM 2020 and 2021 have kept the MJW Team on its toes. That’s to be expected for a team that specializes in keeping people’s homes, offices, and working spaces clean. And while the job has been far from easy, Mammoliti says it helps to have a solid crew: “We’re lucky in that we have an amazing team that communicates well and has remained positive throughout this whole crisis. So, while it has been one of our busiest years, we’ve been able to pull together and be there for our clients.” As for what comes next, De Bartolo adds, “We’re
www.REMInetwork.com | November 2021 13
People: A Condominium’s Biggest Asset or Liability? While much attention is given to f inancial statements, one of
BY MARC BHALLA
the biggest factors surrounding the financial success of a condominium is the people who service it.
They make
all the difference when it comes to the cost and path needed to address conflict. It is not just about qualification or compensation amounts, either. In sports, it is commonly referred to as an athlete’s “intangibles”—things that they bring to the game that cannot be easily documented on a scorecard. In a condominium context, it is something that cannot be listed on a status certificate.
14 CONDOBUSINESS | Part of the REMI Network
GOVERNANCE
This exists in many ways and fundamentally as cold and self-centred. The president impacts the culture of a condominium perceived to be drunk on power, a monarch community. A superintendent with a friendly with little concern for peasant residents. smile. A cleaner who greets the community’s A condominium manager glued to their children as they return from school. A security phone, missing all who are around as they guard who does his or her part to prevent the come and go. A service provider who clearly condominium from being one where nobody has regard only for those who sign their knows your name. cheques. It is the little interactions (or lack There is a delicate balance to be struck. thereof) that breed distrust, resentment Personal connections can sometimes go too and feelings of exclusion that build up to far. You need to be careful about perceptions become quite costly. forming that some community members When we consider the human resources of are favoured over others. A friendly greeting a condominium, we should not forget about can evolve into extended dialogues that the humanity of a condominium. That is, risk one’s being distracted from performing how people are treated. The nature of casual their job. The inevitable circulation of gossip interactions. The little things that add up over has to be managed, too. Front-line faces of time to make a big difference. It can be all too condominiums who find themselves forming easy to shrug off or take for granted the way friendly relations have to be cautious about people are treated because we cannot easily getting dragged into the politics of the calculate the dollar value of being nice. community or inadvertently crossing a line. Consider the difference though when you There is a delicate balance to be struck, but have to deliver bad news or inconvenience those who strike it are the most valuable people. While it may no longer be a social asset a condominium can have. obligation these days to hold an elevator On the other end of the spectrum is a door open for others, little token gestures of DelProperty_Condo_March_2018_torevise.pdf 1 2018-04-13 2:44 PM condominium serviced by those viewed kindness, compassion and thoughtfulness go
Marc Bhalla, LL.M. (DR), C.Med, C.Arb is a mediator and arbitrator. He can be reached at mbhalla@elia.org.
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a long way. I see this often when mediating condominium disputes. While it is common practice to have each party participating in a mediation confirm at the outset that they are there to collaborate, in good faith, to try to work through a problem, perceptions brought to the table about the intentions, interests and goals of others can significantly impact chances of success with the process. Authenticity is needed for an apology to be effective. Good rapport is necessary for a commitment to make a change in the future to be taken seriously. This is not to say that everyone within a condominium community should feel that their job is that of a WalMart greeter. It is simply to say that these intangibles add up to be worth something. Particularly when it comes to proactively managing conflict and preventing dispute escalation, building up good will beforehand can pay off. 1
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www.REMInetwork.com | November 2021 15
Ethics, Etiquette and Excellence
New Resources Set Higher Standards For Communicating
W hen the Condominium Authority of Ontario introduced a set of mandatory forms to be distributed
BY GREG FRALEIGH
to
owners of condominium units, property management offices who hadn’t thought to include a cover letter in their mailings and electronic distribution began receiving a number of calls.
16 CONDOBUSINESS | Part of the REMI Network
MANAGEMENT “What is this form for?” callers would ask. “Is there something I need to do?” Without a proper written explanation to accompany the documents, the New Owner Information Certificate (for example) presented itself as a somewhat difficult to understand housewarming gift. With sparse information included in the form itself explaining the purpose of what was being received, owners were often confused—especially in the instance of first-time condominium owners. The capacity to create effective and wellwritten business communications — letters, emails, reports and minutes — is lacking in many new managers, and even in some experienced ones. In a digital age where the craft of communication is limited to email bursts or social media blurbs, adeptness at explanation is a field requiring additional honing. To be able to both explain and interpret critical information is a fundamental skill set needed from anyone considering a career in property management. The role of a property manager is so diverse that, while an experienced manager may have a perfect understanding of the mechanical and physical aspects of the building, explaining the hierarchy of control
or aspects of the declaration limiting the corporation’s responsibility may come with tangible difficulty. As of November 1, 20 21, anyone considering a career in proper t y management will be required to complete the Condominium Management Regulatory Authority of Ontario’s (CMRAO) Excellence in Condominium Management course. This course will introduce some key elements to prospective managers and highlight the importance of working with an ethical mindset. T he course is devoted to opening the door to prospective managers so that they have a basic understanding of the requirements of the role, prior to b e ginning the c ourse pro p er. In addition, more focus has now been placed on the vast array of relationships that need managing as part of a condo corporation’s governance. Each of these relationships requires a slightly different skew when communicating. Successful management companies integrate a standard model for the presentation of monthly manager and financial reports, with an expectation that
communications are written in plain, easy-todigest language. In a world circumvented by spellcheck, there is no excuse for poorly worded, disjointed emails. Likewise, lengthy and arduous pieces of detailed explanation can be too bulky to be properly absorbed when read, or may get pushed aside completely. One of the most important relationships is with our boards of directors, with whom we converse daily in the course of providing support and maintenance review. While the CAO’s initiation of the valuable ‘Director Training’ courses has proved substantially valuable, it is impossible to role-play all potential scenarios which come their way. For each new situation which arises, proper presentation of the problem at hand must be provided, together with clear commentary regarding possible solutions. This is primarily a people business, with the property itself as the common ground. It also requires 24/7 commitment, with the reality being that wages are often in no way commensurate with the responsibility and hours devoted to the role. It is important to understand that anyone entering the field needs to be willing to work on their
Experience Counts Although the name has changed - the company, our services and our dedication to our valued clients stays the same. Take advantage of proven, comprehensive services and a dedicated team that is always ready to make a difference. As the largest condominium property manager in Ontario, we help to create great communities by focusing on the needs of owners and residents with a level of expertise that is second-to-none.
For more information, contact us today Sandro J. Zuliani | szuliani@crossbridgecs.com | 416-354-1926
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LEGAL
“Anyone entering the field needs to be willing to work on their interpersonal skills.” inter p er son al sk ills. In m any ways , people skills are more valuable than academic credibility when it comes to longevity in the role. Good property managers take great pride in their professionalism when ensuring boards and owners have the tools they need to make informed decisions to enhance and improve quality of life and the assets of their condominium corporation. Established management companies rely heavily on an educated and knowledgeable support team who also understand the complexities of the Condo Act. It is important that all employees working in property management share a desire to learn. This is an industry which demands
continual growth, and the evolution of the CMRAO courses are a reflection of that. T he C M R AO’s C o n d o minium Management - Relationship Building course introduced as of November 1 addresses some of the more challenging aspects of property management that previously had not been dealt with. Now, prospective managers are provided a toolbox to deal with issues such as dealing with the sudden death of a resident, conflict resolution, and mental health concerns. Additionally, they now learn the fundamentals of etiquette in communication: h ow to c o m m u n i c a te c l e a r l y a n d concisely, and importantly — how to adapt communication strategies dependent on
the audience. It is not enough to send a chargeback letter demanding payment for reimbursement of costs incurred from a contractor — the owners deserve to understand why reimbursement is being requested, where it states within the declaration that the cost is their responsibility, when that payment is due, and what the consequences are if they refuse to pay. When communication fails completely, the results can be tragic. Ninety-eight lives were lost in the collapse of the Champlain Towers South condominium in Surfside, Florida — lives that could potentially have been saved if the board of directors had fully comprehended the urgency behind the engineering reports provided to them. Although occurrences such as the Champlain Towers collapse are rare, the disaster shows clearly the importance of establishing clarity and assertiveness when conveying important information. Managers and executives have a duty to keep informed regarding their industry and to be ever cognizant of their adeptness in communication, whether it be by letter, email or report. Clarity in communication can save time and confusion — affordable, cloudbased writing assistants such as Grammarly can be particularly helpful to catch small grammar mistakes, ensuring that messages are delivered with clear intent. It’s okay to run a spellcheck on that doc before you email it or to have a coworker take a look. Ask yourself, “If I knew absolutely nothing about condominiums, would this letter still make sense?” As author George Bernard Shaw once said, “The single biggest problem in communication is the illusion that it has taken place.” You can save the phone calls, emails and headache in the office by getting it right the first time. 1 Greg Fraleigh is president of The Enfield Group Inc.
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NADLAN-HARRIS
PROPERTY MANAGEMENT INC. 500 Champagne Drive, Toronto, ON M3J 2T9
AN ACMO 2000 COMPANY
We are a team of dedicated experts, specializing in professional property management of: • High-Rise/Low-Rise Condominiums • Residential/Commercial/Industrial • Town Home Condominiums
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www.nadlan-harris.com
Ontario Proposes Pro-Worker Labour Legislation As a result of the COVID-19 pandemic, Ontario’s labour market
BY FLORA VINEBERG
experienced significant disruptions and a permanently shifted work landscape. Employers grapple with redef ined work locations, rapidly changing public health standards, and the need for economic revitalization.
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LEGAL
To aid the province’s recovery scheme, the Ontario government introduced Bill 27: the Working for Workers Act, on October 25, 2021. If passed, this Act will amend numerous pieces of legislation including the Employment Standards Act, 2000 (ESA), in efforts to improve protection and support for Ontario’s workers while maintaining a competitive advantage in attracting leading global talent. Disconnecting From Work Policy Significantly, Bill 27 amends the ESA by introducing a requirement for employers with 25 or more employees as of January 1 of any year to ensure, prior to March 1 of that year, that they institute a written policy for all employees with respect to disconnecting from work. Disconnecting from work is defined as “not engaging in workrelated communications, including emails, telephone calls, video calls, or the sending or reviewing of other messages, to be free from the performance of work.” The policy must include the date it was prepared and the date(s) any changes were made to it. Employers will be required to provide a copy to each employee within 30 days of preparing this policy, or, if an existing policy is amended, within 30 days of any change(s). The same 30-day window applies to providing new employees with the policy as well. Notably, employers will be required to retain copies of every policy for three years after the policy ceases to be in effect. While the current draft of Bill 27 does not prescribe any mandatory content for such policies, it indicates forthcoming regulations that will prescribe certain elements that must be contained in the policy. Bill 27 has passed first reading, and is expected to receive royal assent and be passed into law. In terms of compliance, an employer would have six months from that date (and not March 1) to put a policy in place. The date the employer would use for assessing whether it has 25 or more employees would be the January 1 preceding the date that is six months after the day the legislation receives royal assent. The proposed legislation stems from recommendations m a d e b y t h e O n t a r i o W o r k fo r c e R e c o v e r y A d v i s o r y Commit tee (OW R AC), which consulted with a range of community stakeholders including workers, employers, and unions. The OWRAC was established this summer to help position the province as “the best place in North America to recruit, retain, and reward workers.”
off hours, and across a wide array of physical settings. While some oversight and management can be done remotely and within ‘reasonable’ working hours—for example, conducting virtual property oversight—the nature of each project may inherently require on-site staff, whether it be facility cleaners, property managers and/or maintenance staff, in order to ensure safety, compliance, and efficiency. In addition, employees desperate to keep their jobs amid such economic uncertainty are intent on being nimble and available at all hours to respond to employer demands across all sectors. Technological advancements have more deeply entrenched the expectation of meeting real-time demands, thereby undermining the notion of a “typical work day” in sectors that require aroundthe-clock commitments. As public health guidance around work landscapes (both physical and substantive) continues to shift, employer flexibility and adaptability to different forms, modes or methods of property management and oversight, predicated on transparency, will be key. Bill 27 and its regulations have not passed into law, so employers cannot yet know the scope or extent of their obligations in respect of some of the proposed changes to the ESA or what this means for their workforces. Many fear this legislation, instead of helping workers and/ or promoting better work-life balance, may create a two tiered workforce by which some employees would choose to disengage according to the policy in place. Others could remain constantly available, hungry for additional work and intent on earning overtime pay, being considered for promotions and/or bonuses. The inadvertent prospect of reputational or financial punishment for those employees abiding by the policy could be significant. The extent to which it is even plausible for the real estate and property management industries to fully disconnect in compliance with “regular” work days remains to be determined by the scope outlined in forthcoming regulations. Important questions remain around implementation and enforcement. It may require these sectors to reconceptualize the ways in which management and oversight are carried out. This includes the possibility of streamlining processes to enhance efficiencies (including advanced technology), and/or the reconfiguration of tasks and the diversification of workforce composition to ensure work is completed appropriately while respecting employees’ rights—without reprisal. 1
Implications For The Real Estate Industry The real estate and property management industries may face particular hurdles with respect to implementing the proposed disconnecting from work policy. In order to oversee and manage projects with minimal disruption to commercial or residential properties, the flow of work or to people’s lives, employees in these industries are typically required to respond to work demands in real-time, at
Flora Vineberg is a lawyer at SpringLaw. She specializes in labour and employment law, with a specific focus on sexual assault, harassment and human rights litigation, and workplace investigations. Employing a client- centred and trauma informed approach, Flora’s background in both criminal and civil law enables her to represent clients from all walks of life with compassion, tenacity and focus. She can be reached at fvineberg@springlaw.ca www.springlaw.ca.
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CMRAO RAISES THE BAR FOR CONDOMINIUM MANAGEMENT LICENSING On November 1, 2017, Ontario introduced mandatory licensing for all current and prospective condominium managers, as set out in new legislation introduced to protect condominium consumers. Fastforward to today, and the Condominium Management Regulatory Authority of Ontario (CMRAO) is taking the province’s licensing training and education to the next level. “The educational path to professional condominium management in this province is about to evolve in several important ways,” says Sandy Vizely, Deputy Registrar of the CMRAO. “These changes will help shape the new generation of condominium managers who will be well-prepared to support the massive growth in Ontario’s condominium industry.” The changes in question are four years in the making. When mandatory licensing was first brought into effect, the Minister of Government and Consumer Services identified specific education requirements for a General Licence and did not set education requirements for a Limited Licence. The Minister also set November 1, 2021, as the date when the authority for defining education requirements would transfer to the Registrar of the CMRAO, which the CMRAO took as an opportunity to take industry training to the next level. "We knew that developing an education program would be challenging, but we also knew it was important to invest in extensive consultations with the condominium management community in order to develop this program” says Sandy Vizely. “What we discovered is that there were areas to expand and update , and so we sat down with sector stakeholders and experts to find ways of filling certain gaps.” The first step in the process was to develop and publish a condominium manager competency profile – the first of its kind in Ontario. From there, the
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history of offering non-post-secondary, continuous professional learning and corporate training across multiple areas of expertise, including Real Estate education and Property Management. Our partnership with CMRAO will benefit learners as they will be taught, trained and have access to an up-to-date curriculum designed to meet the needs of the growing condominium management market."
CMRAO worked with a group of industry subject matter experts to develop a course curriculum that addresses the 79 core competencies outlined in the competency profile. Launched on November 1, the CMRAO’s education program includes a mandatory course that must be completed before receiving a Limited Licence, and an additional five courses that must be completed to qualify for a General Licence from the CMRAO. Each course is designed to address all facets of working in today's condominium management sector, and include: • Excellence in Condominium Management • Condominium Management – Law • Condominium Management – Relationship Building • Condominium Management – Building Operations and Maintenance • Condominium Management – Financials • Condominium Management – Operational Quality ”The curriculum we have designed for condominium managers is informed by feedback we heard directly from the sector and addresses areas that experienced condominium managers felt were most important when they first started their careers”, says Sandy Vizely. “We feel that the combination of in-class learning coupled with on-the-job experience will ensure that managers clearly understand their role and obligations, which ultimately serves to protect consumers.” The courses for the General Licence are being developed by Humber College, the CMRAO’s education partner. In its April 2021 partnership announcement, Rani Dhaliwal, Senior Vice-President, Strategic Partnerships, Humber College, said the College was eager to help the CMRAO implement new standards for Ontario’s condominium management leaders, noting, "Humber has a long
BEGINNING THE JOURNEY The first step in CMRAO’s new curriculum is its Excellence in Condominium Management course, a 16-hour course with a final proctored exam that potential condominium managers must pass to receive their Limited Licence. The goal of this introductory course is not only to equip condominium managers with a foundational knowledge of the condominium industry and a firm understanding of the role of a condominium manager in Ontario, but also to provide a real-world view of life as a condominium manager in an ever-shifting sector. The Excellence in Condominium Management course tackles numerous core competencies spanning customer service to time management, financial statements to legal documents, operating procedures to board relations, building fundamentals, and beyond. “This whole curriculum was designed from the ground up to elevate the profession,” says Sandy Vizely. “There are a lot of ethical, legal, and leadership responsibilities that come with the job, and it’s not a profession you can just simply walk into anymore.” The Excellence in Condominium Management course can be completed online and includes live instructor-led sessions with facilitators and a final exam. Completing this initial course satisfies the education requirements for a Limited Licence, allowing people to begin working onsite and gaining experience while they move through the next five courses. And while the CMRAO acknowledges that its new curriculum asks more of Ontario's condominium managers than before, it is confident that its curriculum will benefit the industry. “It is an extra step, but at the end of the day, it’s about ensuring the best consumer protection for Ontario condominium owners,” says Sandy Vizely, adding, “We want condominium management stakeholders and Ontario condominium residents to know that when people earn a General Licence through the CMRAO, that they've met a number of high standards related to their knowledge, skills, and character.” Learn more about the CMRAO’s Excellence in Condo Management course or contact the CMRAO for more information at info@cmrao.ca or by phone at 1-866-888-5426.
MANAGEMENT FEATURE
SNOWED IN Contractors working in the snow and ice BY REBECCA MELNYK management industry are facing a blizzard of challenges on the insurance side, or what many are calling a crisis. New legislation and proposed policies, including a first-of-its-kind standard, offer some light.
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TECHNOLOGY FEATURE
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FEATURE
A hard global insurance market has been affecting all types of service providers across Canada, but one in particular is feeling the chill and facing a crisis point, the effects of which will trickle down to private property owners and condo corporations. Two years ago, Tony DiGiovanni, executive director of Landscape Ontario, began receiving weekly phone calls from snow and ice contractors. Their insurance premiums were escalating, and some, who spent years building their business, couldn’t obtain any insurance at all. “It started off at 25 per cent, then you’d hear stories about 40 per cent, then 600 per cent,” he says. “It’s a crisis not just for members, but eventually, if this doesn’t get solved, who is going to keep Ontario safe? It will affect everybody.” There is a confluence of factors, but at the heart of this situation is a heightened amount of slip-and-fall claims. Fewer insurance companies are willing to insure risky businesses now, but with snow contractors, it's largely due to this particular liability that property owners and managers pass on to the contractor through the Occupiers’ Liability Act (OLA). Because snow and ice contractors assume control over a property during a contract, they are deemed at fault if someone is injured from a slip-and-fall. Terr y Nicholson, vice - president of Clintar L andscape Management and chair of Landscape Ontario’s Snow and Ice Sector Group, says the costs to fight these claims are so expensive that insurance companies are settling them before they reach the court. “Because there have been so many claims coming in year after year, the rates are getting out of control; they’re not sustainable,” he says. “In some cases, contractors are paying 15 per cent of their revenue for just liability insurance.” David Amadori, senior vice-president of commercial practice at Marsh Canada, provides insurance to the industry. He says snow and ice contractors have always faced insurance challenges, even in the best of times. But with commercial insurance premiums rising in general, this class is “firmly on the outside looking in when finding favour with insurers.” He also says condos are among the riskiest types of snow removal to engage with when it comes to frequency of claims. “In over 10 years, I’ve seen more slip -and-falls at condo corporations than I do at some large retail locations,” he says. As snow contractors face insurance woes, condo corporations are equally challenged. Owners who slip-and-fall on their condo property are consequently suing themselves through any claims.
“The condo corporation policy will pay for that, but ultimately, when that happens, condo insurance grows more expensive, and the maintenance fees rise,” says Amadori. “It’s a self-defeating cycle.” But while condo corporations have those fees at their disposal, contractors can’t blend those costs into their operations, he adds. To raise their own fees could mean losing a client who might look for business elsewhere. Behind such incessant claims, at condos or other properties, is a heightened environment of contingency lawyers who offer free representation to claimants, with no recourse if a claim goes away, says Amadori. On the other hand, legal costs must still be incurred by contractors who are forced to defend themselves—costs that are paid for by the contractor’s chosen insurance company. “Even a victory for a contractor in the current environment costs them money, and a loss for the claimant costs them zero,” he says. Many claims, in general, tend to be settled for $20,000 to $30,000, in place of lengthy and costly legal battles, notes DiGiovanni. “The bigger companies are growing bigger and the little companies are being squeezed out because they can’t afford it,” he says. In turn, costs must be passed down to condo corporations, with some property managers facing a smaller pool of snow contractors as the winter season arrives. Val Khomenko, principal condominium manager for Regional Group in Ottawa, says the crisis of insurance premiums in the snow removal industry is directly affecting the finances of condominiums and properties, as buildings also face their own insurance crises. “Smaller contractors are folding and closing shop, left and right. Fees are certainly being raised,” he says. “One of the main complaints we are also getting is the lack of labour force, which naturally affects the deliverables and the service level. Colleagues are reporting similar instances.” He says fewer small snow removal companies combined with higher premiums for all companies creates “a disastrous recipe of significant disadvantage to properties,” which not only use the services of these small contractors, but also can’t afford large increases in contracted maintenance.
“In over 10 years, I’ve seen more slip-and-falls at condo corporations than I do at some large retail locations.”
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FEATURE
Ploughing Away Frivolous Claims Landscape Ontario’s Snow and Ice Management Sector Group has been working on a number of fronts to help keep contractors in business. In January 2021, Bill 118—The Occupiers' Liability Amendment Act, 2020— came into effect in Ontario. The private member’s bill, introduced by Parry Sound-Muskoka MPP Norm Miller, reduced the statute of limitations for claims arising from snow or ice-related injuries from two years to 60 days. The idea is that it will keep frivolous claims at bay. “Our members were seeing the pattern just before the two years were up—that’s when they’d get the claim,” says DiGiovanni. “Someone was banking on the fact the data would be lost.” With incidents fresh in mind, contractors can now account for details that could otherwise go missing over time, such as the weather, how much salt was used, and the type of footwear one was wearing during a fall. Results of this amended legislation will likely surface next summer—after the 2021-2022 snow removal season, which typically lasts until mid-April when contracts end. Amadori says by mid-June, that 60-day window will have expired, and insurers who had snow removal liability on their books should have an understanding of the exposure that took place. “My expectation is that the data set that exists after this winter could be quite compelling,” he says. “It could materially reduce the amount of slip-and-falls that have been brought
“The bigger companies are growing bigger and the little companies are being squeezed out because they can’t afford it.”
forth towards snow removal contractors, ultimately reduce the frequency of claims and, in turn, reduce the total costs associated with insuring this sector. “In addition, the erosion of risk associated with the industry from an insurer perspective could attract more insurance capital to the sector creating downward pressure on rates with more options for contractors.” A First-Of-Its-Kind Standard and New Models As a shield from liability, the snow and ice management industr y developed a standard form contract to clearly delineate the scope of work. It also continues to educate its
“In some cases, contractors are paying
15 per cent of their revenue for just liability insurance.”
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FEATURE
“It’s a crisis not just for members,
but eventually, if this doesn’t get solved, who is going to keep Ontario safe? It will affect everybody.” members about the value of documentation. Amadori points out there is also more technology now that allows for time-stamped, concrete data to help support the defense of a contractor in the case of a frivolous claim. A self-insurance retention model, inspired by the elevator industry’s own experience with frequent claims, is another option. About 12 large snow contractors who couldn’t obtain insurance are pooling their insurance premium to cover their initial number of claims, and are more able to get catastrophe insurance. What isn’t spent from the investment over a period of five years is paid back. “With that model, they're actually working to be better companies, as well,” says DiGiovanni. “Now, the claims come
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under their premium, so naturally, they have to be more inclined to look at all the details: doing the best job they can from a risk management perspective.” More recently, the group of contractors who started the self— insured retention model has approached the Canadian Standards Association (CSA) to develop a nationally recognized standard of care for snow and ice operations. “Often what members have told me over the years is that judges don’t know what is a good standard to compare things to; they don’t have data so they don’t understand,” says DiGiovanni. “How do you solve a claim when there is no standard to judge that claim on?” The multi-stakeholder collaboration, supported by Landscape Ontario and the Canadian Nursery Landscape Association, could
FEATURE take over a year to publish, but it would serve as proof, showing a contractor fulfilled a job under certain criteria and met the industry standard. Through a model in New Hampshire, businesses that are part of the Green Snow Pro accreditation program are protected from liability unless they are negligent. The idea is that by using less salt, a known groundwater contaminant, there is leeway for contractors who prove they have properly completed their job. Landscape Ontario is pursuing this model, having joined the Freshwater Roundtable. The alliance, with members from conservation authorities, environmental protection groups, proper t y owners and managers, multiple levels of government, legal representatives, insurers and contractors, is proposing legislation that will make it mandatory for snow operators to become Smart about Salt (SAS) accredited and, thus, protected from liability unless negligent. “We will know in the next six months if that will go anywhere,” says DiGiovanni. Salt has a questionable history as it stands. Not only does it harm freshwater systems, but it can be tracked through condo buildings, causing damage and higher maintenance costs. Nicholson says it's used far too liberally. “But it’s our only defense,” he says. “Most of us are landscapers and we take care of green things first. We know that salt is damaging and we want to reduce the impact we’re having on the environment, but because of the fear of ending up in litigation, we tend to over apply.”
“My expectation is that the data set that exists after this winter could be quite compelling.”
Without giving salt the sufficient time it requires to work properly, he says it becomes more of a traction aid than a de-icer. If change doesn’t come through the OLA, then the exorbitant amounts of salt may likely never cease. What is raising financial alarms is also cause for environmental advocacy. At the crux of these concerns is the issue of human welfare. “We’re at hospitals, schools, government buildings, recreational centres, nursing homes, condos, retail centres and other workplaces—private contractors do most of the snow removal in the province,” says Nicholson. “If they are leaving the industry, and insurance companies aren’t insuring new companies, then ultimately, it affects the safety of everyone in the province.” 1
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Changing Insurance Providers: Avoiding Gaps in Coverage Condo corporations are legally required to maintain property insurance and various types of liability insurance. In a hard
BY KATE (LETCHFORD) SCHOFFER
insurance market, with increasing premiums,
deductibles and renewal denials, many condo corporations are switching insurance providers. There are many reasons why switching providers is in the best interests of the condo, but there may be hidden risks. Unbeknownst to many policyholders, changing insurers can create a gap in coverage that can expose
the corporation to significant financial consequences. Many condo corporations hold “claims made” insurance policies. Generally, claims made policies require that the claim be made
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and reported to the insurer within the policy term. Claims made policies also generally exclude coverage for any claim arising from an insurable event that occurred prior to the policy term. This type of provision is often
LEGAL
referred to as a “prior act exclusion” and the language and scope of the exclusion can vary from policy to policy. This could mean that if a condo corporation switches to a new insurance provider, even where they stay with the same insurance broker, the condo may not be covered under its prior policy for claims made after the expiry of the policy term. This can be the case even if the insurable event giving rise to the claim occurred during the policy term. In addition to not having a valid claim under the old policy, the condo may not be covered under its new policy for any claims arising from insurable events that occurred during the prior policy term because of a prior act exclusion clause in the new policy. This can create a gap in coverage that no one realized or intended. The financial consequences of this gap in coverage could be catastrophic for a condo corporation. While gaps in insurance coverage can leave a condo corporation financially vulnerable, there are various strategies that can be used to identify and mitigate gaps in coverage, including: Be Proactive Carefully review the expiring policy and proposed new policy to identify whether there is a significant change in coverage or in the insurance provider. Many condos may not realize that they are changing insurance providers, especially if they are staying with the same insurance broker. Once you have reviewed the policies, talk to your broker about any significant changes, potential gaps in coverage, and the options available to mitigate these risks;
Seek Legal Advice Discuss with legal counsel whether there are any potential “wrongful acts” that could give rise to a claim and consider submitting a notice of circumstance to the expiring policy provider. This is a complex process and the scope and possible consequences of the notice must be carefully considered; and Explore Potential Changes to Policy Terms You m ay w ant to s p e ak w i th yo ur insurance broker to see if there is an opportunity to negotiate policy terms with the new provider. Unfortunately, this may not be possible in a hard insurance market when options are limited. In a more favourable market, you may be able to narrow the scope of prior acts Insurance is a powerful risk management tool and is intended to transfer risk to the insurance company, which can protect a condominium corporation from unforeseen or unavoidable damage and liability for claims made against the condo.
exclusions in the new policy or include a “discovery clause” in the new policy to provide coverage for events that occur during the policy term but have not resulted in a claim by the expiration of the policy. Every condo must have insurance, but having a policy in place is only one part of the equation. Every insurance policy has exclusions, which are as important to understand as what is covered. Be sure to work with an experienced insurance broker who can clearly explain both what is covered by your insurance policy and what is not. By knowing what exclusions apply and how policies work, condos can take steps to mitigate their risks and avoid any gaps in coverage. 1 Kate (Letchford) Schoffer is a lawyer with Cohen Highley LLP in London. Cohen Highley LLP has offices in London, Kitchener, Chatham, Sarnia, Stratford, and Strathroy. Kate provides risk management and regulatory compliance advice to condominium corporations, unit owners, and property management companies.
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Purchase Additional Coverage Explore purchasing an extended reporting period from the expiring policy provider. This extends coverage to future claims made within the extended period if the claims are based on insurable events that occurred during the prior policy term;
It may not be enough just to have insurance in place at the time of a claim. There may be hidden gaps in coverage that can leave a corporation exposed to liability or costs.
1 Concorde Gate,Suite 808 Toronto, Ontario 416.443.9499 mcgregor- allsop.com
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MANAGEMENT
The Digital Transformation in Human Resources How technology is simplifying recruitment and training as property management companies realize new risks with staff deficits.
If the pandemic has taught BY VADIM KOYEN us anything, it is that human resource departments must improve their response mechanisms. Digital transformation empowers property managers and their teams to improve their asset and operation management strategies.
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MANAGEMENT
“A culture that understands the importance of ongoing training helps to not just attract top talent, but also retain it.”
However, it also provides the tools HR departments need to avoid the risks of the new endemic, including staffing deficits, employee churn and poor staff training. A failure to embrace digital transformation interferes with responsiveness and adaptability. Digitalization helps to manage the short-term impact on operations and focus on how new endemic management strategies will influence business models. Upgrade Technology to Reduce Risk of Lost Business and Staff Now is the time to integrate digitalization and adopt new digitallyfocused business models. Digitalization reduces costs while increasing efficiency. In the HR realm, it also improves operation and services by standardizing procedures. From project planning to reducing costs, companies can refine operations and incorporate real-time monitoring. Consequently, the company controls project income, and its team grows more efficient at managing client cash flow. A digital asset operation system provides teams with the tools they need to understand asset status, and benchmark key indicators so costs are reduced. There is also a reduced risk of losing business to digitalized property management companies, while using the tools that meet the expectations of top industry talent.
Use Digitalization to Reduce Talent Deficits Using digitalization to train and retain talent can hinder the risk of property management and front-line staff deficits. Many industries are experiencing shortages due to the pandemic. However, as we see the situation change to an endemic, the staff lost through layoffs and shutdowns may no longer be waiting in the wings. Now is the time to look at talent recruitment and the technology that can make the process easier. Artificial Intelligence (AI) for sorting resumes and onboarding software is just one example of how technology improves recruitment. Big data also helps pinpoint personnel capacity issues, as well as current team and management effectiveness. Being more flexible can also address operational risks due to staff shortages. For example, through digital transformation, companies can operate using both internal and external structures. There are opportunities to outsource partners, incorporate contract workers, or improve the offering to full-time hires through flexible telecommunication. Cross-over thinking is the wave of the future in HR, mitigating labour shortages in an industry that has always faced talent shortfalls and skills gaps. Cultivate Your Own Talent to Reduce Risk for Inappropriate Hires Higher-end training through digitalization fills a company’s own skills gaps. Advanced training technology can continuously support the organization’s growth using a three-pronged approach:
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Accurate Head Count: This first step introduces digital tools that monitor performance and address deficits or surpluses. You can continuously adjust staffing numbers accordingly. As a result, you always operate at the ideal staff levels
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and focus talent planning on having the right roles with the right people in those roles. Your organizational structure is optimized, and you are better able to manage employee life cycle.
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Training: Next you can conduct unified online training from a central location so everyone understands your business model. Online training in hand with live broadcasts allows you to conduct broad or micro classes designed to cultivate talent in the specific areas your property management requires. In hand with monitoring, you maintain complete control over your workforce, allowing you to optimize talent, while also ensuring you remain fully operational. You have a team who can use training platforms at their disposal to improve their capabilities while you improve learning efficiencies.
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Agile Talent: We are living in the Volatility, Uncertainty, Complexity and Ambiguity (VUCA) era where rapid changes are difficult to predict. Your goal, therefore, is to create a business model with agile talent ready to adapt as changes arise. HR managers must be able to meet the needs of sudden crisis and adapt as society changes the rules. Your accurate head counts in hand with online training work together to create agile talent, so you are always able to tap into new skills with a training program designed to meet the needs of a changing work environment. When you establish efficient online learning processes, you can smoothly transition to new initiatives the industry or changing circumstances demand. Digitalization of your talent cultivation strategy allows you to remain responsive to client needs. Keep in mind individuals and businesses that provide condominium management services in Ontario must hold a licence issued by the CMRAO. Reduce Risk of Employee Churn Digital technology, and more specifically digital learning, lowers risk of employee churn. A culture that understands the importance of ongoing training helps to not just attract top talent, but also retain it. Digitalized HR models become self-adaptive, ensuring a deeper learning experience that nurtures careers. However, digitalization in general makes jobs easier for your staff, while refining headcount. In turn comes adjustments to incentive strategies, from greater employee rewards to flexible work options. These improved incentives coupled with ongoing self-driven training can help recruit talent and incentivize current staff to stay. Finally, HR departments can formulate accurate salary management measures, so they are prepared for future industry challenges. Reducing risks for deficits, or even surpluses in staffing, allows for an optimized salary structure. While property management companies must learn to optimize HR services and leverage advanced technology to support property performance, they must also embrace their own digitalized training and hiring devices to help meet expectations of top talent. 1 Vadim Koyen is president of CPO Management Inc. CPO Management Inc., full-service property management company specializing in residential and commercial condominiums in Toronto and the GTA. With over 10 years in the industry, CPO offers a wide spectrum of services from strategic and financial planning to accounting, building maintenance and capital improvement. https:// www.cpomanagement.ca/
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Modernizing payments for Canada’s commercial property industry Canadian property managers have a lot to gain from making payments faster, easier, and more transparent. In a post-pandemic economy, many Canadians are reducing their use of cash as a payment method and are relying instead on digital payments. In fact, a recent Interac survey revealed that two thirds of Canadians believe businesses that fail to adapt in order to allow digital payments will struggle. The demand for digital payment options from businesses will only increase and property managers will need to accommodate this shift in consumer behaviour. With every dollar counting more than ever before given the challenges faced by businesses during the pandemic, efficient ways of paying and managing finances in ways that improve cash flow is now paramount. Improvements to accounts payable, accounts receivable, and methods of payment cannot be overlooked in this recovery-focused environment. Pre-pandemic, day-to-day financial management
often involved processes that were paper-based, cheque-driven, and manual. These are typically slower and less efficient ways of working and require businesses to spend valuable resources processing and reconciling payments. The pandemic, alongside changing consumer preferences, has naturally reinforced the need for digitization and moved businesses to lessen their reliance on manual processes to boost overall operational efficiency. Eighty-three per cent of finance professionals surveyed by Interac affirm this notion, saying that applying digital transformation to their function is now a priority . These needs are fuelling demand for innovative business payment solutions, such as Interac e-Transfer® for Business. As an enhancement of the existing Interac e-Transfer service, new features were built to meet the needs of Canadian businesses through higher transaction limits, fast money transfers with instant confirmation and rich remittance data, allowing businesses to reconcile
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transactions with less paperwork. In other words, it can help streamline accounting processes and accelerate a paperless office strategy. For a property manager or landlord, this could mean being able to accept or request payments directly from tenants with immediate access to funds, paying contractors and invoices for work specific to the property with greater ease and retaining payment confirmations. Further, property managers and landlords could send a reminder for rent payment via request-to-pay capability and easily reimburse tenants for costs incurred on behalf of the property manager or for payment returns. Receiving payments instantly in this way can also be a game changer if a manager is largely reliant on cheques, eliminating any uncertainty around when one will arrive in the mail or whether it will clear. With Interac e-Transfer for Business, property managers can receive payment instantly, reducing the number
of cheques and cash they receive, eliminating the risk of late payments, and gain easy visibility into what the payments are for using structured data. Eight in 10 (80 per cent) business decision makers surveyed agree that moving from traditional payment options to digital ones will be essential to post-pandemic growth . Assessing how a business can revamp its payment processes and financial management to become more efficient and effective with tools like Interac e-Transfer for Business can help to equip the commercial property industry as it embarks upon growth and recovery plans. Those interested in using the solution are invited to learn more by visiting Interac.ca/business, In The Know and to discuss the offering with their financial institution. Interac and Interac e-Transfer are registered trademarks of Interac Corp..
(1)Interac commissioned Hill+Knowlton Strategies to conduct a national survey of adult Canadians. A total of 1,000 adult residents of Canada were surveyed online in April 2021. The sample was randomly drawn from a panel of potential survey respondents. An associated margin of error for a probability-based sample of this size would be ±2.5%, 19 times out of 20. (2)Interac commissioned Phase 5 Consulting to conduct an online survey of 152 financial decision-makers in Canadian midsized businesses with 100-499 employees. Participants were recruited via an online research panel. Fieldwork was conducted in English and French in May 2021. (3)Interac participated in RFi Group’s online commercial banking and payments syndicated survey of decision makers at 363 commercial enterprises with revenues between $10M and $100M. Fieldwork was conducted in English and French in June 2021. Note: Finance transformation describes any strategic initiative meant to create new opportunities for the finance function to add value to the business and align with overall company strategy.
Carbon Cutters Three ways boards can reduce their condo’s energy use and carbon footprint
Cl imate change is a hot topic right now – literally. As
BY TERRY BERGEN
governments globally continue to recognize and discuss addressing greenhouse gas (GHG) emissions, individuals are considering their personal impact on the environment.
38 CONDOBUSINESS | Part of the REMI Network
GOVERNANCE
“Buildings often lose up to 25 per cent of their heated or
cooled air through windows—that means losing 25 per cent of energy that’s paid for.” to improve a building’s performance, from small but impactful changes, to whole building retrofits. Here are three potential ways that condo owners/boards can impact their building’s performance and, in turn, sustainability.
In Canada, building emissions make up 18 per cent of GHG emissions. Existing building operations, such as condo buildings, represent a significant portion of Canada’s national carbon footprint. Energy efficiency is the most important first step to reducing these emissions. Improving energy efficiency is quickly becoming a top priority for many condo boards. Reducing the energy use and carbon footprint of buildings is important to condominium owners, not just because of the broad societal need to reduce climate change, but also for practical reasons. In addition to helping lower GHG emissions, upgrades can reduce utility bills, increase property value and enhance occupant comfort. To get started, condo boards should research government grants and other incentives to help with costs in reducing energy consumption. There are many ways
Education Reducing common energy use may result in lower strata fees or prevent these fees from increasing as often. Helping others to understand and be aware of their energy consumption patterns and energy costs can encourage people to make changes to lower emissions. Condo buildings also share building energy consumption which isn’t always visible or top of mind because owners aren’t directly billed. Educating tenants and residents should be an important piece of any energy efficiency strategy; yet, it’s often overlooked. Lighting Replacing existing lighting equipment for more efficient lighting, such as LED lights, is an easy but effective way to help reduce consumption. Upgrading to LED light bulbs is perhaps one of the lowest cost ways to improve energy efficiency, while providing benefits. Payback periods for this upgrade are often very short. ENERGY STAR rated LED light bulbs can cut energy electric use by 75 per cent because they require much less power to illuminate a space. LED lights last longer so they don’t have to be replaced as often as traditional lights. Lighting controls fur ther improve efficiency. Occupancy sensors and/or daylighting controls can help manage energy
consumption and limit its use to only when needed. Motion activated lights in common spaces is a feature that is often highly valued by tenants, while simultaneously reducing building operation costs. Window Upgrades If a condo building has older windows, especially aluminum framed, single-glazed windows, chances are a lot of energy is escaping. Buildings often lose up to 25 per cent of their heated or cooled air through windows—that means losing 25 per cent of energy that’s paid for. Replacing existing windows with improved thermal performance windows saves heating and cooling costs: By significantly reducing the loss of heated or cooled air, it costs less to keep the interior space comfortable. This helps to improve occupant comfort by reducing cold drafts and hot spots. Low-e coatings will also limit solar heat gain effect in a unit, and another bonus is that new windows can substantially reduce the amount of noise occupants can hear from outside. People are often very happy with how quiet their residence is after a window replacement. Window replacements can also improve aesthetics from both the exterior and interior; they update and modernize a space. Airtightness Testing Building air leakages account for about 25 per cent of space heating for large buildings – that’s a lot. An airtightness test is a great tool to assess a building’s performance. Along with a whole building test, suite testing and compartmentalized testing can be performed. Airtightness testing helps
www.REMInetwork.com | November 2021 39
GOVERNANCE
“Existing building operations, such as condo buildings, represent a significant portion of Canada’s national carbon footprint.”
Energy Efficiency Programs Stall Provincial energy efficiency programs are generally less effective now than they were last decade. Newly released results from Efficiency Canada’s provincial energy efficiency scorecard show a downward trend in achieved incremental savings for the period from January 2020 to June 2021, which analysts with the national research and advocacy organization attribute largely to the dismantling of incentive programs in Ontario and Alberta. Incremental energy savings are a measure of new savings achieved from currently offered programs — a volume that peaked at 23 petajoules Canada-wide in 2017 and dropped to roughly 14.25 petajoules in 2020-21. Notably, Ontario’s contribution to national electricity savings slipped from 58 per cent in 2017 to 18 per cent in 2020, with savings in the commercial/industrial sectors dropping from 1,105 gigawatt-hours (GWh) to 313 GWh in the two timeframes. “Canada is coming out of the COP26 Climate Summit with the resolve to reach netzero emissions,” observes James Gaede, senior research associate with Efficiency Canada. “The data shows that provincial energy efficiency progress is stalling.” British Columbia retains top ranking among Canadian provinces for the third consecutive year for energy efficiency policies and outcomes, which are scored on 54 metrics pertaining to electricity, natural gas, codes and standards and transportation, and accounting for the residential, commercial and industrial sectors. Quebec, Nova Scotia and Ontario also hold on to the second, third and fourth positions, respectively, they earned last year. Efficiency Canada analysts emphasize that even British Columbia’s leading score of 55 out of 100 possible points leaves plenty of room for improvement. From there, the tallies range from 48 for Quebec down to 13 for tenth placed Newfoundland and Labrador. Ontario merited 39 points this year, while Alberta attained 21. “Ontario continues to do quite well, but that’s largely because of some legacy policies such as it’s the only province right now to have mandatory building energy reporting, and there’s continued interesting work by the IESO (Independent Electricity System Operator) on grid modernization, but it’s in the 2020 data that you can really see the impact of budget caps that were imposed on electricity programs,” Brendan Haley, Efficiency Canada’s policy director, reported during a webinar overview of the results. “You’ve got to look to municipalities and industry if you want to find some good energy efficiency news in Alberta.” Saskatchewan, with a score 18, gained one point over last year’s results, while New Brunswick remained static with a score of 27. All other provinces registered a decline, with Manitoba making the most severe drop from 29 down to 21 points.
40 CONDOBUSINESS | Part of the REMI Network
determine the air leakage level to understand how to improve the building enclosure and, in turn, save energy. Leaky buildings are inefficient and cost a lot to operate. They also present a risk for moisture-related issues like condensation build-up within walls. Air leaks are typically found around windows, doors, vents, and electrical outlets, which can easily be identified using tools for air leakage testing, such as blower doors, thermal imaging and smoke tests—and once detected, they can be sealed. After improvements are made, the test can be performed again to see how performance improved. Similar to lighting improvements, practical improvements for airtightness are among the lowest cost ways to improve energy efficiency, while providing benefits. Payback periods for draft proofing windows and doors, vents and outlets, can be very short. Improving energy efficiency can begin in a single unit or with the leadership of a condo board. From small steps, such as education around energy use, to whole building retrofits, improving efficiency is increasingly becoming a requirement. Many of the strategies that reduce energy consumption reduce ownership costs, improve occupant comfort and add to property value. 1 Terry Bergen, CTech, CCCA, LEED AP, CPHC is a managing principal with RJC Engineers. Specializing in building science and restoration, Terry is passionate about the sustainability and resiliency of the built environment. He works collaboratively with clients to achieve solutions that are environmentally responsible and economically viable. Contact him at tbergen@rjc.ca
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A Delicate Balance Taking the fear out of social media platforms for more transparent communities
A l most ever y condominium corporation has a social media site,
BY SHLOMO SHARON
which is the domain of the residents. Often, the owners themselves, or sometimes management, initiate this. Some people view it as a positive tool and are very excited about it, while others have concerns. How can we work with this platform to find a way for owners, residents, boards and management not to be afraid, but to enjoy the benefits it brings?
42 CONDOBUSINESS | Part of the REMI Network
GOVERNANCE Set Initial Goals An important first step is to define what creating this tool attempts to achieve. Be clear as possible about who should administer the site, not control it, and who should be allowed to participate. Should the administrators be a mix of non-board owners, a board member and a property manager? Or, should there be another structure for administration? Selecting the right people will prove useful and help to resolve future issues which may arise. Clarify what the function of social media is in the life of the condominium community. Such a tool can introduce the owners and residents to each other and to the board and management. Some may feel the site should be reserved only for owners, but when management is invited to participate, it could be helpful. The site can allow owners to take initiative in creating social events, such as dinners, parties, lectures, movie nights, the sale of personal items, etc., which can enhance the social life of a condominium community’s residents. A Safe Venue For Transparency A social media forum can also be a venue to express opinions and issues concerning the management of the community. This freedom of expression should never be restricted; however, it is possible to cross the line. In certain circumstances, where anger and frustration may escalate, it is never justifiable to post an offensive message of foul language, as is sometimes the case. There is no room for such behaviour in a community. How should residents present their thoughts and ideas on social media without offending people? Differing opinions and concerns are welcome, but in a respectful way. Administrators are primarily responsible for determining if one’s language has gone beyond what is proper and are there to handle troubling situations and diffuse a message’s unwelcome tone. A proper guideline, which each owner receives, should outline what is acceptable to post on social media. It is essential this guide is updated on an ongoing basis and is clear to avoid any misunderstandings. The appointed administrators, in turn, should have the authority to delete any offensive postings and also have a set of guidelines themselves to dictate what it deemed “dangerous” and “offensive”. Legal advice may also be suggested. But posting on social media comes with responsibility and freedom; understanding this delicate balance helps avoid any legal dilemmas. Sometimes, before raising an issue with management, residents might take to social media to voice concerns over maintenance, such as window leaks or balcony repairs, as a way to determine if issues are their responsibility or a common element. Sometimes, they may even voice a concern about management itself. Managers should be willing to accept that social media is a likely platform where owners and residents discuss such affairs, and that regulating the issue is the priority—not taking apparent criticism to heart. This social platform is restricted to a particular community of which the management company is an integral part. In turn, management should likely participate in a condominium’s social media platform. Living in a condo brings advantages and challenges. Social media should not serve to offend, but rather be a tool to enhance the lives of owners and residents. 1
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www.REMInetwork.com | November 2021 43
MANAGEMENT
A Still-Valid COVID Excuse Labour shortages and supply chain challenges endure
The instant understanding that came with the ‘COVID
BY KIRSTEN DALE
excuse’ in the first few months of the pandemic seems to have faded and residents want things ‘back to normal’. They want their gyms re-opened, their lawns tidied up, and the repairs that were put on hold from last spring completed. But the reality is that the pandemic is still finding new ways to impact our lives as the weeks and months go by. Benjamin Franklin once said: “He that is good for making excuses is seldom good for anything else,” and as the days go by, managers are seeing, more than ever, that their residents are not as patient and understanding as they were last year when the virus frenzy was just beginning. A c c ording to rec ent pub lic ations from the Business Development Bank of Canada, 6 4 per cent of Canadian businesses say labour shortages are limiting their grow th, and Statistics Canada has reported a record number of job vacancies in the construction industry. Labour shortages are a real problem. Residents who are perplexed about why the leaves have still not been blown out from under their deck might not realize (or perhaps care) that in many cases the company owners themselves are working 16-plus hour days to keep up with existing client needs while struggling to reacquire employees lost during the pandemic. CERB is just ending and that will not immediately fix the labour shortage, considering that many who were working during the pandemic have recently taken leave from their jobs because of company vaccine policies. COVID is also impacting maintenance routines. For example, as a colleague recently
experienced, waiting 16 months for the repair of special gym equipment only to be told the trade elected to decline the scheduled service due to a recently implemented vaccine p olicy at the condominium for shared facilities. As policies continue to change and the labour market remains unsettled, managers must continue to ride the waves. Supply chains are another area where the pandemic fluctuations continue to i m p a c t m a n a g e r s . R e n o v a t i o n s continue to increase at a steady pace. A recent survey conducted for Formica Canada by Léger asked more than 1,000 homeowners across the country about their renovation plans and revealed that 16 months after the pandemic emerged, interest in renovations remains strong with more than 30 per cent of respondents planning to renovate their kitchen or bathroom in the next 12 months. T he cur rent wait time for so me appliances is eight months or more. If something needs replacing at a site with older equipment that is hard to source, there could be a long wait until things are back in operation. A site with 100 units and two elevators is really going to struggle if one elevator is out of service for weeks, or months.
44 CONDOBUSINESS | Part of the REMI Network
Suspicion still lingers in the air from when COVID first hit. Rather than Lysol-spraying groceries, many remain acutely aware of every item they touch and the potential harm that such transference may conjure. There is great tension in many interactions, and this is especially true when residents who are tired of hearing the “COVID excuse” reach a manager who is equally tired of repeating it as an honest justification. A recent case highlighted by Gardiner Miller Arnold’s Ontario Condo Law Blog saw an owner complain that the condominium corporation had acted oppressively by failing to replace his windows when he wanted them replaced (with no evidence that his windows required replacement). A graceful exit from the dark tunnel of COVID challenge to the light of normalcy just ahead requires trust, mutual respect, and ongoing patience to give us all safe passage—together. Be kind. 1 Kirsten Dale is an Ontario licensed condominium manager (CMRAO) and a registered condominium manager (ACMO) with M C RS Pro perty M anagement, based in Huntsville, Ontario providing condominium management services in Simcoe, Muskoka, Parry Sound and Haliburton.
CONDO MARKET
Condo Market Offers Hope Amid Housing Affordability Challenges Canadian real estate has been a resounding success story throughout the pandemic, often
BY CHRISTOPHER ALEXANDER
referenced as a measure of our nation’s economic health. While the staggering gains seen in detached housing values have been a boon for existing homeowners, rising prices—a result of critically low inventory and rising demand— have made home ownership an elusive dream for many Canadians. However, those seeking more affordable housing options are finding a cure all in the condo market, which offers affordability, availability, amenities, and neighbourhood liveability. A Regional Overview One might argue that the condo market is the true success story. Despite a marked decline in the spring of 2020, condo sales made a comeback in 2021. When comparing year-over-year sales (January to August), RE/ MAX brokers and agents reported that strong gains were seen in Western Canada, with condo sales rebounding 87 per cent in Greater Vancouver and 83 per cent in Calgary. Meanwhile in the Greater Toronto Area (GTA), condo sales increased by 71 per cent in 2021, followed by Halifax-Dartmouth (rising 30 per cent) and Ottawa (up 18 per cent). Young homebuyers have been driving demand for condos, with many looking to lock in low interest rates and buy property before prices climb beyond their means. The greatest concentration of condo sales this year has been in Greater Vancouver, where they represented nearly half (48.2 per cent) of total residential sales in 2021, up from 46 per cent one year ago. Condominium apartments and townhomes in the GTA followed with a 34.5-per-cent share of the overall market, up from 30.8 per cent one year earlier. Almost one in four properties sold in Ottawa between January 1 and August 31,
2021, was a condominium, compared to the same period in 2020 (24.3 per cent versus 23.3 per cent). Meanwhile, in Halifax-Dartmouth, the condominium segment represented 17.3 per cent of total residential sales, up from 15 per cent one year earlier. While overall condominium sales climbed in Calgary yearover-year, market share declined by just under one per cent in 2021, to 14.2 per cent.
Ultimately, Canada needs a collaborative national housing strategy; a plan that involves all levels of government, rather than relying on temporar y band - aid measures, such as ending blind bidding or implementing new taxes. In the meantime, home ownership in Canada continues to be one of the best investments a person can make. 1
What Does This Mean Moving Forward? The condo market is expected to continue its upward trajectory, as more Canadians and new immigrants look to this segment of the market to fulfill their housing needs and wants. Are we prepared to meet this demand, or are we doomed to repeat the cycle of low supply and rising prices, in what may be one of the few affordable options left for home ownership?
Christopher Alexander is the president of RE/MAX Canada. He oversees operations for the company-owned RE/MAX Canada region, which includes Alberta, British Columbia, Manitoba, New Brunswick, N ew fou nd l a n d a nd La b ra d o r, N ova Scotia, Ontario, Prince Edward Island and Saskatchewan. He also works closely with the leaders of the independent RE/MAX Quebec region.
www.REMInetwork.com | November 2021 45
NEW AND NOTABLE
Radon Levels Outpace National Estimates Radon levels consistently eclipse provincial and national estimates, according to new findings from a Canada-wide citizen science initiative conducted over the past three years. More than ten years ago, Health Canada released a report detailing the percentage of homes with radon levels above 200 Bq/ m3 on the national, provincial and health region levels. Provincial averages ranged from four to 25 per cent, and the estimated national average was seven per cent. Take Action on Radon (TAOR) reveals that the overwhelming majority of communities that have taken part in their 100 Radon Test Kit Challenge program are finding that dangerous levels of the cancer-causing, radioactive soil gas are much more common. “I was shocked by our citizen science results,” says Pam Warkentin, of TAOR. “Particularly as we’re seeing high levels across the country. Of the 43 communities we have tested so far, 39 communities are at or above Health Canada’s national estimate.” All forms of housing were eligible to test in this program, including
46 CONDOBUSINESS | Part of the REMI Network
multi-unit residential buildings, duplexes and townhomes. No restrictions were placed on the age of the homes. The program measured between 2018 and 2021, and all testing was undertaken for three months over the winter heating periods. “Each year, the more test kits we distribute, the more homes we find with elevated levels,” says Erin Curry, a TAOR lead. “It is a misconception to think that radon is a problem just in certain areas. We are finding elevated levels in all regions; in small towns and larger cities and in all types and ages of homes.” Anne-Marie Nicol, an associate professor of health science at SFU, says relying on provincial averages needs to stop. “We need to start talking about radon at a much more local level,” she says. “Right now, there are very few provincial policies that protect people from radon exposure. The 100 Radon Test Kit Challenge has shown us that many municipalities are interested and willing to take action once they know about the radon in their region.” 1
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