RHB Magazine August 2024

Randy Daiter: Legend of Real Estate

Immigration

People

EDITOR’S NOTES

Let’s go to the EX

You know when summer is almost over when the CNE comes to town in Toronto. It’s been a tradition in my family for almost 50 years. Even my daughter has come around, as she looks forward to going to the CNE to try the crazy foods and see the sights. I just saw a piece on the news that the CNE may be at risk due to development on the Exhibition Place lands. I’m hoping it will survive in one way or another, as it’s part of Toronto’s history and mine (as well as thousands of other families).

This issue of RHB Magazine features an interview with Randy Daiter, Vice President of Residential Properties at M&R Property Management. He is a true legend of real estate, as he is entering his fourth decade in the real estate industry. The feature includes an edited transcript of his interview with Vanessa Topple, Anchor and Producer of RHBTV and BoldTV, where they discussed his background in the industry, overcoming personal challenges, family influence, motivation, and more.

The second article examines the impact of immigration and migration on Canada’s housing situation. Even though the Federal Liberal government has implemented caps for the number of international student permits and temporary foreign workers, immigration has yet to slow down. This has had a serious impact on Canada’s housing market, which has also influenced interprovincial migration.

This issue features a special insert: an interview with Laura Holland, principal of BentallGreenOak. She sat down with Vanessa Topple, Anchor and Producer of RHBTV and BoldTV, to discuss getting into the real estate industry, the importance of mentors, balancing work with family, overcoming challenges, and more.

Don't forget to read CFAA’s newsletter, National Outlook, as well as the Regional Association Voice. FRPO discusses the Ontario government’s announcement to create new student housing spaces, declining condo rents, the Let’s Build Ontario “Say Yes” campaign, and more. Yardi Canada wraps up this issue with a discussion of the importance of ILS, websites, and SEO for apartment marketing. We enjoy hearing from our readers, and we want to support two-way communication. If you have any comments or questions, send them to david@rentalhousingbusiness.ca. I look forward to your emails.

Publisher

Marc Côté

marc@rentalhousingbusiness.ca

Associate Publisher

Nishant Rai nishant@rentalhousingbusiness.ca

Editorial David Gargaro

david@rentalhousingbusiness.ca

Creative Director / Designer

Scott Clark

Sales Executive

Justin Kreslin

justin@rentalhousingbusiness.ca

Office Manager

Geeta Lokhram

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Opinions expressed in articles are those of the authors and do not necessarily reflect the views and opinions of the CFAA Board or management. CFAA and RHB Inc. accept no liability for information contained herein. All rights reserved. Contents may not be reproduced without the written permission from the publisher. P.O. Box 696, Maple, ON L6A 1S7 416-236-7473

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David Gargaro Senior Editor

Randy Daiter: Legend of Real Estate

Vanessa Topple, Anchor and Producer of RHBTV and BoldTV, sat down with Randy to discuss his background in the industry, overcoming personal challenges, family influence, motivation, and more.

Immigration has "slowed" but the housing situation has gotten worse People are migrating to other provinces in search of affordable housing.

RAV features the latest industry news from four member associations.

Final Take Away

Mastering ILS, websites & SEO for apartment marketing Landlords need a comprehensive strategy to stand out in a competitive market.

PRESIDENT’S CORNER

This issue of National Outlook provides a recap of the annual CFAA Conference. It also covers updates on some of CFAA’s key events and appearances, including CFAA Advocacy Day, consultations with CMHC and Statistics Canada, and the Standing Committee on Human Resources, Skills and Social Development.

This year’s CFAA Rental Housing Conference, which took place in Toronto from May 14 to 16, was an incredible success. We welcomed 350 attendees to this year’s event, which featured the theme “Building Stronger Communities.” This was quite appropriate, given the dire need for housing across Canada and the vital role rental housing providers play in fostering strong and stable communities. Conference attendees heard from government leaders, received an economic update from Benjamin Tal, and participated in a wide range of educational panels. See pages 38-41 to learn more and to see photos from the CFAA Conference.

In late April, CFAA held their first major advocacy days in Ottawa, which involved holding conversations with all three major political parties, participating in election platform development, presenting regional concerns to the Saskatchewan caucus, and responding to Budget 2024 with praise and concerns. On June 6, I was invited to speak at the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) on their study around Federal Housing Investments. CFAA was the first market housing provider to provide testimony to the committee in relation to this study and made sure to echo the importance of housing. CFAA also participated in a roundtable with CMHC and Statistics Canada to discuss modernization of housing

data collection. See pages 35 and 37 for more details.

If you are not already a direct member of CFAA, please consider joining CFAA as a Direct Rental Housing Provider Member, or a Suppliers Council Member. Visit www.cfaa-fcapi.org or email admin@cfaa-fcapi.org today.

Tony Irwin President and CEO, FRPO, and Interim President, CFAA

In this issue of... NATIONAL OUTLOOK

tend our he 2024 theme, iven the e rental unities

gnificant levating ernment tial, and industry

35. Interim President Tony Irwin was invited to speak at the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) on their study around Federal Housing Investments.

ntertain evels of Tal, and ics such itiatives, on of the uring hi s

success, valued pport of as been is year’s forward ver Stay

37. With the federal election slated for Fall 2025, all major parties are ramping up in preparation when it comes to touring, managing stakeholders, and securing their key platform polices.

38. The CFAA Board of Directors was pleased at the turnout for this year's CFAA Rental Housing Conference.

To subscribe to CFAA’s e-Newsletter, please send your email address to communication@cfaa-fcapi.org.

The Canadian Federation of Apartment Associations represents the owners and managers of close to 1.5 million residential rental suites in Canada, through 13 apartment associations and direct landlord memberships across Canada.

CFAA is the sole national organization representing the interests of Canada’s $950 billion rental housing industry.

Corporation des Propriétaires Immobiliers du Québec (CORPIQ) www.corpiq.com P: 514-748-1921

Eastern Ontario Landlord Organization (EOLO) www.eolo.ca P: 613-235-9792

Federation of Rental-housing Providers of Ontario (FRPO) www.frpo.org P: 416-385-1100, 1-877-688-1960

Greater Toronto Apartment Association (GTAA) www.gtaaonline.com P: 416-385-3435

Hamilton & District Apartment Association (HDAA) www.hamiltonapartmentassociation.ca P: 905-632-4435

Investment Property Owners Association of Nova Scotia (IPOANS) www.ipoans.ns.ca P: 902-425-3572

LandlordBC www.landlordbc.ca P: 1-604-733-9440

Vancouver Office P: 604-733-9440

Victoria Office P: 250-382-6324

London Property Management Association (LPMA) www.lpma.ca P: 519-672-6999

New Brunswick Apartment Owners Association (NBAOA) www.nbaoa.ca jbrealsetate@nb.aibn.com

Manufactured Home Park Owners Alliance of British Columbia (MHPOA) www.mhpo.com P: 1-877-222-4560

Professional Property Managers’ Association (of Manitoba) (PPMA) www.ppmamanitoba.com

P: 204-957-1224

Saskatchewan Landlord Association Inc. (SKLA) www.skla.ca P: 306-653-7149

For more information about CFAA itself, see www.cfaa-fcapi.org or telephone 613-235-0101. CFAA Member Associations

Waterloo Regional Apartment Management Association (WRAMA) www.wrama.com P: 519-748-0703

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Legend of Real Estate Randy Daiter:

Randy Daiter, Vice President of Residential Properties at M&R Property Management, has been involved with the real estate industry for nearly four decades. In addition to spending almost 12 years with his current company, he has served on several industry committees, written articles for industry publications, and spoken at key industry events across Canada. He pursued a Master’s degree in Business Administration after completing his undergraduate studies at the University of Western Ontario, a commercial real estate broker’s license, and the RPA and PLE professional designations.

Vanessa Topple, Anchor and Producer of RHBTV and BoldTV, sat down with Randy to discuss his background in the industry, overcoming personal challenges, family influence, motivation, and more. To follow is an edited transcript of their discussion.

Daiter:

Work history

Vanessa: Congratulations on being named a Legend of Real Estate. I know you’ve been in this industry for quite a few years now. I think 38 to be exact. You’ve worked for some amazing companies. I wonder if you can share with me some of the companies.

Randy: I spent a number of years at Brookfield Properties, where I managed a corporate-owned portfolio and a third-party portfolio for a partner of our owners. From there, I was at a development company for a number of years running the residential portfolio. I was looking after more of a national portfolio. And from there I’ve been at M&R for almost 12 years now.

A difficult start

Vanessa: Amazing, those are all great companies. I have to ask you about your start in the industry, because as I understand the story to getting there is a pretty interesting one. Share with me the circumstances that led you to getting into this.

Randy: Well, it’s kind of neat. It’s quite unique. After high school, I had a back operation. I had a form of scoliosis. I had my spine reconstructed. I spent two weeks in bed where every four hours, 24 hours a day, they would rotate you from your front to your back. I can tell you there are 1,287 holes in each ceiling panel at the hospital. From there, I spent six months in a walking plaster body cast. I got home from the hospital, I was in this body cast, and I was bored. Fortunately, I landed a job managing ten apartment buildings in downtown Toronto. That was my first foray into the industry.

Vanessa: So let me get this straight. You spent six months in a walking body cast. Were you prepared to go into something like that. Did they give you any knowledge that this was going to be what you’d be faced with?

Randy: No, I wasn’t prepared for it at all. but I overcame it. It was mind over matter to a large extent. I just can’t sit around in a body cast. I have to go and do something. That’s when I landed the job running apartment buildings.

Vanessa: Now, you were young when you got into the industry. There must have been challenges that you faced, especially in those early years in business. Talk to me about some of the challenges.

Randy: There were definitely challenges. I was young. I was 19 when I was managing the apartment buildings. Prior to going back to school, I recognized very quickly that back in the 80s, I was managing superintendents, as a property manager, and emptying vending machines and

collecting rent and advertising and showing apartments. That was not challenging for me. The biggest challenge was I had some superintendents who I quickly discovered were suffering from alcoholism. They were probably 40 years older than me. I was a young guy in my late teens, and I ended up having to let them go. I’d say that was the biggest challenge for me.

Family influence

Vanessa: That must have been very challenging. You handled yourself with grace. Now, tell me, Randy, going through that, you must have had a mentor in those early years. Who did you look up to for guidance?

Randy: Well, I looked up to my grandfather. My grandfather was in real estate and he inspired me to get into the industry initially. He was all about honesty, trust, and integrity. Staying true to yourself. Having a strong moral compass. And, most importantly, he always told me education is important. But he always said to me what’s more important than an education is character. And that’s the most important value that I gleaned from my grandfather. I’ve carried that with me for the rest of my life.

Vanessa: I love that, and it sounds like you really looked up to your grandfather. Let me ask you a little bit about what life was like growing up. Tell me about your parents and what was a little Randy like.

Randy: I grew up in an entrepreneurial environment. My father was in business. My grandfather was in real estate and my mother was a teacher. We would spend our summers up north at the cottage. My mother had the summers off working in the city. I would go up to the cottage. We’d go to day camp during the day. And, on weekends, I’d spend time fishing with my younger brother. We fish a lot, and we catch our fish every Saturday and bring it home. My mother would clean it and cook it up. Every Saturday night we had our fish dinner. Sundays I would spend my time cleaning boats, cleaning motorcycles for people in the area, and staining and painting decks.

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Randy Daiter: Last words

Business motto or philosophy?

I subscribe to the operating principle that “Employees come first and the customer comes second.” This supports the notion that if you take care of your employees, they’ll take care of the customers. This philosophy has served us well, as evidenced by winning the Customer Service of the Year Award through FRPO for two consecutive years. Additionally, our Net Promoter Scores are four times greater than the average American company. This approach proved invaluable during the COVID crisis, as our industry faced significant challenges, yet our vacancy rates remained much lower than those of our competitors.

Greatest

accomplishment in business?

My greatest accomplishment in this business is creating a supportive environment that empowers employees to bring their authentic selves to work, thereby redefining our work culture and fostering meaningful connections. At M&R, I began by involving employees in establishing our Customer Service Standards, aligning them with our strategic vision and our tagline, “Where the heart is.” This alignment ensures that everyone understands the company’s values, mission, vision, and purpose, helping them find fulfillment by connecting with their intrinsic motivators. I believe in the power of inclusive decision-making. By utilizing a “Consult and Decide” approach, I involve staff in important decisions, making them feel valued and included. This collaborative process enhances their sense of belonging and commitment to our shared goals. Parental advice?

We need to direct, guide, and instruct our kids. I think it’s important to work on establishing longlasting, trusting, and respectful relationships. We do this by treating our kids with respect; reacting gently and patiently to their mistakes; setting appropriate expectations and goals; teaching

our kids our values and beliefs; and providing opportunities to develop their interests, skills, and talents. At the end of the day, we should think of our job as “supporting human growth” by providing a clear path for them to follow.

Favourite movie?

My favourite all-time movie is the 1957 AcademyAward-winning film, The Bridge on the River Kwai. Aside from taking a personal interest in how bridges are built, I think there are many lessons to be learned from this film, including the value of practising humility by putting others above yourself. From a leadership perspective, there were contrasting styles of leadership, from authoritarian leadership demonstrated by the Japanese Colonel to effective, democratic leadership practiced by the British Colonel. The British Colonel was organized, delegated by recognizing individual team members’ skills, and was relentless by leading by example. However, the biggest lesson I gleaned from this film was “Never lose sight of your mission under any circumstances,” which is what the British Colonel did. In the film, execution in building the bridge took priority over strategy. This never ends well for leaders.

Vanessa: Very nice. And what did you want to be when you grew up?

Randy: Interestingly, I always knew I wanted to get into real estate.

Overcoming challenges

Vanessa: That’s not a very common thing that you hear little ones wanting to be in, but you had a mission, and I love that! Now you have a family of your own. You have two beautiful daughters. I know, Randy, within the family you’ve also had some challenges.

Randy: We have had some challenges. Life is highly unpredictable. I lost my wife to cancer several years ago. I have two beautiful daughters who were 11 and 15 at the time. I realized life is highly unpredictable, but you just do what you have to. And we got through it. My younger daughter was in hockey. She was on the ice five times a week all over Ontario. I was working full time. My older daughter, I looked after her carpool. We had four other people in the carpool. I had an aging dog I was looking after, and while my wife was sick, I was her primary caregiver. I realized that you just step it up and you do what you have to. That’s what it’s all about.

Vanessa: I can’t even imagine how difficult that time must have been for you. How did you remain strong for not only yourself, but for your two daughters?

Randy: Well, my grandfather taught me resilience is a very important thing. And quite frankly, I couldn’t have done it without support. My family and friends were also very supportive.

Personal time

Vanessa: That’s wonderful that they were able to be there for you. I know your daughters just passed some major milestones that I know you’re very proud of.

Randy: Thank you. I am very proud. This past June, one graduated from high school and the other graduated from university. They both graduated with honours. I’m very proud of them. Vanessa: That’s so wonderful. I know you love spending time with them as a family. When you’re not in the office, what could we find you doing?

Randy: I love bike riding. I ride my bike quite a bit. I like playing tennis, golf, going to the gym. Recently, I just took up yoga and mindfulness, which I’m really enjoying.

Motivation

Vanessa: Very nice. What keeps you motivated when it comes to being in business?

Randy: I learned at a very young age how humans like to be recognized and appreciated. And that stayed with me throughout my entire business career. I was in university. I lived in residence. It was a large building. It was 27 storeys, and we had a cleaner by the name of Johnny. Johnny had been cleaning the residence for probably 40 years. He did a great job. At Christmas time, I went out and I bought a nice bottle for him. I collected some money, and with some people on the floor we presented it to him, and we said, “Johnny, we’d like to thank you for doing such a fantastic job cleaning our floor. You’re doing a fantastic job, and we really want you to know how

much we appreciate it.” Johnny was probably 65 years of age. I was just a young teenager at the time. And he started bawling his eyes out. I felt terrible. I said, “Johnny, why are you crying?” His employer, the students, his supervisor, nobody’s ever come up to him and said, “Thank you for what you’re doing. I really appreciate it. You’re doing a great job.” Nobody’s shown him any recognition. He was blown away. Needless to say, after that we had the cleanest floor, the cleanest bathroom in the 27-storey building. I realized the correlation between recognizing and appreciating employees, and the impact it has on their morale and satisfaction.

State of the industry

Vanessa: The fact that you still know his name all these years later shows what an impact that experience was. Let’s switch gears a little bit and talk about the industry because it’s ever evolving these days. What do you think of the state of the industry? How has it affected you?

Randy: I’d say the biggest change in the industry over the past 38 years is the evolving legislation. And there’s a lot of legislation that’s constantly evolving, both municipally and provincially. Even federally compliance has had a very big impact on how we do business. Municipally there is a greater impact, provincial is a little bit more macro. But our site staff only have so much bandwidth, and our site staff are overwhelmed with compliance and benchmarking and recordkeeping. It’s really impacting their day-to-day activities. It’s become increasingly challenging because we only have so much bandwidth.

Advice

Vanessa: Fair enough. For somebody getting into this industry or who’s just starting out, if you could give them any advice, what would you tell them?

Randy: I would say make integrity a priority. Be yourself. Be your authentic self. Embrace

challenges because they become learning opportunities whether they’re good or bad. Always take personal ownership and responsibility. Strive to make a positive difference and have a positive impact on people and your customers, which are your tenants.

Vanessa: I love that. Let me ask you, Randy, knowing everything you know in life now, if you were to go back and give a piece of advice to your 12-year-old self, what do you think you’d say?

Randy: Well, to be facetious, maybe I shouldn’t have carried around that heavy backpack to school because it could impact your back. But I would say understand your values and understand who you are and stay true to yourself. Don’t let any influencers of life impact who you really are. Find what you’re passionate about. Find what puts fire in your belly and pursue it.

The future

Vanessa: That’s interesting. So where do you see yourself in five years?

Randy: I see myself working full time. I’d like to give back to the community. I currently mentor widows and widowers who are raising their kids by themselves. We’ve done extensive fundraising for cancer research and other charities. I’d like to sit on some boards and committees for nonprofit organizations, and for kids with special needs. I’ve done some fundraising for the Geneva Centre for Autism. I have a very close friend who has a son who’s on the spectrum. He is the most appreciative and happiest guy I know. I think these kids with special needs are largely undervalued in society. For me, it would be very rewarding to help maximize the opportunities and the recognition for this undervalued segment of society.

Vanessa: I love that, Randy. As a mother of a son with autism, I hope that is something you do in the future. That is all great advice. It’s been nice sitting down and talking with you today.

Randy: Thank you.

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Immigration has “slowed” but the housing situation has gotten worse

By David Gargaro

Much of Canada’s population growth has been due to increases in immigration. According to Immigration Refugees and Citizenship Canada (IRCC), from 2021 to 2023, approximately 1.3 million people became permanent Canadian residents, which far exceeded target levels. The federal government has since shifted course, aiming to reduce these figures by capping the number of international student permits and allowances for temporary foreign workers. However, this has done very little to stem the tide of people making Canada their temporary or permanent home. The already strained housing market cannot keep up. The housing situation has worsened to the point where there is now increased migration of people looking for more affordable housing in other provinces.

Immigration growth and housing starts

The Federal Liberal government’s immigration policy has significantly increased the number of immigrants, as well as overall population growth. According to the Bank of Canada, the number of people over the age of 15 will increase by 3.3 per cent this year, up from 3 per cent from last year. This is one of the fastest paces of population growth in the world. While the federal government has changed direction and has implemented (or plans to implement) policies to reduce the proportion of non-permanent residents entering the country, population growth has not decelerated at the expected rate. In fact, the Bank of Canada estimates non-permanent residents make up 6.8 per cent of the Canadian population (higher than the projected 5 per cent), and that number will continue to grow in the short term.

The federal government’s immigration policies and plans to increase affordable housing are in

conflict. Trudeau set a goal of adding 3.9 million new homes by 2031 to help tackle the housing crisis. In 1972, the population of Canada was 22 million, and approximately 220,000 new homes were built. In 2023, the population is 40 million, and housing starts were slightly higher than that. To reach their 2031 goal, we will have to build 550,000 new homes per year, which seems extremely unrealistic. In 2021, there was a record number of housing starts at 270,000. That number dropped in 2022 and 2023 amid higher interest rates. RBC Economics predicts housing starts will be 251,000 this year and 273,000 in 2025. As you can see, the numbers don’t add up.

Canada has a shortage of skilled tradespeople, who are necessary to accelerate housing construction beyond levels never before seen in the country. Last year, Immigration Minister Marc Miller announced a targeted selection program to speed up permanent residency for immigrants with trade skills and experience. According to government data, admissions of permanent

residents with carpentry, plumbing, and electrical skills increased 29 per cent in the first three months of 2024 versus last year’s quarterly average. While this will add skilled labour to the workforce and help to accelerate home building, all these people (and their families) will also need housing. Construction has not kept pace with the influx of new residents.

Impact of immigration and migration on rental housing

Immigration rates have reached record levels. However, the economy, job market, housing affordability, and other factors may be driving immigrants back home and to other provinces than where they settled. According to an Angus Reid Institute survey, two in five immigrants are considering leaving their province of residence due to the unaffordability of housing. Many are moving to Alberta or the United States. In fact, 28 per cent of all surveyed Canadians are considering migrating out of their province of residence for the same reason. This number increases to 39 per cent for immigrants who have lived here for less than 10 years.

BC and Ontario have seen housing costs soar, and most of the migration is happening out of these provinces. More than 40 per cent of Toronto residents are thinking of leaving Ontario, while 33 per cent of Vancouverites are planning to leave BC. According to a BMO report, Toronto, Montreal, and Vancouver has lost more than 130,000 people to interprovincial migration than they gained from 2022 to 2023.

In 2023, the rental markets in Edmonton and Calgary grew by 4 per cent and 6 per cent, respectively.

Alberta

The Alberta Residential Landlord Association (ARLA) recently published a report entitled “Alberta’s Rental Market Dynamics and Policy Landscape.” According to their research, net migration increased by 185,977 people in 2023, with 70 per cent consisting of international immigrants and 30 per cent moving from other provinces. Since 2022, inter-provincial migration has increased by 68 per cent, outpacing the growth in international migration, which increased by 54 per cent.

There has been a significant increase in the number of young adults to the province, who are drawn to Alberta by job opportunities and lower cost of living. This has led to a significant increase in housing demand and rental rates. The rental supply in Edmonton and Calgary has grown more quickly than other cities. In 2023, the rental markets in Edmonton and Calgary grew by 4 per cent and 6 per cent, respectively. Compare this to Toronto, which decreased by 1 per cent, and Vancouver, which increased by 3 per cent.

Alberta has an issue with the declining supply of social housing, which is in great demand from interprovincial and international immigrants. Federal support for social housing in Alberta has declined, with about three-quarters of existing social housing units built prior to 1987. At present, 16 per cent of Edmonton’s population is in core housing need, and only 10 per cent have access to social and affordable housing.

As per the report: “This highlights a disconnect between housing demand and the construction of new social housing, particularly with a significant drop post-2020. From 2018 to 2023, Calgary Housing Company, Calgary’s largest affordable housing provider, saw their waitlist grow by 18%. The City of Edmonton has also reported increased waitlists for housing programs and affordable housing.”

“Saskatchewan remains one of the most affordable provinces to rent a home and this affordability is attractive to new Canadians looking for a lower cost of housing...”

Saskatchewan

As of April 1, 2024, Saskatchewan’s population reached 1,231,043, which is an increase of 2.5 per cent from the year prior. This equates to 30,000 new people moving to the province. From January 1 to April 1, 2024, net international migration was over 7,500, while net interprovincial migration declined by 1,257. According to the data, rental housing demand is being driven almost entirely by international migration.

“Saskatchewan remains one of the most affordable provinces to rent a home and this affordability is attractive to new Canadians looking for a lower cost of housing,” said Cameron Choquette, CEO, Saskatchewan Landlord Association (SKLA). “The rental market continues to experience significant demand across all areas of the province, even in our smaller centres that have traditionally had higher vacancy rates. Rental housing providers are continuing to build units in Saskatoon, Regina, and Prince Albert and smaller centres are reviewing incentive programs to entice builders and developers to construct more units so that they can attract newcomers to their communities.”

To help address the increase in interprovincial migration, the federal and provincial governments must focus on helping rental housing developments to become more financially viable.

This includes reducing government fees and taxes, improving permit timelines, and eliminating red tape and operating regulations. Supplying more rental housing units will help Saskatchewan to capitalize on international migration.

“Newcomers need access to a diverse selection of housing and we want to see a healthy housing continuum that has that,” said Choquette. “If Saskatchewan isn’t able to build sufficient rental housing units to meet demand, the province will not be able to capitalize on our population growth and retain people to live, work, and raise a family.”

Ontario

Both immigration and interprovincial migration have affected Ontario’s housing situation, but in different ways. In 2023, Ontario had an influx of 199,297 new immigrants, which was three times as many immigrants who settled in British Columbia (the next highest province). On the other hand, Ontario has been losing residents to other provinces in recent years. However, from July 1, 2022 to June 30, 2023, 41,929 more people migrated out of Ontario to other provinces. That said, population growth due to immigration was nearly five times the level of population loss due to interprovincial migration.

“Immigration has had the bigger impact to demand for housing in our province,” said Tony Irwin, President and CEO, Federation of Rental Housing Providers of Ontario (FRPO).

“Ontario has lost residents when specifically focusing on interprovincial migration. This is primarily due to the housing affordability challenge in our province relative to others in Canada."

This has helped reduce some demand-side pressure that would have otherwise existed for housing in Ontario in an already supplyconstrained market.”

Although interprovincial migration is not putting pressure on the Ontario housing market, increased immigration is requiring the need to invest in measures to build more rental housing. FRPO and other rental housing advocates have encouraged the Ontario government to invest in efforts to improve the conditions for building more housing in the province.

Cameron Choquette

“Some of these measures include continuing to remove government fees and charges for all rental housing projects; accelerating the path to approvals by creating more ‘as-of-right’ zoning frameworks, including for infill development; providing density and height bouses for rental housing projects to better compete with condominium projects, which traditionally have been more lucrative to build; and creating an operating climate that ensures rental housing continues to be a feasible business for operators in the province,” said Irwin.

“Immigration has significantly impacted Nova Scotia’s rental market, particularly in the Halifax Regional Municipality (HRM) and Sydney, where universities and colleges aggressively targeted international student for enrollment...”

Nova Scotia

Over the last few years, there have been significant swings in the provincial population due to shifts in international immigration and provincial migration. According to Statistics Canada, from July 1, 2022 to July 1, 2023, Nova Scotia’s population increased by 33,249, a 3.24 per cent increase. This was the second fastest year-over-year growth in Nova Scotia’s population since 1951. Since ending a period of population decline on April 1, 2015, Nova Scotia’s population has increased by 123,314. Immigration from other countries has been the strongest contributor to

Nova Scotia’s population growth, with 12,303 immigrants arriving in the province over this period.

“Immigration has significantly impacted Nova Scotia’s rental market, particularly in the Halifax Regional Municipality (HRM) and Sydney, where universities and colleges aggressively targeted international student for enrollment,” said Kevin Russell, Executive Director, Investment Property Owners Association of Nova Scotia (IPOANS). “Since 2019, Nova Scotia’s vacancy rate remained around 1 per cent, and in HRM, it has been less than 1 per cent. Interprovincial migration didn’t have as large of an impact on rental properties as most who came purchased properties in rural communities.”

This period has also seen significant in-migration from other provinces. Since July 1, 2022, Nova Scotia received 26,189 interprovincial migrants. In-migration is strongest in the spring months and has increased in recent years. Most of the migrants came from Ontario. Conversely, during the same time period, 17,663 Nova Scotia residents left the province, most of which left for Ontario, Alberta, and New Brunswick.

“Historically, Nova Scotia experienced outward migration as university and college graduates left the province to find work,” said Russell. “Those working in trades often went to the Alberta oil patch flying back and forth until they decided to move their entire families, including extended family members. Outward migration changed during the COVID-19 pandemic with the advent of the work-from-home model. Nova Scotia became a desirable place to live and work, especially for those from cities with high living costs, who sold their real estate holdings to settle in the province.”

Kevin Russel

Tony Irwin

Nova Scotia Premier Tim Houston is bullish about immigration. He publicly announced a goal of reaching two million people by 2060. He has stated the benefits of immigration outweigh the drawbacks. Houston believes immigration will help to address declining birth rates, attract a younger and more educated workforce, and attract more healthcare professionals and tradespeople. However, Nova Scotia has a housing and affordability crisis, with vacancy rates around one per cent and rental rates increasing at unprecedented rates.

“IPOANS believes that current mass immigration policies are ineffective due to the lack of housing and healthcare services,” said Russell. “Until Nova Scotia implements policies to incentivize the construction of rental units and fix the broken healthcare system, immigration policy should focus on targeting professional workers needed to fill positions in healthcare, trades, homecare, agriculture, and other industries facing worker shortages.”

However, the federal government’s change in immigration policies has affected Nova Scotia’s student rental market. Recent measures to reduce international student immigration have had an immediate impact on rental property owners who rely on this demographic. A recent report showed a significant drop in international students,

with the province accepting fewer than 4,000 international students for the upcoming year, down from last year’s 19,900.

“IPOANS members have noticed in the past few months that it is taking longer to lease units, and those targeting students reported an increase in vacancies,” said Russell.

Conclusion

The federal government might claim to have clamped down on immigration, but they have not done enough to either reduce the number of temporary and permanent residents or increase the housing supply. While immigration has fueled economic growth, current immigration numbers have outpaced housing development, leading to lower vacancy rates in many regions. Alberta and Nova Scotia are experiencing significant migration, further straining their housing markets. Government policies must align immigration goals with effective housing strategies, as well as close up loopholes in the system, to ensure the supply of affordable housing meets Canadians’ needs.

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August 2024

Laura Holland: Paving the way for women in real estate

BGO enters partnership to manage Oxford’s multifamily portfolio

Oxford Properties Group entered into a residential property management partnership with BentallGreenOak (BGO) to manage Oxford’s 5,000-unit multifamily portfolio. The properties include 15 residential buildings located in the Greater Toronto Area and Montreal.

Under the agreement, Oxford’s permanent residential site employees will transition to working under BGO to ensure continuity of service for the buildings’ residents. Oxford will retain control over asset management, capital expenditure decisions, development, and investments that involve the portfolio. The partnership aligns with Oxford’s plan to implement a different operating model for its residential assets. Oxford will continue to manage its office, retail, and industrial properties.

As per an announcement from Tyler Seaman, Executive Vice President, Canada, Oxford Properties: “BGO is a highly regarded, institutionalquality residential property manager who will continue to provide the best possible class of service to our residents. 100% of our property management site team members will be offered employment with BGO, which ensures continuity for our residents. An important part of Oxford’s decision to partner with BGO was the technology and operational advantages they possess in the residential sector.”

Oxford’s partnership with BGO provides many significant benefits. BGO possesses operational strengths in the residential real estate industry. Their expertise in residential property management will help to maintain and improve the service provided to residents. BGO also has a peoplefirst culture, which is evident in the company’s commitment to provide Oxford’s residential team members with career growth opportunities. The partnership will expand BGO’s residential property management footprint in Canada. It’s portfolio now includes more than 12,000 managed units across 46 properties. It also establishes BGO as one of Canada’s leading third-party

property management providers. BGO Living is the residential services division of BGO, and is responsible for providing operational services to these communities.

Oxford Properties Group is a global real estate investor, developer, and manager. Founded in 1960, Oxford and its portfolio companies manage approximately C$85 billion in assets across the world on behalf of investment partners. The company portfolio includes logistics, office, retail, multifamily residential, life sciences, credit, and hotels. Oxford invests in properties, portfolios, development sites, debt, securities, and real estate businesses, and has more than 70 projects under way across all major asset classes. Oxford is owned by OMERS, the Canadian defined benefit pension plan for Ontario’s municipal employees.

BGO is a global real estate investment management advisor and a provider of real estate services. The company has more than 750 institutional clients and manages more than USD$83 billion of assets, including office, industrial, multi-residential, retail, and hospitality properties. BGO has offices in 27 cities across 13 countries, and is part of SLC Management, the institutional alternatives and traditional asset management business of Sun Life.

Laura Holland: Laura Holland:

Paving the way for women in real estate

By David Gargaro

Laura Holland, Principal of BentallGreenOak (BGO), began her career in the real estate industry after graduating from university. She forged a difficult path, starting out as an assistant property manager and climbing the ranks in what was a male-dominated industry at the time. Laura credits various mentors for pushing her out of her comfort zone, as well as teaching her what she needed to do to thrive in this industry. She also believes in the importance of family time and finding balance in one’s life to achieve true success.

Vanessa Topple, Anchor and Producer of RHBTV and BoldTV, spoke with Laura over a glass of wine and some charcuterie about getting into the real estate industry, the importance of mentors, balancing work with family, overcoming challenges, and more. To follow is an edited transcript of their discussion.

From the beginning

Vanessa: I know it’s been a few months since I’ve seen you. It was Women’s Day in March. One of the things I loved is you have such a passion for inspiring and helping others. Where did that passion come from?

Laura: I do love what I do. I love going to work every day. I have found that niche. It didn’t start off like that. I graduated with a psychology degree from the University of Western Ontario. At the time when I graduated, there were really no jobs in my field. As you know, I still lived at home and I needed a job. I went for an interview to be a receptionist. By the end of the interview, they asked me, “Do you want to be an assistant property manager?” And I said, “Oh, sure,” not knowing what any of it was about. And the next Monday I started.

Vanessa: So that was your start in the real estate industry?

Laura: That was my start. I did just jump in with two feet. Did I feel prepared at all? Not a chance. But my personality is about jumping in with two feet and just going for it.

The importance of mentors

Vanessa: That’s amazing. You must have had a mentor in those early formative years. Who was your mentor?

Laura: I‘ve had many mentors. When I first started out in London, I was there for a couple of years, and then I moved to Toronto. I wanted to come to the big city. I worked for a company called Allied Canadian, and I had a female boss over there. She was probably my first real mentor, and she was tough. I remember her giving me a report to write. I’d do it and take it to her and she‘d mark it down and say, “Nope, here you go. Make some changes.” I would change it again and bring it to her, and she would say, “Okay, here are my comments. Do it again.” Over and over again. And at that time, I didn‘t know how important that was. But she taught me to be the best that I could be. And I became a good business writer. And now I

tell people I do the same thing to my team. I call myself the closet English teacher. I didn‘t realize how important that was at the time, but I do now.

Vanessa: You had some male mentors as well, I understand. I know you had some challenges at the beginning as the industry was male dominated. Tell me a little bit about that.

Laura: Well, I’ve been in the industry for over 30 years. When I started, women in this industry were receptionists and administrators. Women in the executive roles didn’t really exist. A lot of the times I was at a table where I was the only woman. And I was lucky to be that woman because I did have male mentors that gave me that opportunity. And hopefully they saw something in me. I did anything and everything they asked. They pushed me out of my comfort zone. I really did have some amazing mentors. I worked for Jason for probably eight years. He took me to a company called Resurrect. That is where I really learned what a good company culture was. We were small, but we were a family. I did absolutely everything and anything, whether it be operations, acquisitions, renovating a lobby or a corridor.

Type-A personality

Vanessa: It’s obviously paid off in spades. I know you love to tell people, and you’re very proud of your Type-A personality. Tell me about that.

Laura: If my parents could tell you, Type-A from day one. Oldest child growing up. We really didn’t have a lot. My mom stayed at home with my brother and I till I was probably 14. My dad was a 100% commission salesman. They taught me what it’s like to work hard. And they instilled in me, in order to succeed, you needed to work hard. My mom knew how to stretch a dollar. We never went out. We were always at home. She volunteered at the school. My dad probably took apart our house and rebuilt it himself. They really did instill that in me. The expectation that they gave my brother and I was very high. There was no not succeeding and doing the best that you can be.

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Family

Vanessa: They really pushed you to be your best, and it’s clearly worked. Tell me a little bit more about your parents. What are they doing now?

Laura: My parents are retired and living in Niagara. However, my mom at 80 plus years probably has more energy than I do. They have helped us so much. When we had small kids, they were always available. My parents would come if my husband and I both worked, or if the kids were sick, or I was traveling. I remember my husband was at home. He needed to get to work. He woke up with a twoyear-old child throwing up. I was away and he just called my mom and said, “Okay, I need you here.” She was two hours away and both my parents were there within 2.5 hours and took care of our daughter.

Vanesa: That’s amazing. I know you now have a beautiful family of your own. Tell me a little bit about them now.

Laura: I’ve been married for 25 years to my husband Peter. We have two amazing children. Avery, who is 23, and Nate, who is 18. My husband doesn’t work in the real estate world, but he has real estate in his field. He works in risk at RBC, so real estate is part of his job. So we do have a lot to talk about.

Overcoming challenges

Vanessa: That’s a nice synergy for both of you to have that. You’ve been in this career for 30 plus years. You’ve had some challenges in the industry and in business, but I know you’ve also had some personal challenges as well. Talk to me a little bit about that.

Laura: Probably one of the most personal challenges I had was breast cancer, during COVID as well. I had to go to the hospital, have surgery, and get treatment by myself. At that time, guests weren’t allowed in the hospital. I did all that

myself. It was hard. But I think having my type of personality, plus an extremely supportive husband and an extremely supportive boss and company, I was able to get through that. I was always positive. I worked through everything. We were still working at home. And for me, my mind needed to stay busy.

Vanessa: You have to do what was right for you. Everything is good now?

Laura: I am great now.

Work-life balance

Vanessa: I’m glad to hear that everything is clear and that you’re in good health. What are you doing when you’re not kicking ass at work?

Laura: Family is extremely important to us. We work hard, but we are a very, very close-knit family. Through our kids’ younger years, until very recently, they ski raced, and we were a part of it. My husband and I both volunteered for our kids’ ski racing club. We were part of our kids’ daycare boards. My husband was part of our son’s hockey teams. So we were always involved. And I think that helped with having a strong personality. It helped us get through things and built our family and taught our kids a lot about how they need to succeed.

Vanessa: You talk a lot about being at your cottage. That I’m assuming is your place of serenity?

Laura: It is. I always say it’s my happy place. We are very lucky to have a cottage. We spend most weekends there and time in the summer. Our kids have grown up working because we did. We believe in having them work as soon as they can. They both have jobs up there. They’re there for the summer. But there is nothing like having a glass of wine on the dock, at sunset with my husband. It really is my happy place. Once you drive up north, you feel relaxed.

State of the industry

Vanessa: Let’s talk about the industry because there’s a lot going on. Tell me your thoughts on the current state of the industry and how it affects you.

Laura: You know, when I started, there were not many women, but I look at what has happened in 30 years and you have had some amazing women on this program. They have helped really mold this industry. I cannot believe how many women are in executive roles now. Our company BGO is part of that. It’s an amazing culture. We have some bright, strong women at the helm of it. It’s so amazing.

Words of advice

Vanessa: If you were to offer any words of wisdom or encouragement to somebody starting out in this industry, what would they be?

Laura: I would say don‘t be afraid. Voice your opinions. If you are not allowed to voice your opinions, then you‘re in the wrong place. There is no bad question. You should always ask questions. I joke with my team that I will probably ask the most questions. I don‘t feel any of them are stupid because I‘m learning every day and I learn from the younger generation. There‘s no way that everybody knows everything. It is about putting that foot forward and having a strong work ethic. I think that‘s extremely important. And doing what‘s right for you.

Company culture

Vanessa: I know you love your company. You said the culture there is amazing. Is that something you would tell people: to make sure the they have a good company culture?

Laura: Absolutely. It does make a difference. I’ve learned that through my career. Some people will jump to companies for a better pay raise. I’m not going to say that I haven’t done that. But I think I have learned that’s not always the best thing to do. How your company treats you and how you get treated by your boss or your team and how your team melds. I have worked for multiple bosses more than once. I work now with the most amazing mentor. I worked with him years ago and now I work for him again at BGO. We make a great team. We are very different. He allows me to be who I am. He allows me to push things. He pushes me. He probably taught me to be a little bit softer. He melted my Type-A personality. I have an amazing

team and an amazing job right now that I love to go to work.

The future

Vanessa: I can hear it in your voice when you talk about your business and when you talk about your work. You can see it just emanates from you. Where do you see yourself in five years?

Laura: I’m nowhere near retirement. I do love what I do. I still want to do what I do. I love property management. I love the company that I work for, as I said over and over again. I want to do more of this. I think I’m lucky. My team’s lucky in that we are a very close-knit team, and we’re able to do what we do, but our company does push us to be the best that we can. Also, it provides us with some of the extras. We have employee-led groups. I’m involved with the women’s network that we formed three years ago. We organize leadership conferences for women in our business to be better. We bring in people to talk to them about careers, about health, about balance. Our company allows us to do that. Just a month ago, some of our younger leaders organized it this year and we had 200 BGO women at this event.

Final words

Vanessa: That’s incredible. Laura, you’ve had an amazing career. You have an incredible family. It’s very easy to see why you’re a real estate legend. You are one heck of a powerhouse. Thank you so much for joining me today. It’s been so nice sitting down and chatting with you.

Laura: Well, thank you for asking me to be involved. This has been amazing.

CFAA Advocacy Day

By Tony Irwin, Interim President, CFAA

In late April, CFAA held their first major advocacy days where CFAA members from across the country gathered in Ottawa for 20+ meetings with Ministers, Deputy Ministers, senior staff, and a Senator. Representing rental housing needs from coast to coast, CFAA brought a large presence to Parliament Hill for a very productive and successful three days.

CFAA successfully held conversations with all three major political parties, participated in election platform development, presented regional concerns to the Saskatchewan caucus, and directly responded to Budget 2024 with praise and concerns. Through these conversations, CFAA had the opportunity to meet directly with the Minister of Housing and the Chief of Staff to Minister of Finance to provide constructive feedback and insights into measures announced in Budget 2024. Not only were they able to provide feedback, through these conversations, CFAA received key insights into the rollout of the capital gains changes, as well as other key tax measures announced in Budget 2024.

CFAA also shared their concerns with the Official Opposition Leaders Office, the Shadow Minister for Housing, Saskatchewan Caucus, and Conservative members of the Finance Committee. These conversations gave insight to how the Conservatives planned to react to the capital gains, insights to their platform development, and continue to solidify CFAA’s role as a trusted stakeholder.

If you are interested in participating in CFAA’s next Parliament Hill Lobby Day, please reach out to us!

Committee

On June 6, Interim President Tony Irwin was invited to speak at the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) on their study around Federal Housing Investments. CFAA was the first market housing provider to provide testimony to the committee in relation to this study and made sure to echo the importance of housing.

NATIONAL OUTLOOK

“Housing is not a partisan issue. Housing is a human issue ... We need to say yes to more housing, including purpose-built rental housing and push back on those who say no. There will always be more time to debate and study. But the time to act is now. Future generations are counting on us.” ~ Tony Irwin, Interim President, CFAA

Consultations

As a trusted stakeholder, CFAA has been at the table for a variety of consultations this year, including an invitation to participate in a roundtable with CMHC and Statistics Canada to discuss modernization of housing data collection. CFAA has already been in discussions with CMHC on this issue in response to our concerns regarding media and government focus on asking rents vs. in-place rents. This initiative directs CMHC and StatsCan to “modernize and enhance the collection and dissemination of housing data, including municipal-level data on housing starts and completions,” with a budget of $20 million over four years, starting in 2024-25. In addition, follow-up meetings have been held with Kyle Fox, Director of Policy, and Sebastian Clarke, Director of Operations for Minister Fraser, to ensure CFAA’s ongoing thoughts are shared.

CFAA has also been invited to participate in a consultation with the Ministry of Housing, Infrastructure and Communities to discuss the Renters’ Bill of Rights. Members expressed concerns regarding the current state of landlord tenant board systems; the need to have a consistent definition of affordable; and the proposed requirement for landlords to disclose rent history to give residents more negotiating power. CFAA has had followup meetings with Minister Fraser’s office on this and has kept in a constant state of communication.

Summer priorities

With the federal election slated for Fall 2025, all major parties are ramping up in preparation when it comes to touring, managing stakeholders, and securing their key platform

polices. As the parties continue to build out their platforms, CFAA has been at the forefront of being a trusted stakeholder with both the Liberals and Conservatives, including having the Opposition Leaders Office request regularly occurring meetings with CFAA to discuss rental housing.

Following the Liberals shocking defeat in the Toronto – St. Paul’s by-election, all eyes are on Prime Minister Trudeau’s future for the summer. Calls for Trudeau’s resignation has thrown a wrench into his summer tour plans, including cancelling his travel to the Calgary Stampede earlier in July. While the Liberal Cabinet and Caucus is expected to meet in the late summer and fall, caucus management will be something the centre has to actively engage with to curb more increased calls for the Prime Minister’s resignation. After the Toronto – St. Paul’s by-election, all eyes will be on the three other by-elections this summer in Quebec, Manitoba, and British Columbia.

While the Prime Minister has had to re-evaluate his summer travel plans, Conservative Leader Pierre Poilievre has already been at the Calgary Stampede, the GTA, and Montreal. The Conservatives have made it clear that their priorities over the summer will stay true as they continue with their “Axe the Tax, Build the Homes, Stop the Crime, Fix the Budget” slogan. But in addition to this, they have also continued to campaign against the proposed capital gains tax increase from the Liberals. As Pierre Poilievre continues to travel across Canada, he will be focusing his time on key target areas such as the Greater Toronto Area and the Greater Vancouver Area, where the Conservatives believe they can pick up the most seats.

The Standing Committee on Finance (FINA) is hosting their annual Pre-Budget Submission consultations this summer, closing on August 2. Pre-Budget Submissions offer organizations like CFAA the opportunity to provide public recommendations on what they would like to see in Budget 2025. Following the FINA consultations, the Department of Finance will open their submissions in early 2025.

2024 CFAA

R E N T A L H O U S I N G C O N F E R E N C E

B U I L D I N G S T R O N G E R C O M M U N I T I E S

On behalf of the CFAA Board of Directors and staff, we extend our sincere gratitude to the 350 attendees who joined us for the 2024 CFAA Rental Housing Conference in Toronto This year’s theme, "Building Stronger Communities," was especially relevant given the critical need for housing across Canada and the vital role rental housing providers play in fostering strong and stable communities.

Over the past year, CFAA has undergone a significant transformation, with a dedicated new team committed to elevating CFAA’s presence within our industry and among government decision-makers in Ottawa. Our progress has been substantial, and with the continued support of the CFAA Board and our industry peers, the sky is the limit

We offered an exciting program designed to educate and entertain. Attendees heard from elected leaders across all levels of government, enjoyed an economic update from Benjamin Tal, and participated in a diverse array of educational panels on topics such as labour and innovation, redefining work culture, AI, ESG initiatives, and more. This year also marked the inaugural presentation of the CFAA Lifetime Achievement Award to Peter Altobelli, honouring hi s outstanding contributions to rental housing in Canada

Our revamped supplier showcase was a resounding success, providing an excellent opportunity to connect with our valued industry partners. We are deeply grateful for the strong support of our sponsors The feedback on this year’s event has been overwhelmingly positive, and we are excited to build on this year’s success. Thank you once again for join ing us, and we look forward to welcoming you to next year’s conference in Vancouver. Stay tuned for more details soon

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President’s message

With summer in full swing, Ontarians are looking forward to welldeserved time off. However, the Federation of Rental-Housing Providers of Ontario (FRPO) remains hard at work. We continue to advocate for more purpose-built rental housing supply. FRPO has played a significant role this year in highlighting the need for more housing and encouraging support for purpose-built rentals.

Our Let’s Build Ontario campaign launched the message “Say Yes!” this spring. Combining digital ads and social media content, the campaign stressed the importance of saying yes to more housing to address the housing crisis. The campaign helped to expand our supporter base and generated over 1,900 personalized emails to municipal leaders, urging them to support more housing.

FRPO continues to focus on engaging the government. We position ourselves as industry experts and partners in increasing the supply of purpose-built rental housing. In April, we welcomed the federal National Housing Strategy and actively contributed to policy development, appearing before the Standing Committee on Human Resources, Skills, and Social Development and the Status of Persons with Disabilities. Provincially, we continued our dialogue with Minister Calandra and support the Cutting Red Tape to Build More Homes Act, which aims to remove barriers and streamline development of purpose-built rentals.

FRPO remains intent on advocating for increased rental housing supply. Every Ontarian deserves accessible and affordable housing, with purpose-built rentals essential to meeting this need. We will keep working with our partners, members, and stakeholders to help achieve tangible results.

Ontario’s goal of building 1.5 million homes over the next decade is ambitious. FRPO will help to ensure purpose-built rentals play a central role in achieving this target. I am confident our industry will continue to make significant contributions.

Have a great summer!

Tony Irwin, President and CEO, FRPO, and Interim President, CFAA

Ontario government helping to create more than 1,000 new student housing spaces

On July 30, Paul Calandra, Minister of Municipal Affairs and Housing, announced that two new residences will be built at Western University to house more than 1,000 students. The development is part of the Ontario government’s efforts to build new student housing more quickly, as per the Cutting Red Tape to Build More Homes Act, 2024. It will help to address the university’s specific housing needs while freeing up affordable homes for individuals and families in the City of London.

“Access to safe and affordable housing is crucial to the success of all postsecondary students,” said Minister Calandra. “For too long in Ontario, red tape was making it difficult for our partners to build homes. That’s why our government has been taking action to remove those barriers and make it easier to build housing of all types, including student accommodation. Today’s announcement is a testament to our government’s focus to unleash opportunity across our province.”

Publicly assisted universities in Ontario have been exempted from the Planning Act to enable them to more quickly build student housing and address the needs of their student populations. These universities are not subject to many municipal planning approvals, which can reduce time for approvals, eliminate planning application fees, and remove barriers to building higher density student residences. All publicly assisted colleges and universities are also required to publish student housing policies to improve information and provide resources for students seeking housing options.

The Cutting Red Tape to Build More Homes Act, 2024 helps to reduce red tape with the goal of supporting home construction. Red tape is a significant barrier to getting shovels in the ground; the legislation helps to streamline approvals and increase housing and infrastructure development across Ontario.

Ontario capping rent increases at lowest rate in Canada

In case you missed the announcement, Ontario is setting the annual rent increase guideline for 2025 at 2.5 per cent. At present, this is the lowest rate in the country and significantly lower than the average inflation rate of 3.1 per cent. The rent increase guideline is the maximum amount a rental property owner can increase rent during the year for most tenants without requiring approval from the Landlord and Tenant Board.

The rent increase guideline is based on Ontario’s Consumer Price Index, which is a measure of inflation calculated by Statistics Canada based on data reflecting economic conditions over the past year. As per the Residential Tenancies Act, the 2.5 per cent rent cap is set to help protect tenants against rising interest rates that would lead to higher rent. If rents were tied to the rate of inflation, the rent increase guideline would have been set to 3.1 per cent in 2025.

Condo rents fall for first time in three years

According to a report from Urbanation, condo rents on new leases in the Greater Toronto and Hamilton area (GTHA) have declined for the first time in three years. Average condo rents on new leases decreased by 1.2 per cent in the second quarter compared to last year. From April to June, condo rents averaged $3.97 per square foot, or $2,723 for a 686-square-foot apartment

Shaun Hildebrand, president of Urbanation, said the decrease in rents is primarily due to the increase in condo completions. However, the trend is not likely to continue due to the rapid decline in new condo sales and starts.

For purpose-built rental apartments completed since 2000, rents increased 2.2 per cent from last year to an average of $4.08 per square foot. This includes a decrease of 0.5 per cent for Toronto rents and a 7.7 per cent increase across the GTHA.

Ontario needs more homes. It’s time to “Say Yes”

The Let’s Build Ontario “Say Yes” campaign concluded on a high note, successfully rallying countless Ontarians to urge their municipal representatives to support more housing. This widespread call to action underscores the severity of the housing and affordability crisis and the urgent need for more housing supply of all types.

Campaign highlights include reaching almost 39,000 unique users, generating over 200,000 impressions, and achieving over 8,100 link clicks. These metrics show how well the campaign resonated with Ontarians, emphasizing the core message of supporting more rental housing.

The campaign also expanded the Let’s Build Ontario supporter base by nearly 800 individuals, priming them for future advocacy efforts to urge all levels of government to remove barriers and build more housing. The “Say Yes” campaign facilitated direct connections between supporters and elected officials, resulting in over 1,900 emails sent to advocate for urgent action on the housing crisis.

Strategic partnerships played a crucial role in the campaign’s success. Earlier this year, FRPO partnered with Regina-based Namerind Housing Corporation to enhance the campaign’s reach and impact. This collaboration led to a co-authored op-ed by FRPO’s Tony Irwin and Namerind’s Robert Byers on the federal government’s Housing Accelerator Fund, published in Storeys.

For more information on the campaign or to get involved, please visit https://letsbuildontario.ca. Let’s build Ontario together.

Upcoming events

2024 Women in Rental Housing Luncheon

August 22, 2024 11:00 am – 2:30 pm

This year’s Women in Rental Housing Luncheon will take place on Thursday, August 22 at the Old Mill. This event is sponsored by Wyse Meter Solutions and brings together women in the industry to network, learn, and share their experiences.

This event features the following:

• Victim Services Toronto provides traumainformed support and advocacy in the moment for any person in Toronto who has experienced crime or sudden tragedy. They also work to prevent violence through community engagement.

• Brandi McIlvenny Clarke will lead a dynamic discussion about the positive impacts of incorporating wellness and conscious leadership into workplace culture.

• What Is Wellness + Conscious Leadership integrates maintaining physical and emotional health with leadership that emphasizes selfawareness, empathy, sound decision- making, and fostering a positive environment in all areas of your life.

$110 per person (members), $220 per person (nonmembers)

Buffet lunch is included with your registration.

2024 FRPO MAC Awards

December 5, 2024

5:00 pm - 9:00 pm

The MAC Awards is the most important annual event for our members and recognizes the leaders in Ontario’s vibrant rental housing industry. We are so excited to celebrate this year’s MAC Awards in person and invite you to be part of it! This is a must-attend event for real estate and property management firms, large and small alike. The 2024 MAC Awards will be held in conjunction with the Buildings Show and PM Expo. We hope you will join us for the industry event of the year!

Find out more about these awards by visiting www.frpomacawards.com.

Past events

2024 FRPO Charity Golf Classic

July 23, 2024

9:00 am – 6:30 pm

This year’s FRPO Charity Golf Classic took place on July 23 at Lionshead Golf Club in Brampton in support of Interval House. Over 300 members enjoyed a fun-filled day of networking and golf for a great cause. We are proud to announce that this year’s tournament raised $70,000 to support the women and children fleeing from intimate partner violence. Thank you to our members, sponsors and volunteers who made this event a tremendous success. FRPOis proud to work with Interval House and since 2007, has raised over $850,000 to support the centre. Ontario’s

FRPO is the largest association in Ontario representing those who own, manage, build and finance residential rental properties.

For membership inquiries please contact Lynzi Michal, Director, Membership & Marketing Federation of Rental-housing Providers of Ontario 801-67 Yonge Street, Toronto, Ontario M5E 1J8 416-309-8744 lmichal@frpo.org www.frpo.org

Yes, we can!

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

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

Kazi Shahnewaz Director, Business

Development

Office: 416.340.1600 x504

C. 647.887.5676

k.m.shahnewaz@metcap.com

www.metcap.com

Hot Topics:

HDAA discusses the Rental Housing Protection Bylaw and Adequate Temperature Bylaw, as well as encampments in Hamilton. pg. 49

EOLO discusses mandatory organics recycling, rent guideline increases for 2025, and the environmental loan program for rental housing providers. pg. 53

LPMA discusses the problem of illegal sublets and how landlords can protect against them. pg. 57

IPOANS discusses advocacy, education, membership services, and more. pg. 61

The Member Associations

Prep your building for heating season

Heating season is around the corner. Make capital improvements now to help save energy† and reduce operating costs. With the Affordable Housing Multi-Residential Program, you receive financial incentives up to $200,000 for boilers, energy-efficient technologies and energy assessments. Plus, free in-suite upgrades and expert assistance every step of the way.

• Reduce energy, maintenance and operating costs.

• Improve the energy efficiency of your building.

• Enhance resident comfort, health and well-being. Why upgrade now?

Is your building eligible? This program is for: • Eligible private market-rate multi-residential buildings‡

• Shelters and co-ops

• Control costs more effectively with automated systems.

• Boilers and boiler controls

• Building automation controls

• Variable frequency drives • Water heaters • Hybrid heat pumps

Ventilation technologies

• Social, municipal and nonprofit housing providers

PRESIDENT’S MESSAGE

Summer is in full swing and the HDAA has been focusing on getting ready for the second half of the year. We have also been strategizing to combat many of the bylaws the City of Hamilton has either put in place or hopes to proceed with. The HDAA will have two more dinner meetings before the end of the year, as well as our much-anticipated trade show on October 8, which we hope will be our largest trade show yet. We hope everyone has a great rest of their summer and we look forward to seeing our members at our next dinner meeting on September 11.

- Daniel Chin, President, HDAA

Rental Housing Protection Bylaw

The City of Hamilton, the first city in Ontario to introduce a first-of-its-kind renoviction bylaw, is expanding the bylaw to prevent landlords from evicting tenants to demolish apartments and turn the properties into condominiums. On June 26, the Rental Housing Protection Bylaw, previously passed at a Planning Committee meeting, was ratified by City Council in a unanimous 14-0 vote. Residential rental properties city-wide containing six or more rental units will now require a permit from the City to demolish or convert rental properties. Landlords will also have to provide replacement units in a new development, tenant assistance, and a set level of financial compensation, including assistance with moving expenses. Similar bylaws have also been enacted in Mississauga, Oakville, and Kitchener.

Under the bylaw, landlords who issue an eviction notice (N13) to a tenant to demolish, repair or renovate a unit must now apply to the City within seven days for a renovation licence prior to starting any work. It will come at a cost of $715 per unit, with an annual renewal fee of $125. If a tenant is required to leave their unit during renovation or repair and plans to return to the unit, landlords will also need to secure temporary arrangements that are comparable to the tenant’s current unit or provide the tenant compensation in lieu. The City will know when an eviction notice has been issued so help can be provided to make sure tenants are offered supports where needed, including their right to move back into the unit once renovations are complete.

Subject to approval from the Ministry of the Attorney General, fines for non-compliance will range from $500 to $10,000 for an individual and

$500 to $50,000 for a corporation. This bylaw will come into effect on January 1, 2025 and, together with the Safe Apartment Buildings Bylaw, will see comprehensive tenant protections throughout all rental properties in Hamilton. With approximately one-third (or 34.3 per cent) of Hamiltonian households renting and an apparent 983 per cent increase in the number of N13 notices issued from 2017 to 2022, the City of Hamilton felt more needed to be done to ensure there were affordable housing options by maintaining existing affordable units in the City.

Adequate Temperature Bylaw

The City of Hamilton is still looking at an Adequate Temperature Bylaw, which if passed would make it the first municipality in Canada to see such a bylaw. It would require housing providers to provide air conditioning and ensure unit temperatures do not exceed 26°C. The idea is to put in place long-term plans to better protect vulnerable tenants against extreme heat and maintain minimum standards during heat waves. With worsening climate change conditions, health risks are magnified when adequate cooling systems are not in place. City staff are expected to report back before the end of the year on timelines of new bylaws including the Adequate Temperature Bylaw, which could go into effect for 2024.

A heat response strategy is already underway to help, and includes other actions such as the distribution of cooling kits and the opening of air-conditioned public spaces and public pools during extreme heat events. Other actions could include wellness checks by Hamilton paramedics, installation of shade structures, real-time

surveillance of health data, and free or discounted transportation during heat warnings.

More importantly, the City recently voted 12-3 to provide 200 low-income Hamilton tenants with $350 grants for air-conditioning units this summer. However, this is a temporary fix before the Adequate Temperature Bylaw comes into effect, as many councillors argue this will have minimal impact and may not cover the costs of providing air conditioning for vulnerable tenants.

Ontario Works already provides AC grants to about 50 Hamilton residents but the City’s new contribution of $52,500 will expand the program to support 200 people. The grant will be limited to those on the Ontario Disability Support Program (ODSP) and Ontario Works with a medical condition. The ability to offer the grant also relies on Bill 97’s changes to the Residential Tenancies Act, which provides for the installation and use of window or portable air conditioners in a rental unit where the landlord does not supply cooling.

Hamilton encampments

It has now been about one year since the City of Hamilton allowed encampments in many City parks, which has seen criticism from residents mostly surrounding safety concerns, with those who live in tents saying they need more support. The encampment protocol is a set of rules that governs how small encampments can exist in the City. It has a limit of five tents per encampment cluster and includes distance limits; encampments must be 10 metres away from private property and 100 metres away from schools, daycares, and recreational properties like pools. They must also be 50 metres away from any other cluster. There are approximately 70 encampments across Hamilton, with about 220 residing in tents, up from 200 last year.

Council has heard from dozens of residents living near encampments demanding they no longer be allowed in parks. Some residents say they have to regularly call 911 for people experiencing mental health crises, drug overdoses, and fighting, while others have complained about increased litter and waste, open drug use, and property damage and theft. It has been challenging for police as well who say enforcing encampments has been resource-intensive and feel they are not meeting the needs of the community or the unhoused.

Council has now directed staff to take another look at whether sanctioned encampment sites would be a possibility. Sanctioned encampments would be managed sites on City-owned land in three to five locations across the City. The City and service providers would give residents services like sanitation, electricity, and storage for their belongings. Sites will need to be able to accommodate between 30 to 50 tents, be near services (like a transit route), and offer some privacy. Staff will be looking at estimates of how much it would cost to run such sites and hopefully be reporting back before the fall. Initially, staff has advised such sites would be too expensive and resource-intensive to run; however, with impacted residents and those living in encampments being quite dissatisfied with existing protocol, council unanimously agreed they are open to reconsidering.

Past events

May 8, 2024 – Dinner meeting

The HDAA held our most recent dinner meeting on May 8 and had a great turnout for a panel discussion, which included lawyers, paralegals, and property managers. We had some engaging conversations and great tips for housing providers:

• Can you enforce grass and snow removal by a tenant while staying within LTB rules? Landlords cannot require a tenant to do any maintenance in a lease. The best way would be to sign a separate agreement where you pay the tenant for maintenance.

• When renting to a group of people and one tenant leaves to be replaced by a new tenant, should you amend the original lease? Instead of adding a new tenant to an existing lease, it is better to create a new lease. Adding to the original lease keeps rents below market and gives tenants the opportunity to take advantage of a loophole.

• Are you allowed to charge an administration fee to sublease or assignment forms? You cannot charge an administration free; only reasonable out-of-pocket costs. You can charge a transfer fee, but if a tenant refuses, they may have the right to terminate the lease.

• Who is responsible for a sewer backup when no one is at fault and the tenant’s insurance does not cover it? Is the landlord responsible to relocate tenants and cover costs? The landlord has an obligation to keep the unit in good standing and it would be well advised to do the right thing and accommodate them. However, landlords should make sure tenants have up-todate insurance that provides proper coverage as tenants are often underinsured.

• Can we expect any improvements at the LTB? Wait times at the LTB are likely not going to improve anytime soon. There are more adjudicators than before but not much has improved as they are often less experienced and slower. Hearings are being scheduled faster but still five to six months away. The government does not seem to be doing enough to reduce wait times; there may be a political reason for doing this.

• Does a child age into a tenancy if they are an occupant and a sole parent passes? In this type of situation, it is best for a landlord to act quickly as an occupant does not automatically have the right to take over a lease. However, if they continue to pay rent and you accept, then it will be deemed to be assigned to them.

• A Capital Items – Useful Life list has been making an appearance at the LTB for AGIs filed years ago. What is the process for these? These are starting to pop up as they come into effect about 15 years after AGIs. They are typically for rent reductions in accordance with useful life. If rent increases were taken by gradual steps, rent reductions should also come down similarly (e.g., 3 per cent per year). It would be important to keep a document with your useful life dates so you are prepared.

June 4, 2024 – HDAA Annual Golf Tournament

The HDAA held our Annual Golf Tournament on June 4. We had a great day of golfing and networking and were lucky to have some great weather as well. Our golfers were treated by gelato, food, and goodies by our many sponsors and we had a great raffle prize haul. We had two lucky winners for our much-anticipated wine cellar and a 50/50 putting contest winner. We are looking forward to another great golf tournament next year!

Upcoming events

September 11, 2024 – Dinner meeting

The HDAA will be holding our next dinner meeting on September 11. Make sure to mark your calendars and keep an eye out for our emails for more details.

October 8, 2024 – HDAA Annual Trade Show

The HDAA is excited to hold what we hope to be our biggest trade show this fall. Our trade show is attended by hundreds of rental housing providers and community members, as well as dozens of suppliers to the industry. Our keynote speaker event taking place right before the trade show will have some of the largest names in the rental industry. You may find more details on our website, as well as our vendor registration form.

Hamilton & District Apartment Association

Since 1960, the Hamilton & District Apartment Association has grown significantly. Our members manage over 30,000 units throughout Hamilton, Burlington, Brantford, Guelph, Mississauga, Oakville, St. Catharines and into the Niagara Peninsula. The association is a highly respected organization, sought out regularly by government, industry, media and the public. Interested? Call us or join online! Ph: 905-616-2058 Web: www.hamiltonapartmentassociation.ca

Chair’s message

First proposed 12 years ago, mandatory organics recycling is soon to begin a four-year rollout in the multi-family sector. Details of the implementation plans are set out below.

Another report comments on the 2025 rent increase guideline, which was again capped by provincial law at 2.5 per cent. A third report brings some good news for rental housing providers in low-rise buildings (buildings under Part 9 of the Building Code). There is a new and useful loan program for environmentally friendly work by rental providers.

EOLO continues to consult with City staff on the City’s water rate review. A decision will be made on a new rate structure in early 2025.

- John Dickie, Chair, Eastern Ontario Landlord Organization

Mandatory organics recycling to start soon

As expected, at its June meeting, Ottawa City Council adopted a four-tiered approach to the rollout of green bins to all remaining multiresidential properties that make use of Cityorganized solid waste collection.

As this goes to print, City Solid Waste staff expect to issue a policy change email in August to all multi-residential properties that receive City solid waste collection services. The email will advise the new requirement for organics collection, and set out the next steps of the rollout plan for organics recycling in the multi-family housing sector.

If, as a property manager, you have not received such an email from the City by the end of August, you are invited to email multires@ottawa.ca to ask for the “Mandatory organics policy change email”.

The current expectation is the second step in the rollout will be outreach by Solid Waste Services staff who will make individual contact with managers of certain properties, as set out in the policy change email. While this could change, the current expectation is this contact about specific buildings will begin in mid-September.

The first tier to be approached individually will be managers of properties that currently receive regularly scheduled additional collections above the normal allocation, but are not enrolled in the organics program. (Those properties pay an extra fee for additional collection.)

For properties with significant physical limitations, managers can request an evaluation as to whether they are entitled to a delay in activating organics recycling to allow them time to plan and make renovations to achieve a more effective organics recycling program. Properties with such

limitations are said to fall in tier 4. In providing the extension of time, the City will expect renovations to be considered, planned, and implemented. When the City moves on to tiers 2 and 3, the Solid Waste staff plan to send another broadcast email alerting everyone in those tiers to the beginning of onboarding in the next tier. Tier 2 will be buildings with less than 100 units, and tier 3 will be buildings with 100 units or more. Tier 2 onboarding is expected to begin in about nine months, while tier 3 will likely begin in the spring of 2026.

When work begins on each “tier”, the City’s Solid Waste staff plan to contact property management companies in alphabetical order. Within reason, property managers will usually be able to assign the order for their properties to be onboarded within each tier.

The City intends to provide Environmental Education Assistants (EEAs) to work with property managers and their residents to provide onsite outreach, onboarding, and education about organics recycling.

EOLO members have generally found the work of the EEAs to be valuable. When the EEAs reach out to tenants, it is clear that the call to separate organic waste is coming from the City, rather than as a new demand initiated by the landlord. The EEAs are bringing language capabilities, videos in multiple languages, and printed material with clear visuals, minimizing the language issues faced in rental housing.

EOLO is pleased with the work of the EEAs and supports more City staffing to expand that work. In the expansion of the green bin program, we have to remember the implementation is not

“once and done”. Success for the program requires work at implementation, and then follow-up work to remind tenants what they need to do and to educate new tenants.

EOLO plans to offer one or more tours of buildings with green bin setups, and/or a special EOLO education session on options and best practices. If you want more information, please email events@eolo.ca to express your interest.

Guideline rent increase for 2025 set at 2.5%

Each year, the rent increase guideline is to be determined using the average monthly Consumer Price Index (CPI) increase for Ontario in the previous year to reflect inflation, except there is a cap limiting the guideline to 2.5 per cent.

Without the 2.5 per cent cap, the guideline for 2025 would have been 3.1 per cent, equal to the average rate of inflation from May 2023 to May 2024. Because of the cap, rents subject to the guideline are not keeping up with the increased costs of providing rental housing.

For the last five years, the guideline has been held well below inflation. Starting with 2021, the first full year of the pandemic, the cumulative guideline increase has been 9.0 per cent. For the five years up to June 2024 (the latest date available), the Ontario CPI has gone up 18.2 per cent. That shortfall is extremely problematic for many landlords, especially those with a low turnover rate.

Some tenants picture all the rent they pay as flowing into their landlord’s pocket. However, evidence before a Parliamentary Committee last year detailed how a typical dollar of rent is used in professionally managed rental buildings. The vast bulk of a typical rent goes to pay property taxes, utilities, other operating costs (repairs and maintenance, insurance, grounds maintenance, snow removal and management, etc.), the mortgage, and major repairs and building modernization (such as a new roof, furnace or major balconies or parking garage repairs). The costs vary with the building, but average around 92 cents out of each dollar of rent, which leaves just 8 cents as the pre-tax return.

When rent control holds rents below the increase in costs, landlords are squeezed. Some lose money; others can no longer afford to modernize their building. Over time, the quality of rental buildings and rental units falls relative to what it would be without tight rent control.

Rental supply also falls compared to what it would be without tight rent control. Landlords of rented single-family homes and condos who are losing money will sell them to people who want to occupy the homes themselves, resulting in fewer units for rent.

Tight limits on rents don’t produce more affordable housing; instead, tight limits on rent increases make investors less willing to provide rental housing.

Rent control policy needs to be set at the sweet spot, which balances reasonable protection for existing tenants with support for a healthy and growing rental supply. A guideline that covers only half of inflation, lagging 9 per cent behind cost increases over the last five years, is not optimal, but that has been the effect of Ontario’s cap on the guideline rent increase at 2.5 per cent.

The main bright spot is that inflation has been falling lately. For next year, inflation may fall below the cap on rent increases so there is no shortfall in guideline rents as compared with cost increases in 2026 or 2027.

Environmental loan program for rental housing providers

Many rental housing providers want to be environmentally friendly, but most of the subsidy programs are not open to rental owners. The City of Ottawa has good news! The Better Homes Ottawa – Loan Program is open to rental property owners. Through this program, Ottawa property owners can get a 20-year loan of up to 10 per cent of the

value of their property to cover the cost of home improvements that focus on energy efficiency and climate resiliency. Rental owners can benefit from access to financing. Tenants will often benefit from a more comfortable interior environment. The loan can usually be taken out regardless of the timing of other mortgages on the property, and it can potentially be passed to a future owner in the case of a property sale. Both current and future owner can benefit from the low rate of interest and the utility savings that come from the energy efficiency projects.

The program:

• Is open to all small residential properties, including detached, semi-detached, rowhouses, and apartments in Part 9 buildings and in condominiums

• Currently offers loans at 4.33 per cent, with this interest rate fixed over the loan’s 20-year term

• Allows the loan to be paid off early at any time as a one-time, lump-sum repayment, with no penalty

• Pays for itself by a 4 per cent administrative fee, which is amortized over 20 years

• Requires a minimum loan of at least $10,000 Besides the loan, the program offers an incentive when projects involve the installation of a heat pump. That incentive ranges from $600 to $3,000 depending on the type and size of the heat pump.

Multi-Housing Specialist

For landlords providing rental units at less than the average market rent for the unit type and location, the program offers the loan with zero per cent interest.

The list of eligible measures in the program is long. Here are just some examples:

• Heat pumps

• Insulation and draft prevention

• Windows and doors

• Solar panels and batteries

• EV chargers

• Domestic hot water tanks

• Electrical upgrades

• Waterproofing

• Permeable pavement

• Backflow prevention valves and sump pumps

In addition to environmental measures like those listed, up to 30 per cent of total loan value can sometimes be used to add a secondary rental unit.

The program is worth a close look especially if heating or cooling equipment, or windows, need to be replaced, cash is short, and the timing does not allow the needed funding to be added to mortgage re-financing.

For more information, visit betterhomesottawa.ca.

OneVoice,OneMessage,OneMagazine!

PRESIDENT’S MESSAGE

LPMA golf tournament highlights fall events

As we soak up the sunshine and look forward to the crisp days of fall, I’d like to share some important information.

The 24th Annual LPMA Golf Tournament will be held on September 9 at Firerock Golf Club. It’s selling out fast, so be sure to register for the tournament and sponsorship opportunities. Sponsorship is a great way to advertise your business and benefit St. Joseph’s Hospice of London.

Our next members meeting takes place on October 8 at Highland Country Club. More information will soon be available.

The PM 101 seminar series will be held on November 5 and November 19. Topics will include screening prospective tenants, understanding lease documentation, landlords’ obligations for maintenance and repair, and much more.

LPMA is working on a commercial lease with lawyer Becca Pilon of Cohen Highley Lawyers. Understanding factors such as location, property type, lease terms, and market conditions can help you to better negotiate your agreements.

Warmest wishes,

- Richie Anand, President, LPMA

ILLEGAL SUBLETS: ENTERPRISING TENANTS PROFIT AT LANDLORDS’ EXPENSE

Tenants are becoming increasingly resourceful in response to paying high market rents. Many are overcrowding their units while others are passing on their apartment to new tenants without obtaining the consent of their landlord.

London lawyer Joe Hoffer says unauthorized tenancies in the London area are becoming increasingly common.

“It really has to do with the market rents that are being charged now. What you have is a situation where someone is a longtime tenant, they are paying well below market rent and they, for whatever reason, decide they are going to move.”

A sublet occurs when a renter in a fixed-term tenancy moves out of their unit and allows a subtenant to live there until the end of the fixed term. The tenant can return to live in the unit before the fixed term ends as in the situation with students

who sublet their unit for the summer and then reoccupy it in September. The tenancy agreement and the landlord-tenant relationship do not change. Hoffer says a sublet is applicable only when a tenant is in a fixed-term lease. Landlords should always refuse a request to sublet when tenants are in a month-to-month tenancy because of the short time remaining in the tenancy.

Protecting against illegal sublets

Heading off unauthorized tenancies starts with the lease, Hoffer says. According to the LPMA lease, landlords need to specify that a tenant’s request to sublet be in writing. The request is subject to the consent of the landlord, also in writing. The LPMA lease requires that landlords and tenants enter into a sublet agreement.

“All of those protections are embedded in the industry lease,” Hoffer says.

Richie Anand

Although landlords can’t unreasonably or arbitrarily refuse consent for a sublet, there is usually little basis to do so because the head tenant remains liable under the lease for paying the rent and for damage. The only time the landlord might be concerned about the relationship between the head tenant and the sub-tenant occurs when there is a problem, such as noise, disturbances or illegal acts, Hoffer says.

If the landlord does not consent to a sublet, the tenant can apply to the Landlord and Tenant Board. If the Board finds that the landlord unreasonably or arbitrarily withheld consent, it can authorize the proposed sublet or a different sublet suggested by the tenant. Alternatively, the Board could terminate the tenancy or grant an abatement of the tenant’s rent.

If the tenant didn’t ask permission to sublet, the landlord can terminate the tenancy based on an unauthorized transfer of occupancy, which arises when a tenant sublets without obtaining permission from their landlord.

For example, a renter has friends or decides to advertise and then rents to those individuals at the relatively low rent the head tenant had been paying. If the head tenant terminated their tenancy, the incoming tenants would have to pay considerably more for rent given that landlords can charge whatever the market will bear on turnover. The head tenant takes that fact into consideration when passing on their rent-controlled unit to another person. In many cases, the head tenant charges that person a fee for getting them into a reasonably priced unit. That fee is illegal, Hoffer says.

“We are seeing that happen more and more frequently. We’re also seeing situations where landlords miss that transfer. There is a remedy available, but procuring that remedy can be a challenge depending on what protocols a landlord follows in dealing with occupancies.”

In some situations, the sub-tenant has been in the unit for more than a year before the landlord is aware that a transfer has taken place.

Training staff is critical

Hoffer says landlords need to train their staff to recognize and deal with an unauthorized transfer of occupancy. As soon as the staff become aware that one tenant has vacated and left another tenant in the unit without obtaining the landlord’s consent, they have 60 days to act starting from the time when they become aware of an unauthorized occupancy. They need to apply to the Board for an order terminating both the illegal occupancy and the formal tenancy with the original tenant.

Hoffer says landlords often make the mistake of dealing directly with the sub-tenants instead of terminating the illegal occupancy. That initial rapport can develop into a landlord and tenant relationship even though the unit remains the responsibility of the head tenant. If the sub-tenant requests maintenance, it’s important for the landlord to instruct that person to communicate with the head tenant, who will then notify the landlord. And if the landlord receives a maintenance request from someone who isn’t registered on the lease as a tenant, they need to investigate.

Small landlords sometimes discover from another resident that someone new has moved in, which necessitates quick action.

“At the end of the day, it’s just a matter of training staff because all of the lease provisions are there,” Hoffer says.

Updating occupancy information

As a precaution, Hoffer recommends that landlords conduct inspections at least twice a year and ask tenants to update their occupancy information, which is permitted under the LPMA lease. That information should also be in the building’s fire safety plan in the event of an emergency.

“It’s often during the inspection that it becomes clear that maybe the tenant isn’’t living there anymore,” Hoffer says. Receiving cheques from someone other than the tenant should raise a red flag, he adds. Even so, the LPMA lease states that rent paid by anyone other than the tenant is deemed to be paid on the tenant’s behalf.

Too many roommates increase landlords’ expenses

Overcrowding issues are also trending due to high market rents.

“It’s a big problem,” Hoffer says. “That’s occurring, understandably, because rents are so high that people will turn around and bring in ‘roommates’ who share the rental costs and quite often it’s an excessive number of roommates.”

Seeing mattresses in living and dining areas during an inspection is an indication of overcrowding, he adds.

Wear and tear on units is a concern for landlords, as is the consumption of water and electricity. If tenants pay for electricity, landlords usually cover the cost of water, which means that overcrowding will result in more water being consumed than what the unit was priced for. Landlords have little recourse as long as the occupancy is limited to one person per 100 square feet, Hoffer says. But fire safety is a concern if occupants are sleeping in a room without a window or in a room that has only one means of access or egress.

Tenants are resourceful in other ways, too.

“In some cases, landlords are going in and finding the tenants have built a privacy wall inside the unit. That’s a definite breach both of the lease and a firesafety concern,” Hoffer says.

Assigning a rental unit

Unlike subletting, a tenant who assigns their unit intends to move out permanently and transfer their right to occupy the rental unit to another person, typically in a fixed-term lease. The new person takes the place of the tenant and the tenancy agreement remains the same, according to the LPMA lease.

Landlords need to specify that any request for assignment or sublet be in writing and that it be subject to the consent of the landlord in writing.

“That’s the most you can do, really, to protect yourself,” says Hoffer.

Requiring that the tenant’s request be in writing is an important protection for landlords that isn’t covered in the Residential Tenancies Act (RTA). For example, the tenant could mention in passing to the superintendent, building manager or cleaner that they want to assign their unit. Without the LPMA clause, the RTA would consider the tenant’s offhand comment to a landlord’s staff member as a request to assign their unit. If the staff member forgets to notify the head office and there is no response by the landlord within seven days, the landlord is deemed to have refused an assignment. In such a case, the tenant could then terminate the tenancy on 30 days’ notice.

The landlord has an absolute right to refuse consent to assign a unit, Hoffer says. In that case, the tenant has the right to break the lease on 30 days’ notice.

“A denial of consent and/or a non-response are treated the same way,” Hoffer says.

London Property Management Association (LPMA) is a non-profit organization, located in London, Ontario, Canada, that provides information and education to landlords.

LPMA represents the interests of both large and small property owners. The association has more than 400 landlord members representing approximately 35,000 rental units. Membership is open to landlords and property management professionals who own or manage one or more residential rental units. Ph: 519-672-6999 Web: www.LPMA.ca

Sign up online or call Tina Potter.

Joe Hoffer

Canadian Federation of Apartment Associations

Canada’s voice for the rental housing industry at the federal level.

Join Canada’s leading rental housing providers, suppliers and industry associations. Become a direct member of CFAA today!

EXECUTIVE DIRECTOR’S MESSAGE

Summer usually provides a lull, giving us a valuable opportunity to reflect on our accomplishments and setbacks from the past six months. It also allows us time to recalibrate and prepare for an active autumn and winter, focusing on advancing IPOANS' three pillars: advocacy, education, and membership services. However, this year was different. Housing activists intensified their misinformation campaigns and demonstrations, and social activism by hearing adjudicators became more visible. These activities consumed an enormous amount of resources, making it an extremely busy time with no letup in sight as we continue our efforts to bring fairness for members navigating the Residential Tenancies and Small Claims Court processes.

- Kevin Russell, Executive Director

Advocacy

IPOANS continues to actively lobby the government and party caucuses, presenting our concerns and solutions before legislative committees to ensure they are heard by lawmakers. We remain engaged in the media through interviews, letters to the editor, opinion pieces, and an enhanced social media presence. IPOANS’ advocacy initiatives continue to strive for fairness in the residential tenancies process, while the Small Claims Court appeal process has become a significant focus of our time and energy. In May, a Small Claims Court decision prevented small rental housing providers Carlo and Loretta Simmons from allowing their daughter to live in a unit they own, despite their compliance with all rules under the Residential Tenancies Act to transition the unit from the previous tenant to a family member.

The Simmons’ Small Claims Court decision implies that, regardless of provincial law or adherence to existing rules, an unelected adjudicator's personal views can override these regulations. This decision crossed a line for IPOANS and its members, as it effectively allows an unelected official to amend the Residential Tenancies Act as they see fit, bypassing the legislative process required to change laws.

This precedent-setting decision was welcomed by housing advocates and legal aid organizations, who publicly made it known they plan to leverage the decision in their residential tenancy filings. In response, IPOANS immediately established a Legal Defense Fund to support the Simmons’ appeal. At the time of writing, the fund is nearing

$20,000, with contributions from both members and non-members who found the decision equally troubling. The appeal has been filed, with a decision expected in the fall.

The growing trend of biases in Residential Tenancies and Small Claims courts is increasingly concerning and unacceptable, prompting us to decide to support appeals of future precedentsetting decisions that circumvent the Residential Tenancies Act without following the established legislative process. IPOANS has observed a rise in Small Claims Court decisions being appealed to the Nova Scotia Supreme Court, which we believe underscores our position that the current Residential Tenancies dispute resolution process is broken and untenable.

Education

The IPOANS Building Service Excellence course was successfully relaunched in May, with 19 students enrolling in the 30-hour program and earning a certificate of successful completion. This course equips building maintenance technicians, property managers, and resident managers with the skills and awareness needed to provide valuable and respectful service in both general and preventive maintenance. Emphasizing responsibility and pride in their work, the course ensures quality and helps maintain a strong reputation for property owners. It covers best practices and general principles to present a professional image of the property owners’ organization while ensuring safe and comfortable living conditions for residents.

Based on feedback and insights from former students, the 90-hour IPOANS Residential Property Management course has undergone a major revamp. The course has been divided into three separate courses, allowing applicants to choose the courses that best suit their needs. Selected courses must be completed within the current year selected, giving applicants the flexibility to tailor their learning experience. Courses being offered:

• Legal Resources and Residential Property Management Standards (30 hours): This course assists participants in understanding the Nova Scotia Residential Act and its impact on your operations and how you perform your job. Participants will learn the importance of property maintenance and risk management, as well as identifying the purpose and legal resources required for residential property management, such as the Human Rights Act, Employment Equity Act, and Occupational Health and Safety Act.

• Human Relations for Residential Property Managers (20 hours): This course will assist participants in applying effective best practices for tenant relations, as well as managing their team. Participants will learn how to resolve tenant issues, apply customer service strategies, as well as understand the steps in the employee recruitment and selection process and the basics of performance management.

• Marketing and Financial Planning for Residential Property Managers (20 hours): This course will assist participants in applying marketing concepts, assist in maintaining occupancy, such as market analysis and planning, as well as how to effectively manage property budgets using different strategies and tools.

Membership services

Awards Gala, Dinner & Tradeshow

The IPOANS Building Service Excellence course was successfully relaunched in May, with 19 students enrolling in the 30-hour program and earning a certificate of successful completion. This course equips building maintenance technicians, property managers, and resident managers with the skills and awareness needed to provide valuable and respectful service in both general and preventive maintenance. Emphasizing responsibility and pride in their work, the course ensures quality and helps maintain a strong reputation for property owners. It covers best practices and general principles to present a professional image of the property owners’ organization while ensuring safe and comfortable living conditions for residents.

Based on feedback and insights from former students, the 90-hour IPOANS Residential Property Management course has undergone a major revamp. The course has been divided into three separate courses, allowing applicants to choose the courses that best suit their needs. Selected courses must be completed within the current year selected, giving applicants the flexibility to tailor their learning experience. Courses being offered:

• Resident Managers of the Year: Debbie & Don Elliot, Hazelview Properties

• Maintenance Person of the Year Managing Over 100 units: Peter Donahoe, Hazelview Properties

• Maintenance Person of the Year Managing Under 100 units: Kevin Lyons, Killam Apartment REIT

• Property Manager of the Year: Alla Turgeon, Killam Apartment REIT

• Support Person of the Year - Administration: Blythe MacDougall, Horizon Court Properties

• Support Person of the Year - Operations: Julia Stacey, CAPREIT

• Community Service Award: Lawen Group

• Income Property Owner of the Year: CAPREIT

• Development of the Year - Low Rise: The Governor, Killam Apartment REIT

• Supplier of the Year: YARDI

• Industry Leadership Award: Mark Kenney, CAPREIT; BJ Santavy, Skyline Living

• Pillar of the Community Award: Ursula Eckoldt, Urchin Property Management Inc.

Tradeshow exhibitors reported an exceptional event that exceeded their expectations. The Sustainability Hub, hosting companies showcasing sustainability products and services in utilities management, was a hit with attendees.

Residential Tenancies Forum

In June, IPOANS held its inaugural Residential Tenancies Forum, attracting over 170 attendees for a three-hour event. The forum began with a panel discussion featuring seasoned property managers and a legal expert on Nova Scotia’s Residential Tenancies Act. Following the panel, there were legal presentations on critical cases negatively impacting Nova Scotia rental housing providers. Topics included lease terminations, rental arrears – non-payment and collection, statutory breaches – bad behaviour, personal use – immediate family move-ins, illegal occupants, unauthorized lease assignments, and renovictions.

The post-event survey revealed that attendees found the forum engaging and educational, with many learning actionable insights they could implement immediately.

The event was emceed and moderated by Amanda Knight of Knight Growth Strategies. Panellists included Ursula Eckoldt - Urchin Property Management; Angie Craig - MetCap Living Management; Jennifer Bateman – CAPREIT; and John Boyle - Cox & Palmer.

Legal presentations were delivered by John Boyle and Sarah Gray from Cox & Palmer. The event was sponsored by YARDI.

Upcoming events

IPOANS Golf Tournament

The IPOANS Annual Golf Tournament is set for Thursday, September 12 at the beautiful Chester Golf Club in Chester, Nova Scotia. Registration is under way, and with over 70% of the spots already sold, it looks like the event will be another sellout, featuring 180 golfers and 18-hole sponsors. Highlights include a $20,000 hole-in-one contest sponsored by Westland Insurance and a chance to win a $4,000 “gridless heat pump” by Hisense, courtesy of Greenfoot Energy Solutions. Remaining spots are expected to sell out quickly. All registrations include lunch and the post-event reception. More details are available on ipoans.ca under the Events section.

Webinars

The fall webinar schedule is shaping up with three exciting offerings set to go:

• Northeastern Security Services: How to secure buildings and property and the role tenants can play in providing a safe and secure home in an era of societal unrest

• Residential Tenancies, Safer Communities, and Halifax Police: How to deal with tenants whose bad behaviour disrupts the right to peaceful enjoyment and security of home for surrounding tenants

• YARDI’s Market Rental Survey Panel Discussion: How to interpret and provide market insights explaining the differences between various market rental reports available in the marketplace

As we head into the fall, the pace is expected to pick up with the fall legislative session and municipal elections scheduled for October. Additionally, both federal and provincial parties are beginning to prepare party platforms for expected elections in 2025.

IPOANS is committed to being the Positive Voice of Landlords providing members Advocacy, Education and Membership Services Programs. IPOANS lobbies all levels of government and industry stakeholders to ensure a balanced and competitive rental market. IPOANS believes there is strength in numbers, when IPOANS speaks on industry issues stakeholders listen.

211 Horseshoe Lake Drive, Suite 112, Halifax, Nova Scotia, B3S 0B9

Executive Director: Kevin Russell, Email: kevin@ipoans.ca T: 902-425-3572

Final Take Away Final Take Away

Mastering ILS, websites & SEO for apartment marketing

By Peter Altobelli, Vice President, Yardi Canada Ltd.

Brought to you by Yardi Canada Ltd

The Canadian multifamily market remains strong, with vacancy rates hovering below 3% for the past year and a half according to the Q1 2024 Yardi multifamily report. This tight supply is making it tough for renters to find available units. Interestingly, despite 92% of Canadian renters preferring property-specific websites as an online touchpoint when searching for their next place, 78% still find value in using internet listing services (ILS), according to simplydbs. This highlights the importance for landlords to develop a comprehensive digital strategy that encompasses ILS, property websites and search engine optimization (SEO) to stand out in this competitive market.

ILS: Crucial for

early-stage

visibility

While lead conversions on ILS platforms might be lower than SEO, popular platforms offer an advantage: reaching a wider audience of renters actively searching for apartments. A recent Yardi study revealed a few features you can use to enhance your ILS listings: compelling visuals, detailed descriptions, and tour scheduling.

Listings with high-quality photos and virtual tours that highlight the best aspects of your property and amenities make a difference. The study showed listings with more than 20 photos see a ninefold increase in conversions. Similarly, providing accurate and informative descriptions that highlight the unique selling points of your apartments, such as pet-friendly policies, onsite amenities, and nearby attractions, will attract more attention. Finally, leveraging direct scheduling within your ILS listing makes it easier for prospects to visit your property and can potentially double your conversion rates.

Property websites: Converting visits into leases

Your property website serves as your online presence and should be designed to turn quality visitors into leads and leases. A separate Yardi study shows website features that boost conversion rates. These include live video tours, nudge marketing, floor plan assistant, floor plan availability notifications, and digital leasing.

With live video tours, you allow prospects to experience customized tours from the comfort of their own home and achieve a 36.03% conversion rate. Nudge marketing, which employs subtle prompts and offers (like scheduling a viewing or applying for a lease), can encourage action. This has proven to yield a 15.64% conversion rate.

With a floor plan assistant, you streamline the search process, allowing users to filter listings based on desired features like the number of bedrooms, bathrooms, and square footage. Floor

plan availability notifications further enhance the experience by alerting potential renters when their ideal unit becomes available, leading to an impressive 11% conversion rate.

Finally, to simplify the application process, use virtual leasing and secure online screening options.

SEO: Improving your website's ranking

SEO involves optimizing both the content and structure of your website, as well as building backlinks from reputable websites. While SEO requires consistent effort and takes time to show results, it offers a sustainable source of low-cost leads in the long term.

To leverage SEO effectively, conduct keyword research to identify terms renters in your area use to search for apartments and update your website content. Ensure your website is mobile-friendly, as many potential renters use their smartphones to search for apartments. Encouraging positive reviews from residents can further boost your local SEO ranking and build trust with potential renters.

Strategy for success

Each approach offers distinct advantages. ILS reaches potential renters early in their search and boosts awareness. Websites convert visitors into leads and foster stronger brand engagement. SEO generates consistent traffic and leads over time.

By strategically combining ILS, your website, and SEO, you can create a powerful marketing force that generates consistent leads, increases brand awareness, and ultimately drives successful leases. Remember, continuously monitor and adapt your strategy based on your target audience and market dynamics to ensure you stay ahead of the curve. To learn more about your technology options, visit Yardibreeze.ca.