RHB Magazine Jan/Feb 2022 by Marc Cote

Canada’s #1 most widely read publication for Apartment Owners, Managers and Association Executives Vol.2022 14 No. 6 January 2022 Vol. 14 No. 6 January

Theand official publication of: Canada’s #1 most widely read publication for Apartment Owners, Managers Association Executives

The official publication of:

MEET THE NEW BOSS THE NEWLY APPOINTED CEO OF SIGNET GROUP

“Special: RHBTV anchor Kerry Chandler interviews Kris Boyce for RHB”

The impact of TBD supply chain issues TBD on the rental housing industry How are longer shipping times and rising costs affecting rental property owners?

The benefits TBD of modernizing your TBD elevators

Energy efficient elevators can significantly reduce the costs of operating your building.

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EDITOR’S NOTES New year, same as the last year? Happy belated new year! Yes, it’s February, but this is the first issue of the year, and the first opportunity for me to wish you all a happy new year. I don’t know if 2022 will be any happier than 2021 for all of us. On top of the pandemic and shutdowns, we’ve had to deal with rising gas prices, huge winter storms, and trucker blockades. However, I hope your year is better than last, and that you and your family are healthy and safe. This issue of RHB Magazine features a first-of-its-kind collaboration in magazine publishing. The article features a transcript of the interview with Kris Boyce, newly appointed CEO of Signet Group. You can also read the digital version of the article on RHB’s website, or scan the QR code to watch the interview on RHBTV. It’s a unique way to experience content from your favourite source of information on the rental housing industry. The second article examines the impact of the supply chain on the rental housing industry. It describes the key factors affecting shipping times and rising supplier costs, such as COVID-19, staffing shortages, shipping and distributing issues, climate and weather challenges, and consumer and corporate behaviour. The third article discusses the benefits of modernizing your elevators, and the technology that affects the operation of this equipment. Make sure to read CFAA’s newsletter, National Outlook, as well as the Regional Association Voice. Yardi Canada wrote about what to consider when selecting property management software, while Multi-Unit Review discussed landlords’ optimism for the year ahead. Of course, we always 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 hearing from you. Enjoy the issue!

Co-founder, Publisher

Marc Côté marc@rentalhousingbusiness.ca

Associate Publisher Nishant Rai

Editorial

David Gargaro david@rentalhousingbusiness.ca

Contributing Editor

John Dickie, President CFAA jdickie@rentalhousingbusiness.ca

Creative Director / Designer Scott Clark

Photography by Revi Riabinski

Office Manager Geeta Lokhram

Subscriptions

One year $49.99 Cdn Two years $79.99 Cdn Single copy sales $9.99 Cdn 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

Enjoy the issue! David Gargaro Senior Editor

4 | January 2022

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CONTENTS

VOL.14 NO.6 2022

The benefits of modernizing your elevators

Energy efficient elevators can significantly reduce the costs of operating your building.

RHB’s forum for rental housing associations to share news, events and industry information

Meet the new boss: The newly appointed CEO of Signet Group Check out this first-ever collaboration between print, digital, and video in a special interview with Kris Boyce.

Hot Topics: HDAA announces three new members of the Board of Directors, and highlights potential issues impacting on the rental housing industry in the upcoming Ontario election occurring in June. pg. 45 EOLO warns of the likely expansion of green bins into Ottawa’s multi-residential sector, and about a new City vacant unit tax, which will be charged in 2023 based on long vacancies in 2022. pg. 49 LPMA promotes its online open forums that help small landlords learn from others, and presents warning signs to help landlords identify structural issues before they become critical. pg 53 WRAMA describes the boom in the Waterloo Region rental housing market using data from Zumper.com and CMHC’s Rental Market surveys. pg. 57

The Member Associations

Regional Association Voice RAV features the latest industry news from four member associations.

The impact of supply chain issues on the rental housing industry How are longer shipping times and rising costs affecting rental property owners?

6 | January 2022

Final Take Away What to consider when selecting property management software Think about these three must haves when selecting a new tech partner.

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PRESIDENT’S CORNER This month’s issue of National Outlook provides insight on what the renewed Liberal federal government plans to do about rental housing, and what CFAA’s positions are on the various issues. At the top of the government’s priority list is a new $4 billion Housing Accelerator Fund to support municipalities in approving development applications in a more timely manner. We can expect to learn more about that in Budget 2022, which will likely come down in March or even April, later than federal budgets usually come down. The second priority seems to be supporting expanded home purchases through rent to own. Likely to be third in time sequence is work promised to use the tax system to rein in “renovictions” and “excessive profit” due to rent increases on turnover. That project will take CMHC a lot of time since it requires information from the provinces and liaison with the provinces, and is not part of CMHC’s usual responsibilities. CFAA will be seeking to show the government that they have misunderstood the causes of recent rent increases, and they should not proceed with those changes. CFAA looks forward to hosting CFAA Rental Housing Conference from May 9 to 11, 2022, on an in-person basis. Government regulations permitting, we will be meeting at the Hyatt Regency Hotel in downtown Toronto, for a building tour, two days of education and networking, and the annual CFAA Awards Dinner. Benjamin Tal has agreed to give his popular and entertaining Economic Update. We hope to see you there! For more information, see page 39. CFAA also hopes you will participate in the CFAA Rental Housing Awards Program 2022. For more information, see page 40. Either way, plan to join the finalists and winners at

8 | January 2022

the CFAA Awards Dinner on May 10! The Home Depot remains a CFAA Strategic Partner. By registering your membership in CFAA (either directly or through one of CFAA’s 12 member associations) with Home Depot Pro, you benefit yourself and CFAA. This partnership benefits every rental housing provider reading this magazine. Yardi Systems is another a long-standing, CFAA Strategic Partner. We look forward to working with Yardi to bring you informative panels, and the latest and best information on technology and marketing for rental housing providers, at CFAA RHC 2022. Finally, CFAA wants to thank the many rental housing providers and association leaders who support CFAA and advance the rental housing industry.

John Dickie, CFAA President John Dickie, CFAA President

rentalhousingbusiness.ca | 9

In this issue of... NATIONAL OUTLOOK CFAA Member Associations 35. What is the renewed Liberal federal government planning to do about housing and rental housing? When will programs likely be announced?

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

39. What topic areas will speakers and panelists address at CFAA Rental Housing Conference 2022? Will the Conference take place in-person or by video?

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

40. H ow can your company enter the CFAA Awards Program? What are this year’s categories and deadlines?

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 one million residential rental suites in Canada, through 12 apartment associations and direct landlord memberships across Canada. CFAA is the sole national organization representing the interests of Canada’s $600 billion rental housing industry. For more information about CFAA itself, see www.cfaa-fcapi.org or telephone 613-235-0101.

10 | January 2022

London Property Management Association (LPMA) www.lpma.ca P: 519-672-6999 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 Waterloo Regional Apartment Management Association (WRAMA) www.wrama.com P: 519-748-0703

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MEET THE NEW BOSS

THE NEWLY APPOINTED CEO OF SIGNET GROUP This feature article is a first for RHB Magazine – and most likely a first in magazine publishing. It’s a unique collaboration between print and video. Kerry Chandler, anchor and producer of RHBTV and BoldTV, recently interviewed Kris Boyce, the newly appointed CEO of Signet Group. You can read the transcript of that interview in the following article. You can also use your smartphone or mobile device to scan the QR code below to watch a video of the interview on RHBTV.

About Kris Boyce and Signet Group As CEO of Signet Group, Kris oversees the growth and development of all aspects of the operation and management of the company’s commercial and residential portfolios. She has more than 35 years of real estate expertise, and a proven track record in overseeing all real estate asset categories within the private, public, and non-profit service sectors. Signet Group maintains a diverse portfolio of owned and managed properties and services all asset classes, including multifamily residential and commercial properties. It also provides maintenance and capital improvements to managed properties, portfolio administration, and real estate development and joint ventures.

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rentalhousingbusiness.ca | 15

RHBTV interview

Kerry: Welcome to the special recording of

RHBTV and RHB Magazine. Today we’re at the historic and beautiful Graydon Hall Manor for an interview with Kris Boyce of Signet Group. The reason we’re on location is, as a first in publishing, this interview will be released simultaneously in print, digital, and video. Therefore, we want to be at a special location. So, let’s get going. Joining me is Kris Boyce, newly appointed CEO, Signet Group. Welcome, Kris.

Kris: Kerry, so excited to be here today on this

historic moment for RHB and the location is just beautiful

Kerry: So, Kris, Signet Group has been in

business for more than 30 years. Talk to us about the company, the clients, and the business model.

Kris: The Signet Group enjoys taking on new

clients that have the same vision as them, as looking to the asset as the hidden value that they can find. They treat each of the properties as their own, and they make sure that the client’s philosophy and goals are met. And to achieve service excellence on all of their strategies and line it up with the Signet Group as well.

Kerry: Now, Signet’s philosophy is based on

maintaining old-fashioned values. How do they demonstrate those values in today’s business world?

16 | January 2022

Kris: The face-to-face contact is so important in

building any relationship. They started with the handshake to do all the deals. It’s just that feeling of the trust to make sure that the strategies align with what they own and the vision of the assets to make sure that they reach their maximum capacity on the vision of how they would like the property to be in five years. It’s about building relationships and service excellence.

Kerry: I agree. I think that’s so important. It’s

really important. OK, so as mentioned, Signet has been in business for more than 30 years. What skills and experience do you feel you’ll be adding to the mix?

Kris: I think I have a few friends that would say

it’s people first and culture and processes and procedures, and making sure that everybody has a strong line of communication on expectations and accountability so that there’s not a gray area. And if there is, there’s an open door concept that you can come in and get clarity. I’m a people person, and I think that’s one thing that our business is always about, because whether we’re managing an asset for a client or the people that are living in our buildings, everybody needs to be treated equally. And I think it’s very important. And I can add that.

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Behind the scenes

By David Gargaro

RHB Magazine spoke with Kerry Chandler, anchor and producer of RHBTV and BoldTV, the digital broadcast network for Canada’s multi-residential real estate industry, about this first-of-its-kind publication of an interview in print, digital, and video. RHB: What led to this collaboration between RHBTV and RHB Magazine? Kerry: Print has a number of limitations, such as

word count and readership, whereas the digital medium enables you to reach more people at a lower cost without space restrictions. And video has evolved as a medium. It allows you to delve deep into stories, incorporate data and conduct interviews, to create newsworthy content. Video enables us to collaborate with associations, owners, and the trades in getting our message out to the public and the industry. Also, RHBTV has always done relatively short interviews. We wanted to do something more longform. This collaboration between print, digital, and video— transcribing the video interview into the print and digital versions of the magazine—enables us to be the first in publishing to give our readers and viewers the same experience.

RHB: What went into the production of the interview? Kerry: Our goal was to make this collaboration a memorable experience. Rather than doing an instudio interview, as we typically do with RHBTV,

18 | January 2022

we decided to find a location that would elevate the event. We chose Graydon Hall Manor because it’s historic, it has grandeur, and it provides a beautiful background for the occasion. When we look back in 20 years, we’ll know we made history. We even scouted the location to create an appropriate storyboard for the script. And RHBTV went all out in making me look good too. They brought in a professional makeup crew, hired additional photo and video personnel, and dressed me in a stunning designer gown.

RHB: Why did you choose Kris Boyce for the first interview? Kerry: It all just came together naturally. We’ve

been working on the collaboration between print, digital, and video for some time, and were looking to make an impact with our first interview. Then we learned that Kris, who had left the rental housing industry a couple of years ago, was making her return by becoming CEO of Signet Group. She’s had quite the career, so this was a huge get. RHB Magazine hadn’t featured an individual on the cover for a few years, so putting Kris on the cover made a lot of sense. It all came together as the perfect opportunity to launch this new collaboration between print, digital, and video.

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Kerry: Yeah, and you are a people person, and we love that. I wanted to ask you some questions about women in the industry. But before I do, what are Signet’s and your business plans for the future, Kris?

Kris: Our goals are to expand in Ontario and

outside of Ontario as well. We have been looking along the East Coast. We have quite a few clients out there that are looking for professional management and like our philosophy on the personal touch. The goal is just to continue with the right clients. We want to match each other’s philosophies and make sure that there’s the synergies and we’re on the same page for the growth on both sides.

Kerry: It sounds like a lot of people are actually moving out east so that it works right.

Kris: For sure, for sure. Kerry: As mentioned in the opening, this is a

special broadcast from Graydon Hall Manor, who has granted us access to the house and property. But before we continue with the interview, let’s take a walk around and look OK.

Kris: Awesome. Let’s go. [Note: The video skips their walk around Graydon Hall Manor.]

Kris: What a beautiful property. Kerry: Wasn’t it? It was gorgeous. Now, Kris,

International Women’s Day is less than a month away, March 8, 2022 to be precise. I wanted to ask your thoughts on women in the industry. What do you feel should be done to get more young women interested in property management?

Kris: I think the responsibility falls upon women.

We really need to share our experiences, be open for conversations with the younger group, making them feel comfortable about making those calls or those emails. I think that there’s situations they won’t have to be involved and tools for them to be successful. If we all make an effort to lift each other up, I think that’s so important. Mentorship is natural for many. Other people just say, “I’m not a mentor,” but you are. You’re just sharing your experiences and you’re helping somebody else understand the industry. And property management, like I said earlier, is extremely exciting. To get more women around this change that’s happening right now, I think would be really important.

Kerry: So, you have an extensive history in the

apartment industry. First, what could you tell our viewers and readership about taking advantage of

20 | January 2022

opportunities? And second, when someone takes advantage of an opportunity and maybe second guessing themselves, what do you suggest?

Kris: Well, I can share my story. I was scared and

nervous to accept a job as a site administrator when I was trying to be a police officer, but it was a leap of faith. I think start at any job, really. If you can’t get something that you went to school for, take it and learn from the people around you. It’s so important that life experiences you don’t learn at school, so take the risk. And then when you’re not sure, ask somebody that you trust to direct you to the right person to ask the questions. I think that risks are great and just have a safe person that you can ask questions for. So, take any position. It’s exciting. Just a leap of faith is so important

Kerry: And change is good. Kris: I think so. It’s scary. But you know what? It

gets the blood going again. It’s exciting for sure, right?

Kerry: OK, not to get all analytical with you, but

if you could ever go back and talk to your teenage self, what would you tell her?

Kris: Wow. Good question. I would probably say

dress for the job you want for tomorrow. I would probably say to myself, “Talk less, listen more.” Ask a lot of questions to seek clarity so that you’re not diving into something and not doing it properly and then disappointing the person that asks you to do the task. And I think back in the day, because my mom and dad had great values, if I could have been even kinder, I think I should have been. But I think that just comes with experience as well. And no matter where you are, make a difference every day in someone else’s life. I think those are all great things that I could look in the mirror and tell myself as a teenager. Again, I think those are some core values that I would reemphasize for sure.

Kerry: I love those answers, they gave me goose

bumps actually. So, did you have a mentor or someone who inspired you and, in the mentorship vein, what advice would you give young professionals who want to build a career in the industry?

Kris: Thanks, Kerry. I think, like many of us are,

parents really instill a lot of great skill sets for us to survive in the professional industries as well. But many supervisors, when I was younger, were hard on me, and I think that at the time I thought they were very mean. But the reality is they were trying to toughen me up so that I could stand on my own two feet. And I had many

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mentors, now I look back at, that I didn’t know they were, but they just taught me so much about the industry, about property management. I had many superintendents that taught me skills about maintenance. I think for the young people that are out there right now, there might be hidden mentors you don’t know. Listen and learn and appreciate people that give you feedback. Sometimes you might not like it, but it’s going to make you stronger. Please be open minded and listen to the words of advice from your hidden mentors.

Kerry: Well said, Kris. How would you describe your personal beliefs as a leader?

Kris: So, for me, I believe it’s people first. My

beliefs are in giving people the tools to be successful. I love sharing stories so other people can feel that they’re not alone if they have

challenges. Again, respect, dignity, humility, community first, always give back every day and be a good human being. My core value, it is about kindness and about paying it forward. It’s really important and it’s not a weakness, it’s not a weakness. I think it’s a strength because you’re working with a lot of other human beings and we’re all in this together. I think it’s very important to stay close to your moral compass. Kerry: Wonderful. Now, before we wrap up, I’d like to ask you what, unfortunately, is a provocative question. Do you believe if there will come a day where we no longer have this kind of conversation and it’s just the best person for the job gets it?

Kris: That’s a great question. Thank you. I think

we’re going to have to continue conversations always when it circles around human rights and equality. I think that it’s an ongoing conversation. We can only change by keeping a light on things and talking about it, and that goes across the board for everything that’s happening in our world today. It can’t just be today’s news story. It has to be something that everybody talks about every day. And you know what, I think with the industry, RHB Magazine, the other associations, when they hold different forums for chats, that’ll keep us all on the same playing field. And you’re right, it’s the best person for the job, and that should be just the norm. I think that, but we have to keep talking about it.

Kerry: Kris Boyce, CEO, Signet Group, thank you

so much for being part of this special broadcast. It’s always a pleasure spending time with you. And we hope to see you soon.

Kris: Kerry, thanks for having me. It was very

exciting and always a pleasure to be with you as well. Thank you.

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The impact of supply chain issues on the rental housing industry

By David Gargaro

As consumers, we’re aware of the most recent supply chain issues. The consequences are all over the news, as they affect our daily lives. Prices of different food items have risen at grocery stores. Common goods are either in short supply on shelves or out of stock for months. There have also been severe lumber shortages, which has increased prices for building products, wood pallets, and furniture. And, of course, the price of gas continues to go up. Many industries have been severely impacted by supply chain woes. Even though rental housing focuses on managing buildings and people, problems with the supply chain directly affect suppliers of goods and services. When they cannot get parts or material costs go up, rental property owners and managers are directly affected, as are renters who have to wait longer for repairs. Owners’ expenses increase and, in most provinces, they cannot recoup them by raising rents.

24 | January 2022

According to Toni Gravelle, deputy governor of the Bank of Canada, there is no certainty about when supply chain issues will be resolved. The pandemic and the associated economic conditions are unprecedented, and there is no way to determine when supply chain issues will peak. But what’s causing these challenges? There are many factors at play.

COVID-19 The pandemic has affected companies across every industry in every part of the world. Manufacturers have had to shutter factories or reduce staff due to coronavirus outbreaks and government-imposed lockdowns. China is the world’s largest exporter of goods; when their factories shut down or reduce output, it causes worldwide shortages and shipping delays. When suppliers cannot get parts, they cannot service equipment in your building. It is taking longer than usual to receive ordered parts. This can affect every piece of technology in your building, including elevators, HVAC equipment, washers and dryers, and computers. In some cases, it’s easier to buy brand new equipment rather than parts to repair existing equipment. When specialized manufacturers aren’t able to make or ship specific parts, it affects the whole production process. For example, there is a global shortage of semi-conductor chips. They’re used in a wide variety of products, including computers, electronics, vehicles, and appliances. Each chip can take up to 2,000 steps and six months to make. The chip shortage has affected numerous industries, including suppliers of products used in the rental housing industry. “Some parts such as semi-conductors have been in short supply worldwide and have created a demand in every industry that manufactures equipment that requires digital interface,” said Susan Reynolds, Director, Marketing, Coinamatic. “Turnaround times have gone from typically two to four weeks to nine months and just recently we have been experiencing delays greater than twelve months. In early 2020, we made the decision to ramp up inventory supply and we were extremely fortunate to have curved some of this demand.”

Staffing shortages

from home. There is also an increase in early retirements, resignations to try new careers or stay home, employees going on disability leave, leaves for child care, and so on. The rental housing industry is a people-based business. Property managers must deal with tenants, employees, suppliers, and the public, often face to face. And companies that service rental properties must work in close proximity to tenants and building employees. This increases the chance of individuals catching or spreading COVID-19. Among suppliers, some employees have refused to service rental properties where they don’t feel safe.

Shipping and distribution woes Shipping delays cause problems throughout the entire supply chain. Remember when the ship ran aground in the Suez Canal? It was carrying more than 18,000 shipping containers, and delayed other ships, collectively carrying many thousands more shipping containers. Shipping delays can occur due to transportation bottlenecks, traffic jams in ports, delays in off-loading cargo, and labour shortages. There’s also a high demand for shipping containers, which leads to delays and higher shipping prices. “It is taking longer and longer to receive goods and shipping times have been extended,” said Reynolds. “This is due to a variety of factors, including staffing shortages, weather challenges, ports being temporarily closed or backed up, warehouse spaces full with migration from retail bricks and mortar to online shopping, etc. It is causing businesses to adjust expectations and to rethink how they operate. Just-in-time deliveries may be a thing of the past.” The trucking industry is a significant part of the supply chain. It has already had serious staffing issues, as drivers, warehouse staff, and

Every business is dealing with staffing shortages, either due to people becoming ill, or being forced to shut down or reduce capacity. Manufacturers, retailers, shippers, and other businesses are understaffed and cannot maintain prepandemic levels of operation. Due to workforce shortages in several fields, companies must collectively compete for a smaller pool of available candidates. Employees in front-level roles are also quitting in droves due to stress, fears of being infected, and the desire to work continued on page 28

rentalhousingbusiness.ca | 25

Congratulations to the Winners of the 2021 MAC Awards! The MAC Awards recognize innovation and leadership in Ontario’s vibrant rental housing industry. Each year, our members demonstrate their commitment to high levels of service and rental accommodations. We are inspired by your efforts and can’t wait to see what the industry accomplishes in 2022.

Customer Service Award of Excellence

Best Suite Renovation Under $25,000

KG Group

Hapeld Developments 160 Elgin Street North, Mount Forest

Best Suite Renovation Over $25,000 44 Jackes Ave., Toronto

Best Lobby Renovation Durand Village, Hamilton

Best Curb Appeal 25 Montgomery Ave., Toronto

26 | January 2022

Community Service Award of Excellence Rental Housing Providers Quadreal Properties Group

Impact Award Skyline Group of Companies

Best Amenities Renovated or Existing 2870 Cedarwood Drive, Ottawa

Best Amenities New Development

Rental Development Over 200 Units

The Waverley

18 Erskine Ave. Toronto

Rental Development 200 Units or Less

Environmental Excellence

484 Spadina Avenue

Skyline Group of Companies

CRB Program Member of the Year

Property Manager of the Year

Sterling Karamar Property Management

Sarah-Jane Beehoo

Leasing Manager of the Year

Resident Manager of the Year

Lily Luckin

Rose Sekaric

Resident Manager(s) of the Year

Best Advertising Campaign

Darlene & Michael Scott

The Waverley

Social Media Excellence

Community Service Award of Excellence - Supplier Member

Fitzrovia

Wyse Meter Solutions

Best property Management Website

Ferguslea Properties (Accora Village)

Fitzrovia.ca

The Futu Live re s H ere !

Company Culture Award of Excellence

continued from page 25

other trucking employees have been hard hit by COVID-19. The Canadian federal government’s requirement that cross-border truck drivers must be vaccinated has caused additional slowdowns at the border. The recent trucker “Freedom Convoy” (protesting the COVID-19 safety mandates) has added to shipping delays, affecting the supply chain across North America.

Climate and weather challenges A number of factors that affect the supply chain extend beyond the influence of the pandemic, and are out of everyone’s control. That includes specific weather-related events. These natural causes have affected the supply chain in many different ways, from impeding the ability to collect and use resources to creating manufacturing and shipping delays. Winter storms and blackouts have interfered with the production of polyfoam and chemicals in the United States. Low water levels on the St. Lawrence River have required ships to lighten their loads. Flooding in BC has caused delays at the Port of Vancouver, which was already hampered by COVID-19 and staff shortages. Droughts, wildfires, hurricanes, flooding, and winter storms across the United States (and other parts of the world) have also caused havoc with the supply chain.

Consumer and corporate behaviour The combination of consumer and corporate behaviour is creating challenges for manufacturers and suppliers. Some behaviours are related to the pandemic, but others have been around for years. One key issue is just-in-time manufacturing, wherein manufacturers will order and receive parts and materials precisely when they need them. While this reduces the requirement to pay for and store large quantities of parts and supplies, it can lead to shortages when the “just-in-time” deliveries do not arrive on time. The pandemic has caused “stops and starts” in orders, which has made it difficult to predict when manufacturers need to place orders. Combined with shipping delays and other factors, this creates havoc at this stage in the supply chain. “Prior to the pandemic, our procurement strategy was focused on the ability to remain agile and selective,” said Amit Shanghavi, Managing Director, H&S Building Supplies. “Our team had to undergo a huge shift in mindset when the pandemic hit, as we were forced to become less selective, prioritize, and continuously reassess. Raw material concerns, inflation, transportation, labour shortages, climate change, and political unrest continue to disrupt our ability to ensure the timely flow of material crucial in keeping the

28 | January 2022

maintenance of multi-unit residential properties afloat.” Due to the pandemic shutting down businesses, many companies reduced their capacity and product orders based on reduced sales projections. However, suppliers could not suddenly increase production to keep up with recurring demand. This has led to a bullwhip effect, where changes in inventory increase as you move up the supply chain, with suppliers of raw materials experiencing the greatest variations in demand. This has caused shortages and surpluses, both of which cause problems in supply. Due to material shortages, companies have stockpiled inventory to ensure they do not run out. This creates disruptions in the supply chain, as manufacturers cannot keep up with this unexpected demand. And when goods become scarce due to “hoarding”, prices go up for everyone else, including suppliers to the rental housing industry. Consumer behaviour also affects the supply chain. With so many people working from home, there has been increased demand for a wide range of goods (e.g., exercise equipment, toilet paper, air purifiers, computer equipment, vehicles). This has also increased demand for building materials (e.g., lumber, drywall) and tools. As a result, there have been reductions in suppliers’ stock and increased prices, which has affected building maintenance costs. “The delays in our lines of business of suite upgrades, capital projects, and disaster restoration have seen some projects run past expected deadlines,” said Michael Laurie, Director, Solid General Contractors. “These delays can cause units not being completed for the next rental cycle, increasing vacancy rates for our clients, added stress to the leasing teams with our clients, and ultimately potential lost revenue.”

Conclusion As a building owner or manager, you might get frustrated when your supplier is late in repairing or installing equipment. Or you might get sticker shock due to a sudden increase in prices. But supply chain issues are likely to blame. COVID19 infections, government lockdowns, labour shortages, shipping issues, weather events, and consumer behaviour are increasing shipping times and the costs of goods for everyone, including the rental housing industry. However, it’s difficult (if not impossible) to increase rents to keep up with rising inflation and shipping costs, so the rental housing industry has to deal with these higher expenses.

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Multi-Unit Review Market Analysis and Investment Trends

Kyle Church, Broker

Landlords remain optimistic for the year ahead 2021 was an incredible year for Canadian real estate, and the multifamily investment market was no exception to this trend. The year saw a record-breaking volume of transactions, while also surpassing previous pricing records on a price per unit basis as well as compressed capitalization rates. Following such an active year, we thought it would be interesting to hear from Ontario apartment owners on their thoughts of what the new year could look like. The survey provides interesting insights into how landlords are feeling heading into 2022 and we are happy to share some of these insights with you. As we examine the results of the survey, we are reminded of what makes multifamily investments such an attractive asset class. The apartment market is extremely stable and resilient, and we believe this shows in the property owners’ responses to the survey.

reasonably optimistic with regard to rental and vacancy rates, with 81% of respondents thinking that rental rates will rise in 2022, and 66% of respondents feeling vacancy rates will remain the same, while 30% anticipate vacancy rates going even lower.

Overwhelmingly, owners are confident in the year ahead being very much the same as the past year. From an investment perspective, 44% of respondents believe capitalization rates will remain the same in 2022, while 28% are of the mindset that cap rates will continue to compress even lower in the year ahead. Owners remain confident in the overall real estate market with nearly 80% of respondents feeling optimistic for 2022. If you are looking for reassurance in the stability of the multifamily market, take comfort knowing that of the respondents in our survey, 55% said their existing loan to value on their portfolio was less than 50%, and 16% of respondents reported their portfolio being free and clear. These results bring comfort in the stability of the market should interest rates rise—a majority of owners have significant equity in their portfolios and would see very minimal impact with rising rates. From an operations perspective, owners are not without their concerns. The three most significant concerns of property owners going into the new year are delays with the Landlord Tenant Board (21.9%), rising insurance premiums (18.7%), and rising interest rates (18.1%). Owners are

30 | January 2022

As brokers of multifamily apartment buildings, we share many of the same outlooks held by property owners. Early indications are that buyers remain very well capitalized and seeking opportunities in large and small markets throughout Canada. It will be interesting to see how the year unfolds and if the volume of sales is able to keep pace with last year.

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Not intended to solicit sellers or buyers currently under contract. Royal LePage® is a registered trademark used under license. All offices are independently owned and operated unless otherwise noted. ©2022 Bridgemarq Real Estate Services Manager Limited. All rights reserved.

The benefits of modernizing your elevators By Greg Chue, Professional Engineer, Quality Allied Elevator

Energy efficient elevators can significantly reduce the costs of operating a building. Elevators represent 2 to 5 per cent of a building’s energy consumption, according to the American Council for an Energy-Efficient Economy (ACEEE). Evaluating an elevator’s energy use and taking steps to modernize can help to efficiently manage building traffic and reduce energy costs. Most of the improved efficiency comes from advances in modern AC motor drives and dispatching technologies. Wasted energy The designed service life of an elevator is about 20 years on average, but there have been advances in elevator efficiency over the last 25 years. If your elevators are older than 25 years, the drive system will likely benefit from modernization. The motor drive, which is the heart of an elevator, is a major source of energy inefficiency. Other advances in controller dispatching use smarter methods to manage elevator traffic. By assessing elevator load, direction, distribution of calls, and time of day, the control system can determine the most efficient way to serve calls. Many older dispatchers only operate in one direction and must make the full travel before responding to calls. If you’ve ever sat in traffic at a red light with no traffic through the green, then you understand the cost of poor traffic management. Energy consumption can be measured by submetering, which monitors the power drawn from the upstream electrical supply. Submetering can help identify energy inefficiencies and provide insight for making improvements. Some jurisdictions offer subsidies for upgrading to more efficient equipment depending on the results. Many building owners might not opt for submetering as the upfront costs can range from $2,500 to $6,000.

Saving energy with a modern drive Many older drives constantly run in the background regardless of elevator usage and others have little to no speed control. These drives generate waste heat and require HVAC energy to keep cool. Modern VVVF drives operate similarly to electric cars and can dial in the exact amount

32 | January 2022

of torque required with precise speed control. That means less energy waste and a reduced heat load. If your building contains motor generator sets, single- or two-speed drives, or older variable voltage drives, then you can reduce energy and operating costs by modernizing. Modern regenerative drives can capture more energy savings by generating electric power back into the local grid. The AC motor doubles as a generator, capturing mechanical energy during braking and converting it into electric power. For multi-level buildings with several elevators, this energy recovery can produce real energy savings depending on local utility rates. A full modernization, which can cost $120,000 to $150,000 per elevator, can carry other benefits, such as lowering insurance costs through improved safety, providing better quality of life for tenants, and meeting accessibility requirements with hands-free video phones and illuminated buttons. A significant factor improving safety is the precise levelling offered by modern drives and improved door protection. These reduce the risk of trip and fall incidents caused by closing doors. Other benefits include updating the fire service and emergency operation, emergency LED lighting, and battery backup during power outages. Upgrading select elevator components over time can offer some benefits without having to incur the cost of a full modernization. Replacing door systems, fixtures, and communications can improve the elevator experience and provide value. To get the benefit of higher energy savings

and improved efficiency, modernizing the motor drive and control system is your best strategy.

Smarter controllers Modern controllers feature learning algorithms that can predict traffic as your building usage evolves over time, allowing elevators to “park” at floors that are likely to have higher traffic. Standby mode enables the elevator system to enter a low power “sleep” when not in use. These features combine with efficient drives to create significant energy savings over time. Destination dispatch enables riders to enter their destination floors before entering the elevator lobby. Often, floor calls are made on a centrally located panel before arriving at the elevators, allowing the system to create a destination itinerary before the elevator doors open. Screens in the lobby usher riders to the elevator serving their floor. This technology has some benefit in busy commercial centres but there is still a way to go for universal rider acceptance. Most destination dispatch systems remove in-car buttons, relying on floor calls outside the elevator. This may cause confusion for riders expecting to enter their floor destination from the traditional car operating panel.

Gearless machines Even with modern VVVF drives, many low- to mid-rise buildings were designed around a geared machine. Traditional gear boxes incur energy losses through overcoming internal friction and

the inertia of meshing gears. Electrical efficiency and lack of mechanical moving parts allow gearless motors to obtain efficiencies of greater than 90 per cent. The lower power consumption is often accompanied by quieter operation and cooler temperatures. Not all geared installations are suitable for gearless machines, as they are heavier and more expensive than geared counterparts, and building supports may not be suited for a gearless arrangement.

Conclusion Modernizing an elevator offers many benefits including improved safety, efficiency, reliability, and a better rider experience. One major benefit is significant energy savings, which can exceed the initial investment over the 30-year service life of the elevator. Please consult an elevator professional or sales representative for guidance on what strategy best meets your needs.

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rentalhousingbusiness.ca | 33

Kristin Ley, Partner, Cohen Highley, has joined RHBTV News as an on air legal analyst. Kristin will be answering questions from YOU our viewers. Send your questions to info@rhbtv.ca and Kristin will answer them on upcoming shows

JANUARY 2022

Housing at the forefront of the federal agenda By John Dickie, CFAA President

Before the September 2021 election, the federal Liberals had focused on the housing needs of low-income households. It was said (accurately) that the National Housing Strategy, enacted in 2017, was really a low-income housing strategy. Now, the heightened attention placed on housing affordability for the middleclass has led the federal Liberals to decide that they need policies which address that issue. The people most affected within the middle class are young people who have not yet become homeowners and want to. The Liberals are also concerned about homeownership for new immigrants and members of disadvantaged groups who do not have access to intergenerational wealth to help them buy a home. The Liberals want policies that will be popular, but they also want to be seen to be trying to make good policies, and to be able to show progress. The issues of concern for rental housing providers have expanded, both because new market rental housing serves the middle class and those seeking to join it, and because there is more pressure on the federal government to make effective use of the money and regulatory power it can apply to housing issues. The Liberals election promises on housing focus primarily on helping people buy their first homes sooner, with a more flexible First-Time Home Buyer’s Incentive, a discount on CMHC mortgage insurance, and a larger grant to offset closing costs for first-time buyers. The Liberals’ most expensive housing promise is a new $4 billion Housing Accelerator Fund to help municipalities approve housing development in a more timely manner, and to encourage them to approve more density.

Housing Accelerator Fund CFAA acted quickly to provide our input about the Accelerator Fund to CMHC. A first key submission was that facilitating purpose-built rental housing is critical for gaining more density, and for meeting Canada’s housing needs. The need for faster approvals for rental housing was at the forefront of the recommendations of the Canada-BC Expert Panel on the Future of Housing Supply and Affordability. The Panel recommended help for the municipalities to provide approvals faster. It was a key source of the idea that became the promise to create the new Housing Accelerator Fund. However, that focus was downplayed in the Liberal platform which promised the Fund. Better technology, better project management and better staffing should help the municipalities to provide development approvals for all housing in a more timely manner. So would more efficient planning processes, and a reduction in the power held by people who oppose development and greater density. Other issues in producing housing include shortages of skilled trades, construction equipment and sometimes construction materials. CFAA also addressed the question of Inclusionary Zoning (“IZ”). Promoting IZ was part of the Liberal promise to create the Accelerator Fund. Under IZ, a

rentalhousingbusiness.ca | 35

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NATIONAL OUTLOOK certain percentage of new housing units need to be sold or rented at a reduced price. The public tends to think that developers make lots of money; and so, they can afford to sell or rent some of their new units at a discount. Unfortunately, the facts are the opposite, especially for rental housing projects. It is clear to everyone who considers them that rental housing projects are often on the edge of financial viability. Economists largely agree that unless IZ requirements provide offsets for the lost revenue, IZ policies tend to reduce the supply of new housing, and make availability and affordability worse rather than better. CFAA made it clear to CMHC that support for IZ policies needs to ensure that offsets (such as greater density, waivers of development charges and the like) are included as part of the IZ policies. Visit www.CFAA-FACPI.org to read the whole submission. Approving and building more housing more quickly is critical to meeting the housing needs of Canada’s growing population. Housing providers across Canada are likely to hear more about the federal government’s new Housing Accelerator Fund, both in the 2022 Federal Budget and as the Fund works to address roadblocks in housing approvals.

Rent-to-Own for would-be homeowners Rent-to-own programs have also drawn new attention from the Liberal Party, and the federal government, as a means of supporting access to home ownership. As the second main plank in their immediate housing program, the Liberals promised an expansion of rent-to-own (RTO) opportunities. Currently, most of the investment in RTO programs comes from Mom and Pop investors who act as landlords for the rent to own term, and then transfer title to the RTO buyer at the end of the rental term. A number of such investors are affiliate members of CFAA through CFAA’s member provincial and regional apartment associations. RTO can also work for housing developers. While there are several RTO models, the most effective seems to be the tenant-first model. An RTO facilitator advertises for people who want to buy a house, but haven’t got the necessary down-payment or credit to obtain a favourable mortgage rate. The facilitator then qualifies the prospective homeowner, and tells them what price they can afford as an RTO purchase, based on their income, and what deposit they can put down. The “future owner” then chooses a house in their price range. At that point, the facilitator connects the future owner with an investor, and arranges an agreement among the three of them (including the facilitator), which includes: • how much the future owner will pay every month, • how long the RTO term will run, and • the future price of the house. The investor buys the house (or condo), effectively “lending” the future owner much of the downpayment, and the investor’s Class A credit rating (thereby obtaining a favourable interest rate). The future owner pays a market rent, and about 25 per cent more every month as additional, on-going deposits. Over the RTO term (of two to five years), the additional deposits accumulate, and the future owner repairs their credit, coached and encouraged by the facilitator. At the exit date, the future owner qualifies for a favourable mortgage with CMHC mortgage insurance, thereby getting a low-interest rate. The investor sells the house to the future owner at the fixed future price. With the tenant-first model and a good facilitator, the percentage of would-be owners who close on their house purchases can be as high as 90%, although it was not as high historically without active facilitators. A housing market that rises, but not dramatically, also helps achieve a higher closing rate. Those market conditions may not exist in the immediate future. CFAA is working with the Canadian Association of Rent to Own Professionals (CAROP) to address this niche housing opportunity with CMHC in a way that is respectful of the value of renting, and RTO and ordinary home buying. See www.CFAA-FCAPI.org for the CFAA-CAROP submission. Since RTO is a new field for CMHC, the new RTO support program may not be addressed in detail in this year’s Budget.

rentalhousingbusiness.ca | 37

JANUARY 2022

Other Liberal housing promises – using the tax system Other Liberal housing promises appear likely to be developed later than the Housing Accelerator Fund and the RTO expansion. That is a good thing since several promises are worrisome for rental housing providers. Examples are seeking to use the income tax system to prevent “renovictions” and to tax “excessive profit” achieved through rent increases on unit turnover. CFAA is addressing those issues with CMHC and the government. There are many reasons why rents can rise sharply on unit turnover: • The unit may have been rented at a low point in the market, and the rent has been depressed for years due to tight rent control guidelines • The market rent has moved up since the unit was rented, either generally, or for that particular location or unit type • The building’s facilities or infrastructure have been improved since the last new rental for the unit, making the unit worth more • Cost increases may have gone up more than the guideline rent increases. (That happened under COVID-19, as rents were frozen for various periods of time depending on the province, with low guidelines before and after the freeze, while costs escalated for heating fuel, cleaning and insurance.) • Building-wide capital repairs are needed for energy upgrades, component end of life issues and/or mandated retrofits to higher standards All those possible issues are in addition to the likelihood of renovations within the turnover unit itself, making the unit and its amenities more attractive, more up-to-date, worth more to the new tenant, and worth more in the rental market. Renovations improve the housing stock. Renovations are best done on turnover because that avoids disruption to tenants, and is more efficient and less costly. Renovations of rental apartments are commonly done at a longer interval than renovations in condo units, which is a good indication that the renovations are needed to make the unit attractive and up-to-date for prospective tenants. Many rental housing providers renovate some, but not all of their turnover units. That allows them to offer prospective tenants a choice of upgraded units at one rent, and standard units at a lower rent at the same building. Depending on the decisions of their new residents, those providers will upgrade more or fewer units, so that there is normally a wide range of options for tenants to choose from based on their preferences and budget. Interfering with the rental market would inevitably result in tenants being offered less choice and being less well served. The provinces already regulate the rental market in various ways, and their restrictions are part of the cause of the housing shortages which already exist in many areas. The last thing the rental market needs is federal regulation layered on top of existing provincial regulations and policy decisions.

WANT TO STAY UP TO DATE WITH NATIONAL OUTLOOK? Sign-up for CFAA’s National Outlook e-newsletter to receive up-to-date news on what is happening across Canada, as well as industry insights and insider information on CFAA happenings. Email communication@cfaa-fcapi.org to start receiving CFAA’s e-Newsletter today!

38| | January January2022 2022 38

rentalhousingbusiness.ca | 38

NATIONAL OUTLOOK CFAA Rental Housing Conference 2022 CFAA is excited to welcome you back this year CFAA’s most prominent event is back in person this year! CFAA is pleased to announce that the CFAA Rental Housing Conference of 2022 will be held in person this year. Join CFAA from May 9 to May 11, 2022, at the Hyatt Regency hotel in downtown Toronto. Early Registration is now open, early bird pricing. Register before Wednesday, March 9 to save! Please visit CFAA-RHC.ca to register today, or email events@cfaa-fcapi.org with any questions

What to expect for 2022 CFAA Rental Housing Conference celebrates excellence in rental housing across Canada. CFAA-RHC 2022 will consist of two days of education sessions from industry leaders and other experts on a variety of timely topics from rental housing leaders. To lead off on Tuesday, May 10, Benjamin Tal, Deputy Chief Economist at CIBC, will give his informative, entertaining and thought-provoking Economic Update at 8:30 am. Over May 10 and May 11, CFAA will cover education sessions on a variety of topics within the following subject areas: • Technology for marketing and leasing, • How the rental housing industry can help solve the housing crunch • Equity, Diversity and Inclusion • Climate change & clean energy solutions • Artificial intelligence • Human resource topics Visit CFAA-RHC.ca to view all our education session topics for the 2022 Conference. Monday, May 9, will include the afternoon Building Innovations Tour, welcoming attendees to two exceptional new rental developments in Toronto. More information will be available soon. CFAA’s Welcome Reception will follow. To learn more about CFAA’s Rental Housing Conference and the buildings that will be featured on the Building Innovations Tour, read the next issues of RHB or sign-up for CFAA’s newsletter by emailing communication@cfaa-fcapi.org. CFAA’s annual Rental Housing Awards Dinner will take place on Tuesday, May 10. The night will feature industry leaders from coast to coast and the best of the best. While the finalists will be announced ahead of time, the Awards winners will be announced at the CFAA Awards Dinner. It will be an exciting night, filled with socializing, awards, and great food. CFAA-RHC 2022 will offer exceptional industry knowledge and networking opportunities. Whether you’re a rental housing provider or supplier, there will be an abundance of information and contacts for you and your business at CFAA Rental Housing Conference 2022 Don’t miss, the Supplier’s Council Showcase both days on the exhibition tradeshow floor, which features CFAA’s Supplier Council Members demonstrating their industry leading products and services.

rentalhousingbusiness.ca | 39

JANUARY 2022 SPONSORSHIPS AND EXHIBITING CFAA-RHC is a great opportunity to reach decision makers in Canada’s apartment industry, including major rental providers and leaders of apartment associations from across Canada. Interested in becoming a sponsor? Email events@cfaa-fcapi.org for more information or to sign-up.

COVID-19 Measures At CFAA Rental Housing Conference, all staff and guests will have to follow public health rules as set by governing federal, provincial and municipal health authorities. As appropriate, this will include: • Providing proof of vaccination • Wearing a mask in indoor places • distancing and reduced capacity limits Unfortunately, it is difficult to foresee COVID-19 related risks as they are ever-changing. CFAA and the Hyatt Regency Toronto will be prepared no matter what the circumstances. Everyone’s safety will be top priority. We are eager to get back to face-to-face interactions this year, but it is essential to ensure everyone’s safety. If CFAA Rental Housing Conference 2022 does not take place in-person (whether due to the government prohibiting it, or CFAA cancelling it for any reason), registrants will be eligible for a refund of 100% of their registration fees.

CFAA Awards Program

The CFAA National Awards Program recognizes excellence and notable achievements of rental housing providers, industry suppliers, and industry associations across Canada. The CFAA Awards program is open to rental housing provider members of CFAA member associations, direct CFAA members, and CFAA Suppliers Council members. Award Categories for 2022: • Property Manager of the Year • On-site Employee of the Year • Off-site Employee of the Year • Rental Housing Provider of the Year • Marketing Program Excellence of the Year • Rental Development of the Year • Renovation of the Year • New Product or Service of the Year • CFAA Suppliers Council Member of the Year • Association Achievement of the Year

Eligibility criteria for Rental Housing Providers To enter the awards competition as a rental housing provider, your company needs to be a member of CFAA in the province or city in which the building, company, or employee operates, either directly or as an affiliate member through a CFAA member association in that region.

40 | January 2022

NATIONAL OUTLOOK HOW TO APPLY The CFAA Awards application portal is now open. To apply: 1. Read Over the CFAA Brochure for 2022 found on the Awards Program page on CFAA-FCAPI.org 2. Confirm your eligibility by filling out the Eligibility Self-Assessment 3. If still have questions, email awards@cfaa-fcapi.org 4. Ensure your membership is in good standing with CFAA, or as a member of a CFAA member association 5. Using the brochure, prepare your answers ahead of time in a separate word processing document. Have any documents and photos prepared and on hand to be uploaded. 6. Submit your application through the Awards Portal on CFAA’s website. You should receive a confirmation of your successful application from a CFAA representative within 24 hours of submitting your application. Please be patient close to the awards deadline, as CFAA receives a large volume of applications at that time. The deadline to submit completed awards applications is Thursday, March 10, 2022 at 11:59 pm PDT.

Call for Judges and Sponsors The judges are independent people with long experience working in rental housing in the area which they are to judge. Help CFAA celebrate excellence in our industry! If you are interested in volunteering to be a judge for the CFAA Awards Program, please visit https://www.surveymonkey.com/r/BQNZDD5

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PRESIDENT’S MESSAGE The HDAA sends best wishes to everyone for the new year and hopes everyone had a restful holiday season. We made it to a new year, but the pandemic still has a strong grip. Ontario is under lockdown again with a phased opening lasting approximately three weeks each, with the last phase expected to start on March 14. We hope it will be quicker than that and this is the last lockdown we have to endure, and the last year where COVID-19 is the hottest topic in the news. The HDAA is excited about the possibility of having in-person events this year and seeing members in person. We had to cancel our January dinner meeting due to the lockdown but hope we can have one in March or later in the year. -

Arun Pathak, President, HDAA

HDAA Board of Directors The HDAA is excited to announce our new Board of Directors. The Board plays an integral role in the guidance of the association and is responsible for its initiatives, events, education, and lobbying efforts. Without our Board, the association would not be able to run as smoothly. Although the HDAA will see some new faces on the Board, we will unfortunately lose a couple of Board members who have been integral to the association. Mary Ongaro, President of Absolute Ventilation, and Tina Novak, Past HDAA President, have stepped down. Mary and Tina have been on the Board since 2013 and have been integral to how the association has run over these years. We thank them for the countless hours they invested in the HDAA and how vital they have been in shaping the association. We are excited to announce three new Board members, who have great knowledge and experience in the rental housing industry.

Darren Slemko Darren is president of Tennier Sanitation and a long-term real estate investor, purchasing his first property at 23. His passion for real estate has led him to build a portfolio of real estate in Hamilton, across Canada, and in New

Darren Slemko

York State. Darren holds a business degree in financing and accounting, starting his career as a senior analyst in capital markets, moving into a senior executive role in mergers and acquisitions and then CFO of an international business. He shifted from handling acquisitions for others into making one of his own, and acquired Tennier Sanitation in 2018. Darren’s passion is real estate, creating exceptional customer experiences, and expanding the markets Tennier services. He looks forward to continuing to invest in the Hamilton Region business community.

Paul Martindale For over 25 years, Paul has been involved in the real estate sector from investing, managing, and rehabilitating multiresidential and commercial properties. He is a member of the Realtors Association Paul Martindale of Hamilton-Burlington, a two-time Past Regional Commercial Council Chair and Board Director, and a Broker of Record and Principal of WINK Property Investment (1996), WINK Properties & Realty Inc., and other multi-party syndicate groups. Paul has been an outspoken advocate and industry spokesperson, from amalgamating efforts of various stakeholders, to opposing threats, detrimental policies or over-regulation contemplated by

rentalhousingbusiness.ca | 45

bureaucrats or local city councilors (e.g., municipal rental property licensing). He encourages those who benefit from or provide essential affordable rental housing or related services to engage in and defend this segment. Paul has sat on the HDAA Board previously and was an active member and advocate.

Samer Taleb Samer is the Regional Property Manager for Southwestern Ontario at BentallGreenOak and oversees properties in Hamilton. He has several years working in property management, previously working for LiveHere Property Management, Greenwin Corp, Timbercreek Asset Management, and Transglobe REIT. Samer’s widespread experience in property management is inclusive of operations, budgeting, capital planning, Samer Taleb procurement, legal matters, and leading teams to success. He is an Accredited Member of the Institute of Housing Management.

Ontario Provincial Election The Ontario government will be holding an election in June, and the results may impact the rental housing industry. There have been many articles about the affordability of rental housing and what can be done to help tenants. Many point to renovictions and wrongful evictions as some causes of the affordability issue, and many suggestions have been made to help with this lack of affordability. The most controversial is vacancy decontrol. There has been a lot of talk about Ontario’s current vacancy decontrol. It is argued it provides a financial incentive for landlords to push tenants out to reset the rent to an amount that is competitive with the market. Others argue tightening rent control would stop renovictions and provide tenants with more safeguards, as well as make housing more affordable. However, there are many issues with rigid, unit-based rent control. With such tight rent control, there is no way for landlords to recoup costs incurred when renovating or updating a unit, creating a financial burden for landlords. Many would not be able to remain in business as the costs would be too high due to inadequate rent amounts. Vacancy decontrol is likely one of the last remaining positives for the industry; the effects of removing it could be catastrophic. Landlords are barely able to make ends meet with current rent increase guideline amounts. The cost of heating, maintenance, and insurance have increased substantially, and rent increase guidelines have not kept pace, putting landlords further behind year after year. Interest rates will potentially be increasing this year; currently, landlords cannot ask for AGIs for increased interest rates, putting landlords further behind, increasing their costs with no way to recover them. Any further caps on rent amounts or ability to recoup costs would be a significant blow to landlords and the rental housing industry. If it weren’t for turnover, landlord incomes would have been going down year over year. Vacancy decontrol has kept landlords above water and may be keeping the industry alive. Some form of rent control has been in place in Ontario for some time with varying degrees of severity. It was first introduced in 1944 under the National Housing Act but was repealed in under a decade after lobbying efforts. More modern rent control began in 1975 with the enactment of the Residential Premises Rent Review Act; it was further tightened in 1985 by the Liberal government and then in 1992 by the NDP government with the Rent Control Act. Under that Act, the allowance for major repairs was cut back dramatically, and

46 | January 2022

rents had to be registered to prevent increases on turnover. A landlord was not allowed to raise rents on unit turnover if the new rent was higher than the registered amount. This led to many landlords being unable to afford major repairs, causing some buildings to fall into disrepair. Then, in 1997, the Progressive Conservative government enacted the Tenant Protection Act, which repealed the Rent Control Act. Landlords were allowed to raise rents on unit turnover, and rents did not have to be registered. However, there was a limit on rent increases for existing tenants, except on units built or first occupied after 1991. This partial rent control extended into the Residential Tenancies Act enacted in 2006, and will continue into the Protecting Tenants and Strengthening Community Housing Act, 2020. Up until 2017, rent control only applied to units first built or occupied before November 1, 1991; in April 2017, this exemption was rolled back and rent control was applied to all units. Rental increases could be no higher than the rate of inflation and capped at 2.5 per cent. Doug Ford’s government enacted legislation in 2018 so new construction was not subject to rent control; all units built or occupied after November 15, 2018 would not fall under rent control. This was done to increase supply by incentivizing investors and encouraging developers to build. We are now in a climate where the only units without rent control are those built after November 15, 2018. It is easy to see which party is favourable to the rental housing industry through legislation enacted on rent control. We are in a precarious environment; housing prices are at an all-time high with inventory at an all-time low and these issues extend into the rental industry. Housing affordability and supply are constantly in the headlines; these issues will need to be addressed during the next election. The political parties must provide a platform on rental housing.

Within the rental housing industry, there is much concern that tighter rent control will be at the top of the list of possible solutions, particularly for political parties that have been open to that. If, in the upcoming election, rental affordability is enough of a hot button issue that there will be pressure to proceed with it to secure votes, then the Ontario Progressive Conservative Party may feel the need to include it in its platform. If the only obstacle to winning votes was rental housing policies or more strict rules around rents and rent increases, then they might proceed in this way rather than continuing good rental housing policies. HDAA has a strong voice at Queen’s Park through FRPO, which continues to advocate for rental policies that encourage more supply, and defend policies essential to landlords, including vacancy decontrol. All landlords should stay informed about the next Ontario election and vote wisely, as the repercussions may be great. Once the platforms are announced, we will provide more details to members and a rundown of each party’s platform and the effects they may have on the rental industry.

Upcoming events March 9, 2022 – Dinner Meeting The HDAA had to cancel our January dinner meeting but we hope to hold our dinner meeting in March. It will be the first time the HDAA will be holding an in-person event since the start of the pandemic and we are looking forward to seeing members again. The HDAA will be announcing and introducing our new Board members and will be discussing general updates within the HDAA, as well as our plans for the new year. We will be providing more details leading up to the event but encourage members to hold the date in their calendars.

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

rentalhousingbusiness.ca | 47

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Chair’s message This report addresses two issues Ottawa rental housing providers need to address now. Below is a description of the City’s work on increasing recycling in multi-res buildings. Please help by completing the City’s survey. On the next two pages, you will see a description of the working of the new vacant unit tax, which will impose an extra property tax of 1 per cent on units vacant for six months or more in buildings up to six units in size. There are various exemptions, but planning to avoid the tax needs to start now. - John Dickie, EOLO Chair

Green bins may soon be coming to all Ottawa multi-res buildings The City of Ottawa is developing a new Solid Waste Master Plan. An overall goal is to reduce the amount of solid waste the City generates, both by reducing waste and by increasing recycling. A key goal is to extend the life of the Trail Road Landfill, where much of the City’s garbage is disposed of. As part of that work, the City is developing a Multi-Residential Waste Diversion Strategy. There are currently five pillars to that draft strategy: 1. Expand Organics Diversion to all Multi-Res Properties 2. Enhance Promotion & Education 3. Explore Pilots 4. The Built Environment 5. The 2025 Collection Contract City staff recognize that not all properties will be able to provide organics diversion right away. They intend to work with property managers to determine how they can best divert organics. Some buildings lack space for inside or outside storage of the full or empty green bins. Other buildings have tenant populations who do not adapt readily to “sorting garbage.” A variety of tactics are potentially available. One is enhanced promotion and education on an ongoing basis. City staff will develop written material in multiple languages, and will speak at meetings, or staff booths, in multi-res buildings to convey the message that residents must do organic recycling. Other potential tactics include repurposing garbage chutes to serve organic recycling, closing the chutes and on-floor garbage rooms, or adding more recycling pickups to address lack of space. The City wants input on how they can achieve more recycling in multi-res buildings at the least

trouble and cost to us and to the City. While the residual garbage contract is paid for by a per-unit charge, recycling is paid through the general levy on the tax bill. That is not expected to change. Recognizing the difficulties in achieving a high level of organic recycling in multi-res buildings, the City is considering a pilot project on the use of in-unit food grinders (“garburators”), which grind organic waste for it to be flushed through the sanitary sewer system. That would be a major reversal of municipal policy, since garburators have been banned for many years in Ottawa. The City will also be doing a survey of multi-res solid waste issues through its website, Engage Ottawa. EOLO encourages rental housing providers in Ottawa to complete the survey. Please fill out that survey as soon as you read this! Please send your ideas to address organic recycling to EOLO, at admin@eolo.ca, so we can put our weight behind the best ones. If your company is an EOLO member, watch for an EOLO e-Newsletter about the survey. If your company is not currently an EOLO member, now would be a good time to join. For more information, email admin@eolo.ca.

rentalhousingbusiness.ca | 49

New City tax to apply on vacancies during 2022 Several months ago, Ottawa City Council approved a proposed vacant unit tax (VUT) in principle. The City’s goals are to gain more rental housing supply, and pressure owners to keep old properties in a better state of repair. City staff have consulted about the details. EOLO spoke with City staff, and provided written submissions. The City staff have not yet issued their report and some details of what is reported below may change before, or when, a final decision is made in the next few months. However, the City wants EOLO to let rental housing providers and developers know what is probably coming now. The key reason for raising awareness now is the City intends to begin to levy the vacant unit tax in 2023, based on the vacancy/occupancy status of properties in 2022. Therefore, property owners may have to take action NOW to avoid a surprise property tax bill in 2023.

Key provisions The following key provisions are already determined, or are very unlikely to be changed: • By provincial law, the new tax will only apply to residential units (i.e., one to six units on an assessment roll number, not seven or more units, which are multi-residential) • The standard test for a vacant unit will be vacancy for six months or more during a calendar year, which need not be consecutive (triggering the VUT for the next year) • There will be a suite of exemptions as described below These additional provisions are unlikely to change: • For 2023, and until further notice, the tax rate will 1 per cent of assessed value; that is slightly more than the total residential tax rate is now, so the new tax will double the tax bill on an entirely vacant building • Units within two- to six-unit buildings will be assessed individually • There will be a list of exemptions (i.e., situations in which property owners can claim exemption from the tax even though they have one or more units vacant for six months or more during a calendar year) • Owners will be able to use the exemptions in combination • Owners (or property managers) will need to fill a declaration early in each year, stating the occupancy status of their properties during the previous calendar year, and claiming any applicable exemption (all homeowners will need to file the declaration too) As an example, in January or February 2023, property owners will need to declare the vacancy status of their properties in 2022, and claim any exemption they are entitled to. If the property is vacant for six months or more in 2022, the VUT will be added to the final tax bill for 2023, issued in May. That will also happen if no declaration is filed. In 2023, the City intends to accept a late declaration without a late filing fee until April. After that, the late filing fee will likely be $250. After the tax has been imposed, an owner will be able to appeal the application of the tax, but there will be an appeal fee. The onus will be on the owner to demonstrate the property (or unit) was occupied, or an exemption was applicable.

Exemptions These exemptions are likely to be adopted: • Principal residences (including homes with “granny suites”) • Rural residences with a short-term rental permit • Seasonal property • Owner in a care home

50 | January 2022

• The year of the owner’s death and the next year • A court order in a lawsuit that is blocking use or occupancy (unless the order is due to the owner’s negligence) • The year of purchase • Construction or renovations under a building permit Property owners will be able to combine exemptions. For example, if a vacant property is purchased early in the year, vacancy for the rest of the year will not trigger the tax. If a building permit is sought reasonably promptly and obtained by May or June of the next year, and construction begins promptly, the vacancy in the next year will not trigger the tax.

developers to avoid vacancies. Exemptions that EOLO sought but has not achieved:

The City wants property owners to keep properties in habitable condition at all times, and to plan carefully to make the removal of tenants happen as late as possible in the re-development or renovation process. EOLO has explained that would be much safer for owners to do if the Landlord and Tenant Board were functioning in a more timely and reliable manner.

The vacancy tax rate

Exemptions sought but not obtained EOLO finds it ironic and annoying that much of the vacancy during re-developments occurs due to delays in the City’s approval processes, and in the necessary applications at the Landlord and Tenant Board. Yet the City is putting pressure on

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• Land assembly for re-development (before a building permit) • Units where the owner is actively moving forward toward demolition or renovation • Units where the necessary permits have been applied for • Units deemed uninhabitable • Units on the market at market rent, but not rented EOLO might still be able to obtain one or more of those additional exemptions, but no one should count on that. While the tax rate of 1 per cent of assessed value was chosen when the VUT was approved in principle, there was apparently pressure to increase that rate. The ordinary total residential property tax rate is close to 1 per cent, so the total property tax bill will double on vacant properties. In contrast, Vancouver’s current VUT rate is now 3 per cent, which increases the total tax by ten times (since Vancouver’s standard residential property tax rate is much lower than Ottawa’s). EOLO opposed any increase in the VUT rate, and for now our voice was heard on that issue. We will have to be diligent about opposing any future increases in the VUT rate.

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PRESIDENT’S MESSAGE Website redo improves appearance, functionality LPMA’s revamped website is now live! Please visit www.lpma.ca for a quick peek. The website’s member portal, with members’ account information and invoices, ability to register and pay for events, and much more, is under way and is expected to be ready in March. Our December Christmas party had to be cancelled due to public health recommendations. LPMA continued with the toy drive and donation drop-off at the office. The attendee prize draw was held virtually at the January meeting. LPMA would like to congratulate Richard Izawa as the 2021 Lifetime Achievement Shane Haskell Award winner. He has been a part of LPMA for more than 30 years, was president from 2007 to 2009, and continues as an honourary member. During his tenure, Richard’s largest accomplishment was fighting to lessen the impact of the City of London licensing bylaw change. Richard has been an advocate for the rental housing industry and, more importantly, he remains a friend to many. Until next time, be well and stay safe.

- Shane Haskell, President, LPMA

L A N D L O R D S H E L P I N G L A N D L O R D S I N S P I R E L P M A’ S O P E N F O R U M S The cancellation of LPMA’s live education sessions at the start of the pandemic left a void for many small landlords who missed the input of more experienced members. As a result, LPMA decided to launch open forums, a regular online networking session that helps small landlords learn from others. The first session was held on Zoom last July and the concept has quickly caught on, said Amina Meddaoui, an LPMA board member and a director with York Property Management. “The smaller members don’t have a network Amina Meddaoui of people that they communicate with on a regular basis. This is a perfect opportunity for them to meet new people and discuss their issues and concerns, and learn from others,” she noted. Open forums take place monthly on Tuesday evenings and run for an hour. Meddaoui and

fellow LPMA director Laura Groshok take turns moderating. “It’s a small, intimate session where everybody has a chance to communicate, to listen, and to jump in whenever they want to,” Meddaoui said. “But it’s really led by the conversations that come up during the forum. We try not to push information out. It’s more letting people discuss and give feedback.” Discussions have included the issue of homelessness in London, the backlog of eviction hearings at the Landlord and Tenant Board, the importance of tenant insurance, and ways of dealing with challenging tenants. Board members with experience or expertise in a particular area provide their feedback, but Meddaoui said it isn’t intended to be viewed as advice. Many associate members also join the group and are able to offer a service or product to another member who needs it, solving a problem in the process. “It’s been fairly successful so far,” said Meddaoui. “We have about 20 to 30 people registering and about 20 people who attend each session.”

rentalhousingbusiness.ca | 53

Graham Spriel has attended every session. As a landlord for the last 10 years, he balances his full-time day job with owning and managing six smaller multi-family rental properties. He was attracted to the camaraderie of the open forums and the ability to tap into the experience of others. “It can be lonely being a small landlord especially if you find yourself in a challenging situation with tenants,” Spriel recalled. “Even hearing about the challenges that others are having, people sharing tips and posing questions — it’s typically good information for everyone. Things constantly change and it’s good to be able to hear about what problems people are trying to resolve.”

Graham Spriel

Spriel said he particularly appreciated being reminded last fall of the need to notify his tenants of their annual rent increase, which took effect on January 1. “I would have forgotten about it with everything going on this year if it wasn’t brought up on the call back in September. That saved me. I would have missed it. That was a really big help.” Meddaoui said she and Groshok try to make the open forums as welcoming as possible so participants have an opportunity to speak. “When you come, you might learn something you weren’t expecting to or you might be able to provide something for somebody else. I think it’s been great and I hope we can continue it indefinitely.” T I M E LY M A I N T E N A N C E C A N A V O I D L I F E T H R E AT E N I N G B U I L D I N G FA I L U R E S News coverage depicting catastrophic building collapses often makes viewers speculate that faulty design or lack of maintenance is to blame. However, the actual reasons are usually much more complex. Michael Hensen, a professional engineer with IRC Building Sciences Group, was the guest speaker at the LPMA Love of Housing meeting on January 11. He used photos of structural failures to illustrate what can go wrong in new and renovated buildings, and how to prevent problems. Building deficiencies and construction failures aren’t confined to older buildings or to those in Third World countries. In fact, Hensen said that IRC receives three to four calls a week from building owners concerned about water leaks. Although putting a pail under a drip takes care of the immediate problem, that drip can lead to “catastrophic and life-threatening failures,” he noted. “Little annoying things can snowball into larger issues.” Hensen cited the example of the 2012 Algo Centre Mall tragedy in Elliot Lake. Two women died after part of the mall’s rooftop parking garage crashed into the shopping area below following years of water and salt penetration. “It was a tragedy. There were several people hurt and there were some deaths, as well. These things do happen if you’re not paying attention,” Hensen said.

Warning signs All structural components, including concrete, steel, and wood, have weaknesses and are susceptible to failure. Early warning signs include concrete spalling, which begins when the steel reinforcements embedded within concrete rust due to exposure to water and air. The steel expands, causing the concrete to crack, break off or spall, exposing the corroded steel reinforcements. It’s a warning sign that the concrete and steel are losing their strength and must be repaired, Hensen said. Hidden deficiencies can be hard to find. He pointed to a photo of a steel column that was taking the weight of six storeys of balconies. When the wall around the column was opened up, it was evident

54 | January 2022

that the column was about to give way due to corrosion from water that wasn’t being properly managed. Wood isn’t immune to problems, either. Wood rot results from slow, often undetected, leaks that cause deterioration. Cracks in mortar on stone cladding are another early warning sign.

Renovations and modifications Many owners are renovating their older buildings to modernize them and make them more visually appealing to renters and purchasers, and to increase their energy efficiency. However, the changes may exceed the load capacity of the original structure. “You might be doing all these fancy things on the outside but if the structure can’t take it, you can’t do it because it will lead to possible failure,” Hensen said.

balconies, and cladding in a project that included changing its use from apartments to condos. Because there weren’t enough fasteners to hold the cladding panels in place, the wind blew the panels off the building, exposing the building membrane beneath. “It exceeded the capabilities of the structure and the modifications they made,” Hensen said.

Engineering considerations When building owners are considering renovations, Hensen cautioned that they must respect the requirements of the building code, building standards, and bylaws. The renovation must also be designed to suit the building and to meet the owner’s objectives and budget. The materials that are selected also need to suit the building. For example, if the cladding is replaced, it must be compatible with the window and roof systems. A building’s exterior envelope has to keep out weather, resist air leakage and infiltration, and maintain interior temperatures and humidity. “Everything has to work together to create that environmental separation to protect your building,” Hensen said.

Algo Centre Mall, Elliot Lake

He emphasized the need to choose contractors who are not only experienced but also qualified. He also advised LPMA members to ask their municipality if a building permit is needed, to be wary of deals, and to use tested solutions that are customized to their buildings. Hensen concluded his talk at the point where he began.

In one example, he discussed a project in which a landscaped green roof was added to the top of a university building. Although he believes green roofs can be a good option, this one collapsed onto the floor of the gymnasium below.

“A leak can require more than plugging a few holes. Neglecting your building’s structure can have detrimental effects. That little leak could become a building collapse if left unattended,” he said.

“It was a total catastrophe. They made this change without even thinking about what impact it had on the structure,” Hensen said.

“Consider employing a professional as an outside set of eyes to complement your capabilities and your understanding of what’s going on. The search for the easiest or cheapest solution often results in the poorest results. Unfortunately, I see it, on and on.”

He also described a 40-year-old apartment building that was being upgraded with new windows,

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.

rentalhousingbusiness.ca | 55

CFAA Rental Housing Conference 2022 The Canadian Federation of Apartment Associations invites you to join us at Canada’s Rental Housing Conference in Toronto, May 9 to 11, 2022. Building Innovations Tour 25 Education Sessions Rental Housing Awards Dinner See the full conference schedule, and register now!

www.CFAA-FCAPI.org

CFAA Rental Housing Awards Program 2022 Deadline to apply: March 10, 2022 Recognizing excellence and achievements by Canada’s Rental Housing Providers, Suppliers and Associations. Thanks to the principal sponsors:

Thanks to the supporting associations:

PRESIDENT’S MESSAGE Welcome to 2022 and a new year of hope! As we push the end of the second year of the COVID-19 pandemic, the outlook for the multi-family sector continues to look strong. Rental rates are on the rise as a lack of available product both in the rental and ownership sectors is having an impact on the rental market. Pricing for apartments also continues to rise at a ramped pace, as there continues to be a big gap in contract rents versus what is being charged in the market. There is, however, something to watch. Interest rate changes are coming in 2022. The Bank of Canada has suggested that rate hikes are coming and likely as soon as March. This will have an impact on values, as it will become more expensive to James Craig place debt on new purchases or refinance your property. How fast or how much interest rates increase will be anyone’s guess. As we look back on 2021, it was a huge year of new development in the Region. With an almost 60 per cent increase in new building permits from 2020, 3,357 new units were started in 2021. Kitchener was the biggest contributor with 2,170 new units. This includes both rental and condominium buildings; however, many condominium units end up in the secondary rental market. There is a big pipeline behind it so there is a strong likelihood this trend will continue. We will have CMHC provide a market update in March during our member meeting. Affordable housing will be a huge theme as we move through the year. This means many things to many people and it affects many people from all walks of life. All levels of government are working on new programs, grants, and legislation that will focus on trying to provide more affordable housing in all markets. It will no doubt be a huge election issue come June. Some measures will be good, and others may not be as helpful or positive for the industry. It will be important that, when appropriate, we as housing providers participate in the conversations. We will be part of the solution and it is important that our voices are heard. WRAMA will make our membership aware of any stakeholder opportunities and where you can provide input. Please have your voice heard during this important conversation. Stay safe and I hope to see you soon.

- James Craig, WRAMA President president@wrama.com

Meeting update While we continue to navigate the pandemic in the province as well as in Waterloo Region, we will review how we can bring value to our members. We will monitor the situation locally and, when we feel the time is right, will host in-person events. However, we will continue to provide online events until COVID-19 restrictions have been relaxed.

Rental rates in Waterloo Region

Figure 1: M edian Rent, 1-Bedroom Apartments: $1,695.00 (up 25% from 2021)

This year seems to be a promising year for landlords in Waterloo Region. As our housing market continues to boom, so too does our rental market. The following rental rate information for January 2022 has been provided by zumper.com. All tables and statistics are from zumper.com. To learn more, visit https://www.zumper.com/rentresearch/waterloo-on.

rentalhousingbusiness.ca | 57

Figure 2: Median Rent, 2-Bedroom Apartments: $1,700.00 (up 6% from 2021)

Figure 3: Median Rent, 3-Bedroom Apartments: $2,225 (up 20% from 2021)

While there are some new rental housing developments on the horizon, it is likely that rents will continue to trend upward as we progress through the year. An observation from the information provided by Zumper.com is the price difference between one- and two-bedroom units. With a $5 difference, the consideration is whether a one-bedroom unit’s rental amount is too high, or whether two-bedroom rents could be increased to place more value in having more space.

Zumper’s rental data versus CMHC’s rental data There are several important differences between the rental data provided by Zumper and the data provided by CMHC in its annual Rental Market Report. The Zumper data is based on a much smaller sample size than the CMHC data. For February 2022, the Zumper data for Waterloo Region comes from two studio rental ads, 17 one-bedroom ads, and 20 twobedroom ads. Because of the small sample size reported, and constant updating, average rents can move from day to day, or stay completely unchanged (see Table 1). Table 1: Zumper rental data for Waterloo Region Apartment Type Studio

Zumper at Jan. 28, 2022

Zumper at Feb. 2, 2022

N/A

$1,278

One bedroom

$1,695

Two bedrooms

$1,700

$1,810

Three bedrooms

$2,225

On the plus side, when you dig into Zumper’s data, you can see the approximate location of each listing, with the applicable rent. CMHC’s rental data come from close to 36,000 apartments, consisting of 800 studios, 11,400 one-bedrooms, 21,900 two-bedrooms, and 2,200 three-bedrooms. On the negative side, all of CMHC’s data is reported by average for neighbourhoods. That protects the privacy of the landlords who have provided their data, but obscures the detail of the rent ranges.

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Zumper’s data is much more current than CMHC’s. Zumper’s data is updated every day or two, and reported in real time. CMHC is to release its data for October 2021 in late February 2022. Last year, the October 2020 data was released in January 2021. For several years prior to 2021, CMHC had released its October data in early December (or even late November). We can hope they will move up the release dates as they get more used to processing the new data they are collecting. The last big difference between the data sets is Zumper is reporting on rental units that are turning over (and at that, reporting on asking rents, which may be slightly higher than contract rents). For the most part, CMHC is reporting on all rents, including tenancies that started many years ago. In a rising rental market, long-standing tenants are almost always paying a lower rent than tenants who took occupancy recently. See Table 2 for a comparison between Zumper’s and CMHC’s data. Table 2: Zumper vs. CMHC rental data for Waterloo Region Apartment Type

Zumper at Jan. 2022

Zumper at Oct. 2020

CMHC at Oct. 2020

Studio

Difference

$863

One bedroom

$1,695

$1,370

$1,076

27%

Two bedrooms

$1,700

$1,615

$1,295

25%

Three bedrooms

$2,225

$1,965

$1,435

37%

For the 2022 survey, CMHC is taking steps to differentiate between existing rents and rents on turnover. Watch for their release in early 2023 to see how far they have gone in that direction, and what that data shows.

Affordable housing update in Waterloo Region Waterloo Region continues to explore ways to increase affordable housing supply. We are currently working with the Region to bring our members an important survey relating to the supply of affordable housing, feedback relating to providing affordable housing, and concerns with respect to providing affordable housing. When available, we will provide members with a link to the Region of Waterloo’s Affordable Housing survey. We encourage all rental housing providers to take the time to submit their feedback. In early January 2022, Housing Minister Ahmed Hussein announced that the Federal Government had secured funding for a total of 74 affordable housing units in Waterloo Region. The goal is to have the housing finished and ready for occupancy by the end of 2022.

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Final Take Away

Brought to you by Yardi Canada Ltd

What to consider when selecting property management software By Peter Altobelli, Vice President, Yardi Canada Ltd.

The future of the Canadian real estate market is filled with optimism even as the world of property management continues to change. In 2021, we saw the rise of PropTech, hybrid work environments, and environmental social growth (ESG) initiatives. In 2022, the mantra will be seamless experiences for residents, staff, and investors. But how do you determine which software provider can help you accomplish your goals and maintain a competitive edge? Here are three musts to consider when selecting a new tech partner.

Evaluate your business strategy Prior to selecting any new software, identify where you’d like to see technology improve operational efficiency. You may be tempted to look at a dedicated accounting system to automate your accounts payable and receivable, but basic accounting software is not designed to help you manage your properties. Look for a solution that handles marketing, leasing, operations, communications, reporting, and accounting. The right software should also offer fast and easy ways to improve security, be CASL compliant, and let your team work effectively from anywhere.

Develop a tech roadmap Sifting through all the tech options out there is not only time-consuming, but also unrealistic. Stick to your business strategy and prioritize which software features you want to understand and implement first. For instance, you may deploy resident and owner portals before investor portals. If you are planning to expand beyond your province’s borders, you will need a partner that is truly invested in the Canadian market. See if they can provide province-specific features and automate financial reports that will help you meet local landlord and tenant requirements. Having a plan in place will better ensure your team’s time is being used in a meaningful way, making it easier for them to confidently adopt new tech and help you control costs.

Budget for technology goals Setup costs can add up quickly, but there are some software providers that do not charge setup fees. Seek out providers that also provide dedicated assistance to new clients, ensuring

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they never feel left to fend for themselves with their new tech. Ask the product expert about the support they offer during the initial phases of implementation as well as thereafter. Consider what kind of support and training will be required to empower your staff to perform efficiently. Your team should have access to a wealth of free, easily accessible resources, such as documents and videos. It helps if these resources live in the cloud, available 24/7 to anyone within your organization. And don’t forget about the future. As you grow your business, needs will change — does your chosen software provider offer a scalable solution? You may want to expand your accounting functionality, roll out property websites and resident screening, set up bill pay services, and more. It will save you time and money in the long run if you can do everything within a single stack solution.

Think beyond 2022 With a little guidance and a forward-thinking mindset, finding the right software is easier than you think. However, the best software won’t necessarily come knocking on your door: You have to do the research, ask the right questions, and pay close attention to the answers. The software representatives you engage with should be able to demonstrate why their offering sets you up for the next decade, not simply the next few months. Lastly, no matter what anyone tells you, company reputation matters. Look for established tech solutions that have stood the test of time. They’re most likely to have fully developed solutions you can trust. To learn more about your tech options, visit YardiBreeze.ca.

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