RHB Magazine Jan/Feb 2025

The

RENTT: Rental housing associations look ahead to 2025

Conducting regular unit inspections boosts profitability, safety, and compliance

There are numerous benefits to conducting regular unit inspections throughout the year.

The balance of AI and humans in Canadian residential markets

Adopting AI effectively requires a thoughtful, phased approach focused on meaningful benefits.

How will new tax laws affect the rental housing industry?

Some policy changes include tax breaks intended to make it more affordable to build purpose-built rental housing.

EDITOR’S NOTES

The new year begins with a bang

I cannot remember a new year with so much significant change right off the bat – or perhaps my memory isn’t what it used to be. Canada will have a new Prime Minister no matter who wins the next federal election. Ontario’s Premier Doug Ford called a snap election. The new (old?) U.S. President came out swinging on his first day in office and made numerous Executive Orders, proclamations, and threats, including imposing tariffs on Canadian goods. And apparently ChatGPT and other AI chatbots (programs? models?) lost their job / position in the marketplace with the release of DeepSeek, a Chinese AI model. This preceded NVIDIA experiencing the biggest market value drop in U.S. stock market history. I am writing this on January 29, so the year is just getting started.

This issue of RHB Magazine features discussions on the year ahead with our RENTT panel, consisting of leaders of rental housing associations across Canada. They provided their 2025 forecasts for the rental housing industry, the key challenges rental housing providers are expected to face, potential strategies for addressing these issues, and a wish list for the next Prime Minister of Canada after Trudeau steps down.

The second article examines new tax laws for 2025 and how they might affect rental property owners, building developers, and tenants on a federal and provincial level. The third article discusses the various benefits of conducting regular unit inspections (i.e., more often than after tenants move out and before new tenants move in).

Don't forget to read CFAA’s newsletter, National Outlook, as well as the Regional Association Voice. FPPO lists the winners of its annual MAC Awards and announces the new director of certification of the CRB Program. Yardi Canada wraps up this issue with a discussion of the impact of artificial intelligence on property management. And check out the digital edition of the magazine, which features content not found in these pages, including news from the Alberta Residential Landlord Association (ARLA).

We enjoy hearing from our readers, and we want to support twoway communication. If you have any comments or questions, send them to david@rentalhousingbusiness.ca. I look forward to your emails.

Publisher Marc Côté

marc@rentalhousingbusiness.ca

Associate Publisher

Nishant Rai nishant@rentalhousingbusiness.ca

Editorial

David Gargaro

david@rentalhousingbusiness.ca

Creative Director / Designer

Scott Clark

Sales Executive

Justin Kreslin

justin@rentalhousingbusiness.ca

Office Manager

Geeta Lokhram

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the issue!

David Gargaro Senior Editor

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RENTT: Rental housing associations look ahead to 2025

Leaders of rental housing associations across Canada provide their forecasts for the rental housing industry.

How will new tax laws affect the rental housing industry?

Some policy changes include tax breaks intended to make it more affordable to build purpose-built rental housing.

There

and

Conducting

RAV features the latest industry news from four member associations.

Final Take Away

The balance of AI and humans in Canadian residential markets

Adopting AI requires a thoughtful, phased approach focused on meaningful benefits.

PRESIDENT’S CORNER

This issue of National Outlook provides details on Canada’s response to President Donald Trump’s tariff announcement and later pause. It also includes an update on the federal government’s deferred implementation of the change to the capital gains inclusion rate and a summary of CMHC’s Housing Market Outlook.

On February 1, 2025, U.S. President Donald Trump announced 25 per cent tariffs on all Canadian imports, with energy resources facing a 10 per cent tariff. He also imposed 25 per cent tariffs on goods imported from Mexico and 10 per cent tariffs on goods imported from China. The tariffs were set to come into force on Tuesday, February 4, 2025.

The U.S. tariff plan was met with outrage across the Canadian political landscape. Prime Minister Justin Trudeau announced that Canada would retaliate in kind by imposing 25 per cent tariffs on $155 billion of U.S. goods imported into Canada, also coming into force on February 4. Many other political leaders voiced their disapproval, with the Premiers of Ontario and New Brunswick adding their own plans to tariff or ban U.S. goods.

On Monday, February 3, both Trump and Trudeau announced a 30-day pause on the tariffs between both countries. Under the agreement to pause the tariffs, Canada will launch a Canada-U.S. Joint Strike Force to combat organized crime, fentanyl, and money laundering, and implement a $1.3 billion border plan to reinforce the Canada-U.S. border with helicopters, technology, and personnel. Should the U.S. decide to impose tariffs after the 30 days have passed, the Canadian economy and rental housing sector will be significantly impacted. See pages 35-37 to read more about the potential tariff fallout.

On January 31, 2025, Dominic LeBlanc, Minister of Finance and Intergovernmental Affairs, announced the federal government is deferring the date on which the capital gains inclusion rate would increase from 50% to 66.67%. The date has been pushed back from June 25, 2024 to January 1, 2026. The federal government

plans to maintain or enhance existing capital gains exemptions, while also creating a new investment vehicle. See pages 37-38 to read more about the changes, should they eventually take effect.

On February 5, 2025, the Canada Mortgage and Housing Corporation (CMHC) released its Housing Market Outlook (HMO), which provides forwardlooking analysis into Canada's national and major housing markets through 2025–2027. Read pages 37-38 for a summary of the report.

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

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

In this issue of... NATIONAL OUTLOOK

35. The threat of U.S. tariffs looms over Canadian businesses and the rental housing industry. How will the federal government react and what will it mean for the economy?

37. The federal government pauses its plan to change the capital gains inclusion rate. Will the next prime minister put a halt to the increased rate?

38. CMHC releases its 2025 Housing Market Outlook. Where is the rental housing industry headed over the next two to three years?

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

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

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

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

Member Associations

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

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

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

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

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

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

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

Vancouver Office P: 604-733-9440

Victoria Office P: 250-382-6324

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

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

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

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

P: 204-957-1224

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

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

CFAA

Largest Primary Rental Markets by Unit Count in Eastern Canada

1 Halifax, NS - 55,519

2 Moncton, NB - 15,129

3 Saint John, NB - 10,298

4 Fredericton, NB - 9,514

5 Charlottetown, PEI - 6,281

6 St. John’s, NL - 4,355

RENTT:

RENTT experts:

Rental look

According to several experts, some 2024 trends will continue into the new year. The Bank of Canada just cut its key interest rate to 3.0 per cent (down 0.25 per cent), following five reductions in the interest rate in 2024. Lower interest rates, softer lending rates, and higher borrowing caps for mortgages should encourage new homebuyers to enter the market. However, some banks anticipate a wave of mortgage defaults, with mortgage renewals coming due when interest rates will be significantly higher than they were five years ago.

David Hutniak, CEO, LandlordBC

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

Cameron Choquette, CEO, SKLA

Kevin Russell, Executive Director, IPOANS

Donna Monkhouse, Executive Director, Alberta Residential Landlord Association (ARLA)

Rental housing associations ahead to 2025

By David Gargaro

Purpose-built rental growth is projected to slow to 3-4 per cent, according to CMHC data. However, rental prices in some Canadian markets are expected to decline. According to Rentals.ca, Canadian rental prices dropped by 3.2 per cent in December 2024 year over year. In addition to lower interest rates, other factors that will affect average rents include declining population levels due to federal immigration caps, an increase in the rental supply from newly completed purpose-built projects, and the oversupply of condos (particularly in Toronto) due to lack of buyer interest.

Technology should continue to play a more significant role in the rental housing industry. There will be greater demand for green homes, sustainable building materials, and energy-efficient appliances. Artificial intelligence (AI) will also become more prevalent throughout the industry. For example, Edmonton will become Canada’s first municipality to use AI for building-permit approvals. The city’s Auto Review program will allow builders to apply online and get sameday approvals for building permits for detached and semi-detached homes.

In this month’s issue, we asked our esteemed RENTT (Rental Executives

National Think Tank) panellists, who are leaders of rental housing associations across Canada, to predict what will happen in 2025 with respect to the rental housing industry. They provided their 2025 forecasts for the rental housing industry, the key challenges rental housing providers are expected to face, potential strategies for addressing these issues, and a wish list for the next Prime Minister of Canada after Trudeau steps down.

RHB: Welcome to RHB Magazine ’s RENTT panel. We appreciate the time and effort involved in participating in today’s discussion and sharing your experience. Our readers will benefit from your input. Today we’d like to look forward to what 2025 has in store for Canada’s housing market.

What is your forecast for the rental housing industry in 2025?

Tony Irwin: There’s positive momentum in Ontario’s rental housing sector as we head into 2025, with new and refurbished units coming online and some important policy changes aimed at increasing supply. Updates to the Ontario Building Code, reduction of red tape, along with lower interest rates and the approval of mass timber buildings up to 18 storeys to decrease the cost of materials, are encouraging steps that could help get more projects off the ground this year. That said, there are still some challenges to work through. Development charges, approval delays, and rising material costs continue to impact how quickly new units can be built. On top of that, with both federal and provincial elections on the horizon, some uncertainty remains around how new leadership might approach housing policy. Still, all parties have committed to making housing a priority, and we’re optimistic that by working together, we can keep building the purpose-built rental supply Ontario needs.

David Hutniak: The current operating environment for rental housing in BC is challenging with expenses outpacing the maximum annual allowable increase permitted by the province. LandlordBC did an analysis for the four-year period 2020 through 2023 and found that expenses increased 37.2 per cent for a sample of 186 buildings representing 7,800 units. During that period, the maximum annual allowable increase permitted by the province averaged 4.85 per cent. The disconnect is rather obvious and not sustainable. The sector is further challenged by increasing demands to retrofit existing stock to reduce GHG emissions with little support from the government to undertake the significant investments that will be necessary to achieve targets. The market is generally experiencing an uptick in vacancy rates, which has resulted in some softening of rents. A key factor has been the federal government’s move to reduce the number of international students and immigration in general. With additional new purpose-built rental supply coming on-stream in 2025, that may put additional downward pressure on rents. Only time will tell.

Cameron Choquette: According to recent CMHC data, Saskatchewan’s rental housing stock grew by 2.6 per cent last year, while vacancy rates remained steady at 2.6 per cent. This reflects a sustained strong demand for rental housing across the province. The primary driver of this demand is population growth, fueled largely by international migration to Saskatchewan. A balanced and healthy vacancy rate typically falls between three and four per cent, providing renters with a range of options in the market. However, despite the increase in rental supply, market conditions have continued to tighten. High demand has driven up average rents, yet Saskatchewan remains one of the most affordable provinces in Canada for renting a home. As we move into 2025, these trends are likely to persist. With ongoing population growth and consistent demand for rental properties, vacancy rates may remain below the optimal range, supporting further upward pressure on rental prices. However, Saskatchewan’s relative affordability compared to other provinces will continue to attract renters, making it an appealing choice for individuals and families seeking housing.

"Development charges, approval delays, and rising material costs continue to impact how quickly new units can be built."

Kevin Russell: It is challenging to provide a definitive forecast for the year ahead, as several potential negative factors could significantly impact the industry. Greater clarity will emerge once the outcomes of the federal election and the effects of U.S. tariffs on Canada’s economy become known. On a micro level, additional complexities arise from uncertainties surrounding property taxes, property assessments, development fees, bylaw regulations, and Residential Tenancy Act regulations. Currently, the industry is not operating in a rental housing provider-friendly environment, further complicating forecasts for 2025.

Donna Monkhouse: I pulled out my crystal ball but I don’t think we really need it in Alberta for now. Alberta is strong and I expect it to only continue with growth. Purpose-built rentals are being developed and there are options for tenants looking to rent. Rental rates are fairly stable right now but with costs still escalating for taxes, utilities, and operating expenses, this may lead to some further increases in the market but, overall, it will remain fairly stable.

Delivered to you by

CMHC releases 2025 Housing Market Outlook

According to CMHC’s 2025 Housing Marketing Outlook, apartment construction is expected to continue the momentum achieved in 2024 through 2025 – 2026. Purpose-built rental construction reached record levels in 2024 due to government support, the growing renter population, and strong rent growth at the time of planning. The projected growth is supported by the number of projects set to start in 2025 and 2026. However, softening rental market conditions may lead to fewer rental projects starting in 2027.

Rental supply has grown faster than new demand since 2024, and yet affordability is still an issue. Lower immigration levels and more first-time homebuyers should reduce rental demand through 2025 to 2027. Supply will increase as new rental units come onto the market, which should mean higher vacancy rates and fewer rent increases. Rental affordability should take longer to improve, as vacated units will adjust to market rents and renters' incomes will grow to match previous market rent increases. At the same time, more affordable rental options will become available as higher-income tenants move to higher-priced new units.

Figure 1: Canada’s new construction slows but maintains historic strength Housing starts by dwelling type

RHB: What do you see as the biggest challenge for rental housing providers in 2025, and what strategies would you recommend to address this challenge?

Tony Irwin: The biggest challenge for rental housing providers in 2025 is undeniably rising costs, placing significant pressure on the sector. In Toronto, the proposed 3.45 per cent property tax increase adds another layer of strain, increasing operating costs for providers in the province’s most populous city. This comes as rent increases remain capped at 2.5 per cent for the third consecutive year, a figure dwarfed by current inflation rates. This widening gap between permitted rental increases and the actual cost of operating rental properties, coupled with higher interest rates, development charges, and material costs, makes building and maintaining a balanced rental market increasingly difficult. Addressing these challenges requires a collaborative effort between industry leaders and policymakers. A key priority is a more balanced approach to property taxation that doesn’t disproportionately burden rental housing. Further solutions include streamlining approval processes, modernizing development charges, and expanding financial incentives for purpose-built rental projects. These measures can help offset rising costs and stimulate new development. Ultimately, Ontario needs policies that support the creation of affordable rental units while ensuring the financial sustainability of housing providers.

Cameron Choquette: In 2025, rental housing providers in Saskatchewan may face various challenges, including navigating uncertain economic conditions, political unpredictability, rising costs, and potential vacancy risks. Despite robust rental apartment construction in the province’s largest markets, increased expenses for goods, services, labour, materials, taxes, and insurance are putting pressure on margins. Additionally, with unemployment rates exceeding six per cent in major centres like Regina, concerns about tenant stability and the risk of population outmigration remain top of mind. To address these challenges, rental housing providers will have to prioritize strategies that enhance operational resilience and tenant satisfaction. Building strong relationships with residents and focusing on retention can help reduce turnover, ensuring stable occupancy rates even during uncertain times. Providers can also explore operational efficiencies by streamlining internal processes, undertaking cost-effective renovations, and investing in energy-efficient upgrades to reduce utility expenses over the long term. Proactively

engaging with tenants, offering flexible solutions, and demonstrating value in a competitive rental market will be critical for mitigating risks and maintaining a steady demand for rental units in the face of economic and demographic uncertainties.

David Hutniak: The cost to deliver safe and healthy long-term rental housing will be the biggest challenge in 2025, exacerbated by the continuing risk of government intervention in one form or another from all levels of government. The most obvious strategy for owners and managers is aggressive cost management and that includes the highly undesirable option of taking a hard look at potentially deferring capital expenditures.

"Collaborating with industry associations to advocate for balanced policies and engaging with policymakers to streamline approvals and reduce taxes can create a more supportive environment."

Kevin Russell: The biggest challenge for Nova Scotia rental housing providers in 2025 will likely stem from a combination of rising operational costs, increasing regulatory pressures, economic uncertainty affecting tenant affordability, and shifting population dynamics. Key factors include escalating expenses such as property taxes, insurance premiums, and maintenance costs. Regulatory complexity, including rent controls and residential tenancy rules, adds operational burdens. Economic instability, inflation, and interest rate fluctuations may lead to higher tenant turnover and rent arrears. Labour shortages also complicate staffing, while a reduction in immigration and outward migration of skilled workers impacts tenant demand. Ultimately, the rental housing industry will need to navigate 2025 with a proactive and adaptive approach, balancing operational sustainability with the challenges of an evolving market and regulatory environment. Enhancing operational efficiency through property management software and regular audits can help reduce costs. Collaborating with industry associations to advocate for balanced policies and engaging with policymakers to streamline approvals and reduce taxes can create a more supportive environment. Building strong tenant relationships, offering flexible payment plans, and diversifying revenue streams, such as short-term rentals, can mitigate financial pressures. Investing in sustainability with energy-efficient upgrades and government incentives can reduce long-

term costs. Addressing immigration challenges and advocating for policies that attract and retain skilled workers will help stabilize demand. Proactive risk management, such as building financial reserves and staying informed on market trends, will also be crucial for long-term success.

Donna Monkhouse: Despite the increase in housing supply, Alberta still has a housing shortage and, with the further in-migration to Alberta, this will lead to further demand for rental housing. The question then is will we ever catch up. I am not sure but believe there will continue to be a balance between supply and demand that we will meet. Housing providers will continue to face fluctuations in the economy and possible political shifts that could impact the rental market. There has been some talk about further regulations for housing, but we are ready to advocate for changes that would impact our housing providers. Overall, I have only a positive outlook about where Alberta is going with respect to rental housing.

RHB: Now that Trudeau will be stepping down, what is your wish list for whomever comes in office next?

Tony Irwin: As political leadership changes at the federal level, our priority remains ensuring that purpose-built rental housing stays at the forefront of the national housing agenda. Regardless of who takes office, FRPO is committed to working collaboratively with all levels of government to advance policies that increase rental supply, reduce regulatory barriers, and address the affordability crisis in Ontario. Our wish is for a renewed emphasis on purpose-built rental housing as the key to bringing stability back to the housing market. Policy stability that streamlines development processes and financial incentives that spur the construction of purpose-built rental housing are tools that any new leader or government should use. These efforts are essential to creating a more balanced market, supporting economic growth, and ensuring Ontarians and Canadians have access to safe, professionally managed rental homes.

David Hutniak: We hope that the increased capital gains measure will be eliminated retroactively. While we were encouraged by the degree to which the Liberals were investing in housing, we would like to see market rental getting more support in the form of access to lower cost financing, without endless strings attached, for new purpose-built rental construction, and robust incentives and supports for energy retrofits to the existing stock. There’s more but if we saw action

on these areas that would be a positive.

Kevin Russell: The next government must prioritize practical and impactful initiatives to address pressing challenges. Key focus areas should include lowering staffing levels and streamlining government operations to enhance efficiency, promoting development-friendly housing policies to address supply shortages, implementing tax policies that increase workers’ take-home pay, and focusing on skilled immigration to address labour shortages in key sectors, ensuring a steady flow of talent to meet workforce demands. By addressing these priorities, the next government can foster economic growth, improve housing affordability, and strengthen the country’s position in an increasingly competitive global landscape.

Cameron Choquette: With Prime Minister Trudeau stepping down, RHSK remains committed to advocating for the removal of barriers to building purpose-built rentals in our province and across Canada. While we are disappointed that the proposed increase in the capital gains inclusion rate remains under consideration despite lacking parliamentary approval, we see this transition as an opportunity for meaningful change. We hope the next Prime Minister prioritizes addressing the housing crisis through collaborative efforts between federal, provincial, and municipal governments. This includes introducing incentives for rental housing development and streamlining permitting processes to accelerate construction timelines. RHSK also urges a reconsideration of the draft legislation on capital gains tax increases, recognizing the significant financial pressures already faced by rental housing providers. Furthermore, we advocate for a balanced review of policies such as the carbon tax, which imposes additional costs on businesses. Achieving climate goals is vital, but it must be done in a way that does not disproportionately burden the housing sector. Ultimately, we wish for a leader focused on housing affordability, economic stability, and a balanced approach to policy-making that supports the rental housing industry while addressing broader national priorities.

Donna Monkhouse: With respect to Trudeau leaving, I am not sure if his renters’ rights will even be an issue in the future, but we will continue to monitor this. I only hope that the next leader of Canada initiates quick solutions to our housing shortages and economy and they work with Alberta to keep it strong.

RHB: Thank you for your input.

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How will new tax laws affect the rental housing industry?

By David Gargaro

Over the last few years, the federal and provincial governments have introduced various policy measures to help spur new property development to increase the housing supply. Some of these policy changes include tax breaks aimed at making it more affordable to build more purpose-built rentals. How have these tax laws affected the rental housing industry, and what new laws are expected in 2025 and beyond?

Looking back to 2023

In September 2023, the federal government significantly changed its tax policy to help boost rental housing development. They removed the federal Goods and Services Tax (GST) / Harmonized Sales Tax (HST) from the cost of new purpose-built rental construction. The Ontario, Nova Scotia, and Newfoundland & Labrador provincial governments followed suit by removing the provincial portion of the HST. British Columbia also removed the provincial sales tax (PST) from some construction costs for purpose-built rentals, while New Brunswick recently joined the other provinces in removing the provincial portion of the HST from new construction costs.

At the time, these policy changes were seen as a positive move in helping to promote more purpose-built rental development. According to data from Urban Toronto, the proportion of new rental unit construction starts in the Greater Toronto and Hamilton Area (GTHA) increased from 16 per cent in the second quarter of 2023 to 27 per cent in the third quarter (i.e., when the federal government announced the GST cut). Purposebuilt construction also reached record levels in Canada’s six census metropolitan areas (CMAs), accounting for 42 per cent of all apartment construction in 2023.

However, it appears the results might have been short-lived, at least in some markets. Rental construction starts in Toronto accounted for 51 per cent of all new housing starts after the announcement (more than triple the number of starts in the previous quarter). Even though

Ontario announced the PST cut in the following quarter, rental construction starts across the GTHA dropped to pre-tax-break levels by the end of 2024. Under this new tax regime, looking at the GTHA, the total number of units that began construction declined and developers proposed fewer rental units when compared to all housing units proposed.

When you look at Canada as a whole, rental starts are up in 2024. According to CMHC, multifamily rental projects increased Canada’s total housing starts by two per cent in 2024. In fact, purposebuilt rentals made up 47 per cent of all housing starts in Canada’s six largest CMAs, thanks mostly to Edmonton, Calgary, and Montreal. It’s difficult to say whether cutting GST from the cost of new rental construction made an impact on developers’ decision-making.

Although cutting the GST and PST helped to address some of the costs of developing purposebuilt rental housing, it does not seem to have had a lasting or incrementally positive impact on the industry. The tax cuts could not overcome other cost factors, such as the effect of inflation on the costs of construction materials and increases in local development charges. Other key factors impacting rental supply included interest rates and immigration policy. Some rental properties (e.g., triplexes) do not meet the criteria to receive the tax rebate, and developers may unintentionally disqualify themselves from receiving enhanced tax relief.

When a non-Canadian resident sells property in Canada, the person who buys the property must withhold 25 per cent (or 50 per cent if it is depreciable property) of the gross selling price to cover potential tax liabilities.

“The purpose-built rental housing rebate may not cover all of the GST/HST a developer incurs on construction costs,” said Bruce Goudy, Director, Indirect Tax, BDO Canada. “There is no rebate of GST/HST incurred on any costs to complete construction after residential tenants move into a substantially completed building. For example, this may include costs related to finish the upper floors of a substantially completed multi-unit building and perhaps landscaping after the occupancy date.”

New and updated tax laws for 2025

Federal – Capital gains inclusion rate

In Budget 2024, the federal Liberal government announced changes in the income tax treatment of capital gains. The main change was to increase the capital gains inclusion rate from 50 per cent to 66.67 per cent for capital gains realized annually above $250,000 by individuals, and for all capital gains realized by corporations and most types of trusts. The capital gains inclusion rate represents the portion of capital gains that is brought into income and thus subject to income tax.

This change was to take effect on June 25, 2024. However, many business organizations and others opposed the increase in the capital gains tax. This change was kept separate from main Budget measures and has yet to be enacted. On January 31, 2025, Dominic LeBlanc, Minister of Finance and Intergovernmental Affairs, announced a deferral of the change to the capital gains inclusion rate until January 1, 2026, which will occur after the next federal election.

“The two main contenders to become the next Liberal leader have said they will not proceed with the increase in the capital gains tax,” said John Dickie, Partner, Dickie and Lyman Lawyers LLP and Chair, Eastern Ontario Landlord Organization (EOLO). “On February 5, Mark Carney said he will scrap the proposed increase to Canada’s capital gains tax. Shortly after announcing her bid to lead the Liberal Party, former Finance Minister Chrystia Freeland said she wouldn’t go forward with the tax

changes. Conservative Leader Pierre Poilievre has also rejected the tax change.”

As a result of these statements, almost all commentators expect the capital gains increase will not take place on the indicated future date. This is a relief to rental investors, who rely heavily on capital gains to make their overall returns on investment.

Federal – Withholding tax

When a non-Canadian resident sells property in Canada, the person who buys the property must withhold 25 per cent (or 50 per cent if it is depreciable property) of the gross selling price to cover potential tax liabilities. The rate is intended to approximate the combined federal and provincial tax payable on capital gains at the highest marginal tax rates. The amount is held in trust until the CRA provides a Certificate of Compliance.

Federal – Capital cost allowance

rate (2024)

The capital cost allowance (CCA) rate for eligible purpose-built rental projects has increased from four per cent to 10 per cent. The CCA rate applies to projects that begin construction between April 16, 2024, and January 1, 2031. Developers can gain access to more cash flow through higher upfront tax deductions, which should improve after-tax returns on purpose-built rental housing developments. Although the total CCA that can be claimed over a building's lifespan does not change, the accelerated rate enables developers to depreciate the assets more quickly, which results in deferring tax obligations. Projects must meet specific criteria to qualify (e.g., at least four private apartment units or 10 private rooms or suites), and 90 per cent of the units must be used for long-term rentals. The goal is to stimulate rental property construction, increase housing supply, and lower rental prices over the long term, as well as encourage developers to explore other types of housing markets (e.g., student housing, senior living facilities).

Federal – Carbon tax

On April 1, 2025, the federal carbon tax will be increasing from $80 per tonne to $95 per tonne. This affects fuel charge rates, including natural gas and fuel oil. As a result, heating costs will increase for rental property owners and tenants. For example, the cost of natural gas will increase by 15.25 cents per cubic metre.

British Columbia – Property transfer tax

Companies or individuals who purchase residential, commercial or industrial real estate in BC must pay a provincial property transfer tax (PTT). In general, the amount of the PTT is one per cent on the first $200,000 of the property’s fair market value (FMV), two per cent on the amount between $200,000 and $2 million, three per cent on the amount between $2 million and $3 million, and five per cent of the remaining FMV.

Effective January 1, 2025, BC created a new exemption from its PTT for purchases of new secured purpose-built-rental buildings valid until December 30, 2030. The qualifications are as follows:

• All residential uses of the building must be used exclusively for rental purposes

• The building is required to contain at least four non-stratified apartment units

• It must be used as rentals for at least 10 years “The new exemption will clearly assist in drawing out more rental housing development,” said Dickie. “Many rental developments are built by ‘merchant builders’ who are expert at the development of new rental buildings and at leasing them up but then want to sell the properties and move on to the next development project. Eliminating the property transfer tax will result in the supply and demand for rental buildings meeting at a higher development level, producing more rental unit for would-be renters

to rent. That should have a moderating effect on rents, without reducing the returns to developers, or those who invest in rental property for the long term.”

British Columbia – Home-flipping tax

The government has introduced a new 20 per cent home-flipping tax, which is imposed under the Residential Property (Short-Term Holding) Profit Tax Act. The tax applies to the profit realized from properties sold in British Columbia that were owned for less than 730 days. BC’s home-flipping tax is separate and distinct from the federal property flipping tax. This could affect the overall real estate market and might increase the supply of long-term rental properties.

British Columbia – Tax credit for renters

BC residents are eligible for a tax credit that can be applied to housing costs. Renters who have adjusted incomes of up to $63,000 can claim up to $400 per year off their taxes, with partial credits available for incomes up to $83,000. This tax credit provides renters with direct financial relief, which will help them to pay their rent.

Conclusion

Canada’s tax policies have had a mixed impact on the rental housing industry. Removing the GST, HST, and PST from the cost of new construction did provide some initial relief, but inflation and other factors seem to have reduced their longterm effectiveness. Upcoming changes to capital gains taxes could provide more financial stress for rental property owners and investors. The federal and provincial governments seem to be trying to address the housing shortage by introducing new tax incentives for purpose-built rentals and providing renters with financial relief. However, it will likely take more comprehensive and collaborative measures to fully address the challenges of building more rental housing stock.

Conducting regular unit inspections

boosts

profitability, safety, and compliance

Conducting regular unit inspections boosts profitability, safety, and compliance

By David Gargaro

Regular unit inspections are essential to maintaining rental properties. They help to reduce expenses, increase revenues, improve tenants’ health and safety, and ensure compliance with legislative and insurance requirements.

Every province regulates how often you can conduct unit inspections. Rental property owners typically conduct unit inspections after tenants move out and before new tenants move in. However, inspecting units every few months (and seasonally) is reasonable and non-invasive. Follow provincial regulations when providing written notice prior to conducting a unit inspection.

Findings from unit inspections

Jim Garnett, President of Canadian Tenant Inspection Services Ltd., listed the most common issues identified during periodic rental unit inspections of units:

• Extra appliances causing higher utility costs

• Leaking faucets and pipes, water damage, and mold

• Electrical hazards, such as exposed wiring and overloaded power outlets

• Lack of rental insurance

• Pest infestations due to tenants’ failure to report them

• Fire safety violations, such as disabled smoke and carbon monoxide detectors

• Lease violations due to illegal subletting or unauthorized occupants/pets

• Hoarding and other mental health issues

• Unauthorized unit or room modifications and damage

• Illegal activities (e.g., drug trafficking, fraud, human trafficking, short-term rentals)

Conducting periodic unit inspections enables rental property owners to take immediate action to realize cost savings. Early remediation prevents further property damage and ensures compliance with local regulations.

“The most impressive feature for us is that typically we knew the status of condition of our common areas, or approximately 15 per cent of our building, without having a sense of condition of the remaining rentable 85 per cent of our properties,” said Mike Garisto, President, Columbus Charities Association. “While there are

initial startup costs of upgrading several identified deficiencies, it has streamlined maintenance to newer needs only and also made us aware of deficiencies that could be considered future problems in other suites.”

Benefits of regular unit inspections

Lower costs and higher revenues

Conduct detailed inspections to highlight potential issues and enable early intervention. A proactive approach prevents expensive repairs. It also helps with identifying potential breaches of tenancy agreements, which could prevent costly legal disputes.

Regular unit inspections can help to reduce expenses, including:

• Water bills (e.g., remediating leaky taps and pipes)

• Utility bills (e.g., removing unauthorized appliances)

• Building maintenance and repair bills (e.g., repairing leaky roofs and windows)

• New equipment purchases (e.g., performing maintenance to extend equipment lifespan)

Conducting regular unit inspections can increase revenues. Well-maintained properties increase in value over time and enable you to charge higher rental rates. Happy tenants lead to lower vacancy rates and stable income streams. Optimizing maintenance scheduling reduces overall maintenance costs. Identifying breaches in the rental agreement (when not corrected by the tenant) enables you to pursue an eviction and restore rental value.

“These inspections have helped to reduce the number of complaints from residents,” said Brent Marcotte, Superintendent of Properties, Columbus Charities Association. “If the noted deficiencies are corrected on an expedited basis, the subsequent inspections generally identify fewer issues. The reduction in noted deficiencies directly corresponds to a reduction in the number of complaints or issues received from residents.”

Compliance with insurance policy

Some insurance companies require rental property owners to conduct regular inspections to satisfy the terms of insurance policies. The frequency of inspections can vary according to building type, amount of insurance coverage, and the insurer’s specific requirements. For example, BC’s Tenancy Act allows monthly unit inspections, while an insurance provider might require inspections every three months.

“As insurers tighten their underwriting guidelines and capacity requirements, they are starting to place more emphasis on the overall condition of units, the schedule of inspections, and maintenance programs,” said James Malcolm, Vice President, Westland Express. “A formal inspection requirement could make insurers more likely to treat the risk more favourably.”

Follow your insurance policy’s due diligence requirements. Failure to conduct the minimum number of annual unit inspections can lead to

non-renewal of the policy, higher rates, and reduced coverage or denial of claims.

“Insurance companies are increasingly requiring landlords and property management companies to conduct unit inspections at least once or twice a year,” said Malcolm. “Insurers are also suggesting these parties maintain detailed logs of these inspections.”

Reduced liability and greater tenant safety

Rental property owners are legally required to provide a safe living environment. Regular unit inspections help with detecting maintenance issues before they escalate or become safety risks. Being proactive prevents accidents and creates a safer living environment.

Documenting inspections enables you to record a unit’s condition over time. This protects against disputes regarding unit damage or safety deposits. Documentation also supports insurance claims and serves as evidence during legal proceedings.

Human trafficking, prostitution, drug running, and other illegal activities have become more prevalent in rental properties. Conducting regular inspections helps to prevent these activities, as well as identifying crimes when they happen. Being proactive supports tenant safety and prevents criminal activities from occurring.

to the Winners of the 2024 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 2025.

Social Media Award of Excellence

Fitzrovia Elm-Ledbury

Best Suite Renovation Over $40,000

QuadReal Property Group 15 & 245 Lena Cres., Cambridge

Best Lobby Renovation of the Year

Maddox by Fitzrovia Maddox Sherbourne, Toronto

Best Advertising Campaign

The Daniels Corporation & Choice Properties Change the way u. rent

Best Suite Renovation Under $40,000

Widdicombe Pl., Etobicoke (Seasons Colours)

Best Property Management Website

DBS Developments www.belasquare.ca

City Lights & Country Nights

BlueStone

We Are Legends

Threat of tariffs looms over Canadian businesses and rental housing industry

By Tony Irwin, Interim President, CFAA

On February 1, 2025, U.S. President Donald Trump signed an executive order, announcing 25 per cent tariffs on all Canadian imports; energy resources would face a 10 per cent tariff. He also imposed 25 per cent tariffs on goods imported from Mexico and 10 per cent tariffs on goods imported from China. The tariffs were set to come into force on February 4, 2025.

Prime Minister Justin Trudeau announced that Canada would retaliate in kind by imposing 25 per cent tariffs on $155 billion of U.S. goods imported into Canada. Initial tariffs on $30 billion of U.S. goods were to take effect on February 4, with duties on the remaining $125 billion to take place in 21 days.

On February 3, both Trump and Trudeau announced a 30-day pause on the tariffs between both countries. Under the agreement to pause the tariffs, Canada will do the following:

• Launch a Canada-U.S. Joint Strike Force to combat organized crime, fentanyl, and money laundering; this includes appointing a “fentanyl czar” and listing cartels as terrorists

• Implement a $1.3 billion border plan to reinforce the Canada-U.S. border with helicopters, technology, and personnel

However, on February 10, Trump signed two executive orders imposing 25 per cent tariffs on all steel and aluminum imports, including from Canada. These tariffs are set to take effect on March 12, and will stack on top of other tariffs should they be imposed.

Pierre Poilievre (federal Conservative leader) welcomed the one-month pause on U.S. tariffs. He also urged the government to take immediate action to strengthen Canada’s economy and prevent future tariffs. He called on the federal government to recall Parliament to pass a Canada First Plan, which would include:

• Retaliating with dollar-for-dollar tariffs to maximize impact on American companies while minimizing impact on Canadian consumers

• Putting tariff revenues toward helping affected workers and businesses

• Passing an emergency Bring It Home Tax Cut to bolster the economy, stop inflation, and save and create jobs

• Cancel C-69, the anti-resource law, and greenlight LNG plans, pipelines, mines, factories, and port expansions to overseas markets

• Remove interprovincial barriers to bolster free trade

• Rebuild the military to increase border security

NATIONAL OUTLOOK

Other Canadian political leaders have responded to the tariff situation as follows:

• Jagmeet Singh (federal NDP leader) agreed this was a positive development for Canadians. He also stated the government should prioritize Canadian-made goods and build a selfsufficient economy to reduce reliance on their allies.

• Mark Carney (candidate for federal Liberal Party leadership) said, “The tariffs imposed by the United States today are a clear violation of our trade agreements and require the most serious trade and economic responses in our history.”

• Danielle Smith (Alberta premier) was encouraged by the appointment of a “fentanyl czar” and called for the federal government to continue negotiations with the U.S. She said she would visit Washington in the coming weeks as part of the Council of Federation delegation and for the Republican Governors conference.

• Doug Ford (Ontario premier) stated Canada and the U.S. should unite against China, which is the “real trade challenge,” instead of fighting each other. He also agreed to pause Ontario’s retaliatory measures (e.g., removing American alcohol from the LCBO), as well as continue the $100 million contract with Starlink (which he had “cancelled” because of the tariffs).

• Susan Holt (New Brunswick premier) also agreed to not remove American products from Alcool NB Liquor (ANBL) shelves; however, they would not purchase new U.S. products until the tariffs issue was resolved. She also said she would be part of the Council of Federation’s Washington delegation.

The entire timeline of events has puzzled many people on both sides of the border. President Trump stated he will pause the tariffs because Trudeau agreed to increase border security. However, the Liberal government had already committed to the $1.3 billion border plan, which was previously announced in the 2024 Fall Economic Statement and agreed to under President Biden. Nothing new was added to the agreement. Some experts believe President Trump stepped back from imposing the tariffs due to the immediacy of the Canadian federal government’s retaliatory response, as well as the criticism from Republican states’ stakeholders who rely on Canadian exports.

The tariffs threat could have lasting impacts on the Canadian economy, including increasing support for lowering interprovincial trade barriers, expanding trade relations with other allies, and weakening the trade relationship with the United States. Tariffs would negatively impact Canadian consumers and many Canadian businesses. They would also affect the rental housing industry in numerous ways:

• Higher prices for lumber, steel, and other building materials would increase the cost of developing rental properties

• Higher construction costs could also force developers to postpone new construction projects, negatively impacting housing supply

• Economic uncertainty might make investors less certain about the rental real estate market, reducing the availability of capital for new purpose-built rental developments

• Developers would pass the costs onto tenants, which would mean higher average rents

• Higher home costs would push more people into the rental market, which would increase demand and rents

Government of Canada announces deferral in implementation of change to capital gains inclusion rate

On January 31, 2025, Dominic LeBlanc, Minister of Finance and Intergovernmental Affairs, announced the federal government is deferring the date on which the capital gains inclusion rate would increase from 50% to 66.67% on capital gains realized annually above $250,000 by individuals and capital gains realized by corporations and most types of trusts. The capital gains inclusion rate refers to the taxable portion of capital gains. The date has been pushed back from June 25, 2024 to January 1, 2026.

The federal government plans to maintain or enhance existing capital gains exemptions, while also creating a new investment vehicle. The maintained and newly created capital gains exemptions include:

JAN/FEB 2025

• Maintaining the principal residence exemption, which ensures homeowners do not pay capital gains taxes when selling their home

• Setting a new $250,000 annual threshold for Canadians, which ensures individuals who sell a secondary property remain eligible for the annual threshold and do not pay more tax

• Increasing the lifetime capital gains exemption (LCGE) from $1,016,836 to $1.25 million (as of June 25, 2024) on the sale of small business shares and farming and fishing property; Canadians with eligible capital gains below $2.25 million would pay less tax

• Creating a new Canadian Entrepreneurs’ Incentive by reducing the inclusion rate to one-third on a lifetime maximum of $2 million in eligible capital gains; this incentive would take effect in the 2025 tax year and would increase by $400,000 each year, reaching $2 million in 2029

It should be noted both Chrystia Freeland and Marc Carney (who are running to take over the leadership of the federal Liberal Party) have announced they plan to scrap the proposed increase in the capital gains tax if they are chosen to lead the Liberal Party. Liberal members will vote on March 9 to elect a new leader to replace Prime Minister Justin Trudeau. Freeland introduced the increase in the taxable amount of capital gains when she was Finance minister. Federal Conservative leader Pierre Poilievre has repeatedly stated he will “axe the tax” should his party win the next federal election.

CMHC releases 2025 Housing Market Outlook

On February 5, 2025, the Canada Mortgage and Housing Corporation (CMHC) released its Housing Market Outlook (HMO), which provides forward-looking analysis into Canada’s national and major housing markets through 2025–2027. To follow is a summary of the highlights with respect to the rental housing industry.

Affordability improvements release pent-up housing demand

• Housing market activity in Canada is expected to improve, due in part to lower mortgage rates and changes to mortgage rules

• Homebuyers previously priced out of the market may face longer loan terms, higher interest costs, and larger down payments

• Resale homes should be in greater demand from financially constrained homebuyers

• The length of new construction projects may limit developers’ ability to meet demand

• Millennials, who are driving housing demand, will prioritize being closer to jobs due to the decline of remote work, which will boost sales in larger urban markets

• Some repeat homebuyers looking to upgrade and take advantage of lower mortgage rates, as well as those facing mortgage renewals, will return to the market

• The condominium apartment market will lag in regions that depend on investor activity

• Prices will grow faster in 2025 due to demand for ground-oriented homes, before slowing down in 2026–2027

• Improved job markets and income growth will make housing more attainable in 2027

More affordable regions will lead price and sales recovery

• Because the housing markets in Ontario and BC are relatively unaffordable, as well as lower immigration targets, home sales should remain below their 10-year averages; prices are expected to grow more slowly in the first half of the forecast period

• Sales in Alberta and Quebec are expected to reach historic highs, with prices growing faster than national averages during the first half of the forecast period

Housing starts set to slow down

• Housing starts will slow down over the forecast period, primarily due to fewer condominium apartment starts

• Developers will have difficulty selling enough units to fund new projects, which means less new condominium apartment construction

• In Ontario and BC, pre-construction condominium apartments will see less demand due to weaker resale and rental markets, which will slow construction in 2025

NATIONAL OUTLOOK

• There will be less impact on Alberta’s new construction levels, as most buyers are residents rather than investors

• Rental apartment construction reached record levels in 2024 due to government support, a growing renter population, and strong rent growth; this momentum should continue through 2025–2026, but may lead to fewer rental projects in 2027

Bank of Canada lowers policy rate by 25 basis points

On January 29, the Bank of Canada reduced its target for the overnight rate to 3%, with the bank rate at 3.25% and the deposit rate at 2.95%. This marks the continuation of a series of rate cuts that began in June 2024. The Bank of Canada is expected to continue easing monetary policy through 2025, with some analysts predicting the interest rate to fall to 2% by the end of 2025. The Bank expects the Canadian economy to grow at around 1.5% for 2025, which is below initial projections for the third straight year. Canada’s labour market remains soft, with the unemployment rate at 6.7% in December 2024. Population growth is projected to decrease by 0.2% in 2025, primarily due to immigration caps. Wage growth remains high relative to productivity growth.

GDP growth is expected to strengthen going forward due to lower interest rates. The Bank of Canada projects GDP growth of 1.8% on average. CPI inflation has moderated, with inflation expected to be between 2.1% and 2.4% in 2025. Housing costs will continue to fuel inflation.

Housing starts up 2%

According to CMHC, 2024 housing starts were up 2% year over year in cities with 10,000 or more people (227,697 units compared to 223,513 units in 2023). Combined with approximately 17,423 actual rural housing starts, there were 245,120 new housing units across Canada, also up 2% compared to 2023. This increase is primarily due to historically high rental construction levels and increased starts in Alberta, Québec, and the Atlantic provinces. Canada’s six largest Census Metropolitan Areas (CMAs) had a 3% year-over-year decrease from 2023. Vancouver, Toronto, and Ottawa had a decline in multi-unit starts fell due to weak pre-construction condominium sales.

Ontario going to the polls

On January 24, 2025, Premier Doug Ford announced a call for a snap election, which is set to take place on February 27. He is seeking a third consecutive term. Key election issues include inflation, housing affordability, healthcare, education, and trade relations with the United States. The originally scheduled date for the next election was June 2026. Premier Ford cited the need for a strong mandate to address economic challenges in the face of the U.S. tariffs. All four party leaders have made various pronouncements regarding their platforms should they win the election. To follow is a summary of some housing-related promises in their platforms.

Progressive Conservatives

• Previously promised to build 1.5 million new homes by 2031

• Previously passed legislation to give municipalities powers to address stalled developments and prioritize ready-to-go projects

• Set aside billions for housing infrastructure to prepare undeveloped land

New Democratic Party (NDP)

• Create 60,000 supportive housing units

• Establish a public sector builder to boost the number of new homes

• Upload the cost of shelters to the provincial government

• Legalize fourplexes on land zoned as residential across the province

JAN/FEB 2025

Liberal Party

• Double the rate of the Ontario Disability Support Program (ODSP) and peg increases to inflation

• Implement an empty homes tax of 5% for non-Canadian owners and 2% for Canadian owners with vacant residential units in urban areas

• Ban new non-resident ownership in Ontario’s housing market for at least four years

• Impose a ‘use it or lose it’ levy on speculators with serviced land and building permits

• Legalize fourplexes on residential land province-wide Green Party

• Legalize fourplexes on land zoned as residential across the province

• Provide new provincial funds to make municipalities whole for any lost revenues from changes to development charges

Federal government unlocks new properties for Canada Public Land Bank

On January 30, 2025, Jean-Yves Duclos, Minister of Public Services and Procurement, announced that six new properties have been added to the Canada Public Land Bank. These properties have the potential to create approximately 1,770 housing units. When possible, the government will turn these properties into housing through a long-term lease to support affordable housing and keep public lands within their domain. The six new properties added to the Canada Public Land Bank include:

• Dartmouth, Nova Scotia – Shannon Park – 15 Iroquois Drive, Site 2

• New Glasgow, Nova Scotia – New Glasgow Armoury

• Lévis, Quebec – 3595 Guillaume-Couture Boulevard, Jean-Charles Chapais Farm

• Ottawa, Ontario – 1745 Alta Vista Drive, Central Heating Plant

• Kingston, Ontario – 560 King Street West, Kingston Penitentiary

• Yellowknife, Northwest Territories – 5005 44 Street

Ninety federal properties across nine provinces and two territories have been identified as being suitable to support housing.

Federal government invests in Ontario homes

On January 26, 2025, Nathaniel Erskine-Smith, Minister of Housing, Infrastructure and Communities, announced more than $2.1 billion in contributions and low-cost repayable loans to build and repair 22,417 homes through 234 housing projects across Ontario. These projects are supported through National Housing Strategy (NHS) initiatives, with the goal of addressing housing needs for various communities.

The funding includes:

• $305,726,435 in loans and $129,556,363 in contribution through the Affordable Housing Fund (AHF) to create 2,319 new units and repair 1,047 units across 38 projects

• $118,750 in loans and $96,277,828 in contribution through the Affordable Housing Innovation Fund (AHIF) to create 3,671 new units across seven projects

• $1,444,846,000 in loans through the Apartment Construction Loan Program (ACLP) to create 3,306 new rental units across 15 projects, with affordability conditions

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!

NATIONAL OUTLOOK

• $7,890,445 in loans and $38,790,919 in contribution through the Canada Greener Affordable Housing (CGAH) to repair 10,615 units across 161 projects

• $85,813,344 in contribution through the Rapid Housing Initiative (RHI) to create 246 new units and repair 45 units through 11 projects

• $9,949,984 in contribution through the Federal Lands Initiative (FLI) to create 1,168 new units across two projects

CFAA Rental Housing Conference 2025 in Toronto

The CFAA Rental Housing Conference is scheduled for May 13 to 15 at the Sheraton Vancouver Wall Centre in Vancouver. Register at www.cfaa-rhc.ca and book a hotel room now before they run out.

Join senior leaders and decision-makers from across Canada at the must-attend event for the rental housing industry. The 2025 CFAA Rental Housing Conference in Vancouver is your opportunity to connect, collaborate, and shape the future of rental housing under this year’s theme: Partnering for Progress.

As the industry evolves, success depends on innovation, resilience, and strategic partnerships. This conference brings together the best minds in rental housing to share insights, tackle challenges, and drive meaningful change. Join the conversation in Vancouver:

• Gain strategic insights from industry experts

• Build connections that drive success

• Discover solutions that future-proof your business

New for 2025: Exclusive offer available to CFAA Direct Members! Stay tuned—session topics and speakers will be announced soon.

Introducing our fully integrated tenant insurance solution

Our API enables us to integrate with property managers’ internal systems and third-party services like Yardi and HappyCo.

Save administrative time

Real-time policy visibility

Automated reminders

Contact us to learn more about the benefits of the API integration.

1-866-856-9876 • westlandexpress.ca

President’s message

With 2025 well under way, I’d like to remind our readers the Federation of Rental-housing Providers of Ontario (FRPO) remains focused on promoting purpose-built rental housing as the key to bringing stability back to the Ontario housing market. Our team continues to communicate and work with industry partners and the government on addressing our members’ challenges in their mission to provide Ontarians with safe and professionally managed purpose-built rental housing.

The purpose-built rental market continues to grapple with many hurdles, including the supply shortage, rising development costs, and changing regulatory environments. These challenges are formidable, but not insurmountable. They provide opportunities for innovation, collaboration, and long-term solutions that can expand purpose-built housing availability for Ontario residents.

We will remain vigilant of the need to navigate provincial and federal political uncertainties, with elections coming that will shape the 2025 policy landscape. FRPO will constructively engage with all levels of government to promote policies that support more purpose-built rental supply and address the shortage of housing

This year FRPO celebrates its 40th anniversary, which is an incredible milestone, as it underscores years of advocacy and leadership in the rental housing sector. As we reflect on the progress made over the past 40 years, we look forward to what the next 40 years will bring, with our members providing the passion and expertise to drive growth.

We are thrilled to highlight the success of the MAC Awards, which set a new standard for excellence within our industry. For those who missed the gala, the evening celebrated our members’ remarkable achievements and their commitment to fostering healthy and sustainable communities.

As we build on the momentum of our engagement with government and initiatives, including the Let’s Build Ontario campaign and Certified Rental Building Program, we are confident in our ability to drive meaningful change in 2025. This work has helped to shape the narrative around purpose-built rental housing and advancing our members’ goals while setting high standards for quality and sustainability.

Looking ahead, we will continue collaborating with our members to advance shared goals and embrace the opportunities to come. Together, we can ensure Ontario’s rental housing market remains resilient, innovative, and prepared for the future.

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

2024 FRPO MAC Awards

The 2024 MAC Awards Gala was held on Thursday, December 5, at the Metro Toronto Convention Centre. For over 24 years, the Marketing, Achievement, and Construction Awards have celebrated excellence, innovation, and leadership in Ontario’s rental housing sector. These prestigious awards highlight the remarkable efforts of industry professionals and the dedication of our members to providing highquality rental accommodations.

Our President and CEO, Tony Irwin, was proud to host this year’s ceremony. Jason Ashdown, Chair of the Board, also shared a message acknowledging the invaluable support of FRPO’s annual corporate partners.

The highlight of the MAC Awards was the announcement of the Lifetime Achievement Award to Margaret Siller Herd. This award recognizes her exceptional contributions to the rental housing industry over her career. Margaret has spent more than four decades in the rental housing industry. She recently retired as Senior Vice President of Operations and Development at Park Property Management, where she has worked her entire career. Margaret has contributed significant time and energy to supporting the rental housing industry. She led the push for submetering of hydro within apartment buildings, which greatly impacted Ontario’s rental housing industry. She has served on several boards and committees with FRPO (including serving as Chair from 2018 to 2020) and other industry associations. Margaret also played a significant role in advocacy and community involvement, particularly in the areas of disability rights, community service, and equal opportunities for women in the workplace.

Other 2024 MAC Awards winners include:

• Social Media Award of Excellence: Fitzrovia (Elm-Ledbury)

• Best Advertising Campaign: The Daniels Corporation & Choice Properties

• Best Property Management Website: DBS Developments

• Best Suite Renovation Under $40,000: QuadReal Property Group (Widdicombe Place, Etobicoke), Contractor: Seasons Colours

• Best Suite Renovation Over $40,000: QuadReal Property Group (15 & 245 Lena Crescent, Cambridge)

• Best Lobby Renovation of the Year: Maddox by Fitzrovia (Maddox Sherbourne, Toronto)

• Best Curb Appeal: Dream (The Residence at Weston, 33 King Street, York)

• Best Amenities Renovation: Maddox by Fitzrovia (Maddox Sherbourne, Toronto)

• Best Amenities New Development: Fitzrovia (Elm-Ledbury, Toronto)

• Rental Development Over 200 Units: RioCan Living & Rhapsody Property Management Services (FourFifty The Well, Toronto)

• Rental Development 200 Units or Less: BlueStone Properties (101 Base Line Road West, London)

• Environmental Excellence: Skyline Group of Companies

• Property Manager of the Year: Izabela Konopka (The Daniels Corporation)

• Leasing Professional of the Year: Wendy Roberts (Sifton Properties)

• Resident Manager of the Year: Vesna Mikic (The Tricar Group)

• Customer Service Award of Excellence: Fitzrovia

• Community Service Award of Excellence — Supplier Member: Yardi Canada Ltd.

• Community Service Award of Excellence — Rental Housing Providers: Skyline Group of Companies

• Company Culture Award of Excellence: Minto Apartments

• The Impact Award: Dream Ltd., Kilmer Group & Tricon Residential (The Affordable Housing Program Initiative at Canary Landing)

Dilan Cetinkaya appointed as Director of Certification for Canadian CRB Program

FRPO has appointed Dilan Cetinkaya as Director of Certification for the Canadian Certified Rental BuildingTM (CRB) Program. In this role, she will lead the program’s growth and expansion, leveraging her extensive experience in real estate sustainability.

Dilan’s background includes managing sustainability programs at Cadillac Fairview, developing Holt Renfrew’s decarbonization roadmap, and contributing to Crown Property Management’s sustainability reporting. Her expertise in stakeholder engagement, data-driven decision-making, and process automation will be crucial in enhancing the CRB Program.

“I’m excited about the opportunity to drive meaningful change in the rental housing industry,” said Dilan. “Buildings contribute 39% of global carbon emissions and 13%-18% of Canada’s greenhouse gas emissions . While the

commercial sector has embraced sustainability for years, the residential sector is still catching up, making this a chance to innovate and lead. I’m looking forward to collaborating with property managers to enhance environmental performance, reduce operational costs, and engage residents in sustainability efforts.”

Recognizing the significant contribution of buildings to global carbon emissions, Dilan sees an opportunity to drive innovation in the residential sector. Her initial focus will be on streamlining certification processes, improving member engagement, and creating educational opportunities. Long-term goals include integrating strategies that reward sustainable practices and strengthening the link between operational efficiency and community impact.

To promote and expand the CRB Program, Dilan plans to launch training workshops, develop resident engagement programs, share success stories, and improve marketing efforts. She aims to enhance sustainability standards, helping members reduce costs while encouraging resident participation in sustainability initiatives.

Dilan emphasizes the importance of improving resident and public awareness of the CRB Program to drive broader adoption and engagement. She plans to conduct regular surveys, invite one-onone conversations, and develop workshops on sustainability strategies and operational best practices to strengthen member engagement.

Upcoming events

CMHC Breakfast

March 6, 2025 | 8:30 am – 10:30 am Parkview Manor, 55 Barber Greene Road #1, Toronto

C ost: $80 per person plus HST

Join us on March 6 as CMHC shares its key findings from its October 2024 Rental Market

Survey for the Greater Toronto Area. Trends in other major Ontario centres will also be discussed. The presentation will conclude with an outlook of where rental markets are headed in 2025 and beyond. This in-person event is open to both FRPO and GTAA members and will include an Executive Panel Discussion featuring Tony Irwin, President, FRPO as moderator; Mark Kenney, President & CEO, CAPREIT; and BJ Santavy, Vice President, Skyline Living. Additional panelists to be announced.

Registration includes full breakfast. Please note refunds are not available within seven days of the event. To substitute your registration to another individual, please email us at events@frpo.org.

PM Springfest

April 24, 2025 | 9:00 am - 2:30 pm Metro Toronto Convention Centre South, Toronto

EXCLUSIVELY FOR PROPERTY MANAGEMENT PROFESSIONALS

PM Springfest is the essential event for those managing and maintaining Toronto’s built environment, as we navigate the rapidly evolving property management landscape. With targeted education sessions, exhibitors featuring the latest tech, products and services in the space, and hundreds of new and meaningful connections to be made, it’s a one-stop shop to address the key trends shaping the future of property management. Visit https://informaconnect.com/ pm-springfest/ to learn more or to book an exhibit booth.

Ontario’s leading advocate for strong and stable rental housing.

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

For membership inquiries please contact Lynzi Michal, Director, Membership & Marketing

Federation of Rental-housing Providers of Ontario 801-67 Yonge Street, Toronto, Ontario M5E 1J8 416-309-8744 lmichal@frpo.org www.frpo.org

Yes, we can!

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

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

Kazi Shahnewaz Director,

Business Development Office: 416.340.1600 x504

C. 647.887.5676

k.m.shahnewaz@metcap.com

www.metcap.com

Hot Topics:

LPMA discusses how careful tenant screening can reduce damages from fraud. pg. 49

HDAA describes several new bylaws, encampments in Hamilton, and the municipal land transfer tax. pg. 53

EOLO provides a detailed description on the City of Ottawa's anti-renoviction bylaw. pg. 57

RHPNS describes the association's advocacy efforts, highlights from the Law Amendments Committee presentation, and engaging party leaders prior to the next election. pg. 61

Check out the digital version of RHB Magazine for news from ARLA , the newest addition to RAV.

The Member Associations

RHPNS

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PRESIDENT’S MESSAGE

LPMA marks 2025 with a new commercial

lease

On behalf of LPMA, I would like to extend warm wishes for a happy and prosperous 2025. We are incredibly grateful for the continued dedication and support of our members and associates.

Looking ahead, we are planning to launch our commercial lease at a Lunch and Learn event in February to help members make the most of this invaluable tool. The lease is specifically designed to benefit landlords managing commercial plazas or multi-use properties, and it offers strong protections and clarity to support their operations.

Understanding factors such as location, property type, lease terms, and market conditions can help members to better negotiate their agreements.

LPMA’s annual trade show takes place on April 8. This event is consistently our most highly attended and it provides an excellent platform for our associate members to showcase their products and services.

Warm regards,

- Richie Anand, President, LPMA

REDUCING DAMAGES FROM FRAUD STARTS WITH CAREFUL TENANT SCREENING

Fraud in the rental housing industry takes many forms, from tenants intentionally withholding rent payments to altering credit reports and using stolen identities. Experts say that perpetrators are becoming increasingly creative in their methods, which places the onus on landlords to better protect themselves and their assets.

London lawyer Joe Hoffer says the fraud he encounters mainly concerns tenants who legally move into a unit and stop paying rent. They either lie about the reasons or are protesting the landlord’s limited right to increase the rent above the guideline. It’s not uncommon for tenants to accumulate $30,000 in unpaid rent, knowing that the landlord’s only recourse is to evict them and that the process will take at least a year.

“I think the problem is growing,” Hoffer notes. “We’ve always had tenants who have defaulted but because tenants are much more aware of the kind of delays at the Landlord and Tenant Board, and the kind of tactics they can avail themselves of in order to play out the string, we’re seeing that much more frequently.”

Strategies for defrauding a landlord in Ontario are plentiful online. Because scammers aren’t being held legally accountable, they let rent arrears accumulate to avoid paying their rent.

Hoffer recently represented clients against two rent strikers who stopped paying rent in April 2020 and depicted themselves as fighting for tenants’ rights. The first received $40,000 in rent assistance from the City of Toronto, then vacated her unit and sublet it, keeping the money instead of paying her landlord. With the rent she saved, she purchased a condo. The other tenant moved out of his unit in 2018 and illegally sublet it to four tenants for more money than he had been paying, pocketing the rent payments. Both incurred substantial arrears before they were evicted in July 2024. Those arrears likely won’t be recovered, Hoffer says.

“These are such outrageous examples of fraud, all done in the guise of a rent strike.”

Another form of fraud involves squatting. In Windsor, several individuals broke into units in a vacant motel during the pandemic and refused to leave. They weren’t paying for electricity or

Richie Anand

rent and the police were reluctant to get involved. The Board took the position that the Residential Tenancies Act (RTA) applied because the electricity was on and one of the occupants, who had been paying weekly rent, had been in the motel for more than a month. Six months later, one of the individuals interfered with the electricity, creating a serious fire hazard. The City ordered the motel to be closed due to the threat of personal injury and the squatters left.

Hoffer says he hears of squatting situations only occasionally.

“Every once in a while, a tenant manages to get into a vacant unit. I would say it’s very rare.”

Tenants also commit fraud by withholding rent to pressure landlords not to file an application for an above guideline rent increase (AGI), a statutory right to cover the cost of major building improvements. Hoffer says landlords need to apply to the Board on the basis that the tenant isn’t paying rent. The tenant will then allege that they are withholding rent due to maintenance issues, even though they have never filed a maintenance request.

Some adjudicators instruct the tenant to pay their rent to the Board until the hearing takes place. Once the hearing establishes that there are no maintenance issues, the money is returned to the landlord months later. In such cases, the landlord’s access to the revenue needed for building maintenance is delayed, increasing the leverage of tenants seeking to extract financial concessions from the landlord.

Under the RTA, it’s an offence for a tenant to interfere with a landlord in exercising a right under the Act, Hoffer says.

“Technically, legally, they are exposed to provincial offence charges and conviction.”

Brenda Maxwell is chief operating officer of Rentcheck, a credit bureau specializing in tenant screening services based in Toronto. She says identity-based fraud has grown exponentially during the last 20-plus years as digital crime has become more sophisticated. It commonly involves altered, stolen or artificially created identities used by fraudsters to gain products or services without paying for them.

Maxwell says fraud artists often pose as tenants and are approved by landlords who cut corners during the screening process. Once scammers have rented an apartment, they can escape detection for months. The delays in hearings at the Board, paired with fraudsters’ skill in using the legal system to their advantage, can add months to their stay at the landlord’s expense.

Fraudsters bank on their victims assuming that the information they provide is valid, Maxwell says. She recommends that landlords verify an applicant’s identity even before requesting a credit report to ensure that the credit data belongs to their applicant. Otherwise, landlords could be deceived into obtaining a credit report on a completely different person whose record appears to be excellent.

During the verification process, the landlord should examine more than one physical government-issued photo ID card, such as a driver’s licence or passport, and compare photos, full legal names, dates of birth, and signatures. Landlords should also confirm the authenticity of employers’ and references’ names and phone numbers when that information is provided by applicants.

A credit report — a summary of a person’s credit history, the type of credit accounts they’ve had, their payment history, and credit limits — can reveal identity-based fraud. It typically contains aliases used by individuals, as well as flagged occurrences of previous fraud, indebtedness patterns, and legal issues. When an applicant furnishes a print or digital personal credit report or credit score, Maxwell says landlords should verify it with the original credit report provider.

Not doing so is risky.

“By accepting personal credit reports and (credit) scores at face value, a housing provider may be

duped by a skilled digital fabricator who has altered either their own credit report or someone else’s to make them look financially healthy and reliable as a renter,” Maxwell says.

She also recommends that landlords check rental histories. They show an individual’s payment pattern specifically for housing costs, as well as evictions and the degree to which they cared for the premises and complied with the lease. A rental history can also reveal that an individual with poor or incomplete credit data prioritizes housing costs above other financial obligations.

Thorough tenant screening can help prevent almost all fraud attempts, even those that are sophisticated, Maxwell says.

“Fraudsters depend on speed to get what they want. Housing providers who take the time to review every relevant detail are their worst nightmare.”

She also advises landlords to consider criminal background checks, online media searches for an applicant’s name in connection with crimes, and online mapping searches to ensure that applicants have provided legitimate previous addresses.

Many small landlords ignore basic tools, Hoffer says. These include using the LPMA lease, meeting with applicants before they sign the lease to determine the landlord’s comfort level with them, and making a copy of their photo ID so the landlord can compare it to the person moving into the unit.

Landlords should also check the credit of guarantors. Renters sometimes provide the names of friends or relatives who have insufficient assets to cover rent payments if tenants default.

Sean McNally, a small landlord, says housing providers don’t know whether the documents they request, such as employment reference letters, are genuine. As part of his verification process, he independently confirms the company name and phone number instead of assuming that the contact information provided by the applicant is correct. He then calls that number and asks to

speak to a manager to check the veracity of the information in the rental application and reference letters.

“More and more, my business mantra is, ‘Take trust out of the equation,’ so do things where you’re not trusting individuals you don’t know,” he says. “With a lot of the research, it’s almost like you’re a PI to have the confidence that what you're looking at is correct.”

McNally warns potential tenants that he intends to check the information on their application, which helps to keep them honest, he believes. He also ensures that they provide a money order or certified cheque instead of a personal cheque when they pay their first and last month’s rent.

When he calls an applicant’s current and previous landlords, McNally often gives that person incorrect information, such as the length of time the tenant has lived in the premises. A landlord would know those details, whereas a friend masquerading as the landlord likely wouldn’t.

Inconsistent information is another red flag. For example, an individual’s previous address sometimes appears in a credit report but isn’t listed in the rental application. Some potential tenants conceal an address due to a negative relationship with a previous landlord.

“That’s something I’ve seen and have uncovered,” McNally says. “It’s not black and white all the time, but you just want to confirm all of the information that you can.”

Despite the risks, Hoffer points out that the majority of landlord-tenant relationships are positive because landlords have researched applicants and tenants honour their commitments.

“We are not talking about all tenants,” Hoffer says of fraudsters. “We’re talking about this group that knows how to play the system and they can pick this up online. It’s happening more and more frequently.”

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

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

Sign up online or call Tina Potter.

PRESIDENT’S MESSAGE

We hope everyone had a wonderful start to the new year and has many great things planned for 2025. The HDAA will be busy this year trying to fight some upcoming bylaws and will be receiving more updates on the rental licensing bylaw. We look forward to our events this year, including our dinner meetings, golf tournament in June, trade show in October, and some new networking opportunities.

- Daniel Chin, President, HDAA

Rental licensing bylaw

The latest update on the rental licensing bylaw was provided to the Hamilton Planning Committee on November 19, 2024. This update contained data collected from April 2022 to September 13, 2024. As of September 2024, 1,002 license applications were received and 289 licenses have been issued. The City’s compliance officers conducted proactive investigations of 1,910 properties past their application in-take period, which increased applications. Staff have identified 57.2 per cent of license applications have been received because of proactive enforcement. As the City expected to be cost neutral at 2,000 applications, it seems this program is not as cost effective as it should be; we hope the City considers this when deciding whether it should continue. The pilot program is due to conclude on December 31, 2025, and a staff recommendation report will be provided prior in Q4 of 2025 to explain how the licensing regime should continue.

Bylaws

The City of Hamilton has rolled out new bylaws for 2025, which include the new Vacant Unit Tax and Renovation Licence and Relocation Bylaw

The Vacant Unit Tax (VUT) is a one per cent tax of assessed value for properties that have six units or less that were vacant for more than 183 days the previous calendar year. Hamilton had delayed the tax after council unexpectedly struck down the bylaw in late 2023. It was revived and passed in 2024 to begin in 2025. It has been delayed as the Canada Post strike meant notice letters and information about the tax were not able to be sent to residents. The declaration period will start on February 10 and the deadline has been extended from March 31 to April 30.

The City of Hamilton’s Renovation Licence and Relocation Bylaw is in effect as of January 1, 2025. All landlords must apply for a renovation licence when issuing an N13 notice to tenants in Hamilton to vacate their rental unit for repairs or renovation. The renovation licence application must be submitted within seven days of issuing an N13 notice. The bylaw requires temporary accommodation or compensation for tenants exercising their right of first refusal to return to their rental unit after work is completed. The cost of a renovation licence will be $715 per unit, with an annual renewal fee of $125.

The Renovation Licence and Relocation Bylaw, together with the Safe Apartment Buildings, City’s Property Standards, and Vital Services Bylaws, form the new Hamilton Apartment Rental Program. The program aims to address unfair evictions, tenant displacement, and property standards within the City.

Hamilton encampments

Hamilton has voted to restart the ban on tents in parks starting in March 2025. Last year, after dozens of complaints from residents and strained City resources, the City voted to establish a sanctioned encampment site made up of tiny homes and expand the number of shelter beds within the shelter system. With that came a motion for a proposed encampment ban, which would prevent tents from being set up in parks within one kilometre of any shelter; a similar ban or exclusion zone is planned around the new Barton-Tiffany sanctioned site. At the last General Issues Committee meeting in January, another motion was brought to end the City’s encampment protocol of allowing individuals to stay in parks; it passed with a 13-2 vote. The motion also mentioned a recent Ontario Superior Court of

Justice finding that clearing encampments from parks doesn't violate Charter freedoms. This vote brings the City closer to re-enacting the former parks bylaw that prohibits overnight camping, which should be in place on March 6. A final vote at council will be required on March 5 to pass it formally.

Municipal land transfer tax (MLTT)

Residents who move within Hamilton and those who wish to move to the municipality will be happy to hear that, in an effort between the HDAA, Cornerstone Association of REALTORS®, Hamilton Chamber of Commerce, West End Home Builder’s Association, and the many residents of Hamilton, the City will not implement a municipal land transfer tax (MLTT). A staff report was presented at a General Issues committee meeting that presented several revenue-generating options the City could take, one being an MLTT like the one in Toronto.

On a home costing $750,000, an MLTT would add $11,475 of tax on top of the provincial tax of the same amount. This would make home ownership much harder and less attainable for many by placing an additional burden on buyers, especially first-time home buyers. Findings from a poll conducted by Abacus Data was presented at the meeting and Hamiltonians made it clear they do not support an MLTT, with a significant majority expressing it would limit their ability to afford homes and delay purchasing. Such a tax would have wider economic repercussions when it comes to consumer spending and economic activity, and would affect many businesses from home renovation companies to local retail businesses. On the rental front, the MLTT would lead to higher purchasing costs for landlords, which would likely be passed onto tenants through higher rents. It could also discourage investors from wanting to purchase in Hamilton altogether, which would affect supply issues and drive up rents. We hope this will be the last we hear of such a proposal; if it does recur, Hamilton would also need to receive permission from the Province of Ontario to proceed with such a tax, which it has already said it would not support.

Past events

November 13, 2024 – Dinner meeting

The HDAA was excited to have the Hamilton Fire Department join us at our last dinner meeting to speak on fire safety and tips for housing providers. Brent Woodfine, Fire Inspector with the Hamilton Fire Department, discussed the resources available to landlords, such as being able to enter a unit without notice or a warrant to deal with fire issues, and the importance of keeping up to date with fire standards. Often, fires are due to expired smoke alarms, and it is vital to make sure these are working properly and tenants have not disarmed them. Landlords should also make sure to keep up to date records as it can be helpful when fires occur, fines are issued, and insurance becomes involved. He also discussed what is needed and what landlords should do during fire alarms in larger buildings and resources available to help with tenants who have hoarding tendencies.

The HDAA was also joined by Crime Stoppers who spoke on what resources are available for housing providers and residents in general to help stop crime in their community. Crime Stoppers is a fully anonymous tip line and funded by donations. They re-enact crime to help spark potential witnesses’ memory and generate tips to help solve crime. They can be a great resource for landlords who can tip anonymously about potential crime occurring in their buildings.

January 8, 2025 – Dinner meeting

The HDAA had another dinner meeting on January 8. We were joined by Brian Hogben from Mission35 Mortgages, who provided an excellent presentation on mortgage changes and what to expect in the coming year. We were also excited to introduce three new members of our board of

directors: Tom Cahill, Ruth Lewis, and Jason Zang. They bring a wealth of experience and knowledge to our board.

Tom Cahill is a seasoned professional with over 16 years of leadership experience in sales, marketing, and operations management. As the founder of Real Property Management Haven in Hamilton, Tom has brought his expertise in business development and operations to the property management sector. Previously, Tom held senior roles in the medical device and diagnostic industries, where he managed cross-functional teams, drove substantial revenue growth, and cultivated strong relationships with government and industry stakeholders.

Ruth Lewis has been an active HDAA member for numerous years, joining the group at City Hall and meeting with councillors. She holds both a real estate and mortgage license and continues to sell and finance investment properties.

Multi-Housing Specialist

She owns Bayside Property Management Inc., a small property management company she runs with her daughter. She has also collaborated with non-profits for many years, assisting in housingchallenged clients.

Jason Jiancheng Zang is an entrepreneur and business leader specializing in providing modular cabinetry and countertop solutions for multi-unit residential projects. He began his career in the construction industry after graduating from Western University and founding the AEON Group of Companies. Jason has been recognized for his entrepreneurial achievements with accolades, including being named one of 20 Under 40 by London Inc. Magazine in 2023 and Business London’s Twenty in their 20s by London Free Press in 2021. Beyond his professional endeavours, Jason is dedicated to giving back to the community through volunteer work and active participation in industry events.

Upcoming event

March 5, 2025 – Dinner meeting

The HDAA will be holding our next dinner meeting on March 5. Make sure to mark your calendars and keep an eye out for our emails for more details.

Jason Jiancheng Zang

Tom Cahill

Ruth Lewis

OneVoice,OneMessage,OneMagazine!

RENTT: Rental housing associations look ahead to 2025

Chair’s message

The City of Ottawa’s 2025 Budget included a 3.9 per cent tax levy increase, which is lower than some recent increases in other cities. However, as decided in the spring, solid waste charges will increase on April 1, 2025, for both multi-residential properties and residential properties (six units and fewer).

In November, the City continued the Vacant Unit Tax (VUT), and increased the rate of the tax for continuing vacancies. Currently, the VUT applies only to residential properties. EOLO sought to avoid the increase in the VUT rate, but lost at City Council by a vote of 14 to 10.

- John Dickie, Chair, Eastern Ontario Landlord Organization

Latest City of Ottawa moves on an anti-renoviction by-law

At its meeting on January 22, 2025, Ottawa City Council voted to have City staff proceed with the exploration of a by-law to impose conditions on Ottawa landlords who issue N13 notices to terminate tenancies for renovations.

As staff and the Councillors recognize, the City cannot overrule provincial law. Whatever conditions the City adds, the Landlord and Tenant Board will decide on terminations and evictions. If the City were to try to require so much that the conditions amounted to banning terminations for renovations, such rules would be invalid.

However, the goal is to prevent inappropriate use of N13 notices. EOLO agrees with the Federation of Rental-housing Providers of Ontario (FRPO), and provincial law, that N13 notices should not be used in bad faith. However, we are concerned about the unintended consequences of a City by-law and the risk of overreach. A number of Councillors were sympathetic to both of EOLO’s concerns.

Over the next year of study, the key issue will be what requirements City staff recommend be included in a City by-law. EOLO intends to provide the industry’s input to seek to minimize the impact of new rules on legitimate renovations, major repairs, and demolitions.

The staff position

City staff recommended against the development of an Ottawa Renovation License and Relocation By-Law at this time. That advice was based on provincial jurisdiction, the as-yet unproclaimed provincial reforms in Bill 97, the lack of knowledge

of the impact of the Hamilton by-law on terminations for renovations, the costs to the City, and the lack of City of Ottawa resources (which were committed to other by-law review work).

The Committee’s decision

Based on discussions before its consideration on January 15, the Planning and Housing Committee had recommended putting off two other by-law reviews that are in the current work plan, namely reviews of the by-laws regulating the use of leafblowers and the provision of body-rub parlours. Understandably, they decided addressing the fouryear old housing emergency should take priority.

Both staff and the Committee had recommended asking the province to increase funding for tenant education and assistance, and to implement Bill 97 within three months. (Bill 97 has been enacted but not brought into force.) That is being done.

The Bill 97 reforms

When it is brought into force, Bill 97 will require the following additional steps by landlords:

• Include with the N13 notice a report from a person with prescribed qualifications confirming renovations are so extensive that they require vacant possession of the rental unit and meet any other prescribed requirements

• Without delay, provide tenants who give notice of their intention to return after renovations with a written estimate of the completion date for the renovations and any changes in that date

• Without delay, provide such tenants with written notice that the unit is available for occupancy

• Give such tenants at least 60 days after the unit is ready to occupy the unit again

If a landlord fails to provide the proper notices or respect a tenant’s right of first refusal, a tenant will be able to apply to the Landlord and Tenant Board for remedies within two years of moving out or six months after the repairs or renovations are completed.

Under the Residential Tenancies Act as it stands without Bill 97, most tenants who vacate pursuant to an N13 notice are entitled to three months rent and the right to return to the renovated unit at close to the old rent. What rules have other cities enacted?

The Hamilton by-law

The City of Hamilton recently enacted Ontario’s first “anti-renoviction by-law,” which came into force on January 1, 2025. It includes these provisions:

• A landlord must submit an application to the City within seven days of serving an N13 for repairs or renovations, paying a fee of $715 per building (if all the N13s are issued at the same time under the same building permit)

• The landlord must provide the City with their building permit and a report prepared by an engineer or architect certifying the repair or renovation requires vacant possession

• The City is to inform a legal clinic or housing help agency of the N13, for them to reach out to the tenant

• The landlord must provide the tenant an information package prepared by the City and the tenant advocacy agencies

• The landlord must provide a Tenant Accommodation or Compensation Plan to provide tenants who choose to return to their units with temporary, comparable housing at similar rents to their current rents, or provide monthly rent-gap payments to cover the rent difference between their current rent and the Hamilton-wide average market rent per CMHC, with tenants finding their own temporary housing

• Where the tenant chooses not to return to the unit after the renovation or repair work is complete, the landlord must provide the tenant with a prescribed severance compensation

• Fines for non-compliance

• Units must be rented to returning tenants at the same rent as if the tenancy had not been interrupted (which is also provincial law)

The Toronto by-law

The City of Toronto is also adopting an anti-renoviction by-law. Some details are still to be finalized, but as of now the program is expected to include many of the same provisions as the Hamilton by-law, and several more. Besides the rent gap compensation, landlords are to pay tenants moving allowances of $1,500 for a studio/one-bedroom unit, or $2,500 for a two-or-more-bedroom unit. If the tenant leaves and returns to the unit, that would be paid twice. If the tenant leaves and does not return, that would be paid once. Potentially worse, the rent-gap compensation is to be based on the higher of the post2015 average market rents in the neighbourhood or across Toronto as a whole. Toronto also contemplates publishing the status of all such applications in a public registry, and higher fines than Hamilton expects to impose. Toronto does include an exemption for emergency repairs. Its by-law is to come into force on July 31, 2025.

Major reasons Ottawa City staff recommended a delay were to see the effect of the other Ontario by-laws and to see if they are upheld by the Ontario courts.

EOLO’s arguments and the views of the dissenting Councillors

In its submissions at the committee and to Councillors, EOLO supported the staff report, including the argument the matter was one of provincial jurisdiction. We also pointed out that many policy moves have unintended consequences and any moves that discourage the provision of rental housing could easily make more unidentified tenants worse off than the identifiable tenants who are made better off.

Out of the 24 Councillors who voted, six opposed the motion for staff to proceed with the study of a by-law. Three of those six spoke on the issues: Councillors Steve Desroches, Matt Luloff, and David Hill. They variously emphasized:

• The issue falls under provincial jurisdiction

• The unintended consequences

• The likely negative effect on overall rental supply

The other Councillors who voted against the study were George Darouze, Wilson Lo, and David Brown.

Other Councillors voted for the study but spoke of their view it should stop if Bill 97 is brought into force (Cathy Curry and Allan Hubley), or careful attention should be paid to the unintended consequences and trade-offs (Allan Hubley and Glen Gower).

In his remarks, Councillor Hill said:

"This motion gives no consideration to the second and third order impacts of a municipal policy that would add cost and time to a rental market that is already overheated and bogged down in process.

The simplest and most effective way to [reduce rents] is through increasing supply. Looking at N13 notifications as a ‘bad thing’ is an oversimplification of a complex ecosystem. There are very legitimate times that an older building needs intrusive maintenance for health and safety reasons. … Surge maintenance cycles are important to ensuring that buildings don’t turn into slums – and adding regulations that restrict landlords from these processes will cause building degradation.

Opportunities to turn a duplex into a triplex – that gradual intensification that our new official plan espouses – will be usurped.

Our policy focus should be on increasing the rental [supply] in order to stabilize [rents], to incentivize a broad representation of good-faith landlords, and to support provincial measures that focus on the punitive options available to deal with both bad faith landlords and tenants in order to improve the overall health of our rental market. Finally, there will be a Federal election this year. There are very clear signals that Housing Accelerator Funding from the Federal government could become much more targeted based on municipalities reducing red tape and building more housing. Duplicating provincial regulation with an independent municipal renoviction bylaw may well contribute to endangering tens of millions of federal dollars due to its impact of adding delays to building renovations and much needed vertical infill development, making rent more expensive and adding to the already rampant inflation, affordability and quality of life issues that we face."

EOLO and the rental housing industry could not have said it better.

BECOME AN EOLO MEMBER NOW!

EOLO invites Ottawa area landlords to join the organization. Have your interests and concerns heard, and benefit from EOLO’s support. As an EOLO member, you will be able to:

• Receive prompt emails of relevant City rule changes

• Attend two networking receptions a year

• Attend two free education events a year

• Receive all 6 annual issues of RHB Magazine with current developments, City and provincial funding programs, and landlord-tenant laws.

To apply for membership, go to www.eolo.ca, download the membership application form and send it to us at the contact info on that website.

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

PARTNERING FOR PROGRESS

W W W . C F A A - F C A P I . O R G

M A Y 1 3

- 1 5

J o i n s e n i o r l e a d e r s a n d d e c i s i o n - m a k e r s f r o m

a c r o s s C a n a d a a t t h e c o u n t r y ’ s t o p r e n t a l h o u s i n g

e v e n t . T h i s y e a r ’ s c o n f e r e n c e i s a l l a b o u t

i n n o v a t i o n , c o l l a b o r a t i o n , a n d s h a p i n g t h e f u t u r e

o f o u r i n d u s t r y

D i v e i n t o b o l d d i s c u s s i o n s , g a i n g a m e - c h a n g i n g

i n s i g h t s , a n d f o r g e p a r t n e r s h i p s t h a t m o v e r e n t a l

h o u s i n g i n C a n a d a f o r w a r d . J o i n u s i n V a n c o u v e r

w h e r e t h e f u t u r e t a k e s s h a p e .

The Investment Property Owners Association of Nova Scotia (IPOANS) rebranded in the fall of 2024 to the Rental Housing Providers Nova Scotia (RHPNS) to better reflect its role in representing Nova Scotia’s apartment rental owners, who provide homes to over 300,000 Nova Scotians. RHPNS continues to focus on its three pillars: advocacy, education, and

After recalibrating policies over the summer, RHPNS began a busy fall with an early legislative session where housing supply and affordability took centre stage. Q4 proved to

Law Amendments Committee presentation highlights

The Progressive Conservative government stood firm, tabling Bill 467, Interim Residential Rental Increase Cap Act (amended) and Residential Tenancies Act (amended). These measures extended the 5% rent cap to December 31, 2027, and introduced several amendments RHPNS had long advocated for:

Shortened eviction timelines: Landlords can now begin eviction proceedings after three full days of unpaid rent, with tenants given 10 calendar days to respond, replacing the previous 30-day process.

New grounds for eviction: Grounds now include criminal behaviour, disruptive actions, habitual late payments, and significant willful property damage.

• Prohibition on subletting at higher rents: Ensuring fairness in rental agreements.

• Publishing tenancy decisions: Promoting transparency and accountability.

At the September 16, 2024, Standing Committee on Law Amendments, RHPNS voiced concerns over Bill 467 and its continuation of rent control, which has proven counterproductive. Before rent control’s introduction in 2020, Nova Scotia experienced moderate rent increases compared to rent-controlled jurisdictions like Ontario and BC. Since then, rent caps have contributed to skyrocketing rents for new builds, diminishing rental stock, and increasing homelessness. A positive note in Bill 467 is the preservation of fixed-term leases, a critical tool for addressing emergency and supportive housing needs. Data from our larger members, representing over 12,500 units, show fixed-term leases are minimally used—only 2.3%—yet they are vital for partnerships with organizations like Adsum, Shelter Nova Scotia, and YWCA to provide emergency and transitional housing.

Our surveys indicate that 87% of fixed-term leases are unrelated to the rent cap, and over half support first-time renters, dispelling misconceptions that they are exploitative. Restricting fixed-term leases risks undermining the housing options available for vulnerable populations. RHPNS continues to advocate for policies grounded in data and fairness, ensuring the housing sector remains robust and responsive.

Nova Scotia provincial election: Engaging party leaders for solutions

The announcement of an unexpected October provincial election prompted RHPNS to issue a leaders’ survey, seeking answers to key questions affecting Nova Scotia’s apartment rental industry.

Survey preamble

RHPNS represents over 50,000 residential rental units across the province, with 91% of the 6,289 landlords being small apartment operators, according to a 2021 Gardner Pinfold report.

RHPNS members play a vital role in addressing housing needs, often partnering with government and non-profits to provide critical housing solutions. It is essential for elected officials to collaborate effectively with our sector to tackle the ongoing housing crisis.

In light of the upcoming provincial election, RHPNS posed six key questions to all political parties, seeking clarity on their housing policies. Responses were to inform members on what to expect from each party as they prepare to cast their votes.

Survey questions

Question #1: The rent control regime announced in 2020 and extended contrary to the recommendation of the independent Affordable Housing Commission in 2021 has resulted in financial losses for rental housing owners/operators, the sale of rental housing properties, reduced property maintenance, the removal of affordable housing supply from the marketplace, and increased homelessness. What will your party do to reverse the damage inflicted by Nova Scotia’s rent control regime on rental property owners and tenants?

Question #2: Fixed-term leases are often the only way rental housing is provided to economically vulnerable renters, including first-time renters, persons with a poor credit history, students, seniors, and new Canadians. Fixed-term leases are used to provide housing to clients from such not-for-profit organizations as Adsum for Women and Children, North End Community Health Centre, Elizabeth Fry Society, Shelter Nova Scotia, Tawaak Housing Association, Welcome Housing, YWCA, Phoenix for Youth, and John Howard Society.

A 2024 survey of our members showed that changes to end or restrict fixed-term leases would result in less rental housing for supportive housing organizations; less rental housing for students; and less rental housing for financially precarious individuals. The survey also showed that ending or restricting fixed-term leases would result in the sale of rental housing properties, leaving rental units empty or repurposing the property to another use, affecting 5,000-10,000 rental housing units in the province. What will your party do to protect the benefits that fixed-term leases offer to those most in need of affordable housing?

Question #3: The Nova Scotia government has refused to introduce a compliance and enforcement unit for residential tenancies, as recommended by the report from Davis Pier that it commissioned. The cost to create and maintain such a program was cited as a reason not to proceed, among others. Although RHPNS still supports the creation of such a unit, as an alternative, will your party support redirecting the $3 million in funds that would have been allocated to create and maintain compliance and enforcement to hiring more Residential Tenancy Officers in the Residential Tenancies program to improve the administration and delivery of the program?

Question #4: In 2021, we informed all three Nova Scotia party leaders that a 2018 report from Turner Drake concluded that the Nova Scotia Capped Assessment Program (CAP) resulted in rents $7 to $17 higher per rental unit. The same report also noted that low-income renters are impacted disproportionately and that the longer the CAP remains in place, the more it will add to rental prices that tenants pay. To make rental units more affordable for tenants, will you either eliminate the CAP or extend it to include rental properties so that they pay the same stable tax rates as single-family residential homeowners?

Question #5: In 2021, we asked the three Nova Scotia party leaders to commit to a feasibility study around establishing an Emergency Rent Bank, a government sponsored initiative for tenants to honour their commitments to pay the rent through a direct payment to rental housing providers. Last year, New Brunswick set up such a program. Will you help tenants and rental housing providers resolve non-payment of rent by creating an Emergency Rent Bank?

Question #6: Many rental housing providers, including staff, are reporting increased incidences of threats made against them, in person and on social media. Many of these affected individuals are female and racially diverse individuals. Political and activist rhetoric targeting rental housing providers is unfortunately giving license to these threats, which have included threats of violence requiring law enforcement being contacted. What steps will your party take to engage in more responsible, constructive dialogue related to rental housing issues to reduce the risk to rental housing providers and protect their right to operate in a safe workplace?

Unsurprisingly, the party leaders’ responses reflected the partisan debates and positions taken during the fall legislative session.

RHPNS actively monitored and corrected misleading statements, including a claim by the NDP leader that rents had increased by 70%. RHPNS clarified that CMHC data showed increases of 22% in 2022 and 2023.

The election resulted in a Progressive Conservative supermajority, winning 44 of 55 seats. The NDP gained traction in Halifax Regional Municipality—home to 85% of Nova Scotia’s rental stock—securing nine seats and becoming the official opposition, while the Liberals were reduced to just two seats.

Education

RHPNS launched its revamped Residential Property Management Course, attracting 22 participants. The new format condenses the program into three focused modules:

• Legal Resources and Residential Property Management Standards (30 hours)

• Human Relations for Residential Property Managers (20 hours)

• Marketing and Financial Planning for Residential Property Managers (20 hours)

The Building Service Excellence Course is set to launch in May, with registration opening in January.

Membership services

Women in Industry event

The third annual event, titled LeadHERship and Legacy: Harnessing the Power of Building Bridges in Industry, was held on November 5 with over 200 attendees. The event celebrated women’s contributions to the industry through a dynamic panel discussion.

2025 premium

events

RHPNS Awards Gala and Trade Show (April 22): Featuring keynote speaker Jon Love, with over 400 attendees expected. Nominations for Innovation & Excellence Awards close on March 21, 2025.

Residential Tenancies Forum (June 13): Sponsored by YARDI, with over 200 attendees anticipated. Membership growth and newsletter

RHPNS saw a net membership increase of 6.7% in 2024, reaching 194 members despite losing 20 who exited the industry. This growth reflects the industry’s recognition of RHPNS’s vital advocacy and support. The Multi-Res Newsletter expanded its subscriber base from 1,200 to 1,300, ensuring timely updates and insights for members.

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

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

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

Trusted Advisors

Providing Expertise in Building Science and Structural Restoration

ƒ Garage & Balcony Assessment & Restoration

ƒ Building Cladding Design, Assessment & Remediation

ƒ Roofing System Design, Assessment & Remediation

ƒ Building Condition Assessments

ƒ Capital Planning

ƒ Building Renewal

ƒ Energy Audits and Modelling

Philip Sarvinis | Bill Gladu | Jeremy Horst | Michael Pond Duncan Rowe | Jack Albert Beau Gaudreau | James Cooper | Nigel Parker | Paul Fritze | Sohrab Karkhel

EXECUTIVE DIRECTOR’S MESSAGE

The past year was significant for ARLA, marked by our growing membership and numerous accomplishments. We take pride in our efforts to advocate for our membership’s needs while providing essential training, information, and networking opportunities.

Moving forward in 2025, we look forward to making our events even more successful! We will continue to keep our members informed on relevant municipal and provincial issues and market updates through regular email broadcasts.

- Donna Monkhouse, Executive Director

What’s happening in Edmonton?

The City of Edmonton will have its next election on October 20, 2025. ARLA will be sending a letter to all candidates to provide their stand on a variety of issues, including property taxes, safety and security issues, the City’s Economic Action Plan, organic waste concerns, and more. With respect to property taxes, the City of Edmonton has committed to phasing out the multifamily tax rate by 2029. The residential tax rate is currently 9 per cent lower this year than the multifamily rate. It’s a positive step forward for multifamily property owners. However, we would like to see the City’s decision expedited to have this tax class phased out by 2026.

ARLA meets regularly with Edmonton Police Services to discuss any issues or ideas for helping our members keep their buildings and tenants safe and secure. Our March presentations will speak to safety and security in Edmonton with guest speakers including the NET Team (Neighbourhood Empowerment Team), Crime Free, EPS, Boyle Street, and 211.

Waste removal

ARLA is preparing a letter to the City of Edmonton once again with respect to letting rental housing providers procure and take responsibility for their own waste removal.

The multifamily housing sector faces unique challenges in managing waste efficiently and sustainably. The current municipal waste management services, while comprehensive, often do not fully address the specific needs of multifamily properties. We are now seeing many of these issues as we move further into the changeover with the City Waste Team. Allowing the option to contract private waste management services would provide several benefits:

1. Customization and flexibility: Private contractors can offer tailored solutions that better fit the diverse needs of multifamily properties, ensuring more efficient and effective waste management.

2. Cost efficiency: Competitive pricing from private contractors can potentially reduce waste management costs for property owners and tenants.

3. Enhanced recycling and organics programs: Private contractors often have advanced capabilities and innovative approaches to recycling and organics collection, which can significantly improve sustainability efforts.

4. Improved service levels: With the ability to choose from multiple service providers, multifamily properties can ensure higher service standards and accountability. This would also assist with affordability to our residents at a time when all savings are beneficial.

We will continue these efforts with the upcoming candidates and City Council members.

Upcoming changes to the RTA

ARLA is working with the Alberta Law Reform Institute on some updated changes to the Residential Tenancies Act. This is a very slow process and ARLA has sent a list of issues that they would like to see reviewed directly to the Minister of Service Alberta and Red Tape Reduction.

Security deposit interest rates for 2025

The rate of interest to be paid on tenant security deposits by landlords, effective January 1, 2025, will be set at 1.00 per cent.

By an Order in Council passed on September 8, 2004, the Security Deposit Interest Rate Regulation set a permanent formula setting the yearly interest

Donna Monkhouse

rate payable on security deposits. The formula takes the interest rate that ATB Financial is charging for its cashable one-year guaranteed investment certificate (GIC) on November 1 of the previous year and subtracts 3 per cent from that rate.

ATB Financial’s rate for cashable one-year GICs on November 1, 2024, was 4.00 per cent. As a result, the interest rate for security deposits held under the Residential Tenancies Act or Mobile Home Sites Tenancies Act for 2025 will be 1.00 per cent.

Landlords must pay any interest owing to their tenants annually at the end of each tenancy year, unless both parties agree in writing that the interest will not be paid annually, in which case the interest must be compounded annually.

In 2024, the interest rate to be paid on security deposits was 1.6 per cent. This was the first-time landlords were required to pay interest on security deposits since 2009. Landlords and tenants can use the security deposit interest calculator to determine the amount of interest that is owed based on the regulated interest rates. The calculator can be found at http://www. servicealberta.gov.ab.ca/interest-chart.cfm.

Additional educational and awareness materials for landlords and tenants are available at https://www.alberta.ca/information-forlandlordsand-tenants. For more information, contact the Service Alberta and Red Tape Reduction Consumer Contact Centre at 1-877427-4088, or by email at rta@gov.ab.ca.

Investing in Alberta’s rental properties: Join ARLA for unmatched benefits

If you invest in rental properties in Alberta, consider joining the Alberta Residential Landlord Association (ARLA) for numerous compelling reasons. Your membership supports advocacy for the Alberta multifamily housing industry, education, and much more. Alberta is one of three provinces in Canada without rent controls, and ARLA is dedicated to maintaining this status. We consistently advocate to ensure our voices on issues and solutions are heard. The absence of rent controls provides choices for tenants and keeps rents affordable. Despite Alberta experiencing one of the highest percentage rental increases in 2024, rents remain more affordable than in many other provinces, offering competitive rental prices.

In 2024, ARLA published a research document on Alberta’s rental market dynamics and policy landscape, which is available on our website. Increased migration and demographic trends in Alberta have impacted rent prices due to supply constraints. Housing providers face higher costs for mortgages, utilities, property taxes, and maintenance, affecting profitability. Over the past decade, Edmonton has led with some of the lowest rent prices and smallest increases. Average rents in Alberta saw little to no increase from 2013 to late 2024. We invite you to read the report to learn more about Alberta’s rental market.

ARLA is a non-profit, membership-based association that educates and advocates for housing providers in Alberta. Established in 1994, we have a strong and growing membership. We provide all forms required to satisfy the Residential Tenancies Act (RTA) in Alberta. Our monthly seminars, webinars, and luncheons cover a range of relevant topics. We also have a network of reliable service providers for our landlord community.

Each year, we host a trade show and an awards luncheon to honour industry professionals. This year’s event will be held on April 25, 2025, at the River Cree Resort. Don’t miss this great event, and if you are a member, remember to nominate your peers. We also organize a golf tournament at the Quarry, a sold-out event known for its great atmosphere. Our networking events, such as the appreciation BBQ and lawn bowling, offer additional opportunities for connection. Members benefit from discounts on forms and services, including insurance, credit checks, and RTDRS representatives. We also offer an RTA workshop webinar four times a year and an online RTA course called SuiteSmarts.

We provide monthly updates on government issues, industry news, and market trends. With Edmonton’s municipal election approaching, we are preparing our issues for the candidates to help our members make informed decisions. We are collaborating with other associations on waste management issues in Edmonton to control contractor costs. We stay actively involved with government activities to ensure our voice is heard. ARLA welcomes members from single-unit landlords to large-scale landlords and REITs, as well as not-for-profit groups. If your company is a member, all employees can participate in ARLA events and activities.

Discover the many benefits of ARLA membership by visiting our website at www.albertalandlord. org or contact us to learn how you can benefit from becoming a member.

Past events

November 15, 2024 – AGM and Christmas Luncheon

ARLA members got together at the Chateau Louis Conference Centre for the AGM and some holiday cheer. Over 200 members got together to have fun, share drinks and food with their peers, enjoy the entertainment, and take home a lot of prizes. Check out our Facebook page for photos of the festivities. We hope to see you at the AGM and luncheon next year.

Future events

February 7, 2025 – RTA Fundamentals Workshop Webinar

9:30 am – 12:30 pm

This webinar is presented by Chrystal Skead, CPM, ARM, Clear Stone Asset Consulting, who has more than 30 years of experience in managing multifamily, condo, and mixed-use properties. This workshop empowers attendees and their teams with being compliant in their rental business by learning to navigate the Residential Tenancies Act.

This workshop will cover:

• How to legally handle a security deposit

• How to screen new residents

• The rights and covenants of landlords and tenants

• The requirements for completing Premises Condition Inspection reports

• The difference between a fixed term, periodic, and implied periodic tenancy

• How to identify and handle non-tenants

• Legal entry of the premises by the landlord

• Laws restricting rent increases

• Assigning and sub-letting leases

• How tenancies may be terminated

• Different types of evictions, how they are issued, and use of the Dispute Resolution Service

• How to identify and handle an abandoned premises and goods

• Domestic violence updated legislation ARLA offers the RTA Fundamentals Workshop four times per year. Members pay $75.00 to attend; non-member pricing is $125.00 per person.

February 19, 2025 – Morning presentation and general meeting luncheon

10:00 am – 1:00 pm

Chateau Louis Conference Centre

Our February luncheon will include speakers from CMHC, Edmonton Economist, and Alberta’s Economist. We hope they will provide us more positive vibes for Edmonton and Alberta.

April 25, 2025 – Landlord Resource Trade Show and ARLA Achievement Awards

Join us at the River Cree Resort & Casino for this must-attend event. Save the date and check the website for more details.

Other future events

March 19 – Morning presentation and general meeting luncheon

July 11 – Member Appreciation BBQ August 7 – ARLA Golf Tournament

For more information about becoming a member of the Alberta Residential Landlord Association (ARLA) please feel free to email donna@ albertalandlord.org or you can call our office directly and speak to us at 780 413 9773. Visit our website at www.albertalandlord.org to learn more about us!

Final Take Away Final Take Away

The

Brought to you by Yardi Canada Ltd

balance of AI and humans in Canadian residential markets: Preparing for 2025

By Peter Altobelli, Vice President and General Manager, Yardi Canada Ltd.

Artificial intelligence (AI) is transforming industries, including property management. In Canadian residential markets, AI offers the potential to streamline operations, enhance tenant experiences, and simplify complex workflows. However, adopting AI effectively requires a thoughtful, phased approach focused on meaningful benefits rather than trends.

How AI enhances property management

AI’s greatest strength lies in simplifying processes and empowering property teams. By focusing on key areas like communication, administrative efficiency, data accessibility, and security, AI technology can deliver transformative advantages.

Smarter communication with chatbots

AI-powered chatbots are transforming tenant and prospect interactions by understanding natural language and responding intelligently. For example, a tenant reporting discomfort in their unit might receive an automated response like, “No problem, I’ve created a maintenance request, and a technician will be on the way shortly.”

These bots handle interactions via property websites and tenant apps, managing tasks like confirming pet policies, scheduling viewings, completing or updating lease details, and more. By automating routine tasks, chatbots ensure faster service, improve tenant satisfaction, and free staff to focus on more complex issues, enhancing overall operational efficiency.

Advancing accounts payable

Tools like optical character recognition (OCR) and machine learning are transforming invoice processing by improving data accuracy and saving businesses nearly $40,000 annually, according to a Yardi study. These technologies extract key details from vendor invoices and automatically populate them into ERP systems, streamlining a traditionally time-consuming process.

What’s new with this tech: if errors are detected, alerts notify users to validate the data. When edits are made, AI learns from these adjustments, improving accuracy for future invoice uploads. This combination of automation and AI reduces administrative burdens and allows property managers to focus on strategic priorities.

Easy access to data with AI assistants

AI assistants simplify database interactions by integrating directly with ERP systems and operating as ChatGPT. Imagine managers logging into your platform and simply asking the assistant, “Who has the most overdue accounts receivable?” or “Run an income statement for last quarter.” This intuitive access ensures critical information is

always at their fingertips, empowering faster and more confident decision-making.

C ommitment to security and ethical AI

The adoption of AI comes with significant responsibility to ensure that data is secure and used ethically. It is essential to prioritize AI applications that provide measurable benefits and avoid using client data to train public systems. Operating within secure, private environments and complying with all legal and contractual obligations builds trust and confidence among clients and stakeholders. Ethical AI use not only protects sensitive information but also reinforces the integrity of tenant and business relationships. Balancing innovation with the human touch While AI can streamline tasks and provide valuable insights, it cannot replace the empathy, intuition, and decision-making skills of property managers. Tenants value personalized service, and human expertise remains essential for resolving complex issues and fostering strong relationships.

AI technology is designed to complement human capabilities by automating repetitive tasks and delivering actionable insights. This allows managers to focus on what they do best — providing exceptional service and driving portfolio growth.

Preparing for 2025 with AI

As the Canadian residential market evolves, AI will become an essential tool for meeting the demands of tenants and stakeholders. By embracing AI responsibly and thoughtfully, property managers can navigate the challenges and opportunities of 2025 and beyond with confidence.

AI is not a replacement for human expertise but a powerful tool to amplify it. With a balanced approach to innovation and the human touch, property management teams can achieve greater efficiency, stronger tenant relationships, and measurable success in the years ahead. By staying ahead of industry trends and investing in AI thoughtfully, property managers can position themselves as leaders in an increasingly competitive market.

Learn more about AI at yardivirtuoso.com.