CAM Jan/Feb 2021

Apartment CANADIAN

VOLUME 18 / NUMBER 1 / JANUARY/FEBRUARY 2021

RECOVERY & RENEWAL ADDRESSING CANADA’S AGING RESIDENTIAL TOWERS

plus

PA R T O F T H E

2021 FORECAST

PM#40063056

ENERGY

RETROFITS THE WAVERLEY

P A R T

O F

T H E

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.

We concentrate on revenue growth, controlling expenses, and strategic capital investment in your property to maximize your profitability over the long term — 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

EDITOR’S NOTE>>

Apartment CANADIAN

UPGRADES NEEDED NOW

/cammediaedge /cdnapartmentmag /mediaedgecam

A full year has passed since the COVID-19 pandemic first wreaked havoc on the world, and despite all the hardships suffered by many, the sector persevered and is finally emerging into a new and promising era. The road ahead will be bumpy, but nothing will compare to the roller coaster that was 2020.

We learned a lot from the past year about the “haves and have nots.” Owners and managers of aging multi-residential rental towers are being called upon to invest in their assets — for their own interests and the greater good. It’s not a new call, but the pandemic has put a lens on health and safety unlike any time before it in history.

People are spending more time at home, confined in close quarters.

Climate change is impacting resilience and livability. Frontline workers who make up a significant portion of Canada’s lower income households are bearing the brunt of housing inequality. In our cover story, we look at the multitude of reasons why critical upgrades to Canada’s aging rental housing stock need to happen now. It’s not a straightforward proposition, but it’s an urgent one.

Also in this issue, we look at recent legislative changes, apartment transactions, rental market facts and figures, new and notable rental properties, winter pest tips, and more. For daily coverage of the news stories affecting the industry, be sure to visit us at www.REMInetwork.com. And as always, if you have a story idea you’d like to share or a comment you’d like to add, please reach out to us via one of our many social media channels.

In the meantime, stay safe and keep up the good work.

rent trends

Erin Ruddy

Senior Designer

Annette Carlucci

Production Manager

Rachel Selbie

Contributing Writers

Alice Sinia Andy Schwartze

National Sales

Bryan Chong Kelly Nicholls Blair Wilson

Digital Media Director Steven Chester Circulation

Rob Osiecki For sales information call (416) 512-8186

Canadian Apartment Magazine is published six times a year by:

2001 Sheppard Avenue East, Suite 500 | Toronto, Ontario M2J 4Z8 E-mail: info@mediaedge.ca

President Kevin Brown Group Publisher Sean Foley Copyright 2021 Canada Post Canadian Publications Mail Sales Product Agreement No. 40063056 ISSN 1712-140X Circulation 416-516-8186 ext. 234 circulation@mediaedge.ca Subscription Rates: Canada: 1 year, $50*, 2 years, $90*, US $75 International $100, Single Copy Sales: Canada: $12* * Plus applicable taxes Requests for permission to reprint any portion of this magazine should be sent to Erin Ruddy.

Sincerely, Erin Ruddy @cdnapartmentmag

Editor

Authors: Canadian Apartment Magazine accepts unsolicited query letters and article suggestions.

Manufacturers: Those wishing to have their products reviewed should contact the publisher or send information to the attention of the editor.

The opinions expressed are those of the authors of articles and do not necessarily reflect the views of Canadian Apartment Magazine. This information is general and is not a substitute for legal advice.

Sworn Statement of Circulation: Available from the publisher upon written request. Although Canadian Apartment Magazine makes every effort to ensure the accuracy of the information published, we cannot be held liable for any errors or omissions, however caused. Printed in Canada.

THE COST OF UPGRADING YOUR AGING ASSETS Source: Urban Land Institute

LIGHT ENERGY RETROFIT

Goal: To reduce utility costs Approx. cost: $15,500

MEDIUM ENERGY RETROFIT

Goal: To reduce greenhouse gases (35 %) and make critical upgrades Approx. cost: $50,600

DEEP ENERGY RETROFIT

Goal: To reduce greenhouse gases (70% plus) and make critical upgrades Approx. cost: $84,700

COMPLETE RETROFIT

Goal: To replace all existing systems and transition to high-performance Approx. cost: $171,806

Our Business is to Make Yours Shine!

Whiterose is an Industry Leader with a long list of condos in the downtown and surrounding areas Whiterose Janitorial Services Ltd. believes in servicing its customers with professionalism, communication and appreciation. The Key to our success is service, quality and value. We clean beyond the surface!

Quality management begins behind the scenes prior to commencing a job all employees are evaluated and or training to the whiterose standard given special attention to health and safety policies.

Whiterose Janitorial Services is a full service company and a member of ACMO and CCI. Specializing in cleaning and live in & live out Superintendents for the past 30 years.

Spectrum of Cleaning Services: • Facility assessment • House keeping and general cleaning services • Customized cleaning service plan • Customized cleaning schedules • Window cleaning (Exterior high rise) • Garage cleaning • Marble restoration & Polishing • Carpet cleaning

Visit our website or call us today for your no-obligation quote!

WhiteroseJanitorial.com 1-877-253-3648 / 416-850-9676

Spectrum of Superintendent Services: • Building audit • Check Hvac • Perform generator tests • Cooling towers • Chillers • Compressors • Sprinkler system • Fire pump • Hot water tanks • Booster pump • On call 24/7 for emergencies

COMMITTED TO EXCELLENCE SINCE 1986

Apartment CANADIAN

VOLUME 18 / NUMBER 1 / JANUARY/ FEBRUARY 2021

FEATURES 22 The Waverley’s Iconic Roots New boutique rental community pays tribute to its musical past 24 W inter Property Maintenance Tips How to prevent cold-weather pest activity

by Alice Sinia

COLUMNS 8 Transactions A Hopeful Outlook For 2021 10 CMHC Rental Market Insights

by Graeme Huycke 26 Newsworthy Industry Hot Topics 28 Insurance Enhancing The Resident Experience

by Andy Schwartze

COVER STORY

DEPARTMENTS

Apartment

16 Investing In Canada’s Aging Residential Towers Pandemic underscores urgency for critical upgrades

by Erin Ruddy

4

RECOVERY & RENEWAL

For daily industry news, please follow us on Twitter at: @cdnapartmentmag @REMINetwork

CANADIAN

Editor’s Note

ON THE COVER:

VOLUME 18 / NUMBER 1 / JANUARY/FEBRUARY 2021

Tower in the Park, Toronto

ADDRESSING CANADA’S AGING RESIDENTIAL TOWERS

30 Smart Ideas plus

PA R T O F T H E

PA R T O F T H E

2021 FORECAST

PM#40063056

ENERGY

Or visit our award-winning website: www.REMInetwork.com

RETROFITS

P A R T

O F

T H E

P A R T

THE WAVERLEY

Powered by

O F

T H E

STABILITY AND BALANCE

AT THE TOP!

As a sister company to ACE Painting, Cranfield General Contracting was formed in 2004 to further meet the remodeling demands of all our clients.

Delivering superior quality and cutting edge solutions Cranfield provides major renovation services to include interior, exterior, in suite and common area upgrades.

UPGRADES | ELECTRICAL PLUMBING | MILLWORK

W W W. A C E G R O U P G TA . C A

ACE

GROUP OF COMPANIES

ACE

GROUP OF COMPANIES

Hopeful Outlook for Multi-Res Sector Insights from Morguard’s 2021 Economic Outlook Report Investor confidence in the multi-suite residential and industrial property sectors remained robust throughout 2020, according to Morguard’s new Canadian Economic Outlook and Market Fundamentals Report. Meanwhile, sales of retail and office property softened as a result of heightened sector uncertainty.

I

n the upcoming year, Morguard forecasts investors will continue to approach investments with caution while monitoring the national economic recovery.

“The outperformance of industrial and multi-suite residential assets was driven in part by relatively stable rental fundamentals, boosted by demand for warehouse and logistics space and government transfer payments to renter households, respectively.” said Keith Reading, Director, Research at

Morguard. “Investors will continue to tread carefully with regard to acquisitions in 2021, given a heightened level of uncertainty surrounding the economic outlook.”

Despite the uncertainty surrounding the effects of COVID-19, investor confidence in the multi-suite residential segment was maintained, resulting in the segment’s healthy investment activity levels following the trend seen over the past several years. Over $3.9 billion in transaction volume

Q1 2021 New & Notable Transactions Address

City

# of Units

Sale Price (Millions)

Sale Price/Unit

Purchaser

1.

41 Roehampton Ave (50% interest)

Toronto

466

$150.8

$647,267

Woodbourne Capital

2.

T4055 Decarie Blvd

Montreal

64

$10.1 M

$157,422

Groupe Canstar

3.

RAAMCO Greater Montreal Portfolio

Montreal

2,242

$300.0 M

$133,809

Banvest Inc.

4.

Greater Vancouver Portfolio

Vancouver

614

$292.5 M

$476,384

InterRent REIT/Crestpoint

5.

DMS Portfolio — 550 Jarvis St, 108 Isabella St, 2335

Toronto

394

$135.0 M

$342,640

Park Property Mgt.

8 | Canadian Apartment | Part of the REMI Network |

TRANSACTIONS >>

was reported during the first six months of 2020, comparable to the record-high $4.0 billion in sales tallied in the first six months of 2019.

A reduction in rental demand resulted in increased vacancy compared with the prepandemic record lows reported in several cities and submarkets. The segment is expected to experience a steady recovery in tandem with the anticipation and distribution of a COVID-19 vaccine that will ease restrictions for physical distancing, and as a result, boost rental demand.

Other commercial real estate sectors The industrial segment showed a significant level of resilience in 2020. The national availability rate stood at a healthy 3.5 per cent by the end of September 2020, up slightly from the record low 2.9 per cent reported in September 2019.

Increased online shopping and demand for delivery and logistics services supported the segment’s outperformance

when compared with retail and office real estate.

Investment demand remained healthy during 2020, as institutional and private capital investment groups were attracted by the segment’s durability through the pandemic-driven economic downturn.

Looking ahead, strong e-commercerelated activity and a gradual economic recovery will continue to boost demand in the industrial segment in 2021.

Economic factors Efforts from the federal government and Canada’s central bank to support Canadian households and businesses during COVID-19 led to an economic rebound from the historic decline at the beginning of 2020. Meanwhile, the Bank of Canada implemented cuts to the overnight interest rate to offset the negative impacts of the pandemic on Canada’s businesses and consumers. These measures bolstered consumer confidence levels, resulting in

increased levels of spending during the summer and early fall of 2020.

By the end of September 2020, more than two-thirds (76 per cent) of the job losses suffered as a result of the pandemic lockdown had been recovered. The optimistic employment landscape in early fall was a by product of the reopening of non-essential businesses after the first wave of the pandemic. Despite this strengthening, Canada’s labour market remained weak in 2020 when compared to the prepandemic period. More than 700,000 people remained on layoff at the end of September and youth employment stood below pre-pandemic levels.

Canada’s labour market is expected to strengthen at a moderate pace in 2021.

The pace at which the country’s economy recovers will be relatively slow, given an increase in the number of COVID-19 infections and the targeted lockdowns that began in the fourth quarter of 2020.

ARE YOU CONTEMPLATING THE SALE OF YOUR APARTMENT PORTFOLIO/PROPERTY?

CBRE Limited, Real Estate Brokerage National Apartment Group – Toronto

Consider the following: • Who will represent your best interest?

• Who will give your property maximum exposure?

• Who will deliver the highest value for your property?

DAVID MONTRESSOR* Executive Vice President (416) 815-2332 david.montressor@cbre.com

With over 30 years of experience, tens of thousands of units sold, and hundreds of clients represented, we have consistently delivered superior results. Through our local and national coverage, we create maximum exposure, ensuring maximum value for your property.

Over $6.9B

Sales Volume

$391,000,000 QuadReal Portfolio - 8 Properties Halifax, NS 1,503 Suites - $260,146 Per Suite

Over 54,000

Suites Sold

$78,500,000 301 Dixon Road Toronto, ON 225 Units - $348,889 Per Suite

30 Years

* PROFESSIONAL REAL ESTATE CORPORATION

of Experience

$64,000,000 2801 Jane Street Toronto, ON 234 Suites - $273,504 Per Suite

$9,650,000 1911 Bayview Avenue Toronto, ON 22 Suites - $438,636 Per Suite

This disclaimer shall apply to CBRE Limited, Real Estate Brokerage, and to all other divisions of the Corporation (“CBRE”). The information set out herein, including, without limitation, any projections, images, opinions, assumptions and estimates obtained from third parties (the “Information”) has not been verified by CBRE, and CBRE does not represent, warrant or guarantee the accuracy, correctness and completeness of the Information. CBRE does not accept or assume any responsibility or liability, direct or consequential, for the Information or the recipient’s reliance upon the Information. The recipient of the Information should take such steps as the recipient may deem necessary to verify the Information prior to placing any reliance upon the Information. The Information may change and any property described in the Information may be withdrawn from the market at any time without notice or obligation to the recipient from CBRE. CBRE and the CBRE logo are the service marks of CBRE Limited and/or its affiliated or related companies in other countries. All other marks displayed on this document are the property of their respective owners. All Rights Reserved.

| www.REMInetwork.com | January/February 2021 | 9

Rental Market Overview CMHC releases 2020 data reflecting pressures of pandemic Canada’s overall vacancy rate increased from 2.0 per cent in 2019 to 3.2 per cent in 2020 for all bedroom types, according to the latest Rental Market Survey from CMHC.

N

ew this year, the survey also included rent arrears data resulting from the COVID-19 pandemic. For apartment structures with rental arrears, 32.5 per cent reported that their arrears rate remained similar to 2019, 58.3 per cent reported a higher rate, and 9.2 per cent reported a

10 | Canadian Apartment | Part of the REMI Network |

rent arrears rate lower than what it was last year.

The city of Toronto recorded the highest rate of rent arrears in Canada with 10.68 per cent of all units (34,858) reporting non-payment, representing $55 million in arrears. Given the pandemic disproportionately affected lower paid

CMHC REPORT >>

“The economic impact of the pandemic has significantly reduced rental demand. Lower international migration, fewer student renters and weaker employment conditions led to weaker inflows of new renters.”

many centres, we continue to see a need for more rental supply to ensure access to affordable housing.”

CMHC conducts the Rental Market Survey annually in October to gauge how socio-economic conditions, demographic trends and other factors impact Canada’s rental markets. Purpose-built structures with three or more rental units in urban areas with populations of more than 10,000 make up the data.

City-specific highlights: • The vacancy rate for Canada’s three largest cities (Toronto, Montréal and Vancouver) increased due to higher supply and lower demand.

• In British Columbia, vacancy rate increases were seen in Vancouver (2.6%) and Victoria (2.2%) while Kelowna’s (2.1%) vacancy rate decreased. workers in the hospitality and service sectors, these numbers are reflective of a larger share of the population in Toronto with workers in these industries.

In terms of monthly rent, the national average two-bedroom rent across Canada’s urban centres increased by 3.6 per cent to $1,165.

“The vacancy rate for purposebuilt rental apartments in Canada’s CMAs increased in 2020,” said Bob Dugan, CMHC’s chief economist. “The economic impact of the pandemic has significantly reduced rental demand.

Lower international migration, fewer student renters and weaker employment conditions led to weaker inflows of new renters. While vacancy rates increased in

• In Alberta and Manitoba, vacancy rates increased in Edmonton (7.2%), Calgary (6.6%), Lethbridge (5.6%) and Winnipeg (3.8%).

In Saskatchewan, Regina (7.5%) and Saskatoon (5.9%) saw slight decreases in vacancy rate.

• In Toronto (3.4%), the vacancy rate increased due to the economic fallout of the COVID-19 pandemic. This led to the average vacancy rate in the GTA reaching a 14-year high. This can also be explained by job losses in the service and hospitality sectors, which tend to pay lower wages and employ younger workers—key characteristics of typical renter households.

• In Ontario, vacancy rates increased in Thunder Bay (4.1%), Ottawa (3.9%), Windsor (3.6%), London (3.4%), Kingston (3.2%), St. Catharines-Niagara (2.7%), Peterborough (2.6%) and Greater Sudbury (2.5%).

• Vacancy rates decreased in Hamilton (3.5%) and Barrie (2.1%). In Belleville (3.0%), Brantford (2.2%) and Guelph (2.2%), vacancy rates remained stable.

No changes occurred in KitchenerCambridge-Waterloo (2.1%) and Oshawa (2.3%).

• Montréal’s (2.7%) vacancy rate increased. A decrease in net international migration, the absence of in-person university courses because of COVID-19 and the return to the long-term rental market of tourist-oriented short-term rental units, all contributed to vacancy rate increases.

• Other Québec CMAs saw decreased rates — notably in Saguenay (2.8%), Sherbrooke (1.3%) and Trois-Rivières (1.3%).

• In Eastern Canada, St. John’s (7.5%), Charlottetown (2.7%), Moncton (2.8%) and Halifax (1.9%) saw their vacancy rate increase while it remained stable in Saint John (3.1%).

• Average rents for the purpose-built rental market: • Nationally, average rents across urban centres increased by 3.6% for a twobedroom apartment between October 2019 and October 2020. | www.REMInetwork.com | January/February 2021 | 11

CMHC REPORT >>

• The average rent for a two-bedroom apartment increased in Windsor (8.7%), Barrie (8.0%), Belleville (6.3%), London (6.8%), St. Catharines-Niagara (6.1%), Hamilton (5.0%), Guelph (4.8%), Peterborough (5.3%), Brantford (5.3%), Ottawa (5.2%), Moncton (4.7%), Oshawa (4.6%), Toronto (4.5%), Halifax (4.2%) and Kitchener-CambridgeWaterloo (4.0%).

• The average two-bedroom apartment rent was highest in Vancouver ($1,792), Toronto ($1,635), Ottawa ($1,517), Victoria ($1,507), Barrie ($1,393), Kelowna ($1,391), Guelph ($1,356), Oshawa ($1,352), Kingston ($1,327), Calgary ($1,323), Edmonton ($1,272), Winnipeg ($1,262), and Halifax ($1,255).

Digging deeper into rent arrears data: • Among Canada’s urban centres, 6.11% (or 116,929 apartment units) were in arrears out of a total universe of 1,912,290 units. This represented approximately $150 million in total

rent in arrears or 0.59% of total expected rent. This small proportion of rent (0.59%) relative to units (6.11%) suggests that primarily apartment units with lower rents were in arrears.

• The Toronto CMA recorded the highest rate of rent arrears (0.92%) in Canada with 10.68% of all units (34,858) reporting arrears, representing $55 million in total rent in arrears.

• Among all provinces, Ontario posted the highest arrears rate in Canada, with 10.18% of apartment units and 0.81% of rent. This represented approximately $87 million in arrears as of October 2020.

Highlights for secondary rental condominium apartment market: • The average vacancy rate for rental

condominium apartments across 17 surveyed centres increased from 1.0% from 1.5%.

• Victoria (0.3%), Hamilton (0.3%), London (0.3%), Ottawa (0.3%), Vancouver (0.6%), Kelowna (0.6%) and Halifax (0.9%) reported vacancy rates below the national average.

• Calgary (1.6%), Toronto (1.7%), Winnipeg (1.7%), Saskatoon (1.8%), Edmonton (2.0%) Montréal (2.0%), Québec (3.2%) and Regina (5.0%) reported vacancy rates above the national average.

• The national average two-bedroom condominium apartment rent increased to $1,663 from $1,577. Rates were highest in Toronto ($2,440), Victoria ($2,223), Vancouver ($2,058) and Hamilton ($1,947).

CMHC is Canada’s authority on housing. For more information, follow them on Twitter, YouTube, LinkedIn, Facebook and Instagram.

A premier real estate services company in Canada DMS Property Management is one of Canada’s leading apartment managers with a portfolio of over 20,000 units

www.dmsproperty.com 12 | Canadian Apartment | Part of the REMI Network |

416-736-2524

Find ongoing savings with energy-efficient upgrades Free in-suite incentives: • Low-flow showerheads • Heat reflector panels

Free expert help, from start to finish

We provide up to $200,000* in incentives to help affordable housing providers and eligible market-rate housing providers with low-income tenants in Ontario upgrade to high-efficiency equipment. Get up to $8,000 for an energy assessment to uncover savings in your building. Start today by contacting an Energy Solutions Advisor for free, expert help.

What equipment is eligible?

Boilers

Water heaters

Control systems

Make-up air units

ERVs and HRVs

Custom solutions

Lasting benefits

Reduce energy consumption and greenhouse gas emissions.

Lower ongoing operating costs mean increased reserve for other improvements.

Enhance comfort and well-being for residents.

enbridgegas.com/affordable Connect with an Advisor.

1-866-844-9994 energyservices@enbridge.com

© 2020 Enbridge Gas Inc. All rights reserved. * HST is not applicable and will not be added to incentive payments. All incentive offers are available to Enbridge Gas Inc. customers, including those formerly served by Union Gas Ltd. Terms and conditions apply. Visit website for details.

SPONSORED CONTENT

GETTING CREATIVE WITH RENT COLLECTION Using technology and innovative thinking to support Canada's landlords These are stressful times for landlords. While the job may call for collecting rent, a tough economy and pandemic measures have made it harder for most to make good on this responsibility.

For many, pursuing eviction is an unwelcome option. Landlords already have a lot to worry about, be it lease audits, back-office accounting, budgeting, and forecasting. As such, they need to find creative ways to keep finances strong while maintaining positive tenant relations.

Finding those creative solutions is part of what drives Akan Thurairajah and his team at Assetsoft, a global technology consulting firm with headquarters in Markham, Ontario, that offers most property real estate management solutions, including lease audits and back-office accounting, to its clientele. One of the core areas of focus is to ensure

property management clients can leverage technology to keep rental income flowing, and Thurairajah has a few ideas for 2021.

"It's in everyone's best interest to find ways to make the rental payment process easier and more consistent. This is especially true now when a majority of tenants are having a more difficult time making those payments and landlords don't want to take extreme actions," says Thurairajah.

"Fortunately, there's a lot you can do with today's technology and platforms like Yardi Voyager to encourage consistent, on-time rental payments."

GETTING CREATIVE There are several strategies that Assetsoft is exploring to help landlords collect rent. For example, one is taking a cue from existing "loyalty programs"

SPONSORED CONTENT point system, and they're ready to start the program"," he says, adding, "This is one solution that we can do for landlords within a week."

No doubt, incentivizing tenants is always a better option. To that end, Assetsoft has also been in contact with the credit score reporting agencies to explore the possibility of using rental histories to help tenants build their credit scores.

"Let's say a newcomer to Canada is renting a place, and they don't have a credit history. Whenever they paid their rent on time, the system would send a report to the credit bureau that would help them build that credit history", suggests Thurairajah.

Reversely, tenants that don't pay on time could also be encouraged to get back on track if they understood that their credit history might be affected.

"This is just one of the ideas we're looking at to encourage tenants and give landlords that extra bit of support to do their job," adds Thurairajah.

TECH-SAVVY SOLUTIONS Technology has a part to play in incentivizing tenants. At the same time, there are strategies for using property management platforms to help keep finances healthy.

For example, setting up easier and more automatic payment systems can make rent collection less of a monthly headache. This can include promoting pre-authorized payments and electronic fund transfers (EFTs), or even setting up automated rental notices and payment options over the phone.

Similarly, changes can be implemented in property management systems like Yardi Voyager that automatically send out the required forms to late tenants who are late with their rent.

"In Ontario, you're supposed to issue a form N4, which is a Notice of Termination for Non-Payment of Rent, but what happens is that landlords are very busy and forget to send that out," notes Thurairajah.

"Using Yardi software, we can implement an automatic program that handles that entire process."

FINDING HELP While most landlords will need regular property management solutions, from property onboarding services to lease abstraction, it's time to look for creative solutions for rent collection. After all, everyone wins when tenants make rent.

"There are innovative solutions out there, whether it's through Yardi or some other piece of technology. Our job is to help clients recognize these opportunities, understand which would work best in their building, and take the first steps," says Thurairajah.

The Assetsoft team encourages any questions and inquiries. Email them at learnmore@assetsoftbiz or visit their website at www.Assetsoft.biz.

to set up an incentive system whereby tenants are awarded points for paying on time and through preferable methods.

"It could be a situation where a tenant earns five points for making an on-time payment, another 10 for doing so by pre-authorized, and maybe more for making those payments consistently throughout the year"," he explains.

"Those points could then be redeemed for a dollar amount through a network of Canadian vendors, like restaurants, gift cards, and other rewards."

Establishing a rent payment loyalty program is more than an idea for Thurairajah and his team. The firm has already been in talks with a reputed rewards point organization and is ready to help clients make it happen.

"We've already worked out the details, and they have the vendor rewards network. All we would need to do is connect the client's Yardi system to this

COVER STORY >>

INVESTING IN AGING RESID TOWERS

COVER STORY >>

N CANADA’S DENTIAL Pandemic underscores urgency for critical building upgrades

By Erin Ruddy

Aging residential towers are the backbone of the rental stock in Canada. Peppered throughout our cities and suburbs, these mainstay buildings are home to hundreds of thousands of households with modest and low incomes, including a large portion of the frontline workers who’ve been disproportionately affected by COVID-19.

| www.REMInetwork.com | January/February 2021 | 17

COVER STORY >>

I

n Toronto, over 500,000 residents currently occupy the 1,189 buildings commonly known as “towers-in-the-park.” These products of the 60s and 70s typically share the same physical attributes, like rectangular concrete frames, repeating balconies, and large open spaces that set them well back from sidewalks and roads.

Long before the 2020 pandemic reared its ugly head, concern was brewing over the lack of investment going into this essential affordable housing stock. A recent report by the Urban Land Institute points to high greenhouse gas emission footprints, low resilience, susceptibility to catastrophic system failures, poor housing quality, and an increasing concentration of “vertical poverty” as some of the major challenges facing building owners and the city alike.

Jim Heid, FASLA Founding Partner and chair of the Toronto Advisory Services, says upgrades for Toronto’s aging slab towers have surpassed the critical point. “There were readily evident life safety risks created by the current state of many of the buildings,” he says. “What the pandemic did was put another lens — health risks — on the urgent need for upgrades. As highly dense living environments with substandard ventilation and reliance on small elevators, the towers and many older multifamily properties risk

losing property value as people see a new kind of risk that they might not have thought about before.”

Mission critical in a post-pandemic world With lower-income residents making up a significant portion of the city’s frontline workers, the pandemic has underscored the need to drive investment in these sub-standard rental towers that so many families and individuals call home.

“Building upgrades have always been mission critical,” says Brad Dockser, panelist at the Toronto ASP event and Chief Executive Officer and Co-founder at Green Generation in Bethesda, Maryland. “However, the pandemic has served as a catalyst for accelerating the focus on building upgrades and making buildings greener. Now there is a new bar. What owners should have already been doing is developing long-term energy plans to not only meet resident needs, but to drive strategic value from assets and create a compliance path for existing regulatory requirements.”

Having reached or exceeded the 35-year mark, it’s no surprise that a significant number of these towers are now plagued with serious

Tower Resilience and Livability

With climate change triggering a rise in extreme weather events, Canada is experiencing more heat waves, floods and power outages than ever before. The lack of investment has meant that residents in aging rental towers are often susceptible to a variety of risks and disruptions.

• Elevator breakdowns are so common that the city funds and staffs a full-time fire department unit to extricate residents from upper floors when they are in need of medical care.

• During winter power outages, indoor temperatures can rapidly drop to inadequate levels.

• Flooding during extreme rain events can result in system failures due to power outages and basement floods.

• A lack of central air conditioning in most buildings leaves residents, especially the elderly, vulnerable to heat waves. Window units also have been recognized as a safety problem due to fall risks. This means residents are unable to control the temperature within their units, which can exacerbate health issues.

• Old ventilation systems can lead to significant air quality issues, which can cause adverse health effects among vulnerable residents.

• Mould issues due to plumbing and water penetration issues are also known to have adverse health effects.

18 | Canadian Apartment | Part of the REMI Network |

COVER STORY >>

Support for Tower Renewal To build public support for the Tower Renewal Program and the political will to see it implemented aggressively, the mission and vision of these deep retrofits needs to be clear. They include: • Creating a more resilient asset that will be safe and viable into the future; • Improving the resident’s overall quality of life; • Enhancing community resilience; • Enhancing asset value over time while maintaining affordability; • Reducing public expenses (e.g., health, emergency, temporary shelter, and fire); and • Reducing social costs such as lost school days, workdays, and rising inequality.

Building Envelope Repairs Balcony Modernization Parking Structure Rehabilitation

© DAVROC & ASSOCIATES LTD.

problems. In addition to original heating systems and inefficient windows, many have no backup power — meaning key systems like heating, water, elevators, and lighting would not work in the event of a failure. Meanwhile, a whopping 94 per cent do not have central air conditioning, leading to extremely unhealthy indoor air temperatures throughout the summer months.

According to Heid, the main barrier preventing building owners from completing the necessary upgrades is the same reason regardless of property type: a short-term view of trying to minimize costs and maximize returns quickly versus looking long term at how an investment creates more value.

But Heid also acknowledges that the problem cannot be solved by property managers and owners alone. “There needs to be creativity at the regulatory level,” he says. “More assistance at the funding level and more pilot projects using social housing as a subsidized proving ground to test new systems and ideas, which can be adopted and brought to scale economically by the private sector.”

Furthermore, Dockser adds that while the vast majority of building owners understand the importance of making upgrades and having a comprehensive energy plan, they often don’t know where to begin.

“It’s vital for owners to engage with strategic partners that have the technical expertise needed to turn a vision into an actionable plan in terms of timing, costs, technology, etc.,” he says. “Even though an on-site engineering team may have deep familiarity with the building, they may not have the insight into other aspects, like rebate programs or energy modeling.

Comprehensive, end-to-end partners with

Roof Assessment & Replacement Window Upgrades Site Improvements Interior Upgrades New Amenities

.

Asset Transformation Consulting Engineers Project Managers Materials Testing & Inspection

DAVROC & ASSO C I ATE S L TD.

2051 Williams Parkway, Units 20 & 21 Brampton, Ontario L6S 5T4 t (905) 792-7792

DAVROC. CO M

| www.REMInetwork.com | January/February 2021 | 19

COVER STORY >>

“As highly dense living environments with substandard ventilation and reliance on small elevators, the towers and many older multifamily properties risk losing property value as people see a new kind of risk that they might not have thought about before.” deep knowledge and experience can help bring a global perspective to local projects and enable owners to plan for the long term.”

Getting the ball rolling The first step toward revitalizing the towers is an understanding of the far-reaching benefits. For building owners, these include reduced regular maintenance, lower rate of tenant turnover, less risk of litigation and code violation, better quality tenants and the potential for premium pricing. Residents, meanwhile, benefit from improved comfort, safety and satisfaction, leading to a better quality of life.

Communities and cities reap the rewards of superior housing stock that meets today’s bar.

Dockser advises residential building owners to engage with their teams and select strategic partners to help critically review their assets. “Trusted partners serve to help owners better understand how to develop the energy plan, including technology

selection, energy modeling, financing, and communicating with stakeholders,” he says. “With Prime Minister Trudeau’s plans for achieving net-zero emissions in Canada by 2050, it’s critical that owners familiarize themselves with incentives at both national and provincial levels and understand the various capital market innovations and financing schemes available to them.”

“Audit, audit, audit,” adds Heid. “It’s hard to effectively evaluate what is needed, the potential return on investment, and the risk of loss in terms of both tenants and property value if you cannot see the entire picture. Evaluate energy systems, life safety matters, livability functions and risks presented to personal health. Rank the severity of the problem and look for creative solutions.

Looking holistically can often lead to stacked benefits, where one change can resolve two or three issues at once. But if you don’t know all the issues you might not know how to optimize a specific investment to its highest return.”

MI PROPERTY PORTAL All-In-One Propertty Management Software

ONLY $0.81

Are you using multiple software to manage your property management business? Be more efficient and cost-effective with Mi Property Portal.

Try it for FREE. For Canadian Property Managers Built per Canadian Regulation No Contract. Pay as You Grow

unit/month

www.mipropertyportal.com 20 | Canadian Apartment | Part of the REMI Network |

Knowledge looks great on you High level decision makers and influencers depend on us to be their trusted information source within the Canadian Real Estate Management Industry

Canada’s Most Widely Read Condominium Magazine

F O R B U I L D I N G O W N E R S , A S S E T A N D P R O P E RT Y M A N A G E R S

Apartment

September 2019 • Vol. 34 #4

CANADIAN

SEPTEMBER 2018

SERVING THE FACILIT Y CLE ANING & MAINTENANCE INDUSTRY

JUNE 2019

VOLUME 16 / NUMBER 4 / SEPTEMBER/OCTOBER 2019

VOL. 34 NO. 2 • JUNE 2019

PRODUCTIVE

OUTSOURCING

ENERGY

COMPACT PORTFOLIOS

BANK OF CANADA’S HQ

� NUISANCE ANIMALS: KEEPING RACCOONS AT BAY

COMMON AREA RENOS

MODERNIZATION MEETS PRESERVATION

HUMAN CENTRIC

LIGHTING

Publication Agreement #40063056

� GREEN ROOFS: SUSTAINABLE SHELTERS FOR PESTS?

ON THE LEVEL

PA R T O F T H E

P A R T

PA R T O F T H E

PA R T O F T H E

PA R T O F T H E

O F

T H E

P A R T

O F

T H E

P A R T

O F

T H E

P A R T

O F

PA R T O F T H E

PA R T O F T H E

P A R T

O F

T H E

+

Upgrading the resident experience

FOCUS ON LIGHTING

Canadian Publications Mail Product Sales Agreement No. 40063056

P A R T

O F

T H E

P A R T

O F

CREDIT

T H E

P A R T

O F

T H E

TRENDS

Leverage our award-winning insight remisubscribe.com Apar Apartment CANADIAN

VOLUME 16 / N NUMBER UMBER 2 / JUNE 2019

> SOCIAL MEDIA COLUMN Sponsored by MediaEdge

WHO'S WHO 2019

June 2018 • Vol. 33 #2

Costa advised that he no longer wished to occupy his role as president. The emergency meeting took place at the defendant’s (MTCC 1292’s) premises.

At the emergency meeting, the plaintiff and Mr. Da Costa entered into a heated argument, which led Mr. Da Costa to “lose it” and strike the plaintiff on the head with a chair. Mr. Da Costa was charged by the police and received a conditional discharge for assault with a weapon. iff commen The plaintiff commenced a civil action against Mr. Da Costa fo for his use of force as well as MTCC TCC 1292 for fo failing to ensure her safety and nd failing to employ security meet measures at board meetings.

MTCC 1292 brought a motion summary judgment otion for su to dismiss the plaintiff’s plaintiff’ claim against it nly opposed by Mr. Da Costa which was only given his crossclaim MTCC 1292 ossclaim against ag on and indemnity. inde for contribution

SPONSORED BY:

F O R B UI LDIN G O WNERS , A S SE T AND PRO PERTY M A NAG ER S

BALANCING THE BOOKS Will new cost pressures force corporations to revise their budgets this year?

AL EDG THE DIGITAL EDGE INNOVATIVE INN IN NO OV VA V ATIVE A TIVE WAYS WA W AY A YSS TO Y TO FILL FILL SUITES SUITES SUIT ES FASTER COMPETITIVE VOL. 34 NO. 3 • AUGUST 2019

P A R T

O F

their premises reasonably safe for those who enter it. But what about when an individual commits assault while at one of these meetings? Should the occupier or organizer of the

T H E

INCLUSIONARY

ZONING

board meeting be liable for failing to ensure the safety and security of those lawfully on the premises?

Publication Agreement #40063056

T H E

In Omotayo v. Da Costa, 2018, the defendant occupier, Metro Toronto Condominium Corporation 1292 (MTCC 1292), was successful in dismissing the plaintiff’s claim and the assailant’s crossclaim when a member in attendance at a condominium board meeting struck another meeting attendee with a chair.

Justice Nishikawa found that the duty the condominium corporation owed to the plaintiff did not include preventing an assault that occurred during their condominium board meeting.

Facts of the case T he plaintif f, J ac queline O mot ayo, was a resident and former chair of the condominium corporation. The defendant, Jose Da Costa, was also a resident and former president of the condominium corporation. An emergency board meeting was held on Oct. 4, 2011, to discuss the future organization of the board as Ms. Omotayo had recently been removed from her position as chair and Mr. Da

By Steven Chester

SERVING THE FACILIT Y CLE ANING & MAINTENANCE INDUSTRY

Let’s face it, we all want our businesses to be social media rock stars, and we know it ain’t easy.

It’s becoming more prevalent that some of the most popular social media platforms have been infiltrated by those who game the system.

This includes those that buy fake followers and “likes” in order to create the illusion that their social media profile is more popular than it is.

These fake followers are predominantly bots – accounts run by software designed to look and act like real people.

APRIL/MAY 2017

New services are also popping up that allow authentic social media accounts to become part of the bot game. By signing up for the service, the user authorizes their account to automatically like, follow and randomly comment on other users’ posts, and in turn they trade that fake engagement with other users. Sound harmless enough? The thing is you have no say in in the message your account is spreading or where it ends up.

CARING FOR FRAGILE FLOORS

Summary judgment motion udgment m positi MTCC took the position that its duty w is confined confine to the physical under the law condition of the premises premise and foreseeable e unforese risks, not the unforeseeable conduct of individuals in attendan attendance. Meanwhile, Mr. Da Costa that MTCC 1292’s a argued th s to having rules of conduct duty extends s, policies re for meetings, relating to abusive l an gu a g e, thre at s aan d intimid atin g d a duty to h behavior, and hire and supervise competent professional professionals to oversee its luding, if appropriate, ap business (including, security Cos further argued personnel). Mr. Da Costa ult was foreseeable fore that the assault given the M quarrelsome nature of MTCC 1292’s board nd a prior unrelated u meetings and incident involving the plaintiff and another member of MTCC 1292 wherein the police was 292 wherei called. ng her dec In reaching decision, Justice Nishikawa looked Coleiro v. Premier ooked to C s where summary sum Fitness Clubs judgment d in favour of the defendant was granted

MALL GERMS: TOP FIVE HOT SPOTS

Ask yourself this: What’s more important, having 50,000 cosmetic followers, or having

500 followers who are in your target market REMEDYING FOUR that actually want to hear from you?

COMMON CARPET As a consumer, it’s even simpler, as PROBLEMS deceptive tactics are easy to spot. If you’re using underhanded methods to promote your business, this can be viewed as a reflection of your product or service. Your integrity is at stake.

This is one of the more complex topics that can’t be fully covered in this space. As always, I invite you to stay social and continue the conversation on Twitter at @Chestergosocial where I’ll share a link to the full article.

SCENT OF

SUCCESS Steven Chester is the Digital Media Director of MediaEdge Communications. With 15 years’ experience in cross-platform communications, Steven helps companies expand their reach through social media and other digital initiatives. To contact him directly, email gosocial@mediaedge.ca.

www.REMInetwork.com | June 2018 15

14 CONDOBUSINESS | Part of the REMI Network

Whiterose Janitorial Services’ Albert Crimi savours more than three decades of achievements

PA R T O F T H E

PA R T O F T H E

CANADA $15.00

O F

BY DAVID ELMALEH AND GABRIELA CARACAS

shareholders, town hall, or any similar type of meeting) can attest to the tension that often arises. The law is clear that occupiers have a duty to maintain

Repositioning Challenges and Opportunities

INSURING YOUR

PROPERTY PA R T

PM#40063056

PM#40063056

4TH ANNUAL WHO’S WHO A ranking of the Canadian condo industry’s major players and portfolios

Anyone who has ever been to a board meeting (or a partners,

PA R T O F T H E

MARKET UPDATE

PART OF THE

+

Occupiers’ liability: A board meeting gone wrong

STANCE

plus

Want to stand out on social media?

Don’t fake it

P A R T

O F

T H E P A R T

TECH SECTOR SPINOFFS EVOLVING RETAIL APPETITE OPERATIONAL SUPPORT TALENT ENTICEMENT TACTICS PROPERTY TAX DEFINING DEMAND

O F

T H E

PM#40063056

Canada’s Most Widely Read Condominium Magazine

PA R T O F T H E

CO-LIVING

Ask the Expert: Budget-friendly renovations

PM#40063056

PA R T O F T H E

Q3 SALES ACTIVITY

T H E

RETROFIT INVESTMENT POLICY UNCERTAINTY PASSIVE HOUSE APPLICATIONS ESG GUIDANCE ELECTRICITY COST ALLOCATION INCENTIVE STRATEGIES

plus

PA R T O F T H E

CO-GENERATION

AT CARLETON U

CANADA $15.00

Stephanie Toomey’s honest approach to business key to building long-lasting employee, client relationships

FORWARD THINKING HOUSING SOLUTIONS FOR A BETTER TOMORROW

What to consider when refreshing public spaces

PM#40063056

� GET IN LINE WITH ONLINE TRAINING

PM#40063056

Sustainable Conductors for Cost Savings

REAL ESTATE MANAGEMENT INDUSTRY

P A R T

O F

T H E

FEATURE >>

The Waverley’s Iconic Roots New boutique rental community pays tribute to its musical past

Leasing has begun at Toronto’s newest boutique rental community, The Waverley, located at the corner of College and Spadina, just steps from Kensington Market, U of T’s St. George Campus, Little Italy, Hospital Row, and Chinatown.

O

nce the famed site of the iconic Silver Dollar Room and the Waverley Hotel, the new 166-unit rental property, developed by Fitzrovia Real Estate Inc., pays homage to its vibrant musical roots with a new venue adjacent to the residential lobby featuring the original bar, stage, murals, floor, and famous Silver Dollar Room sign that occupied the space for decades.

Meanwhile, the all-new rental building features what Fitzrovia describes as “thoughtfully curated common spaces” and premium suite finishes by award-winning interior designer DesignAgency. It also incorporates artistic contributions from Toronto-based artist Thrush Holmes and a custom lobby mural

by Bird-O (Jerry Rugg).

22 | Canadian Apartment | Part of the REMI Network |

Set to open April 2021, residents fresh out of a challenging pandemic year will have access to a 5 -star amenit y package that includes an integrated lobby lounge of fering Boxcar Social and Greenhouse Juice, a roof top infinit y pool, a penthouse commercial-grade fitness facilit y, 24/7 concierge ser vice, an immersive theatre, a fully equipped pet spa; and more.

“We’re extremely excited to launch our fifth Boxcar Social location at The Waverley,” said John Baker of Boxcar Social.

“It became clear, early in the process, that Fitzrovia was the perfect team to pay homage to the old, historic Waverley Hotel. Their passion for design and keen eye for detail have produced a beautiful and grand lobby space, reminiscent of

FEATURE >>

“Residents, guests and music lovers will get to relive the glory days of Toronto’s famed Silver Dollar Room, which operated from 1958 to 2017…”

boutique hotels from years gone by — the perfect backdrop to enjoy a quality espresso or wine.”

The former Silver Dollar Room Residents, guests and music lovers will get to relive the glory days of Toronto’s famed Silver Dollar Room, which operated from 1958 to 2017 and played host to some amazing talent, including Bobby Bland, Curley Bridges, Bob Dylan, Levon Helm, The Barenaked Ladies, and Blue Rodeo.

“The former Silver Dollar Room is a registered heritage landmark. Many of the venue’s original elements will be reincorporated into the new space, including the venue’s bar, stage, murals, terrazzo floor, and of course, the iconic Silver Dollar Room sign,” said Adrian Rocca, CEO of Fitzrovia. “We are thrilled to introduce The Waverley, a new boutique rental community.

Fitzrovia has teamed up with world-class designers, artists, and service providers to ensure Waverley residents enjoy a rental experience that has been truly reimagined.”

In suite, residents will enjoy “an elevated living experience” with free high-speed 1Gig internet, keyless smart lock entry, Wifi enabled NEST thermostats, 9-foot ceilings, quartz countertops and backsplashes, KitchenAid® stainless steel appliances, wall mounted medicine cabinets, under cabinet LED lighting, and in-suite laundry.

About Fitzrovia Real Estate Inc. Describing itself as a vertically integrated developer and asset manager of Class-A apartment buildings across the Greater Toronto Area, Fitzrovia partners with public institutions, pension plans and high net worth investors favouring long-term cash flow generating assets. In addition to focusing on traditional asset management, Fitzrovia focuses on “driving income through active lifestyle management and exceptional customer service offering residents unique lifestyle choices that redefine urban living.”

More about The Waverley can be found at: www.thewaverleylife.ca | www.REMInetwork.com | January/February 2021 | 23

Winter Property Maintenance Tips How to prevent cold-weather pest activity

by Alice Sinia, Ph.D.

Many people are under the impression that pest activity ceases when the temperatures drop; however, this is usually not the case. While some pests do sleep away the winter months, others tend to relocate to warm indoor spaces.

In addition to seeking out the warmth, pests need food, water and shelter to survive—and when they find it, they are likely to return season after season for more. The best way to keep them out is to not let them in the first place.

O

other types of openings are all it takes to invite them inside.

During the winter, don’t ease up on your pest management plan.

Be sure to monitor the building often and seal any visible cracks and gaps right away.

1. The perimeter and roof of the building These areas can offer many challenges when it comes to keeping pests out. Oftentimes, rodents, spiders, ants or cockroaches will find very small spaces to use as their entry-point: cracks in the building’s exterior, worn down door and window seals, damaged screens, doorways and windows, unscreened utility vents and

2. Community dumpsters This is one of the most common culprits for pest hotspots. Work with your pest management provider to ensure you have proper bait stations around your dumpster as these will help deter rodents and prevent it from becoming a buffet table. Once they find a suitable food source, it is much harder to control their populations. And now, as more people are working from home

ne of the best ways to prevent pests from discovering new hiding spots in the wintertime is to know where they are likely to hide throughout your apartment complex. Below are the top five hotspots known to attract pests as they seek shelter from the cold:

24 | Canadian Apartment | Part of the REMI Network |

FEATURE >> and cooking all their meals on the complex, these dumpsters can quickly fill up with gourmet meals for rodents. The best defense here is to make sure your trash (and recycling) is picked up regularly by your waste management company, at least once a week if not more often. If you have a valet service, you’ll want to remind residents not to leave trash sitting outside their doors, or gathered around a clogged or closed trash chute, longer than necessary.

3. Clubhouses, leasing offices or other common areas Your best defense in these areas is to increase sanitation routines, even if there are fewer visitors during the winter months (or due to COVID-19). Places where employees work and residents congregate, offer themselves as enticing spaces for pests.

Warm, sheltered, and often sprinkled in leftover crumbs and water (near minifridges, coffee pots or Keurig machines), these spaces are almost guaranteed to attract pests if not taken care of proactively. Clean up any food residue or beverage waste as soon as possible, and post sanitation rules to ensure residents know to do the same. Also, be sure to unplug coffee makers when not in use — cockroaches are attracted to the warmth and water left inside.

MOBILE FRIENDLY

4. Storage rooms Many apartment complexes offer on-site storage rooms for residents, as well as storage for maintenance purposes. As great as they are for storing unused items, rodents and spiders also love them as they are typically dark and seldom used. Cloth moths and carpet beetles are often found in storage spaces. You’ll want to advise residents to store materials in pest-proof containers and leave a gap around the wall of at least 18 inches. Staff and residents should be reminded to assess these spaces as well as their stored belongings at least once a month, especially when there’s a shift in temperatures. Remind them never to store food or trash in these spaces, and to shuffle around the entire perimeter of the room with a stick or broom to disturb any lurking pests.

5. Laundry rooms Communal laundry rooms, especially if they are on the lower floors of your complex, can become a hot spot for ants, rodents, oriental cockroaches, and crawling insects. Ensure no garbage is left in laundry rooms for extended periods of time, and machine drains are properly working to prevent pooling water. Make sure moisture does not collect or stand on the ground and monitor for increased pest activity in colder months.

Knowing where new pest hotspots may emerge around your apartment complex is the first step toward preventing them from making in a permanent vacation home. Remaining vigilant in monitoring for openings and signs of activity will help keep your residents happy, and property pest-free.

Alice Sinia, Ph.D. is quality assurance manager of regulatory/ lab Services for Orkin Canada focusing on government regulations pertaining to the pest control industry. For more information, email Alice Sinia at asinia@orkincanada.com or visit www.orkincanada.com.

VISIT US AT

CONTACT Michael Gnat Phone: 416-635-4835 Email: mgnat@midnorthern.com

| www.REMInetwork.com | January/February 2021 | 25

NEWSWORTHY >>

Industry Hot Topics Toronto vacancy rate reaches 50-year high: Q4 2020

A

ccording to a recent Urbanation report looking at newer purpose-built rental apartments in Toronto, the average vacancy rate rose to a 50-year high of 5.7 per cent in Q4-2020, up from 1.1 per cent in Q4-2019.

“The GTA rental market faced its toughest challenges to date in 2020 due to COVID-19,” said Shaun Hildebrand, President of Urbanation. “While rents have a long way to go before returning to their peak and supply will continue to be a headwind in the nearterm, some improvement can be expected in 2021 as vaccinations eventually lead to higher immigration and at least a partial return to the office for downtown workers and in-class learning for post-secondary students.”

In the 905 region, vacancy rates increased from 0.8 per cent in Q4-2019 to 2.0 per cent in Q4-2020. The still low vacancy rate in the 905 can be attributable to a relatively

limited amount of rental stock and increased population outflows from the City of Toronto.

The overall vacancy rate for the Greater Toronto Area was 4.6 per cent in Q4-2020, up from 1.0 per cent in Q4-2019.

Average rents for purpose-built units that became available for rent during Q4-2020 declined 10 per cent year-over-year in the City of Toronto to $2,337 in Q4-2020, with average per square foot rents down 6.2 per cent yearover-year to $3.49 psf. The annual decline in average rents in the 905 region was milder at 2.2 per cent, down to $2,139, with average per square rents increasing 1.0 per cent year-overyear to $2.46 psf.

For the GTA as a whole, average monthly rents were down 8.0 per cent year-over-year to $2,289, declining 3.9 per cent year-overyear on a per square foot basis to $3.19 psf.

When excluding new buildings with typically

higher rents that finished construction in 2020, average GTA purpose-built rents declined 8.9 per cent year-over-year (down 5.7 per cent on a per square foot basis). The reported decline in rents was additional to incentives. Urbanation found that the majority of rental buildings surveyed continued offering incentives in the fourth quarter to attract new tenants, which included up to two months’ free rent.

There were seven new purpose-built rental apartment buildings that reached completion in the GTA during 2020 (six in Toronto and one in Mississauga), totaling 1,699 units. By the end of the year, the new buildings were 44 per cent occupied on average, with rents averaging $2,480 ($3.82 psf). By comparison, 11 new buildings (nine in Toronto and two in the 905) totaling 3,563 units reached completion in 2019, which were 70 per cent occupied by the end of last year with rents that averaged $2,654 ($3.77 psf). Looking ahead to 2021, 18 rental projects (15 in Toronto and three in the 905) totaling 4,977 units are scheduled for completion in the GTA, representing the highest total since 1993.

Purpose-built rental construction slowed in 2020 following the onset of COVID-19. After reaching a multi-decade high of 13,764 units under construction in the GTA in Q1-2020, the number of rentals under construction declined to 12,521 units as of Q4-2020, which was slightly below the level in Q4-2019 (12,551 units) but the second highest year-end level in more than 30 years.

Ontario issues temporary pause on residential evictions

I

n January, the Ontario government issued an emergency order to temporarily pause the enforcement of residential evictions while the stay-at-home-orders were in force. It was the second time in less than a year that the province put a pause on residential evictions.

“By temporarily pausing residential evictions, we are ensuring that all Ontarians are able to stay home, stay safe, and save lives,” said Steve Clark, Minister of Municipal Affairs and Housing. “Our government will ensure that residential evictions continue to be paused for the remainder of the state of emergency, as long as it lasts.”

Since the onset of COVID-19, Ontario has introduced a number of measures to protect tenants and provide supports to those most 26 | Canadian Apartment | Part of the REMI Network |

affected by the pandemic, such as freezing rent so the vast majority of Ontario’s residential tenants will not see an increase this year. Changes to the Residential Tenancies Act also require the Landlord and Tenant Board to consider whether a landlord attempted to negotiate a repayment agreement, before resorting to an eviction for non-payment of rent during COVID-19.

“We’re encouraging landlords and tenants to work together — as they have been doing for the last several months — to ensure that we keep Ontarians safe,” said Minister Clark. “We want to remind tenants who can pay their rent that they must continue to do so, to the best of their abilities.”

NEWSWORTHY >>

Canada announces Temporary Rental Assistance funding

Montreal receives $56 million under Rapid Housing Initiative

O

A

n February 1, 2021, the Government of Canada announced it will be offering Temporary Rental Assistance funding of up to $15 million to assist former federally administered social housing projects whose operating agreements expired prior to April 1, 2016. The funding will support these housing organizations and provide affordable accommodation to persons and families of low income.

“Our government is taking all the necessary steps to ensure that every Canadian has a safe and affordable place to call home,” said the Hon. Ahmed Hussen, Minister of Families, Children and Social Development and Minister Responsible for CMHC. “Thanks to this new funding, we are able to lend a helping hand to families and individuals in need from coast to coast to coast. We remain committed to address housing need across Canada.”

Temporary Rental Assistance will be offered between April 1, 2021, and March 31, 2022, as exceptional one-time assistance. The application will be open between February 1st and March 1, 2021. Non-profit providers are invited to apply through the CHTC website, while the housing co-operatives are invited to apply through the Agency for Co-operative Housing‘s website.

“The Government of Canada is dedicated to helping Canadians have safe and affordable housing that meets their needs,” said Adam Vaughan, Minister Responsible for CMHC. “These investments will make a real difference in the lives of many families and individuals across the country and right here in Ontario.

Community housing plays an invaluable role. It doesn’t just make housing more affordable. It gives families that stability they need to make ends meet and get ahead. It builds diverse communities. Stronger communities that benefit us all.”

s announced in January, the City of Montréal will receive $56.8 million in federal funding under the new Rapid Housing Initiative to support the completion of 12 projects, representing 263 housing units. The government of Quebec will also be funding the rent supplement for a 20-year period, ensuring that eligible renters will spend only 25 per cent of their income on housing.

“The pandemic has been particularly hard on the most vulnerable and on people experiencing homelessness,” said Hon. Pablo Rodriguez, Quebec Lieutenant, Leader of the Government in the House of Commons and Member of Parliament for Honoré-Mercier.

“Thanks to the co-operation between the governments of Canada and Quebec, Montréal will receive $56.8 million to rapidly create affordable housing. This federal investment is of great help to those Montréalers who need it most.”

The COVID-19 crisis has underscored just how essential affordable housing is, not only to the health and wellbeing of vulnerable households, but also to the economic recovery of cities across Quebec and Canada. Many cities are facing the devastating impacts of increasing homelessness and housing needs.

The housing projects funded under the Rapid Housing Initiative will therefore target those who are most vulnerable. The support may cover the costs of land acquisition, housing construction, or conversion or rehabilitation of existing buildings.

“The construction of social and affordable housing is essential to the development of the east and, especially, the County of Hochelaga,” said Soraya Martinez Ferrada, Member of Parliament for Hochelaga. “Urban neighbourhoods have glaring housing needs, and gentrification is a very real challenge. It is vital that we rapidly increase housing stock intended for the most vulnerable populations. Today’s announcement is very welcome news for the people and organizations of Hochelaga.”

“Housing is a priority for our government and today we are demonstrating that once again,” added Andrée Laforest, Minister of Municipal Affairs and Housing. “There will be 263 units in 12 housing projects ready for occupancy by the spring of 2022. In fact, our government is committing, for a 20-year period, financial support to eligible tenants through the rent supplement program. For more than two years, our government has been making every effort, particularly in the Montreal region, to increase the number of affordable housing units. The commitment we are making today represents an estimated amount of more than $23.5 million in the Major Cities Stream.”

Stonefortress_FE_Directory_2020_FINAL.pdf

1

2020-09-15

11:57 AM

Transformational Leadership Coaching and Business Consulting with expertise in the Property Management sector.

Principal - Bert Steenburgh, CPCC/ACC

647-407-6231 | bert@stonefortress.ca | www.stonefortress.ca

| www.REMInetwork.com | January/February 2021 | 27

INSURANCE >>

Enhancing the Resident Experience The value of reconfiguring unused space

by Andy Schwartze

Whenever someone complains about the inconveniences of this pandemic, it’s hard not to think about the generations before us — those who survived the Second World War; those who emerged from the First World War only to contend with the deadly Spanish Flu. A bit of masking and social distancing, combined with the casualness of working from home, is hardly in line with what our forefathers endured. No doubt they are amused as they watch us from wherever they are.

28 | Canadian Apartment | Part of the REMI Network |

INSURANCE >>

O

ne of the major challenges of this pandemic, at least for apartment owners and renters, has been keeping the monthly rent coming in during prolonged periods of lockdown and income loss. In large urban centres like Toronto, I have no doubt that renting households confined to small units have weathered some difficult times. Initially, there was a great deal of concern about rent defaults, but it turns out that the vast majority of tenants understood that rent defaulting carries serious long-term consequences. I have to applaud these tenants, as the outcome came as a surprise.

Of course, there have been a few hiccups, but in most cases, not to the level of endangering building ownership and management operations. In light of this positive result, many property managers have used the pandemic as an opportunity to redirect their focus on expanding in-building services.

While each rental building is different, almost every building has at least some unused space that can easily be reconfigured into a private amenity room. Exercise areas (indoor or outdoor), office and study rooms, games and movie lounges—there is no end to the possibilities. For the tenant, this can provide a quiet respite away from other family members, or even just a change of scenery.

Having somewhere to go outside the unit can be an effective alternative to walking out the door and heading off to some new location.

Being able to grab a good book and disappear for awhile can relieve a lot of pent-up tension.

As consumers, we measure everywhere we go, and every experience we have, by how much effort and creativity the service business or the retailer has expended. We rate our experiences in terms of how comfortable, enjoyable and affordable they were. Some of the best examples of enhanced residency, times can be found in the retirement home industry. The resident, while generally having a small, albeit well appointed living space, is given the ability to escape and enjoy numerous distractions in other parts of the building. This provides variety, a change of scenery, and the chance for residents to roam and interact outside the confining walls of their units.

While I would certainly not expect a residential apartment building to offer the same expansive services of a retirement community, perhaps the pandemic has given building owners a chance to

review and reconfigure unused space in an effective meaningful way.

As an insurance expert, let it be stated that the addition of diversionary enhancements

for tenants, within a building, would not imperil the validity or amend the cost of the owner’s insurance. But it might very well add nicely to tenant satisfaction and loyalty.

For insurance-related inquires contact me at andy@takecover.ca

CONSULTING ENGINEERS

MODERN IDEAS PROFESSIONAL SOLUTIONS Mechanical Electrical

Energy Audits

LEED

Services

- Boiler Replacement Design - Domestic Piping - Chiller Design - Emergency Generator Design - Fire Protection Upgrade & Design

- Maintenance Scheduling - Capital Planning Report / RFS - Building Audits - Project Mangement - Power & Lighting Design

416.250.7222 1700 Langstaff Rd. Ste 2002 www.me-eng.com info@me-eng.com Vaughan, Ontario L4K 3S3 | www.REMInetwork.com | January/February 2021 | 29

Smart Ideas

SIMPLE WAYS TO ENHANCE WINTER CURB APPEAL

Four tips for improving your apartment’s winter appearance, despite the pesky slush and snow: 1. Clear away snow and clutter Although fresh snow looks nice at first, it only takes a few hours before it turns dirty and becomes a slipping hazard.

Make sure walkways and paths are clear, free of ice and clutter, and safe for walking at all times.

3. Light it up The holidays are long gone, but that doesn’t mean you should pack up your exterior lights. Whether you choose to spot-light the landscaping or decorate your front pillars, lighting is a great way to highlight the prettiest features of your building.

2. Plant seasonal greens Cold-weather plants like evergreen trees and shrubs can add year-long ambiance to any front entrance. Other considerations include winter-flowering shrubs, such as jasmine and daphne, and early spring bulbs that will flower in late winter.

4. Keep the paint fresh and the carpets clean, always The condition of your paint says a lot about your upkeep. No matter what the season, make sure the paint is fresh, and the floors and mats are clean. This simple step can go a long way to attracting new tenants.

30 | Canadian Apartment | Part of the REMI Network |

Over 25 Years’ Experience in Renovating Apartments and Condominiums

General Renovations

Kitchen Renovations

Painting

Cleaning of Units

Plumbing *

Flooring

Bathroom Renovations

Electrical *

Fire and Flood Restoration

Custom Cabinetry

Drywall and Crown Molding

Fencing

* Use a Licenced Plumber and Licenced Electrician (ESA)

www.multitech2000.com

Municipal Licence No. T85-4186258

Your One Stop

SOURCE

HSBUILD.COM H&S Building Supplies Ltd. is one of Ontario’s premier maintenance supply wholesalers. We specialize in the multi-unit residential space; providing quality products, competitive prices, on time delivery and product knowledge second to none.

We carry over 14,000 products in stock, daily.

COMMERCIAL • MULTI-UNIT • RESIDENTIAL • INDUSTRIAL • INSTITUTIONAL