Canadian Apartment Magazine by MediaEdge

Apartment CANADIAN

VOLUME 14 / NUMBER 3 / JULY 2017

THE URBAN

EXPERIENCE

CREATING THE ULTIMATE VERTICAL COMMUNITY

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ENGAGING YOUR EMPLOYEES

FIRE SAFETY CHECKLIST THE MODERN LAUNDRY ROOM

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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

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EDITOR’S NOTE>>

Apartment CANADIAN

THE URBAN RENTER

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From rock-climbing walls and bowling lanes to catering kitchens and wine cellars, when it comes to residential amenities, the sky is virtually the limit. Even still, most new rental buildings in Canada are opting to stick with the tried and true: rooftop lounges, fitness centres, bike storage, theatre rooms and spas (for pets and their faithful humans). In this issue of Canadian Apartment, we take a peek inside some of the country’s newest apartment communities. Despite the plethora of top-notch features, what’s abundantly clear is that location is still the priority for urban renters who see the surrounding neighbourhood as the best amenity of all. Check out some of the year’s most celebrated new rental communities, beginning on page 20. In light of the horrific fire that destroyed London’s Grenfell Tower this past June, our feature story on page 34 provides a checklist for residential property managers on how to conduct a “Risk Assessment” and ensure emergency preparedness. After all, planning for the worst case scenario is the best way to ensure it never happens. On page 26, M&R Holding’s Randy Daiter provides some excellent tips for motivating and engaging your staff. By employing what he calls the “pulling” versus “pushing” method, Daiter asserts a happier, more productive team is guaranteed to be in your future. As usual, our issue features lots of newsworthy tips and transactions, and presents the latest hot topics that are all the buzz in the industry. If you have something to share in our next issue, be sure to email or Tweet us! Sincerely,

Editor

Erin Ruddy

Publisher

Mitchell Saltzman

Senior Designer

Annette Carlucci

Production Manager

Maria Siassina

Contributing Writers

aula Gasparro P Randy Daiter Bill Maginas Andy Schwartze

Director of Sales

Eric Harbottle

National Sales

Sean Foley Stephanie Philbin Melissa Valentini

Digital Media Director Steven Chester Circulation

Aashish Sharma For sales information call (416) 512-8186

Canadian Apartment Magazine is published six times a year by:

5255 Yonge St., Suite 1000, Toronto, Ontario M2N 6P4 E-mail: info@mediaedge.ca

President Kevin Brown Copyright 2017 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.

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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.

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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.

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Apartment CANADIAN

VOLUME 14 / NUMBER 3 / JULY 2017

FEATURE 16 Making a Clean Start The modern-day laundry room By Randy F. Radtke 34 Ensuring Occupant Safety A checklist for Property Managers By Bill Maginas

COLUMNS 8 Transactions Q2 Market Highlights By Erin Ruddy 12 CMHC Housing for Older Canadians By Paula Gasparro 14 Legislation New Rules for Short-Term Rentals By Michelle Ervine 26 Management How to Engage an Underperforming Staff By Randy Daiter 34 Newsworthy Industry Hot Topics 36 Insurance Labour Law Changes in Ontario By Andy Schwartze

COVER STORY

DEPARTMENTS

20 Creating the Comfort of Home A look at some of the top services and amenities offered in apartment communities today By Erin Ruddy

CANADIAN

Editorâ&#x20AC;&#x2122;s Note

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VOLUME 14 / NUMBER 3 / JULY 2017

The Alexander, located in Halifax

THE URBAN

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WHAT RENTERS WANT FROM THEIR APARTMENT BUILDINGS TODAY

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TRANSACTIONS >>

Q2 Market Highlights Supply of Assets Available for Purchase Continues to Fall Short of Capital Availability

The apartment market is holding strong as we enter Q3, with prime Canadian markets top-of-mind for investors, and healthy activity also reported in smaller urban centres. While out west, the Calgary and Edmonton rental markets remain relatively soft, with vacancy levels holding near quarter century highs, elsewhere low interest rates and easy access to debt and equity capital continue to be catalysts for acquisitions. “Development and future purchases are fairly common with new product being highly sought after,” says Keith Reading, Director of Research, Morguard. “Yields are holding at record lows for assets in prime locations, while the supply of assets available for purchase continues to fall short of capital availability.” Investment advisors and fund managers were active at the upper end of the transaction pricing scale with private capital remaining the dominant buyer category in the mid-to-low price range.

Notable Q2 transactions Address

City

#of Units

Sale Price (Millions)

Sale Price/Unit

Purchaser

190-200 Exbury Rd

Toronto

308

$65.7

$213,312

Azuria Group

2777 Kipling Ave

Toronto

325

$55.0

$169,231

Minto Properties

132 Berkeley St (50%)

Toronto

177

$26.9

$303,390

Oxford Properties

1042 Paisley Rd

Guelph

180

$55.9

$310,667

Starlight Investments

5999 Monkland Ave

Montreal

165

$46.4

$272,941

GWL Realty Advisors

Berkeley Manor

Vancouver

101

$26.3

$260,396

Prospero International

8 | Canadian Apartment | Part of the REMI Network |

A Push Towards Luxury Renting Starlight’s Unique Forward-Purchase Program Given the shortage of rental housing throughout Canada and the soaring demand for luxury rentals in most urban cores, Starlight has created a unique forward-purchase program to address the lack of supply. While the Ontario government recently implemented rent controls on new construction, initial lease up of properties is not under rent control—therefore, rents can be set at market rates at the owner’s discretion. By aligning pricing to the market conditions, the forward-purchase program becomes an attractive long term investment opportunity. “With worsening housing affordability and a growing number of renters seeking high-end, modern and larger apartment units, market conditions have allowed for limited construction of multi-family rental housing in several areas in major markets,” said Daniel Drimmer, CEO and President. “Starlight’s unique and visionary program not only addresses what renters seek but also creates a long term investment opportunity with attractive returns for investors.” To date, Starlight has completed forward-purchase transactions in excess of $300 million. Starlight has also built a robust pipeline of new high quality, purpose-built rental apartment buildings in Ontario at various stages of the development process. In the next 18 months, Starlight has firm commitments in place for another $200 million of new opportunities and another $100 million planned thereafter. How the program works In completing the initial lease up from construction via its in-house leasing team, Starlight is able to have control over the tenant base to create a desirable renter mix, thus minimizing vacancy downtime and managing incentives, while providing stable cash flow on a go-forward basis. Starlight is also able to control the design specifications prior to construction including: unit mix, common area design, amenity packages, in-suite finishes and building automation. An example of just such an asset is 140 Main Street West, a 321-unit building in the heart of downtown Hamilton. With this property, Starlight was able to get involved in the construction process with the developer and select the amenities and finishes that would appeal to renters seeking luxury apartments. In addition, Starlight was also able to commence pre-leasing of the property a few months prior to closing, through carefully designed model suites, allowing for tenants to move in on a staggered schedule thus reducing the exposure associated to lease up risk. The property is now Hamilton’s premiere rental address, with occupancy above 98% and units commanding rents well in excess of the area’s existing rental stock. For more information, visit: www.starlightinvest.com

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“You don’t want to deal with an inexperienced person recently transferred from another department.” Knowing what it takes to get the deal done Depending on the loan size, a borrower could potentially save tens of thousands of dollars in interest with a CMHC-insured mortgage, which typically offers lower rates. “But the lowest interest rate on its own is not the most important thing,” say Cook and Fleet. “The focus should be on the total cost of borrowing.” For instance, the cost of third-party reports, such as appraisals and environmental, engineering and structural

studies may vary by thousands of dollars depending on the lender: “Borrowers should request that their lender provide them with three quotes from approved third-party firms and disclose processing and closing fees. The lender’s legal fees should also be taken into consideration.”

reviews are required to approve the loan. He should also ask how quickly he can expect a letter of interest, a commitment letter and at what point he may lock in the rate in advance of funding. These are important questions to ask prior to selecting a lender.”

Greenwin’s Kevin Green says it speeds up the process considerably when the lender provides the borrower with a detailed checklist of what is required to get the deal done. Cook and Fleet say every lender has a different approval process.

For Green, the relationship with his lenders goes beyond transactions, valuations and discussions about roofs and boilers. His company is involved in providing social programs for families in some of Toronto’s more impoverished neighbourhoods, he says.

“The borrower should ask how long the process will take and how many credit

“We want to make it safe. We want kids staying in school and getting jobs.” First National has provided financial and moral support for these endeavours. “When we launch a social program, First National is there. If we open a centre, First National is there.” It means a lot, Green says.

Peter Cook and Robert Fleet are Assistant Vice presidents, Commercial Financing at First National Financial.

CMHC REPORT >>

Housing for older Canadians Factors Influencing Services and Amenities in Seniorsâ&#x20AC;&#x2122; Housing by Paula Gasparro A developer that decides to provide services and amenities to an older demographic must balance the need to remain competitive in the marketplace with the need to ensure that services and amenities are cost-effective and correspond to the actual demands of residents.

n mainstream housing developments, the range and extent of amenities built into a project at the time of construction are influenced in part by the desire to capture the interest of the purchaser or renter to â&#x20AC;&#x153;make the sale.â&#x20AC;? Developers of projects specifically targeted to seniors, on the other hand, are more likely to consider the inclusion of carefully chosen services or amenities with the expectation that these amenities will be used on a regular basis, either because residents need them or are willing to pay a premium for easy access to a particular amenity, or both. For this reason, it is important to analyze the costs and benefits of investing in services or amenities that require upfront investment in physical plant, such as central dining facilities and a 12 | Canadian Apartment | Part of the REMI Network |

kitchen early on in the planning stages of a project, as this decision affects not only the financial viability of the project but possibly ongoing operational expenses as well. In some cases, including flexible space in the plans that can be customized later on may be a wise investment, as it is more difficult to add amenity space after the project is built. Location, location, location Highly urban locations are more likely to have services and amenities available within walking distance or a short drive or bus ride away. For example, projects close to a community centre that offers fitness classes for seniors may need only a minimal investment in fitness facilities. Similarly, access to a local library where books and computer facilities are readily available

can reduce the need to provide room for such facilities within the project. The importance of providing amenity space is recognized by many public- and private-sector organizations in urban areas. An informal survey of library services across Canada suggests that libraries are increasingly being designed as multipurpose facilities with public rooms for holding classes, counselling services and other educational or cultural services. The same is true for places of worship that have shrinking congregations, which are redesigning certain spaces such as halls or committee rooms as multi-purpose rooms that can be booked by community organizations or service providers. Projects in more rural settings, however, are more likely to provide on-site amenities, given

the distances involved and the frequent lack of convenient public transportation. Moreover, they can make a larger footprint because of lower land values, although the choice of amenities to be included still requires careful assessment to ensure that the investment makes sense from both a fiscal and marketing perspective. Some developers are predicting that increasing numbers of older Canadians will prefer developments that offer amenities encompassing a lifestyle community to developments that depend on the amenities offered in the surrounding area, such as those in a shopping mall. Prospective residents may be more attracted to a project that offers its own wellness centre, cinema or theatre, several shops, walking trails, and parkland, as compared with a development in an urban area that has fewer amenities offered within the project. Characteristics of the target market Since older Canadians are a diverse group with a wide range of needs and expectations, it is necessary to accurately identify and understand the particular target market for a development. The first baby boomers in Canada will be retiring in the coming years and, in general, the needs and preferences of this group are very different from those of their parents. They are, on average, better educated, more active, healthier, more affluent and more sophisticated in their tastes. They want access to restaurants and entertainment venues and seek a “worry-free lifestyle” where they can travel without having to worry about home maintenance. If the development is targeted to the baby boom generation, the focus should be on convenience, recreation and lifestyle services and amenities Since baby boomers have high expectations for the range and quality of services and amenities, in some cases, they may prefer that the latter not be offered at all rather than accept something that is wanting or substandard. If the target market caters to an older clientele such as seniors 75 years and over, the services and amenities provided may focus more on in-home or on-site support services such as assistance with daily living activities and assistive technology such as emergency response systems. It is also important to consider that Canada is increasingly culturally diverse. About 30 per cent of the population 65 years and over consists of immigrants. Many immigrant seniors, particularly recent newcomers who represent 3 per cent of the immigrant population aged 65 years and older, have different interests, activities and preferences

compared with seniors who were born in Canada. Developers and potential project sponsors working in markets where a significant proportion of the senior population is immigrant or Aboriginal should pay extra attention to providing facilities that are culturally sensitive. Regardless of the target demographic, it is useful to take account of seniors’ preference to age in place. Even when targeting a younger market, developers should ensure that the services and amenities provided are flexible enough to respond to changing needs as residents age. Gaps in the community Market research should help identify services that are not available in the community, have long waiting lists or are expensive. In such cases, providing these services within a project potentially makes it more appealing to prospective residents. If the project is in an urban area where many services and amenities are available, providing higher quality services and amenities would be attractive to prospective residents, as they would not have to compete with the rest of the community to access these services. Additionally, the growing diversity of the population may provide an opportunity to offer services and amenities that are culturally, linguistically or spiritually relevant, but which are currently not being offered in the community. Affordability A key element of market research is identifying how much the selected demographic can afford to pay for services and amenities and how much they are prepared to pay. Affordability is very important to the success of a project. Older Canadians generally live on fixed incomes. Although many older Canadians choose to continue working past the traditional retirement age, they may not be willing to spend a large amount of money on services and amenities over and above their accommodation costs. Looking at the rates charged by competitors may give a good indication of market affordability, particularly if the competition is serving a similar group.

> SOCIAL MEDIA COLUMN Sponsored by MediaEdge

Convince your CEO to join social media By Steven Chester If your company’s leader is still resisting social media, they’re unfortunately not alone. But as businesses evolve and attempt to attract younger employees and clients, the results of a recent Ryerson University survey should be enlightening. The survey found that 53 per cent of the country’s top CEOs are on at least one social media platform, and only 16 per cent are using more than one. Despite the many benefits, fear remains a major factor. Stories of misuse and blunders abound daily; however a desire to remain positive can go a long way. Not surprisingly the bar to entry is quite low. According to the report: • While 45 per cent of CEOs surveyed have a LinkedIn account, only 50 per cent have a profile picture, and only 33 per cent have a biography. • Only seven per cent of Canadian CEOs in the top 100 have Twitter accounts. On average, CEOs followed just 65 users – showing a high level of disengagement with the outside world. • Seventeen per cent of CEOs studied have Facebook accounts. Nine of those accounts were publicly viewable, with 78 per cent of posts being personal in nature and only two per cent promoting their business. Active CEOs were sharing several different types of content on social media, including thought leadership, philanthropy, mentorship and governance – a great game plan to play it safe and still promote your company in a positive light. It’s time for business leaders to swim with the tide.

To take advantage of CMHC’s Mortgage Loan Insurance, contact Paula Gasparro, Manager, Business Development, Multi-Unit Mortgage Insurance at 416-250-2731 or via e-mail at pgasparr@cmhc.ca.

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 | July 2017 | 13

LEGISLATION >>

New Rules for Short-Term Rentals Proposed Regulations Could Help Boost Toronto’s Vacancy Rate

City of Toronto staff are proposing that short-term rentals be restricted to the home-sharing variety versus the commercial kind. In a report to executive committee issued in June, staff sketched out regulations that will likely see residential rentals of 28 consecutive days or less limited to primary homes. In other words, operators of short-term rentals must live in the unit they’re listing. Roughly 7,600 of the properties rented via Airbnb last year would meet this requirement, while 3,200 would not. Staff pointed out that the vacancy rate, which is at a 10-year low of 1.3 per cent, could rise considerably if just some of those 3,200 units were to become available in the long-term rental housing market. The proposed regulations would see the City’s zoning bylaws revised to pave the way for owners and tenants to provide these temporary accommodations in up to three bedrooms, a whole unit or legal secondary suites. A new “short-term rental” use would be permitted in residential buildings in lands zoned for mixed and residential uses. “It should be noted that short-term rentals were not previously defined in the city-wide zoning bylaw or other zoning bylaws, and therefore are currently not permitted,” states the report. In addition, operators of short-term rentals would be required to register with the City; comply with relevant laws, such as the Fire Code and noise bylaws; and give emergency contact information to guests. Registrations could be revoked for reasons including criminal activity at the rental property that results in convictions. The companies that facilitate short-term rentals, such as Airbnb, would be required to be licensed with the City. In addition, these companies would be accountable for dealing with problem operators and removing the listings of unregistered operators. They would also be obligated to convey information about City rules to operators, disclose data wiped of identifying details to the City on a quarterly basis, as well as data with details about operators on request by the City’s municipal licensing and standards division. 14 | Canadian Apartment | Part of the REMI Network |

Short-term rental companies and operators would pay licensing and registration fees so the City could recover the cost of administering and enforcing the regulations. Base licensing fees for companies that facilitate short-term rentals would fall in the $5,000 to $20,000 range, according to staff projections, with sliding licensing fees tied to a measure such as the number of listings on their websites. Annual registration fees for operators of short-term rentals would fall in the $40 to $150 range. The proposed regulations follow the explosion of short-term rentals in Toronto and reflect feedback from public consultations and stakeholder focus groups. The recommended rules are designed to diminish downsides of these temporary accommodations, such as building damage and loud parties, while retaining upsides, such as extra income for home owners. After hearing from more than three dozen speakers, executive committee voted to have staff consult the public on proposed licensing and regulations for short-term rentals in Toronto. A related zoning bylaw change, which would create a short-term rental use, will also be subject to community meetings. Executive committee also asked staff to recommend and solicit input on possible penalties for home-sharing operators and platforms that flout rules as well as ways to require proof of principal residence. Following community meetings and public consultations, city staff are expected to report back to the municipal licensing and standards committee on the proposed regulations for short-term rentals and to the planning and growth management committee on the accompanying zoning bylaw changes. This is due to happen before the end of the year.

MORE ATTRACTIVE FOR RESIDENTS. MORE RELIABLE FOR YOU. Upgrading your laundry equipment with all new Speed Queen® machines transforms your apartment building’s community laundry room from a simple convenience into an attractive amenity. Residents will enjoy user-friendly Quantum® Controls, which offer many convenient cycle and payment options. They’ll love innovative features like WashAlert™ with Service Alert, which allows them to access cycle status and machine availability online and receive email or text notifications when their wash or dry is complete. And while they’re enjoying the convenience of a Speed Queen laundry room, you can bank on minimal operating costs, reduced downtime through features like automatic service notification, and the support of a network of knowledgeable laundry service providers. Create an amenity for residents and reduce utility costs — visit speedqueen.com/SaveMoney.

Making a Clean Start Is it Time for a Laundry Room Makeover? by Randy F. Radtke

hile the Canadian multihousing market is starting to see some new construction projects, most of the apartments are from already available stock. This means property owners and management companies are largely faced with remodeling and refreshing the spaces they have to attract and retain residents. 16 | Canadian Apartment | Part of the REMI Network |

The name of the game here is turning seemingly simple spaces into areas that project an amenity value. From lobbies and co-working spaces, to outdoor patios and sitting areas, little tweaks to these elements can pay dividends in residents’ perceptions of the property. Another area of interest that can resonate with residents and prospective residents is the laundry room.

Changing perceptions Let’s be honest, for years the laundry room wasn’t exactly a place residents wanted to spend time. They were utilitarian spaces – a few washers and dryers, poor lighting, and maybe a folding table. Often they weren’t even all that clean and machines were frequently out of order. But this is changing. Property owners are seeing the potential in

CMHC FEATURE REPORT>> >>

led some property owners to re-evaluate their own laundry facilities, with an eye on keeping residents on-site and changing the perception of the common laundry room.

making laundry rooms more inviting. Part of this is through necessity. “I think part of what is driving new trends in multi-housing laundry rooms are some of the trends in laundromats today,” said Kate Holmes, central regional sales manager serving the Canadian market for Speed Queen laundry manufacturer, a world leader in commercial laundry equipment. “Laundromats today are increasingly professionally run, bright, and cater to helping customers take the chore out of laundry – getting them in and out fast,” she added. Laundromats are giving residents choices – in both machine capacities and cycle selections – as well as a warm, inviting “experience” (which millennials seek). This customer-centric focus can pull residents off-site to do their laundry. It also has

An eye on décor While there are still a wide range of approaches to laundry rooms in Canada, Susan Reynolds, director of business services for Coinamatic, a nationwide provider of laundry services for multi-housing in Canada, said property owners are definitely looking at the common area laundry room with a design eye. “We are seeing more trendy colours with rich wood finished cabinets…more of a homestyle look,” she said of the transition from a stark institutional appearance to a warmer feel. “The addition of TVs and Wi-Fi make it feel more like a common area,” she added. Along with that, those owners with a keen focus on the little details don’t want the same tired, old white signs for these warm spaces. “Building owners want signage that matches more closely with the room décor,” Reynolds said. Equipment trends Obviously, even the most beautifully decorated and inviting laundry room isn’t going to be a desired amenity unless the equipment installed delivers the features residents want. While generally residents want simple, intuitive controls to get them in and out fast without a steep learning curve, Reynolds said

they also want options. “The ability to select an extra wash or rinse has been great,” she said. Residents are also seeking greater options when it comes to payment systems. The advent of mobile payment services like Apple Pay are just one of the expectations they want to see make their way to the laundry room. “As a leader in this market, Speed Queen is quite focused on the need to give residents a variety of payment options,” said Craig Madson, national sales manager for Speed Queen multi-housing. “Gone are those days where residents needed to lug a bucket of change to the laundry room. Mobile solutions and the like in the laundry room are increasing resident satisfaction by delivering user convenience.” The equipment feature that resonates with property owners has been multi-level pricing. In years past, the vend price was a set amount. So even though hot and warm water actually cost more to offer because of the utility cost to heat the water, it was vended at the same price as cold. Today’s multi-level temperature pricing has created additional revenue opportunities and helped owners recoup that extra cost to heat water, while providing the end user more choices. Equipment durability and reliability are the must-haves as well. There’s no faster way to strip a laundry of its amenity value, then for residents to find out-of-order signs greeting them upon their arrival. | www.REMInetwork.com | July 2017 | 17

FEATURE >>

“even the most beautifully decorated and inviting laundry room isn’t going to be a desired amenity unless the equipment installed delivers the features residents want.”

ARE YOU CONTEMPLATING THE SALE OF YOUR APARTMENT PROPERTY? 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? With over 25 years 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.

$52,300,000 (180 Suites - $290,555 p/s) 2770 Aquitaine Avenue Mississauga, ON

$50,250,000 (264 Suites - $190,349 p/s) 1485 Williamsport Drive & 3480 Havenwood Drive, Mississauga, ON

$46,000,000 (152 Suites - $302,632 p/s) 111 Lawton Boulevard Toronto, ON

$22,750,000 (105 Suites - $216,667 p/s) 5 Rittenhouse Road Kitchener, ON

David Montressor* | Executive Vice President 416.815.2332 | david.montressor@cbre.com CBRE Limited, Real Estate Brokerage

Please visit our website: www.cbre.ca/nag-toronto

* Sales Representative This disclaimer shall apply to CBRE Limited, Real Estate Brokerage, and to all other divisions of the Corporation; to include all employees and independent contractors (“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.

Madson added that installing larger, multiload washer-extractors is another trend he has seen in multi-housing environments, as the additional capacity and high G-force extract cycle, which removes more water from loads and reduces drying times, helps them make short work of laundry. Technology helps Thinking about those wasted trips to the laundry room, technology is helping eliminate that for residents and keeping them more productive. Equipment manufacturers and laundry service providers are offering systems that network laundry equipment and can list (via a property TV channel or website) what equipment is in-use, available, or soon-to-be available. It can also be configured to send text message alerts when a resident’s cycle is close to being completed. “It’s wonderful and attention grabbing. As a laundry service provider, we like to see technology being leveraged,” Reynolds said. “It definitely has a cool factor for residents.” Overall experience The common laundry room is evolving and becoming a much warmer and inviting environment. Small things like utilizing trendy colours and matching signage can have farreaching impacts with residents and create a unique experience. Machine technology and systems are helping bring time savings and amenity value to the equation as well. The first step, however, in taking a laundry room to the next level is meeting with a qualified laundry service provider. They will be able to assess the available space and utilities, run through options, and offer design assistance. It’s important to select a provider who is committed to high-quality service. Checking references is always a good idea before committing to a provider. With a solid plan, reliable, well-featured equipment, and a quality laundry service provider in your corner, the property can offer an amenity to attract and retain residents.

Randy F. Radtke is global public relations manager at Alliance Laundry Systems, a world leader in manufacturing commercial laundry equipment. Visit www.alliancelaundry.com.

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2/2/2016 10:38:00 AM 2016-02-08 9:04 AM

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COVER STORY >>

CREATING THE COMFORT OF HOME by Erin Ruddy

20 | Canadian Apartment | Part of the REMI Network |

COVER STORY >>

From Lavish Lobbies to Outstanding Amenities, a Look Inside Some of Canada’s Newest Purpose-Built Rental Developments

Today’s generation of new apartment buildings looks nothing like its dated predecessors. Built to emulate high-end condominiums but with the services and amenities of upscale hotels, these extraordinary vertical communities boast beautiful designs and common spaces to die for. Here’s a look at some of the new, state-of-the art apartments emerging in cities all across Canada and a list of their featured service offerings. From East to West and top to bottom, apartment living today is anything but bland.

| www.REMInetwork.com | July 2017 | 21

COVER STORY >>

The Alexander

Location: Halifax Owner/Manager: Killam Apartment REIT Opening: October 2017

At 22 storeys, The Alexander is a brand new residential development located on Lower Water Street in downtown Halifax. A blend of the modern and historic with its ironstone base and soaring glass tower, The Alexander will provide residents with convenient access to the popular Brewery Market Square where on-site retailers abound. Building amenities include: a spacious 800+ square foot lobby; a common amenity room and boardroom; a 1,044 square foot fitness room with washrooms; a 11,920 square foot landscaped terrace and BBQ area; a common amenity room off landscaped terrace on 5th floor; underground parking for 228 with 100+ bicycle stalls and car wash bay; harbour views and a “pet friendly” facility for pets (under 40 pounds).

The Balmoral

Location: Ottawa Owner/Manager: Homestead Land Holdings Ltd. Opening: 2017

Ottawa’s newest luxury apartment, The Balmoral is ideally situated in the Sandy Hill neighbourhood overlooking the Rideau River. With its fully manicured grounds and stellar views, the expansive property offers two exercise facilities and a rooftop terrace with barbecues. The 10-storey building also boasts an indoor swimming pool and steam room, along with a luxurious fully-equipped social lounge, library, tiered theatre room, business centre, storage lockers, bicycle storage, and billiards room. Security features have also been given a lot of attention. Residents can enjoy individual floor access using a touchscreen elevator, as well as controlled access to underground parking, serviced by a car-wash.

Bridgewater

Location: North Vancouver Owner/Manager: Hollyburn Opened: 2016

Named 2017’s Rental Development of the Year by the Canadian Federation of Apartment Associations (CFAA) Bridgewater is North Vancouver’s first new rental high-rise in over 35 years. Constructed using select materials, trades, appliances and equipment with a strong consideration given to lifecycle costs, Bridgewater offers an incredible amenity package, including a resident lounge, fitness centre, dog wash station, and rooftop terrace. Other amenities include: community gardens, bicycle parking, a state-of-the-art fitness facility, bike storage, electric car charging stations, and more.

22 | Canadian Apartment | Part of the REMI Network |

COVER STORY >>

Roehampton

Location: Toronto Owner/Manager: KG Group Opened: 2015

KG Group’s new luxury rental community, located in midtown Toronto, took home the 2016 FRPO MAC Award for “Amenities Award of Excellence.” Ideally situated on Roehampton Avenue in the bustling Yonge & Eglinton neighbourhood, the 16-storey building is just a stone’s throw from the subway, local restaurants and a host of local amenities. New residents of the luxury suites are enjoying the condo-style amenity package, which includes a fully outfitted business centre, plush theatre and resident lounge with flat screen TV, fireplace and wet bar. At Club Hampton, a plethora of other leisure pursuits await. All Roehampton residents have access to a light-filled yoga/spinning studio, fitness centre with state-of-the-art weight and cardio equipment, and a stunning indoor pool that opens onto an outdoor terrace with sundeck.

A sophisticated new mid-rise in London, Ontario, Mosaik is located in a serene neighbourhood with direct access to parks, walking paths and bike trails. Beyond the high-end suite features, the building amenities include: underground parking, individual storage lockers, indoor bicycle storage, a stunning lobby with granite finishes, and pet-friendly services. Tenants who choose Mosaik also receive a free one-year membership to the fitness centre at Parc Centre, a state-of-the-art, independently owned and operated recreational complex. Just a short walk from Mosaik, Parc Centre Fitness is a professionally monitored fitness centre with a saltwater pool, common lounge, barbecue and a cinema room.

Mozaik Location: London, Ontario Owner/Manager: Old Oak Properties Opened: 2016

Old Oaks Properties announced it will be adding even more purpose-built rental to the city, with plans to move forward on another residential development (still unnamed) on Morgan Avenue near the intersection of Wonderland and Southdale roads. The complex will include a 14-storey tower with 161 units, a 12-storey tower with 113 units, and 14 townhouse units. Construction on the Morgan Avenue project should begin in the next 18 months.

| www.REMInetwork.com | July 2017 | 23

COVER STORY >>

HUMANITI, a new $200-million hotel-office-condo-multifamily development in Montreal, officially broke ground in early July. Once it opens in 2020, it will be a smart city within a city, complete with its own mobile app. The h-shaped HUMANITI will feature 300 rental units as part of the large, mixed-use community. The Montreal project comes at a time when the skyline is full of cranes and rising towers. The city is experiencing somewhat of a renaissance in its 375th year; tourism is booming and several infrastructure projects are in the works, including the Old Port of Montreal revitalization. HUMANITI is designed to promote the wellbeing of those who inhabit its spaces. When doors open, particularly with the multifamily component, it will be the first WELL-certified project in Quebec, and the first multifamily LEED-certified building in Montreal. Developers are currently targeting WELL, which measures a space’s impact on occupants’ health by looking at seven factors: air, water, nourishment, light, fitness, comfort and mind.

HUMANITI Location: Montreal Developers: Cogir Real Estate and Fonds immobilier de solidarité FTQ AtlasDoors_CAM_May_2017_FINAL.pdf 1 2017-05-23 Opening: 2020

Many features will reflect these concepts. For example, there will be physical installations on site for promoting activity, rooftop terraces with 11:46 AM a pool, relaxation areas and restaurants with healthy menus.

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MANAGEMENT >>

How to Engage an Underperforming Staff Motivational Tips for Fostering Employee Satisfaction by Randy Daiter

26 | Canadian Apartment | Part of the REMI Network |

ver wonder how many in your workforce are actively engaged in their jobs? Well, the statistics may astound you. A 2017 Gallup report showed that 51 per cent of today’s employees have essentially “checked out” as they go about their day-to-day duties. And it gets worse…an additional 16 per cent are actively disengaged—meaning not only are they uninterested in what they’re doing, but they actively distract and undermine the engagement of fellow employees. Combine those two groups and a staggering 67 per cent of your workforce is underperforming! That means a mere 33 per cent of the workforce actually enjoys their job. Why do they enjoy their jobs? Because they feel motivated, respected and valued. To this point, that same 2017 Gallup report revealed that only 21 per cent of employees strongly agreed that they were being managed in a way that motivated them to do outstanding work. If you’re a manager, you have a big challenge ahead of you. You need to figure out how to foster and cultivate a corporate culture that motivates people. After all, when we let our employees down, they in turn let our customers down, and that affects our business. “Pulling” instead of “pushing” Simply put, motivation is better achieved by “pulling” people by celebrating their strengths, versus “pushing” them to do things they don’t want to do. It’s the whole “square peg in a round hole” thing. You can’t force someone into somewhere they don’t fit. But you can foster strengths by celebrating individual differences and help people find the roles in which they can best use their talents. A 2009 Gallup poll showed that employees who felt their supervisors focused on their strengths

had only a 1 in 100 chance of becoming actively disengaged at work. Meanwhile, those who felt their supervisor focused on their weaknesses, or felt ignored consistently, fell into the actively disengaged category. Happier employees lead to higher employee retention, which in turn attracts better talent as word about your great reputation begins to spread. Many of today’s big companies have it figured out. Yum!, (the company that owns Taco Bell, Pizza Hut and KFC) has been praised for its ability to engage employees while defining a distinctive corporate culture. Southwest Airlines is another success story. CoFounder and Former CEO Herb Kelleher had an interesting way of putting it: Employees come 1st and customers come 2nd. Think about it: if you keep your employees happy, they’ll keep your customers happy. At M&R, we saw our Net Promoter Scores go up year after year, once we adopted a Pull vs. Push strategy. Employees stayed with us longer, delivered a higher quality of service, and as a result, our customer satisfaction numbers improved year after year. Creating your vision and environment Your first step on the road to employee engagement is to create an inspiring and compelling roadmap of the future that clearly outlines your strategic vision, mission, values and purpose. After all, it’s hard to get employees working towards a common goal when there isn’t one readily in place. So start by analyzing your strengths and weaknesses, understand your core and distinct competencies and make sure they’re aligned with achieving your vision. Then consistently demonstrate your values with passion. Remember, we aren’t | www.REMInetwork.com | July 2017 | 27

MANAGEMENT >>

judged on our intentions but by our actions and behaviours. Soliciting employee input The best way to get staff buy-in to your vision and mission is by asking them to help bring it to life. This is a great example of pulling instead of pushing. You’re not dictating how staff should ask, but rather, asking them what they feel comfortable doing. By asking for staff

feedback and recommendations, you’re acknowledging their skills and ideas and making them feel valued. At M&R, we invited our staff to help formulate our Code of Conduct and Service Standards. We also regularly solicit feedback and recommendations from the team on issues, including: tenant needs and wants, Capex projects and priorities and ideas for tenant engagement.

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While this is specific to the real estate sector, involving staff can happen in a myriad of ways. More importantly, this process helps quickly identify which staff members are actively engaged. You can then decide whether those who are actively disengaged will fit into the corporate culture you are trying to build, if they would be best suited in a different role, or whether they should be outplaced in order to maximize company success. Engaging and appreciating your employees Sharing your collective vision and working together as a team to make decisions about how this vision and mission will be executed is critical. At M&R, we use staff newsletters, an employee portal, training sessions and staff appreciation events to share news about our vision and the progress we’re making together. Results can speak volumes. In our case, both employee and tenant retention numbers are consistently high, year after year. And the icing on the cake has been that FRPO (Federation of Rental-housing Providers of Ontario) has recognized our efforts by bestowing us with the Service Award of Excellence for the past two years in a row. Which leads to the final point: we all know how valuable rewarding success can be. So think about implementing an employee recognition program through bonuses tied to reviews, contests in your newsletters or in other ways. And know that how you deal with failure can also speak volumes. After all, employees should be encouraged to take the risk to make a difference. A handful of forward-thinking companies actually offer an annual award for attempted improvements or innovations that result in failure! Why not turn a failed attempt into a positive and rewarding experience for that employee who was actively involved enough to try something new to improve your company? At the end of the day, we’re all humans with similar basic needs. We want to feel valued and appreciated. Corporate culture is not about pushing someone to do something they don’t want to do, or to be someone they simply are not. Instead, it’s about pulling someone forward with respect, to explore their strengths. Doing so will make us all better in the long run.

Randy Daiter is the Vice President, Residential Properties, at M&R Holdings.

28 | Canadian Apartment | Part of the REMI Network | Untitled-1 1

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Industry Hot Topics Edmonton welcomes first modular apartment made from shipping containers

dmonton’s first apartment block made entirely of shipping containers is currently under construction at 95th Avenue and 163th Street. Called Westgate Manor, the three-storey, 20unit multi-family development will bring much needed affordable housing to the area. Constructed with an innovative all-steel modular building technology that uses surplus shipping-containers as its structural core, the apartment modules are fabricated in the Ladacor factory in Calgary, then transported to the infill site to be installed. In total the process takes three months, with less than a month needed to erect the modules for the apartment block on site. Westgate Manor features a mix of two-bedroom and onebedroom units, all with balconies and patios, attractive landscaping, modern design, and extensive parking. “The re-purposing of the shipping containers is both an environmental consideration, as well as providing a far superior steel structure,” said AJ Sliviniski, President of Step Ahead Properties. “Offering schedule savings and less site disruption to the area, the non-combustible, durable steel versus wood material leads to higher public safety, and overall higher quality and lower execution risk with factory manufactured predictability. By the time the project is finished it is indistinguishable from conventional construction.”

Finished with fibre cement siding, the new walk-ups will be a blend of the 1960s-era apartments already on the property, and should be open to tenants as early as August. Ladacor and Step Ahead Properties said they plan to continue their partnership on further apartment projects. Ladacor is also working on various projects for private and institutional developers for apartments, seniors’ lodges and affordable housing. Current projects include a multifamily apartment in Banff, AB, and a seniors’ lodge in Hythe, AB.

Toronto installs most green roofs in 2016

oronto had the most square footage of green roofs installed out of all North American cities in 2016, followed by Chicago, Washington D.C., and Seattle, according to the 13th Annual Green Roof Industry Survey. Montreal, Vancouver and Quebec City were also on the list of top 10 metropolitan regions. “It’s no small feat that Toronto has been recognized as the leading city for green roof installation in North America,” said Jennifer Keesmaat, chief planner for the City of Toronto. “Our Green Roof Bylaw, in effect since 2010, has resulted in a new roof-scape for Toronto, cooling the city, helping to mitigate water run-off, while also adding beauty and biodiversity. A

30 | Canadian Apartment | Part of the REMI Network |

whole new industry has been spawned as a result of this initiative: it’s a win win win!” Green Roofs for Healthy Cities (GRHC), the North American green roof and wall industry association who administers the annual survey of its corporate members, also announced that the industry grew by double-digits in 2016. The North American green roof industry experienced an estimated 10.3 per cent growth in 2016 over 2015. The survey results also point out that there were several new municipalities reporting green roof construction in 2016. Members recorded 889 projects in 40 US states and six Canadian provinces, installing 4,061,024 square feet of green roofing.

CHMC report addresses MURB ownership structure

new CMHC report reveals that most of Canada’s purposebuilt rental apartments are owned by individual investors or private corporations. The report, entitled “Rental Ownership Structure in Canada”, is part of an on-going effort to address data gaps, focusing on the ownership structure of the purpose-built rental market and the extent of foreign ownership within that segment of housing in Canada. The data reported comes from a new set of questions added to CMHC’s 2016 Rental Market Survey. “Purpose-built rental buildings are an important part of the rental supply in Canada, especially in urban centres where they house slightly more than half of households who rent,” said Gustavo Durango Senior Economist, Canada Mortgage and Housing Corporation. “While individual investors and private corporations own the bulk of these buildings, it’s interesting to note that these groups are not evenly represented across major markets.” Highlights from the CMHC report • Roughly 90 per cent of purpose-built rental apartment units in Canada are owned by individual investors and private corporations. • Units owned by individual investors tend to have lower rents than units owned by other ownership types, but the difference between them is smallest in the most expensive markets. • The share of foreign ownership of purpose-built rental apartments is small. Nationally, it stands at just 2.4 per cent. The report presents average national results across major centres, while highlighting the markets of Vancouver, Edmonton, Toronto, Montreal and Halifax. These five centres were chosen for more detailed analysis because they are the largest rental markets in their respective regions in terms of their share of the overall stock of the purpose-built rental apartment market. The first part of the report defines the different types of owners and discusses overall market shares while highlighting key regional differences. The second part presents results on average rent levels, age of structures, vacancy rates and the size of structures associated with the different types of owners. The third part discusses results relating to the foreign ownership of the purpose-built rental apartment stock. To access this and other reports from CMHC, please subscribe to Housing Observer Online.

Trends favour Barrie rental housing market

arrie’s rental housing market looks promising for investors, a new report contends. Steady population growth, expanding employment and postsecondary education opportunities and the ripple effect of Toronto’s soaring housing costs are highlighted among favourable trends. As the urban anchor of one of Ontario’s predominant tourism and recreational regions, Barrie boasts a population of about 146,000 and is projected to reach 210,000 within the next 15 years. It is a service centre for rapidly growing Simcoe County, which now numbers about 480,000 residents. Two of the city’s largest employers, Georgian College and the Royal Victoria Regional Health Centre, are also identified as drivers of the rental and seniors housing markets. Don Campbell, senior analyst with the Real Estate Investment Network (REIN) Canada, points to the narrowing gap between rents for one-bedroom and larger units as one sign of the market upswing. The city’s overall rental vacancy rate is projected to climb from the current rate of less than 2 per cent as new purpose-built supply comes onto the market, but then stabilize at a still landlord-friendly 2 per cent for 2018. Tenants looking to move to homeownership may have fewer options, as the average sales price jumped 37 per cent between the first quarters of 2016 and 2017, to just slightly more than $520,000. They also face more competition as prospective homebuyers migrate from even pricier markets. “Barrie has begun to attract a younger population,” the report observes. “This shift is influenced, in part, by an increase in the student cohort as the city experiences a growth in postsecondary education. The city’s ability to attract younger new residents is also influenced by Barrie’s growing reputation as a place for families and young, active professionals. With the reinstitution and subsequent expansion of GO train service from downtown Toronto, professionals can continue to work in downtown Toronto then end the day sitting by the lake (Simcoe) or in a much more affordable backyard.” For prospective investors, the Barrie rental housing market also offers an even rarer attraction — matching residential and multi-residential property tax rates. | www.REMInetwork.com | July 2017 | 31

NEWSWORTHY >>

More family-sized rentals needed to ease housing crisis

report, released in May 2017 by the Canadian Centre for Economic Analysis (CANCEA) suggests about 70% of Ontarians live in homes with too little or too much space for their households. Called “Understanding the Forces Driving the Shelter Affordability Issue,” the report uses big data analytics that consider more than 40 factors affecting housing affordability. The analysis demonstrates that the housing affordability crisis in Ontario (and the GTHA specifically) is being driven by these linked issues: • Insufficient housing choice: there is an availability mismatch in terms of size, location/transit access and tenure. • A lack of housing productivity: the construction of ground-oriented, medium density housing within existing urban

areas will improve the productive use of land. • Many families forced into worse options: people buy when they should rent, or move farther away in search of more affordable housing. “According to our research, at least $100 billion in rental units will be needed over the next 10 years in Ontario, particularly familysized space,” says Paul Smetanin, CANCEA president and CEO. “Since 1990, primary rental stock per capita has dropped in the GTHA by one-third. A greater supply of rental housing would slow down the rising cost of all forms of housing and provide shelter to more people.” Thousands of Baby Boomers are among more than 50 per cent of Ontario households

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with too much living space. In fact, CANCEA’s data found there are five million unused or spare bedrooms in Ontario. “Unfortunately, these homeowners have limited options to move within the region if they want to downsize into appropriate housing,” Smetanin says. “One possible solution is an increase in the supply of ‘gentle density,’ also known as the missing middle.” So, what is the ‘missing middle?’ It includes semi-detached homes, row homes, townhomes, multiplexes and courtyard apartments. Even a minor increase in this type of residential intensification would result in more people moving into smaller living spaces, as directed by the provincial Growth Plan, and could slow down rising housing costs. According to the building industry consortium that commissioned the report, three other keys to easing the housing crisis and improving affordability are: 1. Eliminate barriers or create meaningful incentives to increase the supply of purpose-built rental stock. 2. Encourage more transit-oriented development as part of the planning process for both new residential and mixed-use projects. CANCEA’s research says about 70% of GTHA commuters use cars but only 20% use transit – these numbers must shift as the population increases. 3. Facilitate more mid-rise residential and mixeduse development through pre-zoning.

MANAGEMENT FEATURE >> >>

Ensuring Occupant Safety A Checklist for Residential Property Managers by Bill Maginas

partment facilities have the difficult responsibility of creating a warm and welcoming environment for residents while maintaining a commitment to safety and security through the standards established by municipal regulatory organizations. An apartment building’s revolving door of residents, visitors and staff further complicate the facility’s safety and security efforts, particularly when it comes to testing systems to ensure everything is working properly. The following checklist is an easy-to-follow guide that apartment management can implement to help better protect its staff, visitors and residents at all times. Conduct a ‘Risk Assessment’ Consider leveraging trained professionals who conduct fire protection and life-safety risk assessments to help ensure that all technologies and systems are fully operational and complying with regulations. The results of an assessment can help shape appropriate safety and emergency preparedness plans and recommendations. Along with increasing safety, risk assessments can help identify how to reduce costs, increase operational efficiencies and improve the overall health of an apartment facility, its staff, residents and visitors. Ensure emergency preparedness To maximize the safety and well-being of occupants, it’s critical to have a response plan in place for emergencies, such as fire or severe 34 | Canadian Apartment | Part of the REMI Network |

weather. Ensuring all employees – whether full-time or contracted – are aware of potential threats and safety procedures helps prepare everyone in the event of an emergency. Scheduling yearly trainings and drills helps keep safety top of mind for all, not just those who oversee security or operations. Install technologies that communicate emergency information A customized, real-time emergency communication system that incorporates audible and visual notification to share lifesaving information is essential for apartment facility safety. In Canada, highrise apartment buildings (and apartment facilities with a certain number of residents) are required to install voice enabled fire safety systems. Many buildings are also required to install audio systems loud enough to reach residents right in their bedrooms. Integrating emergency communication technology helps an apartment facility ensure compliance with strict regulations and building codes. Mass notification systems (MNS) can offer a multitude of benefits and change the way information is communicated. An important aspect of an integrated MNS is a voice-enabled fire alarm system, used to notify people of an emergency and to provide less critical information such as parking notifications or weather conditions. Voice fire alarm systems can instantly broadcast information throughout an apartment facility and can be programmed to select exactly which speakers are used – and what message is played on them – during an emergency. Messages can be tailored to specific

apartment buildings, floors and apartment suites. These systems can be particularly useful in apartment common areas such as exercise rooms and lobbies. This is especially beneficial in residential environments when there may be situations that require different information to be shared based on area or floor. For example, during a fire it may be safer for one floor to shelter in place, while another must evacuate. While many people associate a text alert with MNS today, a system is usually made up of multiple modes of communication that can include audio and/or visual notification from a fire alarm system, email notifications, automated phone calls and visual messaging boards. Test technology regularly Fire and life safety systems require regular maintenance to ensure performance. Opt for a CFAA Registered Technician to conduct full system maintenance to meet regulatory requirements. This third-party testing helps to ensure facility managers that their fire and life safety systems are in proper working order and can function in the event of an emergency. Since apartment facilities are always occupied, and occupants object to loud noises interrupting their regular routines, lifesafety providers can combat this challenge by enabling faster, less intrusive testing of notification systems using addressable technology. Notification appliance self-testing can be conducted with minimal disruption to residents and staff, and can help ensure that the system is ready to perform in the event of an emergency. Coordinate with trusted resources An apartment facility’s staff can further understand threats in and around their facility by forging relationships with local security and law enforcement resources, such as police, fire, and government offices. Many facilities, especially those on a smaller scale, can only accomplish so much with in-house resources, but all can increase safety by leaning on outside resources to build collaborative plans for responding to issues when they arise. With residents traveling and hosting visitors in the summertime, it’s a great reminder to reassess your facilities’ safety and security plans and procedures. Checking off these five steps can help to maximize the safety and security of your apartment facility and its residents, during any time of the year.

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| www.REMInetwork.com | July 2017 | 35

INSURANCE >>

Labour Law Changes in Ontario Employers will Face New Challenges When it Comes to Workplace Management by Andy Schwartze

cannot write this article without first briefly commenting on the horrible tragedy that befell the residents of Grenfell Tower in London, England. By now the facts are well known, the litigators are preparing for a long legal feast and many families are struggling with pain that will last the rest of their lives. For the multi-residential community, this disaster yet again demonstrates the fact that governments do not belong in the apartment business. Government housing is managed to a different set of priorities, which so often results in deteriorating infrastructure and poor living conditions. The private sector simply does this much better. For those of us who are employers in Ontario, some recently announced labour law changes are worth mentioning. Very few will have missed the fact that the minimum wage is being pushed to $15 an hour over the next couple of years. However, much less publicized but equally as important are the following: 1. Casual and part-time employees must now be paid the same rate as full-time employees. 2. After five years of employment, with the same employer, vacation entitlement rises to three weeks annually. 3. All employers must allow up to 10 days leave of absence for personal emergencies. 4. Employers will no longer be able to demand 36 | Canadian Apartment | Part of the REMI Network |

notes from doctors where the employee is off sick for up to 10 days. 5. Leave to deal with a family medical need is extended to 27 weeks in a given year. Certain other changes will most definitely make workplace discipline more difficult as these will further weaken the position of management. In an increasingly diverse employee culture the challenges of managing a company are becoming ever more onerous in a province that does not seem dedicated to a thriving business environment. a. An employee can complain to the Ministry without first being required to address the supposed problems with management in an attempt to resolve them. b. Officers who investigate complaints will not be able to dismiss ones that may seem silly, pointless or without a clear basis. Every complaint must be investigated. There is more, of course. Numerous other changes will have an impact on unionization, with the goal being to open more doors to unionization and make it more difficult for employers to keep unions from further encroaching on the workplace. These changes even go so far as to allow the labour board, under certain unclear conditions, to

set aside applications by employees to deunionize. It will also make it easier for fringe groups, such as temporary and home care workers, to unionize. It is becoming ever more important that employers, no matter what their corporate size, have an HR plan that recognizes the growing statutory pitfalls of managing employees. Smaller employers will strive to be competitive by offering carefully crafted and equitable employee benefit plans at a tolerable cost. In many cases the HR system stops there. These same employers often have very casual HR procedures that inevitably land them in trouble when a disgruntled ex-employee shows up with a lawyer. Wrongful dismissal claims are typically not insurable under liability insurance policies so that, in many cases, some sort of monetary settlement comes right off the companyâ&#x20AC;&#x2122;s bottom line. Increasingly, insurance and risk management professionals will be asked to assist their corporate clients in fashioning not just the insured employee benefits part of the HR process, but also the design and implementation of standards that will enable the smaller business to protect itself from the growing onslaught of complicated employment regulations. Expert advice is the cheapest advice there is, after all.

Andy Schwartze, BSc., MBA, CIP, is an insurance broker specializing in property management and real estate. He can be reached at andy@takecover.ca.

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July 2017

Ontario leaves live-in superintendents exposed

London’s fatal ﬁre sparks high-rise safety concerns

Live-in superintendents in multifamily buildings continue to have little protection in Ontario law. Earlier hints that the provincial government might move quickly to guarantee entitlement to the minimum wage, overtime pay, and set working hours proved unfounded when proposed amendments to the Employment Standards Act (ESA) were introduced in June.

The fatal fire that ripped through a 24-storey apartment tower in London, England, on Wednesday, June 14th, has left the city traumatized. Deemed one of the deadliest apartment fires in recent history, the blaze in the 120-unit Grenfell Tower council housing block has resulted in 79 confirmed deaths and dozens of injuries.

Investor demand outstrips multifamily supply Cap rates in the range of 2 to 3 per cent didn’t deter investors from acquiring approximately $450 million worth of Vancouver apartment buildings in the ﬁrst quarter of this year. JLL reports differing dynamics in the ﬁve major Canadian markets it surveys, but with consistent demand from would-be purchasers.

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CREA reports largest monthly decline since 2010

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NEW APPS, SERVICES AND APPLIANCES FOR FORWARDTHINKING TENANTS AND LANDLORDS No parking, no problem With parking spaces at a premium in most urban centres, Whereipark is doing for vacant spaces what Airbnb did for empty homes. The online marketplace allows parking tenants and/or owners to search for and rent out their vacant spots for spare cash. Landlords with a surplus of vacant spots can make use of the app to rent idle spaces, and convert them into a handy revenue stream. WhereiPark manages all of the administration on the owner’s behalf, including processing payments and managing security deposits. For commuters and offices, WhereiPark makes it simple to search for monthly parking, compare rates, and book a spot. WhereiPark was founded by entrepreneurs Alex Enchin and Jeremy Zuker. Find out more at www.whereipark.com

A sneak peek at the future Why are real estate developers actively turning to virtual reality? Because the technology has proven to be an invaluable way to increase sales and reduce project costs. Toronto-based Invent Dev’s immersive service offering engages with the modern buying cycle and helps sell developments faster, all while using the latest in virtual reality (VR) technology. Through VR, every floorplan and finish option can be explored, and units toured well before project completion. Construction is faster, hence developers can increase the number of projects they build per year. Find out more at www.inventdev.com

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Top-loading washer, redesigned for better performance Maytag announced that it has redesigned its Commercial Laundry Top-Load Washer based on the changing needs of the commercial laundry market. The unit, which features intelligent controls and a traditional deep wash experience, was redesigned from the ground up to incorporate customer feedback and ensure an exceptional, durable product. Equipped with a powerful ½-HP PSC motor, traditional flex-vane agitator and quad-gear transmission, the new Maytag unit is now available. Find out more at maytagcommerciallaundry.com