Canadian Apartment Magazine by MediaEdge

Apartment CANADIAN

VOLUME 15 / NUMBER 3 / JULY/AUGUST 2018

WINNING AMENITIES

HOW TO SCORE LONG-TERM TENANTS

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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

WORK. PLAY. SLEEP. REPEAT…

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Apartment buildings today are anything but bland with their green roofs, party rooms, pet washing stations and swim spas. But not all buildings are catering to the same crowd, which means, not all features are alike. This, at least, according to Minto Apartments, a company that’s heavily reliant on its “tenant profiles” when establishing amenity packages for each new build. Based on the property’s specific location and offerings of the surrounding community, everything from suite sizes through to design finishes is pre-determined in order to appeal to the needs and price points of the demographic it aims to attract. In other words, a modern high-rise in the downtown core is sure to lure a fleet of young urban professionals. Smart appliances, pet-friendly features, lounge areas and business centres are a must. Of course, no one drives anymore so don’t forget to make room for bike racks, cold lockers and yoga studios. This crowd likes to work, live, play and exercise in one place. Find out how Minto Apartments is planning to appeal to its future residents at 39 Niagara on page 16. The issue also explores new exterior soundproofing techniques, amenities aimed at aging Canadians, and Ontario’s new conservative government as it relates to the rental housing crisis. As usual, we offer up-to-date trends and transactions and some “smart ideas” for landlords big and small. We hope you enjoy the issue!

Erin Ruddy

Publisher

Maya Merchant

Senior Designer

Annette Carlucci

Production Manager

Rachel Selbie

Contributing Writers

Graeme Huycke Andy Schwartze

National Sales

Sean Foley Melissa Valentini

Digital Media Director Steven Chester Circulation

Anthony Campbell For sales information call (416) 512-8186

Canadian Apartment Magazine is published six times a year by:

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President Kevin Brown Group Publisher Sean Foley Copyright 2018 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. Authors: Canadian Apartment Magazine accepts unsolicited query letters and article suggestions.

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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.

2018 AMENITY FAVOURITES:

ROOFTOP LOUNGE

YOGA STUDIO

PET ZONE

WIFI

Editor

GREEN FEATURES

FITNESS CENTRE

BBQ

SWIMMING POOL

IN-SUITE LAUNDRY

BIKE SHARE

STABILITY AND BALANCE

AT THE TOP!

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Apartment CANADIAN

VOLUME 15 / NUMBER 3 / JULY/AUGUST 2018

FEATURES 22 Blocking out the Noise Soundproofing can lead to happier tenants and lower turnover 25 From Old to New Boardwalk’s “Centre Pointe West” wins award for best renovation

COLUMNS 8 Transactions Multifamily Properties in Demand 10 CMHC Services and Amenities for Aging Canadians By Graeme Huycke 26 Legislation Fixing Ontario’s Rental Housing Crisis 28 Marketing Must-have Amenities for the Modern Renter 30 Newsworthy Industry Hot Topics 32 Insurance Insurance Claim Denied By Andy Schwartze

COVER STORY

DEPARTMENTS

Apartment

16 Tailor-Made for Tenants From design to amenities, Minto Apartments caters to the occupants who call each building home By Erin Ruddy

WINNING AMENITIES

CANADIAN

Editor’s Note

ON THE COVER:

VOLUME 15 / NUMBER 3 / JULY 2018

The games room at 39 Niagara

HOW TO SCORE LONG-TERM TENANTS

34 Smart Ideas plus

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Multifamily Properties in Hot Demand Midyear results show cap rates are holding steady at low levels Midyear results from CBRE and Colliers International are in, revealing that cap rates are holding steady at low levels as investors chase multifamily properties in major Canadian markets. They also indicate almost every other property type, except premier office, is trading at higher cap rates.

“S

ector fundamentals remain exceedingly strong with low vacancies and rising rents seen in most markets across the country,” reports David Montressor, executive vice president of CBRE’s national apartment group. “With a limited number of quality offerings reaching the market, several cities are reporting greater than normal demand from investors.” Nationally, CBRE pegs the average cap rate for Class A highrise properties at 3.96 per cent. Class B high-rise and Class A lowrise likewise register lower average cap rates than the national average for Class AA downtown office buildings, which is 4.81 per cent. Within Canadian markets, cap rates in Vancouver, Toronto and Ottawa are lower than the national average for all four multifamily formats. Vancouver remains at the low end of the scale, with cap rates for Class A high-rise properties in the range of 2.5 to 3 per cent. Changing dynamics for new residential construction in British Columbia may also have an impact on demand for existing multifamily stock in the coming quarters. “The residential real estate market has seen some cooling in some segments and markets, however there is still demand for product outside of luxury markets,” observes James Glen, Colliers’ vice president in Vancouver. “The big story is the rapid rise in

8 | Canadian Apartment | Part of the REMI Network |

construction costs and development levies, squeezing residual land values down. Many of the largest developers have amassed large land holdings over the years, and so are not immediately affected directly by softening.” In Ottawa, Class A high-rise properties are trading at caps of 3.25 to 3.75 per cent with Toronto Class A high-rise properties in the 3 to 3.75 per cent range. Winnipeg, Calgary and Edmonton exhibit cap rates above the national average — although Winnipeg’s 5 to 6 per cent range also partly reflects that no highrise Class A buildings sold in the second quarter. “Despite an increasing vacancy rate, new supply is being added in the multifamily market, led by high-end rentals and student housing,” reports Ryan Behie, CBRE’s vice president and managing director in Winnipeg. Halifax presents a similar scenario. “The multi residential market continues to see substantial development of new buildings in all areas of the City, with the downtown now being a focal point for high quality development,” says Mitch Wile, Colliers’ managing director in Halifax. “The new supply is being met with enthusiasm from the market as tenants are upgrading from older rental stock to modern buildings. The downtown is emerging as a new residential community — a virtuous circle by which the growing

TRANSACTIONS >>

neighbourhood will support residentoriented businesses (shops, services, restaurants, cafes, etc.) and the office market to an extent.â&#x20AC;? Colliers analysts also speak enthusiastically about trends in Montreal, where cap rates were at 4 to 5 per cent for high-rise and 5.25 to 6 per cent for low-rise apartment buildings. Michael Colgan, managing director in Montreal, notes that the multifamily sector was the most active component of the investment market in the second quarter of 2018, although many of the deals were smaller transactions. The largest Montreal transaction was a 268-unit building that sold for $79.6 million or $297,200 per unit.

New and notable transactions June/July 2018 Address

City

#of Units

Sale Price (Millions)

Sale Price/Unit

Purchaser

North York

153

$33.9 M

$221,569

Starlight Investments

1465 Lawrence Ave West

96 Jameson Avenue

Toronto

$16.8 M

$232,639

Starlight Investments

151 St George Street

Toronto

$17.5 M

$364,583

Hollyburn Properties

26-28 Balmoral Avenue

Toronto

$14.0 M

$254,545

Akelius

Central Towers

Calgary

$11.9 M

$204,310

Hollyburn Properties

1040 Cedar Street

Oshawa

264

$37.5 M

$142,045

Medallion Corporation

41 Garfella Drive

Etobicoke

$21.5 M

$226,316

Starlight Investments

135 Lawton Boulevard

Toronto

$19.2 M

$398,958

Hollyburn Properties

Lagoon Villa Apartments

Vancouver

$19.7 M

$467,857

Living Balance

| www.REMInetwork.com | July/August 2018 | 9

CMHC REPORT >>

Services and Amenities for Aging Canadians Upfront considerations for long-term project viability by Graeme Huycke When planning to build a rental property aimed at older Canadians, developers must balance the need to remain competitive in the marketplace with the need for cost-effective services and amenities that correspond to the demands of residents.

nlike mainstream housing developments, where built-in amenities are largely influenced by the desire to capture the interest of the purchaser, developers targeting seniors are more likely to consider the inclusion of carefully chosen services or amenities with the expectation that these will be regularly usedâ&#x20AC;&#x201D;either because residents need them, or are willing to pay a premium for them, or both. For this reason, a careful analysis of the costs and benefits of on-site amenities that require upfront investment (such as central dining facilities and a kitchen) is critical early in the planning process, as not only will these decisions affect 10 | Canadian Apartment | Part of the REMI Network |

the financial viability of the project but ongoing operational expenses, as well. Here are some important factors CHMC recommends developers consider when planning their future retirement communities: Urban or rural setting The first and most important consideration is the location of your project and the offerings of the community-at-large. Highly urban locations are more likely to have services and amenities available within walking distance, or perhaps a short drive or bus ride away. Planned projects close to a community centre that offers fitness

classes targeting seniors, for example, may only need 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 those types of facilities on site. Projects in more rural settings, however, are more likely to require well-equipped onsite 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.

CMHC REPORT >>

Some developers are predicting that increasing numbers of older Canadians will prefer developments with all-encompassing lifestyle appeal versus developments that depend on the surrounding community. In other words, prospective residents may be more attracted to a project that offers its own wellness centre, theatre, salon, walking trails and parkland, as compared to 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, developers should 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. Baby boomers 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 fret 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 both the range and quality of services, in some cases they may prefer that an amenity 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 should focus more on in-home support services that assist with their daily activities, and assistive technology (i.e. such as emergency response systems) to augment safety as their abilities start to decline. 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 three 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.

Since older Canadians are a diverse group with a wide range of needs and expectations, developers should accurately identify and understand the particular target market for a development.

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 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.

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| www.REMInetwork.com | July/August 2018 | 11

CMHC REPORT >> 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 (i.e. places of worship). 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 on offer are flexible enough to respond to the changing needs of residents. Multi-purpose rooms that can be adapted as necessary is certainly something to consider. Identifying gaps in the surrounding community When doing market research, it’s important to pay special attention to which services and amenities

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 elsewhere. Market 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.

Chartwell Launches New Retirement Living Campaign New series tackles common concerns and misconceptions about aging Chartwell Retirement Residences has launched a new campaign intended to educate seniors and their adult children about retirement living as they transition into this daunting and largely misunderstood phase of life. Taking a humourous and lighthearted approach, the new ad campaign features two high-spirited 80-somethings, Edna and Therese, who tackle the delicate topic head-on from the viewpoint of seniors themselves. “Modern retirement living is increasingly about lifestyle and choice,” said Sharon Henderson Vice President of Marketing & Communications at Chartwell. “Our communities offer people the freedom to remain independent, active and social, with support options if and when they need it. We are seeing an increased need to proactively challenge historical perceptions that truly do not represent the options and benefits of retirement living today.” With the seismic shift in demographics approaching, the demand for information on independent and supportive housing options for seniors is growing. The irreverent new ad campaign applies humour and frankness in order to debunk various misconceptions while informing about the flexibility of today’s retirement residences and the level of independence residents can enjoy. It also helps ease the hesitation adult children may feel when starting the conversation with loved ones about considering a move to a retirement residence. “Our goal is to help change the perception of retirement living and proactively offer information through our Retirement Living Consultants, Call Centre and on Chartwell.com that can help support seniors and loved one in their decision,” said Henderson.

12 | Canadian Apartment | Part of the REMI Network |

Popular amenities found in retirement communities: • Game rooms • Hair salons • Computer rooms • Cafés • Libraries • Theatres • Chapel areas • Private dining spaces • Walking paths • Gardens • Outdoor sitting areas

Graeme Huycke is Senior Specialist, Client Relations, Multi-Unit Underwriting at CMHC. For more information on housing for older Canadians, visit www.cmhc.ca or contact Graham at (416) 250-2705 or ghuycke@cmhc.ca

Celebrating 30 Years. With you. Because of you.

As we reflect back on 30 years in commercial real estate, we are proud of our accomplishments and excited about the future. We are proud of our leadership position as the largest commercial lender in Canada. We are proud of the entrepreneurial spirit that has kept our structure flat and our leaders engaged. We are proud of our strong balance sheet and the confidence it brings to our clients. But what makes us most proud are the relationships that we’ve formed, the businesses that we’ve helped to build and the impact that we have made – together with our clients – on commercial real estate in Canada. And that is what excites us about the future. Finding the high value opportunities. Providing the highest quality mortgages in response. Constantly innovating to move clients toward their business goals. So thank you for your faith, trust and loyalty for the past 30 years. We promise to continue to earn it and deserve it for the next 30 years and beyond.

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“ Maintaining an edge in any real estate market takes consumer insights and custom strategies.”

costs, but also as an excellent marketing tool for younger renters,” says Shanghavi. ”That’s why, as a company in this space, we need to be constantly training sales staff on new products and emerging technology relevant to apartment operations.” Material Choices There is a number of elements that make an attractive space. The use of luxury vinyl tile (LVT) planks, for example, is a popular flooring choice due to its stylish, wood-like appearance and the fact it lasts twice as long as a carpeted surface. Contemporary bathroom spaces with upgraded faucets and rectangular sinks are also popular features, with chrome and satin nickel finishes continuing to lead the way in popular colour choices. LED lighting is another growing trend within residential buildings. As Shanghavi explains: “With pricing becoming much more affordable, and with total energy costs considered over the entire lifespan, these solutions have become extremely practical.” A Tailored Approach Maintaining an edge in any real estate market takes consumer insights and custom strategies. That’s why, in addition to offering digital-friendly catalogs and sophisticated ordering and inventory systems, Shanghavi says its equally important for H&S to invest in the research and market insights that help it’s clients make informed decisions. “When we undertook a complete renovation project for our fully furnished luxury suites

in one of our downtown Toronto buildings, we needed to know what our potential customers were looking for and how we could cater to their preferences,” says Stacy Coolman, Vice President of Operations with Barney River Investments Ltd., recalling, “Key to our success was working with H&S, who helped us determine the right products for the type of clientele we cater to.” Smarter suites, social spaces, and stylish furnishings are top draws for today’s renters. That said, the specific products and materials used by building owners / managers will differ depending on a number of factors (e.g., demographics, location, existing materials and infrastructure, etc.) Therefore, before approaching any project, it pays to understand whats been working in the market and what makes tenants tick.

Amit Shanghavi is Managing Director of H&S Building Supplies. For more, visit www.hsbuild.com.

COVER STORY >>

TAILOR-MADE FOR From design to amenities, Minto Apartments caters to the occupants who call each building home With demand for rental housing at an all-time high, and expectations of quality and service just as skyrocketing, Minto Apartments looks forward to July 2019 when it can finally welcome residents to its newest rental property, 39 Niagara. by Erin Ruddy

R TENANTS

COVER STORY >>

Located in the trendy downtown west neighbourhood of Toronto, and a short jaunt to the financial core and entertainment district, the high-end, mixed-use development promises 20,000 square feet of amenity space anchored by top-class food and clothing retailers known for superior quality. Shops and location aside, the building itself— comprised of 501 rental units and adjacent to Minto’s

Westside condominiums—is the embodiment of a young, hip lifestyle designed for discerning residents who want to stay connected to friends, their neighbourhood and the activities they hold dear. Gone are the days when parking garages topped the list of urban necessities; today it’s about wellness through green spaces, uninterrupted Wifi, rooftop lounges, and the convenience of living, working and playing in one attractive location: home.

“The construction of our purpose-built rental tower is poised to meet the demand for rental units given the city’s record-low vacancy and rising home prices,” says George Van Noten, Senior Vice President, Minto Properties Inc. “39 Niagara was imagined with young professionals and entrepreneurs in mind— urban singles who are active, social, immersed in the King West community and who appreciate great design.” As a demographic known for

Minto Apartment REIT owns a portfolio of 22 high-quality income-producing multi-residential rental properties consisting of 4,279 suites, located in Toronto, Ottawa, Calgary and Edmonton. All buildings are situated in desirable nodes or downtown areas with constrained supply/demand attributes and excellent walk scores.

18 | Canadian Apartment | Part of the REMI Network |

its tech-savvy, brand awareness and desire for work-life balance, Minto Apartments programmed the space and services at 39 Niagara specifically around connectivity and convenience. When complete, the building will offer everything from party rooms and fire pits to a luxurious rooftop swimming pool and an unleashed dog area, right on the premises. But don’t expect the same amenity package to be offered at all of Minto Apartments’ properties—each location tailors its features and services to the tenant-base it aims to attract. “Our approach is persona-driven and varies from building to building according to our target demographic,” says Van Noten. “In Oakville we are just finishing a purpose-built high-rise targeting students, and as such, we have programmed the space and amenities to better meet their value drivers.” That said, sometimes pinpointing one distinct tenant type isn’t so cut-and-dry. Case in point is Minto Apartments’ 1235 Marlborough, a 144-unit building with state-of-the-art amenities designed for a broader mix of occupants—pets included. Given its location in Oakville’s

COVER STORY >>

lobby equipped with USB ports, an outdoor common area, quiet study rooms, bike racks, underground parking and an on-site resident services office will all be available.”

College Park neighbourhood, home to Oakville Place Mall and several schools and hospitals, the property will fill a need for rental housing in a neighbourhood lacking in options. From Sheridan College students to young

professionals and families with children, the building will offer a range of suite sizes and cater to one and all. “Amenities will appeal to a mix of tenants,” says Van Noten. “A fitness room with yoga space, indoor common area,

Location: the basis for everything Location and the surrounding neighbourhood are obviously huge determinants in who will inhabit a building, and Minto Apartments draws on its perceived tenant profile when making every decision, from architecture through to

39 Niagara resident profile: Approximate age: 25-45 Status: Single/Couple/No children Work: Monday through Friday, 9 to 5 full-time Leisure: Monday through Friday, 6 to 12, and weekends Transportation: Car to Go/Walk/ TTC/Bike Food: Coffee/Artisanal/Organic / Handmade/Quality Activities: Drinking/Music/Dating / Eating out/Working out Shopping: Luxury Denim/Leather/ Boutique Brands /Local Brands / Semi Casual

COVER STORY >> 39 Niagara services and amenities: • Full-service fitness centre with yoga room, sauna and steam room • Media, games and party rooms • Outdoor rooftop swimming pool • Rooftop patio and urban garden • BBQs and fire pits • Pet amenities including unleashed dog area • Concierge service 24 hours daily, and more

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suite finishes. At 39 Niagara, for instance, knowing the building would be filled with young professionals with no cars and rooted in the downtown core meant connectivity needed to be at the heart of everything contained in its walls. “While connecting with each other socially will happen on the rooftop sun deck, at the pool, BBQ area, and communal fire pit, connecting with fitness goals will happen in the yoga room, fitness centre and steam room,” Van Noten points out. “On the work front, tenants will connect remotely in the building’s business centre and board rooms. Connecting to comfort will come from the open concept floor plans and modern appliances, while connecting to the neighbourhood will naturally occur whenever they step foot outside.” Meanwhile, tenants can enjoy what the rest of the downtown enclave has to offer. Right next door is Minto Westside, a condominium comprised of 690 units spread across two towers and connected by a nine-storey podium. Made-up of a similar demographic, amenities on offer here include an outdoor swimming pool, several bars and lounges (both indoors and outdoors), the Movement Haus gym, and an outdoor fireplace. And then there’s the rest of thriving downtown west… While amenities have certainly flourished in the last few years—with bikes, fitness, pets, home delivery and technology rising in popularity and becoming central to what most highend buildings offer—Minto Apartments hopes to stay ahead of the game as demographics shift and new trends emerge. But it all starts with location… and 39 Niagara sure has that covered.

Yes, we can! Since MetCap Living established itself as a leader in property management, we have routinely been asked one, simple question; “Can you help us run our property more effectively?” And, for well over thirty years, the answer has remained — Yes, we can! Our managers are seasoned professionals, experienced in every detail of the day to day operations and maintenance of multi-unit rental properties. From marketing, leasing, finance and accounting, to actual physical, on-site management, we oversee everything. Guaranteed vacancy reduction, revenue growth and net profitability — when you’re ready to discuss a better option; we’ll be there. You can count on it. Kazi Shahnewaz Director, Business Development Office: 416.340.1600 x504 C. 647.887.5676 k.m.shahnewaz@metcap.com

www.metcap.com

FEATURE >>

Blocking out the Noise Soundproofing patio doors can lead to happier tenants and lower turnover

o one understands the importance of soundproofing more than rental apartment managers. Whether it’s the sound of thumping music, the roar of street traffic, or the clanking of nearby railways, loud exterior noise can depress occupancy rates and make for cranky tenants. One popular method to reduce external noise is to soundproof existing windows with a second functioning window. A quick, lower cost alternative to replacement, what many don’t know is that the same approach can be applied to sliding glass doors leading to patios and balconies. 22 | Canadian Apartment | Part of the REMI Network |

“Wherever a quiet, peaceful living environment is desired to reduce turnover or increase occupancy and rental rates, soundproofing can provide an easier, less expensive option than replacing sliding doors and windows,” says Ryan Sanquist, a contractor specializing in patio door and window installation for commercial properties. Because sliding doors are typically much larger in size than most windows, they can be a major source of noise intrusion if unaddressed. By simply adding a second soundproof sliding door to a unit, property

managers can quiet loud external noise intrusion by 75 per cent. The benefits of this are significant, and include: • improved building energy efficiency • enhanced tenant comfort and security • increased occupancy • lower turnover Effective soundproofing To resolve noise intrusion through sliding glass doors, multi-unit property managers are turning to soundproofing companies, like Soundproof Windows, Inc.—a leading manufacturer with a background in

FEATURE >>

soundproofing in commercial properties can also provide substantial benefits in reducing energy costs. Adding another sliding door or window provides an additional layer of insulation, which can reduce the heating-cooling portion of energy bills by 15 to 30 per cent. engineering products used in the most noise sensitive environments in the world (including recording studios). The company has created a “second sliding patio door” that can be installed easily inside or outside the existing door. This consists of a surface mount aluminum frame, track insert, mounting fin, and a sound insulated movable aluminum sash with rolling mechanism. The product is designed specifically to match and function like the original door, no matter its design, and can open and lock separately. Functionally, the second sliding door reduces noise intrusion due to its laminated glass construction, the air space separating the original and soundproof door, and longlasting seals. According to the company, this combination can reduce external noise by up to 95 per cent. “The first noise barrier is laminated glass, which dampens sound vibration much like a finger on a wine glass stops it 24 | Canadian Apartment | Part of the REMI Network |

from ringing when struck,” explains Randy Brown, President of Soundproof Windows. “An inner PVB layer of plastic further dampens sound vibrations.” Air space of two to four inches between the existing sliding door and the soundproof sliding door also significantly improves noise reduction because it isolates the door frame from external sound vibrations. Finally, the company places spring-loaded seals in the second sliding door frame. “This puts a constant squeeze on the glass panels, which prevents sound leaks and helps to stop noise from vibrating through the glass,” explains Brown. Raising rental value “When a large, multi-storey apartment complex was built in the heart of downtown Los Angeles, next to Union Station, the original patio doors and windows failed to meet the city’s noise compliance code for new construction,” says Sanquist.

Because tearing these out and starting over would balloon costs, soundproofing about 150 existing patio doors and 350 existing windows was the option chosen. To resolve the situation as well as improve rental values, sliding glass doors and windows from Soundproof Windows were added to the project. “The soundproofing quickly handled the noise issue for the apartment building developer, its property manager, and its tenants,” says Sanquist. “It became a more desirable place to live, capable of satisfying code and sustaining higher rental rates than it otherwise would have.” Sanquist also points to the successful use of soundproof sliding doors and windows at a prestigious Los Angeles retirement community that required noise reduction due to its proximity to two busy freeways. Added energy savings and security Such soundproofing in commercial properties can also provide substantial benefits in reducing energy costs. Adding another sliding door or window provides an additional layer of insulation, which can reduce the heating-cooling portion of energy bills by 15 to 30 per cent. This also helps to stop air infiltration around leaky seals, which improves comfort and increases the property’s perceived value. Another important side benefit is security enhancement, since its construction helps to deter burglary/ breaking and entering through typical sliding glass doors. While standard or tempered glass sliding doors can be shattered by a sharp blow, the laminated glass used in such soundproofing offers significant break in protection because it is shatter resistant and tends to remain intact even after repeated blows. Such laminated glass is actually a major component of most bulletproof glass. Whether commercial property managers seek to enhance occupancy or rental rates by protecting their renters and tenants from stressful external noise intrusion, significantly reduce heatingcooling related energy costs, or deter break in, economically soundproofing existing sliding glass doors and windows can provide a real competitive edge.

FEATURE >>

From Old to New Boardwalk’s “Centre Pointe West” in Calgary wins award for best renovations Boardwalk was recently honoured at the 2018 Calgary Residential Rental Association’s (CRRA) Awards Gala, winning the 2018 Best Renovation of the Year Award for its newly enhanced Centre Pointe West community. Originally built in 1981, Centre Pointe West is a 121-unit, 10,600 square foot, concrete mid-rise in the beltline of Calgary. Some highlights of the modernization include:

n collaboration with Paul Lavoie Interior Design, Centre Pointe West underwent a significant transformation, which included updates to all its common areas, the construction of brand new amenities, and the introduction of luxury high-end apartment units. The Best Renovation of the Year Award recognizes a property owner who demonstrates excellence in enhancing the appeal of a community. Boardwalk was nominated by Ian Newman, a thirteenyear resident of Centre Pointe West, who was selected by the CRRA to present the award at the annual gala. Mr. Newman provided the following description of his newly renovated community: “Wow! That is the word I would use to describe the transformation of the property that is so deserving of this year’s Renovation Award. The open concept lobby is outfitted with designer fixtures, furnishings and artwork which could be on the cover of an architectural magazine. The new amenities such as the WiFi bar, fitness facility, party room, and outdoor deck sets it apart from other rental communities. No details were overlooked to create its beautifully renovated spaces. It’s hard to tell the difference between luxury hotel and apartment living. I’m proud to call Centre Pointe West my home.” Sam Kolias, Chairman and Chief Executive Officer of Boardwalk REIT was also in attendance at the gala and offered the following comment: “We are so proud and cannot thank our entire team enough for their commitment and tireless efforts to create and enhance our three brands which vary in features from affordability and value to high-end luxury,” he said. “Centre Pointe West was one of Boardwalk’s first communities, branded under our affordable luxury brand, Boardwalk Lifestyle, and has since been one of the most desirable luxury communities in Calgary.”

• Newly renovated luxury apartment units featuring high-end finishes • Renovated front entrance and vestibule • An inviting, open concept lobby with community focused sitting area/lounges, WiFi bars, featuring designer lighting fixtures, furnishings, and artwork • A new designer show suite for perspective residents • Professional, inviting presentation/experience centre with a modern sales office • A new state-of-the-art fitness facility • A rentable guest suite available for friends and families of residents • A party/community room with a private outdoor terrace • Renovated hallways, with modern suite doors and hardware

| www.REMInetwork.com | July/August 2018 | 25

FEATURE >> >> LEGISLATION

Fixing Ontario’s Rental Housing Crisis Apartment sector applauds new attitude at Queen’s Park by Erin Ruddy On June 7th, Ontario Progressive Conservative party leader Doug Ford was elected the province’s new premier in a majority vote that has left some industries fearing the worst and others optimistic of much-needed change. Since Ford launched his campaign, the rental housing industry has been vocally in favour of a PC win, citing former premier Kathleen Wynne’s restrictive legislation as one of the major obstacles to new housing development.

ith reports of an annual shortfall of 6,000 rental units per year in Ontario, landlords aren’t the only ones seeking amendments to a broken system. Desperate residents in need of affordable places to call home are just as driven to see the rental shortage resolved, but there are no simple solutions to a dilemma with many complicated, interrelated causes. A 2018 CMHC study showed that the steep rise in land costs in Toronto is one factor contributing to the lack of supply. Add in restrictive government policies, zoning limitations and “uncertainty and delay in the approval process,” and investors often abandon thoughts of new development before it has begun. Will Doug Ford’s conservative government help overturn some of these obstacles? “The industry has a list of changes on the table that, if implemented, will significantly improve investor confidence,” says Joe Hoffer, Partner at Cohen Highley LLP Lawyers. “The changes are easy legislative fixes without impairing tenants’ rights. FRPO (Federation of Rental-housing Providers of Ontario) is expected to present the industry proposals soon with some expectation the province will be receptive.” Overseeing that process is Daryl Chong, FRPO’s Interim President and CEO. In his ongoing advocacy of apartment sector interests and his quest to eliminate policies that stifle, rather than spur, new development, Chong says he is hopeful that the new Ford government will usher in an era of growth and heightened activity. “During his campaign, Doug Ford was able to articulate a vision of change that resonated with regular people,” Chong says. “His 26 | Canadian Apartment | Part of the REMI Network |

vision is one that respects the taxpayer and stands up for the average person. His government also demonstrates a better understanding of our industry, and is open to exploring ways we can work together to encourage more rental supply. I look forward to working with the new Minister of Municipal Affairs and Housing, Steve Clark, to discuss ways we can reset this broken system and hopefully relook some of those misguided government policies that continue to hold back new supply.” Specifically, one of those “misguided” policies is rent control and the post-1991 exemption that was overturned in April 2017 as the Liberals pressed forward with measures to help ease financial pressures on renters. As part of what the then government called its Fair Housing Plan, allowable rental increases were limited to the rate posted in the annual provincial rent increase guideline (about two per cent on average) regardless of when it came onto the market. Landlords and developers argue that the policy compels them to set prices high from the outset in order to make a new project viable —in other words, forego building anything affordable. Ford has frequently asserted his belief that overregulation leads to undersupply and that when it comes to matters of supply and demand “the market should take care of itself.” Nevertheless, according to a May 15th statement posted on the Ontario PC website, his party appears to have no current plans to address rent control. “I have criss-crossed the province, and from one corner to the other, the people of Ontario have told me they are struggling. I have listened to the people, and I won’t take rent control away from

LEGISLATION >>

Streamlining the lagging approvals process A new report called “Streamlining the Development and Building Approvals Process in Ontario: Good Practice Concepts and a Guide to Action” suggests the fastest way for the PC government to see new housing results is to streamline the development and building approval process. “Representing Canada, Toronto is 54th out of 190 countries assessed by the World Bank in terms of the efficiency of its approvals process for routine building projects,” said Richard Lyall, president of RESCON, in a press release. “This ranking isn’t for an 80-storey mixed-development high-rise – it’s for the most basic of buildings such as a warehouse. We are a G7 nation – 54th for Toronto, Ontario and Canada isn’t acceptable.” The report, which was created by World Bank consultant Michael de Lint (also of RESCON), includes the recommendation from RESCON’s director of building regulatory reform and technical standards that the Ontario government complete the following: 1. Pass a Transparency Act to improve timelines and support a transparency checklist. 2. Establish a common data or file platform for electronic permitting to allow the move to a state-of-the-art digital system. 3. Require a coordinating professional and supportive documentation to ensure all submissions are complete and accurate, leading to faster approvals.

anyone. Period,” he said. “When it comes to rent control, we’re going to maintain the status quo.” As an industry that looks forward to the day rent controls are eradicated, what can be done in the meantime? Here are a few key areas that will need to be addressed as the province moves toward an era of change—one that hopefully encourages rather than waylays the development of affordable rental housing: 1. A change to the government’s rent increase guideline FRPO has been advocating a move towards a more sustainable CPI + “X%” cap on rent increases for existing buildings, and for a rolling exemption to the guideline for new construction. 2. Vacancy decontrol and above-guideline increases (AGIs) These provisions allow for periodic catch-up in rents that would otherwise be frozen by legislation. FRPO will continue to educate government decision-makers on the importance of these provisions. 3. Streamlining planning and zoning approvals Too many layers of municipal and provincial regulations are interfering with the pace of new construction. Streamlining these costly, onerous approvals is an essential step to speed up the development process. 4. Tax exemptions and incentives Exploring government supports that help reduce the financial burden of new purpose-built apartment construction is a must for the industry to grow.

MOBILE FRIENDLY

| www.REMInetwork.com | July/August 2018 | 27

MARKETING >>

Must-Have Amenities for the Modern Renter Features and services for tenants of all ages by Chaim Rivlin, rentseeker.ca

uilding amenities have come a long way, and like price and location, they can have a significant impact on the type of tenant a rental property will attract. Gone are the days that advertising the words “swimming pool” was enough to woo highcalibre tenants away from the competition. Today’s discerning renters want the types of services and features once reserved for upscale hotels. And just as no two amenities are exactly alike, nor will they attract the same demographic. While an apartment offering larger units and a shaded outdoor play structure will no doubt catch the eye of families with young children, a modern tower featuring a swanky roof-top lounge and

28 | Canadian Apartment | Part of the REMI Network |

yoga room will attract a fleet of young urban professionals. As Jason Turcotte, vice-president of development at Cressey, points out: there are two demographics largely pushing today’s renewed interest in purpose-built rentals— and, interestingly, they’re at opposite ends of the age spectrum. “First there are the Millennials who have high expectations of everything and aren’t willing to wait or compromise. On the flip side is the older demographic who have realized huge gains from selling their family home but don’t want to reinvest all of it into a condo. They’d rather travel, relax and keep their options open.” So, whether you’re a landlord looking to attract a tenant base of mostly tech-savvy

Millennials, or a developer planning a new building aimed at service-seeking Baby Boomers, here are some of the year’s most popular amenities: Party rooms The integration of party rooms in apartment buildings is nothing new, although now they are a requisite for attracting tenants of all ages. The term ‘party room’ generally refers to a private, self-equipped space available for tenants to reserve in advance of their own special event. Depending on the building, these rooms can be rather spacious and offer an array of

MARKETING >>

additional services – although most party rooms today feature audio visual systems, food and beverage prep stations and ensuite washrooms. Rooftop gardens Rooftop gardens and terraces are increasingly popular, coinciding with the demand for green space and communal cooking areas. What used to be considered unusable space now offers a range of fantastic benefits without adding a lot of extra cost to build or maintain. Some rooftop gardens offer panoramic views of the city; are equipped with BBQs, hot tubs and outdoor patio furniture. Best of all, these amenities do wonders to help make a 600-square-foot unit feel like a luxury mansion. Workout rooms and fitness centres Fitness rooms are a mainstay amenity at this point. Gym equipment technology has certainly evolved, and a room with only a few hundred square feet can serve the purpose of a private gym. While many buildings have basic options, modern buildings have much more impressive fitness setups, including basketball courts, yoga and spin rooms. Buildings targeting older tenants will certainly benefit from offering specialized fitness classes. One new residential development near Liberty Village recently announced it will be equipped with a running track on the 2nd floor. Concierge The resurgence of the doorman is a real trend these days with Baby Boomers and Millennials both showing a preference for buildings with an active front desk. Not only is it great for security, but it also adds a personal touch. Several new buildings are incorporating a concierge desk into their lobbies – although some are opting for the digital kind; that is, cameras to monitor who comes through the door, and can even react in real-time.

Theatre rooms Who wouldn’t want access to their own private movie theatre with high-end screens and enough reclining chairs to accommodate up to a dozen guests? Particularly in the downtown core, theatre rooms are increasingly common…and impressive. Certain buildings even boast high quality stereo systems that can make watching ‘a movie at home’ a whole new experience. Energy efficient appliances Although we generally think of amenities as communal spaces offered throughout a building, amenities can also include specific features that help enhance the tenant experience within their units. For many renters, knowing whether their building is individually metered matters a lot more than whether there is a steam room located next to the fitness centre. Energy efficiency is a huge factor driving today’s renters and they will certainly seek out those apartments equipped with windows, appliances and systems built with efficiency in mind. Extravagant or wasteful? You decide! Builders and developers have always used amenities to woo new tenants. In recent years, as tenants’ needs have shifted and technology has evolved, we’ve seen some unique new services and features enter the amenities space: rock climbing walls, dog washing stations, cold lockers and wine sellers being just a few. Although these ‘niche’ amenities aren’t found in every building, and some tenants dismiss them as wasteful or extravagant, others would argue that a fenced-in dog enclosure is integral to their existence. With the exorbitant price of real estate forcing families to rent longer, people are in need of features that support their stage of life. A decade ago, you likely wouldn’t have seen apartments featuring daycare centres and play rooms; today outdoor play spaces are becoming increasingly common.

Beyond Wifi All types of tenants today want their abodes equipped with Wifi, but soon it will require so much more than that. As the Internet of Things continues to expand so does the list of high tech amenities. Luxury items that make our lives easier are highly sought after, and technological advancements are making them so much easier to come by. Co-working spaces With mobile technology changing the way we work, tenants driven by “work-life balance” will no doubt be seeking co-working spaces in their apartment buildings. Several high-end condos are already equipped with these modern, comfortable office rooms so that mobile tenants can punch in and out on their own terms. The recent surge in the number of shared office spaces in the downtown core is an indication of how in-demand this amenity will be. Enhanced infrastructure Imagine telling your kids about old street lights and crosswalks that didn’t react in real- time to traffic signals, or adjust to traffic flow – that they just ran on a timed system? While this may not be the most interesting conversation to have, enhanced infrastructure in buildings of the future will integrate with bike and pedestrianfriendly streets – “smart streets” that react in real-time and monitor pedestrian behaviour. While that may include some advertisements here or there, the technological advancements offered by monitoring such information will be truly remarkable. As development surges across our cities, one thing is certain: we can all anticipate some fantastic new amenities designed to suit our unique ages and stages. The bar is high, and it will only get higher. RentSeeker.ca is an award-winning Canadian Real Estate Search and Real Estate Marketing website. For more information, follow @RentSeeker on Twitter and Facebook. | www.REMInetwork.com | July/August 2018 | 29

NEWSWORTHY >>

Industry Hot Topics Starlight and Blackstone form joint Canadian venture

Hollyburn acquires Vancouver office building

ollyburn Properties, Vancouver’s largest owner/operator of apartment buildings, has expanded its portfolio to include an office building located at 1155 West Pender. The new property, ideally located in Vancouver’s city centre, is set to become the company’s new head office in early 2020. In a time when the downtown Vancouver office market has the second lowest vacancy rate in North America at sub five per cent, the move offers the company promising opportunities to further expand and develop. And Hollyburn isn’t alone in recognizing the benefits of a central downtown office—the neighbourhood is rapidly transforming with new commercial property vendors snatching up available space, including: Reliance Properties, Oxford Properties, and Bentall Kennedy. Sharing the building with Hollyburn will be anchor tenants Continuing Legal Society and Bazinga Technologies, both with full floor plates. The central location presents a number of benefits for Hollyburn, including: easy access to public transportation; reputable restaurants and shops; close proximity to 30 of Hollyburn’s downtown apartment communities; and according to Hollyburn’s Allan Wasel, the fact that the property “satisfied [their] short-term requirements as an owner user on a 11,400 sq ft floor plate with 12-foot ceilings, [their] medium-term requirements of repositioning the property for accelerated rental growth, and [their] long-term requirements as a property with strong redevelopment potential on a 16,511 square foot site with dual Hastings and Pender street frontages.” Hollyburn Properties, a Canadian-owned company founded in Vancouver over 40 years ago, currently manages and operates 90 rental communities nationwide, with over 5,600 suites across Vancouver, Calgary, Toronto and Ottawa. 30 | Canadian Apartment | Part of the REMI Network |

n late June, Starlight Investments and an affiliate of Blackstone Property Partners announced they formed a joint venture to acquire a portfolio of six multifamily buildings comprised of 746 units. The portfolio is a mix of high- and low-rise concrete buildings strategically located in the urban cores of Montreal and Toronto, both markets that continue to benefit from strong employment and solid population growth. Five of the buildings are located in Toronto. “Blackstone is excited about the opportunity to enter the multifamily sector in Canada with a partner that has a national presence and proven track record,” said Olivia Hamlet, Managing Director at Blackstone. “We believe in the multifamily fundamentals in Canada’s major cities and hope to do more in the space.” Blackstone is a global leader in real estate investing, with approximately $120 billion in investor capital under management. Starlight’s portfolio consists of approximately 36,000 multifamily units across Canada and the U.S. and over 5.3 million square feet of commercial properties.

Alignvest launches Canadian student housing investment trust

lignvest Management Corporation announced it has launched Alignvest Student Housing Real Estate Investment Trust (ASH REIT), an investment vehicle focused exclusively on consolidating the highly-fragmented Canadian Purpose-Built Student Accommodation (“PBSA”) real estate sector. ASH REIT has launched with over $65 million of capital commitments. Together with access to substantial additional capital from Alignvest and proceeds raised from subsequent offerings, ASH REIT is well-positioned to acquire high quality PBSA assets and quickly become the largest owner/ operator in Canada. “We are pleased with the response of so many investors across Canada who share in our enthusiasm for ASH REIT,” said Drew Coles, Chair of the Board of Trustees of ASH REIT. “We feel positive about surpassing our initial target for the fundraise. This is a testament to the strength of the strategy, our experienced management team and the attractiveness of our offering.” ASH REIT closed on the purchase of its first PBSA asset at 181 Lester Street in Waterloo, Ontario, in July 2018. This asset is a 455-bed (18-storey) high quality purpose-built building that is over 98 per cent leased for the upcoming school year, and strategically located between the University of Waterloo and Wilfrid Laurier University. Reza Satchu, Managing Partner of Alignvest said: “We are excited to bring this investment strategy to Canadian Investors. The low-risk and low market correlation of the strategy combined with the unique upside of the Canadian PBSA market presents an attractive risk/reward proposition for investors.”

NEWSWORTHY >>

Historic rental building undergoes transformative renovation

aeccity Studio Architecture, a Vancouver-based practice, recently completed a major revitalization of a threestorey, 1920s wood-framed apartment building comprised of 19 units. The historic property, located at 2930 Cambie Street, has maintained its modest yet engaging street presence along Cambie Corridor, one of the city’s major arterial routes. “We wanted to give new life to an old building, while simultaneously honouring its previous contribution to the city,” explains Travis Hanks, Haeccity Principal, “At a time when buildings are disappearing along the Cambie Corridor, we had an opportunity to ensure these homes would flourish into a new era.” The project involved a comprehensive upgrade of all systems and interiors, including a more effective suite layout that resulted in an additional five units and new shared amenity spaces. All the units were updated to align with contemporary lifestyles, complete with modern fixtures and built-ins. As this was the first renovation in the building’s history, a large accumulation of antiquated building components were discovered—a kind of architectural archive of obsolete building technologies. The design team realized early on the importance of finding a meaningful way to physically and conceptually embed these objects and materials in the building’s new expression.

Toronto may extend reach of retrofit financing

rivate landlords and condominium corporations in Toronto could gain access to a loan fund for energy upgrades if City Council agrees to open a longstanding retrofit financing scheme for municipal buildings to a larger pool of borrowers. A report to Toronto’s Parks and Environment Committee reiterates that such a move would have no budgetary impact since loan recipients fully cover the city’s borrowing costs. Toronto Community Housing has been the largest beneficiary of the Sustainable Energy Plan Financing (SEPF) program thus far — receiving $35.2 million to put toward deep energy retrofits in nine buildings — as $53 million has been invested since 2013 in both the city’s portfolio and community-based, not-for-profit holdings. Toronto leverages debt financing for the upfront capital, which is then repaid as loan recipients realize their energy cost savings. To qualify, projected energy savings must be sufficient to offset a debt service schedule no greater than 20 years. The city’s cost-neutral outlay would engender the greater projected benefit of curbing greenhouse gas (GHG) emissions in pursuit of Toronto’s targeted 80 per cent reduction of GHG emissions, relative to 1990 levels, by 2050. That’s also the rationale for the recommendation to expand the program to private commercial and multifamily buildings, the industrial sector, health care and educational facilities. “Expanding eligibility requirements will allow building owners and managers to implement energy conservation, renewable energy and greenhouse gas reduction projects creating significant direct, indirect and induced employment, contributing the City’s TransformTO targets, reducing operating costs and creating revenue streams,” a report to Toronto’s Parks and Environment Committee states. “Providing innovative financing to accelerate building retrofits is a key strategy in the TransformTO plan. Expanding SEPF eligibility to a broader range of building owners is a fast and effective way to begin delivering on this objective in a way that has no net financial impact on the City,” agrees Mary Pickering, vice president, program and partnerships with The Atmospheric Fund, in a letter of support. Since the SEPF program’s forerunner, the Better Buildings Partnership, was launched in the early 1990s, the funding has enabled retrofits of more than 50 million square feet of space, calculated to have reduced cumulative carbon dioxide emissions by 400,000 tonnes. Since 2013, SEPH has funded projects delivering an estimated 115,000 equivalent megawatt-hours of electricity and natural gas savings. The Atmospheric Fund urges a deeper pot of funds, beyond the $7.2 million allocated for 2018. “The cost of a deep retrofit of a single multi-residential building, based on TAF’s experience, is typically in the range of $2 to $5 million. With significant expansion of the program to more sectors, and an emphasis on deep retrofits, a much higher level of recoverable financing will be needed in future years,” Pickering’s letter notes. | www.REMInetwork.com | July/August 2018 | 31

INSURANCE >>

Insurance Claim Denied Why good advice is always a smart investment by Andy Schwartze

very day, all across North America, thousands of insurance claims are settled by competent insurance professionals dealing with honest claimants who’ve had an unfortunate loss and are fully entitled to reimbursement under the terms of their respective insurance contracts. But sometimes mistakes happen. Insurance policies are complicated documents. These contracts are designed, updated and tweaked over time so that the coverage “intent” of the insurer can be put forward, keeping in mind that court interpretations must also be considered. Many insurance policy clauses are actually the result of court cases where the insurer’s intent was overturned by a court, resulting in a claim payment that was never intended to be insured. On the other hand, every now and then we run into a situation that results in a totally inappropriate denial of a claim. Not every insurance company employee necessarily has the training to understand what a policy covers, and on the underwriting side of the business, that is not dangerous. But when this spills over into the claims arena, it is particularly sad because oftentimes claimants will simply accept the denial as being unavoidable. That’s where the mistrust comes from. We hear things like, “insurance companies try to

32 | Canadian Apartment | Part of the REMI Network |

avoid paying” or “I didn’t read the fine print” or other statements that point to insurers being nasty. In reality, insurance companies hire everyday people, just like all industries do, and in order to serve their customers well, they need to make sure their employees are properly trained. For the buyers of insurance, one excellent way to ensure that coverage is proper and that legitimate claims are paid, is to have an expert available to you. Whether this is a broker or a consultant is irrelevant— we don’t figure out contracts, we hire a lawyer and we don’t read the tax act, we hire an accountant. Take this case for example: a tenant in a high-rise had properly purchased a tenant’s insurance policy, but had done so directly from the insurer without the use of an advisor. One unfortunate day, the ceiling drywall collapsed, resulting in a nasty mess and some damaged furniture and belongings. One call to the insurance company should have set the right wheels in motion and ended with a paid claim. Instead, the tenant received a letter denying the claim on the basis of an exclusion relating to dampness, wear and tear, and other totally irrelevant reasons. This claim was a simple

case of “falling objects” causing damage, whatever those objects might be (in this case, ceiling pieces), and this particular peril is covered in every property insurance policy issued in North America. A claim like this can be significant to a renter. The insurance premium, if it came with a typical $500 premium cost, would normally include a commission to a broker of $100. For that $100 the policyholder would have full 365-day-a-year access to insurance advice relating to that policy. By buying directly from the insurer, the policyholder would not save the entire $100 but probably about $50. Over a 10 year period, that would be a savings of $500 and, obviously, over 20 years a savings of $1,000. But if the claim is over $1,000 (which in this case, it was), and was denied, then the money saved was wasted and the cost of the insurance obviously that much higher. A broker would have spotted the incorrectness of the denial in a matter of seconds and made certain the insurer honoured the policy and paid the claim. There’s an old saying: “If you think hiring an expert is expensive, wait until you hire an amateur.” Good advice is worth a great deal. Its value should never be underestimated.

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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Smart Ideas

TAKE THE PLUNGE Swimming pools are so last decade. Here are some new amenity options sure to ‘wet’ the appetites of today’s fitness-thirsty tenants. Aquatic Climbing Walls

Swim spas

Lacking the space for a full swimming pool, or looking for ways to enhance your fitness offerings? A swim spa might be the answer. Think hot tub, but stretched out lengthwise. Swim spas have plenty of warm water and soothing jets, but their rectangular shape gives bathers enough room to extend their arms and legs while swimming in place. “We’ve seen a lot more interest in swim spas over the past few years from homeowners who want to enjoy the fun and fitness aspects of going for a swim, but don’t want the expense or headaches of a major construction project to install a full-size pool,” said Philip Edey, General Manager of Arctic Spas. Arctic Spas’ line of custombuilt swim spas are easy

to install and require no digging, construction or special equipment. What’s more, the pools are extremely energy efficient—costing about $2 a day to operate—and low maintenance due to their advanced control technology. Measuring approximately five metres in length, swim spas have all the pleasurable features of a hot tub, but the addition of counter swim jets and resistance tether options that allow for advanced swimming and fastener points to attach additional exercise equipment. Of course, when the swimming and exercise is over, these spas are spacious enough for several bathers to relax and unwind, making it a great amenity for any building or home. www.arcticspas.ca

34 | Canadian Apartment | Part of the REMI Network |

Everyone loves rock climbing, so why not combine the fitness benefits of a rock-climbing wall with the refreshing fun of your swimming pool? While aquatic climbing walls, slides and ziplines are already hugely popular at large commercial pool facilities everywhere, the trend is now moving into the residential pool space. We predict it’s only a matter of time before apartment buildings catch on, too. Manufacturers like AquaClimb for example, now offer a variety of innovative climbing walls that can be installed on indoor and outdoor pool decks. The units curve and hang over the pool so that the natural re-entry into the water is feet first and the descent is away from the pool wall and edge. More than just a poolside attraction, climbing walls are fun, safe and easy to use and install. What’s more, they can be custom designed to fit your space and décor, whether your pool is indoors or out. www.aquaticclimb.com

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