Canadian Apartment Magazine * June 2020 by MediaEdge

Apartment CANADIAN

VOLUME 17 / NUMBER 3 / JUNE 2020

WHO’S WHO 2020

SPONSORED BY:

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

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

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

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

T H E

INCLUSIONARY

ZONING

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

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In Omotayo v. Da Costa, 2018, the defendant occupier, Metro Toronto Condominium Corporation 1292 (MTCC 1292), was successful in dismissing the plaintiff’s claim and the assailant’s crossclaim when a member in attendance at a condominium board meeting struck another meeting attendee with a chair. Justice Nishikawa found that the duty the condominium corporation owed to the plaintiff did not include preventing an assault that occurred during their condominium board meeting. Facts of the case T he plaintif f, J ac queline O mot ayo, was a resident and former chair of the condominium corporation. The defendant, Jose Da Costa, was also a resident and former president of the condominium corporation. An emergency board meeting was held on Oct. 4, 2011, to discuss the future organization of the board as Ms. Omotayo had recently been removed from her position as chair and Mr. Da

By Steven Chester

SERVING THE FACILIT Y CLE ANING & MAINTENANCE INDUSTRY

Let’s face it, we all want our businesses to be social media rock stars, and we know it ain’t easy. It’s becoming more prevalent that some of the most popular social media platforms have been inﬁltrated by those who game the system. This includes those that buy fake followers and “likes” in order to create the illusion that their social media proﬁle is more popular than it is. These fake followers are predominantly bots – accounts run by software designed to look and act like real people.

APRIL/MAY 2017

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

CARING FOR FRAGILE FLOORS

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

MALL GERMS: TOP FIVE HOT SPOTS

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

500 followers who are in your target market REMEDYING FOUR that actually want to hear from you? COMMON CARPET As a consumer, it’s even simpler, as PROBLEMS deceptive tactics are easy to spot. If you’re using underhanded methods to promote your business, this can be viewed as a reﬂection of your product or service. Your integrity is at stake. This is one of the more complex topics that can’t be fully covered in this space. As always, I invite you to stay social and continue the conversation on Twitter at @Chestergosocial where I’ll share a link to the full article.

SCENT OF

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

www.REMInetwork.com | June 2018 15

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CANADIAN APARTMENT WHO’S WHO 2020

IN THE CANADIAN APARTMENT INDUSTRY

MANAGE ONLY The DMS Group MetCap Living Management Inc. Briarlane Rental Property Management Inc.

CERTIFIED NUMBER OF RENTAL UNITS BUILDING

23,623 22,850

OWN ONLY Lanesborough Real Estate Investment Trust I.G. Investment Management, Ltd.

CERTIFIED NUMBER OF RENTAL UNITS BUILDING

MANAGE & OWN

CERTIFIED NUMBER OF RENTAL UNITS BUILDING

1,170

CAPREIT

45,129

1,107

Boardwalk Rental Communities

33,263

15,057

Manulife Real Estate

1,052

Starlight Investments

31,303

Société de Gestion Cogir

14,000

Ivanhoe Cambridge

984

Realstar Management

28,328

Medallion Corporation

11,129

946

Homestead Land Holdings Limited

27,471

Sterling Karamar Property Management

Centurion Asset Management

10,979

QuadReal

846

Northview Apartment REIT

26,723

GWL Realty Advisors

9,255

Fiera Properties

658

Société de Gestion Cogir

10,000

Devon Properties Ltd.

7,150

Vancor Group Inc.

381

The DMS Group

23,623

Shelter Canadian Properties Limited Berkley Property Management Inc.

5,896

Osgoode Properties

266

5,667

Concert Real Estate Corporation

167

MetCap Living Management Inc. Timbercreek Asset Management

22,850 21,580

| www.REMInetwork.com | June 2020 | 17

CANADIAN APARTMENT WHO’S WHO 2020

CERTIFIED RENTAL BUILDING

RANK

UNITS MANAGE

OWN

BUILDINGS BOTH

TOTAL

MANAGE

OWN

BOTH

TOTAL

CAPREIT

45,129

551

Boardwalk Rental Communities

33,263 33,263

211

Starlight Investments

31,303

476

Realstar Management

28,328 28,328

262

Homestead Land Holdings Limited

27,471

225

Northview Apartment REIT

26,723 26,723

344

Société de Gestion Cogir

14,000

10,000 24,000

108

159

The DMS Group

23,623

191

MetCap Living Management Inc.

22,850

Timbercreek Asset Management

21,580 21,580

251

Skyline Apartment REIT

18,336

209

Killam Apartment REIT

16,325

199

Briarlane Rental Property Management Inc.

15,057

Minto Properties Inc.

1,069

Berkley Property Management Inc.

5,667

Mainstreet Equity Corp.

Medallion Corporation

Sterling Karamar Property Management

InterRent REIT

QuadReal

Morguard

Drewlo Holdings Inc.

GWL Realty Advisors

Park Property Management Inc.

Centurion Asset Management

Globe Property Management

Devon Properties Ltd.

7,150

Shelter Canadian Properties Limited

5,896

Osgoode Properties

Royal Property Management

BentallGreenOak

M&R Holdings

Concert Real Estate Corporation

Prospero International Realty Inc.

18 | Canadian Apartment | Part of the REMI Network |

150

191 -

15,057

215

11,764

12,833

5,817

11,634

11,213

215

299

320

272

11,129

10,979

134

846 841

10,226

9,115

9,961

8,800

9,641

9,338

9,255

946

8581

8,581

7,481

8,427

7211

7,211

5 3

246

26 66

66 53

7,150

153

599

6,495

5,125

5,690

5,000

150

4,996

299

266

167 4,063

4,810

3,908

4,075 4,063

153

2 81

22 81

CANADIAN APARTMENT WHO’S WHO 2020

CERTIFIED RENTAL BUILDING

RANK

UNITS MANAGE

OWN

BUILDINGS BOTH

TOTAL

MANAGE

OWN

BOTH

TOTAL

Kelson Group

3,984

Williams and McDaniel Property Management

2,946

Colliers International

Old Oak Properties Inc.

O'Shanter Development Compant Ltd.

Apollo Property Management Ltd.

2,879

2,481

450

1,800

2,250

2,100

The Brown Group of Companies Inc.

717

1,407

Kings College Management Limited

2,100

Greenrock Property Management Ltd.

2,000

WJ Properties

1,907

Manulife Real Estate

793

1,845

Lawrence Construction/Grant Management

805

1,664

ONNI Group

1,657

Southwest Properties Ltd.

1,583

Melchior Management

462

1,093

1,555

Lameer Management

1,059

489

1,548

Kente Property Management

SABJOY INC

Twin City Management Ltd.

Preston Group

1,182

Davpart Inc.

1,180

Lanesborough Real Estate Investment Trust

State Building Group

I.G. Investment Management, Ltd.

Niot Investments Holdings Ltd.

Ivanhoe Cambridge

Vancor Group Inc.

BlueStone Properties Inc.

Kroma Management Ltd.

64 65

1,052 859

1,216

1,184

2,140

2,124

2,100

1,107

984

1,111

15 15

1,107 1,000

381

1,170 1,111

1,353 1,184

1,170

108

1,000

5 19

984

7 17

19 7

489

978

961

913

Choice Properties Real Estate Investment Trust

858

Real Estate 360 Property Advisory

823

| www.REMInetwork.com | June 2020 | 19

CANADIAN APARTMENT WHO’S WHO 2020

CERTIFIED RENTAL BUILDING

RANK

UNITS MANAGE

OWN

BUILDINGS BOTH

TOTAL

MANAGE

OWN

BOTH

TOTAL

BayShore Property Management

712

The Enfield Group Inc.

700

McCor Management

661

Fiera Properties

Colonnade BridgePort

628

Equitable Real Estate Investment Corporation Ltd.

614

Westcorp Property Management

520

610

Northland Properties Inc.

552

Atlantis Realty Services, Inc.

Goodwood Property Investment Ltd.

Lionheart Property Management Inc.

400

Gulf Pacific Property Management Ltd.

348

Warrington PCI Management

346

Richmond Community Management Services Corp.

259

Canahahns Company Limited

224

Rentalys

208

17A Properties

200

Sluis Properties

185

Blackwood Partners Inc.

Glenview Management Limited

Equium Group

132

Wilson Blanchard Management Inc.

122

Summa Property Management

Regency Group

Taft Management Inc.

Triovest Realty

Dayhu Investments Ltd.

ICC Property Management Ltd.

Ronmor Holdings Inc.

20 | Canadian Apartment | Part of the REMI Network |

658

520

520 400

209

208

174

49 14

400

174 161

8 3

2 1

3 5

161

49 14

MetCap_CPM_WhosWho_Supplement_2017.pdf

2017-03-20

12:28 PM

RANKED APARTMENT MANAGEMENT COMPANY

CMY

MetCap Living knows the importance of your property investment. With over 30 years in professional property management and experience in owning and managing all aspects of multi-unit housing, we have the expertise to boost your NOI. From Marketing, Leasing, Utilities and Site Management, Collections and Accounts Receivable, we tailor our services to your needs. We manage over $2 Billion in assets owned by private families and institutional investors. Our focus is on revenue growth and vacancy reduction, while maintainting strict control over expenses. We also To ensure the health of your bottom line, contact: Kazi Shahnewaz, Director, Business Development Cell: 647.887.5676 k.m.shahnewaz@metcap.com www.metcap.com

A premier real estate services company in Canada DMS Property Management is one of Canadaâ&#x20AC;&#x2122;s leading apartment managers with a portfolio of over 20,000 units

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| www.REMInetwork.com | June 2020 | 21

COVER STORY >>

RENTAL HOU OF THE FUTU How will COVID-19 impact residential building design?

COVER STORY >>

USING URE By Erin Ruddy

When architects set out to design a living space, the end result is informed by many factors â&#x20AC;&#x201D; occupant lifestyle and aesthetics being among them. Add in the threat of a deadly pandemic, and what used to be the hallmarks of multi-residential building design have suddenly altered considerably. Today, developers and designers planning purpose-built rental communities must incorporate health and safety in a way theyâ&#x20AC;&#x2122;ve never had to before.

| www.REMInetwork.com | June 2020 | 23

COVER STORY >>

Flexible amenity spaces With communal spaces and shared amenities being important features of any building, particularly in apartments where the units are on the small side, King revealed changes are already underway to how these areas are being approached. “We are looking at how to re-program both our indoor and outdoor amenity spaces. We are looking to create more flexibility to allow for continuous use by individuals or smaller groups,” he said. “Bookable spaces where students can study...conference rooms to support working from home...outdoor dining areas and unique play spaces — these features are going to become even more important in the future.”

5507–5509 Dundas St. West 21 Storeys / 251 Units / 276,525 square feet

onathan King, principal at the architectural firm BNKC has led the design on several notable projects — including two Toronto apartment developments currently underway at 2720 Danforth Ave and 5509 Dundas, and the East City Condos redevelopment project in Peterborough. With King’s experience in residential design and the pandemic continuing to pose a threat, his insight into what will emerge in terms of trends, is not only timely, but crucial. “The main drivers are aesthetics, durability, life-cycle costs, flexibility — and now infection control in the wake of COVID-19,” he said. “I believe that the consideration of materials used in public and high traffic areas and design of the mechanical systems will be reconsidered.” Designers will strive to achieve a balancing act by creating a welcoming, visually-pleasing space while also prioritizing cleaning and maintenance, factoring in the need for potential retrofits should it be necessary to reduce the spread of future infections. “Also, technology will play an even greater role in helping us manage these spaces,” he continued. “For instance, allowing residents to enter their building and call an elevator from their mobile device without touching a surface as they pass up to their suite, or booking a conference room for a work-from-home meeting. System integration will play a bigger part of future solutions.”

24 | Canadian Apartment | Part of the REMI Network |

5507-5509 Dundas is a catalyst to the redevelopment of central Etobicoke by the City of Toron-to to promote density through mixed-use, transit-oriented development. One of the first highrise developments in the neighbourhood, this 21-storey rental apartment targets young profes-sionals who desire easy access to Pearson Airport and Downtown Toronto, while avoiding the high cost of the downtown housing market. The building offers generous indoor and outdoor amenities that encourage a social culture for the tenants, including a spacious lobby, a bike repair workshop, pet wash station, and exercise club. The 21-storey tower is accompanied by a series of townhomes, addressing the need for quality purpose-built rental accommodation of all kinds. Young professionals seeking beautiful design and serviced amenities that don’t necessarily want to buy into the condo market will likely make up the bulk of the tenant-base.

COVER STORY >>

2720 – 2734 Danforth Avenue 9 Storeys / 81 Units / 59,530 square feet 2720 Danforth Avenue is a new purpose-built rental building coming soon to an area of Toronto that is only now beginning to experience significant infill. Situated along a transit-rich corridor, the mid-rise apartment will contain 81 units and offer a mix of retail and a ‘hotel’ component at the second level. The façade is masonry with a series of punched windows, responding to the eclectic urban fabric of the neighbourhood and respecting the cultural assets that already exist on the site. The designers took their inspiration from two heritage buildings to inform the exterior and complement the streetscape. The first building is in scale with many along the Danforth. The second is late 18th century and is one of Toronto’s first inns, The White House Hotel (1782).

Rendering by Brick Visual

Affordability As physical distancing and work-from-home measures continue to keep many people out of the office, the pandemic is showing us that remote work is viable, and that in some cases, it may even be preferable. “While the jury is still out on what the actual outcomes may be in terms of work productivity in the wake of COVID-19, what’s clear is that working remotely has, for some, proved to be possible,” King said. “This may open the door for some young people in the workforce to reconsider the affordability challenges they face in renting in Toronto; they may even consider moving further afield. We could see a mass migration to the suburbs and a need for residential design in those places to appeal to a young “urban” clientele in search of a more balanced lifestyle and, more importantly, space.” In fact, this movement is already happening with densification initiatives underway in several GTA satellite cities. To contend with the population boom, several developers are building mega mixed-use projects to accommodate the growth and appeal to this very demographic King speaks of. The East City residential development at the St. Joseph’s Hospital in Peterborough is a great example of this. Scheduled for completion in fall 2020, the old St. Joseph’s hospital site is currently being converted into offices, condos and rental units. Aside from COVID-19 and ongoing supply shortages, what other forces are reshaping multi-residential building design? According to King, affordability and a diverse spectrum of unit types are as important as they were pre-pandemic. “With the City of Toronto’s mandate to increase housing supply, specifically around purpose-built rentals, new development continues to be a major priority — even with the economic slowdown caused by COVID-19,” he said. “This is a fact that developers are attuned to. They are focused on delivering new housing units to the regions in need — upgrading or infilling existing rental sites, through programs like the Tower Renewal Project.” Meanwhile, new technologies, collaboration and better streamlined processes are helping to bring more rental

projects to fruition. While international travel might be off the table for most individuals, at least for the foreseeable future, the need for adequate housing will never go away. “What the COVID-19 situation has demonstrated is that it’s very possible to work remotely with technologies like VPN, Zoom, and Teams, but as powerful and liberating as these tools may be, they are no substitutes for face-to-face interaction and collaboration,” King said. “The challenge is not only in our ability to connect through technology, it’s also a matter of our mental health...the need for social interaction and access to nature.” Ultimately, the question of affordability must be coupled with all these other needs human beings are born with. But one thing remains certain, rental apartments of the future won’t resemble what they used to. | www.REMInetwork.com | June 2020 | 25

FEATURE >>

Reinventing the Suburbs Mega mixed-use projects set to transform GTA by Erin Ruddy The Greater Toronto Area is in the midst of a major growth spurt, with estimates from the Ontario government predicting a population increase of 50 per cent over the next 25 years. With international migration driving this rapid expansion, and the growing technology sector spurring a broader business boom, developers and planners have been busy seeking viable, long-term solutions to accommodate the unprecedented growth.

n June 5th, the Urban Land Institute hosted a webinar featuring successful “mega mixed-use projects” currently underway. Looking at transit, employment, health care, education, community facilities and general infrastructure, the panelists presented their master plans for a full spectrum of highdensity housing. “Explosive growth in the GTA has been contained within an ecological greenbelt,” said moderator Rob Spanier, President of Spanier Group and Chair of the Advisory Board at the Urban Land Institute, Toronto District Council. “To accommodate the more than 100,000 new residents per year and the associated economic expansion, municipalities in the Greater Toronto and Hamilton Areas have been advancing the development of their urban centres in a way that will ultimately deliver a series of vibrant edge cities.” Ken Greenberg, urban designer, teacher and principal at Greenberg Consultants, spoke of the Greater Golden Horseshoe, presenting a vision for a multi-centered region leveraging mass transit infrastructure expansion. From Markham to Vaughan, Brampton to Oshawa, Toronto’s satellite cities — once considered

26 | Canadian Apartment | Part of the REMI Network |

auto-dependent suburban communities peppered with strip malls and dormant manufacturing facilities — are now being reimagined as “work, live, play” destinations with vibrant downtown cores of their own. And at this point, it appears not even the novel coronavirus can stop the momentum. “Particle accelerator” Referring to COVID-19 as a “particle accelerator, forcing us to do things in a more resourceful and urgent way,” Greenberg said the pandemic has done anything but waylay the multi-centric vision for the suburbs he and his fellow planners share. “We are in the throes of a major paradigm shift,” he said. “With immigrants and visible minorities making up over 50 per cent of our population, we need to change how we move, live, and access services. We need to move toward a more sustainable future.” But achieving that future, according to Greenberg, means boldly going back to bikes. It means planning urban centres to be walk-centric versus auto-dependent, with mass transit facilitating it all.

FEATURE >>

LEFT: A rendering of the Square One mixed-use development currently underway in Mississauga city centre. RIGHT: A rendering of the “Lakeview Village” development, which will soon occupy an abandoned power plant just west of Mississauga.

Leslie Woo, Chief Development Officer at Metrolinx, revealed that high-level plans for developing the region have been in the works for more than two decades. “The building blocks started in 2001, but the real catalyst was Ontario’s 2009 investment of $9.5 billion into expanding mass transit throughout the GTA,” she said. Bringing more confidence to edge city densification initiatives, the province has just announced an additional $60 billion in funding. “This will enable us to invest in stations at the main corridors, technology for smart cars, infrastructure, and the amenities needed for these cities to pivot away from a heavy reliance on automobiles,” Woo said, adding that collaboration and solid planning were integral to the process. And with several mega mixed-use projects currently underway, it’s no longer just a vision, but a reality in the making. Bookending the east and west ends of Toronto, the cities of Mississauga and Scarborough are in the midst of welcoming two massive new developments located at Square One Mall and Scarborough Town Centre. Presenting master plans for both sites, Marc Cote, Head of Development at Oxford Properties Group, said the goal is to create “walkable, sustainable mixed-use communities” with open spaces and amenities galore. In Mississauga, the 18 million square foot development will accommodate 35,000 residents, while supporting employment growth and making proficient use of public and private investment in transit and community infrastructure. The site will include two residential towers (one rental and one condominium) for a combined total of 1,000 new units. Scarborough Town Centre, meanwhile, will include three towers in total offering 1,300 units. In both cases, Cote said that the shopping centres and transit availability were instrumental to the projects moving forward. West of Mississauga and ideally located on the shore of Lake Ontario, Argo Development Corporation, one of the five partners of Lakeview Community Partners Limited, is embarking on a project known as Lakeview Village. Brian Sutherland, Director of Development at Argo, said the new community will breathe

much-needed life into Mississauga’s waterfront as it transforms an abandoned coal-fired power plant into a vibrant, sustainable mega mixed-use community where residential density and job potential abound. Set on 177 acres, the master plan includes 8,000 residential units, 67 acres for open waterfront space, and a continuous waterfront trail. Features like diverse housing, dedicated pedestrian and cycle pathways, connection to transit, and year-round recreational and multicultural programming have already earned the development a BILD Award for best new community (planned/under development). Demand for housing amid COVID-19 Despite the economic slowdown imposed by the ongoing health crisis, the four panelists concurred that demand for a full spectrum of housing triggered by the explosion of growth in edge cities is not likely to decline. “The key challenge is to ensure we can continue at speed,” said Woo. “This [health crisis] has driven home the “work, live, play” concept and helped us conceive of an edge city with greater emphasis on hygiene, health, safety and security.” “It has been eye-opening,” added Cote about the impact of the pandemic on Oxford’s mega mixed-use projects. “It raises questions about the future — about how people are going to congregate, socialize and work.” It also underscores the importance of resident access to open space and nature. In other words, the timing of it all and the valuable lessons currently being learned, are all going to influence the design of future developments in ways that could not have otherwise been foreseen. “De-concentrating…moving away from one urban centre,” said Greenberg. “If anything, the pandemic has reinforced this idea. People will want to be closer to home, closer to their kids and their neighbourhoods. [COVID-19] has made the concept of distribution throughout multiple urban centres more appealing.” | www.REMInetwork.com | June 2020 | 27

NEWSWORTHY >>

Industry Hot Topics Devimco shares Longueuil mixed-use development plans

evimco Immobilier has joined forces with the City of Longueuil on the development of a major mixed-use project above and surrounding the Longueuil– Université-de-Sherbrooke métro station. Valued at nearly $500 million, this transitoriented residential development with a total area of 1.2 million square feet, will include the construction of 1,200 rental housing and condominium units. It is the largest economic project to be announced in Québec since the start of the COVID-19 pandemic. According to Devimco, the project aims to create a real synergy between the various components, while producing a superior-quality living environment for future residents. “Our Longueuil project will be revolutionary because it will be based on concepts that will respond to the new realities generated by the pandemic,” said president of Devimco real estate, Serge Goulet. “Discussions are currently under way with Québec furniture industry players to adapt the apartments and condos for teleworking.” Featuring two 22-storey buildings for rental units and two 22-storey condominium towers, the rental buildings will overlook a vast lower extension (basilaire) above the

existing métro station. Already served by local businesses, the Longueuil–Universitéde-Sherbrooke métro station site and its surroundings offer opportunities for quality commercial development. The site is already considered a knowledge hub with the presence of three universities: the campuses of Université de Sherbrooke, Université de Montréal and Université du Québec à Montréal (UQAM). “Our project is aligned in every way with Devimco’s philosophy,” said Goulet.

“The recipe is simple, but ambitious. We are responding to Longueuil’s vision by designing a multifunctional urban hub where a combination of experiences is an essential condition for creating a true living environment. What we are developing is an integrated blend of amenities, in spaces where homes, work environments and local services are located side by side. It will also be possible to enjoy cultural and food experiences, and even—as is already the case—to study there.”

New high-rise rental towers planned for Toronto’s West Don Lands

oronto’s West Don Lands community could see a pair of high-rise rental towers in the not-so-distant future, to be designed by Henning Larsen Architects. Plans for the site known as 125R Mill Street include 198 affordable units proposed across 54,455 m² of residential space. Submitted plans show that residents will have access to substantial indoor and outdoor amenities, including a ‘Skylounge’ wrapping around the mechanical penthouse of the taller 45-storey west tower. At ground level, a six-storey podium would contain 23,872 m² of office space and 481 m² of at-grade retail uses. The project would mark the first major office development in the West Don Lands area and the third development to deliver affordable rental housing. Currently, a total of 682 affordable rental units are planned for the West Don lands developing neighbourhood. 28 | Canadian Apartment | Part of the REMI Network |

Doing electrical work on your property? Do it right in three easy steps: 1. File a Notification of Work (permit) with the Electrical Safety Authority 2. Keep a copy of the Certificate from ESA for your records 3. Feel confident that the work was done correctly and legally

If youâ&#x20AC;&#x2122;re hiring someone to do the work, Ontario law states that it must be a Licensed Electrical Contractor. Find one at ESAsafe.com

NEWSWORTHY >>

Rodent activity on the rise rodents and reports of unusual or aggressive rodent behaviour,” said the CDC, advising home and business owners to cover garbage cans, put bird and pet food out of reach and seal small holes where rodents could gain entry into buildings. According to Toronto-based Abell Pest Control, calls across Canada for rat extermination increased by 52 per cent last month compared to March 2019, with calls across the GTA up by 36 per cent.

rban centres across Canada and the U.S. are experiencing a rise in “aggressive” rodent activity due to COVID-19 restrictions shuttering restaurants and cafes. According to the U.S. Center for Disease Control and Prevention (CDC), rats are becoming more aggressive in some cities south of the border as they frantically search out new food supplies. To contend with these outbreaks, pest control workers in many jurisdictions are classified as essential. “Environmental health and rodent control programs may see an increase in service requests related to

Signs of rodent activity: Known to transmit disease and cause expensive structural damage to buildings, Orkin Canada advises multi-res property managers to consult with an expert if they suspect a rat infestation. Signs can include: unsightly holes in lawns and in building foundations; torn up insulation, paper, and cloth found around the property; and complaints of gnawing sounds coming from behind the walls. “Check wiring for chew marks and look out for small, pellet-like droppings,” the Orkin website suggests. To prevent an infestation, apartment tenants should be reminded to keep food preparation areas clean, and to properly dispose of garbage in exterior bins and trash cans. Dumpsters should be well secured and maintained with more frequency as the pandemic continues. In addition, Orkin reminds facility managers to trim back vegetation from building exteriors; seal any cracks or holes with caulk or foam; remove any standing water throughout the property, and keep doors and windows closed.

Vancouver amends bylaw to allow 6-storey rental housing

f approved later this summer, amendments to the zoning and development bylaw for C-2 commercial districts in Vancouver will allow developers and property owners to build taller, denser developments in an effort to increase the city’s inadequate rental housing supply. Currently, the zoning only allows for fourstorey buildings with commercial space on street level and residential space—typically condominiums—on the upper floors. Through the additional two storeys, zoned as “rental-only housing”, developers will have the incentive to build something other than

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condominiums, which traditionally have offered a quicker return on investment. Other requirements put forth include that 35 percent of the new units must be sized for larger families, and that the buildings fulfill enhanced green building requirements, such as the Passive House design standard. The amended C-2 zoning districts for residential rental tenure development will apply to areas outside of recently approved community plan areas, such as the Cambie Corridor, Marpole, and Grandview-Woodland, as well as outside areas currently undergoing

planning processes, specifically the Central Broadway Corridor. Previously, such projects would have to pursue a rezoning application, but with the changes developers can go straight to the development permit process, potentially shaving off between one and two years from the application and review timeline. Although the City of Vancouver does not anticipate a significant increase in new rental housing built within C-2 zoning, there will likely be a shift from some of the anticipated condominium developments to rental.

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PERSPECTIVE >>

Carrying the Losses of COVID-19 Examining the real costs of the pandemic by Chris Seepe

The financial situation of every rental property is as different as a fingerprint, given that each operator applies their own level of experience, understanding, and personal values to the way they manage their building or portfolio. With that in mind, the numbers below can only roughly capture the approximate breakdown of the costs associated with owning and operating a rental property.

evertheless, the overarching conclusion — regardless of the numbers — is that the net profit from a rental property is much lower than tenants, the media and the government seem to think. It’s these same entities who collectively believe residential landlords are playing the system and can afford to carry all the losses of COVID-19. Here’s a rough breakdown of where each investment dollar goes in a six- to 20-unit multi-residential investment property using an average of two six-plexes, one nine-plex, one 11-plex, and two 12-plexes in Oshawa, arguably levying the third highest property tax out of 444 municipalities in Ontario.

32 | Canadian Apartment | Part of the REMI Network |

$1.00 rental income (no HST) 18.8ȼ property tax 02.2ȼ building insurance 03.5ȼ electricity (common area only) 03.4ȼ gas heating (included in rent) 03.4ȼ water/sewer (included in rent) 08.8ȼ repairs & maintenance (including property mgmt. & janitorial) 03.1ȼ Property management, janitorial, placement fees 01.4ȼ Professional fees 44.6ȼ Operating Expenses 39.8ȼ Principal & Interest (5-yr closed fixed, 25-year am, 75% LTV, 3.0% interest) 84.4ȼ Total Costs

15.6ȼ Net Profit before corporate taxes (cash flow) 07.8ȼ Corporate tax (50% “passive” income) 07.8ȼ Net profit after tax BEFORE capital costs (new roof, furnace, boiler, windows, etc.) Capital costs So, on $100,000 of gross income from an average 9-plex rental property, the owner takes home about $7,800 — before paying for infrequent capital costs. Factor in those — for example, replacing the windows every 30 years at $50,000, calling it $1,667 per year; a boiler at year 20 for $20,000, calling it $1,000 per year; a new roof at 15 years for

PERSPECTIVE >> $10,000, calling it $667 per year — and we are now looking at an approximate total of $3,334 per year in capital costs paid from the $7,800 annual take-home pay. Further analysis Although the above is overly simplistic and subject to many sophisticated cost-reduction management techniques and best practices to streamline expenses and maximize return, it provides a baseline value. A new boiler may reduce gas consumption by 30% resulting in a notable equity increase — e.g. a $2,000 gas savings might add $40,000 (at a 5% cap rate). Depreciation (capital cost allowance) will reduce the taxable income too, but the money must all be paid back when the property is sold. A higher amortization period for financing will improve cash flow, but you pay more interest over the term. You could pay off your mortgage quickly — which would substantially improve your cash flow — but then all that equity is “dead” money, which is not working to help you create asset wealth. As a mid-sized landlord myself, I have been receiving insurance quotes for multiple buildings these past three months and every company has been quoting 11% to 15% higher premiums than the previous year despite that I have not made any claims for more than five years. Ontario’s electricity rates went up 55% last November 2019, but was hidden by a 31.7% short-term rebate. My local water/sewer costs went up about 40% in the past five years but rental income was allowed to increase only about 17% over the same period. I couldn’t find a quotable statistic on the number of investment properties that are financed but I remember hearing that perhaps 85% of rental properties have some amount of a mortgage.

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How much money is left over for a landlord to meet all their obligations amidst a pandemic? If a “modest” 10% of tenants don’t pay their rent (despite relief measures and government support) and landlords are restricted from increasing rent to make up for their losses, many will not survive this pandemic. COVID-19 may be the catalyst, but it wouldn’t be the culprit of a collapsing rental property industry. The attraction of leveraging real estate to create asset wealth is a powerful lure but the best advice may be to shed these “bonds” and reduce dependency on lenders. Many of our risks were artificially and unnecessarily created by ill-conceived, short-term legislation enforced by a fundamentally flawed Landlord and Tenant Board. In the rental-housing industry, ignorance of the law may turn out to be the single greatest “excuse” for financial ruin.

Chris Seepe is a published writer and author of two books on “landlording,” course instructor, president of the Landlords Association of Durham, and a commercial real estate broker of record at Aztech Realty in Toronto, specializing in income-generating and multi-residential investment properties. (416) 525-1558 Email cseepe@aztechrealty.com; website: www.drlandlord.ca

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CONTACT Michael Gnat Phone: 416-635-4835 Email: mgnat@midnorthern.com | www.REMInetwork.com | June 2020 | 33

INSURANCE>>

Where Do We Go From Here? The virus litigation sport is just beginning... by Andy Schwartze Insurance brokers who finally gave up being sales people and transformed themselves into well-grounded risk managers, are constant observers of how the industry works and what factors drive it in different directions. This is important because insurance is a variable cost, determined annually — and not one that is easily predicted.

lients need to understand the driving forces that impact insurance costs. If there is one simple statement that can be made about the entire financial services industry it’s that when the economy goes in one direction, financial services go the opposite way. Banks and insurance companies are in the business of protecting their assets against the onslaught of nasty economics. They are not in business to cure society’s ills and take great care to shield themselves from unexpected raids on their balance sheets. This is nothing surprising; the days of saying “I’ll take my business elsewhere” have become somewhat obsolete in 2020. The viral troubles that have beset the world since early spring do not bode well for insurers. As financial pressures close in on struggling businesses their owners and managers fight to find ways to survive and

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get through the rough times. One of the possible ways to generate badly needed funds is to re-visit insurance contracts, in an effort to see if there are claim possibilities that, in good times, might have been ignored or overlooked. Indeed that rather scary reality, for insurers, is now starting to ramp up. It is still early in the game, but if you watch carefully you will see significant momentum beginning to build as the opponents line up and prepare for the inevitable battle. Here are some indicators that point to growing troubles for the property/ casualty insurers: By the end of March, Munich Re, one of the biggest in the world, had already reported 800 million Euros in COVID-related losses. In Canada, Intact, Travelers and Aviva have already announced unexpectedly higher claims, not only related to the virus but also to

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“Watch for an onslaught against directors and officers of businesses, alleging mismanagement of their facilities resulting in viral spread.” higher frequency as people took advantage of coverage, fraudulently or otherwise, that under normal circumstances they would not have. Lloyds of London, one of the biggest insurance pools in the world, has conservatively estimated over US$100 billion will have to be paid on COVID-related claims. Event cancelation insurance will cut a large swath through the industry. But the real trouble is yet to come… One of the earliest class action suits started in Austria many weeks ago, when a group of 2,500 tourists banded together against the Ishgal ski resort. In France, a restaurant won a lower court decision against the giant insurer, Axa, in which it was ordered that the insurer pay COVID losses out of the business interruption insurance policy. In the U.S. a number of states are considering legislation forcing insurers to pay those business customers who have been carrying business interruption insurance (the state of Kentucky dropped that idea after it was decided that the impact of such an order would devastate the insurance industry). Yet, there has been some “tort reform” activity intended to slow the attack on corporate America on the basis of

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COVID-related health issues. What we are seeing, in that space, is the qualifier that the business cannot be sued if it has complied with recommended safety procedures. Obviously, the litigation door remains wide open as allegations of non compliance will be the basis for every suit imaginable. Many readers will be surprised to learn that “third party litigation funding” is not just active in the U.S., where it is a serious business. A major player in that space is actually based in Toronto. Investing in lawsuits takes the financial pressure off the plaintiffs and, in return, the investor(s) participate in the hoped for settlement. The virus-related litigation sport is just beginning. National television advertisements by law firms recruiting angry plaintiffs who have lost loved ones in retirement homes, have recently begun showing on our screens. Watch for an onslaught against directors and officers of businesses, alleging mismanagement of their facilities resulting in viral spread. The retirement and long-term care community is on for an enormous legal attack. Liability insurers will be hauled in to court by their clients if they fail to defend as expected. Property policies will be tested. New commercial agreements will either include pandemic waivers or the requirement for pandemic coverage (which certainly now will not be cheap). For insurance buyers, at the higher dollar level of commercial property and liability insurance contracts, the key forward looking concern embodies two exposures. Firstly, for the insurance market this is a “reinsurance” challenge well underway. The entire free world is going to pay more for reinsurance, which will translate into higher insurance bills. The legal defence cost claims payments (that are covered by typical liability policies) will skyrocket. Secondly, forwardlooking challenges automatically cause insurance companies to “circle the wagons” in self defence. Capacity (coverage levels offered) usually drops; willingness to accept risk lowers and rates rise. Finally, for HR professionals, life is going to become even more challenging. Employees who are called back to work may resist doing so because they feel unsafe. Companies that embrace more of the growing “work remotely” philosophy will struggle with measuring productivity, disciplining inadequacies and even laying off, or firing, recalcitrant behaviour. “Building the dismissal file” will take on a whole new dimension. These are tricky times for corporate managers and their insurers. Just recently I had an inquiry from a business owner who asked for a proposal for his business. When I asked a number of important questions, he responded that he just wanted insurance and that I was wasting his time and probably not “a good fit”. I wished him well. He’ll soon learn. 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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The Challenges of Reopening Legal advice for landlords facing new pressures posed by COVID-19 by Erin Ruddy On May 14th, the Province of Ontario announced it would be rolling out a 3-phased approach to reopening the economy, on the heels of other provinces slowly and carefully lifting their COVID-19 restrictions. Now, as June becomes July, all businesses â&#x20AC;&#x201D; including those in the slower to open GTA â&#x20AC;&#x201D; are preparing to resume operations, with virus mitigation being the top priority for all.

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LEGAL >>

To steer reopening businesses in the right direction, each phase of Ontario’s plan is accompanied with multiple documents related to protecting the health and safety of workers. But for multi-res operations, it’s not just workers who are potentially facing exposure — it’s residents and visitors, too. “The clear risk of reopening multi-res operations is that regardless of whether the recommended regulatory and suggested protocols are followed, if a worker, resident or visitor to the building contracts COVID-19, the landlord will likely be the target of a lawsuit alleging that he or she was at fault and therefore liable for damages,” warns Joe Hoffer, Cohen Highley LPP. “That being said, there are steps that can be taken to avoid this outcome.” For starters, Hoffer can’t stress enough the importance of following the recommended protocols for each component of the 3-phased reopening. “The province has created over 90 documents setting out detailed health and safety protocols to be followed in relation to the permitted activities,” he says. “The onus will be on landlords to research those documents; accurately determine which protocols apply to which activity; ensure the protocols are communicated to workers and occupants at buildings; and, ensure that there is compliance by workers and residents with those protocols…leaving a paper trail at each step to lay the groundwork for a defence in future potential legal action.” Naturally, it’s the smaller landlords with limited resources and those unpracticed at risk mitigation who will have a harder time adjusting to the “new normal.” Hoffer advises anyone in this situation to step up their efforts immediately. “This can be done by designating staff members to develop and implement COVID-19 compliant reopening policies — including staff training — which are key components of a risk mitigation process. In turn, everything should be rigorously documented,” he says.

Managing staff, worker & resident compliance Another challenge for multi-residential building operators will stem from gaining compliance from workers, staff, residents and visitors in terms of their commitment to following health and safety protocols. As part of Ontario’s Phase 1, for instance, workers were permitted to re-engage in multi-residential construction, maintenance and repair, painting, cleaning and pool maintenance. “Landlords have a legal right to exercise a level of control over employees and contractors,” Hoffer says. “So that challenge should be manageable. The greater challenge will come with managing compliance by residents and occupants. Landlords have far less control over tenants than they do over workers.” To address this, Hoffer advises landlords who use the standard industry lease (or other professionally drawn leases) to introduce new rules that set out the protocols tenants and their households must follow during the reopening process. “Such rules would direct compliance with social distancing relative to each other and employees; contractors; delivery personnel; and visitors, among other things,” he says, pointing out that many such rules are effectively in place now, although not necessarily formalized as a term of the tenancy agreement under the “Rules and Regulations” section. Where a more formal approach will likely be required pertains to usage of amenity spaces. As Ontario moves to allow more common areas to reopen — i.e. pools, patios, fitness centres and party rooms — tenants may not only expect, but demand, the right to regain access, exposing landlords to rent reduction applications if they fail to make them available. “In our view,” says Hoffer, “landlords will be faced with a grim challenge. The liability risk of reopening arises when there is a failure by tenants to comply with protocols and an inability of the landlord to constantly monitor and take action against those

who breach them. At this time, a landlord’s primary responsibility to enforce strict safety protocols arises upon receipt of very specific complaints of incidents of breach where the detail is sufficient to generate an N5. With reopening, there should not be a greater onus on landlords to ensure tenants are following the rules, but there may be an expectation that the landlord do so.” The key, he says, is to create clear rules in the tenancy agreements requiring compliance by residents, their households and guests at each stage of any reopening. Some internal physical changes and time of use/occupancy restrictions will likely be necessary, as will enhancements to cleaning protocols. “Include a requirement that tenants using the reopened facilities must sign a waiver agreeing to the posted protocols and that they assume the risks inherent in the use of the facility,” he says. “This will release the landlord from liability in the event that a person becomes ill and alleges the illness resulted from landlord negligence regarding safety protocols.” Administrative burdens There is no doubt that the new normal multi-res operations are about to encounter will come with substantial administrative burdens. Similar to the government, Hoffer says landlords must turn their minds to the implementation of measures that are designed to protect the health and safety of all persons at their buildings. “The establishment of clear rules for health and safety and the implementation of protocols together with the use of waivers provide mechanisms for mitigating risk,” he says. “If you require legal assistance in developing an appropriate set of COVID-19 policies, our legal team can help; otherwise, we wish you all the best with risk management and surviving the “new normal.” For more landlord-tenant legal advice, visit www.cohenhighley.com | www.REMInetwork.com | June 2020 | 39

Smart Ideas

MODERNIZING YOUR APARTMENT COMMUNITY In a post-COVID-19 world, tenant expectations aren’t what they used to be

As multi-residential operations open in a post-pandemic environment, building owners and managers are looking for ways to mitigate the spread of infection and reassure occupants that all the right steps are being taken to keep them safe. Tour24, a new mobile app that streamlines the rental touring process by creating self-guided apartment tours, offers the following top five tips for property managers entering the “new normal”: 1. Go virtual: In addition to offering self-guided tours, take the time to enhance the property’s website, highlighting the personality and features of your community through additional interactive content and videos. For smaller operators, there are many talented freelancers — perhaps even a resident in your apartment building — who would happily take on the project at this time.

4. Adjust amenities: Set realistic expectations of what it will take to safely reopen your amenities. Change the gym configuration and increase sanitation procedures and supplies. When you reopen outside areas like the pool and the pool deck, consider changing occupancy limits and reducing the outdoor furniture.

2. Support the greater community: Publicize local events and initiatives, like curbside pick-up from neighbourhood restaurants or outdoor green markets that are back up and running and could use the boost. Share information about how to donate to a local food drive, enlist tutoring services or hire a resident accountant.

5. Improve home delivery process: From groceries and retail, to the delivery of restaurant meals, people of all ages are turning to online ordering. Multifamily residents are likely to continue to use home delivery services even when businesses have fully reopened. It is imperative that property managers have an efficient strategy that minimizes the impact on building operations while responding to resident needs — including automated locker solutions and/or package rooms, which reduce contact and keep deliveries safe and secure.

3. Make common areas touchless: As residents begin to move more freely around the property, find ways to minimize their contact with surfaces and each other. Create safe-distancing pathways around the reception desk and manager’s office. Spread out or remove the furniture from the lobby. Explore technologies that could one day make getting around the building hands-free. 40 | Canadian Apartment | Part of the REMI Network |

For more information on Tour24, visit: www.tour24now.com

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Canadian Apartment Magazine * June 2020

Articles inside

Reinventing the Suburbs

Newsworthy Industry Hot Topics

Legal The Challenges of Reopening Multi-Res Operations

Insurance COVID-19 and your Insurance Policy

Smart Ideas

Rental-Housing of the Future

CMHC Report on Housing