CAM November 2020

Apartment CANADIAN

VOLUME 17 / NUMBER 6 / NOVEMBER/DECEMBER 2020

THE FUTURE IS NOW MODERNIZING RESIDENTIAL REAL ESTATE

plus

PA R T O F T H E

INFILL DEVELOPMENT

PM#40063056

TENANT

SCREENING MARKET HIGHLIGHTS

P A R T

O F

T H E

Coast to coast commercial expertise

Canada’s Real Estate Finance Experts Founded in 1974, CMLS Financial is one of Canada’s largest independently owned mortgage services companies with offices across the country. Some of Canada’s most respected banks, investment managers, insurance companies and pension funds rely on CMLS Financial for a variety of critically important mortgage services. Consult with a CMLS Financial Real Estate Finance Expert and see how our competitive rates and range of solutions can be put to work to meet your commercial financing needs.

Customer Forward Thinking.™

1.866.426.2657 | cmls.ca

Yes, we can!

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

We concentrate on revenue growth, controlling expenses, and strategic capital investment in your property to maximize your profitability over the long term — when you’re ready to discuss a better option; we’ll be there. You can count on it.

Kazi Shahnewaz Director, Business Development Office: 416.340.1600 x504 C. 647.887.5676 k.m.shahnewaz@metcap.com

www.metcap.com

EDITOR’S NOTE>>

Apartment CANADIAN

2021, WE SEE YOU…

/cammediaedge /cdnapartmentmag /mediaedgecam

So here we are, just about to enter the final month of 2020.

A year ago, no one could have predicted the unspeakable hardships so many businesses and households would suffer at the hands of the pandemic—whether due to income loss, health complications, a business closure, or the upending of life as we knew it. It’s been a tumultuous year to say the least.

In our last issue, we explored the silver linings of COVID, and sure enough, they do exist. The apartment sector has weathered the circumstances relatively well, and there is little doubt it will emerge all the stronger for it. But looking back, it’s hard not to reflect on the huge losses suffered by so many—some losses that can never be recovered. With any luck, the vaccine will be available in the coming months, and that light at the end of the tunnel will finally see us through. It’s what we’re all hoping for.

Speaking of lights, the PropTech industry is ablaze like no other, as such that even the apartment sector is sitting up and taking notice. In our cover story by Brad Pilgrim, you’ll discover why now is the perfect time to investigate and implement new technologies that will improve operations, attract and retain tenants, and ensure you remain resilient in a post-COVID era.

Also in this issue: infill development as a solution to the housing shortage; tenant screening solutions; new and notable transactions; market insights and more. We hope you enjoy our final issue of 2020, and we wish you nothing but health and prosperity in the year ahead.

Erin Ruddy @cdnapartmentmag

Annette Carlucci

Production Manager

Rachel Selbie

Contributing Writers

Peter Altobelli Nina Dragicevic Brad Pilgrim Andy Schwartze

National Sales

Bryan Chong Kelly Nicholls Blair Wilson

Digital Media Director Steven Chester Circulation

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

Canadian Apartment Magazine is published six times a year by:

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

President Kevin Brown Group Publisher Sean Foley Copyright 2020 Canada Post Canadian Publications Mail Sales Product Agreement No. 40063056 ISSN 1712-140X Circulation 416-516-8186 ext. 234 circulation@mediaedge.ca

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

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

rent trends

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.

PROPTECH SOLUTIONS THAT CURRENTLY DELIVER BOTTOM-LINE RETURNS:

MANAGEMENT SOFTWARE

Erin Ruddy

Senior Designer

Subscription Rates: Canada: 1 year, $50*, 2 years, $90*, US $75 International $100, Single Copy Sales: Canada: $12* * Plus applicable taxes Requests for permission to reprint any portion of this magazine should be sent to Erin Ruddy.

Sincerely,

PROPERTY

Editor

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.

OPERATIONS

ENERGY EFFICIENCY SERVICES

STAFFING

PORTALS

SOFTWARE

FAULT

DETECTION SENSORS

Our Business is to Make Yours Shine!

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

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

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

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

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

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

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

COMMITTED TO EXCELLENCE SINCE 1986

Apartment CANADIAN

VOLUME 17 / NUMBER 6 / NOVEMBER/ DECEMBER 2020

FEATURES 20 A Closer Look at Infill Development Tackling the GTA’s housing shortage with a solution that makes sense

by Nina Dragicevic 28 Mitigating Risk and Uncertainty Tenant screening is critical in the age of COVID

by Peter Altobelli

COLUMNS 8 Transactions Market Highlights Q3 2020 10 CMHC The Impacts of COVID on Housing

by Graeme Huycke 24 Newsworthy Industry Hot Topics 26 Legislation Rent Freeze Update for BC and Ontario 30 Insurance We’re in Deep Now

by Andy Schwartze 32 Ask the Expert Minimizing Window Condensation

COVER STORY

4

CANADIAN

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

ON THE COVER:

VOLUME 17 / NUMBER 6 / NOVEMBER/DECEMBER 2020

Etobicoke skyline.

THE FUTURE IS NOW MODERNIZING RESIDENTIAL

Editor’s Note

REAL ESTATE

34 Smart Ideas plus

PA R T O F T H E

PA R T O F T H E

INFILL DEVELOPMENT

TENANT PM#40063056

14 Apartment, Meet PropTech COVID-19 accelerates critical need for technology adoption

by Brad Pilgrim

Apartment

DEPARTMENTS

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

SCREENING

P A R T

O F

T H E

P A R T

MARKET HIGHLIGHTS

Powered by

O F

T H E

Condominium

|

Residential

Commercial

|

|

Rental

NADLAN-HARRIS

PROPERTY MANAGEMENT INC. 500 Champagne Drive, Toronto, ON M3J 2T9

AN ACMO 2000 COMPANY

We are a team of dedicated experts, specializing in professional property management of: • High-Rise/Low-Rise Condominiums • Residential/Commercial/Industrial • Town Home Condominiums

• New Condominium Development Consulting • Customized Community Websites • Shared Facilities Proud members of:

Tel: 416-915-9115 Ext. 25

Fax: 416-915-9114

A S S O C I A T E

Email: info@nadlan-harris.com

www.nadlan-harris.com

Canada’s Apartment Market: Q3 2020 Uncertainty persists, but the multi-res sector remains resilient Amid the uncertainty of the global pandemic, the multifamily sector has emerged as one of the most resilient asset classes in commercial real estate. That said, the sector has had its share of challenges since the onset of COVID in Q2.

In the GTA specifically, Colliers reported that the addition of new rental product added to the downward pressure on rental rates. Average condominium rent decreased by 7.5% year-over-year with downtown Toronto experiencing the largest change as demand shifted towards less expensive markets. In newer purpose-built rental buildings, the average rental rate decreased 2.4% to $3.25 PSF, while vacancy saw an increase to 2.4%.

Meanwhile, the purpose-built rental pipeline continues to increase with 72,053 proposed rental suites currently planned for the region—a 36% increase from a year ago. There has also been a 15% year-over-

year increase to the number of rental suites under construction, reaching 13,131. Many of these projects are nearing completion (5,276 rental suites) and are expected to be brought to market in 2021, representing the highest number of annual completions in more than 25 years.

Despite all this, Colliers remains optimistic about the long-term forecast for the sector, but cautions that some landlords may experience challenges in the short-term, as utility consumption continues to rise and the Ontario rent-freeze sets to begin in January.

RECENT Transactions: Address

City

#of Units

Sale Price (Millions)

Sale Price/Unit

Purchaser

1.

Manor Village Townhomes

Ottawa

111

$26.3

$236,486

Forum Equity Partners

2.

4500 Jane St

Toronto

164

$44.6

$271,768

Starlight Investments

3.

122 Bronte St South

Milton

163

$58.5

$358,896

Park Property Mgt.

4.

200 Queen Mary Dr

Oakville

95

$33.0

$347,368

Homestead

5.

301 Dixon Rd

Toronto

225

$78.5

$348,887

Starlight Investments

6.

4545, 4550 Walkley Ave

Montreal

161

$30.8

$190,994

Timbercreek

7.

1130 Queens Ave

Oakville

100

$46.1

$461,000

Homestead

8 | Canadian Apartment | Part of the REMI Network |

TRANSACTIONS >>

“The suburbs are outperforming urban cores right now, with housing starts down overall, but not dramatically.”

Suburbs vs.

Urban Centres Class A Apartments are feeling the strain of COVID more than their Class B and C counterparts, according to panelists at a recent Urban Land Institute webinar.

“Multifamily has faired better than we all expected through this [pandemic], certainly compared to previous recessions,” observed Jeanette Rice, Americas head of multifamily research at CBRE. “The suburbs are outperforming urban cores right now, with housing starts down overall, but not dramatically.”

Rice and her fellow speakers largely concurred with the findings presented in ULI’s recent economic forecast.

Incorporating the opinions of more than 40 leading economists and industry analysts, the survey looked at several real estate indicators—including employment, GDP, housing prices, inflation, REIT returns, vacancy/occupancy rates and rents for five property types, and housing starts.

Richard Kleinman, managing director of research strategy, LaSalle Investment Management, referred to the findings as “middle of the road, with a fair balance of upside and downside.” Calling our current economic situation worse than the recession of 2001, but slightly better than the Great Depression, the panelists agreed that the beleaguered GDP should recover in as little as two years, and that labour markets will take longer to recover, likely in about three to four years.

“We’re in a blue-collar recession,” Kleinman said, noting that lower paying jobs have been hit the hardest. “Employment will lag—it always does. But hospitality, retail, and jobs associated with the restaurants and beverage sector will need more time to come back.”

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.

Brock-King Portfolio Kingston/Brockville, ON 1,390 Suites - $102,878 Per Suite SOLD FOR $143,000,000

GTA Portfolio Toronto, ON 430 Suites - $310,797 Per Suite SOLD FOR $135,000,000

Parkwood Place Guelph, ON 161 Suites - $327,329 Per Suite SOLD FOR $52,700,000

452 – 560 Arlington Boulevard Burlington, ON 55 Suites - $338,182 Per Suite SOLD FOR $18,600,000

CBRE Limited, Real Estate Brokerage National Apartment Group – Toronto DAVID MONTRESSOR* | Executive Vice President

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

(416) 815-2332 | david.montressor@cbre.com * SALES REPRESENTATIVE

| www.REMInetwork.com | November/December 2020 | 9

The Impacts of COVID on housing Elevated household debt remains a key vulnerability In a new series covering various housing-related research topics, CMHC looked at the effects of the pandemic on households across Canada. According to recent findings, elevated household debt remains a key vulnerability and represents a risk to the stability of the housing sector.

H

ighly indebted households are vulnerable to a prolonged negative shock that could constrain more of them to sell their houses. This would pose a risk to house prices and jeopardize household wealth if properties for sale were to flood the market. It would also greatly impact the rental housing sector.

10 | Canadian Apartment | Part of the REMI Network |

What we’ve seen so far The onset of the COVID-19 pandemic brought on a negative shock to the economic situation of both renter and owner households. This also presents a risk of more households ending in housing need and a risk of monetary loss for landlords and financial institutions.

Canadian households were highly indebted before the COVID-19 pandemic changed our way of life.

We want to explore the evolution of household debt in Canada since the onset of the COVID-19 pandemic.

This article examines the evolution of household debt and employment by

CMHC REPORT >>

• Abbotsford-Mission • Toronto • Hamilton • Vancouver

similar to the trend observed between 2012 and 2019.

Overall employment trends do not seem to explain the difference in mortgage debt growth. The areas with the strongest mortgage debt growth also experienced employment contractions on par with (or above) the Canadian average.

More analysis of the distribution of job losses by household tenure and by occupation would shed light on the debtrelated risk profile of some CMAs. A silver lining in Canadian household debt The Canadian household debt picture exhibits some contrast. On the one hand, mortgage debt continued to increase between the end of 2019 and the second quarter of 2020 in most CMAs. This is

The increase in mortgage debt was partly due to: • the completion of pending sales transactions concluded in the months prior to the onset of the pandemic; • an increase in deferred mortgage payments from borrowers.

In addition, a sharp pullback in new listings maintained some pressure on house prices in some markets. This can contribute to higher outstanding mortgage debt. On the other hand, outstanding non-mortgage debt decreased in both the first and second quarters of 2020, bucking a growth trend observed in previous years.

Credit card debt Equifax credit data shows a decline in credit

Building Science & Structural Engineers census metropolitan area (CMA) from the end of 2019 to the second quarter of 2020.

Key findings The evolution of mortgage debt was uneven in Canada between the last quarter of 2019 and the second quarter of 2020. It ranged from -3% to 3% across different census metropolitan areas (CMAs).

Non-mortgage debt contracted in all metropolitan areas over the same period.

Important declines in outstanding credit card debt were a key driver of the contraction in non-mortgage debt. This is probably a result of reduced spending.

Total outstanding debt only increased in these areas between the fourth quarter of 2019 and the second quarter of 2020:

Building Envelope Assessment & Remediation Structural Restoration Due Diligence/Pre-Purchase Assessment Property Condition Assessment Structural Engineering Roof Consulting

University of Calgary Energy. Environment. Experiential Learning Building (EEEL) | LEED® Platinum

RJC Engineers

rjc.ca | www.REMInetwork.com | November/December 2020 | 11

CMHC REPORT >>

card debt, likely the result of restrained spending and increased savings brought on by the COVID-19 pandemic. The contraction in non-mortgage debt since the beginning of the pandemic offset the increase in mortgage debt in all but four CMAs. Total outstanding household debt only increased in: • Abbotsford-Mission • Hamilton • Toronto • Vancouver Regional disparities in mortgage debt growth Mortgage and non-mortgage debt growth

by CMA shows further contrast in the evolution of debt in the first half of 2020.

While non-mortgage debt declined in all CMAs, mortgage debt grew by close to 3% in some areas. It decreased by almost the same percentage in others.

Three of the four CMAs where total household debt increased since the onset of the pandemic saw the largest mortgagedebt growth:

• Abbotsford-Mission • Hamilton • Toronto

mortgage debt as it did in Toronto or Hamilton, for example.

These CMAs are also the only ones displaying stronger mortgage-debt growth than the Canadian average.

In Abbotsford-Mission, mortgage debt increased at the fastest pace of all CMAs between the end of 2019 and June of 2020. Non-mortgage debt saw the smallest decline. While the balance of most types of non-mortgage debt decreased over the period under review, we noticed a 4.4% increase in home equity line of credit debt.

In Vancouver, also a CMA where total debt increased, mortgage debt growth was below the Canadian average. The decline in spending and credit card debt did not make as big a dent in non-

Does employment support recent mortgage debt growth?

To better understand the household debt-related risk to the housing sector in the context of the COVID-19 pandemic, we looked at changes in employment by CMA. We found that the same four CMAs that saw the strongest mortgage debt growth — Abbotsford-Mission, Toronto, Hamilton and Vancouver — also suffered larger job contractions than the Canadian average. The combination of stronger mortgage debt growth and important employment contractions could be hiding an issue of uneven debt distribution and uneven job losses among households in these CMAs.

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

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

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

416-736-2524

COVER STORY >>

APARTMENT, MEET PROPT COVID-19 accelerates need for technology adoption

COVER STORY >>

TECH

By Brad Pilgrim

Residential real estate has entered a new phase of technology adoption.

After years of talking about how Canada’s real estate industry was on the cusp of embracing property technology (PropTech), modernizing residential real estate with digital tools has truly accelerated during the COVID-19 era.

| www.REMInetwork.com | November/December 2020 | 15

COVER STORY >>

W

ith the pandemic long from over, property technology continues to boom. Residential landlords and property owners are becoming more aware of the growing appetite for PropTech, and that to remain competitive in today’s market, adoption of these digital tools is of the essence.

Simply put, PropTech can help drive increased revenues, lower Co2 emissions and provide insights on HVAC processes that were previously the domain of specialized in-house “Energy Managers”.

And the pandemic isn’t the only pressure driving the need for technology adoption—economic volatility, competitive new-builds, and an uncertain rental market can all threaten an apartment building’s net operating income. This reality should encourage landlords and property managers to find new property technologies to be included in their annual budgets and overall operations strategies.

PropTech: the basics The concept of PropTech is relatively straightforward: it is the application of information technology and data and analytics installed in properties to ultimately optimize operations. There are recognized and available PropTech solutions that currently work within Canadian apartments that deliver bottom-line returns. Some include: property management software, energy efficiency as a service, operations portals and more.

These services can deliver any number of benefits: more targeted services to occupants, increasing business and operations efficiency, and improving building performance and management overall.

Before making any decisions, apartment operators specifically, need to take into consideration all the individual needs of the building in order to select the best PropTech solution. For example, apartments may have minimal staff. Many buildings may only have access to one building operator versus many mechanical trained operators (one superintendent vs. a whole staff of boiler room operators). In addition, a building may have a roster of maintenance vendors as a fall-back for more complex maintenance needs. So perhaps understaffing is the motivator for PropTech installation that specifically improves workflow for the superintendent and staff.

Then there’s the physical make-up of the building. Older apartment buildings might have equipment as old as the property; boilers, 16 | Canadian Apartment | Part of the REMI Network |

chillers, heating, cooling and air-conditioning (HVAC) systems may face frequent breakdowns or intermittent malfunctions which can halt service to the building.

On the other side of the coin, newer apartment builds may already have semi-autonomous equipment controls installed. Unfortunately, there’s often no central place to monitor all of this equipment.

PropTech portals can help connect existing installs to make reading information easier for apartment operators.

PropTech services can rectify any number of challenges whether it’s minimal staffing or dated equipment, even with limited budget.

So, what is the best course of action?

This is where data comes in. One of the first steps for adopting PropTech is to establish what data would be useful to your building. This will enable property technology experts, like engineers, data analysts and energy experts to make smarter, cost-effective decisions for a property.

Most solutions include software platforms and low-cost sensors that connect different touch points throughout a building, relaying information via an internet connection. The data that’s collected from these sensors are compiled into an online database stored in the cloud. For some, machine learning algorithms are applied to the data, to look for gaps and inefficiencies and to establish a building’s unique “energy-use fingerprints”. Patterns like: usage fluctuations based on occupancy levels, chillers that aren’t working well or hot water pumps that could be running more often than required and even taking outside weather patterns into the equation. Ultimately all of this information is critical in order to understand your building’s Energy use “fingerprint”. Once the baseline patterns have been discovered, then efficiencies and optimization can occur.

And rest assured, these platforms are generally coupled with a team of people who can help translate this data for the average property owner. This technology is not meant to turn the day-to-day apartment owner into a data analyst; if anything, it’s meant to make apartment manager’s life easier.

To demonstrate different areas in which PropTech can improve a residential building’s operations, here are a few examples of how it detects flaws in the system.

COVER STORY >>

Equipment Breakdown Prevention Apartment buildings likely have a routine maintenance plan in place. Yet unexpected breakdowns are bound to happen. In fact, a recent study showed that over 80 percent of equipment failures were random even when there were adherent checkups in place.

Data can demonstrate to management when equipment is operating successfully or when it fails. For example, note the big drop in the graph above, an obvious sign that something failed. When this happens, PropTech software systems can monitor and quickly alert management.

And in some cases, it can even fix the problem remotely before there’s any disruption in the building’s function.

With a team of PropTech experts behind most software services, they might be able to provide an easy fix without any in-person intervention.

There’s no need to call a third-party vendor which ultimately saves the building money and time. In cases where mechanical personnel are required to come onsite, this data helps better prepare the vendor when coming to site be more prepared and spend less time finding issues and more time fixing the issues.

Improve Performance Work smarter not harder—that’s what PropTech can do for apartment building equipment. Looking at any equipment, whether it’s 25 years old or two years old, there’s always an opportunity to optimize performance.

Sometimes equipment might be quite analogue, with only one mode of operation: on or off. And when this equipment is on, it tends to run at the most energy-consuming setting there is possible. While there might not be any obvious problem (don’t fix what isn’t broken), it might mean more energy costs for the apartment building’s annual energy/utility budget.

Although an apartment operator might not want to make any dramatic

“Data can demonstrate to management when equipment is operating successfully or when it fails.”

Image Source: Parity inc.

Image Source: Parity inc.

| www.REMInetwork.com | November/December 2020 | 17

COVER STORY >>

efficiency decisions that could jeopardize potential tenant comfort, shifting to make a building run more smoothly with very minimal tweaks and improvements could result in thousands of dollars saved in annual operating expenses.

Fault Detection Apartment budgets might be tight. Which might result in keeping dated equipment long past the due date. From a budget conscious approach, it might make sense to keep fixing old equipment rather than replace it. Unfortunately, studies show the cost of reactive maintenance can amount to 500 per cent higher than the funds spent on equipment replacements .

Introducing The New Age of Property Management RentMoola powered by UR Concierge

Take control of your finances and build a stronger community in one platform.

Contact free payments: pay rent online, phone & in-store.

Contact free communication: private bulletin board, notices by email or text. tenant-communication.rentmoola.com

18 | Canadian Apartment | Part of the REMI Network |

Regardless, not every building can afford a full equipment retrofit or overhaul. So, in times like these, fault detection sensors can provide significant savings and a better tenant experience, without a large upfront cost.

Fault detection can come in many forms, from monitoring when equipment might deviate from its regular patterns of use or even the micro issues that can only be detected by machine learning algorithms.

This software helps management identify if and when equipment might need some extra TLC before potential equipment failure, well in advance, in order to preserve equipment overtime.

Increasing time and occupant satisfaction PropTech offers many benefits; a few of which are not mechanical. Not only can these systems work smarter for your building but they can work smarter for management and occupants like, freeing up management and staff ’s time so they can go about their day-to-day routine without interruption (i.e. when equipment failures solve themselves).

Better yet, occupants can see more regulated and consistent service delivery like steady in-suite temperatures, improved air quality and flow, and ondemand hot water. All of which contributes to an overall improved satisfaction and building rating.

While some buildings might be pressed financially there are numerous ways in which PropTech service companies can be flexible to meet the needs of varying apartment budgets and unique service needs.

In summary, 93 per cent of real estate executives agree “real estate organizations need to engage with PropTech in order to adapt to the changing global environment.” With such unignorable changes to how residential real estate conducts its operations, it’s prudent of property managers to consider PropTech for the health and prosperity of their apartment buildings in 2021 and beyond.

Brad Pilgrim is the CEO & Cofounder of Parity Inc.

A closer look at infill development Tackling the GTA’s rental housing shortage with a solution that makes sense

by Nina Dragicevic As the pandemic surges on, and affordable rental housing continues to be a pressing need in the GTA, some housing experts believe a solution has been sitting in plain sight all along: infill development. Simply put, it means adding new units to existing rental sites where there is room and opportunity for growth.

C

urrently, the Federation of Rental-Housing Providers of Ontario (FRPO) estimates there are some 950 rental sites with the potential to add 176,000 new units throughout Toronto and the wider region.

“A lot of the sites are concentrated outside of the downtown core in relatively affordable markets,” says Tony Irwin, president of FRPO. “The other thing that’s important is that over 35 per cent of the potential units are within 800 metres of a current or future transit station.”

20 | Canadian Apartment | Part of the REMI Network |

According to a recent Urbanation report looking at supply gap and opportunities for development, Toronto and the Greater Hamilton Area (GTHA) will be facing shortages of up to 200,000 rental units within a decade unless solutions are implemented in the near-term to change this long-term reality. Even with COVID-19 tipping the market temporarily in favour of tenants, data indicates we’ll see “a return to base projections” by 2022.

FEATURE >>

rental development. It is also working towards modernizing and improving the development process overall.

Diana Petramala, Senior economist at Ryerson University’s Centre for Urban Policy and Land Development, is also in favour of infill development, although her projections are a little less dire in terms of future shortages.

“There is a lot less building in Ontario to meet Millennial demand than when

Boomers were entering the labour and housing market,” she says. “I do agree that there’s a lot of potential for infill construction in the Toronto CMA, even the greater Golden Horseshoe, and it goes beyond the downtown areas that are already built. There’s a lot of capacity to build along transit lines. I think that it’s enough potential, for my own estimates, to absorb all the population growth that is expected out to 2051.”

CONSULTING ENGINEERS

Could infill development be the answer?

The pros certainly seem to outweigh the cons — particularly given 60,000 of the potential new units would be situated close to rapid transit. Furthermore, the Ontario government has committed to building healthy, connected, transit-oriented neighbourhoods as a way to “reduce traffic congestion, reduce emissions and build integrated, accessible communities,” while also supporting COVID-19 recovery.

“If we could unlock development on these transit-oriented, rental infill sites, overnight we’d have an incredible impact on our city’s housing affordability crisis,” says Toronto City Councillor, Brad Bradford. “To be clear, we know that supply alone does not fix affordability. We also need the right kinds of supply in the right places — like ‘missing middle’ housing, which is more livable and more practical for families.”

According to Bradford, Toronto has been making some positive strides in this arena. The City is poised to implement inclusionary zoning policies that would require a percentage of units built around transit hubs to be affordable; additionally the Open Door program already incentivizes and fast-tracks affordable

MODERN IDEAS PROFESSIONAL SOLUTIONS Mechanical Electrical

Energy Audits

LEED

Services

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

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

416.250.7222 1700 Langstaff Rd. Ste 2002 www.me-eng.com info@me-eng.com Vaughan, Ontario L4K 3S3 | www.REMInetwork.com | November/December 2020 | 21

FEATURE >> That said, Petramala cautions against building too much too fast — especially high-density and condos like we saw in the late-1980s, that led to the 1990 housing market crash. Instead, she advises midrise developments and ground-related housing, including semis, townhouses and stacked towns, calling this approach “safer and healthier” for markets and communities alike.

“You get all kinds of financial risks associated with building too many condos and not enough ground-related housing,” she warns.

“On the condo side, how sustainable are those investments? And then on the ground-related side, are people taking on too much debt to buy these units?”

MOBILE FRIENDLY

VISIT US AT

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

22 | Canadian Apartment | Part of the REMI Network |

Tall and affordable vs. short, luxury buildings Ground-related housing, including missing middle, mid-rise, and medium density, are the “gold standard” of developments, but these aren’t easy, as Toronto-based real estate developer Brandon Donnelly notes in a recent blog post: “Along the main streets and outside of the downtowns of many North American cities — which is where midrise buildings typically live — the land parcels are often smaller and the pieces of land needed to put together a viable project might be owned by half a dozen or so different people. Getting them all on-side to sell can be a feat in itself.”

Meanwhile, builders want taller buildings that make financial sense, while communities often want the heights to come down. To recoup costs for a mid-rise project, builders charge luxury prices, thus the expense of a mid-rise build is passed down to the consumer.

Ontario’s rental housing providers are constricted by these realities.

According to Irwin, FRPO members want to build a variety of units, not just luxury ones. A project may be approved by the city, but only if 12 storeys, for example, are removed from the building’s height. “The economics simply don’t support that,” he says. “I recognize that you have to be responsive to different points of view [of the community], but there has to be a way to make projects realistic and approve projects that are economically feasible.”

Purpose-built rentals offer more stability than condos bought by investors and rented out: condo landlords can sell the unit or decide to use it themselves, sending the renter bouncing into the market again.

“Over the last two or three decades, very little purpose-built rental housing has been built in the Toronto area,” notes Irwin. “There’s nothing wrong with condominiums, but we need a mixture of different housing types. And we need an environment that definitely encourages and supports purpose-built rentals.”

Councillor Bradford acknowledges these “land economics” and financial challenges, noting that the federal government has started offering low-interest capital for rentals via its National Housing Strategy. “There are HST reforms that move the dial on rental viability,” he says. “That’s something that would need to come from the province.”

But no matter how the pieces come together, everyone agrees: the region needs more supply. “Over half of Toronto’s households are renters,” Bradford says. “The rental market is a key component of housing affordability and without new supply, our housing system gets stuck.”

Nina Dragicevic is a freelance journalist who writes for Rentals.ca and other local and national publications.

Nov. 30 - Dec. 4, 2020

Register Now Brought to You Virtually By

thebuildingsshow.com #BUILDINGSWEEK

NEWSWORTHY >>

Industry Hot Topics SmartCentres set to begin construction on new Cambridge community

S

martCentres announced it has received approval to begin construction on a new residential community located in Cambridge, Ontario. Sitting on a 73-acre property that was previously zoned for retail use only, the new zoning order now allows for residential, office, institutional, and commercial land on the site at 22 Pinebush Road.

“We believe this significant new community will help address demand for housing located strategically around the Greater Golden Horseshoe Area,” said Mitchell Goldhar, executive chairman of SmartCentres. “Working with staff, our goal is to begin Phase 1 in 2021. SmartCentres will continue to proactively change it’s property uses to align with ever-evolving communities and marketplaces across Canada.”

Development is expected to roll out over the next 10 to 20 years. Upon completion,

the 11-million-square-foot community will include up to 10,000 new residential units across a variety of housing types, including rental apartments, condominiums, townhouses and seniors housing.

“We know more and more people are moving to our city and this project will

certainly help in terms of economic recovery post-pandemic,” said Cambridge Mayor Kathryn McGarry. “Thank you to the province for putting in place this new process and for moving forward with this zoning order which will allow construction to start as early as next year.”

Starlight acquires 40-storey rental tower in B.C.

S

kyline Investments has completed the acquisition of Western Canada’s tallest rental development, a high-rise, mixed-use, multi-residential building comprised of 398 rental units. Located at 900 Carnarvon Street in New Westminster, BC, the newly constructed property rises 40-storeys and is connected to 4,600 square feet of retail.

“The acquisition of this signature property builds on Starlight’s presence in the Lower Mainland of British Columbia and demonstrates our strategy of acquiring top-quality, well-positioned and highly soughtafter, high-rise, concrete buildings in desirable urban communities across Canada,” said Daniel Drimmer, Starlight’s President and Chief Executive Officer.

Upon inception of the lease-up campaign, the development was named Aqua. Centrally located near the New Westminster SkyTrain station, the building connects to numerous stores and services in the adjoining retail component. Residents at the property also have immediate access to the Shops at New West. On-site amenities feature a two-storey lobby and several distinct spaces that flow naturally into one another.

24 | Canadian Apartment | Part of the REMI Network |

Starlight already owns several properties in the New Westminster neighbourhood, including the 113-unit low-rise at 720 Queens Ave., which it purchased late in 2019.

NEWSWORTHY >>

Report suggests new building codes aren’t tough enough on energy efficiency

N

ew Canadian building codes that are currently under review by a National Research Council committee would potentially facilitate designs that are less energy-efficient than they could be, according to a Carleton University study.

The federal-provincial Pan Canadian Framework on Clean Growth Climate Change (PCF) calls for all new buildings to be Net-Zero Energy Ready (NZEr) by 2030. However, a report published by Efficiency Canada, an energy efficiency research and advocacy organization at Carleton, outlines how this may fall short.

In particular, the report, which was based in part on interviews with representatives from the government and other institutions, notes a disconnect between Canada’s climate commitments and new “stretch” model building codes. A lack of mandatory air leak testing, an ineffective approach to measuring energy code compliance, and less stringent best-practice standards for large buildings, for example, present obstacles to NZEr buildings.

Air leakage is reportedly considered to be the greatest source of heat loss in buildings and a big contributing factor in a building’s energy use for heating or cooling. As such, mandating these tests would go a long way towards reducing a building’s energy consumption.

Researchers noted that improved air sealing, increased insulation levels, and high-performance windows and doors are integral to buildings aiming for net-zero readiness.

“We need our building standards to reflect our expectations of a net-zero emissions future,” said the study’s lead author Kevin Lockhart. “That big change — from a minimum standards mentality towards showing where we need to go — requires a new policy framework.”

In summary, the report’s authors have two key recommendations: clearer federal direction for building codes to reach national net-zero emissions goals, and identifying a policy “champion” within the government to integrate building codes into wider policy on climate.

John Power, a spokesperson for Innovation, Science and Industry Minister Navdeep Bains, stated that building codes “assure Canadians that their health and safety have been fully considered in the construction and renovation of homes and workplaces.” He added that the government made national building codes free to save students, workers, and businesses “costs and complications.”

CBRE survey reveals shift in tenant preferences

I

n the midst of a pandemic that has confined most residents to their homes, a new CBRE survey of Canadian landlords reveals that multifamily owners and operators have seen big increases in tenant demand for unit features that support work-from-home and social distancing, including in-suite laundry, dens, balconies and walk-up access.

To gauge the impacts of COVID on multifamily properties, CBRE surveyed more than 80 Canadian multifamily owners/operators, representing over 200,000 units nationwide.

Participants were asked to provide insights on their portfolio’s performance and the challenges they have faced through the pandemic.

Here are some critical takeaways from the CBRE survey: • 47 per cent of landlords report that overall apartment vacancy rates have not been impacted by COVID-19. Alberta is the one outlier, already challenged by an ailing energy sector, where 43 per cent of landlords surveyed said COVID led to a 3-5 per cent increase in vacancy rates within their portfolios this year.

• Rent collection has not been significantly impacted by the pandemic. The survey shows that over the first four months of the crisis landlords indicated that rent collection rates within their portfolios had consistently averaged 96 per cent, with no discernible downward trend from month to month.

• There has been a significant shift in tenant turnover patterns. Amid financial security concerns, most residents have delayed moves until there’s greater clarity regarding a COVID recovery, with 35 per cent of landlord respondents reporting decreased turnover rates.

• While the majority of respondents noted a decrease in turnover, there were some segments which had seen increases as financial issues pushed tenants to seek accommodations with a roommate, downgrade to more affordable building, or move in with family members.

• Landlords are seeing increased demand for pandemic-friendly features such as: insuite laundry, to avoid laundromats and shared laundry rooms; balconies (for outdoor time); walk-up access (to avoid elevators); and dens or small home offices, to facilitate remote work. Landlords also report growing demand for building amenities like outdoor terraces, co-working spaces and private gyms.

“We’ve heard so much about how working-from-home is impacting the office world, but there has been little corresponding discussion about how the home can do a better job of supporting remote workers,” says CBRE Canada Research Director Marc Meehan.

“The fact that residents are spending more time than ever in their homes has resulted in noticeable shifts in their preferences and requirements, and landlords are having to adjust accordingly.”

Investment activity CBRE’s survey shows that investment prospects for Canada’s multifamily sector have been untarnished by COVID. Investment activity started 2020 at a breakneck pace, on course for a new annual record of $11 billion. And while the lockdown curbed that momentum considerably, investment volumes for the multifamily sector have been more resilient than those for other income-producing asset classes.

Multifamily was able to maintain 65.0 per cent of its 5-year trailing quarterly average investment volume in the second quarter of 2020, the smallest decline of any sector, and pricing is now even higher compared to prepandemic times for select properties and geographies. | www.REMInetwork.com | November/December 2020 | 25

LEGISLATION >>

Rent Freeze in B.C. Extended to July 2021 Landlords fear what this means for the sector

In early November, the Province of B.C. announced it had extended the residential rent freeze until July 10, 2021, under the powers of the Emergency Program Act and COVID-19 Related Measures Act.

A

ccording to a government update posted on November 12, increases set to happen on Dec. 1, 2020, were being cancelled along with all pending increases through to July.

“We know many renters are still facing income loss and even the slightest increase in rent could be extremely challenging,” commented Selina Robinson, Minister of Municipal Affairs and Housing. “For that reason, we are extending the freeze on 26 | Canadian Apartment | Part of the REMI Network |

rent increases to provide more security for renters during the pandemic. We are all in this together, and it is important for both renters and landlords that people can stay in their homes.”

Back in March, the Province originally froze rent increases with the ban set to expire December 1st. The extension comes as concerning news to the province’s hard-hit landlords, according to Vancouver-based association, LandlordBC.

LEGISLATION >>

“Our sector is on a negative financial trajectory and we need support for rental property owners.”

“Needless to say, this decision is very concerning,” the group responded in a blog post. “Our sector is on a negative financial trajectory and we need support for rental property owners. While not insensitive to the challenges many renters have faced during the pandemic, the reality is that our sector has also been challenged with significant disruptions, risks and costs as a result of the pandemic.”

As the leading voice for owners and managers of rental housing in British Columbia, LandlordBC says it will continue to advocate on behalf of members and the broader sector to ensure the government understands and responds appropriately to the group’s concerns. “[In] the absence of rent increases for existing tenancies to better cover cost inflation like taxes, utilities, insurance, maintenance, etc., our financial challenges will be further exacerbated and threatens our ability to ensure British Columbian’s have continued access to a safe, secure, sustainable rental housing,” the association wrote.

Meanwhile in Ontario, legislation put for by the Ford Government will prevent increases for most renters in units ranging from apartments, condos and houses to care facilities — including units that aren’t covered by rent control.

The freeze applies even in cases where landlords already gave their tenants notice of increased rent for 2021. The legislation will also cap rents that are geared to a household’s income at 2020 levels.

For ongoing updates and exemptions, follow this story at www.reminetword.com

Addressing the long-term care fiasco Ontario announces additional $761 million investment The Ontario government is investing an additional $761 million to build and renovate 74 long-term care homes across the province, creating close to 11,000 spaces. More than 38,500 people are currently on the waitlist to access a long-term care bed, as of June 2020.

The new investment comes from the province’s new funding model that helps accelerate the construction of these urgently needed projects.

Details were provided at a press conference at the Maple View Lodge on November 12.

“Bringing the long-term care funding model into the 21st century means we have a targeted approach for improving and expanding long-term care capacity in our communities,” said Steve Clark, minister of municipal affairs and housing and MPP for Leeds—Grenville—Thousand Islands and Rideau Lakes. “For example, under the modernized funding model, Maple View Lodge will receive an additional investment of close to $7 million. This will help the United Counties of Leeds and Grenville build 132 new and much needed spaces in Athens township sooner.”

Through the funding model, the government plans to create 30,000 beds over 10 years, moving away from a one-size-fits-all approach, and instead, providing tailored incentives to address the needs of developers in different markets. It also introduces an up-front development grant to address high-cost barriers to construction.

The government is also selling surplus lands with the requirement that long-term care homes be built on portions of the properties. The Accelerated Build pilot program is also fast-tracking 1,280 spaces. The funding model has already boosted support for 74 projects, representing 10,753 long-term care spaces: 3,957 new beds, and 6,796 older beds being redeveloped to modern standards. Of the 74 projects, 49 involve the construction of a brand-new building.

| www.REMInetwork.com | November/December 2020 | 27

Mitigating Risk Amid Uncertainty Tenant screening is critical in the age of COVID

by Peter Altobelli, Vice President, Yardi Canada Ltd. It’s an understatement to say that the multifamily housing industry has undergone major disruption this year, as COVID-19 shut down large swaths of the economy and kept students and workers at home. And there seems to be no letup from the pressure on the horizon as 2020 draws to a close.

28 | Canadian Apartment | Part of the REMI Network |

FEATURE >>

V

acancy rates for rental housing are on the rise in some areas. Property managers have had to adjust their offerings to attract residents; almost 15 per cent of respondents to Informa’s Canadian Multi-Res Tenant Rental Survey stated that they prefer to work from home. More tenants felt that their units did not meet their needs.

This included demand for unit features that support work-from-home and social distancing, including in-suite laundry, dens or home offices, balconies and walk-up access.

Meanwhile, 36.5 per cent of residents are very satisfied with landlord communication during COVID. This data illustrates that the industry has been satisfactorily addressing the safety of the residents but will have to shift strategies to cater to their changing environment. With such change taking place in the industry, it is crucial that the right systems are set in place to attract the ideal resident.

Screening assumes greater urgency With softening occurring in some major residential markets and uncertainty a dominant theme of the times, minimizing risk across the business has grown as a priority for multifamily property owners and managers. Many are increasingly focused on strengthening their revenue streams by attracting low-risk residents, and that requires a reliable screening process.

But screening residential prospects efficiently and uniformly without placing an undue burden on already stretched staff members is a formidable challenge.

Fortunately, as many property managers have discovered, the process can be facilitated with automated screening systems that are built into the leasing workflow. They are designed to deliver customized recommendations and screening scores based on an apartment community manager’s screening criteria.

Some platforms even include analytics that provides insight into applicant traffic and property performance, keys to driving informed decision-making.

“The automation speeds up our screening and integrates with the rest of our residential management software solutions to comprise a one-stop-shop for residential community management.”

Upgrading capabilities when it matters the most Just how can resident screening solutions help property managers prosper in the COVID-19 era? According to Dean Holmes, senior vice president of residential operations at QuadReal Property Group, his company’s top priority at the pandemic’s outset was identifying ways to best serve residents and protect the health and safety of its field team members.

“We focused on communicating with our residents and keeping them informed. We wanted to maintain community contact while minimizing direct contact,” he says. “That emphasis allowed all QuadReal communities to remain open and operational, albeit with staggered shifts plus some amenity closures and service reductions.”

Along with maintaining continuity and connection, QuadReal leveraged technology to help its staff manage the challenges imposed by COVID-19. One automated function that aided in business continuity was resident screening integrated with the leasing workflow within the property management and accounting system. “The automation speeds up our screening and integrates with the rest of our residential management software solutions to comprise a one-stop-shop for residential community management,” says Holmes.

Delivering a seamless, complete experience Holmes and his QuadReal team regard

screening as one element of the applicant experience that encompasses finding the company, researching properties and transacting applications electronically.

“Our new solution satisfied our need for a seamless automated screening process that’s embedded in the leasing process and able to be activated by a prospect wishing to join our community or by us with equal ease,” he says. “Our new system gives us flexibility in setting credit score thresholds and other approval criteria.

So, if our communities are well occupied and we want to take steps to increase the quality of our applicants, it’s easy to adjust the criteria.”

The real value of the new screening system, he adds, comes from its contribution to “full automation of the leasing process from its beginning to the end along with giving us more clarity and comfort.”

QuadReal and other property managers across Canada are navigating an uncertain world. This environment enhances the imperative to mitigate risk with complete, accurate information on prospects’ risk before making them residents and turning over the keys to the community. These companies are using dynamic technology solutions available on the marketplace to make better decisions about prospects, which in turn increase net rental income by reducing loss from collections, evictions and legal action.

Article written by Peter Altobelli, Vice President, Yardi Canada Ltd. | www.REMInetwork.com | November/December 2020 | 29

INSURANCE >>

We’re in Deep Now Understanding your insurance premiums

by Andy Schwartze

The confusion created by COVID-19 is nowhere near the point of lifting. The American presidential election may be behind us, but the pandemic has led to new shutdowns across Europe, stirring up all kinds of new concern about the state of the global economy. Meanwhile in the background, we have civil unrest devastating downtown cores as the realties of “working remotely” have slowed a significant amount of the service industry to levels not seen since the 1950s.

F

or insurers, the headaches are just beginning. The Geneva Association, an international insurance think tank that produces high-quality research and analysis on global strategic insurance issues, has just published a scary estimate of global business interruption losses from the COVID-19 pandemic.

It has estimated that these amount to US$4 Trillion, whereas

30 | Canadian Apartment | Part of the REMI Network |

insurers only collect about US$30 Billion in premiums for business interruption insurance coverages sold.

It doesn’t take a mathematician to calculate how many years of premiums would need to be collected to pay such amounts. The industry would become insolvent mighty quickly, and any regulatory or legal attacks on this segment

INSURANCE >>

Here are some names you might recognize, along with how they did in 2019: • Affiliated FM - $145 Million in premium with a $43 Million loss. In 2018, they were thrashed with additional losses over premium income of an astounding $218 Million.

• Allianz took in $647 Million and, having spent all of that, had to throw an additional $81 Million at claims. They have lost money every year for the past five years.

• Aviva Canada took in $3.5 Billion and lost it all, plus another $34 Million.

• Economical received $2.5 Billion and dropped all of that and another $147 Million. The negative number was almost twice that the year before.

• Travelers Group banked $1.7 Billion and bled an additional $41 Million on claims.

of insurance would rapidly cause serious financial damage to the industry. In addition, while some jurisdictions have passed legislation protecting businesses from pandemic-related legal actions, these clearly apply only to businesses that have followed prescribed protocols, leaving a huge opening for plaintiffs to allege failure to follow those protocols. Legislation with a “but” attached to it is rarely worth the paper it is printed on.

For Canadian Apartment readers, who are likely seeing some nasty premium increases, here are some facts that may help you understand what is happening. Canadian insurers are mandated to a December 31 fiscal year-end. Some months later, the underwriting results are publicized, so we may all see the “Direct Premiums Written” and “Underwriting Loss” details—remember that with near zero interest rates, investment income for these guys is pretty slim. Underwriting Loss is the claims amounts paid, or waiting to be paid, in addition to Stonefortress_FE_Directory_2020_FINAL.pdf 1 2020-09-15 having paid out all the year’s premium.

There are, of course, insurers who have made an underwriting profit in 2019. Zurich, for example, posted an enormous underwriting loss in 2018, took dramatic corrective action (as many of our readers know) and squeezed out a small underwriting profit last year. Intact, Canada’s largest insurer, being a public company whose share price is to be protected at all costs, took in significant premiums in 2019 and made a comfortable underwriting profit.

Readers who do business with this insurer are well aware of how tough their underwriting approach can be.

In short, we need to remember that it is not always that we are being gouged. Insurance costs are a reflection of “accidental” social and economic misfortunes that need to be remedied. If an insurer takes in $100 of premium, against which it has $150 of losses, then the financial recovery gets ugly. Not only will that insurer want its additionally spent $50 back (which would have come from capital) it will also want to ensure that it doesn’t lose another $50 on that deal the next year. In theory then, the $100 taken needs to be doubled at the following renewal. Hence why from one year to the next, the policyholder could see premiums double from $100 to $200.

This is simplification, of course, but it is intended to illustrate that insurance rates rise and fall, not in a linear fashion but in geometric multiples. The excessive losses of past years are added to future premiums and those are also loaded up to correct the rates to where they should have been in the first place. Now, all of this tends to collapse when interest rates go up, but that is for another day as we certainly do not expect those to move for another two or three years.

If you need more input on this, by all means contact me at andy@takecover.ca

11:57 AM

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

Principal - Bert Steenburgh, CPCC/ACC

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

| www.REMInetwork.com | November/December 2020 | 31

ASK THE EXPERT >>

Minimizing Window Condensation Don’t let unchecked moisture lead to costly repairs

The cold winter weather can bring all manner of property maintenance issues, but few can cause as many headaches (or large repair bills) as unchecked condensation.

“Y

ou’d be surprised at what condensation can do if it isn’t looked after,” says Jack Albert, Associate at RJC Engineers (RJC). “Once that moisture is present, it can damage finishes, drywall, flooring, and even lead to air quality and health concerns.”

According to Albert, condensation occurs when interior humidity levels combine with colder surface temperatures, usually at windows and doors, leading to moisture in the air condensing on those surfaces. The quality of the windows, as well as the details at the perimeters where windows transition to adjacent systems (e.g. precast, concrete or brick), are often major contributing factors. Air barriers and thermal control layers are used to protect these connecting points but can fail over time or be improperly installed.

Although condensation can happen all year round, it is especially pronounced in colder seasons. One reason is that air conditioning equipment is no longer removing humidity from the environment; another is that condo owners will often use humidifiers to combat cold and dry air, and enhance comfort. Additionally, in the shoulder season (particularly, the fall), condensation often 32 | Canadian Apartment | Part of the REMI Network |

shows up as nighttime temperatures drop but interior humidity levels remain high, especially with ERV mechanical systems.

Condensation can be a common issue in older buildings with less thermally efficient windows and walls. It can also show up in newer buildings due to poor building envelope detailing or lack of dehumidification.

“It is something that we address all through the year, but typically more calls about condensation come in the winter when the conditions are more extreme, such as fogged up windows,” notes Albert.

Preventative ways to control condensation Appropriate window detailing will often prevent condensation; however, in the absence of that, residents do have a few techniques at their disposal. These include: • opening blinds to allow heat to get to the windows • using exhaust fans when cooking and washing • and, generally monitoring and controlling humidity levels throughout the season In cases where condensation has taken root over long periods of time, or if the above steps are not sufficient to eliminate the problem,

Albert says it pays to call on professionals: “This isn’t something you want to leave unchecked over a long period, because the repairs will add up.”

To that end, building envelope professionals like Albert will work with mechanical engineers to evaluate those HVAC systems and make sure they’re both working properly and in concert with the building envelope system. They can also perform infrared thermography scans, conduct air leakage tests, carry out thermal analysis, and review building designs to find the root cause of the issue.

“There’s always the possibility that the walls or windows weren’t constructed properly to begin with, in which case we’d move to a repair or retrofit,” Albert notes, adding, “Of course, being proactive about condensation is a better bet. That’s why we also work with developers in the early stages of a development to assist in design detailing and specification during the design phase to reduce the risk of condensation in the first place.”

Condensation may not look like much of a problem at first glance, but like all building performance issues, it pays to take notice before it becomes serious.

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

Canada’s Most Widely Read Condominium Magazine

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

Apartment

September 2019 • Vol. 34 #4

CANADIAN

SEPTEMBER 2018

SERVING THE FACILIT Y CLE ANING & MAINTENANCE INDUSTRY

JUNE 2019

VOLUME 16 / NUMBER 4 / SEPTEMBER/OCTOBER 2019

VOL. 34 NO. 2 • JUNE 2019

PRODUCTIVE

OUTSOURCING

ENERGY

COMPACT PORTFOLIOS

BANK OF CANADA’S HQ

� NUISANCE ANIMALS: KEEPING RACCOONS AT BAY

COMMON AREA RENOS

MODERNIZATION MEETS PRESERVATION

HUMAN CENTRIC

LIGHTING

Publication Agreement #40063056

� GREEN ROOFS: SUSTAINABLE SHELTERS FOR PESTS?

ON THE LEVEL

PA R T O F T H E

P A R T

PA R T O F T H E

PA R T O F T H E

PA R T O F T H E

O F

T H E

P A R T

O F

T H E

P A R T

O F

T H E

P A R T

O F

PA R T O F T H E

PA R T O F T H E

P A R T

O F

T H E

+

Upgrading the resident experience

FOCUS ON LIGHTING

Canadian Publications Mail Product Sales Agreement No. 40063056

P A R T

O F

T H E

P A R T

O F

CREDIT

T H E

P A R T

O F

T H E

TRENDS

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

VOLUME 16 / N NUMBER UMBER 2 / JUNE 2019

> SOCIAL MEDIA COLUMN Sponsored by MediaEdge

WHO'S WHO 2019

June 2018 • Vol. 33 #2

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

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

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

SPONSORED BY:

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

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

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

P A R T

O F

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

T H E

INCLUSIONARY

ZONING

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

Publication Agreement #40063056

T H E

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

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

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

By Steven Chester

SERVING THE FACILIT Y CLE ANING & MAINTENANCE INDUSTRY

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

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

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

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

APRIL/MAY 2017

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

CARING FOR FRAGILE FLOORS

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

MALL GERMS: TOP FIVE HOT SPOTS

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

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

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

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

SCENT OF

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

www.REMInetwork.com | June 2018 15

14 CONDOBUSINESS | Part of the REMI Network

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

PA R T O F T H E

PA R T O F T H E

CANADA $15.00

O F

BY DAVID ELMALEH AND GABRIELA CARACAS

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

Repositioning Challenges and Opportunities

INSURING YOUR

PROPERTY PA R T

PM#40063056

PM#40063056

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

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

PA R T O F T H E

MARKET UPDATE

PART OF THE

+

Occupiers’ liability: A board meeting gone wrong

STANCE

plus

Want to stand out on social media?

Don’t fake it

P A R T

O F

T H E P A R T

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

O F

T H E

PM#40063056

Canada’s Most Widely Read Condominium Magazine

PA R T O F T H E

CO-LIVING

Ask the Expert: Budget-friendly renovations

PM#40063056

PA R T O F T H E

Q3 SALES ACTIVITY

T H E

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

plus

PA R T O F T H E

CO-GENERATION

AT CARLETON U

CANADA $15.00

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

FORWARD THINKING HOUSING SOLUTIONS FOR A BETTER TOMORROW

What to consider when refreshing public spaces

PM#40063056

� GET IN LINE WITH ONLINE TRAINING

PM#40063056

Sustainable Conductors for Cost Savings

REAL ESTATE MANAGEMENT INDUSTRY

P A R T

O F

T H E

Smart Ideas

WINTERIZING OUTDOOR SEATING AREAS

Creating safe, pandemic-friendly spaces for tenants As the world continues to navigate pandemic restrictions, many food and beverage businesses have been forced to rely on outdoor spaces to accommodate customers into the cooler autumn months. Some of the steps and lessons learned can be applied to multiresidential properties.

As winter arrives, having a safe outdoor area for tenants to gather at a distance is imperative. Here are some tips to ensure your property delivers: 1. Install commercial outdoor patio heaters Placing large heaters in key areas around your patio or garden will help create a warm space for tenants in seek of fresh air, even on cold nights.

2. Keep outdoor seating areas well lit, and tables and benches adequately spaced out Ensure patio furniture, picnic tables and benches are well distanced from one another, and well lit when the sun disappears. Aesthetically pleasing lighting will not only provide visibility and safety, but it will also help to create an inviting ambiance.

34 | Canadian Apartment | Part of the REMI Network |

3. Thoroughly clear walkways to avoid slip and falls Now more than ever, property managers must keep paths and walkways clear of ice and snow to ensure tenants can continue to safely access all outdoor amenity spaces through the winter months. Be vigilant when it comes to snow removal!

More tips from ICC Recently, the International Code Council (ICC) published guidelines for business owners and designers looking to winterize their outdoor seating areas. Applicable takeaways for apartment owners include considerations about location, fire safety, accessibility, and proximity to restroom facilities. For more information, visit www.iccsafe.org

STABILITY AND BALANCE

AT THE TOP!

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

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

UPGRADES | ELECTRICAL PLUMBING | MILLWORK

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

ACE

GROUP OF COMPANIES

ACE

GROUP OF COMPANIES

Your One Stop

SOURCE

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

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

COMMERCIAL • MULTI-UNIT • RESIDENTIAL • INDUSTRIAL • INSTITUTIONAL