CAM October 2021

Apartment CANADIAN

VOLUME 18 / NUMBER 5 / OCTOBER 2021

GROWTH & RESILIENCE IN UNCERTAIN TIMES THE KEYS TO AVENUE LIVING’S WINNING INVESTMENT STRATEGY

plus

PA R T O F T H E

NO-FAULT EVICTIONS

PM#40063056

VACCINATION

POLICIES INSURANCE MATTERS

P A R T

O F

T H E

Over 25 Years’ Experience in Renovating Apartments and Condominiums

General Renovations

Kitchen Renovations

Painting

Cleaning of Units

Plumbing *

Flooring

Bathroom Renovations

Electrical *

Fire and Flood Restoration

Custom Cabinetry

Drywall and Crown Molding

Fencing

* Use a Licenced Plumber and Licenced Electrician (ESA)

www.multitech2000.com

Municipal Licence No. T85-4186258

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

FLOURISHING IN A CRISIS

/cammediaedge /cdnapartmentmag /mediaedgecam

Canada’s apartment market has come through the pandemic relatively unscathed compared to other commercial real estate sectors, but many landlords and smaller property management firms continue to weather challenging times. Then there are companies like Calgary-based Avenue Living which has grown and thrived in the last eighteen months, primarily due to a sound investment strategy and an unwavering commitment to staying the course. In our cover story, we look at how catering to Canada’s “stable and tenacious” workforce enabled Avenue Living to flourish in a time of crisis.

In this issue, we also share interesting data from a recent CMHC report that delves into the implications of development-led evictions.

With affordable housing already in high demand, no-fault evictions are creating more woes for Toronto’s lower-income residents struggling to find suitable homes. (See below for additional drivers that lead to residential evictions.)

We also provide new and notable apartment transactions, insight into today’s prohibitive insurance market, and legal advice for how to build smart vaccination policies specifically for shared indoor amenity spaces. COVID cases are slowly declining in most of Canada’s provinces, but the world has forever changed. We’ll continue to cover the stories that matter to housing-providers of all sizes as we strive to put the pandemic behind us once and for all.

Editor

Erin Ruddy

Art Director

Annette Carlucci

Graphic Designer

Thuy Huynh

Production Manager

Rachel Selbie

Contributing Writers

Andy Schwartze

National Sales

Bryan Chong Kelly Nicholls Blair Wilson

Digital Media Director Steven Chester Circulation

Canadian Apartment Magazine is published six times a year by:

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

President Kevin Brown Group Publisher Sean Foley Copyright 2021 Canada Post Canadian Publications Mail Sales Product Agreement No. 40063056 ISSN 1712-140X Circulation 416-516-8186 ext. 234 circulation@mediaedge.ca

Sincerely,

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.

Erin Ruddy @cdnapartmentmag

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.

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.

WHAT DRIVES EVICTION? COMMON FACTORS INCLUDE: Tenant factors Rent arrears

Fraud

Illegal activities in the unit

Landlord factors Violent/ unsafe behaviours

Hoarding Breach of policies

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

Lack of unit maintenance/ damage

Vacancy management (rent maximizing)

Change to property use (e.g. own-use)

Prohibitive rent increase

Renoviction

Landlord behaviours, including neglect of property and discrimination

Our Business is to Make Yours Shine!

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

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

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

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

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

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

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

COMMITTED TO EXCELLENCE SINCE 1986

Apartment CANADIAN

VOLUME 18 / NUMBER 5 / OCTOBER 2021

FEATURES 14 Building Wellrounded Vaccination Policies Legal tips for residential landlords

COLUMNS 8 Transactions Apartment Market Update 10 CMHC Exploring Development-led Evictions Data 22 Ask the Expert Don’t Drown in Debt Due to Flooding 24 Newsworthy Industry Hot Topics 28 Insurance The Insurance Market Blues

by Andy Schwartze

COVER STORY

DEPARTMENTS

16 What it Takes to be Best-in-Class

Avenue Living’s investment strategy proves stability, growth, and staying the course are a winning combination

by Erin Ruddy

4

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

ON THE COVER:

Apartment CANADIAN

VOLUME 18 / NUMBER 5 / OCTOBER 2021

Calgary skyline

Editor’s Note GROWTH & RESILIENCE IN UNCERTAIN TIMES

30 Smart Ideas

THE KEYS TO AVENUE LIVING’S WINNING INVESTMENT STRATEGY

plus

PA R T O F T H E

PA R T O F T H E

NO-FAULT EVICTIONS

PM#40063056

VACCINATION

POLICIES

O F

T H E

P A R T

INSURANCE MATTERS

CAM_October_2021.indd 1

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

P A R T

2021-10-12 2:15 PM

Powered by

O F

T H E

DIVERSIFIED CONSTRUCTION

24 HOUR EMERGENCY SERVICE ASPHALT PAVING CONCRETE PAVING SITE servicing LANDSCAPE CONSTRUCTION BUILDING RESTORATION WINTER SNOW SERVICES service@forestgroup.ca 416.524.3000 www.forestgroup.ca

APARTMENT MARKET UPDATE Robust multifamily transactions recorded in Q2 2021 Multifamily transactions hit a record-breaking $5.3 billion across Canada in the first half of 2021, representing one pinnacle of what JLL terms the current “beds and sheds” investment focus. Both sectors — multifamily and industrial — recorded sales volume well above their five-year quarterly averages in Q2, and they’re also tagged as major factors in $8.2 billion in development land sales during the first six months of the year.

“W

e estimate that the intended use on over 75 per cent of these land transactions is either residential apartments, residential condominiums or industrial buildings, further underscoring the dominance of these sectors in the investment landscape,” JLL analysts affirm in a newly

released review of investment activities to midyear 2021.

Despite some COVID-19-related setbacks, including some concerns about more rent defaults when the Canada Emergency Relief Benefit (CERB) is terminated, multifamily assets are riding counterbalancing waves.

“Just as pent-up household savings during the pandemic led to a flood of consumer spending as restrictions eased, so too has pent-up dry powder — the unspent funds of real estate investors — boosted capital markets in 2021,” JLL analysts surmise.

Among upbeat fundamentals for

New & Notable Transactions: Address

City

# of Units

Sale Price (Millions)

Sale Price/ Unit

Purchaser

Tower Hill East 330 Spadina Rd

Toronto

141

$110.0

$780,142

CAPREIT

2.

2 Dorado Crt

Toronto

86

$26.3

$305,233

Golden Equity Properties

3.

1287 Costigan Rd

Toronto

105

$62.3

$595,714

Realstar Group

4.

Island Park Towers

Ottawa

642

$267.0

$415,888

Homestead

5.

1045 Burnaby St

Vancouver

36

$28.8

$800,833

Gracorp Capital Advisors

6.

Domaine Choisy

Montreal

412

$59.1

$143,325

Greyspring Apts/Cogir

1.

8 | Canadian Apartment | Part of the REMI Network |

Source: Morguard

TRANSACTIONS >>

Multifamily transactions hit a record-breaking $5.3 billion across Canada in the first half of 2021. multifamily, they cite resurging rent levels following the pandemic-induced dip and the expected arrival of more than 1.2 million immigrants in the 2021-23 period. Among optimistic signs, they note a pullback on the concessions that landlords had been offering to new tenants in recent months. Already, rents for one-bedroom units in Calgary and southwestern Ontario have climbed above prepandemic rates. However, they suggest stillrecovering dynamics in Toronto, Vancouver and Montreal can hold other charms for investors.

“Buyers in many cases are applying a pricing premium to assets with vacancy, as they offer an opportunity to add value and step up rents,” JLL analysts conclude.

Nearly 70 per cent of Q1 and Q2 multifamily investment occurred in the six major Canadian markets — Vancouver, Calgary, Edmonton, Toronto, Ottawa and Montreal — JLL surveys.

Vancouver accounted for more than 26 per cent of the total investment volume, with $1.4 billion in transactions, followed by Toronto’s $1.2 billion in sales.

Calgary saw the most modest activity among the six markets, trailing its 2020 pace with transactions falling well short of $100 million in the first half. Meanwhile, Calgarybased Avenue Living started off the third quarter with a $275-million acquisition in Edmonton, a deal that significantly surpassed Edmonton’s $177-million investment volume during the first half of the year.

Looking to supply initiatives in major markets, JLL analysts highlighted Calgary’s ambition to convert office buildings to residential space, suggesting that nearly 6 million square feet of space could potentially be in transition. They also cite British Columbia’s promised $2 billion low-interest

loan fund to encourage construction of affordable housing for households with annual incomes below $75,000 and Montreal’s new 20-20-20 scheme. The latter is drawing mixed reviews.

“This bylaw promotes the construction of social, affordable and family housing in multi-residential projects. In return, developers are offered a ‘zoning bonus’ that can include increased building density or otherwise more favorable zoning. Critics are concerned this approach will complicate permits approval and increase costs, driving developers off-island and therefore exacerbating the housing shortage in the city,” JLL analysts report.

Multifamily transactions hit a recordbreaking $5.3 billion across Canada in the first half of 2021, with Q2 well above the fiveyear quarterly average.

ARE YOU CONTEMPLATING THE SALE OF YOUR APARTMENT PORTFOLIO/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?

Sales Volume

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

Over 54,000

Suites Sold

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

National Apartment Group – Toronto

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

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

Over $6.9B

CBRE Limited, Real Estate Brokerage

30 Years

* PROFESSIONAL REAL ESTATE CORPORATION

of Experience

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

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

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

| www.REMInetwork.com | October 2021 | 9

Exploring the impacts of development-led evictions New CMHC data sheds light on Toronto’s changing rental housing landscape The landscape of rental-housing has changed in recent years, with notable sources citing a marked rise in developmentled evictions. Commonly referred to as “renovictions”, this type of displacement occurs when a property owner or landlord applies to evict a tenant due to the desire to make changes to the unit, building, or land. Research in this area has been sparse, and as such, CMHC recently embarked on a study to delve more deeply into the issue.

10 | Canadian Apartment | Part of the REMI Network |

CMHC REPORT >>

F

ormal, development-led eviction applications in Canada’s largest municipality, the City of Toronto, increased in prevalence between 2010-2020,” observed report authors Christopher Zakher and Jordan Nanowski from CMHC’s Housing Market Insights team. “This phenomenon, which relates directly to the potential loss of rental housing for certain households—and, in the context of a supply-constrained rental market such as Toronto’s, the potential loss of limited affordable rental housing options—has largely gone unexplored.

For this reason, we sought to uncover key trends underpinning it over the previous decade.”

Process & background Using eviction applications as a proxy, the report provides insight into the prevalence of development-led evictions in Canada’s largest municipality and puts these findings in context with the loss of rental housing it may cause for specific households in need of affordable options.

Essentially, the study set out to answer the following three questions: 1. What has been the prevalence of formal, development-led eviction applications in the City of Toronto over time?

2. Was the assumed work that inspired these formal eviction applications warranted?

3. Primarily, who was submitting these applications — existing or new rental property owners?

Key findings When compared to the size of the primary rental market stock, the prevalence of formal, development-led eviction applications between 2010-2020 was low.

Nevertheless, these eviction applications did increase markedly over this period.

Applications were overwhelmingly concentrated in the Former City of Toronto and appeared four times higher for rental units in the secondary rental market versus the primary rental market.

Over the previous decade, formal, development-led eviction applications increased simultaneously with the widening gap between average asking (i.e., vacant unit) and average market (i.e.,

Rental units in older structures in the city’s primary rental market tended to be the subject of formal, developmentled eviction applications. occupied unit) rents in the city’s primary rental market.

Rental units in older structures in the city’s primary rental market tended to be the subject of formal, development-led eviction applications. As well, city locales with a larger share of rental housing identified as requiring major repairs saw a greater number of applications.

Finally, in the primary rental market, it was relatively common to see formal, development-led eviction applications submitted following the sale of a rental property to a new owner.

Ongoing implications First and foremost, given the scarcity of affordable rental housing, tenants who are being evicted for developmentled renovations are then faced with the greater challenge of finding a comparable new home. According to the report authors, this may explain why there has been greater disagreement on the part of tenants with N13 eviction notices in recent years. (Recall that these eviction applications are submitted to the LTB when a tenant disagrees with the N13 notice of eviction or does not move out of their rental unit upon receipt of the notice).

Addressing the lack of rental supply would seem to be the most obvious solution to resolve this over the long-term.

The second implication, which comes in the form of a question, is how do we balance the need between adequate rental housing and affordable rental housing in the short-term? In other words, is it possible to address the inadequate housing in which nearly one in 10 of the city’s renter households find themselves in without evicting them

into a more expensive, oftentimes, unaffordable rental market?

Thirdly, the report identified a plethora of data gaps when it comes to development-led evictions. Most notably, the report authors stated they were not able to acsertain how many formal, development-led eviction applications led to a single eviction, nor could they gauge the totality of development-led eviction activity taking place (i.e. they were unable to quantify the number of evictions taking place informally).

As the rental housing landscape changes and the prevalence of development-led evictions continues to rise, one obvious implication is that there are few measures currently in place to address the fallout associated with the lack of affordable housing.

Additional CMHC findings related to evictions Between October 2019 and March 2020, CMHC conducted in-depth, semi-structured interviews with both professional housing stakeholders and tenants who’d lived through an eviction.

This analysis revealed that: • development-related and ‘no-fault’ evictions are occurring with more frequency; • there has been a shift from evictions driven by tenant-factors to those driven by landlord-factors; • the changing scale of evictions, with mass evictions involving entire buildings at once, were reported in Winnipeg, Vancouver, New Westminster, Kitchener–Waterloo, Hamilton, Toronto, and Halifax.

To find out more about the changing topography of the rental housing landscape, and specifically, what’s driving residential evictions, visit: www.cmhc.ca. | www.REMInetwork.com | October 2021 | 11

SPONSORED CONTENT

OUTSOURCING PROPERTY MANAGEMENT ACCOUNTING The benefits of trusting your back-office to a third-party specialist

I

f managing your back office is bringing you stress, rest assured that you aren't alone. As the property management sector grows in volume and complexity, building teams across the industry are working overtime to manage day-today financial and tenant management tasks.

Not that property management has ever been easy. As any professional in the industry can attest, keeping owners and tenants happy, maintaining asset value, and navigating evershifting rules and regulations has always required a large degree of time, talent and resources.

So what’s different today? In addition to traditional challenges, property managers are being stretched thin in their efforts to keep pace with heightened pandemic measures, tougher economic conditions, growing competition, and ESG (environmental, social, and governance) mandates. Moreover, many are (fortunately) seeing their portfolios grow, requiring more from their back office.

It’s a common challenge in property management. Consider, for example, the tale of “Property Biz,” a hypothetical company that has expanded its business by adding to its portfolio over the last years. This is undoubtedly good news, but that growth

has left Property Biz’s back-office teams struggling to handle the added work and pressures. They’re overwhelmed, understaffed, and at risk of burning out or falling behind while managing critical financial tasks. Moreover, their everincreasing portfolio is increasing demand for people and resources they may not have available.

In short, Property Biz is growing, but it needs support.

Akan T. Rajah, Managing Partner with Assetsoft, has seen this story play out numerous times within the property management community.

"Clients come to us because they are looking for a trusted partner to take some of that back-office load,” he says. “The good news is that there are ways to offload that back office burden so the team can focus on their core business and generating value for their occupants and stakeholders."

OUTSOURCING ACCOUNTING With property teams' now asked to divide their focus and talents across an increasing number of responsibilities, keeping the back office in order can be a challenge.

Herein, says Rajah, there is value in pursuing an outsourced

SPONSORED CONTENT

solution: "We can take all that back-office work off our clients' hands by providing a dedicated and industry-trained team on our end who will handle all their accounting tasks."

And there is no shortage of tasks that Rajah and his team are trained to handle. AssetSoft's third-party accounting services include: • Rent collection & management: Handling the collection and processing of tenant rent cheques, including managing deposits into the client's bank and updating the enterprise resource planning (ERP) systems (e.g., Yardi) accordingly.

Similarly, Assetsoft can take appropriate actions on behalf of its clients when rents are late (e.g., fees, notices, system updates, etc.).

• Vendor management: Collecting vendor invoices, updating ERP systems, and notifying clients when they need to be approved and paid.

• Reconciliations: Managing all reconciliation activities with the bank and other partners as needed.

• Lease audit/abstraction: Conducting third-party audits to confirm that the expenses clients are charging for (e.g., rent, utilities, etc.) are the same as what was agreed upon from the start, and to identify any irregularities or red flags that might save even more costs that would have otherwise gone unnoticed.

• Bookkeeping: Ensuring all systems are updated and no accounting information is falling between the cracks.

• Reporting: Creating owner reports to indicate how the building is performing over a period of time.

These are just some of the tasks that can be offloaded to a

trusted third-party accounting specialist. And the keyword, says Rajah, is trust: “Accounting deals with a lot of sensitive information, and it can be hard to pass those off to a third party. That's why the first part of providing relief for our clients is providing them with peace of mind knowing our team is well trained and experienced to take on their accounting tasks with the highest integrity.”

It may take time to establish that trust, he adds. Still, once clients see how the outsourcing process works, and the transparency within, they are happy to let Assetsoft's team do what they do best: "Our offshoring model leverages the strength of conventional outsourcing, but ensures the client has direct control on their business outcomes. Because of this, clients can establish their very own team without worrying about all legal, human resource, and technical requirements."

AN UPSCALING ADVANTAGE The industry is expanding. Demands are mounting. Portfolios are growing. Herein, an additional benefit of outsourcing is the ability to tackle heightened accounting requirements without the need to hire staff.

For example, Rajah says, "When one of our clients buys new buildings, they don't have to worry about finding new staff. All they do is tell us and we expand our team with more people who are fully-trained in back-office accounting and management."

Indeed, outsourcing allows property management teams to offload time-consuming HR tasks, such as staff onboarding, training, and upskilling.

Moreover, adds Rajah, "The costs of bringing new staff on are all absorbed on our end. That includes wages, healthcare plans, insurance, and managing all related tax and labour laws."

BY THE NUMBERS Adding up the advantages, it’s easy to see how outsourcing property management accounting can bring real, long-term value to one’s operations. And today, any extra support goes a long way.

"It's about making lives easier for commercial property management talent," adds Rajah. "Managing a property is much more complex and cost-consuming than it used to be, but like many other modern-day operations, the right partners and technologies can make a huge difference."

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

| www.REMInetwork.com | October 2021 | 13

BUILDING WELL-ROUNDED VACCINATION POLICIES Legal advice for multi-residential apartment owners

by Kristin Ley & Laura Gurr Mandatory vaccination policies have been top-of-mind among business owners recently, including within the multi-residential housing sector. For landlords, it is highly recommended that two distinct sets of policies are put in place to protect residents and properties: 1) policies for employees, and 2) policies relating to the use of non-essential indoor amenities.

P

art of a well-rounded risk management strategy, these two separate vaccination policies will help landlords better protect occupants and employees from the spread of COVID-19, while also lowering their liability risk.

Workplace policies Many businesses, organizations, universities and colleges across Ontario have made similar announcements or have released their policies requiring all employees, contractors and visitors to be vaccinated. Universities and colleges have also implemented policies 14 | Canadian Apartment | Part of the REMI Network |

requiring proof of vaccination for students living in on-campus housing. Any vaccination policy applying to employees must comply with the Occupational Health and Safety Act, the Ontario Human Rights Code and privacy laws.

In strongly recommending that all employers have a vaccination policy, Toronto Public Health identified minimum requirements that should be part of any vaccination policy: • Workers to provide proof of vaccination series approved by Health Canada or the World Health Organization

• Unvaccinated employees to provide written proof of a medical reason from a physician or nurse practitioner that includes whether the reason is permanent or temporary • Unvaccinated workers to complete a vaccination education course on the risks of being unvaccinated in the workplace In addition to the above minimum requirements, it will be necessary for employers to consider what precautions or protections will be required for those who are unvaccinated in the workplace

FEATURE >>

(PPE, submitting to regular COVID-19 testing, etc.).

These recent announcements and legislative directives have elevated the standard of care when it comes to employers’ obligations under health and safety legislation and are also important measures to facilitate the prompt and necessary vaccination against COVID-19 for all eligible Ontarians.

Indoor amenities The provincial government has advised that, as of September 22, 2021, Ontarians will need to be fully vaccinated (i.e., two doses plus 14 days postsecond vaccine) and will need to provide their proof of vaccination along with photo ID in order to access certain public settings and facilities.

Though the text of the proposed regulation has not yet been published, the government has confirmed to industry associations that apartment buildings and condominiums will not be considered public settings or facilities for the purposes of the government’s vaccination requirement.

Having said that, apartment buildings and condominium corporations may still want to implement their own vaccination rules and

policies with respect to the safe use of their non-essential amenities. Multi-residential landlords and condominium boards will need to consider a number of factors in deciding whether to implement rules, and the form of those rules, including: • liability for failing to take steps; • financial considerations; • how the rule will be implemented (e.g. selfreporting, controlled access system, etc.); • and, the physical aspects of their particular buildings.

It is strongly recommended that any vaccination policy for indoor spaces clearly distinguish between “essential” indoor spaces (e.g. garbage rooms, mailroom, laundry facilities) and “non-essential” indoor spaces (e.g. pool, gym). Landlords should also consider how they will accommodate individuals who cannot get vaccinated on the basis of a prohibited ground of

discrimination (e.g., a disability or a religious objection to vaccination).

Privacy considerations Finally, it is important to remember that any vaccination policy must comply with applicable privacy laws. Privacy considerations should be explicitly included in each policy by providing information about how someone’s vaccination status will be collected, used and how long the information will be retained. Generally, organizations should consider ways to limit the information that they collect and how long that information is retained.

Landlords and condominium boards should consult with their legal counsel in deciding whether to implement a policy or rule with respect to their workplaces and amenity areas; to discuss what the contents of any rules or policies will be; and how the rules or policies will be implemented.

Kristin Ley and Laura Gurr are partners with Cohen Highley LLP in London. Cohen Highley LLP represents landlords, property managers, non-profit housing providers, co-op housing providers, and condominium corporations.

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

416-736-2524

| www.REMInetwork.com | October 2021 | 15

COVER STORY >>

WHAT IT TAKES TO BE BEST-IN

Put to the test by COVID, Avenue Living’s investme growth, and staying the course are a winning comb

COVER STORY >>

ES N-CLASS

ent strategy proves stability, bination

By Erin Ruddy The pandemic has had devastating consequences for many Canadian industries, the rental housing sector being one of them. Faced with higher operating costs, unprecedented vacancies, and prolonged periods of lower monthly income, smaller landlords in particular, were heavily tested by COVID, and many continue to claw their way back to profitability. Then there are companies like Calgarybased Avenue Living, a thriving asset management firm that not only survived the onerous conditions but emerged all the stronger for them. The reason? A sound investment strategy that favours Class B and C assets catering to what it calls “Canada’s stable and tenacious” workforce. | www.REMInetwork.com | October 2021 | 17

“We have built an operating platform that focuses on serving our residents first,” says Anthony Giuffre, Founder, Chief Executive Officer and Executive Chairman at Avenue Living Group of Companies. “For over 16 years we have focused on assets and markets that serve the workforce housing demographic made-up of residents who earn between $15 and $50 an hour.”

This demographic includes essential workers and frontline employees from the service and health care sectors, as well as supply and logistics, and infrastructure workers—a segment Giuffre refers to as one of the most stable populous bases in Canada.

“From the beginning, we have seen the potential in Class B and C assets,” he says. “We’ve always invested in the fundamentals, and we’ve made sure we built a nimble team that can respond to new opportunities as they come up. What we recognized early, and what 18 | Canadian Apartment | Part of the REMI Network |

we still live by, is that our business must put operations first to make any investment successful. The ability to pivot when necessary, along with the 10,000 mistakes we’ve made on our journey, has helped us formulate the Avenue Living platform into one I would consider bestin-class—a platform filled with the best and the brightest continuously seeking a better way through investment in its people, technology, and assets.”

And those are not empty words, as the last two years have illustrated.

Like all successful businesses, Avenue Living had to pivot quickly to remote operations while responding to federal and provincial health measures. Having a strong technological backbone allowed it to implement urgent new steps quickly and seamlessly, shifting to virtual viewings and digital communications without the upfront challenges other property management teams faced.

COVER STORY >>

Moreover, it never once deviated from its strategy. “We stuck to the fundamentals and continued to seek out Class B and C assets in markets that showed potential for stability and growth,” says Giuffre. “Our platform has been key to our growth. It has allowed us to bring almost everything in-house, increasing our efficiency and effectiveness.

We have teams that provide accounting, finance, human resources, marketing and legal services, as well as a group of underwriters, analysts, and customer service specialists. We even have our own engineering and project management teams. These are services most operators don’t have at their disposal—and having them in-house allows us to capture a majority of the value chain and take advantage of opportunities as they arise.”

Market trends and opportunities Most major rental markets took a nose-dive in 2020, and Alberta markets were no different. According to CMHC’s 2021 Housing Outlook Report, Calgary was hit especially hard due to its exposure to the energy sector and significant job losses incurred by the pandemic, all things contributing to high apartment vacancies not seen since 2017. Like elsewhere in Canada, tenants who suddenly found themselves working from home began leaving the downtown core in droves in seek of cheaper rent and more space—a trend that worked in Avenue Living’s favour.

“We’ve seen a lot of reverse urbanization,” says Giuffre. “People are moving to smaller centres, and they’re placing more value on space because they’ve been spending more time at home. The buildings we invest in are often older and have larger floorplans than new builds. We find there’s more occupancy pressure in the older stock, and we’ve seen a shift in focus and expectations, as well. Residents expect to have a more complete experience now. They’re home more and they’re expecting more from their property manager. They expect quick response times and open lines of communication.”

They also expect more bang for their buck when it comes to the units themselves. In that respect, Avenue Living says its ahead of the game — the majority of its rental portfolio consists of older properties, which often offer more space and established community amenities like transit, schools, and shopping.

“We choose assets for which capital investment makes sense,” Giuffre explains. “That is, whatever will get us the most value for our investment dollar. The assets we often choose are in great locations but may be older buildings that require some maintenance upgrades like roofing or heating systems.”

With each building upgrade driven by three main goals—to make residents’ homes safer, more comfortable, and to provide value to investors—Giuffre says every capital investment is the result of careful analysis: “We primarily look for assets where we can add investment into the common spaces and outdoor areas. For example, we put in a playground at one of our properties in Lethbridge. This gives residents a safe, comfortable place to gather and our investors an incremental return through rent accretion.” | www.REMInetwork.com | October 2021 | 19

COVER STORY >>

“Antiquated methods of managing low-density property, including mom-and-pop and the live-in caretaker model, are being phased out.”

Opportunities in a fragmented market While COVID has created a challenging landscape for many, Avenue Living is in a great position to forge ahead and sees plenty of opportunity for growth within the market and demographics it serves.

“Over 70 per cent of the rental universe is fragmented under various management styles, and there’s a massive changing of the guard happening in multifamily residential real estate,” says Giuffre.

“There is a big difference between passive ownership and active ownership.

Antiquated methods of managing lowdensity property, including mom-and-pop and the live-in caretaker model, are being phased out.”

20 | Canadian Apartment | Part of the REMI Network |

A lot of small operators are ready to pass their assets down to the next generation—but, as Giuffre points out, the next generation is not necessarily interested in the headache of managing a property. At the same time, the older generation is not interested in making the necessary investment in the buildings or the tech needed to compete in today’s operating environment.

“So we’re moving forward,” he says, “consolidating this fragmented industry and bringing best-in-class operations with it. Our pipeline for potential new purchases across our five mandates is over $1 billion across Canada and the United States.”

Opportunities in proptech & ESG Meanwhile, Avenue Living also has its sights set on disruptive technologies that will help it improve and build customer relations.

“We’re interested in how proptech can help us improve operations and the resident experience,” says Giuffre. “In the past, the real estate industry has been slow to adopt new technology, but we feel that with the generational shift and pressure from valueconscious residents, proptech is really going to present value-add opportunity. Our investment in that area is going to be a longterm differentiator for us.”

Additionally, Giuffre says Environmental, Social & Governance has become a big

COVER STORY >>

part of Avenue Living’s “go-forward” strategy, with the company having recently executed some exciting pilot projects around energy and water conservation.

“We’re looking for ways to reduce our carbon footprint,” he says. “We’re excited to explore the possibilities of renewables, for example, implementing solar panels on our rooflines.”

And while there continues to be significant opportunity for growth here in Canada, the group also has its eye on the U.S. where it currently owns properties in Cincinnati, OH, Colorado Springs, CO, Kansas City, KS and Madison, WI. Excited at the prospect of expanding further south of the border, Giuffre concludes: “We are proud of the accretive growth we have experienced from all our funds.

Furthermore, the demand we’re seeing from the capital markets shows that our business strategy is striking the right tone with investors. Ultimately, I’d like us to continue to expand the size of our portfolio and continuously improve how we operate, both of which are highly correlated. That’s our commitment to our residents and investors.”

About Avenue Living Since 2006, Avenue Living has grown from a single investment to managing over $3.0 billion in assets, including workforce housing, commercial real estate, farmland, and selfstorage. As of September 2021, the Calgary-based firm owns and operates over 13,000 residential rental units in Western Canada and the United States.

INTERCOM INNOVATION FROM HIVE AND INLIGHT SOLUTIONS

Contact InLight for a Free Assessment neil@inlightsolutions.ca (647) 294-1787 2 Holland Dr Unit 10 Bolton, Ontario, Canada, L7E 1E1

LED LIGHTING

Visit our website to learn more www.inlightsolutions.ca/hive-x-inlight

EV CHARGING STATIONS

A proud member of the following associations:

| www.REMInetwork.com | October 2021 | 21

ASK THE EXPERT >>

Don’t Drown in Debt due to Flooding 5 ways to mitigate losses from water damage

by Chris Della Mora For most people, the word “flood” conjures images of large-scale natural disasters like the Southern Alberta flood of 2013 or the Fort McMurray flood of 2020. While climate change has increased the prevalence of these weather-induced disasters, floods caused by plumbing and appliance failures happen daily—and sadly, they are often preventable.

22 | Canadian Apartment | Part of the REMI Network |

ASK THE EXPERT >>

“A

ll-tolled, flooding is the leading loss driver for real estate owners in Canada, making it all the more surprising that many property owners are not prepared for it when it occurs.

According to findings from a recent national survey, 57 per cent of Canadians said they have not taken any steps to protect their property in case of a flood, while a similar number indicated they are “not concerned” about water damage in the future.

For apartment owners seeking to renew their insurance, the difference between sinking or swimming often comes down to whether improvements have been made to the building’s plumbing infrastructure or whether a water risk mitigation plan has been implemented.

In other words, preventing water damage should be high on every apartment owner and property manager’s list of concerns.

Consider this common scenario: A tenant on the fourth floor experiences a flood due to a leaky pipe or a toilet malfunction, and subsequently, every apartment unit below it now has water damage. Costs in this case would add up very quickly. To make matters worse, a majority of Canadians wrongly assume their insurance will cover them. What’s more, the average insurance claim for water damage costs about $10,000—not an insignificant sum.

For owners of newer multifamily buildings, don’t think you’re immune to this scenario. In addition to tenants potentially being negligent, infrastructure problems can create their own risks—from aging pipes and poor water chemistry to improperly installed plumbing systems.

But water damage doesn’t have to be a big deal, provided it’s not an annual occurrence. Insurers look carefully at a property that files annual claims for water damage, and they may either increase insurance premiums or deny coverage outright. As a result, many buildings require tenants to carry full policies covering property and liability, which transfers the liability from the building owner to the tenant. After all, the main exposure for tenants is damage to contents.

Going back to the scenario above, if each tenant has appropriate coverage, the tenants living on lower floors are covered by the insurer of the fourth-floor tenant.

A proactive approach: Some losses can be managed through tenant coverage, but the apartment owner and property manager are still responsible for taking care of buildingwide issues, such as the plumbing system. Insurers may prefer certain plumbing systems over others, but insurance premiums will depend largely on the size of the deductible (retained risk), and the risk mitigation strategies that are employed.

Lower your risk of water damage with these five steps:

insurance just in case you need to shut down the building and send your tenants elsewhere. Your plan can also include strategies for keeping the building open.

3. Perform

regular maintenance.

When the experts regularly inspect your apartment building, you may be able to avoid several issues completely.

Schedule routine inspections of plumbing infrastructure, especially as part of an insurance renewal application.

The inspector should look for leaks and sewer pipe backup, as well as confirm that sinks and tubs are draining properly and that the water pressure is calibrated correctly.

4. Monitor equipment. A huge number 1. Perform a cost-benefit analysis.

Make sure you know what kind of plumbing you have in your building and determine if it needs to be corrected or updated. This may involve completely replacing the system, or it may simply require replacing fittings or certain pipes.

Learn about the different plumbing systems to ensure you are making the right choice for your apartment building.

2. Create a water damage mitigation plan. Planning ahead helps in very situation and knowing what to do after a flood is no different. Find a water remediation expert you trust and keep their contact information handy. The larger the damaged area, the more expensive the repair. Make sure you call that expert the moment you notice a problem to minimize the cost. Templates are available to create a simple Domestic Water Emergency Response Plan (DWERP).

Pro tip: Secure business interruption

of claims come from damaged equipment, but again, inspecting the equipment regularly can keep problems at bay. Be sure to schedule routine maintenance and monitor of all your equipment, regardless of its age or status.

5. Increase the deductible. For some apartment building owners, choosing a policy with a higher deductible is the right way to go. This strategy leaves the owner responsible for a larger amount of claim costs, but it also means a lower premium. This works primarily with well-maintained buildings, so consider your circumstances carefully before taking this step.

You wouldn’t wait for a fire to burn down your building before learning about fire safety; don’t wait for a flood before learning about water damage mitigation.

Every plan you make now will help you manage your risk and keep costs manageable.

Chris Della Mora is a senior risk consultant, located at the HUB Toronto office where he supports regional and international activities. He currently runs the Manufacturing specialty group within HUB’s Risk Services Division, and has a focus on helping clients reduce their property loss exposures. | www.REMInetwork.com | October 2021 | 23

NEWSWORTHY >>

Industry Hot Topics Justin Trudeau promises “real and important change” including conversions of underused commercial space into affordable rentals; • investment into Indigenous housing and senior facilities; • renovation tax credits to add affordable residential rental space to existing units; • introducing a Home Buyer’s Bill of Rights that will regulate “house-flipping” and impose surtaxes to discourage “renovictions”, among other key measures.

O

n September 20, 2021, Liberal Leader Justin Trudeau was elected for a third term in an outcome that closely resembled that of the 2019 federal election. With a vow to deliver “real and important change” to Canadians, major themes on this year’s campaign trail included pandemic measures, Indigenous issues, climate change, and to a large degree, housing affordability.

Throughout recent weeks, the hotbutton topic of housing has received plenty of airtime as major party leaders actively promoted the measures they would implement to address concerns, like chronic rental undersupply.

The Liberals’ platform includes: • a 2-year ban on foreign home buying; • the construction and repair of 1.4 million home units over the next four years,

According to a recent report from JLL, these proposed measures are nothing new: “They reaffirm Budget 2021’s $1.3 billion funding allocations to increase the stock of affordable units through the National Housing Co-Investment Fund and the Rental Construction Financing Initiative.”

It is also likely that several key federal support programs, including the Canada Emergency Wage Subsidy (CEWS) and the Canada Emergency Rent Subsidy (CERS) may be extended beyond the October 23 expiry date to facilitate broader recovery gains.

Popularity of small rental units back on the rise

A

verage rents for all property types in the GTA increased nearly a full per cent in August over July, with small rental units climbing in popularity after more than a year of pandemicrelated declines. This is the fifth straight month average rents have increased, according to the latest Bullpen Research & Consulting and TorontoRentals.com rent report.

Even with the recent uptrend, the average rent is still down 4 per cent annually from $2,184 per month in August 2020, and 14 per cent from August 2019’s average rent of $2,450 per month. Despite worries about the fourth wave of COVID-19, the return to normalcy continues with colleges and universities opening up, as well as primary schools, malls, stores, gyms, and downtown office buildings.

The majority of GTA cities and neighbourhoods experienced monthly increases in average rent in August, including 24 | Canadian Apartment | Part of the REMI Network |

Whitby, 6.6 per cent; Scarborough, 3.9 per cent; Richmond Hill, 2.6 per cent; Milton, 2.3 per cent and Mississauga, 2.1 per cent. Other cities and areas with slight month-over-month increases were: North York, up 1.3 per cent; York, East York and Brampton, all up 1 per cent; Vaughan up 0.8 per cent and Toronto, up 0.7 per cent.

“After several months of large rental units leading the recovery out of the pandemic-induced rental slump, smaller units were popular in August, with average rents for one bedroom units increasing by a whopping 5 per cent monthly in the GTA,” said Ben Myers, president of Bullpen Research & Consulting. “The market bottom is now clearly in the past, with many of Toronto’s most desirable neighbourhoods seeing average rents increase by $200 to $350 per month over the last six months.”

NEWSWORTHY >>

Kingston celebrates first large-scale geothermal residential building

A

23 of 27 condo apartment projects with high activity on TorontoRentals.com in the GTA saw an overall average increase of 11 per cent in monthly rents in July and August over January and February of this year. The project with the highest increase was Axis Condos ($1,788 per month to $2,510 per month). This 38-storey building was completed in 2019 at 411 Church Street.

The average rent for single-family homes in the GTA has increased throughout 2021 in most markets.

Rents for condos have not risen as quickly as those of single-family homes. Toronto, Etobicoke, North York, and Mississauga are all trending upward in terms of average rents, while York and Scarborough are trending flat.

The average rent for purpose-built rental apartments, after declining for most of 2020, have also shown increases throughout 2021. Average rent for units in the former city of Toronto was $2,094 per month in August, up 8 per cent from the March 2021 low of $1,938 per month. The postal codes with a high average rent per square foot were clustered in the downtown Toronto area.

The average rent for studio, one-bedroom, and two-bedroom units all experienced month-overmonth increases in average rent in August. Small rental units such as studios increased 1.4 per cent monthly to $1,525 on average while one-bedroom units increased by 5.1 per cent monthly to $1,864.

Meanwhile, two-bedroom units increased 1.3 per cent to $2,308 per month.

cornerstone-laying ceremony was held in late September for Kingston’s first large-scale geothermal residential building, the Geo. The result of a partnership between Podium Development Corp., Secure Capital Partners Inc., Blue Vista Capital Management LLC, and OPTrust, the Geo will add 344 units of much-needed rental supply to the city, while also being Kingston’s first Fitwel-certified building.

“As a City, we’re committed to demonstrating leadership on climate action, but we need everyone in the community involved to make an impact,” said Kingston Mayor, Bryan Paterson. “The Geo is a big step forward towards a low-carbon future for Kingston and I’m excited to see this project be completed. Podium is leading the way with this development and has set the bar for new, environmentally conscious construction in Kingston.”

To improve energy efficiency and reduce reliance on fossil fuels, the Geo will use geothermal energy to lower its greenhouse gas emissions by over 70 per cent—which will also in turn lower utility costs for future residents.

“Our team is focused on leading positive change for lower carbon buildings,” said Podium Developments’ Managing Director, Bernard Luttmer. “This is Kingston’s first large-scale geothermal residential building, but it will not be the last. Our portfolio of new multifamily projects planned in Kingston and throughout Ontario are all being designed with innovative technologies to help us reach a net-zero carbon future. We were able to celebrate this ongoing work at the Geo this week.”

At the Geo, twenty per cent of car parking will be provisioned with EV charging capabilities. Building amenities will include private outdoor terraces, a rooftop terrace, a two-storey gym with a squash court, and 344 dedicated bicycle parking spaces.

“From the earliest stages of planning, we wanted the Geo to be the first Fitwel certified building in Kingston,” said Luttmer. “Resident well-being has always been a high priority for us, but this pandemic has truly magnified the importance of health and wellness in our buildings,” A redeveloped Brownfield infill site, the Geo is centrally located at 575 Princess Street, just a short walk to both Queen’s University and downtown Kingston. Once complete, it will rise 10-storeys and feature ground-floor retail as well as a corner parkette at Princess St. and Frontenac St. The Cornerstone Ceremony at the Geo was followed by the Official Grand Opening of Unity Point, the Project Partnership’s first purpose-built rental community in Kingston, which is currently fully leased and occupied.

| www.REMInetwork.com | October 2021 | 25

NEWSWORTHY >>

CAPREIT acquires apartment portfolio in Kelowna Building Science & Restoration Consultants Building Envelope Assessment and Remediation Garage and Balcony Evaluation and Restoration Property Condition Assessments/ Due-Diligence Capital Planning Building Renewal Roof Consulting Structural Engineering

I

Philip Sarvinis | Bill Gladu | Jeremy Horst | Michael Pond | Duncan Rowe | Jack Albert | Beau Gaudreau | James Cooper

Trusted Advisors

rjc.ca

Balcony Modernization Parking Structure Rehabilitation Roof Assessment & Replacement Window Upgrades Site Improvements Interior Upgrades New Amenities

.

Asset Transformation Consulting Engineers Project Managers Materials Testing & Inspection

DAVROC & A S S O C I A TE S L TD .

2051 Williams Parkway, Units 20 & 21 Brampton, Ontario L6S 5T4 t (905) 792-7792 26 | Canadian Apartment | Part of the REMI Network |

DAVROC. CO M

© DAVROC & ASSOCIATES LTD.

Building Envelope Repairs

n early September, CAPREIT announced it had completed the purchase of a Kelowna, B.C., apartment portfolio consisting of four new low-rise buildings. With 193 suites alltolled, it was acquired for $63.3 million, funded from CAPREIT’s Acquisition and Operating Facility. Occupancy was 97.9 per cent at the time of closing.

Made up of three six-storey buildings and one three-storey building, the portfolio is located close to the Okanagan Highway, parks, schools, restaurants and the Westbank Shopping Centre. Each suite is described as being spacious, with air conditioning, laundry facilities, stainless steel appliances, quartz countertops and premium quality finishes throughout. Amenities include a business centre, fitness centre, community lounges and games rooms, rooftop patios, a theatre and extensive landscaping and lawns for residents’ use. In keeping with CAPREIT’s focus on reducing its environmental footprint, the buildings are currently equipped with ten EV charging stations for residents.

“The Okanagan Valley and Kelowna remain a key retirement destination, and this brandnew apartment portfolio of high quality, spacious and luxury suites, continues to be in high demand,” said Mark Kenney, President and CEO. “This acquisition also fits with a key element of our asset allocation strategy to acquire modern, recently constructed properties with low capital investment needs and the features and amenities demanded by today’s discerning market.”

| www.REMInetwork.com | October 2021 | 27

INSURANCE >>

The Insurance Market Blues Those suffering aren’t alone…

by Andy Schwartze Anyone who has been involved in the Canadian insurance market over the past few years is well aware of the rising prices. Since the famous flood July 2013, numerous weather events have fed into this “seller’s market” and the pandemic has only exasperated it further. Here’s a breakdown of why the market has become so challenging for buyers: 1. Weather events in North America have multiplied in number.

Western fires, eastern floods, tornados, and hurricanes have all risen in frequency. As an example, by the end of June, the U.S. Weather Service had already logged close to 1,000 tornados. Fire events out west need not be recounted, as the dry areas are becoming dryer and the wet areas more water sodden. This was predicted 20 years ago and seems to be a new reality.

2. COVID-19 is on its way to becoming the next generation’s asbestos. By the end of June 2021, over 500 class action suits had already commenced south of the border. These actions comprise attempts to force business interruption policies to pay COVID losses. Additionally, there have been actions stemming from allegations of inappropriate care taken by companies and staff to adequately shield customers and 28 | Canadian Apartment | Part of the REMI Network |

employees from the pandemic. In France, an early case found in favour of a restaurant that sued its insurer (Axa) for business losses. In the UK, regulators studied 19 versions of business interruption insurance policy wordings and concluded that a number of them should be held to pay COVID revenue losses.

3. Insurer “capacity” worldwide was significantly impacted when in January Lloyds of London, the largest p&c insurance provider in the world, announced the intention to withdraw significant “capacity” from the market. This meant that the availability of insurance coverage was being significantly lowered—and we all know what happens when demand remains and supply dwindles. Much higher reinsurance costs have been pushed down to the retail level, thereby raising rates sharply. Reinsurers are in business worldwide and that impact on Canadian insurance buyers is unavoidable.

INSURANCE >> Meanwhile, significant service infrastructure was built in major Canadian cities from 1920 onward. A good example of this is underground water and sewer systems, of which a good portion remain old and out of date. Increasing levels of rain and flooding have become (as some insurance managers suggest) the “new fire.” Water damage claims have risen extensively, and when coupled with weather events, are now the prime concern in underwriting and claims. Mould remediation has become a huge part of water claims; it never used to be an issue.

In addition, many multi-residential buildings are now between 50 and 70 years old and need significant attention.

Repairing problems as they arise is not the equivalent of modernizing to new standards in the eyes of the insurance provider. We are often asked what a 70-year-old private home would be like if it had never received an electrical or plumbing upgrade—hence, over the past couple of years the p&c insurance market has taken a hard look at multi-res buildings and certain attitudes have changed.

The leader in this is Intact Insurance, the largest p&c carrier in Canada with a market share of at least 20 per cent. Intact is a public company and its management team concentrates, not unexpectedly, on shareholder value. It has, therefore, become more like a bank where underwriting standards are strict and enforced. Most underwriters are desk bound, with templated software, and they follow the mandates as underwriting “audits” are routine.

With Intact setting the pace, the few other insurers that will even consider insuring a multi-residential property have set their own limitations. Thus, for now, the fluid and competitive insurance marketplace for this type of risk is pretty much non-existent. Alternatives can be counted on the fingers of one hand.

Before issuing a renewal pricing proposal, Intact’s position is that: 1. Every in suite 60amp pony panel in the building must be replaced within a reasonable time frame, as soon as it can be contracted, with a 100amp breaker panel. They are unwaveringly adamant about this, even though in my long career I have never had a pony panel fire claim.

2. Any roof over 20 years old must be replaced. Patched repairs do not qualify, although a professional opinion may be presented. The problem, of course, is finding a roofer who will certify an older roof, knowing full well that if something happens, he/she may be on the end of a legal claims recovery action by Intact.

VISIT US AT

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

MOBILE FRIENDLY

And there are more requirements depending on the individual file. But the message is simple: It’s a difficult market—one that typically overreacts when it perceives trouble on the horizon. Accounts with claims problems are having great difficulty getting coverage that even resembles what they may have had in the past.

For questions regarding multi-residential housing insurance, please visit: www.takecover.ca | www.REMInetwork.com | October 2021 | 29

Smart Ideas

HEALTHY AIR PROPTECH Air purifiers are soaring in popularity

Since the start of COVID-19, property owners and consumers have been pouring money into air quality products that offer real-time particle recognition and remediation systems, including sensors and machine learning to detect, predict and remove germs and pollutants. In fact, healthy air proptech firms can’t keep up with the demand from buyers in Canada, the U.S. and the U.K. where the appeal for WiFi-enabled air monitoring and purification products is soaring.

While some products are small and sleek, and can be placed on desks and tables, larger units the size of dehumidifiers are available to handle rooms. Decentralized HVAC units (that look like air conditioners) and sensor clusters can be mounted on walls or integrated into a building’s existing HVAC system. These products can transmit their air quality data to the manufacturers, which in turn offer subscription monitoring services.

One such manufacturer is WYND, a California-based company recently named to Time Magazine’s annual 30 | Canadian Apartment | Part of the REMI Network |

best inventions list. Wynd’s technology detects, predicts and remediates air quality issues with proprietary sensors, software and analytics. Its technology can be integrated with major HVAC systems and other products offering air purification solutions.

Another new start-up is OXYGEN8, based in Vancouver.

Since its recent inception, the company has installed more than two dozen of its flagship Nova ventilation systems in buildings across the United States and Canada. Oxygen8 is on the cusp of releasing six new models to accommodate building owners in seek of solutions to facilitate healthier air. Supported by studies showing that ventilation, along with well-oxygenated air, can improve cognitive function, Oxygen8 is the first investment for Greensoil PropTech Ventures Fund II, a recently launched $100 million venture capital fund investing entirely in early to mid-stage PropTech firms.

Find out more at: www.gspv.vc

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

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. .