Canadian Apartment Magazine - September 2011

CC AA NN AA DD AA ’’ SS OO NN LY LY NN AA TT II OO NN AA LL PP UU BB LL II CC AA TT II OO NN FF OO RR AA PP AA RR TT M M EE NN TT OO W W NN EE RR SS AA NN DD M M AA NN AA GG EE RR SS

VOLUME 8 / NUMBER 5 / S eptember 2011

www.ca nadia n apar tmentmagazine.ca

PM#40063056

First National on Top of its Financing Game

(

ENERGY ADVANTAGE™ Cut your utility bills up to

60% ) *

CONSIDER THIS NEW PRODUCT STACKED. AND VERY MUCH

IN YOUR FAVOR.

*Maytag Commercial front-load washer compared to commercial top-load washer. Individual savings may vary. ® Registered Trademark/ TM Trademark of Maytag Corporation or its related companies. © 2011. All rights reserved.

Introducing the stacked washer/dryer from none other than Maytag® Commercial Laundry.

It’s a unit that delivers smart space savings, Built-to-Last™ toughness and just as you’d expect, a whole lot more. DEPEND ON IT.

+ High-efficiency ENERGY STAR® and CEE Tier III qualified + Time-saving Quick Cycle + Heavy-duty die-cast door hinge + Single control panel and payment system + Convenient, front-serviceable design

visit mclaundry.com for digital brochures or for more information visit our website at maytagcommerciallaundry.com 800-662-3587

TAKE A fresh LOOK AT WHAT’S POSSIBLE

T:10.875”

B:11.125”

S:9.625”

Flexibility

Lower Interest Rates

Reduced Renewal Risk

Obtain mortgage financing on up to 85% of the multi-unit property’s value when you are buying, building or refinancing.

Benefit from interest rate savings available throughout the entire life of CMHC-insured loans, including construction periods and renewals.

Enjoy mortgage renewal with no need to re-qualify. CMHC insures the entire amortization period of the loan and coverage is transferable between CMHC-approved lenders.

Learn how CMHC mortgage loan insurance gives you more choices for your multi-unit property investment. Call 1-877 Multi GO or visit www.cmhc.ca/multi-unit.

Starlight is a new Canadian multi-family focused asset management company.

With a portfolio of 5500 prime residential rental units, an additional 300,000 sq. feet in commercial properties, and an aggressive plan for future quality acquisitions, Starlight is well positioned to become a premier provider of quality living to apartment renters across Canada.

We believe that an exceptional quality of life for tenants and maximum value for building owners are not mutually exclusive goals. With these goals in mind we will work to leverage customer-facing technologies, the best 3rd-party property management companies in each local market and with our industry experience, bring this knowledge and insight to the Canadian rental market. Through increased competition and innovation, we hope to give tenants a better living environment, stellar customer service and more choice.

For more information visit us at www.rentstarlight.com.

“Yardi Voyager enables us to process applications at the property level – saving time and labor by eliminating paper transfer across our offices.”

David Melo Vice President, Finance

Timbercreek Asset Management Inc.

With over $1 billion in assets across Canada, Timbercreek Asset Management Inc. relies on Yardi Voyager™ software to automate property management for greater operational efficiency.

From leasing workflows and financial reporting to optimizing collections and cash flow, Voyager gives Timbercreek tools to retain tenants and support growth — while reducing costs.

For more information, call 1-888-569-2734 or visit www.yardi.com

contents Cover Story 17

columns

First National on top of Their Financing Game

26 Association CMHC Financing will ease student housing problem

Experience and personal attention set this company apart from other lenders

30 Marketing The best websites make the most of your investment

By Michael Manzoni Cover image by capture it photography Background image by (ŠiStockphoto.com/ Photo by Willsie)

By John Dickie

By Carissa Drohan-Jennings

34 Insurance Are insurance costs flat or rising?

By Andy Schwartze

38 Portfolio strategy Apartment living now in vogue

By Derek Lobo

42 Finance Grow with CMHC Mortgage Loan Insurance for MultiUnit Residential Properties

By Paula Gasparro

Departments 8

Editor’s note

By Kim Carlton

12 People on the Move 14 New Products 46 Smart Ideas

Columnists John Dickie, Carissa Drohan-Jennings, Paula Gasparro, Derek Lobo, Andy Schwartze

RISING Operating Expenses

?

Colliers Property Management can help.

Our building operations and cost management expertise can help keep your operating expenses grounded. Speak to a Colliers property management expert today and enjoy worry-free management of your residential asset or portfolio. www.colliers.com

Accelerating success.

Editor’sNote

Fall is time for growth The nights are getting a bit cooler, and the kids are going back to school. It’s now fall and that is a great time for people of all ages to get a handle on their business, start new endeavours or get organized.

If you’re a property owner you might be thinking of expanding your business. Renting is increasingly attractive to people, and vacancy rates are quite low (see Derek Lobo’s article on page 38), so finding a quality property in a good location will help to ensure profits down the road.

Finding the right financing for a multi-residential purchase has never been easier with the low interest rates that are out there, as well as CMHC financing that can help in various ways (see page 42). Also, read the feature on First National on page 17, a mortgage company that likes to guide its clients through the process of purchasing investment real estate.

This issue is the first to include some of the new sections that we’ve been working on. We’ve added some new sections (People on the Move – which features industry appointments, Newsline – which keeps you up to date on the goings on in our industry, and New Products – which has the latest and greatest in products and services that can help you in your business). Also, you may have noticed the look of the magazine has been refreshed. We hope that you enjoy the changes.

We’re also looking for your stories about nightmare renters for our upcoming Tenant from Hell Blog. Check out our website www.canadianapartmentmagazine.com for the upcoming launch of this section!

As always, let us know what you think of the issue. Email me at cam@mediaedge.ca with your thoughts, as well as industry news, new products and appointments.

Publisher

I an Lederer ianl@mediaedge.ca (416) 512-8186 ext. 262

Editor

Kim Carlton

Senior Designer

Annette Carlucci

Junior Designer

Jennifer Carter

Production Manager Rachel Selbie Contributing Writers C arissa Drohan-Jennings, Andy Schwartze, John Dickie, Derek Lobo, Paula Gasparro, Michael Manzoni Circulation

Lina Trunina

For sales information call (416) 512-8186 ext. 262 Canadian Apartment Magazine is published six times a year by:

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

Tel: (416) 512-8186 Fax: (416) 512-8344 President Kevin Brown Copyright 2011 Canada Post Canadian Publications

- Kim Carlton, Editor

Mail Sales Product Agreement No. 40063056 ISSN 1712-140X

Correction: In our June 2011 Buyer’s Guide, CAPREIT’s VP Procurement and Energy Management Perry Rose was cut out of a photo due to a printing error. Here is Mr. Rose’s photo.

Canadian Apartment Magazine sincerely apologizes to Mr. Rose and CAPREIT for the error.

Quoteworthy Social and economic changes are making affluent individuals and couples choose high rise rental living in urban centres over single family suburban homes. These trends have already reduced vacancy rates, spurred new developments and raised rents, and the changes look set to continue for the foreseeable future.

– page 38 8 www.canadianapartmentmagazine.ca

Circulation ext. 232 Subscription Rates: Canada: 1 year, $46* 2 years, $82* US $71 International $96 Single Copy Sales: Canada: $10* * Plus applicable taxes Reprints: Requests for permission to reprint any portion of this magazine should be sent to Ian Lederer 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.

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

A E S S B F P A E S S B F P A E S

Congratulations to Vertica Residence Services and Thank You for Your Business.

The Right Product. The Right Price.

The Right People. The Right Choice.

Over 14,000 Products – In Stock, Everyday!

Eco-Friendly | Cleaning | Fire Safety | WHMIS | Paint | Building | Bathroom & Kitchen | Appliance | Wall & Floor Plumbing | Light Fixtures | Light Bulbs | Electrical | HVAC | Hardware | Seasonal | and More

APPLIANCEBATHROOMBUILDINGCLEANINGECO-FRIEN Choosing H&S as your maintenance material ELECTRICALFIRESAFETYFLOORHARDWAREHVACKITC supplier means you are putting your confidence SINKSLIGHTBULBSLIGHTFIXTURESPAINTPLUMBINGSE in a supplier willing to go the extra mile to SUPERSPECIALSWALLWHMISANDMOREAPPLIANCEBA provide you with the best one-on-one service.

A knowledgeable sales staff and over 35 years BUILDINGCLEANINGECO-FRIENDLYELECTRICALFIRESA of industry experience – no one else offers that FLOORHARDWAREHVACKITCHENSINKSLIGHTBULBSLI combination and it’s why people all across PAINTPLUMBINGSEASONALSUPERSPECIALSWALLWH Ontario choose H&S Building Supplies Ltd. as The one source for it all. their One Stop Maintenance Supply Superstore!

ANDMOREAPPLIANCEBATHROOMBUILDINGCLEANING ELECTRICALFIRESAFETYFLOORHARDWAREHVACKITC SINKSLIGHTBULBSLIGHTFIXTURESPAINTPLUMBINGSE SUPERSPECIALSWALLWHMISANDMOREAPPLIANCEBA BUILDINGCLEANINGECO-FRIENDLYELECTRICALFIRESA www.hsbuild.com 1 800-207-8325 or 905 738-6003 FLOORHARDWAREHVACKITCHENSINKSLIGHTBULBSLI PAINTPLUMBINGSEASONALSUPERSPECIALSWALLWH COMMERCIAL | MULTI-UNIT | RESIDENTIAL | INDUSTRIAL | INSTITUTIONAL ANDMOREAPPLIANCEBATHROOMBUILDINGCLEANING PROUD MEMBER OF: ELECTRICALFIRESAFETYFLOORHARDWAREHVACKITC SINKSLIGHTBULBSLIGHTFIXTURESPAINTPLUMBINGSE

Newsline

Ontario rent increase announced The Federation of Rental Housing Providers of Ontario (FRPO) announced on June 29 that the rent control guideline for 2012 will be 3.1 per cent, up from the 2011 guideline of 0.7 per cent. The 2012 guideline is calculated using consumer price index. data from June 2010 to May 2011.

The interest rate on last month’s rent deposits also changes in accordance with the Residential Tenancies Act which requires interest to be paid to the tenant annually at a rate equal to the guideline. The interest rate on last month’s rent (LMR) deposits for 2012 is 3.1 per cent.

Hoarding cause of fire The Ontario Fire Marshall has completed its investigation into a fire at 200 Wellesley Street, a 30 storey, 711-unit residential apartment building in Toronto.

The Fire Marshall (OFM) found that the cause was a discarded cigarette that landed on combustible materials on the balcony of an apartment unit.

As a result of the investigation, the OFM is urging landlords and property owners to inform local fire departments of instances of hoarding where they believe it poses a fire safety risk.

Call for proposals for summit action find The Summit Action Fund is designed to increase housing supply across the province, and is funded by the Government of Saskatchewan through SHC. Since April 2011, a total of $6 million has been made available to encourage housing stakeholders to propose creative housing solutions that are not currently covered by existing housing programs.

The first application deadline is September 1, 2011. The second

News tips

application deadline is January 15, 2012.

For further information on the Summit Action Fund, call Saskatchewan Housing Corporation toll-free at 1-800-667-7567 or email saf@gov.sk.ca. Application forms will also be available on the Ministry of Social Services website.

Please send your company’s news tips, acquisitions and new products to cam@mediaedge.ca.

As well, check out our website, www.canadianapartmentmagazine.ca for timely news, features and V-Reports.

10 www.canadianapartmentmagazine.ca

“KILZ PRO-X

IS MY PAINT FOR LARGE AND SMALL PROJECTS.”

Nathan Bavolek, Owner Nathan James & Company Design & Construction

We asked you what you wanted in a paint.

Durable finish. Fast application. Great feel.

All at a great price.

We heard you. Now after years of testing, it’s available. We call it KILZ PRO-X™ paint.

Available in over 1,100 colours in flat, eggshell and semi-gloss sheens. Give KILZ PRO-X paint a try. We know you’ll be impressed. After all, you told us how to make it.

Exclusively at ™

™

kilzpro-x.com Scan this QR code for more information

People on the Move Phelps j appoints Don Neufeld as their first VP Phelps Smart Laundry announced on June 1 the promotion of Don Neufeld, former Manager Eastern Region, to Vice President Eastern Region. Don is the company’s first Vice President, and in his new role he will continue to manage Eastern operations while working on further expansion opportunities for Phelps’ Eastern markets.

Scott’s REIT appoints Teresa Neto as Chief Financial Officer Scott’s Real Estate Investment Trust (Scott’s

12 www.canadianapartmentmagazine.ca 11035_IMSInsurance_2011_2.indd 1

REIT ) announced on August 8 the appointment of Teresa Neto as Chief Financial Officer, effective September 7. Ms. Neto most recently held the role of Chief Financial Officer of Retrocom Mid-Market REIT - a TSX-listed REIT with market capitalization of approximately $250 million.

Ms. Neto will succeed Evelyn Sutherland, the current CFO of Scott’s REIT. CAPREIT announces two senior management positions The Canadian Apartment Properties Real j Estate Investment Trust (CAPREIT) recently announced the

appointment of two new senior management positions. Mr. Scott Cryer has been appointed the new Chief Financial Officer of the Canadian REIT and Ms. Maria Amaral, CMA has been named as the new Chief Accounting Officer.

Mr. Cryer has been a member of the CAPREIT team as the Vice President of Financial Reporting since September 2009.

Graduating from the University of Western Ontario with a Bachelor of Economics degree, Mr. Cryer has had an 11 year career in the Real Estate Assurance and Advisory practice of Deloitte & Touche LLP, before joining CAPREIT.

j

As the new Chief Accounting Officer, Ms. Maria Amaral is responsible for all aspects of property accounting and reporting. She has been with CAPREIT since 1997 and previously held the position of Senior Vice President of Finance.

Ms. Amaral is a Certified Management Accountant and has worked for Guaranty Properties Limited where she was responsible for property management accounting.

11-05-05 2:31 PM

CFAA 2011 CANADIAN RENTAL HOUSING CONFERENCE Organized by CFAA with the support of FRPO, GTAA and MDSA at the WESTIN PRINCE TORONTO, JUNE 15-17

THANK OUR CONFERENCE SPEAKERS & PARTNERS! Peter Altobelli, Yardi Systems Steve Ballantyne, Neighbourhood Buzz Paul Belanger, Belanger Engineering Doug Bibby, NMHC Ugo Bizzarri, Timbercreek Asset Mgmt Al Bolduc, Minto Vince Brescia, FRPO Richard Brown, My Ideal Home Doug Brunsdon, Minto Avrom Charach, Kay Four Properties Mike Chopowick, FRPO Adrian Chung, JD Power Kevin Day, Halsall Engineering John Dickie, CFAA Bob Doumani, Aird & Berlis LLP Robert Fleet, First National Financial LP Sharon Fleming, City of Toronto

Robert Gibson, District Marg Gordon, BCAOMA Kevin Green, Greenwin Steven Gross, Bentall Kennedy Darren Henry, Gottarent.com David Horwood, Effort Trust Bonnie Hoy, Bonnie Hoy & Associates Al Kemp, ROMS BC Mark Kenney, CAP-REIT Nick Kenyeres, Landlord Web Solutions Mark Kesseler, Greenwin Kristin Ley, Cohen Highley LLP Chanda Lockhart, Avenue Living Daniel Lublin, Whitten & Lublin LLP Trish MacPherson, CAP-REIT Dan McCabe, Magical Pest Control Ivan Murgic, Greenrock Property Mgmt Dale Noseworthy, Killam

Steven Osiel, PAL Benefits Ron Patel, Mann Engineering Arun Pathak, SPAR Properties Steve Peltier, Steve’s Pest Management Ron Penner, Globe General Agencies Jeff Quipp, Search Engine People Tim Reeve-Newson, WSG BJ Santavy, Skyline REIT Hans Schreff, London Hydro Ryan Shaw, Union Gas Ben Somers, Accessibility Directorate of ON Larry Smith, Haney Property Mgmt Benjamin Tal, CIBC Marianne Touchie, University of Toronto Scott Ullrich, Gateway Property Mgmt Martin Zegray, Realstar Bill Zigomanis, Boardwalk REIT

Day 1 Host Partner Platinum Partners

Media Partner

Boat Cruise Partner

Gold Partners

Silver Partners

Visit www.cfaa-fcapi.org for details on the CFAA 2012 Conference in Vancouver!

Additional Partners

New Products

j

Portable air scrubber Atlas Sales and Rentals offers a portable air scrubber with advanced, multi-stage filtration options. The DefendAir HEPA 500 air scrubber is designed to handle indoor air quality needs on restoration jobs involving sewage, mold or fire damage; to control dust in work areas or on construction sites; or even to capture allergens during and after cleaning jobs. It uses a HEPA filter rated at 99.97 per cent efficiency on 0.3 micron particles and larger, plus a pleated paper pre-filter. An optional activated carbon pre-filter may be inserted to remove smoke and noxious odors.

For more information, contact Atlas Sales and Rentals, Inc., by phone at 800-972-6600; email info@atlassales.com; or on the web at www.atlassales.com/airscrubbers.html.

Shutgun shuts off fire sprinklers Fire damage is expensive but so can the water damage caused by an activated sprinkler head. Once activated, it can take time to shut down a sprinkler system during which time (while the fire may be out) the water damage continues unabated. The shutgun is a simple tool that will shut off an individual sprinkler head while leaving all others active. The single hand gun design makes it fast, easy and safe to use, even from a ladder.

Should the fire rekindle, the shutgun includes a fusible link that releases when heated and the gun drops out and the sprinkler reactivates. Designed by a retired Canadian Fire Chief, the shutgun is available from Canadian Safety Equipment.

For more information email info@cdnsafety.com or go to www.cdnsafety.com

j

j

Take paperwork online A new product helps to recover the time, money and energy wasted on signing, filing and accessing your lease paperwork.

Digilease uses modern technology to make the lease signing process quick and simple. Even landlords with limited computer skills can be sending, approving and signing leases in minutes with almost no instruction needed.

Here are the steps involved with getting leases signed with Digilease: • The landlord emails out the lease instructions • Tenant fills out application • Tenant provides payment (optional) • Landlord is asked to approve applicants • Landlord approves or rejects tenants • Tenants sign the lease • Everyone is notified that the lease is complete This can all be done with a few clicks on your phone or computer.

Call 416-712-7883 or email info@digilease.co for more information.

j

Court-proof emails “Make sure you get it in writing” is usually good advice in communication with tenants. Email often used since it’s quick and cheap, however it can be very expensive when push comes to shove and you find your email correspondence is needed in front of a judge. Regular emails usually get thrown out of court as inadmissible evidence.

The reason is that email is not deemed secure or accurate and is easily tampered with. The simple solution for this is to use RPost, which provides registered email and gives users a court admissible receipt and it’s usable with any Outlook or online email account.

Say a landlord is attempting to collect a payment and the tenant agrees, but later reneges. RPost makes email communication “court proof.”

RPost provides several services which would be beneficial to renters or landlords, including: • Registered email – to provide a receipt • SecuRmail – encryption for privacy • eSignOff – to sign documents electronically and provide a timestamp • SideNote – private digital sticky notes for CC and BCC recipients • Certified email • Digital Seal – sign and timestamp several pages in one click • Secured attachment services • Largemail with proof of delivery • Records management For more information, visit www.rpost.com.

j

Water conserving toilets save money for landlords As water rates rise across the country, Canadian multi-residential property owners are feeling the pinch. To combat these increasing expenses many landlords are investing in water conservation measures to reduce monthly water/sewer bills, which also usually results in a reduction to gas or hydro bills.

“The key to smart investment in water-efficiency is staying ahead of the curve to receive optimal return on investment” said Sean Kimmons, president of Water Matrix, a leading water conservation technology company.

Water Matrix secures the rights to and distributes the most efficient technologies available worldwide such as the 3 litre Proficiency toilet. With only half the flush volume of the current standard it can drastically reduce water and sewer bills for property owners who have 6 or higher lpf toilets installed.

Toilets are typically the largest users of water in a residential or multi-residential property. Yet many property owners are still installing 6 litre or 4.8 litre toilets when they could be saving on average 50 per cent or 37 per cent more respectively by installing a 3-litre Proficiency. Since toilets have an average life of 20 years or more, truly efficient toilet models will provide significant savings in the long-term.

By replacing 6 lpf toilets with 3 lpf toilets, landlords can cut their water bills sufficiently to provide an average payback of about two years.

14 www.canadianapartmentmagazine.ca

CHOOSING CHOOSING THE RIGHT THE RIGHT TENANTS TENANTS IS NOW THIS IS NOW THIS EASY. EASY.

j

New Miele downdraft ventilation system Miele Canada, is pleased to announce the debut of a new downdraft ventilation hood.

The Miele telescopic downdraft, Miele’s first-ever downdraft ventilation systems, is made specifically for the North-American home. The 30” and 36” wide models are available in stainless steel finish with optional 500 and 1,000 CFM blower motor. The telescopic downdraft rises 14” over the cooktop surface to consume cooking odours while the easy-to-use controls with LED indicators manage four power levels, including a unique 15 minute delayed shutdown for maximum convenience and energy conservation.

Whether apartment owners prefer a bold, visually striking island ventilation hood or one that’s discreetly integrated into custom cabinetry, Miele has a solution with a broad choice of design.

Additional innovative design features for the series include: • A ventilation timer which once set will automatically switch the unit off either five or 15 minutes after you walk away • High-quality compact halogen lights provide optimum illumination of the entire cooking area and include a dimmer feature which creates background lighting effects to suit your individual requirements • Effortless cleaning as all Miele metal filters feature a quick-release mechanism, so they can be easily removed and cleaned in the dishwasher • When the grease or charcoal filters on the recirculation hoods have reached their maximum congestion, LED lights remind the user that they require cleaning, so they will never become clogged Products from the Miele kitchen ventilation collection are available for purchase at Miele Chartered Agents.

Additional information on specific models is available at www.miele.ca.

Tenant Tenant Select Select rr Fast, Fast, secure secure online online tenant tenant screening, screening, anytime, anywhere. anytime, anywhere.

Before you let new tenants into your building, screen Before you quickly let newand tenants into your building, screen applicants easily with Tenant Selector. applicants quickly and easily with Tenant Selector.

Whether you manage two rental units or two thousand, Whether you manage two rentalonline units or two thousand, Tenant Selector is a new secure tenant screening Tenant Selector is a new tenant screening solution from Equifax andsecure drawsonline on one of Canada's solution from Equifax and draws largest sources of consumer dataon to one of Canada's largest sources of guesswork consumer data to help you take the help you take the guesswork out of tenant selection, out of tenant selection, anytime, anywhere. anytime, anywhere.

To learn more, call Richard Crouse at 1-877-560-3224 To learn more, call Richard at 1-877-560-3224 Reference promo Crouse code "2011 CAM".

Reference promo code "2011 CAM".

www.equifax.ca www.equifax.ca

INFORM INFORM

September 2011 15 11188_Equifax_2011.indd 1

11-08-19 11:50 AM

Cover Story

Cover Story

By Michael Manzoni

First National photography by capture it photography

First National on top of its financing game Monopoly images ŠiStockphoto.com and Fotolia.com

When you meet Peter Cook and Robert Fleet for the first time, you can quickly see that their personalities are on the opposite ends of the spectrum. Cook is the quiet confident leader, Fleet is a friendly and enthusiastic ally to many in Canada’s multiresidential property world.

However, their differences in personality and business style complement each other in many ways. Together they have originated over $4 billion in multi-family and commercial mortgages since joining First National.

September 2011 17

Cover Story

Cook is the Assistant Vice President of Commercial Lending and is the calm, selfassured leader of a six member team of seasoned professionals, which he assembled during his 23 year association with First National. He is humble about his successes, and shares them with others.

“I’m very fortunate to be one of the original employees of First National and grateful to be part of a great Canadian success story.” says Cook, “Our company founders, Moray Tawse and Stephen Smith, have allowed me the freedom to build an incredible team. I’ve surrounded myself with amazing people.

Not only do they each have specialized skills and abilities they also think differently than I do. The last thing I need on our team is another me.”

Fleet is the Manager of Business Development at First National. His preferred style of business is to make true connections with his clients. He describes a true connection as a heart-to-heart, live and in person, face-to-face interaction. Fleet believes that great leaders are highly visible and give back to their industry. You may have seen him speak at the CFAA annual conventions or at any of the 11 apartment associations of which he is a member. He holds a board position on the HDAA and is on the education committee of the LPMA. Going above and beyond the role of a lender If you’re considering the purchase of a property, most lenders will expect you to 18 www.canadianapartmentmagazine.ca

supply an “agreement of purchase and sale” before they provide you with a letter of intent. Fleet believes that this is a classic example of the cart before the horse. He explains, “It’s more sensible to make an offer when you have the confidence of knowing how much funding is available to you.” If you’re even thinking of acquiring a property, First National will provide you the information you need before you even set foot on the property.

Within 24 hours they will furnish you with an income analysis, (their valuation for the property), the maximum available loan amount and a letter of intent detailing the interest rate and terms. Armed with this information, investors can proceed with confidence and negotiate a better deal for themselves. They also extend this service is to real estate agents and mortgage brokers.

Fleet and Cook regularly connect buyers, sellers and real estate agents. In today’s market there is a shortage of apartment building inventory available for purchase.

When clients (or would-be clients) are looking to acquire a property they share their search criteria with the First National team. When a suitable property becomes available Fleet and Cook are happy to make the appropriate introductions. They go a step further in making valuable connections for their clients. As founding members of an alliance group of industry professionals Fleet and Cook also make introductions to people specializing in lease-ups, greening, insurance, landlord website solutions,

Cover Story

“

Peter and I learned long ago, if we can also help clients solve some of the other problems that keep them awake at night, we earn their trust and loyalty.

appraisals, recycling, parking, laundry services and legal to name a few.

Fleet explains, “Peter and I learned long ago, if we can also help clients solve some of the other problems that keep them awake at night, we earn their trust and loyalty.”

Understanding the client’s business plan and personal goals It is an accepted fact that any plan must begin with the end goal in mind. Each investor has long term, short term and personal goals. “We have the experience to ask the right questions in order to customize the best lending solution for our clients,” says Fleet.

Cook adds “We’re great problem solvers because we identify our clients’ concerns and issues. I’ve been providing financing for a long time, so it’s easy to put myself in our client’s shoes to uncover the best solutions to solve their problems.”

Their philosophy Their philosophy is to do more than communicate with their clients. Cook and Fleet connect and foster real relationships as trusted advisors and strategic partners. They believe that too many financial institutions are over-using today’s technology to communicate huge amounts of information to the masses. Too many lenders use a broad brush to market general products to everyone, without really paying attention to what their clients want and need.

-Robert Fleet, Manager of Business Development

Cook explains, “Communicating and connecting are both important however, one cannot replace the other.” While other institutions spread their message a mile wide and an inch deep, Fleet and Cook endeavor to connect by going a mile deep and an inch wide. Said a different way, “If given the choice we’d rather have a deep relationship with a few clients than a database of thousands.” says Fleet. “That doesn’t mean we don’t keep up regular communications with all our clients and prospective clients. We use a variety of methods to educate and stay in touch. Most visible is our regular column in Canadian Apartment Magazine. We also provide a monthly email with industry news and events for anyone who wishes to receive it and for those who are close to acquiring or refinancing, we provide a market commentary with the daily bond rates.”

The buck stops here Cook carefully hand-picked his team, as he knows that he is only as good as the people with whom he

surrounds himself. He speaks about each of them with pride. Says Cook, “It is amazing how much people get done when they don’t worry about who gets the credit. Each member of the team is a specialist in their field and clearly understands the importance of delivering the client’s expected results.”

Most major financial institutions circulate a new mortgage application throughout many departments before it is approved which often results in delays and last minute changes. By contrast, when the Cook team receives a new application, it stays with the team right through to

Cover Story

From left to right: Lucy Aiello, Executive Assistant, Patricia Alvaro, Senior Manager, Commercial Lending, Robert Fleet, Manager of Business Development, Peter Cook, Assistant Vice President, Commercial Lending, Daniel Bragagnolo, Commercial Mortgage Analyst, Wendy Diaz, Commercial Mortgage Analyst, Not pictured: Abby McQuire, Senior Manager, Commercial Mortgages

completion. “Our team goes to great lengths to make sure there is no red tape, no surprises and no stress for our clients.” says Cook, “We have a one-level approval process and it works extremely well.”

Patricia Alvaro is one of the senior managers responsible for commercial lending. Her dedication to First National’s clients is deeply ingrained. She explains, “I appreciate Peter’s mentorship. He instilled in me early in our relationship that I need 20 www.canadianapartmentmagazine.ca

to see the result of my efforts from our clients’ viewpoint. Our clients expect rapid results with total accuracy and that’s what I give them every day.”

Is First National a bank?

No. When most people think of banks they generally envision a local branch with tellers, ATM machines, RRSPs, mutual funds and insurance with mortgages representing only a portion of their product offering. First

National specializes in one thing and one thing only – mortgages.

First National’s focus is singlefamily, commercial and multiresidential mortgage solutions.

First National was founded in 1988 by Stephen Smith who is the Chairman and President and Moray Tawse who is the Vice President of Mortgage Investments. Together, they have proudly grown the company to over 550 employees with five offices across Canada. In 2006 First National completed its

Names you should know:

James Roy Clive Levitt Craig Irvine Manjit Virk David Solomonov www.apartmentadvisors.biz

RE/MAX Commercial Advisors Inc., Brokerage Each office independently owned and operated.

Cover Story

IPO and trades under symbol FN on the TSX. As a Canadian-based originator, underwriter and servicer of prime residential and commercial mortgages they have more than $56 billion dollars in mortgages under administration.

“Call me old fashioned, but I still believe in doing business with our clients face-to-face and that’s what I encourage our people to do,” says Moray, “Following through on this approach has made Peter and Robert extremely successful at what they do.”

This same approach has elevated First National to the largest multi-family lender in the country for CMHC insured mortgages.

A rich history When they were growing up in London, Ontario, Cook and Fleet never imagined that 30 years later they would be working side by side helping apartment building investors with their financing. After meeting each other in grade nine at South Secondary School they became good buddies. They played together on the high school basketball team, travelled to Fort Lauderdale and Acapulco on their March break getaways. In their graduating year both were nominated by the girl’s athletic association as “King of The Turnabout” semi-formal dance.

Cook took the crown with a landslide victory in 1978. That still bothers Fleet today.

They both graduated with a business diploma from Fanshawe College, fondly remembering it as “FUNshawe.” Cook headed off to Chatham

22 www.canadianapartmentmagazine.ca

Canada’s rental vacancy rates low Since Canada’s rental vacancy rate is currently quite low, with an average of 2.5 per cent units available nationwide (as of April 2011), it is a great time to invest in multi-residential properties According to the CMHC’s 2011 Rental Market Survey, vacancy rates in major centres were as follows: Kingston – 1.7 per cent Toronto – 1.6 per cent Quebec – 1.0 per cent Manitoba – 0.7 per cent Winnipeg and Regina – 0.7 per cent All other provinces had rates above 2.0 per cent. The survey reveals that the major centres with the highest vacancy rates were Windsor (9.4 per cent), Kelowna and Abbotsford (6.6 per cent) and Charlottetown (4.9 per cent). On a provincial basis, the highest vacancy rate was in Alberta (4.7 per cent).

Statistics provided by the CMHC.

we listen. we advise. we solve.

At Cassels Brock our legal experts grasp our clients’ commercial real estate and lending needs and provide practical legal advice to find the best solutions.

We understand.

For further information, speak to any member of our Real Estate & Development Group or visit us at www.casselsbrock.com

Contact: David Redmond 416 869 5382 dredmond@casselsbrock.com

Proud legal advisors to First National Financial LP Š 2011 Cassels Brock & Blackwell LLP. All rights reserved.

Cover Story

“

Cook and Fleet’s personalities and style are very different, however they both believe in the same philosophy of going a mile deep and inch wide with client relationships and constantly adding unexpected value.

Are you contemplating the sale of your apartment property?

Consider the following: • Who will represent your best interests?

• Who will give your property maximum exposure?

• Who will deliver the highest value for your property?

With over 20 years experience, tens of thousands of units sold, and hundreds of clients represented, we have consistently delivered superior results. Through our local and national coverage, we create maximum exposure, ensuring maximum value for your property.

Please visit our website at www.cbre.ca/nag-toronto or contact us at 416.815.2332 to learn more about how we can help you.

SOLD 174 Suites - Toronto $107,759 per suite 5.97% cap rate

SOLD 424 Suites - Toronto $122,099 per suite 6.15% cap rate

SOLD 83 Suites - Burlington $105,422 per suite 6.64% cap rate

National Apartment Group

: : David Montressor*, Executive Vice President 416.815.2332 david.montressor@cbre.com * Sales Representative CB Richard Ellis Limited, Real Estate Brokerage

www.cbre.ca/nag-toronto Vancouver

Calgary

Edmonton

Winnipeg

London

Kitchener

Toronto

Ottawa

Montreal

Saint John

Halifax

to pursue a career in financing while Robert chose a career in the restaurant business.

Each succeeded in their chosen careers.

Cook eventually moved to Toronto and started with First National in 1988. Robert became a partner with Prime Restaurants, franchisor of the popular East Side Mario’s restaurant chain, and after twenty two years in the business sold his shares and decided to evaluate new opportunities. They had kept in touch after college and one day while on a salmon fishing trip with some friends, they hatched the plan for Robert to join First National. Cook saw an opportunity for Fleet to use his gregarious personality and business experience to attract new clients and grow the business. Their new business relationship began and has been flourishing ever since.

“I knew Rob would be the perfect person for the job,” says Cook, “he has amazing people skills and has an incredible ability to connect with people. Rob always comes away from every interaction with everyone feeling good about themselves. He calls it the soft skills and he’s great at it.”

Fleet remembers, “I drove Peter crazy at the beginning with so many questions. Once I mastered the mortgage business, the client relationship skills I learned in the restaurant business were easily transitioned to the finance industry.”

Inspired by their family’s influence Cook and Fleet’s personalities and style are very different, however they both believe in the same philosophy of going a mile deep and inch wide with client relationships and constantly adding unexpected value.

This approach has made them extremely successful in financing multiresidential properties in Canada.

It’s not surprising they share similar answers when asked who had inspired their success.

24 www.canadianapartmentmagazine.ca AD Redesign Half Page Island 2011 Feb 11.indd 2 Untitled-4 1

2/15/2011 4:02:45 PM 11-02-22 12:14 PM

We are a full service apartment brokerage and consulting firm. We assist and guide from the decision to build or buy through to selling your building, including all steps along the way. With over $436 million in sales over the last 12 months, we have the proven results and capabilities.

STARTING OUT

OPTIMIZING YOUR INVESTMENT

• Feasibility studies for new • construction • We know experienced • developers and investors • • Help determine what to buy • • Help you through the buying • process

Specialized training for Sales & Leasing agents Establish your building Fill up vacancies Ways to increase cash flow Maximize your marketing dollars

See Us On

Follow Us On

Find Us On

www.youtube.com/user/rockdala

www.twitter.com/rockdala

ca.linkedin.com/in/dereklobo

Darryl McCullough Broker of Record P: 905 - 331 - 5700 ext. 20 dmccullough@rockaptadvisors.ca

www.rockaptadvisors.ca

Derek Lobo Sales Representative P: 905 - 331 - 5700 ext. 13 dlobo@rockaptadvisors.ca

• • • • •

READY TO SELL

Strategic marketing Prequalify buyers Transaction management Full due diligence Tax saving options available

Chris George Sales Representative P: 905 - 331 - 5700 ext. 24 cgeorge@rockaptadvisors.ca

5100 South Service Road, Unit 51 - Burlington ON - L7L 6A5

Liem Vien Broker P: 905 - 331 - 5700 ext. 26 lvien@rockaptadvisors.ca

www.dala-inc.com

Cover Story

“

Specialists in the assessment and amendment of Insurance policy coverages, Insurance policy reviews and Risk Management programs in the Real Estate, Legal, and Insurance Market.

Our Heartiest congratulations go out to First National Financial on being selected for profiling in this prestigious issue of Canadian Apartment Magazine.

– Peter Cook, Assistant VP, Commercial Lending.

Contact Canrisc President Ann London Tel 905.665.5508 | Fax 905.665.0466 Email: info@canrisc.com www.canrisc.com

11188_Conrisc_2011.indd 1

11-09-01 4:27 PM

RESIDENTIAL TENANCIES LAW: LANDLORDS ONLY

JOE HOFFER

KRISTIN LEY

Lawyer

Lawyer

PAUL CAPPA Rent Control Consultant

E-mail Address:

hoffer@cohenhighley.com ley@cohenhighley.com cappa@cohenhighley.com

Tel: 1.519.672.9330

Fax: 1.519.672.5960

26 www.canadianapartmentmagazine.ca Untitled-2 1

Our team goes to great lengths to make sure there is no red tape, no surprises and no stress for our clients.

11-08-12 11:29 AM

“My dad had a 40 year career in automobile sales” says Cook. “He was extremely successful and was often recognized as a top performer in his industry.

He understood the importance of connecting with customers and providing value and he worked extremely hard putting in long hours everyday. However, he also understood the importance of having the same qualities when it came to his family. My dad never worked on weekends, we always had family dinner together and he attended every high school basketball game I ever played in. I’m very fortunate to have been raised by a wonderful father who instilled great values. He is a major reason for my success and a reflection of who I am today.”

From the beginning Fleet’s influence in life was, and continues to be, his mother. She worked with students in the career counseling department at the University of Western Ontario.

“It’s her genuine caring for people that has made a lasting impression on me.” Fleet explains. “I recall when a student from Lesotho Africa arrived at her desk just as the University was closing for Christmas holidays.

Together with his pregnant wife he was expecting accommodations at the University. Somebody dropped the ball — there were no rooms available.” He continues, “Despite all the family gatherings that were planned, without hesitation, she invited them to stay in the family home over the holidays. Both husband and wife went on to earn their PhDs and they continue to be close family friends today.”

Fleet attributes his ability to easily connect with people in a deep and caring way from the many examples set by his mother, Marilyn. Fleet and Cook both know her as a great lady who always sees the positive side of life.

Although Cook and Fleet are quite different in their personalities, they have similar business and life philosophies, which are the key ingredients for a great business partnership. It’s one that has led them to great successes. It’s not surprising they’re on top of their game.

Association

CMHC Financing will ease student housing problem John Dickie is President of the Canadian Federation of Apartment Associations. You can contact him at president@cfaa-fcapi.org. The CFAA (www.cfaafcapi.org) represents the owners and managers of close to one million residential rental suites in Canada, through 17 associations across Canada.

In existence since 1995, CFAA-FCAPI is the sole national organization representing the interests of Canada’s $40 billion private rental housing industry, which provides quality rental homes for more than seven million Canadians.

28 www.canadianapartmentmagazine.ca

Across Canada, enrollments at universities and colleges are increasing each year. In Ontario and other provinces, residence building is often not keeping pace. In some cities, the growth of student rentals in low-rise property near the universities and colleges is creating life-style issues and conflicts with long standing residents. In several Ontario cities, these conflicts have led the city to impose a licensing regime on landlords.

Two possible solutions to the problem are to expand spaces in residence, or to develop private rental housing dedicated to the student market. That latter approach is a growing trend in both Canadian and U.S. markets.

The Canada Mortgage and Housing Corporation (CMHC) has recognized the value of this growing sector. In January 2010, CMHC announced a new program to ensure mortgages for student housing projects of up to 85 per cent of lending value, whether built by private developers or by the educational institutions.

The key terms of the program are the following: • Interest rate: Fixed or floating with a ceiling.

• Amortization: Up to 25 years (or longer with university guarantee).

• Location: On campus or within walking distance.

• Unit size: Some unit size restrictions to ensure that off-campus projects can also suit the nonstudent market.

• Property management: Five years experience in operating similar projects is required.

• Minimum debt coverage ratio: 1.30 for terms of 10 years or more, 1.40 for terms of less than 10 years.

Association

Tips for landlords of student housing Location, location, location When purchasing property for student use, ensure that it is within walking distance to campus and/or public transit.

Know your tenant’s rights Both landlords and students need to know their rights for their province or jurisdiction to avoid problems and conflicts. Visit the CMHC website under “Renting a Home” for information for your area.

should consist of units which contain three bedrooms or less. Projects with a mix of two, three and four bedroom units may also be accepted, but not projects with primarily four bedroom units (or larger units).

CMHC believes that the smaller units produce essentially the same net revenue due to savings in management costs, repairs and maintenance, as well as being more suitable for non-student rental use. That is a problem for the owners of existing projects

Fire safety Check the fire safety codes in your area, and make sure that your building is up to their standards.

where developers built the non-qualifying unit sizes.

If the rental housing industry takes advantage of the CMHC program, or responds to the demand using other financing options, that should accommodate students, and prevent conflict with long-standing residents. Reducing that conflict would be very helpful in reducing the political pressure for licensing and other municipal control measures, which many in our industry would like to avoid or to roll back.

Your Expert Partner™

The best times to list your apartment The school year begins in September and ends in April (for a total of eight months).

If you own a student house or apartment, and it will be vacant in May, list it in January.

Students expect to sign a 12 month lease at this time, and will likely try to sublet their room over the summer months, with the landlord’s permission (which, by law, cannot be unreasonably withheld).

If the house or apartment will not be vacant until September, begin advertising in July, and you may consider asking for an eight month lease. Most landlords have greatest success asking for a 12 month lease running May-April.

Sources: CMHC, The Off-Campus Resource Centre of

MCAP offers the following CMHC and Conventional Multi-Family solutions: • Competitive rates • Interim bridge loans • Terms of 1-5 and 10 years • Dependable closing process

Recent Financings $1,260,000

$3,700,000

$1,475,000

24 Units Refinance

68 Units Purchase

21 Units Refinance

Toronto, Ontario

Toronto, Ontario

Toronto, Ontario

$3,900,000

$3,800,000

$22,300,000

39 Units Refinance

48 Units Refinance

269 Units Acquisition

Brantford, Ontario

Hamilton, Ontario

Ottawa, Ontario

$7,925,000

$9,400,000

$2,250,000

72 Units Refinance

153 Units Refinance

58 units Acquisition

Quebec City, Quebec

Chilliwack, British Columbia

Winnipeg, Manitoba

McMaster University

Loan to Value Ratio

< 65% 65.1% to 70% 70.1% to 75% 75.1% to 80% 80.1% to 85%

Premium as per cent of loan 1.75 2.0 2.25 3.5 4.5

Through this new program, CMHC is helping the rental housing industry respond to the growth in demand for student housing with new development, either by private developers or by educational institutions. Apparently, this was the main goal, and the take-up rate has met CMHC’s expectations.

The program is also open to existing projects where mortgages are being renewed, but the unit-size conditions exclude many existing student housing projects off campus. To qualify, off campus projects

• Excellent service • Customized structures • Forward fix of rates • National lending program

Contact us today to learn more about how MCAP can be your Expert Partner.

Toll Free: George Mejury: Leo St. Germain: Derek Read:

1-800-387-4405 416-368-8837 416-847-3870 416-847-3525

www.mcap.com September 2011 29

Untitled-1 1

11-07-15 3:29 PM

Marketing

The best websites make the most of your investment It is clear that capital improvements to apartment buildings are worthwhile investments. They typically increase both the value of the property and the propertyâ&#x20AC;&#x2122;s appeal for renters.

These investments also make sense operationally; replacing boilers, windows and appliances often lead to tangible cost savings.

One of the major incentives for performing such capital improvements may be their short payback period, with many improvements providing expense savings that recover the original investment in as little as two to three years. However, one less obvious investment that landlords can make that fits this model is developing a new website.

Just as adding a new boiler can save on gas bills, a new website that focuses on lead conversions, improved communications with potential and current tenants and customer retention can enhance operational efficiencies, reduces advertising expenditures and decrease turnover rates â&#x20AC;&#x201C; resulting in a great Return on Investment (ROI).

This article examines some of the ways that a website can improve your marketing message, thereby providing a worthwhile Return on Investment (ROI) to landlords.

Carissa Drohan-Jennings is the Director of Advertising expense reductions Marketing and Communications at Landlord Web Google reports that there are 3.7 billion Solutions (www.landlordwebsolutions.com). If you searches conducted per month in Canada would like to learn more about any of the topics and of that number an estimated 2.2 million mentioned above, please email Carissa at carissa@ searches contain the keyword apartment. landlordwebsolutions.com for more information.

Renters are going online to search for apartments and this search traffic represents a great opportunity for lead generation.

Investing in a website that indexes well within the Search Engine Results Pages (SERPs) can therefore lead to a significant ROI, as leads derived from these searches come at a reduced cost compared to traditional forms of advertising.

In a short time the reduction in advertising expenses recoups the cost of developing a website.

Landlord Web Solutionâ&#x20AC;&#x2122;s client, Drewlo Holdings of London, Ontario, provides a strong example of this point.

Shortly after the launch of their redesigned corporate website, Drewlo reduced their print advertising expenses by a staggering 95 per cent in their Kitchener market. This decrease was the direct result of increased search engine exposure and lead generation, which allowed them to

30 www.canadianapartmentmagazine.ca

Marketing maintain the same number of leads as all their previous advertising methods combined at a greatly reduced cost.

Saving on advertising expenses as the result of improved lead generation demonstrates that well developed websites can produce a substantial ROI for landlords.

Turnover reductions While attracting new residents in a more cost effective way is one way to determine the ROI of a website, the ability to retain current residents is another way that a website can help lower operational expenses.

By adding a resident portal to a website, landlords can keep their lines of communication open with residents, allowing residents to receive an excellent level of customer service.

Since one of the key reasons tenants move out of a building is poor customer service, increasing that level of service is vital to keeping existing tenants satisfied.

A resident portal can facilitate effective communication in several ways. Portals can be used to provide tenants with convenient access to commonly used forms online, such as maintenance requests and elevator bookings; however, the portal can also include social event calendars, news feeds, polling, discussion boards, and community marketplace and referral programs. All of these extra

Marketing

“

Saving on advertising expenses as the result of improved lead generation demonstrates that well developed websites can produce a substantial ROI for landlords.

features benefit the residents and enhance the lifestyle within the building.

If the average turnover costs Canadian landlords an estimated $2,000, avoiding one turnover per month could easily provide a 100 per cent ROI for your website in the first year of operation alone.

Mind, body and soul.

You’ve been thinking about leaving it all behind, for some time now. You worked hard to get to this stage in your life, yet the challenge of keeping pace with the demands of today’s business is getting to the point of overwhelming. There’s nothing wrong with leaving while you’re on top of your game. In reality, it may be the very thing to bring your life back into focus. Whether a new business challenge, a more balanced lifestyle, or simply a leisurely ride along a sunny beach—you decide.

At MetCap Living, we’re always looking to add to our capital assets; so, if you feel you’re ready to exercise some options on your current property portfolio, give us a call—we’d like to talk to you.

After all, change is good... but, change with a solid return on your investment is even better.

Enjoy it. You’ve earned it.

For more information, please contact Anne Meinschenk, Director of New Business Development, MetCap Living 416-993-4305 or anne.meinschenk@metcap.com

Operational efficiencies Websites can also provide cost-saving labour efficiencies by allowing administration processes to become automated. One great example of this is data syndication.

Data syndication is the packaging of website data so that it can be distributed digitally to other sources. For example, details data such as amenities, rental fees, and so on for an apartment building can be sent digitally on an ongoing basis to an online listing website such as Gottarent. com as well as others such as MyIdealHome. com, ensuring that such listing services have the most up-to-date information available about a company’s buildings. If an administrator changes the building data on the company website, it is automatically updated on any site that has the feed. Over time, labour efficiencies as a result of using syndication can reduce the likelihood that additional staff will need to be hired.

Developing an effective website can easily reduce long-term expenses in areas such as marketing and advertising. It can also add value for your current and prospective tenants in the form of improved customer service and it can lead to reduced turnover and increased lead conversions. Together, all of these benefits and savings means that a new or redesigned website can lead to a considerable ROI.

Go online for more marketing articles www.canadianapartmentmagazine.ca

32 www.canadianapartmentmagazine.ca

Cover Story

SAVING energy makes sense —business sense.

You’re always looking for new ways to control your operating costs. Energy use is no exception. Your local electric utility has a range of energy-efficient solutions tailored to businesses. Small businesses may be eligible for incentives to upgrade their lighting. Commercial, agricultural and industrial operations Your local electric utility can tap into funding for lighting, system and equipment upgrades, as well as offers incentives for: for energy audits and shifting energy usage away from peak demand times.

• Energy-efficient lighting Big or small, every Ontario business can benefit.

Find out more by contacting your local electric utility or visit saveonenergy.ca/business Subject to additional terms and conditions found at saveonenergy.ca. Subject to change without notice.

A mark of the Province of Ontario protected under Canadian trade-mark law. Used under licence.

OM Official Marks of the Ontario Power Authority.

• Shifting energy use • Equipment upgrades • Energy audits

Insurance

Are insurance costs flat or rising?

Andy Schwartze, BSc., MBA, CIP, is an insurance broker specializing in property management and real estate. He is a former President of the Insurance Institute, has taught in the community college system and provides continuing education to other brokers. He can be reached at andy@ takecover.ca. For any comments, you can go to www.takecover.ca and post them on their new blog.

34 www.canadianapartmentmagazine.ca

One of the fascinating aspects of being a “middle” person, whose professional responsibilities are wedged somewhere between the cost crazed customer and the greedy underwriter, is that you see a vast amount of information from a very different perspective. The cost of transferring the risks associated with sudden and unexpected physical building damage, and the related rental income loss, is pretty cheap for the apartment building owner. Add to that the covering off of any liability claims, not to mention related defence costs, and the result is that the building owner has off loaded a huge burden of surprising and unpredictable financial losses. Take the cost of doing this, as a percentage of gross building revenue taken in, and one cannot help but think of the old term “chump change.”

Try operating a trucking fleet and learn what insurance costing can really look like…not a pretty picture.

While I would not want the apartment building owning reader to assume that this is some sort of guarantee, the annual insurance costs on a typical highrise, when purchased with low deductibles, are often comfortably below one per cent of annual revenues. Take a look at the last 20 years of apartment building premiums and you will be hard pressed to have seen much of a change in this relationship. Other costs, such as utilities, can certainly not be able to make the same claim in terms of their impact on building operations and bottom lines.

Insurance costs do tend to creep up, in linear fashion, as insured values rise to remain realistic. But as a percentage of operating costs, little has changed in the past 30 years.

Insurance

Yet there is a developing concern that catastrophes will ultimately become a more significant driver of insurance costing.

Reinsurers are the big players in this and, being two steps removed from the retail insurance buyer, are very much operated like cautious banks. There are signs that these giant insurance companies are realizing the significance of building a war chest for an increasing number of Mother Nature’s surprise attacks.

In an interesting wake-up call, in April, I was standing at a look out area on the way up to Cypress Mountain, overlooking Vancouver from the northwest. It was a breathtaking view of Vancouver Island, English Bay filled with anchored overseas freighters, and downtown in a sun drenched morning haze.

The mood was shattered when a young bearded tour guide leader pointed to the west and informed his attentive tourists that “if we have an earthquake, the epicentre will be approximately 50 kms over in that direction”. Then he topped it off by asking how many of them had an “earthquake kit” at home. Beneath the beauty lurks the monster.

In the past short term, reinsurers have been hammered with losses. Most of us, in Canada, can easily remember the earthquakes in Japan and New Zealand. At home, the Slave Lake wildfires in May are expected to cost about $700 million. Forest fires (southeast Australia and southwest U.S.) , tornados, hurricanes and flooding are just part of what may well be an estimated $48 to $67 billion hit on world insurance markets (ref: Canadian Underwriter, June 2011). The 2011 hurricane season hasn’t even started yet and already the drain on reinsurer capital has been the highest ever so far this year. Isn’t there an ice island, the size of Bermuda, on its way to our East Coast...? Natural forces are working harder than they once did.

Untitled-3 1

11-05-03 11:52 AM

Insurance Now, if this all sounds just a bit scary, let’s put some local perspective on it. Foreign reinsurance companies, doing business in Canada, have to capitalize their Canadian entities. These capital requirements are significant. Unlike in the U.S., a foreign insurer’s head office cannot call Toronto and demand money because of something that has happened in another part of the world.

Ottawa must approve the removal of capital first. That being said, a Canadian reinsurer’s subsidiary can wind up its business and deploy its capital elsewhere. It can also participate in out of country insurance deals as there are many ways in which insurance capital is utilized worldwide. Reinsurers in Canada are in relatively safe territory but most are certainly not bullet proof.

Once a year, commencing in the fall and finally concluding by a deadline date of December 31, the jostling for position between our insurance companies and their reinsurer backers take place. Part of every premium that we pay is a reinsurance component. There was a time when an apartment building owner might buy a number of similar policies on

CMHC & Conventional Mortgages for: Multi-Family Rental Properties Senior’s Housing Projects Commercial Properties Construction Projects Vancouver Brian D. Kennedy or Jonathan Wong Phone: 604-685-1068 Fax: 604-683-2787 Email: vancouver@peoplestrust.com Calgary Dennis Aitken or Daniel Stewart Phone: 403-237-8975 Fax: 403-266-5002 Email: calgary@peoplestrust.com Toronto Michael Lombard or Ady Steen Phone: 416-368-3266 Fax: 416-368-3328 Email: toronto@peoplestrust.com ™

www.peoplestrust.com 36 www.canadianapartmentmagazine.ca

the same building. Each having been issued by a different insurer, the wordings would be similar and the premiums different. The amounts of insurance would be combined to arrive at the total coverage needed. I once had a client with 10 separate property insurance policies. Today, your insurer issues one policy and the “capacity” of the international reinsurance community allows for high coverage limits to be purchased on the one contract. But there’s a price to be paid for that backing and it trickles down in to the premium we pay.

This annual negotiating process has resulted in the ability of seasoned insurance vets to be able to predict in which direction rates are going. In the fall the rumours start; by late February the impact of the current year’s reinsurance pricing begins to make itself felt. It’s dance that takes place every year......but with natural catastrophes clearly on the rise, it’s expected that the cost of twirling your partner across this floor may soon go up. By how much is always tough to predict in an industry with unpredictable future expenses to look forward to.

C A N A D A’ S L A R G E S T A N N U A L P R O P E R T Y M A N A G E M E N T S H O W 23RD ANNUAL

November 30 – December 2, 2011

METRO TORONTO CONVENTION CENTRE, SOUTH BUILDING

1,050 EXHIBITS • MORE THAN 23,000 ATTENDEES IN 2010

Showcasing products, services and technologies for building maintenance, retrofit, management and operations TITLE SPONSOR

PRINCIPAL SPONSORING ASSOCIATION

FOR MORE INFORMATION VISIT

www.pmexpo.com

IT’S ALL HERE • Networking • Marketing • Leads • Exposure • Strategy • Branding • Launch New & Green Products DON’T MISS THIS OPPORTUNITY! TO RESERVE YOUR EXHIBIT LOCATION, CONTACT JEFF INGRAM Tel: 416 512-3811 Email: jingram@mmart.com

©2011 Merchandise Mart Properties Canada Inc.

Portfolio Strategy

Apartment living now in vogue Derek Lobo is the founder of DALA Group of Companies and Rock Advisors. Derek has been the Canadian rental apartment industryâ&#x20AC;&#x2122;s leading consultant for almost 30 years and is now one of the industryâ&#x20AC;&#x2122;s most active brokers. Derek recently brokered the sale of the ESAM portfolio to Minto Management in one of the largest multi-unit residential sales in Canadian history.

38 www.canadianapartmentmagazine.ca

Long an afterthought in the housing market, high rise rental apartments are once again becoming fashionable places in which to live. Social and economic changes are making affluent individuals and couples choose high rise rental living in urban centres over single family suburban homes. These trends have already reduced vacancy rates, spurred new developments and raised rents, and the changes look set to continue for the foreseeable future.

For decades, baby boomers have driven the real estate market. As this generation graduated, started work and started families, they drove the demand for larger homes, mostly located at the edges of cities.

Now, however, the baby boomers are retiring. Their children have moved out and started their own families. Couples today have fewer children than they did twenty years ago.

Now many baby boomers are empty nesters looking to downsize their homes. Younger families are finding that the time they spend travelling from home to work, or to shops or their childrenâ&#x20AC;&#x2122;s school, is eating into time spent with family. As commuting times increase, large

Portfolio Strategy homes at the edges of urban centres have become less desirable as prospective buyers look for smaller places closer to work and other amenities.

Changes to the economy are also having an impact. During the decades when the baby boomers were the dominant demographic in the workforce, many worked in the manufacturing sector, where jobs were centralized and shifts highly structured. This enforced a rigorous separation between home and work, where a familyâ&#x20AC;&#x2122;s home was their castle, a refuge from the hassles of working.

The developing tech sector, however, has discovered that its workers are more productive

when given flexible spaces in which they can meet with their co-workers, discuss and innovate.

Workers need more time and a diversity of environments to communicate with other workers about ideas. Tech companies also found that workers that spent less time commuting and had more time to spend with their family, were happier, and more willing to give their best to their employers.

These revelations have shifted tech jobs away from factory-like office park settings and back to revitalizing neighbourhoods within urban centres. In these neighbourhoods, workers have access to other amenities like shops and restaurants. Tech companies are encouraging

their workers to spend more time working from home, and many tech workers are looking at ways to shorten their commutes. But with space at a premium within cities, the solution for couples searching for a place to live has been to look up.

This new interest in urban living has sparked a boom in high-rise development, both in the form of condominiums and rental apartments. Condominiums made high-rise living fashionable, but many prospective buyers find themselves turning to rental properties as a means of saving money. Despite mortgage rates being at historic lows, the intensity of the condominium market has made properties

September 2011 39

Portfolio Strategy more expensive to purchase than to rent, considering mortgage carrying costs, down payments and condo fees. Renters have more money in their pockets month-to-month, which makes living in a rental apartment less stressful financially than working to own the same property.

Apartment dwellers save even more money compared to single family homes because their maintenance costs are lower, in time as well as in money. They donâ&#x20AC;&#x2122;t have to mow the

Fabrication

Renovation

Accessories

Custom Elevator Solutions

Tel: 905.837.6751 Fax: 905.837.6753 www.premierelevator.com info@premierelevator.com

lawn or keep as big of a garden, and they have a smaller space to keep clean. Apartments have less storage space than single family homes, but many tech workers, retirees and younger couples are spending less money on consumer goods these days, preferring to spend their money outside their apartments at fine restaurants or on other services offered in the surrounding neighbourhood.

Apartments located in neighbourhoods with a diverse set of amenities are ideal for these

new demographics that are less interested in single family home ownership.

Already, vacancy rates have recovered from the 2008 recession. Earlier this year, the Canada Mortgage and Housing Corporation released a rental market report for centres across Canada. In the Greater Toronto Area, it found that vacancy rates had dropped to 2.1 per cent in 2010 compared to 3.1 per cent the year before. Average rents for two bedroom apartments increased by 1.8 per cent. This pattern was matched in Vancouver, where vacancies dropped to 1.9 per cent. In Ottawa, vacancy rates stand at 1.6 per cent, with rents increasing on average by 3.7 per cent. One of the factors CMHC cited as driving these numbers were individuals turning away from home ownership and choosing to rent.

With apartment living now in fashion, developers are being challenged to provide amenities that cater to a more affluent clientele.

Retired baby boomers are living off of life savings acquired after paying off their mortgage.

Young couples often have two incomes to spend between them. Many prospective renters are even two friends rather than a couple, who are pooling their resources for a better place, and many are demanding better luxuries. Many prospective renters want a large second bedroom. The aging baby boomers are demanding improved accessibility features.

These are amenities new apartment developers will have to install in their buildings if they want to earn the top rents. Building managers of older apartments will be challenged to retrofit their units with these amenities, so as not to lose tenants to more modern units.

Developers can also respond to the increasing demand for new apartments by diversifying the market. With prospective renters pooling resources to afford the apartments they need, efficiently designed smaller apartments may better serve these individuals. These subbachelor units offer individuals a break on rent, while at the same time offering landlords a greater return per square foot.

With baby boomers getting older, families getting smaller, and with more and more prospective homeowners turning away from suburban-style living, trends indicate that demand is only going to increase for high-rise apartments in urban centres. Developers and municipalities alike will be challenged to meet this demand, but those that do can expect to reap considerable returns, both in rent, and in vibrant and diverse neighbourhoods increasing the prosperity of our cities.

40 www.canadianapartmentmagazine.ca Premier CONDO ad 2007 March FINA1 1

4/25/07 3:18:56 PM

Portfolio Strategy

Are you at capacity?

Guidelines are changing all the time. Recycling, compactor, and now organic bin size requirements can cause capacity headaches. Metro Compactor Service gives you advice when choosing your containers, saving you money and space over the long term. Our containers are made to high standards that meet or exceed current regulations.

456.011 05/11

Call Metro Compactor Service for a free bin assessment, and get the right bin for your space.

416 743 8484 â&#x20AC;˘ 1 888 968 7491 www.metrocompactor.com

11035_Roma_2011_FINAL.pdf

Untitled-3 1

1

11-02-18

12:02 PM

11-08-19 11:40 AM

Join the Conversation with Canadaâ&#x20AC;&#x2122;s leading industry professionals

V-Reports >>

www.canadianapartmentmagazine.ca Not getting our V-Reports?

Sign up at v-reports@mediaedge.ca for direct delivery to your e-mail inbox.

To sponsor or participate in a V-Report, contact Rehana Begg at rehanab@mediaedge.ca

September 2011 41 11188_VReport2_2011.indd 1

11-09-02 4:12 PM

Finance

Grow with CMHC Mortgage Loan Insurance for Multi-Unit Residential Properties Paula Gasparro is the Manager, Business Development, Multi-Unit Mortgage Insurance at CMHC. Reach her at 416-250-2731, via e-mail at pgasparr@cmhc.ca or visit www. cmhc.ca/multunit.

42 www.canadianapartmentmagazine.ca

As an investment, a multi-unit property, such as an apartment building, can help build wealth much faster than other asset classes; however, an apartment building also requires more outlay upfront. With Canada Mortgage and Housing Corporation’s (CMHC) Mortgage Loan Insurance for Multi-Unit Residential Properties, purchasers can reap the benefits of an earlier closing on multi-unit buildings, while maximizing their return on investment.

CMHC’s Mortgage Loan Insurance for multi-unit buildings allows investors to purchase a property with a lower down payment – as little as 15 per cent for buildings with five or more units, including rental buildings and condominium construction, as well as student residences, licensed care facilities and nursing homes. Along with a lower down payment, borrowers can enjoy competitive interest rates and easier loan renewals. CMHC is Canada’s only provider of Mortgage Loan Insurance for Multi-Unit Residential Properties, making it available for construction, purchasing and refinancing of multi-unit investment properties.

CMHC’s trusted loan insurance products reduce risk for approved lenders; borrowers can obtain mortgage funding at much lower interest rates than would otherwise be required for conventional mortgage financing, and get increased lending limits of up to 85 per cent of the multi-unit property’s value.

In addition to added security, CMHC offers flexible options to help lenders tailor financing to the borrower’s particular needs. Flexible repayment terms are available, including extended amortizations, and fixed or floating interest rates. There is also an option for rolling application fees and insurance premiums into the mortgage loan. The fees and premiums pay for themselves – generally they are substantially offset by the savings from lower interest rates.

There are even enhanced underwriting flexibilities available in support of affordable housing and energy-efficiency initiatives.

Finance

When it comes time for renewal, the insurance is transferable between CMHC-approved lenders, and follows the mortgage for the remaining amortized period, making it easier to renew the mortgage upon maturity.

How can a CMHC-insured loan help you to maximize your return on investment?

Here’s one example: Thomas considered purchasing an eightunit apartment building with a market value of $525,000; it provided a rental income of $56,000 and had operating expenses of $17,000 (for a net operating income of $39,000). With a 25 per cent down payment of $131,250, Thomas could get a conventional uninsured loan of $393,750, at a rate of 5.25 per cent. With a CMHC-insured loan, Thomas would pay an application fee of $150 per unit, but enjoy a lower interest rate of 4.5 per cent, and obtain a loan of $467,531, with a 15 per cent down payment of only $78,750. Amortized over 25 years, Thomas would see a return on investment of 10.1 per cent with a CMHC-insured loan versus 8.3 per cent for an uninsured loan.

With capital repayment factored in, Thomas’s return on investment would jump to 23.3 per cent for a CMHC-insured loan versus 14.3 per cent for an uninsured loan.

By allowing Thomas to borrow at a lower rate rather and providing him with a lower down payment, a CMHC-insured mortgage loan would help him maximize his return on investment.

The increased lending limit of a CMHC-insured mortgage enhances his return on equity invested.

His initial investment would be lower, the interest savings would offset the cost of setting up the mortgage, and he would see greater investment results, sooner.

S u i te Co l l e c t i o n s Ca n a d a I n c.

i s t h e o n l y Co l l e c t i o n s Ag e n c y i n O n t a r i o t h a t s p e c i a l i ze s i n

R e s i d e n t i a l B a d D e b t Co l l e c t i o n s.

O u r p r i m a r y fo c u s i s to re cove r u n p a i d re n t fo r l a n d l o rd s, f ro m b o t h c u r re n t a n d p a s t te n a n t s.

One Goal…. One Focus…. Great Results

Co n t a c t :

Surana Baptiste

M a n a g e r, Le g a l & Co l l e c t i o n s

S u i t e Co l l e c t i o n s C a n a d a I n c.

Go online for more finance articles

284 Richmond St., E, Suite 300 To ro n t o, O n t a r i o M 5 A 1 P 4 t.416.642.0291 x364 f. 4 1 6 . 3 4 0 . 0 8 5 5 w w w. s u i t e c o l l e c t i o n s. c o m

www.canadianapartmentmagazine.ca September 2011 43 Untitled-6 1

11-08-31 11:55 AM

Advertising Feature

Enbridge energy consultants

Improving energy efficiencies with Enbridge’s experts

Achieving energy efficiency is not as complicated, time consuming and costly as one may anticipate. In fact, it’s never been easier for sustainable building owners with the help and support of an Enbridge Energy Solutions Consultant (ESC).

An ESC’s primary objective is to improve energy efficiencies with their technical expertise and suitable energy solutions while saving the customer money by reducing energy expenditures and making them aware of financial incentives available. They have industry knowledge which allows them to find the energy initiative that’s right for each business.

Enbridge’s ESCs offer a wide range of related FREE*services specially designed to help customers establish and fulfill a successful energy conservation plan. The consultants are able to provide customers with a customized natural gas Energy Plan identifying improvements to maximize available financial incentives by performing a preliminary walk-through of a building.

“ESCs are not only concerned with providing customers with incentives; they are natural gas experts eager to ensure that they are maximizing energy efficiency long term,” said Walter Matias, Portfolio 44 www.canadianapartmentmagazine.ca

Manager, Marketing and Energ y Efficiency at Enbridge.

“They are the resource for reviewing energy efficiency choices, analyzing gas consumption data and also determining the return on investment of different options.”

An Enbridge ESC is available to offer solutions to customers for any program, promotion or technical assistance they require and will ensure projects are simple and easy to execute.

In addition to offering solutions, they are also able to connect customers with an inventory of Enbridge’s independent business partners including manufacturers, energy specialists and contractors for equipment, installation and maintenance estimates and assistance.

“The wide range of Enbridge’s services

and programs for both existing buildings and new construction help commercial customers cut costs and improve operational efficiency while helping to build a sustainable future for the province.,” Matias said.

ESCs work with their customers to determine the most suitable incentive programs to ensure they receive the maximum payback possible. These experts will work with their customers during the application process to ensure everything runs smoothly, ensuring that not only is time saved but also that the project will be eligible and that it can start immediately.

New incentives develop throughout the calendar year.

For existing commercial buildings concerned about sustainability, incentives cover a vast territory. A list of custom incentives are highlighted below: Variable frequency drive (VFD): By varying the speed at which motor-driven equipment operates, VFD technology helps to cut down energy output. Customers that create a VFD project may be eligible for a one-time incentive of 20 cents/m3, up to a maximum of $100,000 of the project’s estimated natural gas savings.

Capital improvements: One-time retrofit incentive calculated on the projected first year’s natural gas savings. Capital improvement rates are 10 cents/m3 saved up to 50 per cent of the project’s capital cost to a maximum of $100,000.

Portfolio benchmarking (Energy Compass): A benchmarking tool designed to increase natural gas efficiency in buildings. This includes many services such

Advertising Feature as the development of a natural gas energy plan; identification of the worst buildings in a portfolio; an incentive outline and connections to Enbridge business partners Operational improvements (Run It Right): Assists Enbridge customers in identifying and carrying out low/no cost operational improvements in their building.

Benefits include access to natural gas experts to help develop a customized energy efficiency strategy; reduced energy consumption; f inancial incentives; subsidized operator training (if companies participate in Energy Compass) and meter exchange.

Condensing boilers: Upgrading existing boiler system by installing condensing technology can qualify a customer for an incentive rate of 15 cents/m3 of estimated natural gas savings for condensing boiler activities. Incentives are a one-time payment based on the estimated first year natural gas savings, with a limit of $30,000 per building.

Rebates: Enbridge offers a wide variety of rebates throughout the year.

For new construction, Enbridge also offers additional incentives:

Design assistance program (DAP): Offers applicants an incentive of $3,000 per building for design processes aimed at improving a building’s energy and environmental performance. The DAP incentive is obtainable for a new building, an addition to an existing building, or a major renovation.

Implementation support: To offset the administrative cost of appraising and reporting energy efficient design alternatives included in the new building, Enbridge has put forth a $2,0 0 0 incentive for implementation support.

New building construction program (NBCP): This program provides an incentive for energy savings that will result from adding energy efficiency measures to a reference design building. The natural gas savings identified is based on the results of an energy simulation. Enbridge will pay 10 cents/m3 of projected annual natural gas savings, up to $30,000 per building.

New construction program (NCP): If a building simulation has not been completed for a new building, incentives are still attainable for the addition of energy efficient natural gas equipment to a new building

Looking to save energy and money?

Double your incentive on VFD technology.

By varying the speed at which motor-driven equipment operates, Variable Frequency Drive (VFD) technology helps reduce energy use. For a limited time, large commercial customers who implement a VFD project may qualify for a one-time incentive of $0.20 per m3** of the project’s estimated natural gas savings.

Offer expires September 30, 2011.* For more on this special offer, talk to an Enbridge Energy Solutions Consultant. It’s easy and the service is FREE. Trust your consultant for:

design. Enbridge will pay 10 cents/m3 of projected annual natural gas savings to a maximum of $30,000 per building.

Additional terms and conditions apply.

For more information on all of these incentives or to apply, visit www.enbridgegas. com/commercial Enbridge also offers numerous incentives for smaller commercial customers such as a heat and energy recovery ventilator program; a Spray ‘N Save program (for food service customers, rinsing dishes/utensils); an infrared heater program; a tankless water heater program; and a demand control kitchen ventilation system. For additional information and for a full list of small business incentives, visit www.enbridgegas. com/smallbiz “Enbridge has made it easier than ever for commercial businesses to integrate energy efficient upgrades into their facilities by offering incentives and excellent consulting services,” said Matias.

To get started on an energy efficiency project for an existing or new building or for more information, contact Enbridge Gas Distribution at 1-866-844-9994 or visit www.enbridgegas.com/business.

time Limited rr y call Hu offer – oday! us t

• Excellent Service • Reliable Energy Solutions • Financial Incentives • Technical Expertise

To get started call Cyndi Buscarini at 416-495-6070 or 1-866-844-9994.

Please reference promo code: CAAD to receive this time limited offer * **

Complete terms and conditions available at www.enbridgegas.com/doubleincentive Project must be implemented this year. Savings calculated over a one year period. Maximum available incentive is lesser of $100,000 or 50% of VFD technology project cost.

ELC671_VFD_Ad_7.125x4.75_Cyndi.indd 1 Untitled-4 1

11-09-022011 2:06 PM September 45 11-09-02 4:07 PM

Smart Ideas

Winning tips for real estate investors Here are some do’s and don’ts for would be apartment owners

“Identify something that is missing in the marketplace, i.e. one bedroom plus dens, townhouses, student rentals. Then buy several of the same type of properties in an area you like.”

“Purpose-built student housing has high profitability. A four bedroom house could be rented to one family for $1200, or to four students for $500 each ($2000 total). Be aware that these properties can be labour intensive and have high turnover.”

”Class A renters are usually under 30, higher income, without children or empty nesters. They prefer buildings built after 1990 with amenities and can afford higher rents.

Class B renters tend to be aged 30 and over, more families, lower incomes, and don’t mind older properties at a lower rent.

Class A properties do well when the economy is good, Class B falls less in the early stages of a downturn.

It’s good to have a portfolio balanced between the two.”

- Derek Lobo, Rock Advisors. From “Canadian Apartment Market Overview” Webinar, August 19, 2011.

“What is a bonus in a home — large yard — can be a big negative in a rental. Yards need work.

Yards encourage things like big summer parties and oversized barking dogs chained to stakes.”

“I have friends with rental properties who do very well. But they are tough as nails and file eviction notices for non-payment promptly. They also believe in the philosophy of “good enough.” For example, they install industrial carpeting in rental units, not broadloom which, I discovered, attracts tenants who do small-engine repair in the living room.”

- Alison Griffiths, Toronto Star MoneyMatters columnist, www.alisongriffiths.ca From: “Why did I think being a landlord was easy money?,” June 5, 2011.

46 www.canadianapartmentmagazine.ca

“If you are aiming for riches, the best way to get there is with OPM (other people’s money). We should have borrowed the maximum possible, deducted the interest and put our own money to work paying down our non-tax deductible mortgage.”

Meeting your needs is our first priority

First National specializes in multi-family and commercial mortgage lending, and is a leading lender of CMHC insured mortgages for multi-family properties.

We offer a wide variety of mortgage products available at competitive rates including: > CMHC Program > Conventional Financing > Construction Financing > Small Loans Program

Make First National your first call

Contact us today, and we will customize a mortgage solution for you.

www.firstnational.ca

Vancouver

Calgary

604.681.5300 800.567.8711

403.509.0900 888.923.9194

Toronto

416.593.1100 800.465.0039

Montreal

Halifax

514.499.8900 888.499.1733

902.452.0776

First National is licensed under the Mortgage Brokers, Lenders and Administrators Act 2006 (Ontario) Licence No. 10514

Revolutionize your laundry room.

Now available in Canada. Coinamatic® is proud to introduce LG’s commercial washer series.

Technologically advanced with premium design aesthetics, these washers are one of market.

Offer your residents a premium laundry room experience that saves money.

Premium look and performance.

Lower utility bills, less maintenance, market the appeal of a greener building.

LoDecibel™ Quiet System , Direct Drive™ Increase your revenues with machines your residents want to use.

Factor) and WCF (Water Consumption Factor).

LG front load washers exceed Energy Star classifications by a minimum of 39%.

Contact us today 1-877-755-5302 for more information on how LG washers can revolutionize your laundry room.

t: 1.877.755.5302 f: 905.755.8885 www.coinamatic.com www.lgcommerciallaundry.com