CondoBusiness * September 2019

Canada’s Most Widely Read Condominium Magazine

September 2019 • Vol. 34 #4

COMMON AREA RENOS What to consider when refreshing public spaces

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Ask the Expert: Budget-friendly renovations Upgrading the resident experience

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Contents COVER STORY

22

Common area renos

By Holden Johnson

28

Technology Upgrading the resident experience

By Peter Pietrzkiewicz

32

Pest control 2.0

By Sean Rollo

35

Legal Know what's in your documents

By Lydia Chartre & Husch Blackwell

38

Canadians weigh in on mortgage fraud

By Matt Bradford

DEPARTMENTS

10

Regulatory Ontario Fire Code to add steeper fine bracket

By Barbara Carss

16

Realtors lobby to reduce home ownership barriers

By Matt Bradford

18

Industry Trends Gen Z friendly cities foster a rising cohort

By Barbara Carss

IN EVERY ISSUE

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Ask the expert

42

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EDITOR'S LETTER

A full slate

Publisher Dan Christie

And just like that, summer 2019 is

a memory. Fortunately for us, there is no shortage of industry topics and insights to explore as the condo

community makes preparations for the chilly days ahead.

With that said, I am pleased to introduce one of the largest issues of the year. We've cast our net wide to collect insights from leaders across the industry, including those from our cover story contributor, Holden Johnson, and our Ask the Expert guest, Anita Wiklém.

Their combined expertise in condo design and renovation are bound to leave you with a number of smart, stylish, and budget-friendly considerations for your next project.

Technology is a recurring theme in condo management. To that end, we've included spotlights on several digital tools and innovations that are enhancing the resident experience and upgrading pest control techniques. And, continuing with the theme of 'operational upgrades,' this issue features several articles aimed at giving condo owners and managers the edge when it comes to managing their documents and getting the most from their maintenance investments.

Lastly, we've drawn from our own pool of industry watchers to discuss changes to the Ontario Fire Code, the latest attitudes towards mortgage fraud, and additional industry developments.

A busy season deserves a packed issue. We hope you find something from this edition of CondoBusiness that will give you an edge in your role or reveal a fresh perspective on an old challenge. As always, I welcome you to reach out with your stories, feedback, and future article suggestions.

Editor Matthew Bradford Advertising Sales Kelly Nicholls Melissa Valentini Senior Designer Annette Carlucci Production Manager Rachel Selbie Contributing Writers Husch Blackwell, Matthew Bradford, Barbara Carss, Lydia Chartre, Sean Rollon, Holden Johnson, Murray Johnson, Peter Pietrzkiewicz Digital Media Director Steven Chester Subscription Rates Canada: 1 year, $60*; 2 years, $110* Single Copy Sales: Canada: $10*.

Elsewhere: $12 USA: $85 International: $110 *Plus applicable taxes Reprints: Requests for permission to reprint any portion of this magazine should be sent to info@mediaedge.ca.

Circulation Department Anthony Campbell circulation@mediaedge.ca (416) 512-8186 ext. 234 CONDOBUSINESS is published six times a year by

All the best, President Kevin Brown

Matthew Bradford Editor, CondoBusiness matthewb@mediaedge.ca

Director & Group Publisher Sean Foley Controller Nadia Piculik, CPA, CMA 5255 Yonge Street, Suite 1000, Toronto, ON M2N 6P4 (416) 512-8186 Fax: (416) 512-8344 e-mail: info@mediaedge.ca CONDOBUSINESS welcomes letters but accepts no responsibility for unsolicited manuscripts or photographs.

Canadian Publications Mail Product Sales Agreement No. 40063056 ISSN 0849-6714 All contents copyright MediaEdge Communications Inc. Printed in Canada on recycled paper.

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Ask the Expert: Budget-friendly renovations Whether it's a front lobby reno or party room refresh, an outdoor addition or hallway restoration, taking steps to rejuvenate a condominium can have positive impacts on asset value and resident satisfaction. That is, of course, if there's room in the budget to get a project off the ground. Condo managers and owners are often challenged to keep assets looking their best while balancing the books. That's where knowing where to focus restoration efforts (and how to save a few bucks in the process) can help balance the desire to stay modern with the need to stay on budget. Here with advice from over 25 years of condominium interior design work is Anita WiklĂŠm, founder, Creative Director, and Managing Partner of WiklĂŠm Design Inc. What would you tell clients who are anxious about spending money on a condo renovation or restoration?

You really don't need to spend a fortune to make a big impression. If you know where to focus, where you can save money, and how to get creative with what you have, you can achieve your renovation and design goals without breaking the bank.

8 CONDOBUSINESS | Part of the REMI Network

ASK THE EXPERT How can condo owners/managers save money when it comes to installing new interior decorations?

Sprucing up an area with a new painting, sculpture, or decorative feature sounds great on paper but can be pricey in execution. One way to keep costs in check is to simply re-purpose existing artwork from elsewhere in the building, either by placing them in new locations, taking old pieces out of storage, or adding additional design flares around existing pieces to bring new life.

Also, instead of going to galleries to buy your art, you can develop relationships with local artists and work with them to bring out the best of your design.

Does the same strategy apply to furniture?

It does. Just as "old" art can be relocated and spruced up, you can do the same with pieces of furniture that may have been forgotten or are currently languishing in places where they aren't noticed. Before shopping for a new love seat, cabinet, or side table, look around for furniture that may need a little re-upholstering or cleaning to feel like new again.

I should, however, mention that when it comes to lobbies and exit corridors without sprinklers, you need to work with CAL 133 rated furniture (California Bulletin 133), which is a rating related to the flammability of furniture in various public buildings. Usually, you'd have to buy two of the same pieces of furniture to test one, so choosing a front lobby chair, sofa, or other upholstered items from a pre-approved selection of CAL 133 can save you a lot of time, money, and hassle.

Where should that focus be?

The suite corridors and the hallways usually give the owners the most value back for their investment. That's what suite owners typically react to the most because it's an extension of their home. What I like to tell people is that carpet, paint, and wall covering are your basic needs – everything else is gravy.

That being said, replacing hallway carpets and wall covering doesn't come cheap. That's why we suggest considering the size of a carpet and wall covering's repeating pattern because you want something that will match your layout and fit in with your environment. In some cases, they may even find that carpet tile is the better choice for an area with a lot of directional changes because it means less waste.

Lighting can also be a big-ticket item ...

Right. Replacing or upgrading lights can be a strain on renovation budgets. But even still, good lighting design is crucial to the overall look and feel of a finished design. That's why we like to review options to retrofit existing fixtures to LED if they are timeless and work with the design.

As for cost-friendly strategies, surface mounted pot lights look amazing. They provide a simple and clean feeling, especially for corridors, and they are very reasonably priced.

What about saving money on aesthetic repairs?

We deal a lot with floors or walls that are dated and need a redesign. While one option is to replace the flooring entirely, this can understandably come at a considerable cost. Instead, we often build that flaw into a new design.

For example, we worked on one condo that had large, visible scars in the granite from the building's original planters, and the board couldn't afford to replace the flooring. So instead of replacing it, we made it look like an inset detail. In another building, we were installing a new bar in a rec room that had damaged wooden flooring. Without the funding to replace it, we decided to create a granite border that followed the circular design of the bar and highlighted it with additional lighting. We just made it look like a wow factor instead of a broken floor.

Consulting a design professional for projects like these can also come at a cost. How can condo owners and managers justify the expense?

There is generally no line item for interior designers in the reserve fund budget, but when you're tackling these massive projects, you're going to want someone on your team who can get creative, find those cost-savings opportunities, and use every last dollar effectively.

Just like engineers or electricians, registered interior designers have a wealth of knowledge and experiences they can bring to the table to help boards see things from different angles and make more informed decisions. 1 Anita Wiklém is the founder, Creative Director, and Managing Partner of Wiklém Design inc. and Wiklém Design+BUILD inc. (www.wiklemdesign.com), an award-winning Toronto firm specializing in condominium refurbishment and new build high-rise.

www.REMInetwork.com | September 2019 9

Ontario Fire Code to add steeper fine bracket

Ontario property stakeholders will now be held to a steeper fines

BY BARBARA CARSS

for consecutive Fire Code violations. Recent amendments to the Fire Protection and Prevention Act have introduced a distinct slate of penalties for “a subsequent offences� as well as clarification that any conviction under the Act or its regulations will count as a first offence.

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REGULATORY

According to the changes, fire departments also have more time to prosecute infractions with the addition of a new section to authorize action within one year of implicating evidence coming to light. Until now, the Act has been silent on timelines for prosecution so fire officials have had to default to the parameters of the Provincial Offences Act, which gives them just six months from the time an incident occurs.

“That timing was extremely problematic for us,” says Jim Jessop, deputy chief with Toronto Fire Services. “These amendments will absolutely increase our ability to enforce the Ontario Fire Code and to deal with and mitigate other safety hazards not addressed in the Fire Code.”

For example, complicated investigations in the aftermath of a fire can take months to uncover all the contributing factors and related safety inadequacies. “Because of the timing, we were not able to move forward with dozens of prosecutions in cases where building owners had failed to comply,” Jessop advises.

The extended period for prosecutions, more stringent fines, and additional flexibility

for the province and municipalities to recover costs from property owners came into force when the Ontario legislature adopted the Budget Measures Act; however, there was little formal communication of the government’s intentions. They were revealed in the final chapter of the provincial budget — entitled Details of Tax Measures — in a list with nine other planned legislative initiatives, and received scant attention.

“We were not consulted,” reports Tony Irwin, president and chief executive officer of the Federation of Rental-housing Providers of Ontario (FRPO).

“Nobody has really picked up that this is in the works. Even our (life-safety) service providers weren’t really aware that this is happening,” concurs Randy Daiter, vice president, residential properties, with M&R Property Management. “There seems to be a growing trend to adopt an enforcement approach that’s geared toward generating revenue for government agencies.”

Subsequent offence category brings hefty cost hit Monetar y penalties have increased

12 CONDOBUSINESS | Part of the REMI Network

significantly for the new subsequent offence category. Notably, corporations are currently subject to fines of up $100,000 for contravening the Act or any of its regulations. That cap has been raised to $500,000 for a first offence and to $1.5 million for a subsequent offence.

For individuals, conviction for any offence under the Act, not just those related to the Fire Code, now come with a first-time fine of up to $50,000, with subsequent offences triggering fines of up to $100,000. The same increments apply for fines imposed on directors or officers of a corporation who are aware that the corporation has violated the Fire Code, or who knowingly commit an offence under the Act or any of its regulations.

This matches maximums already in place for offences under the Ontario Building Code Act. The Building Code Act fur ther authorizes fines of up to $ 10 , 0 0 0 p e r d a y fo r a c o n t i n u i n g of fence when convicted par ties fail to bring their buildings back into compliance with a chief building official’s order — a penalty that is not

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REGULATORY

“In cases where the building owner is either unwilling or unable to comply with the Fire Code, we have the ability to request authority (from the Fire Marshal) to close the building. We get permission to literally go in and change the locks and close the building,” Jessop explains. “In the past, the costs of everything from staff time to locksmiths to erecting fencing to keep the public out were borne by the municipality, which we do not think is appropriate.”

paralleled in the amendments to the Fire Protection and Prevention Act. The previous $2,000 maximum fine for tampering with or removing a posted notice from the Fire Marshal took the most extreme upswing as it, too, rose to $50,000 for a first offence and $100,000 for a subsequent offence. Fire departments can also begin to pass through costs when it is necessary to close properties considered an immediate threat to safety.

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Tenants and service providers play a role in compliance The Fire Code’s oversight of existing buildings makes it a more common compliance challenge for landlords and their property managers than the Building Code’s more scoped application to new construction and major renovations.

That’s particularly true in the residential sector where tenants can inadvertently or purposely compromise life - safet y protections — propping open fire doors, disabling smoke detectors in their own units or even vandalizing equipment.

Nevertheless, industry insiders predict the new fine regime will come with a hefty cost hit.

“That first offence could be s o m e t h i n g l i ke a d o o r c l o s e r n o t working properly and now it puts you in line for a substantial fine,” Daiter notes.

“Landlords are often held responsible for tenants’ actions simply because it’s easier to charge and fine a landlord than it is a tenant. Similarly, under the current rules, many landlords would plead guilty and pay the fine, largely because it’s easier to do that than to go to cour t to tr y to defend against the charge,” Irwin says. “This is really going to change how they approach these types of matters.”

Reputable landlords and proper t y managers endorse fire departments’ efforts to deal with what Jessop terms “a minority of owners” who are wanton and reckless, and are endangering tenants, occupants and responding firefighters”. However, Irwin and Daiter reiterate that tenants and service providers also play a role in fire safety.

“With elevators, the TSSA (Technical Standards & Safety Authority) has made the elevator contractors more responsible and, that way, they are getting better results,” Daiter submits. “Maybe there should be a similar mechanism to make sure service providers are really ensuring Fire Code compliance with professional rigour.”

Nor is it a given that steeper fines will temper wanton and reckless behaviour. “If people aren’t motivated to do the right thing in fear of a $50,000 fine, they likely won’t change their ways at the threat of a $100,000 fine,” Daiter maintains. 1 Barbara Carss is editor-in-chief of Canadian Property Management.

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REGULATORY

Realtors lobby to reduce home ownership barriers Canada’s real estate community has rallied to urge all levels of government to make home ownership

BY MATT BRADFORD

more accessible for people across the country. This September, The REALTORS Association of Edmonton (RAE) joined the Quebec Professional Association of Real Estate Brokers (QPAREB), the Nova Scotia Association of REALTORS® (NSAR) and Toronto, Calgary and Vancouver real estate boards to urge the federal political parties to “commit to policies that will help remove barriers and reduce the cost of home ownership” in advance of the federal election in October.

16 CONDOBUSINESS | Part of the REMI Network

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REGULATORY

“Home ownership is a key component of the national economic fabric and its role in creating economic diversity cannot be C overlooked,” said Michael Brodrick, Chair of RAE. “To help Canadians, the real estate market must have liquidity, but the M federal government’s anti-homeownership policies have made it Y difficult for Millennials to purchase their first home, difficult for CM families to upsize or downsize as their needs change and difficult MY for seniors to exit the market.”

For example, he continued, the mortgage stress test has had CYa significant downward impact on the price point at which buyers CMY can qualify and purchase. “This has lowered prices and stolen K equity from homeowners. Home equity is a substantial asset for many Canadians, and this equity will not be easily or quickly rebuilt.”

To correct course, the group has put forward several housing affordability recommendations, including: • Revise the Of fice of the Superintendent of Financial Institutions’ (OSFI) mortgage stress test to take into account its impact on different real estate markets across the country.

According to the press release: "The federal government should view the stress test as a flexible policy and adjust it based on changing economic trends and interest rates."

• Replace the $750 First-Time Home Buyers Tax Credit with a $2,500 non-refundable tax credit for first-time home buyers.

• Reintroduce 30-year mortgage amortizations.

• Consider regional differences when implementing nation-wide measures that affect home buyers.

“No two real estate markets are the same. The one-size-fits-all housing policies, like the mortgage stress test, are simply not solutions that will work across our diverse country,” explained Matt Honsberger, president of NRAB, adding, “In Nova Scotia, transactions through the NSAR MLS® System generated an estimated $513 million in spin- off spending last year. This economic impact is recognized by all levels of government, who we encourage to continue working with real estate brokers to ensure that policies encourage growth in our market and make home ownership more affordable and accessible.”

Alan Tennant, Chief Executive Officer with the Calgary Real Estate Board (CREB), also expressed the need for greater unity on housing initiatives, noting, “The time has come for Canada to have a clearly articulated housing strategy that brings all government agencies onto the same page. We are supportive of initiatives that facilitate Canadians in achieving their dream of home ownership. Leadership in government is needed to bring an end to ad-hoc policy changes that make tough economic conditions harder in some markets or introduce measures too late.”The combined real estate associations and b o ards represent over 9 2,0 0 0 real est ate brokers throughout Canada, who account for 70% of the industry and an estimated $31B in transactions annually. 1

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INDUSTRY TRENDS

Gen Z friendly cities foster a rising cohort

Toronto, Vancouver and Montreal rank among the world’s most Gen Z friendly cities, analysis from Nestpick, a

BY BARBARA CARSS

global database for furnished apartment and room rentals, concludes.

The recently released study assesses and scores 110 cities on 22 indicators — broadly falling into the categories of digital infrastructure, societal openness, leisure pursuits and business culture — deemed to support and/or influence the age cohort born between 1997 and 2012.

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INDUSTRY TRENDS Toronto emerges as the fourth most welcoming locale after London, Stockholm and Los Angeles, and one notch above New York. Vancouver takes the number 10 position, sandwiched between Amsterdam and Paris, while Montreal occupies the 15th slot and is the second most affordable city in the top-15 after 12th-ranked Manchester, U.K.. Ottawa, placed 42nd, and Quebec City, placed 54th, round out Canadian representation on the list defined as “prominent international cities … selected based on their reputation as destinations to pursue work and education”.

Although pre-teens may not yet be contemplating such moves, the young adults at Gen Z’s leading edge largely fill post-secondary labs and lecture halls and are steadily entering the workforce. Nestpick’s founder and chief executive officer, Ömer Kücükdere, notes they’ve grown up in a digitally connected world fraught with economic and environmental turmoil, giving them inherently different reference points than Millennials or Generation X before them.

“Despite the vast amount of livability indexes, there has been no study focusing on Generation Z with their ideals and values in mind, until now,” he maintains.

“Taking a values- centric approach to this study, we looked into which cities around the world b est underst and , advocate and embody the principles Gen Z-ers prioritize.”

In addition to topping Nestpick’s list of best cities for Generation Z, London is also where the online marketing platform does the most business. As of Sept 16, it offered more than 10,200 listings of accommodations in the city versus a combined total of about 7,000 listings in the other top-5 cities. Stockholm, with 394 listings, and Toronto, with 767 listings, trail

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London’s tally most significantly, while there are 2,510 listings in Los Angeles and 3,330 listings in New York.

This perhaps underpins Kücükdere’s enthusiasm. “London has shown how it is at the forefront of digitalization, advocacy, entertainment and business. Brexit or not, London has shown it has the foundations to continue magnetizing Generation Z for the long-term,” he submits.

The 22 indicators cover a range of practical and lifestyle considerations, from affordability to the prevalence of E-sports, in an effort to gauge each city’s ability to support health, safety, personal freedoms, convenience and human interaction.

The city with the highest score for each indicator is automatically assigned 100 points. The same practice is used for the total score, somewhat obscuring the actual gap between London and Stockholm’s second highest total score of 89.88.

To r o n to’s to t a l s c o re i s 8 6 . 2 0 ; Vancouver’s is 82.48; and Montreal’s is 80.

Farther down the rankings, Ottawa scores 71.88 and Quebec City scores 66.58.

National data is used to determine scores for eight of the indicators with some state-level differentiation applied for cities in the United States. As a result, cities in the same country have identical or largely similar scores for more than a third of the indicators.

Fulfilling basic needs and lifestyle preferences Canadian cities do not achieve the top scores for any of the 22 indicators, but are highly placed for access to healthcare, safety, environmental quality, right to protest and start-ups targeting “social satisfaction” over profit. Canada likewise makes a strong showing across most of the seven indicators in the digital infrastructure category.

All five cities are tied for fourth (based on national level data) for digital payment options. Also based on national level data, Canadian cities fall behind several European countries, but ahead of the U.S. for online security and user privacy, whereas as digital social habits are deemed less ingrained in Canada than in the U.S. Ottawa, Montreal and Toronto make the top 20 for connectivity and high-speed communications, with Vancouver and Quebec City also cracking the top 30.

20 CONDOBUSINESS | Part of the REMI Network

Vancouver is ranked ninth for digital peerto-peer networks such as bike-sharing and ride-hailing, while Toronto is 28th and Montreal is 35th. Toronto is ranked 10th, Montreal 19th and Vancouver 21st for technology-based education programs.

The study’s sponsors note that 14 of the 20 cities deemed to offer the best fit for Gen Z are also found among the 50 least affordable cities. Montreal, ranked 42nd for affordability, is the only North American exception. Manchester, Berlin and Frankfurt in Germany, and Gothenburg and Malmo in Sweden round out the group of six.

Rankings for the indicator are based on the monthly cost of living in the city — a scale that appears to peg Toronto as the fifth costliest in the top 20 after New York, San Francisco, Copenhagen and Paris. Across all 110 cities, the Swiss cities of Zurich, Geneva and Bern, and Oslo, Norway, are rated less affordable than New York. The most affordable North American city is Mexico City, ranked fifth for affordability and 87th overall, while the most affordable European city is Bucharest, Romania, ranked ninth for affordability and 86th overall.

Quebec Cit y is the only Canadian city to receive the automatic one-point score, assigned to the city with the lowest score for each indicator, for its quotient of businesses involved in artificial intelligence. In contrast, Toronto scores 70.37 for the indicator and is ranked 7th among the 110 cities.

Meanwhile, Quebec City significantly outdistances Canadian counterparts for entrepreneurial spirit and innovation. With a score of 73.4, Quebec’s capital places 13th for the indicator, which measures the number of start-ups, costs and time expenditure to incorporate a business and local logistics. Vancouver follows in 46th with a score of 56.77 then Toronto in 48th with a score of 54.54.

With the exception of Quebec City, Canadian cities post their lowest scores for the E-sports indicator. That’s also a common pat tern across the entire database, in which 4 5 cities register scores of less than five. Toronto’s score of 23 is the lowest in the top five, but is still good enough to rank 20th out of the 110 cities. Vancouver is Canada’s next highest ranking E- spor ts centre with a score of 18.8. 1

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www.REMInetwork.com | September 2019 21

COVER STORY

COMMON AREA RENO

22 CONDOBUSINESS | Part of the REMI Network

COVER STORY

OS

BY HOLDEN JOHNSON

When was the last time you were excited at the look of a common area such as a lobby, corridor, or other shared amenity space? For most people, it's when they first move into a new condo. For some, it's never. For others, it's whenever they visit residents of a new condo or a condo with a recently renovated common area.

www.REMInetwork.com | September 2019 23

COVER STORY

Regardless of your situation, you deserve to be excited about an opportunity like this, as it only comes along once every decade or so. So to help you get the ball rolling, here are five things to consider before your next common area renovation.

1

Is it accessible?

One of the greatest things about upgrading a common area is the new and modern look it brings to the whole building. However, aesthetically pleasing does not always equal accessible or functional. This is because designers are typically focused on the overall look of the design – it's what they are good at, and we wouldn't want it any other way.

Still, depending on when the building was constructed and the laws at the time, a common area renovation may require that new accommodations be made to adhere to current accessibility laws. For example, the Ontario Building Code was amended in 2013 and now addresses a c c e s si b ili t y in new l y c o nstr u c te d

buildings, as well as those that are to be "extensively renovated."

Also, measures should be taken to ensure the design should comply with the Accessibility for Ontarians with Disabilities Act (AODA) 2005, which has stipulations that condo corps would be subject to as well.

Overall, if you are considering an extensive renovation, it would be a good idea to seek advice from an appropriate legal consult.

2

Do you have a permit for that?

In keeping w ith the idea of modernization roadblocks, common area renovations can often require a permit depending on the type of work being done.

Once again, it is not necessarily the d e s i g n e r s’ re s p o n s i b i l i t y to k n o w what may or may not require a permit.

Furthermore, some contractors don’t ask about permits before starting a project, whether that is because they don’t want to know or assume that they are already in place.

24 CONDOBUSINESS | Part of the REMI Network

In any case, the responsibility still falls on the corporation to determine and acquire any permits deemed necessary for the project ahead.

3

Did you get the owners’ opinions?

Section 97 of The Condominium Act allows the board to make decisions such as additions, alterations, or improvements to common elements if the change is necessary in order to: • ensure the safety or security of persons using the property or assets of the corporation or; • to prevent imminent damage to the property or assets.

In these cases, decisive leadership from the board is needed in order to make quick and just decisions to rectify the problem.

However, being a director during a large common area renovation can be a lot more complex, as there are some new things to consider and plan for.

COVER STORY

Fortunately, the planning process will allow time to get the opinion of owners who want to be involved, even though it is not necessary to do so.

For a director, the most significant advantage of get ting owner input during a common area renovation is the reduction or mitigation of complaints af ter the work has been done. By not soliciting feedback from owners, there is a potential fo r c o nf l i c t a n d f r i c t i o n w i t h i n t h e community to arise.

The best reason, though, is fairness. Common areas are just that ... common areas. Renovations affect ever yone, so those who want to be he ard shoul d at le ast b e g i ven the opportunity to share their opinion on how their home looks and feels.

These days, technology has given us so many ways of being able to quickly and cost- effectively solicit feedback, so why not give it a try?

4

What is your expected return on investment?

While most of the community might be focused on the visual appeal of a new common area, it is also important to consider that this is an investment.

A beautifully designed and executed common area project has the potential to pay for itself in terms of property value. Different designers and contractors will offer different value for their pric e, so ap pro ac hing the projec t with a purely from a price focused mindset may mean you are not comparing apples to apples. Because of this, a large common area renovation projec t should b e ap pro ache d w ith value in mind in addition to the price.

5

Did we plan enough?

According to KPMG, just 31% of projects came within 10% of their budget in the past three years. Inaccurate project estimates, project design errors, not

DelProperty_Condo_March_2018_torevise.pdf

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Taking time to do it right Investing the right amount of time into the planning process can potentially save thousands of dollars down the road, so it is worth working closely with your designer or contractor to answer their questions and ask plenty of your own. 1 Holden Johnson is Manager of Business D eve l o p m e n t a n d M a r k e t i n g a t Armourco Solutions.

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planning for change orders, administration errors, poor site management, and not hiring the right team can all be traced back to a root cause of poor planning.

Often, the longer a problem goes undetected during a project, the more it will cost to fix. Imagine committing to a beautiful new modern design, getting halfway through the project and find out that it does not adhere to the accessibility requirements defined in the Ontario Building Code or AODA.

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www.REMInetwork.com | September 2019 25

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Raising Expectations:

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“Balcony repairs aren’t anything you want to rush through or leave for later,” says Greg Devine, Manager, Business Development and Marketing, with McIntosh Perry. “The costs of leaving problems to get worse is one thing, but it’s more about protecting the safety of the unit owners who are using it” The most common causes of balcony issues are lack of regular maintenance and upkeep, which can not only pose significant safety risks both for residents, but those living or walking beneath the structure.

“Once the concrete starts to fall-off, the steel starts to accept compression forces, which it isn’t very good at resisting,” explains Devine.

“When that happens, the people and property below are exposed to dangerous conditions.”

Keep your head up No doubt, it’s essential to spot balcony damages in their early stages. They can arise as a result of exposure to the elements (e.g., rain, snow, heavy winds, etc.), resident activities, or simple age.

Common issues include: • Cracks, from drying, daily and seasonal changes in moisture and temperature, and people loads; • carbonation, resulting from a chemical reaction with carbon dioxide that raises PH level in the concrete; • rusting steel, due to rain seeping into the cracks or as a result of carbonation progressing to the steel; and • spalling, which occurs when rust occupies more space than steel and causes the concrete to suffer tensile stresses, which it is not as good at resisting, causing it to pop off.

Taking action Once balcony damage is potted, it’s time to act.

The first step is to get an assessment from a qualified engineer/building science specialist who can determine the condition of the balcony and the extent of the issue.

The next is to work with that specialist to develop a schedule of repairs and then begin to tender the work to a trusted contractor.

“There’s a lot that goes into balcony work that apartment residents and their owners don’t necessarily see,” notes Devine. “After that first condition assessment, we’re also preparing the specifications, drawings, and tender documents; taking care of contract administrations; and managing the project. It’s a cumbersom process, which is why it’s beneficial to work with a firm like McIntosh Perry, which knows what to expect and can see it all the way through.”

Avoiding stress Make no mistake: balcony repairs can be noisy.

Jackhammers are required to break damaged concrete, while grinders are needed to cut away damaged steel, motorized brushes are used to clean the remaining steel, and compressed air is applied to clear dust and debris.

Similarly, such repairs can also disrupt building users.

People and vehicles are not allowed to venture below the work, and the unit’s resident must make peace with workers coming and going from their balcony doors and windows unannounced.

In both cases, it’s essential to prepare impacted unit owners well before the crews show up and work with your project partners to alleviate any resident or staff concerns.

From there, says Devine, on-going communication and updates will go a long way towards keeping work

on target and expectations in check. “Any kind of repair work on a building is disruptive, so communication between the property manager and the residents is essential in keeping all parties in the loop and satisfied.

As for building owners, he adds, the best way to mitigate the burden of balcony repairs is to identify them early and make remediation a priority: “You can save a lot of stress by saving early for balcony repairs and monitoring their condition regularly through in-house and periodic independent evaluations.

Then, when it does come time to get to work, it’ll be a smoother path to a successful project.”

Greg Devine is Manager of Business Development and Marketing with McIntosh Perry, a leading Canadian firm providing a full range of consulting engineering and technical solutions for every stage of a project.

Learn more at www.mcintoshperry.com.

Upgrading the resident experiences Technologica l advancements are changing condo ow ners' expectations. “Always-on� residents

BY PETER PIETRZKIEWICZ

are finding value in tech-based services and looking to property managers to deliver great resident experiences via digital tools and systems. And as property managers seek to forge stronger, more personal relationships

with their residents, today's digital technology can help bridge those gaps.

28 CONDOBUSINESS | Part of the REMI Network

TECHNOLOGY

CONSULTING ENGINEERS

Freeing time, changing focus F o r m a ny d e c a d e s , t h e p ro p e r t y Building Science | Structural management industry has used limited technology for customer service and condo • Investigations management. And while property managers • Design, Specifications • Project Management currently use technologies such as landline • Performance Audits telephones and fax machines to serve • Reserve Fund Studies • Forensic Services their residents better, many are hesitant to • Litigation Support use digital technology in fear of losing the personal connection they’ve established throughout the years and the misconception that digital technology will add to their • Roofing • Glazing Systems workload.

• Exterior Walls In reality, digital technology can be used • Garage/Balcony Structures to improve the resident experience as it has • Waterproofing the potential to not only reduce expenses • Site but improve customer service by automating tedious and redundant processes.

Similarly, digital technology improves communication between property managers and condo residents, allowing managers to be transparent, well organized, and serviceoriented. By automating manual processes, digital technology enables managers to focus on delivering great resident experiences. By automating manual tasks, property managers Contact our Condo Service Team Today! (800) 838-8183 can become more efficient as they no longer have to spend time going through binders, spreadsheets, and emails for information.

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Maintaining a personal touch There is a growing sense among property managers that digital technology takes away from the personal touch, thereby causing customer service to deteriorate. That said, a personal touch will always be the cornerstone of every interaction in a condo community, even with the shift towards greater reliance on digital technology. Digital technology can never substitute face-to-face interaction and should never be used with such intentions. Rather, it should be used to give residents more meaningful ways to interact, be it to speak with raise issues with condo management, report repairs, or engage in their community.

Figuring out what residents want to improve customer service can be a complicated and daunting task. Today, however, property managers can easily leverage automated surveys and other forms using real-time communication to collect useful feedback from residents, which can help improve the resident experience.

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TECHNOLOGY

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What to look for in a digital solution Successful property managers strive to exceed resident expectations and focus on delivering superior resident experiences. Many digital solutions are available to help them do that; however, only a few are built with features that appeal to residents' modern lifestyles.

Consider the following when evaluating digital technology solutions: Accounting system integration: The solution should be able to synchronize resident data with the community’s accounting solution. This takes a mountain of work off everyone’s plates because access to the community will be automatically granted and removed as residents move in and out.

Easy-to -use dashboard: To maintain ef ficiency, ever yone on the proper t y management team should be able to get an overview of their community’s important administrative tasks, community events, and amenity bookings without having to click through multiple screens.

Resident database: The team should be able to see a summary of each unit's information, such as resident information, entry instructions, maintenance requests, deliveries, and amenity bookings.

Document sharing: Managers should be able to securely store and share all 1:41 PM communit y documents such as board minutes, forms, and by-laws online.

Amenity bookings: Residents want selfservice access to see the availability of a common area or clubhouse when it is convenient for them. If fees are associated with a booking, those should be able to be paid online.

Maintenance requests: Managers should be able to respond, monitor, and communicate the status of any maintenance item, with online notifications when a request is created, amended, or updated.

This helps the manager delegate tasks to their team or contractors and ensures that items don't fall between the cracks.

To exceed resident expectations and deliver great resident experiences, property managers need to take a thoughtful approach to selecting digital technology. The solution should be built with features that appeal to residents' digitallydriven lives. 1 Peter Pietrzkiewicz is a 20-year veteran in PropTech and creator of Concierge Plus, an online property management platform for highrise condos and HOAs/low-rise communities.

30 CONDOBUSINESS | Part of the REMI Network

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Pest control 2.0 Pest control can be difficult in multi-family properties, especially

BY SEAN ROLLO

as property managers have little to no control about the conditions in individual units that attract pests. However, the

pest control industry is continuously innovating, and pest control strategies are adapting to use more advanced technologies to help keep pests from eating away at your business. These new devices are all the buzz in the pest control industry and could help you manage common pests like bed bugs, birds, and rodents.

32 CONDOBUSINESS | Part of the REMI Network

TECHNOLOGY

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Sniffing around for bed bugs While canine bed bug inspections are not new, the techniques for training the dogs are ever-evolving. Bed bugs reproduce quickly, so it's crucial to detect and treat for bed bugs early. When there is a small, isolated C bed bug issue, it can be difficult to locate M the source of these pests. That is why pest Y control specialists use specially-trained canines to sniff out the presence of bed CM bugs before a full-fledged infestation occurs.

MY In cases where bed bugs cannot be spotted CY but there is a reason to believe that bed CMY bugs are present, specially-trained handlers bring bed bug dogs in to detect where these K bed bugs are hiding.

To make canines even more effective, handlers are constantly improving their training approach. These canines can pinpoint the source of bed bugs and can even tell the difference between the smell of a live or dead bed bug. Once the dogs identify where bed bugs are inside the building, pest control specialists are able to treat accordingly.

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TECHNOLOGY

Back off, birds Once birds settle down on your property, it can be challenging to get rid of them. Therefore, it is important to prevent pest birds from getting comfortable before they become an issue. To that end, some pest control specialists use special tools to stop birds from flying over or hanging around your property.

Today, there are optical devices on the market that can be used to deter birds from flying toward your building. The pyramid-shaped device can be placed on balconies and rooftops to prevent birds from getting close to the building. The device spins and reflects light from the sun, and these light beams disorient the birds, causing them to alter their flight path away from the building.

Goldview Property Management Ltd. will guarantee the highest standard of property management services. Our meticulous attention to detail, innovative and cost-effective solutions, advanced communication networks, and green technology have established Goldview Property Management as a leader in the industry for the past 30 years.

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Running off rodents Rodent monitoring is at the cornerstone of rodent control. New rodent monitoring devices can alert pest control specialists to rodent activity as it occurs, allowing for faster response times and more strategic control methods. Although these gadgets are not being widely used throughout the pest control industry, yet remote monitoring devices will be the future. These versatile devices can be placed in a variety of locations, including common areas, around the perimeter of a building and throughout the interior of your property.

Remote monitoring devices are a high-tech alternative to the traditional rodent trap. These devices send signals when rodent activity is detected, and there are a few different models currently in use: Magnetic connection: Devices using a magnetic connection to send signals are some of the more basic types of detectors. When the connection is broken, a signal is sent to your pest control provider.

3:38 PM sensors: Traps with touch sensors can detect when an object is Touch touching the inside of the trap. Once physical contact is detected, your pest control provider receives an alert that there is pest activity in the trap.

Motion sensors: Traps with motion sensors alert your pest control provider when motion is sensed inside the trap.

Heat sensors: Heat sensors inside some traps detect a change in temperature that indicates a rodent is present and sends a signal to your pest control provider.

Multiple sensors: Some devices are making use of multiple combinations of the aforementioned sensors.

In addition to responding to rodent sightings in a timely fashion, it is also important to routinely monitor your property for pest activity in between sightings. Remote monitoring devices make this process easier by alerting your pest control provider to any potential pest issues – even when a technician is not physically there.

To find out which pest control technologies are right for your property, talk to your pest management provider. Every property is different and faces unique pest control challenges. Therefore, it is important to establish a customized pest management program that incorporates integrated pest management (IPM) best practices. Your pest control provider can help you determine which of these technologies could work best to keep your business pest-free. 1 Sean Rollo is the Technical & Business Development Manager for Orkin Canada focusing on new innovations to the pest control industry. For more information, email Sean Rollo at srollo@orkincanada.com or visit www.orkincanada.com.

34 CONDOBUSINESS | Part of the REMI Network Jermark_QP_Condo_June_2016.indd 2

2016-06-24 8:59 AM

Know what is in your documents

The board of directors always has the power to make and amend

rules and regulations for the community on its own, without homeowner approval … right?

BY LYDIA CHARTRE & HUSCH BLACKWELL

Wrong. Although having

rule-making power is something that many community association boards expect to have (and often take for granted), the board’s rule-making power and authority often completely depends upon what authority is given by that association’s declaration and/or bylaws; and as we know, all associations’ declarations and bylaws are different.

www.REMInetwork.com | September 2019 35

LEGAL

Knowing what is in your association’s governing documents will keep you out of troubling lawsuits. The following case study comes from US, but nonetheless provides a good example of how certain language within the declaration or bylaws can catch a board unaware. Here, the board inadvertently exceeded its authority and got its hand slapped by the court.

In an ironic twist, the association board started the lawsuit as a simple, run-of-themill assessment collection action against a delinquent owner, but the owner’s counterclaims against the association quickly took center stage in the lawsuit.

Case in point In a 2019 c ase, S cot t v. Fall L ine Condominium Association, 206 A.3d 307 (Maine 2019), a condo association sued an owner seeking to collect a balance due on the owner’s assessment account.

The owner filed a counterclaim against the association in the suit, claiming that “all rules, regulations, and limitations affecting unit owners and their use of their units and of any common element at [the

“Knowing what is in your association’s governing documents will keep you out of troubling lawsuits.”

Association] not approved by a majority in interest by the unit owners” were invalid and unenforceable because the Board did not seek the approval of a majority of the owners before adopting the rules. The suit quickly became focused on the issue of whether the Board had authority to pass rules without owner approval, instead of whether the owner owed assessments.

In his pleadings, the owner pointed out that the Association’s bylaws stated that, “Rules and regulations concerning the use of the units and the common areas and facilities may be promulgated and amended by the Board of Directors with the approval of a majority in interest of the unit owners.”

36 CONDOBUSINESS | Part of the REMI Network

The Association, in rebuttal, argued that there was another provision in the bylaws that gives the board alone the power to make rules, which stated, “The Board of Directors shall have the powers and duties necessary for the administration of the affairs of the Condominium Association and shall do all such acts and things except as by law or by the declaration or by these bylaws may not be delegated to the Board of Directors by the unit owners.

Such powers and duties of the Board of Directors shall include, but shall not be limited to, the following: … (e) Adoption and amendment of rules and regulations covering the details of the operation and use of the Property.” 1

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LEGAL

Canadians weigh in on mortgage fraud M i l lennia ls a re more l ikely BY MATT BRADFORD to f ib on their mor tgage applications, while a majorit y of Canadians believe mortgage fraud is on the rise. These are some of the findings from a survey by Equifax Canada on current perceptions and trends around mortgage fraud.

Mortgage fraud occurs when a homebuyer or one of their real estate partners (e.g., mortgage broker, real estate agent, or lawyer) misrepresents or lies about information to obtain a mortgage that would not have been approved otherwise. Equifax’s survey asked 1500 Canadians from across the country to share their experience with mortgage fraud. Highlights from the report include: • 23% of Millennials believe it’s acceptable to inflate their annual income when applying for a mortgage (double the national average).

• 19% of Millennials surveyed admitted they were not entirely truthful on a credit or loan application, compared to the 12% national average); • 53% of all survey respondents believe mortgage fraud is a growing problem; • 51% of all surveyed respondents indicated they feel mortgage fraud is more likely to be perpetrated by organized crime.

38 CONDOBUSINESS | Part of the REMI Network

• 16% think mortgage fraud is a victimless crime (a legal offense to which all parties consent and no party is injured).

“It’s concerning that so many younger adults we surveyed believe it’s OK to inflate their income to purchase the home they want,” said Julie Kuzmic, Director of Consumer Advocacy at Equifax Canada.

“Fudging income numbers when completing a mortgage application is fraud. It also becomes a slippery slope for these people who may end up stretching themselves too thin.”

“What some may see as a lit tle white lie during the mortgage application process could have legal consequences or become a ver y hard lesson for people to learn if they c ann ot ke e p u p w i th their m o r tg a g e p ay m ent s ,” she continued.

The survey also collected feedback on the challenges of purchasing a home in Canada. Notably, it found that 61% of consumers believe foreign investments in real estate are the principal cause for higher home prices; while 78% of consumers surveyed think the federal government should help homebuyers in some way. 1

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Getting the

Jump on

Condo Repairs The advantages of proactive maintenance

When it comes to condo maintenance, planning ahead can pay off. Detecting and addressing minor issues on a building’s exterior is a proven way of significantly reducing the cost of future repairs and avoiding resident inconveniences. Not to mention, building envelope repairs can often contribute to energy savings, while ongoing preventive maintenance to the building envelope will extend its service life.

The following is a run-down of six key building envelope inspection areas and simple preventive maintenance actions that can be undertaken in preparation for winter and beyond.

FOUNDATION WALLS • Raise the height of the grading around the foundation walls where they are settled to promote drainage away from the building. This will reduce the risk of leakage and deterioration of the foundation walls.

• Check that roof downpipes and troughs are clear, connected, and directing water away from the building.

• Use urea or calcium magnesium acetate de-icing chemicals and avoid the use of calcium and sodium chlorides which can result in accelerated deterioration to concrete and masonry at grade level.

• Test and check that sump pumps are working properly and are discharging water away from the building.

EXTERIOR WALLS • Properly winterize through-the-wall air conditioner sleeves with insulation and air sealing measures. Remove air conditioner units from windows.

• Look for wetting patterns, efflorescence (salt deposits), and deterioration below the corners of metal window sill flashings. These are indicators of poor rain deflection at the ends of the sills.

• The installation of drip deflectors at the ends of window sills promote water flow over the sills and not on the walls.

• At areas of deterioration, look for wetting patterns and details causing poor deflection of rainwater. Correct poor rain/snow melt deflection details.

• Install metal drip flashings over brick window sills and at top of masonry walls without flashings since the brick will typically deteriorate much sooner without this protection.

SEALANTS (CAULKING) • Regularly replace failed sealants (caulking) where provided to control water penetration and air leakage.

Sealants should perform adequately for 10 to 15 years when proper materials and installation practices are employed.

WINDOWS AND DOORS • Regularly replace worn and damaged weather-stripping at door and operable window perimeters. Maintaining tight air seals is necessary to control air leakage and drafts which in turn reduces heat loss and energy consumption. As well, tight seals also control rain water penetration.

• Ensure that supply heating vents are open and clear of obstruction so that warm air can flow over window and door surfaces to reduce the

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SLOPED ROOFS AND ATTIC SPACES • Arrange for an experienced contractor to access the attic space to seal pipe, exhaust duct, wiring and electrical box penetrations at the level of the drywall ceiling and air/ vapour barrier. This practice will reduce air leakage from the building interior into the attic space thereby reducing heat loss and energy consumption. These measures will also significantly reduce the risk of ice damming along the roof eaves.

• Check the level of insulation. The Ontario Building Code requires a minimum thermal resistance for attic insulation. Although you are not required to upgrade to meet the current code, however it may be a good time to consider adding to the existing thickness of the insulation. potential for condensation during cold temperatures.

• Avoid leaving windows and doors open during cold weather. Try to use other means of ventilation (e.g., kitchen and bathroom exhaust fans) when a condo unit does not have an automatic mechanical ventilation system. This is particularly important for units with hot water heating and radiators below windows to avoid the potential for burst pipes. If an owner/tenant turns an insuite thermostat on low and leaves a window open there is an increased risk for a costly pipe burst.

FLAT ROOFS • Remove debris and vegetation at roof drains.

Be sure to remove debris at the level of the waterproofing membrane as well for protected membrane systems.

• Have a qualified contractor and/or consultant to assess the condition of the roofing system every year or two.

• If your roof has recently been replaced, ensure regular warranty inspections are performed to ensure the warranty is not voided.

• Check that adequate venting at the soffit and roof vents is provided and that the soffit baffles are not blocked by insulation.

Proper venting will extend the life of asphalt shingles and reduce the risk of ice damming provided air sealing at the level of the ceiling is done first.

• Install downpipe extensions from upper to lower roofs to avoid accelerated shingle deterioration from increased water runoff and ice damage.

As always, it pays to seek help for any condo project. For successful results, partner with qualified contractors and consultants who can leverage their experience to assist with assessment and repair of the more complex issues.

Dave Moore is Project Principal, Vice President (Client Service & Development) with Pretium Engineering Inc. (www.pretiumengineering.com), a specialist building science and structural consulting engineering firm that provides high quality, evidence-driven services. Contact a local office to see how “Working Together, Better” can work for you.

NEW AND NOTABLE

New York has the world’s tallest residential building Central Park Tower in New York has topped out at 1,550 feet, making it the tallest residential building in the world. Located on West 57th Street, along the corridor known as “Billionaire’s Row,” Central Park Tower is the definitive New York skyscraper, offering endless views, exquisite architecture, gracious layouts and an unprecedented level of service.

“Central Park Tower is the pinnacle of development in New York and around the world,” said Gary Barnett, founder and chairman of Extell Development Company.

“We would not be able to offer this level of design, quality and service without the contributions from the world’s most talented architects, engineers and designers.”

Designed by top architectural firm Adrian Smith + Gordon Gill Architecture (AS+GG), Central Park Tower’s beautiful facade features combined elements of glass, satin-finished stainless steel, and light-catching vertical and horizontal details that accentuate the interplay of texture and light. At a height of 300 feet from the street, the tower cantilevers to the east, creating Central Park views for all north-facing residences.

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The grand residential interiors are designed by Rottet Studio, whose projects include the St. Regis Hotel in Aspen and the Loews Regency Hotel in New York.

Rottet Studio’s trademark level of detail and unique custom finishes throughout Central Park Tower create a highly sophisticated environment. The 179 ultra-luxury two-to-eight-bedroom residences begin on the 32nd floor of the building and range in size from 1,435 square feet to over 17,500 square feet.

Located within the tallest residential tower ever built will be one of the world’s most exclusive private clubs, Central Park Club. At ground level will be Nordstrom’s first full-line 300,000 square foot department store.

Lendlease, one of the world’s largest property, infrastructure, development and construction management firms, served as construction manager for Central Park Tower. The project is scheduled to complete in 2020.

KITEC REPLACEMENT Complete package available including drywall and paint.

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Replaced with uponor which provides a 25 year warranty on pipe and remedial damage.

Complete Building Replacement Recirculation Mains Replacement

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Distribution Mains

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Valve Replacement

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Balancing Valve Installation

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416-789-7611 www.REMInetwork.com | September 2019 43

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