Canadian Apartment Magazine August 2008 Issue by Rick Evangelista

C A N A D A ’ S O N LY N A T I O N A L P U B L I C A T I O N F O R A P A R T M E N T O W N E R S A N D M A N A G E R S

Skyline

2008 Movers & Shakers MORE THAN JUST SMART – IT’S A BREAKTHROUGH TECHNOLOGY

Residents no longer have to buy or hoard the correct mix of change for their laundry, or hunt down the superintendent for parking passes. They can conveniently load their smart cards, self-issue visitor parking permits “24/7”, and reclaim their visitor parking lots from trespassers. They feel safer knowing there is no cash in the laundry room for burglars and feel safer knowing that access to the underground garage is better controlled.

We back those investments with world class commercial equipment and North America’s only award-winning, ISO 9001-certified, On Time, Every Time® service and payment reliability. Coinamatic reduces the cost and risk of building ownership while improving cash flow and property values.

BANNER-STYLE AD

Purpose-built by Coinamatic for the multi-housing industry, SmartCity ® provides a convenient, easy to use, one card solution for many of your residents’ most annoying problems.

At Coinamatic, we invest in innovative, purpose-built technologies for property owners and their residents.

Focused on developing, capturing, and controlling small cash payments, Coinamatic works hard to provide a superior resident experience that helps consumers spend more. We help our clients attract new residents. Best of all, the SmartCity architecture and our commitment to 600,000 cardholders ensure this card program will continue to grow, this year, and well into the future.

Revenue Management: Effective Strategies for Maximizing Rent

SIZE AS: 10.875” X .125

Underinsurance – How Confusing

Websites Offer Accessible Marketing Options

IT’S CLOSER THAN YOU THINK...

Residents may not thank you for Technology, but they will reward you for Innovation that makes their lives safer, simpler and more convenient.

Multi-Unit Residential Mortgages

Grounded in Fundamentals

TD CANADA TRUST – MULTI-RESIDENTIAL MORTGAGES DIVISION

VOLUME 5 / NUMBER 3 / August 2008

Reach 40,000 decision makers in the property & facility management industry with a listing package.

Book Now! Canadaâ&#x20AC;&#x2122;s Most Widely Read Condominium Magazine

Vol.24 #4

Winter 2008/2009 | Vol. 2 No. 4

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To create a listing that will make buyers choose you contact Melissa Farrell at 416-901-8192 or melissaf@mediaedge.ca

Making a Difference Selling Apartment Buildings Across Canada Over 22,000 Units Sold in 10 Years in 27 markets!

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Completed Transactions In Belleville, Brampton, Brantford, Burlington, Chatham, Cornwall, Edmonton, Gatineau, Hamilton, Kingston, Kitchener, Lindsay, London, Mississauga, Montreal, New Westminster, Niagara Falls, Oakville, Oshawa, Ottawa, Owen Sound, Richmond, Sarnia, St. Catherines, St. Thomas, Toronto, Vancouver

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CHOOSE ROGERS AND GIVE YOUR TENANTS THE HOME THEY’RE LOOKING FOR. When you choose Rogers as your communications and entertainment provider, you’re choosing to partner with a leader. Through our continued partnership, Rogers will carry on delivering excellent value for your tenants.

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BENEFIT FROM CHOOSING MULTIPLE ROGERS PRODUCTS – HOME PHONE, WIRELESS, INTERNET AND DIGITAL CABLE. Trademarks of Rogers Communications Inc. or of Rogers Cable Communications Inc., used under license. ®YAHOO! is the trademark of Yahoo! Inc., used under license. All other trademarks are the property of their respective owners. © 2007 28-12

C A N A D A ’ S O N LY N A T I O N A L P U B L I C A T I O N F O R A P A R T M E N T O W N E R S A N D M A N A G E R S

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Skyline, a Guelph-based real estate company, has embarked on a rebranding process aimed at making it easier for investors to understand the company’s multi-faceted portfolio. In addition to its 3,700 apartments the company also owns 750,000 square feet of commercial space.

n innovative, purpose-built wners and their residents.

with world class commercial erica’s only award-winning, e, Every Time® service and matic reduces the cost and while improving cash flow

capturing, and controlling oinamatic works hard to ent experience that helps We help our clients attract the SmartCity architecture 00,000 cardholders ensure inue to grow, this year, and

Underinsurance – How Confusing

Revenue Management: Effective Strategies for Maximizing Rent

Websites Offer Accessible Marketing Options

contents... 10 Card Payment makes Laundry Easy A card payment system offers convenience to residents and flexible pricing options for building owners.

14 Toronto Hydro Offers Incentive Program Energy-efficient retrofits reduce demand for electricity and reward building owners with lower utility bills.

18 Websites Offer Accessible Marketing Options About 73 per cent of Canadians access the Internet on a daily basis. A welldesigned website lets you to interact with potential customers.

22 Underinsurance – How Confusing If your building is not insured for its full replacement cost, you risk being under insured in the event of a partial loss.

36 Revenue Management: Effective Strategies for Maximizing Rent Revenue management tools standardize pricing methods, track the competition and automatically calculate new market rents.

38 Electrical Submetering 101 Submeters allow a user-pay system where tenants pay for the electricity they use. That creates an incentive to conserve electricity.

42 Plumbing Maintenance Equals Energy Savings Regular maintenance on your plumbing systems can reduce your utility and energy bills.

46 Multi-facts 50 Regulations

6 Canadian Apartment Magazine

Itâ&#x20AC;&#x2122;s business as usual at First National

A wide variety of mortgage products available at very competitive rates We are committed to helping you find the best financing solution for your property. Our product line up includes: >

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Vancouver

Calgary

604.681.5300 800.567.8711

403.509.0900 888.923.9194

Toronto

416.593.1100 800.465.0039

Montreal 514.499.8900 888.499.1733

Halifax 902.452.0776

editor’snote

Explosion Highlights Need for Emergency Planning

A hydro vault explosion, which forced the evacuation of a Toronto-area apartment building, brings home the need for an emergency plan and an up-to-date insurance policy. While the 22-storey building remains structurally sound, the blast did heavy damage to the underground parking levels. All of the tenants were forced to evacuate the building. Many had only the clothes they were wearing. Adding to the problem, the explosion sent soot through much of the building making it unsafe to for tenants to return to retrieve their valuables. Even though police were guarding the building, thieves managed to sneak past security and break into several of the units. Since electricity to the building has been cut off, the contents of all the refrigerators spoiled. Most of the tenants have been forced to move in with relatives or live in city-provided emergency shelters. It is unknown when they can return to the building. We see from these events that while a concrete highrise building can’t burn down, or otherwise be completely destroyed, the damage in the event of a fire or explosion can be extensive and costly. In other news, the Federation of Rental-Housing Providers of Ontario (FRPO) has launched its Certified Rental Building Program in the Greater Toronto Area. The quality assurance program is the first of its kind in North America and is designed to promote professionalism in the industry and to help tenants identify well-managed buildings. FRPO’s goal is to have 500 rental buildings certified this year and 1,500 buildings certified by the end of 2009. Our cover story profiles Skyline, a Guelph-based real estate company that is growing at a rapid rate. The company has over 3,700 apartment units in its portfolio. They recently announced the purchase of 474,000-square feet of commercial space from The Co-operators, a Canadian insurance company. The buildings will bring the company’s commercial portfolio to 750,000-square feet.

Randy Threndyle Editor randy@hushmedia.ca

Quoteworthy

“In the end, we want investors to be a part of the Skyline brand regardless of which investment they are in, thus the reason we simply refer to ourselves now as Skyline.”

8 Canadian Apartment Magazine

– page 34

PUBLISHER Kevin Brown

ASSOCIATE PUBLISHER Joshua Fulton

EDITOR Randy Threndyle

SENIOR DESIGNER Annette Carlucci

DESIGNER Ian Clarke

CONTRIBUTING WRITERS Paul Abrams Peter Altobelli Dick Casey Robert Heylar Andy Schwartze H. Victor Seeman

Cover photo by Jason Leonard For sales information call (416) 966-4874 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 2008 Canada Post Canadian Publications Mail Sales Product Agreement No. 40063056 ISSN 1712-140x Circulation ext. 230 Subscription Rates: (GST Included) Canada: 1 year, $44.94 2 years, $80.79 Single Copy Sales: Canada: $8.00 Reprints: Requests for permission to reprint any portion of this magazine should be sent to Josh Fulton 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. 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

Rent, Maximized. Are you charging the right rent? Yardi’s Revenue Management system, part of the Voyager™ Residential Real Estate Management Suite, eliminates the costly guesswork of determining your rates manually. Using area occupancy data, rent forecasts, and market survey information including competitors’ pricing, Revenue Management automatically calculates the best rent for each property in your portfolio—so you can fill your units, improve retention, and optimize your revenue.

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

communityfacilities

Card Payment makes

Laundry Easy Card payment system offers convenience to residents and flexible pricing options for building owners. By Dick Casey

Multi-residential community laundry rooms are all about comfort and convenience. Developers, who understand this and view the spaces as amenities to attract and retain residents, have taken steps to make them more attractive by adding new lighting and other decorative touches. Some have even placed them close to other amenities for greater convenience and to offer residents the opportunity to multi-task. Convenience also has come through high quality commercial equipment. Property owners have worked closely with their route operators to provide a variety of washer and dryer options, perhaps even larger multi-load equipment. Residents no doubt appreciate the time savings this equipment delivers, as well as its efficiency. Still there is image work to be done. Ask residents what comes to mind when they think about a community laundry room and many will conjure an image of lugging bags or pockets full of heavy change, along with their baskets and laundry supplies. Far from the image of convenience you want for your laundry. Thatâ&#x20AC;&#x2122;s why itâ&#x20AC;&#x2122;s important to choose a payment option that further reinforces the focus on ease of use for residents. The greater the convenience, the greater the amenity value. Owners will have a variety of options including standard coin-operated activations (see above for the lugging of change image) or central payment 10 Canadian Apartment Magazine

We’ll Treat It Like It Was Ours! Your properties are important investments to be handled with care and respect. You can rest assured, MetCap Living knows this first hand. With over twenty years of proven success, the MetCap Living team will ensure your ‘little nest egg’ is safe, allowing you to breathe easy, as well as relaxed and free of concern. We know your world, because we live it on a daily basis. Marketing, leasing, accounting and site management — in fact, anything and everything you require to provide a better living experience — MetCap Living can deliver. We’ll tailor our expertise and well established infrastructure to meet the specific needs of multi-unit properties. Think of us as a breath of fresh air. Always ready. Always professional.

Trust MetCap Living–We’ll be there! To find out more about our property management services please contact Anne Meinschenk, Director of New Business Development, MetCap Living 416-993-4305 or anne.meinschenk@metcap.com

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communityfacilities

“Let’s face it; we live in a cashless society. People are opting for credit and debit cards as their primary payment options, both for ease of use and safety.” systems, where money is deposited in a centralized unit and customers choose the machine they will use. However, for developments focused on offering the best possible amenity value to residents, I’ll argue card payment systems are the way to go. Let’s face it; we live in a cashless society. People are opting for credit and debit cards as their primary payment options, both for ease of use and safety. Consider your large, soughtafter demographic of young, urban professionals. Through their college years, they likely never needed anything but their college ID card to do business (including their laundry chores) on campus and, in many cases, even off campus. The concept is simple. Upon signing a lease, residents are given their laundry card (basically similar to a credit card). When they need to do their laundry, they just add value to the card at a terminal in the laundry. From there, they insert the card into a machine to start their wash or dry cycle. Value is automatically subtracted from the card. Advances in card technology have made the card even more convenient as your residents can use their credit or debit cards to add value. In addition, residents stay up-to-date by seeing the beginning and ending balance of their card on the control when starting their wash and dry cycles. Benefits to residents are the convenience the cards deliver in not forcing them to carry cash. That carries a safety factor and many card users appreciate the ease in budgeting for the laundry. They can simply add the proper value to the card at the beginning of the month and not have to worry about having change or the cash to do their laundry when they need to. Owners gain the advantage of far more flexible pricing, enabling them to increase vend rates by smaller increments as their own costs (water, gas, electric) increase. For instance,

rather than waiting until costs justify a full 25-cent vend increase, owners are able to raise the price by as little as one cent. This enables you to manage the operation more efficiently. In addition, card payment systems help build customer loyalty — cards can only be used in your laundry equipment. Pairing card systems with high-feature microprocessor controls completes the efficiency and convenience equation. Today’s controls allow cycles to be programmed to meet the individual needs of the property being served. Owners, or in most cases the route operator, can set multi-level vend pricing, for instance a hot water wash, because it costs owners more, could be priced higher at $1.25 versus $1 for a warm wash and 75 cents for cold. Continuing with the convenience theme for residents, controls offering additional washes or rinses (for additional vend prices) can be desirable as they give residents the option to tailor their wash cycles to their own specific needs. With these high-feature controls, residents, utilizing a variety of combinations of bonus prewashes, washes, rinses, gain the highest level of control of the laundry process. Cutting-edge controls and activations can put your community laundry room on an equal footing with the vended laundries in your area. And you already have an advantage over the vended laundry by having your washers and dryers on-site — residents are just an elevator ride or a few steps away from the equipment. This advantage is further amplified when you consider our reluctance to venture out in inclement weather. When it comes to laundry, all of us share the same goal — we want to get the task completed as fast as possible in the nicest environment. Investors in vended laundries know this. If owners of multi-residential developments want to be successful with their laundries, they will as well. That means viewing the Laundromat down the street as your competition and adopting practices, controls and activations to make your community laundry more desirable. In the process you’ll make the property as a whole more desirable, enabling you to better attract and retain residents. CA M

Dick Casey is director of multi-housing sales at Alliance Laundry Systems, the world leader in manufacturing commercial laundry equipment. Casey has more than 35 years of experience in the laundry industry.

12 Canadian Apartment Magazine

Builders and architects: If you build above Code, and your project (a new construction, a new addition or a major renovation) incorporates energy efficiency measures that reduce electricity use, you may be eligible for design assistance and financial incentives from the High Performance New Construction Program (HPNC). The more your project saves in electricity, the greater the incentives available. Not only can the incentives offset the cost of incorporating energy efficiency measures, your building will have lower long-term operating costs, improved marketability, and will provide a more comfortable environment for occupants. Incentives are available for two different project categories: Prescriptive incentives are based on standard efficiency measures and calculated using Lighting, Motors, Unitary Air Conditioning, Transformers and Agribusiness worksheets. Custom incentives are based on modelling software results used to determine the best energy-efficiency measures to incorporate in a new building or renovation. Eligible projects include office buildings, industrial buildings, retail spaces, multi-unit residential buildings, affordable housing complexes, colleges, universities, schools, hospitals, long-term care facilities, hotels, and motels. (Single-family dwellings are not eligible.) Please contact HPNC today at 1-888-OPA-HPNC Visit www.hpnc.ca to download an application.

Design it right

An official mark of the Ontario Power Authority.

Build it better

Reap the rewards

energyconservation

Toronto Hydro Offers Incentive Program

Energy-efficient retrofits reduce demand for electricity and reward building owners with lower utility bills.

In todayâ&#x20AC;&#x2122;s world of rising energy prices and global climate change, electricity conservation is an essential strategy for those seeking to improve the profitabilityandreducetheenvironmental footprint of their businesses. The Business Incentive Program (BIP) from Toronto Hydro-Electric System Ltd. (Toronto 14 Canadian Apartment Magazine

Hydro) encourages and rewards energyefficient retrofit projects to give building owners and managers an even greater return on their investment. Businesses use most of the electricity in Toronto and they can do a lot to reduce their demands on the grid. To support them, Toronto Hydro launched the

Business Incentive Program. Through BIP, Toronto Hydro offers financial incentives to owners and operators of buildings who implement measurable energy-efficient upgrades or renovations. These include: â&#x20AC;˘ Multi-use buildings â&#x20AC;˘ Hotels and restaurants

energyconservation

“We designed this program to kick-start real electricity conservation activities in this small-to mid-size commercial market.” • Offices and retail • Institutional buildings • Industrial facilities and • Multi-residential buildings. (Except for the last two business types, there is requirement that the buildings involved be less than 25,000-square feet.) “We designed this program to kickstart real electricity conservation activities in this small- to mid-size commercial market,” explains David O’Brien, President and CEO of Toronto Hydro Corporation. “The Business Incentive Program encourages those that are considering a renovation to their buildings to do so with energy efficiency in mind. It provides financial incentives to property owners to reduce their electricity use now. This type of program is critical to reducing electricity loads in Toronto. The commercial sector uses about 80 per cent of the power in the city. There’s a lot of room to conserve, and in doing so businesses improve their bottom lines by reducing their hydro bills, not to mention the environmental benefits that will result. They save on the retrofit and they’ll save in the long term.” Eligible projects include: • Lighting retrofits and controls • Equipment replacement such as chillers and fans • HVAC redesign • Building envelope upgrades • Variable speed motor controls • Combined heat and power • Fuel switching • Solar photovoltaic, and • Solar water heating.

16 Canadian Apartment Magazine

For most building owners, lighting is the easiest place to look for savings, while cooling is the most effective. Depending on the category, projects that achieve a greater electricity savings may receive a higher incentive rate, ranging from $150/kW to $350/kW. “Not only is it a wise economic decision to reduce electricity demand, it’s a wise environmental decision. As more businesses reduce their peak demand loads, Toronto Hydro is able to cut back the purchase of electricity during peak demand hours, which means we’re using less electricity from greenhouse-gas-emitting sources like coal,” says O’Brien. The economics of electricity conservation are already attractive says Brian Gold, a Toronto-based energy consultant. “One of our clients replaced 73 fixtures in their underground parking garage. They went from 132-kW electricity usage, 24/7, down to a total of 56 kW. They’ll save over $5,800 a year, with a return on investment of 1.5 years,” he says. Toronto Hydro says, the overall objective of BIP is to help make Toronto a more energy-efficient city and support overall electricity reliability. The goal for this program in 2008 is a reduction of approximately 6.6 megawatts. “BIP made it possible for S&C Electric Canada to install a lighting system that uses less energy and has reduced our electricity bill,” says Keith Higgins, Director of Facilities for S&C Electric Canada Limited. “The project replaced a T-12 fluorescent lighting

system (from the mid 1970s) with a T-8 fluorescent system in a 24,000-squarefoot facility. This resulted in a savings of 60 kW, which reduced our electricity bill in kWh and demand charges. BIP also improved the payback period of this investment, which allowed us to move forward.” For many buildings, heating and ventilation consume the greatest percentage of electricity. An upgrade to a high-efficiency chiller for a 10,000-square-foot building could save approximately $30,000 in total energy costs and reduce peak demand by approximately 13kW. Energy efficiency improvements to building envelopes can also significantly reduce electricity costs from cooling. New technologies and materials in doors, windows, frames and insulation can reduce kilowatt usage, as well as make the buildings quieter. Architects, engineers and contractors who are involved in building renovations can use the incentives of the BIP to leverage their clients’ budgets by incorporating additional electricity-saving measures. A Globe and Mail article on energyefficient renovations cited a company that reprogrammed its parking garage fans so they ran only when needed. The low-cost easy retrofit delivered savings of over $67,000 per year. CAM Information in this story was provided by Toronto Hydro-Electric System Ltd. For more information on the Business Incentive Program, visit www.torontohyrdo.com/bip.

Does Your Laundry Room Attract Residents? Huebsch helps properties provide the exceptional laundry services residents desire in three easy steps. Follow the steps below and watch your laundry save energy and become an amenity residents love to utilize.

Step 1: Choose your level of energy and water savings. High Efficiency — '08 Topload Washer

Ultra High Efficiency — '08 Horizon® Front Control Washer

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Step 2: Choose a user-friendly control. NetMaster ® Control (NMC)

Micro-Display Control (MDC)

• Fast cycle turn — 30 minutes or less • Displays cycle time countdown to maximize cycle turns • Hot, Warm or Cold temperature selections

• Fast cycle turn — 27.5 minutes or less • Programmable vend price in .25 increments • Guides user from start to ﬁnish • Superior cleaning with full-ﬁll wash and rinse followed by a final spray rinse

Step 3: Add the technology. Micro-Display Control

NetMaster ® System

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Non-resetable cycle and coin counter Electronic diagnostics Dryer top-off feature Coin or card vending

ct Contaay! Us Tod

*Savings compared with '06 topload washer models.

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www.huebsch.com/property

Commercial Built to Last Longer ®

what’s hot & what’s not

Websites Offer Accessible Marketing Options

By Robert Helyar

About 73 per cent of Canadians access the Internet on a daily basis. A well-designed website lets you to interact with potential customers.

As a business owner, one of the biggest challenges is getting your name and brand known to perspective customers and using that brand awareness to generate new business. Ask yourself: • What is the best way to go about advertising? • What is the most effective in terms of cost and results? • Who am I targeting and what information do they need to peak their interest in my business? The answers to these questions vary by industry and budget. However, whether you choose to run magazine and newspaper ads, or giant billboards, one thing remains

18 Canadian Apartment Magazine

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“A website is the single most informative tool available for marketing today.” constant. People need to be able to find more information easily—especially in the real estate and condo business. Whereas these print mediums can reach many people, especially in a large city, they work best with less textual information and more visual stimulation—something to catch people’s attention. Their goal is to lead the customer to find more information through physical visits, phone calls, or websites. Physical visits are often a last resort of potential customers due to hectic lives and work. It takes too much time and effort to visit a place just to find more information that may not be anywhere near what the customer wants. Phone calls are easier, but have time restraints as most rental offices only answer between 11 am and 7 pm—when most people are at work. Of these options, a website stands as the most accessible in time and information. Open all hours of the day with the ability to hold any information possible, including registration forms and rental applications, websites offer the most interactivity with potential customers. This interactivity combined with the visual design possibilities has the potential to show customers more than just factual information. It allows you to draw clients in with a style, a brand, or a feeling. Not to mention that in this information age, having a well designed website exudes professionalism and gives customers peace of mind when it comes to the validity of your business.

More Canadians Using the Internet Moreover, according to Statistics Canada, 73.2 % of all Canadians use the Internet daily, for everything from e-mail (63.1%) to electronic banking (35.2%) to general browsing (52.1%). That is nearly three fourths of the Canadian population accessing a single medium daily, for a large variety of purposes. In 2003, only 3.9% of Canadians shopped online for real estate. By 2005, 20 Canadian Apartment Magazine

that number had risen to 16.2%. That’s more than four times the amount of shoppers in only two years. While there are no exact numbers on the amount of real estate, rental, and leasing businesses that have websites, in 2007 over 72% of this industry uses e-mail, implying these industries understand the need for online communication in today’s society. A website is the single most informative tool available for marketing today. For its cost (which can vary by features and design), websites offer the most flexibility for the business, from content management systems (CMS) to online sales and rentals (e-commerce) to simple contact forms that give customers the opportunity to request more personalized information. They also offer easy updates and changes. In addition to the base website, with search engine optimization (SEO) and pay-perclick advertisements, your business can be easily found by anyone, anywhere, at any time—giving you a huge audience of prospective customers. At the end of the day, a website is not really an option in today’s society. It is as necessary as a sign on the front door or a phone number. In this fast-paced world, where people use their Blackberries to check their e-mail while eating lunch on the way to a meeting, there just isn’t time for phone calls and physical visits until a person is sure that the business may meet their needs. The easiest way to ensure a potential customer feels you meet their needs is to have an online presence with style, functionality, and information they can refer to and research. That pushes your business to the forefront of their mind.

image and that you are with the times. For example, a purely HTML text website that looks like it came straight out of the early 1990s is not going to help your business image. In fact, it may even drive people away, giving the impression your business is old and dated— definitely not a good thing for a condo building. This does not mean, however, that you need to pay for an entire site to be animated in Flash with every bell and whistle you can find. There is always a happy medium that fits both your budget and your style. The more unique your site, the more you will stand out in your customer’s mind. This is where a creative consultant can help. In addition to designing a site, they can help you understand the many options available to promote your business online. From blogs to galleries and brand marketing to audience experience, creative consultants do the same thing for your business as financial advisors—only instead of your money, they deal with your image. They also take the time to listen to your needs and give you individual creative attention, as opposed to many online template website design companies that have cookie-cutter styles. In short, creative consultants take a huge load off of your shoulders when it comes to marketing your business. So in answer to one of the original questions posed, a creative consultant is the best way to go about marketing your business and a website is the most effective in cost and results, especially when combined with print and other media. Make your business accessible to more people quickly and easily with a website and watch your sales increase. It’s a win-win solution. CA M

Professional Online Presence Now that you understand the need for a website, there are some things to consider. It is extremely important that this online presence look professional and stylish. This is not just for pretty, but to show your business takes pride in its

Robert Helyar is the President of DALA Group of Companies, a leasing and marketing company in the multi-residential industry. For more information visit his website www.dalainc.com or email info@dala-inc.com.

Leader in Apartment & Common Area Renovations

Would Like to Congratulate

2008 MOVERS & SHAKERS

insurance

Underinsurance – How Confusing If your building is not insured for its full replacement cost, you risk being under insured in the event of a partial loss. Insurance should be based on today’s construction costs. By Andy Schwartze

Now the only way they can stabilize what to charge is I just love to talk to property owners, especially those who are quick to tell me just how much they want their building insured by demanding that all customers follow a certain common denominator. If each insurance customer could pick and for. Many have it figured out using a very simple formula. Estimate what the property will fetch on the open choose an insurance amount, then similar buildings with market, back out the assumed value of the land and, presto, different owners would be insured for different amounts. you have a valid insurance amount. Of course, the really Naturally, each owner would want lesser losses to be fully sharp financial minds are a bit more scientific. They find paid out. Bear in mind that we don’t see many total losses a way to mix their version of construction costs, per suite any more. The owner with the lesser insurance amount or per square foot, then deduct some form of estimated would be benefiting, as he paid a lower premium than his soft costs, stack that up against an amount arrived at by neighbour with a similar building. working the cap rate backwards and now you’ve got something meaningful. Pick the lower Andy’s Tip Off number, of course. If you are soliciting insurance proposals from any insurers, insist on a copy of the Insurance companies are not the “submission” that the broker has prepared and approve the list of insurers to least bit interested in the financial whom this “private” information is being sent. The broker is your representative, wizardry of the revenue producing thus errors are your responsibility. Errors can void an insurance contract. real estate market. They care only about the cost of repairing damaged For that reason, we have under-insurance (known as property, and they know that this can only be paid for at today’s labour and material costs. “But my building could never burn co-insurance) penalties in these contracts. Insure the cost down” I am constantly reminded. “Why would I buy insurance of replacing the entire building or risk the application of a penalty to the amount you are claiming for that unfortunate for an amount I would never need?” ask the incredulous. My stock answer is to pose a question in return. If you only kitchen fire. That means the cost of construction today and no wish to partially insure the rebuilding cost of your property, other standard will do. Fortunately for insurance companies, which part do you wish to insure? Only the first five storeys? insurance appraisal software is becoming commonplace and where the insured amount is seriously offside, insurers are Perhaps only the back half? If we buy a load of lumber, we know how much starting to force an adjustment to a more realistic value. Ignore wood we are getting and we can figure out the cost per the warning and the file may be noted for the next claim. CAM unit. The seller knows his costs and adds his margin. Insurance companies wish their world was as simple Andy Schwartze, BSc, MBA, CIP, is an insurance broker as loading up their predictable costs. Their costs are specializing in property management and real estate. He is a unpredictable, so they estimate a rate for each $100, former President of the Insurance Institute, has taught in the or $1,000, of property insurance requested and hope it community college system and provides continuing education is sufficient. to other brokers. He can be reached at andy@takecover.ca. 22 Canadian Apartment Magazine

coverstory

Grounded

in Fundam Skyline Takes on Commercial Challenge

Skyline, a Guelph-based real estate company, has embarked on a rebranding process aimed at making it easier for investors to understand the companyâ&#x20AC;&#x2122;s multi-faceted portfolio. In addition to its 3,766 apartments the company also owns 750,000 square feet of commercial space. By Randy Threndyle

24 Canadian Apartment Magazine

coverstory

Photography by Jason Leonard

amentals

August 2008 25

coverstory One of Canada’s fastest growing multiresidential real estate companies has outgrown its name. Formerly known as Skyline Inc., the company recently announced that it had embarked on a rebranding process aimed at streamlining the company’s management process and ending confusion among investors. Jason Castellan, Chief Executive Officer and one of the three founding partners of Skyline, says the name change came about after a lengthy exercise intended to separate the company’s various businesses and make it easier for investors to understand Skyline’s now multi-faceted portfolio. The two investment vehicles within Skyline are Skyline Apartment Real Estate Investment Trust and Skyline Real Estate Developments Inc. Castellan adds, “In the end, we want investors to be a part of the Skyline brand regardless of which investment they are in, thus the reason we simply refer to ourselves now as Skyline.” Castellan says the main focus was to separate the Skyline Apartment REIT from the various development projects which were also operating under the Skyline umbrella. The private REIT, which was established in 2006, has grown rapidly and now holds 3,766 apartment units, as well as commercial space in several cities across Canada. The value of the REIT has increased from $83 million in 2006 to a market value of over $320 million today. That makes it one of Canada’s fastest growing multi-residential real estate portfolios. If current growth continues, Skyline could soon be ranked among Canada’s top ten multi-residential real estate companies in terms of value as ranked by Canadian Apartment Magazine. The development company, on the other hand, is involved in several projects including a hotel in Cambridge, two condominium projects and a major commercial redevelopment in downtown Guelph. Wayne Byrd, Skyline’s Chief Financial Officer, says the rebranding is intended to end confusion among investors as to where their money was going. He describes the new Skyline as an umbrella company that encompasses both the REIT and the development business. 26 Canadian Apartment Magazine

“Originally Skyline Inc. was one entity that did everything. What we found through the rebranding exercise was that there was a little confusion among investors. They were asking ‘When I put a dollar into Skyline, where does that money go?’” Now, he says, it will be clear to investors as to whether they are invested in the REIT or the development company. “When an investor comes in, if they are investing a dollar in the REIT, their money goes into the REIT. If they are investing in a development, it has its own division run separately from the REIT,” he says. From a corporate standpoint, all 30 head office employees will continue to be involved in both the development and the REIT business. That way all employees are active in all aspects of the business. Much of the need for rebanding came about through rapid growth in the company’s investor base. Today there are over 450 investor members in the Skyline Apartment REIT. Castellan says they are mainly conservative investors interested in preserving capital and receiving a stable payout from the REIT. Investors in the development side of the business might be interested in a higher risk, higher reward type of development. People who invest in the REIT, says Castellan, are long-term investors. They want to know that their money is safely invested in tangible real estate assets that will be well maintained and will produce income for a very long time. Investors in the development side of the business might be interested in something that is a more finite investment. They might, for instance, want to invest in a condominium development. If so, they would make an upfront investment and when construction is completed and the units are sold, usually in about two years, the profits would be split among the investors. Since the REIT is mainly aimed at longterm investors, return on investment and preservation of capital are very important. Byrd says the current payout is 9 per cent per year paid in monthly installments. The REIT generally distributes about 85 per cent of its net revenue to investors, but currently the distribution has risen to about 91 per cent of revenue. That,

he says, is mainly due to a number of capital improvements that the company has undertaken on new properties it has purchased. Once those properties are stabilized the payout rate should return to normal levels. Since Skyline is a private REIT, the payout ratio is determined by the Board of Trustees. The board is made up of the three founding partners of Skyline and four independent trustees who are also investors. “They are the voice of the investor,” says Castellan. “It’s another layer of governance, another layer of protection for the investor.” While Skyline Apartment REIT is a private, rather than a public REIT, it operates under rules that are similar to those in place for a public REIT says Castellan. There is, however one difference. Since the REIT uses an offering memorandum, rather than a prospectus, new investors in Ontario must meet the Ontario Securities Commission’s accredited investor test.

Marketing Strategy As part of the rebranding process Skyline hired Torque Customer Strategy, a Toronto-based boutique marketing shop that specializes in helping companies get closer to their clients. Torque used a three-pronged approach to rebrand the Skyline image. Mark Healy, a Partner in Torque, says the process involves research, analysis of the research, and the creation of a new market strategy based on the analysis. The research involved speaking directly to investors, potential investors, tenants, building owners, employees and the management team. The next step was to analyze the data that had been collected. Healy says companies like Skyline, which have grown rapidly, benefit from this type of analysis. Rapid growth, he says, often requires the implementation of new processes which will help to take a company to the next level. In the case of Skyline, says Healy, “The expectation level of investors had increased and they were looking for the company to take the next step forward. On a practical level that meant reorganizing the company’s office space and marketing program.”

coverstory

Historically, the company had always operated in what could only be described as cramped quarters. While they had added staff, they had not increased their office space. In many cases employees were working three to an office. That all ended earlier this year when the company purchased a new office building on Fountain Street in Guelph. The company now has 8,000 square-feet of office space on one floor of the threestorey building. The other two floors are leased to other tenants. Castellan says the new building is, “A more presentable place that is better for our clients and better for the employees.” But even with the increase in space, there are still only four vacant offices. Other communication improvements include a weekly webcast which allows Castellan to speak directly to investors on the Internet. Previously he had fielded individual phone calls from investors, often several per evening. “We had to listen to our investors to find out what they wanted. We’ve grown the real estate part of the business, now we have to take it to the next level and become better communicators and have better interaction with our investors,” he says. The third part of the rebanding process involved developing a new marketing strategy. That includes building a new, more investorfriendly website, and improving the investor presentation kit. An up-todate marketing message, says Healy, is something that most companies can benefit from. “Information that is more than two years old is probably wrong and probably dangerous to use,” he says. 28 Canadian Apartment Magazine

Commercial Expansion The REIT has also achieved growth in the past few years in the area of commercial space. While the REIT’s declaration of trust states that the majority of its holdings have to be multi-residential buildings, the board of trustees recently approved a large commercial purchase that will almost triple the REIT’s commercial portfolio and give the trust real estate assets in several provinces. The commercial properties were purchased from The Co-operators, a Canadian-owned insurance company with offices across Canada. Following the purchase, 70 per cent of the REIT’s assets will be residential and 30 per cent will be commercial. Under the terms of the deal, which is expected to close later this year, Skyline Apartment REIT will buy six buildings totalling 474,000-square feet of commercial office space from The Co-operators. That will bring the REIT’s total commercial space portfolio to approximately 750,000-square feet. The buildings are located in Regina, Quebec City, St. John’s, Newfoundland and Guelph. In five of the six buildings,

the Co-operators are the only tenant. They will remain as the tenants of the buildings under a 15-year lease. Commenting on the deal, Bruce West, Senior Vice-President and Chief Financial Officer of The Co-operators group of companies said, “Throughout our negotiations with Skyline we have found them to be highly professional. The fact that they too make their corporate home in Guelph helps ensure that our future dealings with Skyline will be very positive.” Castellan says, “Given the quality of the property, and the quality of the tenant, we felt comfortable buying all six properties and aligning ourselves with a great Canadian insurance company.” Until The Co-operators acquisition, all of Skyline’s properties were in what are described as secondary markets in Ontario. In fact the company has had a strategy of avoiding major Ontario markets like Toronto and Ottawa, instead focusing on smaller markets like St. Catharines, Guelph, London and Oshawa. Castellan says The Co-operators portfolio fits in with the company’s policy of buying properties in secondary markets. “Certainly Regina, Quebec and St John’s are secondary markets. Regina is hot, but it’s not Toronto or Calgary, so it fits our criteria as a secondary market.” That could lead to more acquisitions, he says, as the purchase gives the REIT a foothold in other communities and other provinces. With The Co-operators purchase the REIT now owns 66 buildings in 26 communities. The expanded market base, says Castellan, “Provides individual apartment owners in those markets with the option of exiting direct ownership in exchange for REIT units.”

coverstory

Skyline Growth in Residential Real Estate

“We see a lot more opportunities than we used to see in the past which gives us the option of being selective in what we purchase. Over the past 17 years we’ve learned a lot about real estate and what it takes to be successful in this business. Grounded, fundamental investing in real estate is not a buzz term to us; it’s what we do every day.” Wayne Byrd, CFO Skyline

30 Canadian Apartment Magazine

1991 • P a r t n e r s h i p between Jason Ashdown, Jason Castellan and Martin Castellan formed. • From 1991 – 1999, the partners purchased and self managed 52 rental houses. • Learned from mistakes. 1999 • The partners created Skyline Incorporated. • Purchased first apartment building at 450 Woodlawn Rd in Guelph for $680,000. The building has 15 units. • From 1999 – 2006, Skyline continued to acquire apartment buildings at a rate of about 3 – 4 buildings per year. • Continued learning the business while laying the foundation to becoming a private REIT. • Grows to 25 apartment buildings or 1,296 residential units in 10 Ontario communities by June 2006. 2006 • In June 2006, Skyline created Skyline Apartment REIT. • Applied our years of experience to help accelerate the growth of the company. • Skyline Apartment REIT acquires 11 buildings for a total of 566 units from June to the end of the year in 2006 bringing the total number of buildings to 36 and the total number of units to 1,862 – a 44% increase in total units in just 6 months. 2007 • Skyline Apartment REIT continued to acquire buildings at a rapid pace in 2007 purchasing 12 buildings for a total of 1,283 units. This brought the total number of buildings to 48 and the total number of units to 3,145 – a 69% increase over 2006 totals. 2008 • Skyline Apartment REIT as of August 2008 has acquired 10 buildings for a total of 621 units bringing the total number of buildings to 58 and the total number of units to 3,766. Major announcements are coming soon.

coverstory Development Projects In addition to the acquisitions inside the REIT, the company’s development arm, Skyline Real Estate Developments Inc., has also been involved in several projects. Martin Castellan, Director, Real Estate Development and founding partner of Skyline, is involved in several of the projects. Among the company’s first projects was a hotel and conference centre in Cambridge, Ontario, about 100 km west of Toronto. Opened 18 months ago the hotel has 138 rooms, a full service restaurant and a 10,000-square-foot business and conference centre. Unlike properties in the REIT, the hotel is owned by a limited partnership which manages the business on an ongoing basis. The hotel was originally built as part of chain known as Future Inns, but as part of the Skyline rebranding process the hotel will soon become an independent and will be renamed the Cambridge Hotel and Conference Centre. Going from a chain hotel to an independent, says Martin Castellan, “Will allow our Skyline culture to flow freely into the hotel and restaurant. It will allow us to make quick market decisions.” As to future expansion plans, he says the company is certainly looking in other markets. The market plan, he says, will be similar to the one employed by the REIT, which avoids large markets and sticks to smaller or mid-sized cities. That, he says, gives a new hotel a chance to be the number one hotel in that market. “If we can do it with one hotel, we can do it with 10 hotels. If we are the number one hotel in each market, where would that put us? Certainly not the biggest portfolio of hotels, but it would be a winning portfolio of hotels.” As to making the hotel an independent operation, rather than being part of a chain, Martin Castellan says the problem with most chains is market cannibalization. At some interchanges along the 401, he says, you will see three hotels that are part of the same chain. “If I’m the owner of the first hotel, I may have had great success for the first year or two, but now I have direct competition from my own franchise.” 32 Canadian Apartment Magazine

Expansion plans, he says, could include another new build or possibly purchasing another hotel that could be refurbished. “A new building might not make sense, but with strong management a repositioning might,” he says. Martin Castellan says the hotel appeals to a different type of investor. Skyline Apartment REIT’s investment guidelines do not allow for it to own assets like a hotel, but even if that were not the case it’s unlikely the hotel would be part of Skyline Apartment REIT. “Apartment buildings work well in a REIT because they are very stable. Hotels are less so. They can be riskier but the profits can be higher.”

Condo Developments Both, however, are long-term investments. Shorter-term investors are more likely to be attracted to condo developments, another type of business the company is active in. Currently Skyline Real Estate Developments has two condo projects underway and once again they are in small-town Ontario markets. One is a 24 unit new-build condominium located in Southampton, a town on the shores of Lake Huron and the other is a renovation of a former convent in Haileybury, a Northern Ontario community just south of New Liskeard. Investors that are drawn to condo developments, says Martin Castellan, like the “in and out” aspect of the business. “Typically it’s a one to two year timeline. You put your money in, you build the units, sell the units and get your return.” In both developments, he says, the condo units will be aimed at empty nesters and retirees. In the case of Southampton, the town is already home to a large number of retirees and, while the town is on Lake Huron, it is not a busy beach community like Sauble Beach to the north. The four-story project will include a roof-top terrace which will have views of the lake and enable condo owners to enjoy the world-famous Lake Huron sunsets. It will also include a 3,000-square-foot commercial development which will

likely become medical offices or be leased to other professional services that will compliment the needs of retirees and empty nesters. The units themselves will be twobedroom condos aimed at an upscale market. They will be priced in a range from $264,900 to $320,000. By comparison, the Haileybury project involves the renovation of a 75,000-square-foot former convent. The L-shaped building, located on the shores of Lake Temiskaming, will have views of the lake from five of the building’s six sides. The renovation, says Martin Castellan, will allow the property to be taken to a higher and better use, which will create both a unique housing experience as well as value for investors. When completed, the project will have 48 units ranging in size from 380- to 1,450-square feet. The variation in size is due to market factors and the unique layout of the building. “When we bought the building, we didn’t know if it would be upscale, medium scale or affordable. As it turns out the design we came up with encompasses all three. In smaller communities, you don’t want to go just for the high end, because the high end market might be satisfied with 24 units and you have 48 units to sell.” Building in smaller communities, however, does have its challenges. For instance the Haileybury project will be the first condo built in the area. That’s meant educating buyers about the whole concept of condo ownership. On the plus side, however, communities often welcome a new development and are eager to help get a project under way. “It’s nice to go into a community and have them embrace what you want to do rather than being in a fight with them,” says Martin Castellan. “The approvals process and the zoning changes are easier to get. It’s nice to know you’re not going to be two years getting a project off the ground.”

Gummer Building While the condo projects are one aspect of the company’s development arm, they are also involved in a major commercial redevelopment in downtown Guelph. The project, known as the Gummer

coverstory Building, came about as the result of a tragic fire that occurred on Easter weekend in 2007. The fire did extensive damage to the historic building as well as two adjacent buildings. Built between 1850 and 1873, the stone buildings were among the oldest in downtown Guelph and have recently been designated heritage buildings. In the wake of that fire there was an outcry from the city and members of the community to save the buildings. Many similar examples of historic stone buildings had already been lost to redevelopment that took place in the 1960s and 70s. Roy Jason Ashdown, the Chief Operating Officer and a founding partner of Skyline, says before the fire, the development company owned the Gummer Building, but not the two adjacent buildings. After the fire, in an effort to amalgamate three smaller parcels into one larger development, Skyline purchased the two adjoining fire-damaged properties. The group decided that they would attempt to rebuild the three buildings while saving the heritage aspects of the buildings. That meant retaining the stone façade and as many architectural features as possible. When completed the new building will total 65,000-square feet of commercial and 12,000-square feet of retail space. In return for saving as much of the historic façade as possible, the city granted Ashdown permission to build a six-storey building, two more than the original structure. The two new floors will be stepped back from the original structure. Ashdown says one of the first things you learn about this type of project is it would be far cheaper just to tear the building down and start again. He, however, was unwilling to see the building demolished. “We stepped up in the name of preservation and the community. Somebody had to do this.” Most of the extra expense in the project, says Ashdown, is the cost of bracing the façade. “It’s a dance between building the new and retaining the old.” Peter Cartwright, General Manager, Economic Development & Tourism Services for the City of Guelph, worked with Ashdown on the Gummer project. He says, “First and foremost they are preserving the façade, which has 34 Canadian Apartment Magazine

historical significance. That’s what the city was interested in saving.” Cartwright says the biggest fear of city officials was that after the fire the building might sit abandoned or be torn down and become a vacant lot. The other objective for the city, he says, was to make the downtown a more vibrant location that would attract new businesses. The project, as proposed, “was a natural fit for us.” While the Gummer building is being done through Skyline’s development arm, the company also carries out some large scale renovations inside the REIT. One such project is currently under way in St. Catharines where the company is repositioning two recently purchased buildings. The 185-unit complex had many positive features. The buildings are concrete highrises that have both good bones and a good location. On the downside, rents were low and the suites and mechanicals needed a major overhaul. Skyline Apartment REIT is currently in the process of spending $4-million to upgrade the buildings. Improvements will be made to the boiler system, the elevators and the suites. New windows, doors and balcony railings will also be installed. The reason, says Ashdown is simple. Vacancies in St Catharines are well over five per cent for apartments that rent for between $600 and $800. When you get to the $900 price range, the vacancy rate disappears. Ashdown attributes that to the fact that there is very limited high end rental stock in the city and one out of five people in St.

Catharines are of retirement age. He adds that, “Retirees and empty nesters are often looking for higher calibre properties and this property is being designed to fill that need in the market.” Brian McMullen, the Mayor of St. Catharines, recently toured the project and remarked, “My staff and I were duly impressed with the quality of work being completed and I’m certain renters will be too.” When the renovations are complete the suites will boast granite counter tops, new kitchens and baths and custom colour choices. The suite renovations are being done as the units turn over, which means that about 50 per cent of the complex is currently vacant. That, as you would expect, has been a bit of a drag on the bottom line. But, says Ashdown, at the end of the day the project will be accretive to the REIT unit holders and add substantial value to the portfolio. “We have to be careful not to do too many of these projects at once, because the cost is high, but the end value of the project is so substantial, we have to fit them in.” While the company has grown by leaps and bounds in just a few short years, Ashdown is quick to point out that much of that growth is due the hard work put in by all the Skyline employees. “Many times I feel humbled by the number of great people that have come to work for this company and it is their efforts and the staff in general that have helped us to achieve these goals. I call it stacking the bench. You get the right people on that bench and the team is going to play well. It certainly helped us to achieve this level of growth.” CA M

CMY

CONGRATULATIONS SKYLINE on being named Movers and Shakers for 2008 and on the successful acquisition of the Co-operators National Sale-Leaseback Portfolio.

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technology

Revenue Management:

Effective Strategies for Maximizing Rent Revenue management tools standardize pricing methods, track the competition and automatically calculate new market rents. By Peter Altobelli

How much should you, the residential manager or owner, charge for rent? What’s the best strategy for maximizing occupancy and rental revenue? The most advanced revenue management toolsets, which help you standardize rent methodologies and track competition, can guide you to the right answers. When a revenue management toolset is part of your baseline residential system, you get accurate calculations of supply and demand, and therefore maximum revenue, because all pertinent internal and external conditions are assimilated into your calculations. Themosteffectiverevenuemanagement toolsets on the market are fully integrated with the property management suite’s accounting system, leasing workflow, renewals, and gross potential rent calculations. They standardize pricing methods, and drive an aggressive pricing approach by automatically calculating new market rents based on supply and demand factors at both the subject and comparison properties. All this makes excellent business sense for residential managers. Track Competitors with Market Surveys How do top-line revenue management software suites perform revenue management functions? One principal approach involves tracking competitors’ actions for price comparison purposes through market surveys. Your suite can be configured to set up subject and comparison properties, collect market survey data about comparison properties, track and maintain historical records of market surveys, and automatically migrate property information to subject 36 Canadian Apartment Magazine

property records—all of which helps eliminate redundant data entry. In addition, you can define comparison groups, allowing analysis of your property outside of its normal comparison properties. The bottom line: The market survey component aids you in formulating pricing models to create market rents and track rent trends among your competitors. These comparisons can be tailored to such specific characteristics as regional location, submarket, and property class. Top-line revenue management software packages can produce a comprehensive suite of market survey reports for delivery to owners and investors.

Pricing Modeller System The second approach to revenue management is the pricing modeller system, a configurable scoring model that considers both internal economic factors of supply and demand at the property, plus external factors derived from market survey data, to obtain a final suggested market rent. Top property management software systems’ tools let you create multiple pricing models specifically designed for your various submarkets and seasonal trends. With the ability to preview model rents and calculate new market rents as often as needed, the model’s real power is unlocked: the flexibility to control the critical values and factor weights which determine your market rents. Under the pricing modeller system, you define the critical values (low and high) for the factor types and provide weights that specify the importance of each pricing factor in the model. With a variety of pricing factors to choose from, you have the flexibility

to determine what is crucial to your pricing methodology. For example, your model may include such pricing factors as occupancy trend, leasing velocity, and a vacancy determination in addition to occupancy and pricing data from your competitors. Your model can also be tailored to include seasonal demands or issues specific to a particular submarket. With the ability to create multiple pricing models, you can configure this system to meet the needs of your organization regardless of variances in market trends throughout your portfolio. To test pricing models and fine-tune pricing factors, you can calculate model rents with a preview functionality. The preview option will enable you to see the effect each pricing factor has on your market rent schedule. You can drill down to the factor types that produced a suggested market rent for a unit type and gain a visual understanding of how and why the suggested market rent was derived. By using definable security levels, you are in complete control of how often rents are calculated and who has the authority to accept or override suggested price changes. After you set up subject and comparison properties, collect market survey data, and create a pricing model, you are ready to calculate your rent. And you’ll rest better knowing it’s right. CAM

Peter Altobelli is the Vice President and General Manager of Canadian Operations for Yardi Systems Inc. You can contact Peter at: peter.altobelli@yardi. com or call 888-569-2734.

buildingmaintenance

Electrical Submetering 101 By H. Victor Seeman, BSc, MBA

Submeters allow a user-pay system where tenants pay for the electricity they use. That creates an incentive for tenants to conserve electricity and allows property owners/managers to regain control of their electricity budget.

If you’re an owner or manager of a multi-unit residential building in Ontario, you’ve likely heard quite a bit about electrical submetering (ESM) and the need to do it. Chances are good that you are confused by - or have no idea about - what’s going on, why, and why now. To help give you a basic understanding of this part of your business, I will present a series of articles covering various aspects of it. We will start by offering “Electrical Submetering 101”, a very basic Q & A primer to help you get started in demystifying the ESM world. In subsequent articles we’ll look at other ESM issues including legislative issues, electricity pricing, meter selection and installation, and implementation case studies. 38 Canadian Apartment Magazine

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buildingmaintenance

“From the environmental perspective, total building electricity consumption drops substantially - from 10 to as much as 25 per cent post-conversion.” What is electrical submetering? In this context, submeters are meters that measure individual electricity consumption in each residential and/ or commercial unit of a multi-unit residential or commercial building. Submetering enables a user-pay system. Tenants are billed individually by suite and pay only for the electricity they actually use.

What is the rationale for doing this?

Will saving the electricity in my building actually make a difference? The Ontario government is counting on it. In Ontario, only about 15 per cent of the roughly 2.6 million condo, rental, and social housing units are submetered for electricity. The government is targeting a 6,300 megawatt reduction in demand through this initiative. That’s about 20 per cent of Ontario’s 31,600 MW of total generating capacity in August of 2008.

Traditionally a multi-unit building had only one bulk electricity meter, so the only way to apportion costs fairly to residents was through a pro-rata flat fee, often based on square footage rather than actual consumption. This fee was then included in their rent or condo fees. However, this method removed any financial incentive to conserve electricity. By moving to a user-pay system, consumers can directly receive the financial benefit of their own conservation efforts.

Why is this happening now?

Sounds great in theory, but does it actually work?

Everybody else benefits will I get to benefit too?

From the consumer’s perspective, studies have shown that when buildings switch to user-pay ESM, about 60 per cent of residents save money, about 20 per cent pay the same amount, and the remaining 20 per cent see their bills increase. The increases often last no more than the first few months, since the incentive to save kicks in. From the environmental perspective, total building electricity consumption drops substantially - from 10 to as much as 25 per cent post-conversion.

Yes and here’s how. • You regain control of your electricity budget because you are no longer at the mercy of tenants with no sense of actual costs and no incentive to save. If all tenants are submetered, your exposure to price and consumption fluctuation is only on the common elements, which are both more controllable and a much-smaller percentage of the total. • You avoid the need to seek aboveguideline increases to compensate for

40 Canadian Apartment Magazine

Aside from the recent run-up in energy prices and the global “green” push for environmental responsibility, the Ontario government decided to help us along in doing the right thing by passing legislation. The Energy Conservation Responsibility Act, which received Royal Assent in March 2006, included, among other things, requirements for smart meter installations. Since this is a rather complex topic we will focus on it in a subsequent article.

large jumps in electricity prices. • In many rental buildings (but certainly not all) our experience shows that the rent reduction required at turnover to compensate for converting from “hydro included” to “plus hydro” is less than the allocated hydro amount - and in some cases none at all. This brings more pure revenue to the bottom line and more value to the building through the cap rate multiples (in fact, almost always in excess of the cost of the meters). • You can legitimately claim that you are pursuing a “green” initiative, demonstrating your commitment to prudent environmental stewardship.

Is a smart meter the same as a submeter? Not necessarily. All smart meters can be submeters, but not all submeters are smart meters. For example, some submeters are no more than an analog or digital re-creation of the “dial under glass” meters of old. In contrast, smart meters incorporate any number of additional capabilities. They include: • Automated Meter Reading (AMR), which allows for remote meter reading (saving the cost of the meter reader). • Interval Metering (IM), which keeps track of both how much and at what times the electricity is being used. This enables consumers to benefit from Time-Of-Use (TOU) electricity pricing, where non-peak electrical consumption will be discounted. • Demand response and management controls, including for example, the ability to adjust thermostats remotely. Perhaps the greatest benefit of a smart meter is that a resident can log into their personalized account on the Web and see various consumption reports, including - potentially - consumption in real-time. This empowers them by giving them the data necessary to make intelligent consumption choices that suit their lifestyle.

I don’t want to bother my residents with the mess and inconvenience of in-suite work. Now what? The good news is you likely won’t have to. Just as computers have become smaller and more sophisticated, so too

buildingmaintenance have smart submeters. In most cases the smart submeters can be installed in the hydro closets in the hallways, and typically in any given suite power is only down for six to eight hours.

Can I install submeters in a building with electric heat? Not only can you - you must! The greatest benefits and savings accrue to buildings with electric heat. The only difference is that the heating equipment is likely on 240 volts, rather than the 120 volts for “lights and plugs”. In that case it would necessitate two meters per suite, rather than one.

Will my building qualify? What’s the next step?

you’d like to see discussed, we’d love to get your feedback. Until next time, CAM

A reputable ESM firm will send out - at no cost to you - a trained technician to do an initial site survey and determine if and how a smart submeter installation would take place. The good news is that in most cases buildings can be converted to ESM. So that’s our primer. In subsequent articles we’ll look at other ESM issues. If you have questions or there are issues

H. Victor Seeman is the President and CEO of WyseMeter Solutions Inc., an electrical submetering company. Mr. Seeman has an MBA in International Business and Finance from the Schulich School of Business. He has almost 25 years of experience in the real estate, mortgage finance, and operations fields. He can be reached at HVSeeman@WyseMeter.com.

I really want this, but can I afford it? The good news is it likely costs much less than you think. Besides, most reputable ESM firms have various financing options available and will work with you to meet your specific needs.

How do I get resident buy-in? If this is confusing to real estate professionals, how much more so to individual residents. We’re also aware that some residents may see this initiative as nothing more than a cashgrab by landlords or condo boards. These two key success factors will help ensure a smooth implementation. • Choosing the right ESM partner that can help educate your board and/ or residents about submetering by providing information, orientation sessions and ongoing support to property managers and residents alike. • In the case of rentals, introducing “hydro extra” pricing only upon suite turnover and not on existing tenants.

Waiting for suite turnover could kill my financials! Not necessarily. Even though submeter installation needs to be completed on the whole building at one time, a number of firms have an option that, aside from a nominal fee, billing and meter rental fees do not commence until suite turnover, i.e. the metering company carries that cost. This will actually bullet-proof your bottom line.

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propertymaintenance

Plumbing Maintenance Equals Energy Savings

42 Canadian Apartment Magazine

propertymaintenance

Regular maintenance on your plumbing systems can reduce your utility and energy bills. By Paul Abrams

Regular building maintenance is a hassle. It’s easy to postpone or convince yourself that it’s not necessary. While it’s true that maintenance can be costly, it’s important to recognize that you’re likely to spend substantially more money in the long run if you ignore a maintenance regimen and wait for something to go wrong. This is especially true in the case of plumbing. It’s easy to neglect your plumbing. The pipes are hidden in walls and buried underground so we don’t think of them until the drains won’t drain or the water won’t turn on. With very little effort, you can make sure your plumbing provides years of trouble-free service without costly surprises. Faucets take lots of abuse, whether in the sink, shower or on the side of a building. Faucets have moving parts that

will eventually wear out or require adjustment. The most obvious sign of trouble is a dripping faucet, which can waste up to 80 litres of water each day. Imagine the water bill if you have two or three leaking faucets in a building. If the faucet leaks hot water then you’re also wasting the energy required to heat the water that you’re allowing to simply flow down the drain. You might as well poke holes in your water heater or boiler tank! Leaky faucets are easily repaired. Modern faucets use a cartridge system that can be quickly and easily replaced with only a screwdriver. Older faucets use washers or O-rings to provide a tight seal. These too are easily replaced. Some manufacturers offer parts schematics on their websites and if not, your local hardware store can

probably help. When all else fails, you can’t beat a professional plumber.

“Running Toilets” After you’ve taken care of the leaky faucets, turn your attention to leaky toilets. Some of us call them “running toilets.” If you thought leaky faucets wasted a lot of water, consider that one leaking toilet can waste up to 800 litres of water a day. At that rate you could fill two large swimming pools in a year. Sometimes toilet leaks are silent but you

“With very little effort, you can maker sure your plumbing provides years of trouble-free services without costly surprises.” August 2008 43

propertymaintenance

“Depending on local water rates, a low-flow toilet can pay for itself in as little as two years.” can test for leaks with a bottle of food coloring. Remove the tank lid, add five drops of food coloring to the tank and wait fifteen minutes. Do not flush. If colored water appears in the bowl then the toilet is leaking. Leaks can be caused by an improperly aligned chain or guide wire on the flush handle or by a worn flapper valve. Replacement kits are easy to install and can be found at hardware stores or home centres. Even after you’ve repaired all of the leaks, there are a number of things you can do to cut down on water usage and save yourself a bundle of money. Remove old toilets and replace them with newer models that use only six

44 Canadian Apartment Magazine

litres of water per flush. Toilets made before 1994 used anywhere from 13 to 28 litres per flush. That’s as much as 80 litres per person per day. An apartment with three occupants will save up to 86,000 litres per year and you’ll also save big bucks on the wastewater portion of your bill because you’ll have a lot less going down the drain. You may have heard that six-litre toilets aren’t as good as the old models. The earliest models had some drawbacks but manufacturers have made great strides in recent years and the toilets are not only efficient, they’re powerful too. Depending on local water rates, a lowflow toilet can pay for itself in as little as two years.

Sink Aerators Another simple thing you can do to cut down on water usage is to make sure all sinks are equipped with aerators, screens in the faucet head that adds air to the spray and cuts water flow without any noticeable loss in pressure or volume. The most efficient aerators cut bathroom sink water flow from eight to 12 litres

propertymaintenance per minute down to just four litres per minute. Bathroom sinks without aerators use between 12 and 24 litres per minute. Kitchen sinks require more water flow than bathroom sinks so most plumbers recommend a six-litre-per-minute aerator. Over the course of a year, sink aerators will cut water costs up to seven per cent per household. Aerators also one of the least expensive retrofits you can make as they cost only a couple of bucks each One of the most controversial water saving tools is the low-flow showerhead. The newest heads don’t seem like lowflow devices at all even though they use less than half the water of an unrestricted showerhead. You can plan on saving about 64,000 litres of water per year in an apartment with three occupants. A shower can be retrofitted in minutes with only a crescent wrench and a roll of sealant tape.

Appliance Upgrades Appliances such as dishwashers and washing machines can use a lot of water and energy. A common dishwasher uses

about 60 litres of water per cycle. By comparison, washing dishes in the sink uses about 80 litres per session. The good news is the machines are getting more energy efficient all the time so you may want to determine whether an upgrade is in order. Washing machines are probably the biggest water users. Some conventional machines use as much as 220-litres per cycle. The new front-loading washers cost quite a bit more out of the box but

they use less than half as much water and electricity per load. If you want to realize major savings in a short period of time, consider upgrading to a more efficient water-heating unit. New gas units are about 30 per cent more efficient than older units and their electric counterparts. The average water heater will last about twelve years. They’ll last longer with annual maintenance that includes draining the tank and allowing corrosive mineral sediment to flow out of the unit. The sediment also reduces heating efficiency, which means it’s using more gas or electricity. Set the unit’s temperature setting to 49 degrees C, the optimum setting for saving electricity and reducing the risk of scalding a tenant. CAM Paul Abrams is the public relations manager for Roto-Rooter Services Company. He’s based in Cincinnati, Ohio. You can read his blog and find more helpful tips and information, at www.rotorooter.com. In the Toronto area, contact Stanley J. Collini, the owner and operator of Roto Rooter Plumbing and Drain Service, 416-503-4444.

Submetering just got easier.

With end-to-end solutions, from the supply, installation and financing of smart meters to billing and customer service, we can help you get the most out of submetering. wysemeter.com 1.866.681.9465 August 2008 45

multifacts Ontario MPP Proposes Legislation to Target Problem Properties

landlord can increase the rent of an existing tenant without seeking the approval of the Landlord and Tenant Board.

Ottawa Centre MPP Yasir Naqvi is planning to introduce a bill at Queen’s Park later this year that targets problem landlords and tenants, and he has the support of the city of Ottawa. The bill is to be modelled on laws in other provinces giving authorities the ability to close properties where crimes routinely take place if tenants and landlords don’t respect warnings.

The 2009 guideline applies to rent increases that occur between January 1 and December 31, 2009. The calculation is based on the Ontario Consumer Price Index, a measure of inflation that is calculated by Statistics Canada.

A year ago Ottawa city council passed a motion calling on the province to enact a law based on the Safer Communities and Neighbourhoods Act in Manitoba, which was the first of its kind in Canada. Similar laws, now known as SCAN acts, have been adopted in Saskatchewan, Nova Scotia, Newfoundland and the Yukon. Alberta’s will take effect later this year. Mr. Naqvi said the idea came from community associations, which prompted him to research laws in other provinces. He says his bill, if passed, will give law-abiding citizens the power to help clean up neighbourhoods, give authorities a less costly and time-consuming way to deal with anti-social elements, and provide due process for people who believe they are wrongly targeted. “It will benefit people in my community and others in Ontario,” he said. “Most problems are taken care of very quickly.” The laws use civil sanctions to address the damage done to communities by habitual criminal activity. Generally, the way other provinces’ laws work is that anyone can make a complaint about such things as drug dealing and use, prostitution, weapons or child abuse happening continually at a particular address, and a special public safety investigation will begin. A complainant’s identity is kept private regardless of the outcome. If there is evidence to support the complaint, a number of things can happen, including warnings to property owners and tenants, and out-of-court resolutions. If these don’t work, officials can go to court seeking community safety orders telling landlords and tenants the steps they must take to stop the problems. If the problems persist, landlords and tenants can face hefty fines or even imprisonment, and they can be found in contempt of court. Officials can also get temporary or permanent orders to shut down properties when warranted. At every step of the process, the tenants and landlords can defend themselves in court and can seek damages if judges agree they have been wrongfully targeted. However, most cases never make it to court. In Manitoba, from 2002 when the law came into force until mid-2007, 304 complaints were received, and drug, prostitution, and solvent abuse problems ceased at 219 addresses. Only one complaint ended up in court. Drugs worth $2 million were seized during investigations, 93 people were arrested and charged and several marijuana grow operations were shut down. There were no false or malicious complaints, only five people reappeared in new investigations after the closing of a problem property, and no problem addresses were the subject of further complaints after an investigation. Last year, Ottawa city staff studied the issue and concluded such a law would be beneficial. The city council motion urging the province to adopt such a law passed unanimously.

Ontario Rent Increase Guideline Set at 1.8 Per Cent The 2009 rent increase guideline for Ontario landlords has been set at 1.8 per cent, the third lowest guideline in provincial history. The rent increase guideline is the maximum amount by which a 46 Canadian Apartment Magazine

Commenting on the guideline, Minister of Municipal Affairs and Housing Jim Watson said, “We’re protecting tenants by keeping rent increases within the rate of inflation, while ensuring that landlords can recover increases in their operating costs.” The 2009 guideline is calculated under the Residential Tenancies Act, which took effect on January 31, 2007. It applies to most private residential rental accommodation covered by the Residential Tenancies Act. It does not apply to vacant residential units, residential units first occupied on or after November 1, 1991 and social housing units.

Ontario to Require Fire Sprinklers In New Condos and Apartments Changes to the Ontario Building Code will require sprinkler systems in new condos and apartments higher than three storeys. The changes will come into force on April 1, 2010. Building permit applications for multiple-unit residential buildings higher than three storeys submitted on or after that date must comply with the new fire sprinkler requirements. Residential fire deaths in Ontario have declined steadily since the Ontario Building Code was introduced in 1975, and Ontario has one of the lowest rates of residential fire deaths in Canada. The changes are intended to bring the Ontario Building Code into harmony with the National Building Code of Canada and the codes in force in other Canadian and American jurisdictions. “We are making our safe buildings even safer. These changes to the building code will ensure residents of new high-rises will have the same fire protection as all other jurisdictions in Canada,” said Jim Watson, Minister of Municipal Affairs and Housing. Pat Burke, Ontario’s Fire Marshal said, “The experience of other jurisdictions across North America is clear: residential sprinklers significantly reduce injuries, deaths and property loss due to fire. This requirement is a huge step forward in the protection of citizens of this province from fire.” The new requirements apply to new construction, additions to existing buildings, f loors of existing buildings that undergo a change of major occupancy, and f loor areas that undergo extensive (“gut”) renovation. Sprinkler requirements apply throughout the building, including residential suites, service areas and common areas, such as corridors. The new requirements do not apply to smaller residential buildings, including houses or to the renovation of portions of f loors.

Canada’s First Certified Rental Building Program Launched The Federation of Rental-housing Providers of Ontario (FRPO) officially launched the Certified Rental Building Program (CRPB) for rental housing in the Greater Toronto Area. The residential rental housing initiative, launched in June, is the first quality assurance program of its kind in North America that is designed specifically for tenants.

multifacts FRPO President & CEO, Vince Brescia, said: “FRPO’s goals with this program are to promote professionalism in our industry and to provide tenants with a quality assurance alternative when selecting their rental home.” FRPO’s Director of Certification, Ted Whitehead, said: “The FRPO program provides its members with a consistent set of standards that represent good value in rental housing for consumers. The certification program is intended to introduce the CRBP approval and logo as a symbol of quality that helps tenants identify well-run, well-managed buildings.” The program will help tenants identify quality buildings and assure them that they have selected a property manager who cares about the quality of rental building products and the quality of service they provide to tenants, he said. Members of the FRPO board of directors unveil new signage for the Certified Rental Building Program.

The standards are wide-ranging in their perspective and include areas such as customer relations, human rights compliance, employee relations, daily building operations and financial management. Under the program’s educational focus it will be mandatory for building personnel to attend courses and successfully complete a test at the end of the program.

The Federation’s goal is to have 500 rental buildings certified under its rigorous Certified Rental Building program this year and 1,500 buildings certified by the end of 2009. The program will introduce a ‘best practices’ approach to the provincial rental marketplace, and will identify for tenants ‘good’ buildings and ‘good’ property managers. FRPO represents over 800 rental property owners/operators who supply rental units to over 250,000 Ontario tenants. For more information, go to: www.frpo.org.

Housing Group Turns up the Heat on Bedbugs Bedbugs can go a year without a meal, hide in tiny cracks and survive chemical campaigns to kill them. But they don’t do so well in heat, which is why a housing complex under construction in Vancouver will include what’s been dubbed the “bedbug sauna,” a room where furniture, clothing and other belongings can be heated to a point that kills the common bedbug, which is enjoying a worldwide resurgence. The idea was born of frustration with the rising cost of treating bedbug infestations and the desire to find some way to get rid of them that wouldn’t force people to throw away their belongings, says George Simpson, operations manager for RainCity Housing, the non-profit group that has ordered the bug room for a 92-unit complex now under construction. “Inevitably, belongings had to be disposed of that couldn’t be treated or laundered,” says Simpson, for whom bedbugs have become a major headache in recent years. The room will be big enough to hold mattresses and other bulky furniture, and equipped with technology that allows contents to be heated to a point that cooks bugs and their eggs.

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The concept is sound, says Judy Black, technical director with Steritech Group Inc., a U.S. pest-control company that last year briefed Vancouver hoteliers on the pests. “Bedbugs are relatively insusceptible to cold, but they are very sensitive to heat,” says Ms. Black, adding that Steritech is investigating heat as a control method. A blast of sufficient heat - about 55 degrees C, Ms. Black estimates, applied for a matter of minutes, not hours - would kill bugs without using pesticides that can leave rooms uninhabitable for days. Bedbug infestations have climbed worldwide as a result of restrictions on some pesticides, such as DDT, and increased international travel. They are a particular scourge on the Downtown Eastside of Vancouver, where the combination of older buildings and a transient population has resulted in a fertile environment for the insects. A 2006 city study found 80 per cent of single-room occupancy hotels had bedbugs. The insects don’t transmit disease, but their itchy bites can leave sufferers at wits end. Provincial authorities and the pest-control sector are lobbying Health Canada to investigate new pesticides that would target bedbugs, says Domenic Losito, regional director of Environmental Health at Vancouver Coastal Health Authority. The agency also educates landlords, outreach workers and housing agencies about bedbug control and provides some health care workers with “bedbug kits” that include an oversized Ziploc-type bag to hold briefcases and laptops to prevent bedbugs from hitching a ride from an infested site.

Blast Forces Evacuation of Apartment Building

Incentives for lighting, HVAC, building envelope, motors and equipment Incentives for lighting, HVAC,forbuilding envelope, Renovate savings and incentives Toronto Hydro-Electric System offers a motors and equipment Business Incentive Program for retrofits Incentives for and lighting, Renovate savings incentives to buildingsfor that are 25,000 square feet HVAC, building envelope, Incentives for lighting, Toronto Hydro-Electric System offers a or less. Calculators, tips, information and motors and equipment HVAC, building envelope, Business Incentive for retrofits applications are on Program our Web site. and to motors buildings that areequipment 25,000 square feet Renovate for savings and incentives or less. Calculators, tips, information and www.torontohydro.com/bip Renovate for savings and incentives Toronto Hydro-Electric System offers a applications are on our Web site.

Hundreds of residents of an east-Toronto apartment tower were forced to leave their homes after an explosion rocked the building in July. The blast occurred in an underground hydro vault and injured 10 people, including nine firefighters. It sent shockwaves through the building, blowing cars from their stalls, shattering windows two floors above and causing a fireball seen by tenants a dozen floors above. “It looked like a bomb hit the front of the building,” resident Lani Childs, 47. The blast forced the evacuation of the 22-storey building in the Main Street and Danforth Avenue area. The explosion, which heavily damaged the underground parking levels, sent soot through much of the building. Cleanup and damage repair is expected to take at least a month. In the meantime, tenants have been prohibited from returning to the building, except to retrieve valuables and pets. Tenants were housed in emergency shelters or stayed with friends or relatives. The five-alarm fire was brought under control soon after the explosion. About 110 firefighters and 28 trucks responded. Three firefighters suffered second-degree burns; three others suffered smoke inhalation; and three concussion-like syndromes. One resident also suffered smoke inhalation.

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National Rental Vacancy Rate Edges Lower

or less. Calculators, information and or less. Calculators,tips, tips, information and

The average rental apartment vacancy rate in Canada’s 35 major centres decreased slightly to 2.6 per cent in April 2008. That’s down from 2.8 percent in April 2007, according to the spring Rental Market Survey conducted by Canada Mortgage and Housing Corporation (CMHC).

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www.torontohydro.com/bip 48 Canadian Apartment Magazine

“The Canadian economy remains very supportive of strong demand for both ownership and rental housing thanks to solid job creation

marketing multifacts and healthy income gains,” said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “High levels of immigration and the increasing gap between the cost of home ownership and renting continue to drive rental demand in 2008. These factors have put downward pressure on vacancy rates over the past year.”

Toronto ($1,075), Vancouver ($1,071), and Edmonton ($1,000). Of all the major centres, these four were the only ones with average rents at or above $1,000. The lowest average monthly rents for two-bedroom apartments were in Saguenay ($497), and Trois-Rivières ($501).

The results of CMHC’s spring survey reveal that the major centres with the lowest vacancy rates in April 2008 were Victoria (0.3 per cent), Kelowna (0.3 per cent), Greater Sudbury (0.7 per cent), Vancouver (0.9 per cent), and Saskatoon (0.9 per cent). A unit is considered vacant if, at the time of the survey, it is physically unoccupied and ready for immediate rental. In other words, a new tenant can sign a lease for a vacant unit and move in immediately. All major centres in British Columbia except for Abbotsford, posted a vacancy rate below one per cent due to rising migration to British Columbia and relatively high home ownership costs that have resulted in increased rental demand.

Year-over-year comparison of rents can be slightly misleading because rents in newly-built structures tend to be higher than in existing buildings. Therefore, CMHC provides an analysis of rents that excludes new structures, resulting in a better indication of actual rent increases paid by tenants. Overall, the average rent for two-bedroom apartments in existing structures across Canada’s 35 major centres increased by 3.6 per cent between April 2007 and April 2008.

Provincially, vacancy rates were lowest among the western provinces, especially Manitoba (1.0 per cent), Saskatchewan (1.2 per cent), and British Columbia (1.1 per cent). This is largely due to the migration of workers from Central and Atlantic Canada, who settle in rental housing upon their arrival in the western provinces. As for Alberta, both Edmonton and Calgary have seen increases in the vacancy rate, mainly due to reduced migration into the province and increased supply of nontraditional forms of rental accommodations such as rented condominiums and basement apartments. At the other end of the spectrum, the major urban centres with the highest vacancy rates were Windsor (13.2 per cent), Moncton (5.5 per cent), and Hamilton (4.7 per cent). The highest average monthly rents for two-bedroom apartments in Canada’s major centres were in Calgary ($1,096),

While the average rent for two-bedroom apartments in existing structures increased in all major centres, rent increases were particularly strong in Saskatoon (21.3 per cent), Edmonton (13.7 per cent), Regina (10.4 per cent), and Abbotsford (9.1 per cent). When these four centres are excluded, the average rent increase in existing structures in the remaining 30 centres was only 2.3 per cent. CMHC’s spring Rental Market Survey found that the average rental apartment availability rate in Canada’s 35 major centres was 4.9 per cent in April 2008 down from 5.4 per cent in April 2007. A rental unit is considered available if the unit is vacant (physically unoccupied and ready for immediate rental), or if the existing tenant has given or received notice to move and a new tenant has not signed a lease. Availability rates were highest in Windsor (15.6 per cent), Hamilton (8.1 per cent) and Moncton (6.4 per cent), while the lowest rates were in Kelowna (1.3 per cent), Vancouver (1.3 per cent) and Winnipeg (1.5 per cent).

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 Doug Eveneshen Phone: 403-237-8975 Fax: 403-266-5002 Email: calgary@peoplestrust.com Toronto Michael Lombard Phone: 416-368-3266 Fax: 416-368-3328 Email: toronto@peoplestrust.com ™

www.peoplestrust.com August 2008 49

regulations

Regulatory Changes for Elevators in Ontario Landlords and other members of the public in Ontario now have access to new elevating devices regulations being put forward by the provincial government and the Technical Standards and Safety Authority. The TSSA is responsible for regulating the safety of more than 43,000 elevating devices in Ontario. They include elevators, escalators, moving walks, lifts for persons with physical disabilities, passenger ropeways and construction hoists and ski lifts The new regulations can be viewed online at www.tssa. org or at www.e-laws.gov.on.ca (where the official version is housed). The new Elevating Devices Regulations will become active and legally-binding on January 1, 2009. The changes will affect Ontario Regulation 209/01 (Elevating Devices) and Ontario Regulation 222/01 (Certification and Training of Elevating Devices Mechanics). In order to publicize the new regulations the TSSA will disseminate information to relevant industry stakeholders. The communication strategy is aimed at ensuring greater awareness and compliance of the revised regulations as amended under the Technical Standards and Safety Act, 2000. As part of its communication strategy, TSSA will utilize its existing Customer Contact Centre, online communications, and targeted trade publications. The TSSA will also seek assistance from its advisory councils. As unique representatives of the elevating device industry, each council member will be asked to communicate a summary of the regulatory changes to respective industry colleagues and groups

Upon receipt of the revised regulation from the Ministry of Government and Consumer Services, TSSA will post it on its corporate site – www.tssa.org – and send e-notifications to all subscribers within three days. Additional targeted communications to respective stakeholders will occur thereafter – spanned over several months. The changes include a number of new requirements that affect owners, minor alterations, incident reporting, and definitions for new devices. If you have questions, contact the TSSA’s Customer Contact Centre toll-free at 1-877-682-8772. CA M

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Gotta Rent . . . . . . . . . . . . . 23 . . . . . . . 888.966.4966

Rogers . . . . . . . . . . . . . . . . 4 . . . . . . . . 866.567.5778

Bank of Montreal (BMO) . . 35 . . . . . . . 416.359.4001

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Skyline . . . . . . . . . . . . . . . . 5 . . . . . . . . 519-826.0439

CB Richard Ellis . . . . . . . . . IBC . . . . . . 416.362.2244

Maytag . . . . . . . . . . . . . . . . 19 . . . . . . . 800.662.3587

TD Canada Trust . . . . . . . . IFC . . . . . . 877.299.9058

Cleaver Brooks . . . . . . . . . . 47 . . . . . . . 414.359.0600

Met Cap . . . . . . . . . . . . . . . 11 . . . . . . . 416.340.1593

Torgue . . . . . . . . . . . . . . . . 27 . . . . . . . 416.260.5800

Coinamatic . . . . . . . . . . . . OBC-31 . . 800.561.1946

People’s Trust . . . . . . . . . . . 49 . . . . . . . 416.304.2078

Toronto Hydro . . . . . . . . . . . 48 . . . . . . . 416.542.3000

Demikon . . . . . . . . . . . . . . . 37 . . . . . . . 519.846.2222

Prime Corp . . . . . . . . . . . . . 3 . . . . . . . . 888.720.2020

Wyse Meter Solutions . . . . . 45 . . . . . . . 416.869.9900

Enbridge HPNC . . . . . . . . . 13 . . . . . . . 866.763.5427

Quality Allied Elevators . . . 15 . . . . . . . 905.305.0195

Yardi . . . . . . . . . . . . . . . . . 9 . . . . . . . . 905.671.0315

Enbridge Gas . . . . . . . . . . . 39 . . . . . . . 866.763.5427

Read Jones Christoffersen . . 49 . . . . . . . 416.977.5335

First National . . . . . . . . . . . 7 . . . . . . . . 416.593.1100

Regal . . . . . . . . . . . . . . . . . 33 . . . . . . . 905.738.4375

50 Canadian Apartment Apartment Magazine Magazine 50 Canadian

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VOLUME 5 / NUMBER 3 / August 2008