Canadian Apartment Magazine June/July 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

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. 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.

Aiming for the BIG Leagues The intergenerational wealth concept

2008 Who’s Who Elevators: Proprietary or Non-Proprietary

SIZE AS: 10.875” X .125

How Insurance Works

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.

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

TD CANADA TRUST – MULTI-RESIDENTIAL MORTGAGES DIVISION

VOLUME 5 / NUMBER 2 / JUNE/JULY 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

09 PM# 40063056

BUYERSâ&#x20AC;&#x2122; GUIDE U PUG AWARDS

2 = @ =B 6 G ;

CondoBG09_HardStock.indd 1

ent.ca npropertymanagem

www.canadia

B@3<2A 0CG3@AÂ¸ 5C723

www.condobusiness.ca

/1 6 / ; 6 = C

A3 Â&#x2019; / 4:3F

7 0 : 3 /1 B 7 D

7BG Â&#x2019; @3A72

3<BA E7B6

Managing todayâ&#x20AC;&#x2122;s long-term care and retirement facilities

6/26/09 10:44:55 AM HFMBG09_Hardst

www.healthcarefac

23;3<B7/ PM#40063056

ock.indd 1

ilitymanagement.ca

4/9/09 12:19:38 PM

Your listing will appear in Canadian Property Management Buyersâ&#x20AC;&#x2122; Guide 2010, Healthcare Facility Management Buyersâ&#x20AC;&#x2122; Guide 2010 and CondoBusiness Buyersâ&#x20AC;&#x2122; Guide 2010 and reach buyers in the following sectors: Commercial Industrial Residential Condominium

â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘ â&#x20AC;˘

Retail Apartment Hospital Long Term Care Facility

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!

ents

m part nd A ts a l s Pre artmen io p ar 53 A a, Ont w a t t O

d s o an ent tari Gr rtm On e a r, Th Ap ene 73 itch K

Les Jardins Radisson 623 Apartments Gatineau, Quebec

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

Sam Firestone LL.B. Principal/Broker (613) 614-6434 ext. 222

Aik Aliferis B.B.A. Principal/Broker (613) 724-9242 ext. 234 Primecorp Commercial Realty Inc., Broker Primecorp Québec Commerciale Inc., Courtier Immobilier Agréé HEAD OFFICE

275 Bank Street, Suite 301 Ottawa, Ontario K2P 2L6

36 Blue Jays Way, Suite 718 Toronto, Ontario M5V 3T3

www.primecorp.ca

1233 rue de la Montagne, Suite 101 Montreal, Quebec H3G 1Z2

advertising feature AN OPEN LETTER FROM THE CEO OF LEAGUE ASSETS CORP. Dear fellow apartment owners, Whether you know it or not, if you own investment real estate and you’re taking the maximum depreciation on your buildings every year, you’ve also initiated a looming tax problem that will be triggered when you sell your asset. By depreciating your assets to the maximum extent allowed on all of the buildings and equipment included on your property, you defer the taxes payable on the income from the property—but only for as long as you own the property. When the day comes that you wish to sell your asset for a more profitable or less management intensive one, all of the tax you deferred will become immediately due. It’s called Recapture Tax—and, believe me, if you’re not prepared for it, it’ll hurt. Recapture Tax (coupled with the Capital Gains Tax resulting from the rising value of your property) is a serious consideration every investor must face when the planning a disposition, and requires equally serious legal and accounting experts to help you avoid a major pain in the pocketbook. Your Tax Problem Depending on the current form of your ownership (i.e. personal, corporate, trust, limited partnership, etc.), when you finally decide to sell—regardless of whether it be for retirement or simply to replace assets in your portfolio—Canada Revenue Agency is standing by to grab up to a whopping 44% of the accumulated depreciation taken, which is due upon the sale of your asset(s) in the form of Recapture tax. When you factor Capital Gains tax into the final calculation (upwards of 22% of any gain), the equity you planned to receive upon sale of your asset will be completely wiped out. Adding Up the Cost If the idea of losing the lion’s share of your equity and profits to Recapture, Capital Gains taxes is keeping you from prudently disposing of selected real estate assets (whether it be for retirement or simply to replace assets in your portfolio), your loss is not only measured in the cost of equity lost to taxes, but in the cost of missed opportunities as well —and there’s nothing you can do about it. Or is there?... If some of your real estate assets are less profitable or more management intensive than you’d like, and you’d like to avoid recapture tax legally, there are two things you need now: opportunity and options. Meet Opportunity League Assets Corp is a private real estate investment firm respected for our business model and ethical practices. We specialize in the acquisition and management of large ($2 million and up) industrial, commercial, and residential real estate assets. Our pooled investment structure puts us in the unique position of being able help the owners of fullyand partially-depreciated real estate divest themselves of select assets in their portfolio in a tax efficient manner. League has acquired over $40 million in assets in the past 18 months alone—many of them using this seller-friendly tax-saving strategy.

League Assets Corp. 1-877-772-8836 217-2187 Oak Bay Ave. Victoria, BC V8R 1G1

adam@league.ca

advertising feature Enjoy Options By employing our unique asset “re-structuring” strategy, we will enable you to do the following when you sell your fully- or partially-depreciated assets: • • • •

Maximize your profits Continue to defer your Capital Gains tax liability indefinitely; Minimize your Recapture Tax liability; and (if you so choose) End up owning a passive, tax-efficient, and diverse real estate investment in League’s IGW REIT—earning greater than 15% R.O.I.

Profit Solution If you’re still reading this, chances are good that you are thinking of re-organizing the contents of your portfolio for one of the following reasons: • You would like to replace your active income-producing investment(s) with more passive ones; • You wish to replace one or more of your assets with more profitable ones; • You are considering replacing assets to simplify or reduce your management responsibilities; • You are reallocating your investments in preparation for succession planning; or, • Completely divesting because the successors you hoped would take over the management of your real estate assets have other plans, or simply aren’t ready for the responsibility; If you are considering selling your property, but worry that the tax consequences will be dire, then League may be able to provide some strategies that ensure both peace of mind and profit. By availing yourself of the advice of our tax advisors at KPMG (the world’s largest business services firm), the expertise of our legal counsel, Reed Pope LLP, and the asset structuring experience of League Assets Corp., you’ll be sure to wring every last taxefficient cent out of your disposition, and walk away with the greatest possible net profit. Elegant Strategies All of League’s strategies rely on simple tax rules, but we combine them in powerful ways using sophisticated valuation models and flow-through structures that most investors never even or thought possible. Because we approach the transaction from the position of positive inter-dependence with the seller, rather than the typical antagonistic competitive stance, the resultant strategies allow us to give you more after tax capital than if each of us had simply haggled back and forth over a rudimentary purchase and sale agreement trying to get as much as we can at the expense of the other party. Clear Examples If you are seriously considering this option for one or more of your properties valued above $2 million, I hope you’ll call me. If I believe our strategy will work for your property, I’ll be happy to provide you with distinct case studies drawn from real-life negotiations and transactions conducted by League. My aim, as always, to provide you with the opportunity and options you need to take profitable action on your investment assets. I look forward to working with you. Regards,

Adam D. Gant, CEO & Co-Founder League Assets Corp.

League Assets Corp. 1-877-772-8836 217-2187 Oak Bay Ave. Victoria, BC V8R 1G1

adam@league.ca

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

T– NOLOGY

apturing, and controlling namatic works hard to t experience that helps e help our clients attract he SmartCity architecture 0,000 cardholders ensure ue to grow, this year, and

Aiming for the BIG Leagues The intergenerational wealth concept

2008 Who’s Who Elevators: Proprietary or Non-Proprietary

SIZE AS: 10.875” X .125

How Insurance Works

BANNER-STYLE AD

th world class commercial ca’s only award-winning, Every Time® service and tic reduces the cost and hile improving cash flow

IT’S CLOSER THAN YOU THINK...

innovative, purpose-built ners and their residents.

Multi-Unit Residential Mortgages

TD CANADA TRUST – MULTI-RESIDENTIAL MORTGAGES DIVISION

VOLUME 5 / NUMBER 2 / JU N E /JU LY 2 0 0 8

24 Industry Profile

Aiming for the Big Leagues

League Assets Corp., a Victoria-based real estate investment company, plans to make investors wealthy using its intergenerational wealth concept. Through a private REIT and a series of limited partnerships, the company is putting together a portfolio of income producing properties.

contents... MARCH 2007

7/2/08 2:05:00 PM

10 How Insurance Works Insurance companies are really in the investment business. Your premiums create cash pools which work to increase or reduce your premium.

14 2008 Who’s Who We rank the top apartment owners and managers in Canada. 16 Portals: A Window to New Efficiencies Portals, a secure, seamless conduit between a website and operating databases, have emerged as the method of choice for business information and transactions.

20 New Boilers Increase Hot Water Supply New heating and hot water boilers maximize efficiencies.

32 Elevators: Proprietary or Non-Proprietary Increased competition needed in the elevator industry.

36 Choosing the Right Water Heater Commercial water heaters come in many sizes and types. A little research can help you decide which type of heater best meets your needs.

40 Equipping Your Laundry for Efficiency Transforming your laundry room into a community space requires taking a good look at the equipment and upgrading where necessary.

22 Multi-facts 42 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: >

CMHC Program

Conventional Financing

Construction Financing

Small Loans Program

Make First National your first call. Contact us today, and we will customize a mortgage solution for you.

www.firstnational.ca

Vancouver

Calgary

604.681.5300 800.567.8711

403.509.0900 888.923.9194

Toronto

416.593.1100 800.465.0039

Montreal 514.499.8900 888.499.1733

Halifax 902.452.0776

editor’snote

New columnist joins the team In this issue, Canadian Apartment Magazine welcomes a new contributor, Andy Schwartze, the founder of IMS (Insurance Marketing Services). The company offers marketing advice to insurers and risk management services to corporate insurance buyers. They are also active on the educational front, offering seminars to general insurance brokers wishing to improve their knowledge of specialty commercial insurance products. Andy is a former instructor for and past president of The Insurance Institute of Ontario. As such he has a long involvement in the development and teaching of specialty topics to other insurance professionals. Andy’s career also includes extensive consulting and brokerage work, as well as familiarity with the U.S., European and Canadian insurance markets. He has agreed to share his knowledge with the readers of Canadian Apartment Magazine on a regular basis. In his first column, he explains how insurance companies calculate the amount of risk they are allowed to take. Elsewhere in this issue we take a look at a new Victoria-based real estate investment company, League Assets Corp. Through a private REIT and a series of limited partnerships the company is putting together a portfolio of income producing properties that aim to produce intergenerational wealth for investors. We also take a look at competition in the elevator maintenance, installation and modernization business. Our writers, Phil Staite and Dave Balmer of Quality Allied Elevator, take the position that competition within the elevator business would intensify if building owners and managers insisted on non-proprietary software and control systems when specifying elevator installations or modernization of existing elevators. On the technology front, Peter Altobelli explains how building owners can benefit from portals, a secure, seamless conduit between a website and operating databases. They allow selective real-time access to crucial business information and transactions while simultaneously capturing data directly into a property management system.

Randy Threndyle Editor randy@hushmedia.ca

Quoteworthy

“Always use the services of companies which clearly state and can prove that they provide only 100 per cent non-proprietary software and equipment.”

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 Peter Altobelli Dave Balmer Dick Casey Larry Rothman Andy Schwartze Phil Staite 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

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

www.metcap.com

insurance

How

INSURANCE Works

Insurance companies are really in the investment business. By investing your premiums they create large cash pools which work to increase or reduce your premium. By Andy Schwartze

With the introduction of this column we’re going to try and focus on insurance topics that are interesting, and perhaps even amusing, at times. Insurance can be a dull topic and most of our clients know the fundamental issues that drive the cost of their insurance. Or do they? Things are not always what they seem to be, so let’s find out how this business really works. Property and casualty insurers really don’t like being in the insurance business. How can one possibly predict the level of claims that are to be expected in a given year, or for that matter claims that surface much later and are traceable to years for which the accounting books have long since been closed. I certainly would not want to give someone long-term access to my bank account, in exchange for a few dollars of premium. At best, that’s a risky business deal. Better to take one’s chances with oil. Insurance companies are really in the investment business. They want our insurance premiums today, so that they can invest them tomorrow morning and not have to sell the investment until you or I present a claim. The time delay, from 10 Canadian Apartment Magazine

THE ONTARIO GOVERNMENT IS COMMITTED TO THE INSTALLATION OF SMART SUB-METERS THROUGHOUT THE PROVINCE

–

THE TIME TO ACT IS NOW.

WHO WILL DELIVER

the smartest solution

FOR INSTALLING SMART SUB - METERS ?

THE SMARTEST SOLUTION IS ONE OF THE MOST RESPECTED NAMES IN THE ENERGY BUSINESS. Escalating electricity prices can affect your bottom line, particularly if your building uses traditional bulk meters to measure electricity use. Enbridge Electric Connections delivers customized smart sub-meter solutions that lower operating costs and encourage energy conservation. Smart sub-meters provide equitable allocation of electricity costs and studies show that when residents have control over their electricity bill, overall consumption decreases by up to 25%. Whether you’re planning a new development or retrofitting an existing property, Enbridge Electric

will seamlessly integrate a smart sub-metering solution into your plans. It’s risk-free; there’s no upfront capital cost, and cash flow is improved because Enbridge Electric pays the utility and bills the suites directly. From installation and maintenance, to meter reading, billing, customer service, education and emergency response, Enbridge Electric delivers the industry’s most comprehensive smart sub-meter offering. As part of North America’s leading energy distributor, Enbridge Electric is the smartest solution.

For a no-obligation evaluation, call Wendy Mortson at (905) 747–5571.

insurance

“On a very simple scale, an insurer must have $40 of safely invested capital for every $100 of premium that it wishes to take in.”

premium collection to payment of claim, creates a large pool of capital, temporary though it may be, that generates investment returns for the insurer. A robust investment climate helps keep premiums lower and at times even promotes some serious competition for your insurance dollar. But this is only one half of the story. The other is the regulation of insurance capital by the Federal Superintendant of Insurance. On a very simple scale, an insurer must have $40 of safely invested capital for every $100 of premium that it wishes to take in. Note that the relationship is between capital and premium. Using somewhat higher numbers, this means that a capital base of $400,000 will allow an insurer to take in $1 million of premium. The trick is to make certain that the $1 million of premium covers all of the claims arising from that pool of clients. Claims that amount to less than the premium billed will grow the capital pool, and where they exceed the premiums taken in they shrink the capital pool. How an insurer pick its clients, so as to ensure this works to its benefit, will be covered next time.

Andy’s Tip Off Some of us continue to try and get around paying higher premiums for cars being operated by underage drivers. I recently discovered that a client wanted to register a fourth vehicle in his company name with himself as the only driver. Get a grip – it’s doubtful a court would allow someone to be that blatant.

At the end of the year, our small insurer may have made money in underwriting. Let’s assume the $1 million of premium taken in left it with a $100,000 “underwriting profit”. Add that $100,000 to the $400,000 of safe capital already in hand and, in the next year, the insurer can take in $1,250,000. We call this “capacity” to write business. In other words, $1 of capital allows $2.50 of premium income. Of greater concern is where the underwriting operation posts a loss of $100,000. This claims deficit must come from its safe capital. Suddenly our little insurance company has only $300,000 of that pool remaining. In the following year, therefore, it must trim its premium intake to a mere $750,000. When insurers make money they roar ahead, sometimes foolishly, and do what they must to grow the premium income. But when they lose money, not only do they have to pare their premium levels, they have to do so by closing out accounts and re-pricing what they can keep. It’s an exponential collapse of market “capacity” that makes life very difficult for many insurance buyers, with some being entirely pushed out of the system. The impact that investment and underwriting results have on property and casualty insurers result in this sector’s pricing being subject to some serious mood swings. As is to be expected, each carrier watches the others carefully and thus the entire industry goes in the same direction at once. When times are good, clients benefit significantly, but when times go bad hold on to your hat. Fortunately it doesn’t happen too often. CA M

Andy Schwartze, BSc, MBA, CIP, is an insurance broker specialized in property management and real estate. He is a former president of the Insurance Institute, has taught in the community college system and provides continuing education to other brokers. He can be reached at andy@ takecover.ca 12 Canadian Apartment Magazine

“Yardi Voyager streamlines our operations and provides customized reports to fit our property management needs.” Dean Pandurov, CEO PAN Group Properties

Yardi congratulates PAN Group Properties and wishes them continued success. For the fourth year in a row, PAN Group Properties was voted “Best Property Management Company” by Durham Business Times. Yardi is proud to be part of the infrastructure that helps PAN Group Properties provide their clients with superior service. Using Yardi Voyager™ and Yardi ASP Hosting Services, PAN Group Properties expertly manages residential, commercial, and self-storage properties in Ontario, Canada.

For more information, call 1- 8 8 8- 569 -2734 or visit us online at www.yardi.com

WHOâ&#x20AC;&#x2122;S WHO TOP TEN 2008

08 Apartment Own Only millions of sq. feet

Apartment Manage millions of sq. feet The Regional Group of Companies

20.000

Homestead Land Holdings Limited

18.634

Gateway Property Management Corporation

15.699

Sun Life Assurance Company of Canada

2.544

GWL Realty Advisors (includes Vertica)

12.988

Lanesborough Real Estate Investment Trust

1.737

Metcap Living Management Inc.

12.960

Dorset Realty Group Canada Ltd.

0.625

The DMS Group

11.030

Glen Corporation

0.510

Greenwin Property Management Inc.

8.000

Canadian Urban Limited

0.184

Minto Developments Inc.

7.150

Industrielle Alliance

0.104

Briarlane Rental PM & Briarlane Condo PM

6.602

Huntingdon Real Estate Investment Trust

0.014

Shelter Canadian Properties Limited

5.879

Colliers International

3.866

14 Canadian Apartment Magazine

Apartment Own & Manage millions of sq. feet Boardwalk REIT

29.960

RealStar Management

26.000

Cap REIT

23.708

Transglobe

23.400

Minto Developments Inc.

7.799

Greenwin Property Management Inc.

7.000

Park Property Management Inc.

6.843

Morguard Residential

5.933

Berkley Property Management Inc.

5.400

Globe General Agencies

4.700

technology

Portals A Window to New Efficiencies

By Peter Altobelli

Achieving competitiveness, convenience, and green objectives requires that real estate business owners, clients, tenants, and service providers perform their complex interactions as efficiently as possible. That’s why portals—secure, seamless conduits between a website and operating databases—have emerged as commercial and multifamily real estate participants’ method of choice for gaining selective real-time, point-to-point access to crucial business information and transactions. Today, top real estate software providers offer an integrated portal solution for website content management, design, and an expandable Web presence as part of their suite of real estate products. This solution delivers numerous marketing and customer functions while simultaneously capturing data directly into a property management system. Used to their full advantage, portals can drive efficiency into every transaction, delivering a significant competitive advantage. Advantages for Commercial Operators Portals are highly useful to commercial property managers in several ways. Building calendars: Tenants can post upcoming cultural and entertainment events on building calendars, creating a

16 Canadian Apartment Magazine

sense of community. They can also contain key information such as construction updates and fire drills. Concierge services: This marketing-oriented feature lets property managers increase revenue by advertising additional services ranging from package pickup to securing tickets to sporting events. Emergency portal: Activating an “emergency portal” is critically important in fires, floods, and other catastrophes. They provide evacuation plans, shelter data and other important information, along with a message board. Green orientation: Portals support green initiatives by letting you eliminate the costly storage and distribution of property management documents. Lease-specific documents can be uploaded securely for access by authorized users. Tens of thousands of investors can receive financial reports online. If you’re generating a one hundred-page report, how much time and money could you, the property owner, save by avoiding production and mailing costs or enlisting thirdparty help in compiling such a document? Retail sales data recording: If you have retail tenants, portals eliminate the hassle of collecting sales data by giving tenants the “Input Sales Data” form. Tenants can enter their information online in seconds. This information is

THE ONTARIO GOVERNMENT IS COMMITTED TO THE INSTALLATION OF SMART SUB-METERS THROUGHOUT THE PROVINCE

–

THE TIME TO ACT IS NOW.

WHO WILL DELIVER

the smartest solution

FOR CONTROLLING ELECTRICITY COSTS ?

THE SMARTEST SOLUTION IS ONE OF THE MOST RESPECTED NAMES IN THE ENERGY BUSINESS. Escalating electricity prices can affect your bottom line, particularly if your building uses traditional bulk meters to measure electricity use. Enbridge Electric Connections delivers customized smart sub-meter solutions that lower operating costs and encourage energy conservation. Smart sub-meters can reduce peak energy demand and studies show they decrease overall electricity consumption by up to 25%. Whether you’re planning a new development or retrofitting an existing property, Enbridge Electric

For a no-obligation evaluation, call Wendy Mortson at (905) 747–5571.

technology

“Portals let owners and operators expose available space to the public or to selected brokers.”

entered directly into the property management software system, streamlining the billing process by automating the percentage rent calculations and reconciliations. Security: Commercial property managers seeking to streamline entry procedures for visitors can activate the security pass application feature, which notifies the security desk and the guest of the date/time of visit and the type of identification required to enter the building. Space availability: Portals let owners and operators expose available space to the public or to selected brokers. Top-of-theline real estate software packages transparently handle such back-end tasks as options and encumbrances, ensuring that availability status remains updated. In addition, requests for space can be added to tracking applications that let managers assess their deal pipeline. Tenant ledger: Tenants, with proper authorization, can review their base rent, common area maintenance obligations, and ledger information for the current month or any prior period.

Integrated Solutions for Multifamily Properties And just what can portals do for multifamily managers? By uniting all participants—prospects, residents, employees, investors and service providers—in a common site, they promote efficiency in a number of areas. Automation: All communications and transactions, including AP and AR, can be done automatically, cutting time needed for manual input. Fruitful collaboration: Each participant—vendors, owners, and residents—can have a dedicated portal. A resident portal, for example, accommodates rent and bill payments, message posting, personal information updates, maintenance requests, and other functions ordinarily performed by accounting, personnel and other departments. Gaining residents as collaborators in this fashion promotes pride of ownership, which is as important in multifamily as it is in commercial.

18 Canadian Apartment Magazine

Marketing: Driving your business’s critical mass—residents, vendors, investors, employees, service providers, etc.—to portals offers an opportunity to deploy effective messaging for sales, services, and other actions. Illustrating buildings and space/unit availability, giving prospects virtual tours, booking appointments, and generating prospect records directly to a production database, in real time, are other examples of portals’ utility as a marketing tool. Reporting made easy: Investors receiving financial reports can number in the tens of thousands. If you generate a one hundred-page report, for example, how much time and money could you, the property owner, save by avoiding production and mailing costs or enlisting third-party help in compiling such a document? Resident empowerment: Portals give residents the power to pay rent, view ledgers, load work orders, access forms, manage documents, lodge service requests, and perform a myriad of other functions quickly, at any time, with minimal paperwork. Service made easy: Service providers can go online to load invoices, bid on prospective jobs, and check maintenance requests. Forward-thinking real estate interests are quickly grasping the significance of portals in streamlining operations and unifying stakeholders. Whether it’s competitive advantage, efficiency, customer service, environmental sustainability or return on investment, portals can be a significant factor in helping residential and commercial real estate owners and managers attain all of these business goals. CA M

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.

casestudy

Boiler System Increases Availability of Hot Water in CAP REIT Apartment Buildings While Saving Energy CAP REIT CANADIAN APARTMENT PROPERTIES REAL ESTATE INVESTMENT TRUST

Buildings situation: 4000 Lawrence Avenue East – 144 Suites 4010 Lawrence Avenue East – 200 Suites 1050 Markham Road – 294 Suites 370 McCowan Road – 207 Suites 10 Tuxedo Court – 210 Suites

Problem As part of their due diligence process, when CAP REIT purchased 5 new properties, they determined that the large tenant population was putting excessive demands on the domestic hot water system. Under the previous owners, this had resulted in frequent breakdowns of the equipment and numerous complaints such as insufficient water during peak times and low water temperature. • Excessive demands on domestic hot water system • Frequent breakdowns • Ongoing complaints - insufficient hot water

Analysis The domestic hot water system was inadequate to meet the needs during peak times. In addition, the heat control and distribution was inaccurate because of old heat controllers and defective zone control valves. Energy was wasted, operating the heating systems at higher overall temperatures than required, while some tenants opened their windows to reduce the heat. Frequent breakdowns resulted from poor maintenance and operation over the years. 20 Canadian Apartment Magazine

Size: 1055 Suites housing 4900 tenants Age of buildings: 27 to 30 years New Central Boiler System Lighting Upgrades

CAP REIT turned to Enbridge Gas Distribution, for solutions to these problems.

Solution As part of CAP REIT’s strategy to enhance short- and longterm value of their properties through preventive maintenance and repair, CAP REIT approved a comprehensive program to replace their heating and domestic hot water boilers in the buildings. High efficiency heating boilers and controls were selected and the new system was designed to integrate space, hot water, ramp and pool heat. To maximize peak system operating efficiency, CAP REIT also opted for a centralized controller that incorporated setback control, trend following processors and isolation of heating equipment to eliminate radiant heat loss during standby periods. And, they put in place a preventive maintenance and repair plan. Since the work had to be completed during the heating season, the mechanical contractors had to construct temporary heating and domestic hot water systems to minimize disruption of services. Essential service disruption was done during the night to minimize tenant inconvenience. CA M

'08

Huebsch Makes it Easy to GO GREEN in

Boasting one of the largest lineups of U.S. Department of Energy compliant commercial washers, Huebsch offers Exceptional Choices for water and energy savings. These models are available with high-end digital displays showing vend prices and cycle countdown to make community laundry rooms more efﬁcient and attractive to residents.

Ultra High Efficiency — '08 Horizon® Front Control Washer • Water and energy efﬁcient — uses only 56.0 liters per cycle

NELW oad

Big r! Doo

• Industry leader in Modiﬁed Energy Factor (2.16) and Water Factor (5.2)

15.5"

• NEW Big Load Door offers 131% larger opening, for easy loading and unloading, and an attractive glass door • Coin or card vending options • High speed extract (1,000 RPM) • ADA compliant

Horizon Savings* Water — 57% Energy — 69%

High Efficiency — '08 Topload Washer • Water-Saver cycle reduces water usage to 89.7 liters per cycle • Automatic temperature control meters amount of hot water used to save energy for hot and warm washes • Uses selectable Hot-Warm-Cold washes with Normal, Permanent Press and Delicate cycles

Topload Savings* Water — 29% Energy — 39%

DOE Compliant

Huebsch’s '08 washer models are the most efﬁcient we have ever built, and reﬂect the company’s commitment to offering both front and topload machines that meet or exceed U.S. Department of Energy standards. Call today for a FREE laundry room cost analysis from an authorized Huebsch Route Operator.

ct Contaay! Us Tod

*Savings compared with '06 topload washer models.

(920) 748-3121

www.huebsch.com/property

Commercial Built to Last Longer

ecline s, the ration e-unit y side, n B.C.

ned a clines 5.1 in nd 4.3

adian ability higher cancy use of onton, rates ing to mbers y and cancy ble in d one

room ere in 1,061) ) and r twos were

Newmarket: Hamilton/Burlington:

multifacts

905-830-0400 905-570-8788

Or 1-800-GET-ROTO Study Reinforces City’s Focus on Rent Supplements

CMHC & Conventional Mortgages for: Multi-Family Rental Properties Senior’s Housing Projects Commercial Properties Construction Projects

Vancouver Brian D. Kennedy Phone: 604-685-1068 Fax: 604-683-2787 Email: vancouver@peoplestrust.com

The GTAA submitted the study to the City’s Affordable Housing Committee on April 26. It states there is no pressing need to expand the supply of affordable housing, given the current and anticipated levels of vacancies. “Many rental opportunities already exist at the level (80 per cent of average) that is proposed for the new program. Moreover, for available units with rents above that 80 per cent threshold, rent supplements could be used to augment the supply of units at the 80 per cent threshold.”

Toronto Michael Lombard Phone: 416-368-3266 Fax: 416-368-3328 Email: toronto@peoplestrust.com TM

www.peoplestrust.com january/february 2008 21

FOR ALL YOUR AQUATIC, FITNESS & SPA NEEDS

• Facility Management and Stafﬁng • Fitness Equipment Sales and Service Stocking Distributors of:

The study, entitled “Rental Market Opportunities in the City of Toronto – Implications for Assisted Housing Programs”, was commissioned by the Greater Toronto Apartment Association. It demonstrates that rental supplements eliminate the expense and disruption of moving tenants out of their homes and into social housing units while creating opportunities to leverage the existing surplus of private rental apartments and house more families. By pursuing a rental supplement program, the city also avoids the financial risks associated with the construction of new rental housing. As development costs continue to rise, there is considerable risk that the financial requirements needed to construct new housing will be higher than expected.

Calgary Read Jones... Ad Dennis Aitken or Chris Hudson Phone: 403-237-8975 Fax: 403-266-5002 Email: calgary@peoplestrust.com

• Pool, Spa, Sauna Construction, Service and Supplies

The most effective way for the City of Toronto to provide affordable housing is to deliver rent supplements to tenants, according to a study by housing analyst Will Dunning. It is consistent with the City’s Housing Opportunities Toronto (HOT), An Affordable Housing Framework that calls for expanded rent supplements to assist more than 60,000 households over the next 10 years, along with repairing and building new affordable housing.

Approximately 8,500 rental apartments currently sit vacant in Toronto. The study reports that vacancies are widely distributed across the city and there are considerable vacancy rates at all rent levels, in particular for units with below average rents. During 2009 and 2010, the study estimates there will be 10,000 or more vacant rental apartment units in the city. “There is clearly a significant opportunity to make greater use of vacant units within the existing rental stock,” said Mr. Dunning. “The City could assist about 50 per cent more low-income households if it used a rent supplement approach (which provides the flexibility of providing partial rent subsidies) rather than paying for the construction of new units.” Even with average market rental rates remaining static, many working families struggle to make ends meet. Any changes to their finances – job loss, unexpected expenses, etc. – can lead to the loss of their home and further challenge the city’s ability to provide residents with affordable housing. “The city is on the right track in proposing a mix of approaches to address the shortage of affordable housing,” said Brad Butt, President of the GTAA. “This study reinforces the cost-effectiveness of expanding the existing rent supplement program to assist more working families in affording their rent and staying in their homes. With rent supplements, the city can start providing assistance immediately, rather than having to wait up to two years or more to develop new housing.”

Hamilton Landlord Sentenced to 135 Days in Jail A Hamilton landlord, Stephen Birch, was jailed 135 days after being found guilty in April of nine violations of the Ontario Fire Code. He was given 15 days for each conviction. Birch, who did not attend the hearing, had previously served 70 days in the Hamilton-Wentworth Detention Centre after being convicted five months ago of seven code violations. Other Ontario landlords have been given sentences of 45 and 60 days.

AQUATIC, FITNESS & SPA GROUP INC.

(905) 501-7210 1-800-465-3062 www.pplgroup.com 22 Canadian Apartment Magazine

“In my 29 years in Hamilton, it’s the longest we have ever received as a jail sentence, keeping in mind that jail sentences are very rare,” said Chief Fire Prevention Officer Jim Winn. “This is about the third or fourth time I’ve seen a jail sentence.” Winn believes it will send a strong message to landlords. “I’m content that a significant jail sentence like this will be a wake-up call to other building owners. It will bring the realization they are accountable and responsible for complying with the fire code.” A bench warrant was issued for Birch’s arrest. Birch is the landlord of a three-storey lodging house where 13 people lived. Birch was convicted of, among other things, failure to construct a second exit from the basement, second and third floors, failure to install exit signs,

multifacts failure to provide a fire safety plan and failure to install an interconnected smoke alarm. He’s previously been fined $12,750 after being found guilty of other code infractions in the last two years.

Saskatchewan Government Rules Out Rent Control Provincial Justice Minister Don Morgan said the Saskatchewan Party government does not have rent control on its agenda. Calling rent control “problematic” and “not desirable,” Morgan addressed the Saskatchewan Rental Housing Industry Association (SRHIA) at its annual general meeting in April. “I can’t imagine a better way to kill an economic boom,” he told about 100 SRHIA members. With a 0.6 per cent and 1.6 per cent vacancy rate in Saskatoon and Regina, respectively, Morgan called the rental crunch a problem of a vibrant economy. While he acknowledged the need for programs to support those who struggle to afford housing, he said the solution should not come at the expense of landlords. “As a government we have to look at making sure that those people have adequate funding and we have to do that through Sask. Housing and the various mechanisms that we have,” he said. “We have to look at what their needs are and what housing is available for them.” Morgan said Saskatchewan is still adjusting to the booming economy and he believes a period of stability will lead to the creation of more housing. He added the Saskatchewan Party supports condo conversions because they open vacancies elsewhere. “Each new house that’s built, each new condo that’s being built, leaves one more place available somewhere else. That’s what our goal is, new construction and new development, and there’s a lot of new construction taking place,” he said. Morgan said rent control can actually exacerbate the crunch because if rents are low, landlords have more incentive to convert their property to more profitable condos. “If the rents are coming up, there’s greater inducement on an owner to keep it part of the rental pool,” he said.

A two-person task force was recently struck to find solutions to housing issues in the province. Morgan assured the members that the task force’s agenda is to figure out how to get more housing product on the market. Tom Hamon, SRHIA President, said his organization welcomes Morgan’s stance on rent control. “Judging by Mr. Morgan’s comments tonight I guess that (rent control) isn’t a concern anymore going forward, which was nice to hear,” he said. Hamon said rents are currently high because they were stagnant for a decade. “It would have been nice if they had gone up gradually over the last decade but they are spiking at the moment,” he said.

Increased Rental Assistance Offer to British Columbia Families The Government of British Columbia is expanding its Rental Assistance Program to make more families eligible for increased financial assistance. “We’re delivering on our Budget 2008 commitment to allow families earning up to $35,000 a year to be eligible for the program,” said Rich Coleman, the BC minister responsible for housing. “We’re also introducing a number of other changes that will make life easier for working families.” The changes will increase the program’s maximum monthly assistance benefits, introduce a $50 minimum monthly benefit and increase the rent ceiling used to calculate the amount of assistance a family will receive. Families with a dependent under 25 years of age who is enrolled as a full-time student will be eligible, as will families with a child of any age who is accepted as a dependent for income tax purposes due to mental or physical infirmity. The amount of assistance varies depending on household income and size, the amount of rent paid, and the area of the province where the family lives. To qualify for the Rental Assistance Program, families must have at least one dependent child, have lived in B.C. for the past 12 months, and have spent part of the last year working. Eligible families will receive between $50 and $765 a month depending on their circumstances.

Read Jones... Ad

June/July 2008 23

industryprofile

Aiming for the

BIG LEAGUES League Assets Corp., a Victoria-based real estate investment company, plans to make investors wealthy by creating intergenerational wealth. Through a private REIT and a series of limited partnerships the company is assembling a portfolio of income producing properties. By Randy Threndyle

In just over two years, League Assets Corp. has grown from a couple of guys with an interest in real estate investment to a company with 1,000 member partners who have invested $125 million in the company’s expanding portfolio. Based in Victoria, British Columbia, League is the brainchild of two entrepreneurs, Adam Gant, who serves as the company’s Chief Executive Officer and Emanuel Arruda, the company’s Chairman. The partners first met in 2004. Arruda was running his own marketing and design company and doing house “fix and flips” in the Victoria area. Gant was a real estate professional with a background in valuation and finance. At the time, says Arruda, “I was looking for a realtor who was also an investor so we could speak the same language.” That language turned out to be real estate syndication or what are often referred to as limited partnerships. Gant, who was looking for ways to grow the real estate side of his business, saw real estate syndication as a way of doing just that. He describes real estate syndication as “a more sophisticated form of group ownership for larger investment properties.”

24 Canadian Apartment Magazine

industryprofile

June/July 2008 25

industryprofile

“We’ve built League to put investors’ needs first. That’s a big change from the typical investment model.” But, as many investors know, real estate syndication is, or can be, a high risk investment. “There are all types of syndicators out there that have slightly different types of properties that they manage or develop. There are lots of bad stories and some good stories,” say Gant, adding “I knew I could be one of the good ones.” Arruda was also somewhat wary of the concept saying “I wasn’t going to be involved with something that was taking some elderly person’s life savings without being absolutely assured on paper that we’d have a vested interest in not just maintaining, but continually increasing, the value of that investment.” In order to develop a syndication plan that would be fair to both the investors and the managing partners, Gant developed what is now known as League’s Investment Guarantee. According to the guarantee, League takes no upfront ownership or income from the property for putting the syndication deal together. Instead, management earns its share only when the property increases in value—but not until the property is sold or re-financed. “If the property increases in value, management earns its 20 per cent of the increase; investors share in the other 80 per cent,” says Arruda. “This ensures that we only buy properties that produce returns that attract investors from the get go, but also have significant upside potential that can be realized in relatively short order. “At first the two partners offered their syndicated investments as single-property limited partnerships. As the portfolio has grown, their members began to look at other ways to increase the diversity of investments as well as liquidity. To do that, League launched a private real estate investment trust known as the IGW (Inter-Generational Wealth) REIT. There are other advantages stemming from the REIT, says Arruda. “For example, while a limited partnership can be a very advantageous investment structure – protecting investors from liability for debt and providing very favourable tax-

efficiency – it’s difficult to have money available in the pool to cash out investors before the project is complete and sold or re-financed. The REIT allows us to continue adding incomeproducing properties to the pool, thus providing both diversity and a cash reserve for investor liquidity. If an investor needs to redeem some units, he just needs to give notice.” A private REIT also gives investors who are tired of the volatility of the markets a more stable investment. “Most people are used to mutual funds and what they experience with financial advisors,” says Gant. “We’ve built League to put investors’ needs first. That’s a big change from the typical investment model.” That, he says, is a stable portfolio of incomeproducing properties that, unlike the stock market, doesn’t go up or down every day. He says the private REIT concept appeals to people who feel they haven’t had the best results from their investments, and want to remove the day-to-day volatility from their portfolio. The value of the properties in the IGW REIT is assessed every three months by Altus Helyar, a leading Canadian provider of independent real estate consulting and advisory services. It offers services that include annual property and portfolio valuation; acquisition and disposition services; and customized market research and legal support. At each quarterly revaluation period, properties that have increased in value get reappraised by Altus Helyar. That increase in net asset value is then divided up and added to the unit value of the IGW REIT units. Currently the IGW REIT units are valued at $1.083, up from a $1 value at inception in January 2007. The units pay a distribution of 10.05 cents per year, paid to the unitholders in monthly installments. When the distribution and the increase in unit value are taken together, Gant estimates continued on page 30

26 Canadian Apartment Magazine

Market intelligence. International expansion. Industry leadership. Continuous investment in our people, our tools and our process. We call it real estate consulting â&#x20AC;&#x201C; redefined. OUR FOUR PRIMARY AREAS OF EXPER TISE INCLUDE: RESEARCH,

COST CONSULTING

REALTY TAX

VALUATION AND

AND DEVELOPMENT

CONSULTING

ADVISORY

COST MANAGEMENT

GEOMATICS

Altus Group is the leading multidisciplinary provider of independent real estate consulting and professional advisory services worldwide. Altus Group has a national network of 31 offices in 23 cities throughout Canada and 8 offices throughout the UK.

altusgroup.com

industryprofile

LEAGUE BANKROLLS $1 BILLION PROJECT League Assets Corp. recently became the banking and finance

Although little development has taken place in the designated city

partner for a redevelopment project in Colwood, B.C. that could exceed $1

centre, Gant says it is a prime piece of urban real estate. It is bordered by

billion. If fully built out the 13.89 acre site would eventually have up to 3.5-million-

the Royal Colwood Golf and Country Club, a regional recreation centre

square-feet of residential, commercial and office space.

and 400 acres of endowment lands owned by Royal Roads University.

The site, at the corner of at Sooke Road and Goldstream Avenue, had been designated as the city centre for the City of Colwood since 1985, but little development has taken place on the property. Colwood is a suburb of Victoria.

“It’s surrounded by some fairly large green space. So you can image the attraction of these 11 towers rising up in these surroundings,” says Gant. There is also a CP rail line which could allow future light rail transit service to the site.

Developer Les Bjola, the owner of Turner Lane Developments and

Gant expects development will take place over 15 years. The first phase

master developer of the project, spent two and one-half years assembling

of the project will likely involve two or three towers plus underground

the property which had 15 different legal titles. Currently the site has a

parking. The development will be financed through a League-controlled

couple of strip malls and some houses, all of which will be demolished to

limited partnership known as CityZen LP. Given that there are 11 separate

make way for a high-density urban-core development. Eventually the site

building planned for the site, each building could be financed by a separate

could have as many as 11 high-rise buildings.

group of investors, says Gant.

Bjola says he intends to remain involved in the project throughout the

Since the project is a planned city centre, Gant says there is a lot of

development stage and has brought League into the project to act as

potential to create a new urban environment for the city of Colwood. “It

financiers. He expects the project to be developed in phases, with limited

not something where we just build it out and hope people will come. We

partnerships being formed to finance each stage of development.

really have to tailor and focus each part so it meets the needs of investors

Since zoning on the site is flexible, Bjola says market forces will decide

and potential tenants,” he says.

the eventual use of the site. “We could have more commercial and less

To help with that League has hired Ron Taylor, a development manager

residential or more residential and less commercial. It is purely driven by

who worked on the Canary Wharf project in London and the World

the market.”

Financial Center in New York.

Bjola, who has been active in the Victoria real estate industry for

While the Colwood Corners redevelopment is far and away the biggest

the past 25 years, is also the project developer of Bear Mountain

project ever taken on by League, Gant has confidence that the company

Resorts, a 1,200-acre master-planned golf resort and spa, located just

will be able to do more projects like this in the future. “Since we raise the

outside Victoria.

capital, we have the flexibility to do more projects,” he says, adding: “The

Adam Gant, CEO of League, says the site has zoning for office, retail, residential, hotel, and seniors’ housing. Plans also include an arts and cultural centre and some municipal buildings.

28 Canadian Apartment Magazine

sky’s the limit.”

Reed Pope LLP is a British Columbia law firm acting as a gateway to clients doing business in or from Western Canada. We concentrate our practice in the areas of business and finance, real estate, and construction law in order to provide exceptional expertise and personal attention in the areas of law important to our clients. Our business and real estate practice includes transactions, equity and debt financings, and land development, with particular emphasis on resort development. Our construction practice includes contract development, advising throughout the construction process, and dispute resolution. We are senior lawyers with expertise gained through years of experience providing unequalled counsel and service.

REED POPE LLP congratulates League Assets Corp. on its success. We look forward to working with you as you continue to build upon your achievements.

League Assets Corp. 1-877-772-8836 217-2187 Oak Bay Ave. Victoria, BC V8R 1G1

adam@league.ca

With practice expertise in: Real Estate Development spope@reedpope.ca

Corporate and Finance rkreed@reedpope.ca

Construction Law jhall@reedpope.ca

Reed Pope LLP Lawyers Suite 200 | 848 Courtney Street, Victoria, BC V8W 1C4 Canada T 250.383.3838 | F 250.385.4324 | www.reedpope.ca

industryprofile

continued from page 26

the total return for investors has exceeded 15 per cent per year, a figure that he is “confident” can be maintained into the future. The concept of the IGW REIT is based on what League calls “intergenerational wealth” (a term the company has trademarked). That means it is aimed at long-term investors. “Everyone knows we revalue the units every three months, but we didn’t want any day traders buying up units just to sell them weeks later,” says Arruda, “So we have had to introduce a disadvantage to sell. Now, if you sell your units within the first three years, you leave behind five per cent of the value of the unit. This value stays in the REIT, so all investors gain when day traders exit.” That, he says, prevents people from buying units the day before the revaluation and selling them the day after. If that were allowed League could be forced to sell a property to meet the redemptions. “What we have created is meant to be a longterm, stable investment,” says Arruda. Since the company’s investments, like limited partnerships, are being put forward through an offering memorandum, rather than a prospectus, investors from Ontario and Quebec must qualify as accredited investors. If they do not qualify as such, securities regulations stipulate that they must invest a minimum of $150,000. Rules for accredited investors are available from the securities and exchange commission in each province. People outside Ontario and Quebec can invest any amount they choose. Arruda says unit holders have invested anywhere from a few thousand to a few million dollars. Currently the REIT holds 30 properties made up of residential, commercial and retail developments in Alberta, British Columbia, Saskatchewan and Ontario. The company is 30 Canadian Apartment Magazine

also looking at multi-residential properties, but only ones that can be stratified, or converted to condominiums Condo conversion, says Arruda, is one way to release the locked-in value of multi-residential buildings. Where an apartment building might be worth $80,000 to $90,000 per unit, the same building converted to condo might be worth more like $200,000 per unit. Gant says the goal of the condo conversion strategy is to allow unit holders or limited partners to own the individual apartments and rent them out. “We don’t necessarily intend to divest the property. We’re trying to maximize its value for the investors every way we can. After all, the more they make, the more we earn.” Right now, says Gant, the company is looking for properties in Alberta, Manitoba and Ontario, where condo conversion is allowed. In British Columbia, condo conversion is only allowed in certain areas. Victoria and many areas of Vancouver have a moratorium on the practice, but smaller B.C. communities with higher vacancy rates still allow condo conversions to take place. Typically, says Arruda, it takes three to five years to get the rezoning and permits to turn an apartment building into a condo and sell off the units. All of League’s buildings are managed by third-party property managementcompaniesworkingto“rigorousstandardsestablished by League,” says Arruda. “We hire a third-party manager because what we specialize in is providing high-yield investments to our member partners. We have a relatively small staff, only 22 people, so we want to be focused on asset management and the investment banking side of the business,” he says. Another way the company aims to reduce overhead and increase the return to member partners is through a concept called a “closed-loop management structure.” It includes the structure of the purchase, making sure the day-to-day management of the properties is done economically and launching co-operative marketing programs with tenants to increase traffic and business. “We look at every possible way to reduce expenses, raise incomes and increase the unit value,” says Arruda. Another aspect of League that differentiates it from other real estate investment companies is that it has no in-house salespeople. Investor concerns are looked after by Member Services Managers. If people phone or ask for information on League they are sent a copy of the company’s Blue Book of Real Estate Syndication. The 80-plus-page Blue Book, which was written by Arruda, explains the concept of real estate syndication and is intended to answer any questions a potential investor might have. “If anyone calls,” says Arruda, “I tell them: I’ll send you the Blue Book and if you are interested after you’ve read it, you can call us. Most investors are good with that. Our philosophy is to provide people with enough information so that they can make their own informed decision.” Written materials, like the Blue Book, he says, reduce the chance that a potential investor could be misinformed. “Everyone gets the same promise and it’s on paper,” he says. CA M

propertymaintenance

ELEVATORS

Proprietary or Non-Proprietary … That’s the Question To ensure that a building runs efficiently and profitably, building owners and managers need an elevator maintenance company that is part of their operational team. They should be able to choose the elevator company that best meets their requirements. This can only be done by increasing competition within the elevator industry.

By Phil Staite and Dave Balmer

Once upon a time (the 1970s) in a suburb not too far away, an elevator manufacturer (The Boss) had just concluded an interesting meeting with his new Chief Electrical Designer, (whom we will call Rolf). As The Boss stood by reflecting on the new data that had just been presented to him, Rolf was in the process of shutting down the elevator control simulator that had just demonstrated his new designs and he was feeling pretty good. The Boss had even patted him on the back as he walked away from the test bench with a wry grin on his face. Rolf contemplated his earlier comments to The Boss and wondered which one had pleased him so. What had he said? “Well Boss, this new design works like a dream as you have just witnessed. It will save us a tremendous amount of money, will be extremely reliable and will offer our customers the latest benefits in this new solid-state elevator programmable electronic. There is no downside to this system that I can see.” As an afterthought he had added laughingly: “The only thing is you better hope that I don’t get hit by a truck on the way home because right now I am the only one who knows how to fix the programming if anything goes wrong!”

32 Canadian Apartment Magazine

Unknown to Rolf, it was that last comment he had made that caused The Boss to smile. He had built a very successful company over the years by ensuring his company was resourceful and creative and as he was also an astute and creative businessman, he had immediately grasped the significance of the last statement uttered in jest by his chief designer. Elimination of competition!

Similar Controls In the 70s and prior years with few exceptions, elevator controls were all very similar in that they were designed with analog systems of relays, contactors, mechanical timers and miles of 18 to 20 gauge wires to connect them all together. Sure the schematic designs themselves varied, but in essence elevator controls were for the most part, all very similar and components were standard and available throughout the industry. Experienced elevator mechanics could service the elevator control systems and successfully troubleshoot problems. For this reason, many smaller service and maintenance companies

propertymaintenance were “popping up” in large urban centres creating competition for service and maintenance contracts. As building managers became more sophisticated they understood that a good preventive maintenance program for their elevators would save the building money and reduce elevator downtime. The building managers understood that the elevator system was an important component in their building’s operation and could also influence occupancy and rental rates, and therefore, directly influence the profitability of the building. As elevator maintenance became more important to the building’s operation, it became an increasingly important source of revenue to the elevator manufacturing companies. The elevator manufactures did not want to lose the maintenance revenue on the elevators that they had designed and installed. If we go back to The Boss, we can now understand why he was so pleased about his Chief Electrical Designer’s comment. He was astute enough to recognize that he now had a tool available to control who won the maintenance and service contracts once the elevators were installed. If his Chief Electrical Designer (or his hand-picked personnel) were the only ones who could service the new “programmable controls”, then competition would be eliminated on the new elevator equipment. They could also program a shutdown timer on the new controls so that elevators could be turned off automatically and could only be turned back on by a special programmable tool owned only by the manufacturer. The manufacturer could also control the selling price and delivery of all proprietary material if they chose to make it available on the market. Thus was born the proprietary form of programmable elevator controls. Competition within the elevator industry will be intensified by insisting that only non-proprietary software and control systems are quoted for a modernization, a new installation or replacement elevator equipment. Of course there are many other parameters that are also important when specifying a new elevator or modernization or major repair, but one statement that must be enforced within the contract documents is one similar to the following: Bidders must ensure that only non-proprietary software and hardware is provided for this project. Full and complete instruction manuals for program alterations must be provided to the owner with the final documents.

Conclusion Always use the services of companies which clearly state and can prove that they provide only 100 per cent non-proprietary software and equipment. CA M

Phil Staite and Dave Balmer are employees of Quality Allied Elevator, an elevator maintenance, installation and modernization company, located in Markham Ontario. They can be reached at 905-305-0195.

34 Canadian Apartment Magazine

THE ONTARIO GOVERNMENT IS COMMITTED TO THE INSTALLATION OF SMART SUB-METERS THROUGHOUT THE PROVINCE

–

THE TIME TO ACT IS NOW.

WHO WILL DELIVER

the smartest solution

FOR REDUCING YOUR OPERATING COSTS ?

THE SMARTEST SOLUTION IS ONE OF THE MOST RESPECTED NAMES IN THE ENERGY BUSINESS. Escalating electricity prices can affect your bottom line, particularly if your building uses traditional bulk meters to measure electricity use. Enbridge Electric Connections delivers customized smart sub-meter solutions that lower operating costs, so you can reduce rent or condo fees while improving your building’s efficiency. Smart sub-meters provide equitable allocation of electricity costs and studies show that when residents only pay for what they individually use, overall consumption decreases by up to 25%. Whether you’re planning a new development or retrofitting an existing property, Enbridge Electric

For a no-obligation evaluation, call Wendy Mortson at (905) 747–5571.

propertymaintenance

Choosing the Right Water Heater Commercial water heaters come in many sizes and types. A little research can help you decide which type of heater best meets your needs. By Larry Rothman

Business owners and property managers should carefully consider their next water heater purchase. Commercial water heaters come in many sizes and types that meet a variety of different needs, depending upon the type of commercial applications involved at your location. Basic commercial water heaters for the majority of businesses are simply hardier versions of residential water heaters. This is the case in many small restaurant settings, small hotels and office buildings. However, before running down to the big box home improvement store and picking just any old model to replace your old one, it is important to ask yourself a few questions before you decide to buy. First, what sort of demand does your business have for hot water? Second, many restaurants and food service facilities may require a heater that delivers consistently hotter temperatures for sanitizing dishes and kitchen utensils. Does your business have this need? Third, would a gas or electric model best serve your needs? There are many on-line tools designed to help you figure out which size and type of heater would best suit your needs so it is best to do some research. Manufacturers produce all sizes of commercial grade water heaters ranging from six-gallon under-sink units to beyond 10,000 gallon industrial grade models. These come in a variety

36 Canadian Apartment Magazine

of sizes to meet all manner of demand. Water heaters are rated by their recovery rate. In other words, the number of gallons the unit can heat in one hour after the hot water in its storage tank has been exhausted. Several things come into play here. First, the larger the burner, the faster the recovery rate. Second, the larger the storage tank, the more hot water the heater can provide in that first hour. Third, the temperature of the incoming water is also a factor because it takes more energy to heat water to 49 to 60 degrees Celsius when it enters the heater at frigid temperatures as opposed to 10 or 15 degrees Celsius. Of course there are also boilers and tankless water heaters to consider for some commercial applications. Boilers fall outside the scope of this article and usually require boiler specialists to install and maintain. Tankless water heaters have long been common in Europe and Asia and are fast becoming popular in North America because they offer energy efficiency that cannot be matched by conventional heaters. Like conventional water heaters with holding tanks, tankless water heaters come in gas and electric models. Look carefully at the peak number of gallons per minute of hot water your business requires, because although they can provide an endless stream of hot water, a single tankless unit

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.

Call your Account Executive today at 1-866-567-5778 for more information or visit rogers.com/cma

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

propertymaintenance may not keep up with the demands of your business. Some models can be connected in series to address this problem but be sure that your building can supply enough power to run them without costly modifications at the breaker box. When no hot water is required, tankless water heaters are idle, which is what makes them so efficient. But when hot water is needed, they turn on and instantly heat water running toward the tap. As you can imagine, this requires a great burst

at peak efficiency. Some models more so than others, so know what you’re getting into before you buy. Be sure to follow the manufacturer’s recommendations and make sure you have a skilled plumber or maintenance man on a schedule to handle whatever needs to be done. For instance, gas water heaters need to have the flue (vent) cleaned annually or even more often for some commercial models. This is critical to ensure that dangerous emissions are

“When no hot water is required, tankless water heaters are idle, which is what makes them so efficient.” of energy to accomplish. However, tankless heaters usually require much less energy in the long run than keeping 60 to a few hundred gallons of water perpetually heated in a tank. Currently, many plumbers lack the experience to install and service tankless water heaters so you may pay a premium and you may also need an electrician to assist. The initial cost of a tankless heater is higher than that of conventional heaters, but since they’re environmentally friendly, the government offers a tax credit for which you may qualify. Tankless heaters currently represent a small segment of the market, but if energy costs continue to rise then you can rest assured that more and more plumbing companies will embrace and promote them. If a tankless model is not for you then you’ll feel better knowing that today’s conventional water heaters, with holding tanks, are becoming more energy efficient all the time. Manufacturers are creating better tank designs that provide more insulation and a higher degree of efficiency than ever before. When shopping, compare the heaters’ R-factors. The R-factor is a measurement of the amount of insulation surrounding the tank. The higher the R-factor, the slower the heat loss, thereby increasing efficiency and lowering operating costs. The R-factor range of most water heaters averages between 8 and 17. Residential models come with a lifetime warranty, but for commercial applications, the manufacturer warrants its heaters for fifteen years. That’s good when you consider that the average water heater lasts between nine and twelve years and comes with a three to five-year tank warranty. Commercial heaters, like residential heaters, require a certain amount of regular maintenance to keep them running

38 Canadian Apartment Magazine

properly vented outside. Likewise, burner ports need at least an annual cleaning. Water and sediment need to be drained at least every six months to help extend the life of the tank and prevent the heater from working too hard to keep up with demand for hot water. Most water heaters are equipped with anode (anti-corrosion) rods and many commercial models have multiple anode rods. These are the sacrificial rods made of magnesium or aluminum that attract corrosive minerals in the water so they don’t go after the steel tank and cause premature failure. These need to be replaced at regular intervals, often annually, and even more often depending on the heater and the hardness of your water source. Failure to replace them can also void the manufacturer’s warranty. While we’re on the subject of maintenance, you should know that tankless water heaters also require regular maintenance, which varies depending on the manufacturer and duty load. Yes, there is a lot to consider, but when in doubt, seek the help of an expert, either from a manufacturer’s website or from a trusted plumber. CA M

Larry Rothman is the plumbing director for Roto-Rooter Services Company, North America’s largest provider of plumbing and drain cleaning services. For more information, contact Stanley J. Collini, the owner and operator of Roto Rooter Plumbing and Drain Service in Toronto. To contact Stanley, visit www.rotorooter.com or call him at 416-503-4444.

Advertising Feature

.VMUJ 3FTJEFOUJBM *ODFOUJWF 4VNNBSZ )PX &OCSJEHF $BO )FMQ

1SPHSBN $POEJUJPOT

The following Incentive Guidelines apply to all Commercial projects:

&OCSJEHF (BT %JTUSJCVUJPO *OD Â˛&OCSJEHFÂł PGGFST GSFF UFDIOJDBM BEWJDF BOE ÂžOBODJBM SFCBUFT GPS JNQMFNFOUJOH FOFSHZ FGÂžDJFODZ JNQSPWFNFOUT 8F DBO BMTP JOUSPEVDF ZPV UP JOEFQFOEFOU CVTJOFTTFT UIBU DBO IFMQ ZPV XJUI ZPVS TQFDJÂžD FOFSHZ OFFET 5IF GPMMPXJOH DIBSU TVNNBSJ[FT ÂžOBODJBM SFCBUFT ZPV NBZ CF FMJHJCMF UP SFDFJWF

s " MM QSPKFDUT NVTU IBWF B 4JNQMF 1BZCBDL PG ZFBST PS HSFBUFS BOE NVTU IBWF B QPTJUJWF 5PUBM 3FTPVSDF $PTU 53$ UP RVBMJGZ GPS BO JODFOUJWF VOMFTT PUIFSXJTF BQQSPWFE 1SPKFDUT XJUI TJNQMF QBZCBDLT PG VQ UP ZFBST UZQJDBMMZ IBWF QPTJUJWF 53$ )PXFWFS &OCSJEHF XJMM DBMDVMBUF QSPKFDU FMJHJCJMJUZ PO B DBTF CZ DBTF CBTJT Â&#x2026; 1SPKFDUT JOWPMWJOH 0QFSBUJPOBM *NQSPWFNFOUT 4UFBN 5SBQT 4IPXFSIFBET $POUSPMT BOE /PWJUIFSN 1BOFMT XJUI MFTT UIBO ZFBST TJNQMF QBZCBDL BSF FYDFQUJPOT BOE NBZ RVBMJGZ GPS BO JODFOUJWF Â&#x2026; "OZ JODFOUJWF QBJE NVTU OPU FYDFFE PG UIF QSPKFDU DBQJUBM DPTU Â&#x2026; 4JNQMF 1BZCBDL JT DBMDVMBUFE BT GPMMPXT

&OFSHZ &GGJDJFODZ 'PS &YJTUJOH #VJMEJOHT 3FUSPGJU *ODFOUJWFT Â&#x2026; 0OF UJNF JODFOUJWFT BSF DBMDVMBUFE PO QSPKFDUFE ÂžSTU ZFBSÂľT OBUVSBM HBT TBWJOHT VTJOH UIF GPMMPXJOH SBUFT N TBWFE VQ UP B MJNJU SFHBSEMFTT PG UIF OVNCFS PG NFBTVSFT 03 N TBWFE VQ UP B MJNJU NFBTVSFT PS NPSF Â&#x2026; *ODFOUJWFT SFNJUUFE VQPO QSPKFDU DPNQMFUJPO

8BUFS $POTFSWBUJPO Â&#x2026; 4IPXFSIFBET 'SFF MPX ÂżPX TIPXFSIFBET XJMM CF BWBJMBCMF UP RVBMJÂžFE NVMUJ GBNJMZ CVJMEJOHT JO UIF &OCSJEHF GSBODIJTF BSFB Â&#x2026; $PNNFSDJBM $MPUIFT 8BTIFST JODFOUJWF QFS FMJHJCMF GSPOU MPBE XBTIFS SFQMBDFNFOU BWBJMBCMF UP RVBMJÂžFE CVJMEJOHT QVCMJD BOE QSJWBUF JOTUJUVUJPOT XJUI DPNNPO BSFB MBVOESJFT

5P HFU TUBSUFE PO BO FOFSHZ FGGJDJFODZ QSPKFDU GPS ZPVS CVJMEJOH PS GPS NPSF JOGPSNBUJPO DPOUBDU &OCSJEHF (BT %JTUSJCVUJPO BU 'BY FOFSHZTFSWJDFT!FOCSJEHF DPN XXX FOCSJEHF DPN CVTJOFTT

$POEFOTJOH #PJMFST Â&#x2026; N PG FTUJNBUFE OBUVSBM HBT TBWJOHT GPS DPOEFOTJOH CPJMFS UFDIOPMPHZ Â&#x2026; *ODFOUJWFT BSF B POFÂ°UJNF QBZNFOU CBTFE PO UIF FTUJNBUFE ÂžSTU ZFBS OBUVSBM HBT TBWJOHT VQ UP B NBYJNVN PG QFS CVJMEJOH GPS QSPKFDUT XJUI B TJNQMF QBZCBDL PG HSFBUFS UIBO ZFBST Â&#x2026; &OCSJEHF QSF BQQSPWBM SFRVJSFE

3FUSPGJU *ODFOUJWF (VJEFMJOFT

"VEJU *ODFOUJWFT Â&#x2026; $VTUPNFS JODFOUJWFT BSF DBMDVMBUFE CBTFE PO MPXFTU PG " N PG NPTU SFDFOU GVMM DBMFOEBS ZFBS PG OBUVSBM HBT DPOTVNQUJPO PG UIF CVJMEJOH T PS # UIF DPTU PG UIF BVEJU VQ UP PS $ UIF DPTU PG UIF BVEJU VQ UP JG DVTUPNFS SFDFJWFT BVEJU JODFOUJWFT GSPN PUIFS TPVSDFT Â&#x2026; "VEJU JODFOUJWF QBZNFOUT BSF Â˛DBQQFEÂł BU QFS DVTUPNFS )PXFWFS JG TVCTUBOUJBM XPSL JT JNQMFNFOUFE GSPN BVEJUT GVOEFE CZ &OCSJEHF &OCSJEHF NBZ JO JUT TPMF EJTDSFUJPO QSPWJEF BEEJUJPOBM BVEJU JODFOUJWFT Â&#x2026; "VEJU JODFOUJWF BQQMJDBUJPO BOE BVEJU TDPQF NVTU CF QSF BQQSPWFE CZ &OCSJEHF BOE NVTU NBUFSJBMMZ NFFU UIF SFRVJSFNFOUT PG &OCSJEHFÂľT )7"$ #VJMEJOH &OFSHZ "VEJU 3FQPSU 0VUMJOF

5PUBM 1SPKFDU $PTU .BUFSJBM *OTUBMMBUJPO &OHJOFFSJOH 5BY

$PTU PG "OOVBM &&1 7PMVNF 4BWFE N TBWFE Y $PTU QFS N

$POEFOTJOH #PJMFST Â&#x2026; 5IF CPJMFS NVTU CF BO VQHSBEF Â° GPS FYBNQMF SFQMBDJOH B DPOWFOUJPOBM BUNPTQIFSJD FGGJDJFODZ CPJMFS XJUI B DPOEFOTJOH FGGJDJFODZ CPJMFS Â&#x2026; 0 OMZ TQFDJGJD CPJMFST BOE JO TPNF DBTFT IZCSJE TZTUFNT BSF DPWFSFE CZ UIJT QSPHSBN Â&#x2026; #PJMFST NVTU CF $PNCVTUJPO &GGJDJFODZ PS HSFBUFS 4IPXFSIFBET &YJTUJOH TIPXFSIFBET NVTU CF NPSF UIBO (1. BOE OFX MPX GMPX TIPXFSIFBET NVTU CF FRVBM UP PS MFTT UIBO (1. "VEJU *ODFOUJWFT Â&#x2026; *ODFOUJWF GPSNVMB BMTP BQQMJFT UP 4UFBN 4BWFS 4VSWFZT BOE 0QFSBUJPOBM &OFSHZ "TTFTTNFOU "VEJUT . 5 QSPWJEFE CZ BQQSPWFE UIJSE QBSUJFT Â&#x2026; 'PS NVMUJ SFTJEFOUJBM B NJOJNVN PG PG OBUVSBM HBT TBWJOHT JEFOUJGJFE NVTU CF JNQMFNFOUFE UP SFDFJWF UIF BVEJU JODFOUJWF Â&#x2026; .JOJNVN OBUVSBM HBT DPOTVNQUJPO PG N QFS ZFBS GPS FBDI GBDJMJUZ JT SFRVJSFE UP RVBMJGZ GPS BO BVEJU JODFOUJWF * m3 refers to cubic metre of natural gas. 1. Per facility, building or project. 2. Before taxes. The â&#x20AC;&#x153;cost of the auditâ&#x20AC;? is the lesser of the estimated cost of the audit set out in the application form or the actual cost on the audit invoice. 3. Operational improvement projects exempted. Based upon applicable manufacturerâ&#x20AC;&#x2122;s combustion rating. To be eligible for Enbridge Gas Distribution Inc.â&#x20AC;&#x2122;s Energy Efficiency Incentive Programs you must be an Enbridge Gas Distribution Inc. customer and approved measures must be implemented in Enbridge Gas Distribution Inc.â&#x20AC;&#x2122;s franchise area between January 1, 2008 and December 31, 2008. This advertisement is a summary only and certain terms, conditions and restrictions apply. Programs are subject to cancellation without notice at any time. Please ask your Enbridge Gas Distribution Inc. representative and read our program literature for additional details. Enbridge Gas Distribution Inc. makes no representation, warranty or guarantee regarding the projected savings of any energy efficiency measure undertaken by any customer.

communityfacilities

Equipping Your Laundry for Efficiency By Dick Casey

Vibrant wall colors and bright lighting are just a couple of the facets we’ve discussed in past columns that can have a huge impact in giving your laundry a facelift. But changing the décor of the space leaves the project only half finished. To fully transform your common laundry room into an active and inviting community laundry space requires taking a good look at the equipment and upgrading this key element as well. This is an area where your route operator will be an invaluable guide. After all, the machines will become the centerpieces, so best to work with an expert who’s got good advice drawn from years (and numerous projects) of experience. In my last column, I stressed the important role efficiency plays in transitioning from in-unit hookups to the community laundry room. We already know that the community laundry concept generally reduces the waste of utilities that’s experienced when residents too frequently wash only partial loads in their units. Choosing the right washers and dryers for the community laundry space can amplify this efficiency further. Equipment Mix Your route operator will use general guidelines to assist in developing a mix of equipment to best serve your property in the space allotted. For instance, where families make up a high percentage of the property’s residents, one washer and dryer pair should be installed for every eight to 12 units. In properties serving a mostly senior demographic, one washer/ dryer pair can serve 25 to 40 units. Older, working adult populations could lower the figure to one washer/dryer pair for five to 20 units. Again, the goal is to best match these guidelines within the space. While it’s preferable to have more pieces than not

40 Canadian Apartment Magazine

enough, always keep your residents’ comfort and ease of use in mind. You definitely don’t want to stuff your redecorated space with too much equipment. If that happens residents can barely work around each other. Laundries that are roomy, quite simply are more inviting and get used. Don’t forget your focus in this redesign has been to attract and retain residents — and it’s a simple fact we are attracted to areas that offer us space. Also worth mentioning is you likely are competing with large, well-equipped vended laundries in the area. Your advantage is residents never have to lug their laundry out in the elements. Build on that advantage by not wavering in your focus on convenience. Now what style of equipment will work best to serve your residents’ needs and conserve resources? If obtaining the highest efficiency is the focus, Energy Star qualified frontloading washers will provide the best results in conserving water and energy. Owners replacing a laundry room of dated topload washers with energy/water efficient frontloaders will see an immediate positive impact. Many of today’s frontload washers use less than 57 liters per cycle versus 150 liters or more for old model toploaders. These are important figures to consider given the annual rate increases for water service throughout Canada for the foreseeable future. Regardless of if you are ready to totally redesign your laundry facility, there are savings to be had in water usage alone that can make upgrading to new, more efficient topload washers beneficial. Several factors should be used in comparing equipment when deciding what to install. Obviously efficiency will be a central component. A commercial quality design and rugged components also should weigh heavily in the decision. While your route

communityfacilities operator will service the machines, you still want the highest level of reliability. Residents who find “out of order” signs too frequently will see the laundry less an amenity and more of an obstacle to completing a chore. Extraction speed also should be considered for two reasons: • High-speed extraction means residents complete their dry cycle faster as loads have less water left in them. • Fast dry times mean reduced utility consumption and as a result reduced expenses. In addition, look at the overall cycle time for the washer. When residents can complete their laundry task in a short amount of time, that’s a benefit. Last, but certainly not least, is quality. Your community laundry space should be equipped with washers and dryers that deliver great clean results. Frontload washers certainly will provide the best efficiency, but many residents still may appreciate the familiarity of a toploader. One advantage of these units is the ability to add items (like that all-too-common “forgotten sock”) after the cycle has started.

Another important consideration for the laundry is whether your property has residents with disabilities. To meet their needs, you will want to install frontloading equipment with front controls. Again, check with your route operator to make sure the equipment meets the reach requirements of residents with disabilities.

In the next column we’ll take a look at payment and activation options to increase the amenity value of you property’s laundry. CA M Dick Casey is director of multi-housing sales at Alliance Laundry Systems, a world leader in manufacturing commercial laundry equipment. Casey has more than 35 years of experience in the laundry industry.

“No Extra Charge for Nights, Weekends or Holidays”

Specializing in Underground Garage Drain Cleaning and Pumping of Sump Pits

Drying Capacity Matching drying capacity to wash capacity is extremely important for the convenience factor. You definitely don’t want to create a beautiful laundry and not have enough drying pockets. Don’t forget that while your laundry should look nice, it also needs to be heavily focused on convenience. And if the laundry chore gets bogged down, it’s almost always going to be during drying. Your route operator will assist in making sure your laundry doesn’t have a bottleneck. To ensure adequate drying capacity, stack dryers can be particularly beneficial as they offer two dryers in the space of one. Stack washer/dryers also are helpful for laundries struggling with limited space. Efficiency and ease of use should guide you in making a decision on what dryers your route operator will equip the community laundry area with.

You know us as the complete plumbing, sewer and drain service experts, but did you know Roto-Rooter also specializes in assisting you in maintaining your underground parking facilities? Our unique, low-profile trucks are specifically designed to fit in all underground garages; and our technicians are among the best in the industry. When it has to be done right, it has to be Roto-Rooter. 5

3 19

N SI

PLUMBERS

TORONTO NEWMARKET

(416) 503-4444 (905) 830-0400

BARRIE OSHAWA

(705) 792-6666 (905) 579-0003

1-800-GET-ROTO June/July 2008 41

regulations

High-Rises Unprepared for New Garbage Fees Many Toronto high-rises are so unprepared for the pay-as-youthrow garbage levy coming July 1 that the city is considering a move to cut them some slack. The city’s General Manager of Solid Waste, Geoff Rathbone, said the city would be “reasonable and flexible,” with apartment and condo building owners. That’s because recently compiled city data show that highrises are throwing out a bigger volume of trash than first assumed by city officials. Larger volumes would mean a higher cost for building owners and their residents. The levy’s new volume-based approach treats garbage collection like a utility (instead of being paid through property taxes), so the cost factor is built-in: the more trash tossed out, the higher the bill. The fees range from a minor rebate to an annual charge of $78 per unit if the garbage volume is three bags per unit every two weeks. Actual data - the first volume-based information since the city hired one contractor last January to pick up garbage from all high rises - show many buildings are above the three-bag figure. That’s either because buildings fail to use compactors well or throw in light, bulky recyclables that add to the volume and the fees. Without offering a reprieve, the city could face political criticism of a windfall “cash grab.” The city had expected to raise an extra $24-million from multi-residential buildings, but that number could be “substantially higher,” according to Rathbone, without allowances for buildings to improve compacting. Even before this latest development, building owners have been trying to nail down the new cost of garbage collection. “When the first few bills come out in August and September, I am sure there will be shock and horror,” said Brad Butt, President of the Greater Toronto Apartment Association,

ad index

which supports the new policy. “It will be for many buildings a significant impact.” Meanwhile, some building owners complain that there are still too many loose ends. “There is the politics of this and there is the pragmatic implementation,” said Alan Krehm, a partner with his brother Jonathan in O’Shanter Development Corp., with 2,000 units. “The politics has gotten way ahead of the pragmatic implementation.” The Krehms estimate their bill at $175,000 a year, without more tenant recycling. At the 58,500-unit Toronto Community Housing Corp., President Derek Ballantyne said the agency faces a potential hit of $5-million a year. With garbage now a bottom-line issue, rental and condo buildings are stepping up efforts to add recycle options. “It’s a miracle,” said Councillor Glenn De Baeremaeker, (Ward 38 Scarborough Centre) Chairman of the Public Works Committee. “Building owners who never bothered to recycle are suddenly now being converted and want to be super-recyclers.” CAM

Cost Per Bag The city’s target for each unit is two-thirds of a green garbage bag every two weeks. Here’s the yearly cost for a 100-unit high-rise: • Two-thirds of a bag, the building earns a rebate of $7 a unit. • One bag, the fee is $18 a unit. • Two bags, the fee is $48 a unit. • Three bags, the fee is $78 per unit. • For higher volumes, extra charges would apply.

First National . . . . . . . . . . . 7 . . . . . . . . 416-593-1100

People’s Trust . . . . . . . . . . . 22 . . . . . . . 416-304-2078

First National . . . . . . . . . . . 31 . . . . . . . 416-593-1100

Pool People . . . . . . . . . . . . 22 . . . . . . . 416-213-0111

Altus Helyar . . . . . . . . . . . . 27 . . . . . . . 416-221-1200

Huebsch . . . . . . . . . . . . . . . 21 . . . . . . . 920-748-3121

Prime Corp . . . . . . . . . . . . . 3 . . . . . . . . 888-720-2020

CB Richard Ellis . . . . . . . . . IBC . . . . . . 416-362-2244

IMS Insurance . . . . . . . . . . 23 . . . . . . . 905-271-2070

Quality Allied Elevators . . . 17 . . . . . . . 905-305-0195

Coinamatic . . . . . . . . . . . . OBC . . . . . 800-561-1946

IRC Building Sciences . . . . 15 . . . . . . . 905-607-7244

Reed Pope LLP . . . . . . . . . . 29 . . . . . . . 250-383-3838

Enbridge Electric . . . . . . . . 11 . . . . . . . 866-449-4423

League . . . . . . . . . . . . . . . . 4-5 . . . . . . 877-772-8836

Rogers . . . . . . . . . . . . . . . . 37 . . . . . . . 866-567-5778

Enbridge Electric . . . . . . . . 19 . . . . . . . 866-449-4423

League . . . . . . . . . . . . . . . . 24-30 . . . . 877-772-8836

Roto Rooter . . . . . . . . . . . . 41 . . . . . . . 800-438-7686

Enbridge Electric . . . . . . . . 35 . . . . . . . 866-449-4423

Maytag . . . . . . . . . . . . . . . . 33 . . . . . . . 800-662-3587

TD Canada Trust . . . . . . . . IFC . . . . . . 877-299-9058

Enbridge Gas . . . . . . . . . . . 39 . . . . . . 866–763–5427

Met Cap . . . . . . . . . . . . . . . 9 . . . . . . . .416-340-1593

Yardi . . . . . . . . . . . . . . . . . 13 . . . . . . . 905-671-0315

42 Canadian Apartment Apartment Magazine Magazine 42 Canadian

ÀiÊÞ ÕÊV Ìi « >Ì }ÊÌ iÊÃ> iÊ vÊÞ ÕÀÊ >«>ÀÌ i ÌÊ«À «iÀÌÞ¶

Ã ìÀÊÌ iÊv Ü }\ UÊ7 ÊÜ ÊÀi«ÀiÃi ÌÊÞ ÕÀÊLiÃÌÊ ÌiÀiÃÌ¶ UÊ7 ÊÜ Ê} ÛiÊÞ ÕÀÊ«À «iÀÌÞÊ >Ý Õ ÊiÝ« ÃÕÀi¶ UÊ7 ÊÜ Êì ÛiÀÊÌ iÊ } iÃÌÊÛ> ÕiÊv ÀÊÞ ÕÀÊ«À «iÀÌÞ¶ 7 Ì Ê ÛiÀÊÓäÊÞi>ÀÃÊiÝ«iÀ i Vi]ÊÌi ÃÊ vÊÌ ÕÃ> `ÃÊ vÊÕ ÌÃÊÃ `] > `Ê Õ `Ài`ÃÊ vÊV i ÌÃÊÀi«ÀiÃi Ìi`]ÊÜiÊ >ÛiÊV Ã ÃÌi Ì ÞÊì ÛiÀi` ÃÕ«iÀ ÀÊÀiÃÕ ÌÃ°Ê/ À Õ} Ê ÕÀÊ V> Ê> `Ê >Ì > ÊV ÛiÀ>}i]ÊÜi VÀi>ÌiÊ >Ý Õ ÊiÝ« ÃÕÀi]Êi ÃÕÀ }Ê >Ý Õ ÊÛ> ÕiÊv ÀÊÞ ÕÀÊ«À «iÀÌÞ°Ê * i>ÃiÊÛ Ã ÌÊ ÕÀÊÜiLÃ ÌiÊ>ÌÊÜÜÜ°VLÀi°V>É >} Ì À Ì Ê ÀÊV Ì>VÌÊÕÃÊ>ÌÊ {£ÈÊn£xÊÓÎÎÓÊÌ Ê i>À Ê ÀiÊ>L ÕÌÊ ÜÊÜiÊV> Ê i «ÊÞ Õ° NATIONAL APARTMENT GROUP

>Û `Ê ÌÀiÃÃ ÀI ÝiVÕÌ ÛiÊ6 ViÊ*ÀiÃ `i Ì {£ÈÊn£xÊÓÎÎÓ `>Û `° ÌÀiÃÃ ÀJVLÀi°V IÊ-> iÃÊ,i«ÀiÃi Ì>Ì Ûi

Ê, V >À`Ê ÃÊ Ìi`]Ê,i> Ê ÃÌ>ÌiÊ À iÀ>}iÊ 6 "16 ,ÊÊÊÊÊÊ " /" ÊÊÊÊÊÊ ,9ÊÊÊÊÊÊ7

* ÊÊÊÊÊÊ " " ÊÊÊÊÊÊ7 / , ""Ê, " ÊÊÊÊÊÊ/"," /"ÊÊÊÊÊÊ"// 7 ÊÊÊÊÊÊÊ " /, ÊÊÊÊÊÊÊ- /Ê " ÊÊÊÊÊÊ 8

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

MORE THAN JUST SMART – IT’S A BREAKTHROUGH TECHNOLOGY

Aiming for the BIG Leagues The intergenerational wealth concept

2008 Who’s Who Elevators: Proprietary or Non-Proprietary

SIZE AS: 10.875” X .125

How Insurance Works

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.

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

TD CANADA TRUST – MULTI-RESIDENTIAL MORTGAGES DIVISION

VOLUME 5 / NUMBER 2 / JUNE/JULY 2008