(April 30, 2014 / 09:28:07) 85917-1 FRPO-MarchApril_p01.pdf .1
MARCH/APRIL 2014 Rental Housing Supports 147,000 Jobs in Ontario Ontario’s Strongest Rental Markets Small Landlord, Big Problem: Finding the Right Tenant FRPO's MPP Reception FRPO’S Fair Exchange of at Queen's Park Rental Industry News Natural Gas Outlook for 2014/15 (April 30, 2014 / 09:28:09) 85917-1 FRPO-MarchApril_p02.pdf .1
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The Voice of the Federation of Rental-housing Providers of Ontario 3 CONTENTS March / April 2014
FRPO’S Fair Exchange of Rental Industry News Features Departments
FRPO Slow 9 Queen’s 21 apartment Chair's Report Park Day construction 4 By Ugo Bizzarri
CFAA Report: Employment Release the 7 CFAA 2014 Rental 11and Income in 22 Power Housing Conference Rental Housing By John Dickie, CFAA President
Small Landlord, FRPO’s Ontario’s 18 Big Problem 12Education 24 Strongest Selecting the Best Tenant Program Rental Markets By Mike Chopowick Industry News Concert FRPO Book 25 15Properties 26 Review Upcoming Events Customer 34 Service
Natural Gas FRPO 16Price Outlook 30 Bulletin Wrap Up Cover Story Cover photo: Ontario’s Minister of Energy, the Gessell’s Hon. Bob Chiarelli (4th from right), 20 Story launches FRPO’s 1st Environmental Standards CRB building at Minto’s Sophia apartments in Ottawa. (April 30, 2014 / 09:28:12) 85917-1 FRPO-MarchApril_p04.pdf .1
4 FAIR EXCHANGE March / April 2014
FRPO’S Fair Exchange of REPORT Rental Industry News Chair's
The voice of the Federation of Rental-housing Providers by Ugo Bizzarri of Ontario
A Publication of: As FRPO’s approaches its 29th Annual General Meeting in May, we can proudly take a look back at many Federation of Rental-housingProviders of Ontario highlights from the past 2013-14 year. In the past 12 Editor: months the industry has undergone change, and FRPO Mike Chopowick • FRPO has achieved much as an industry association working EMAIL: [email protected] on behalf of the rental housing sector. TF: 1 (877) 688-1960 A PHONE: (416) 385-1100 EX 21 FAX: (416) 385-7112 A record number of renters www.frpo.org Statistics Canada’s most recent survey found there are now 1.39 million rental 20 Upjohn Rd., Suite 105 Toronto, Ontario M3B 2V9 households in Ontario, up from 1.31 million in 2006 - an increase of 77,000 tenant households in five years. This increase in rental housing demand is proof Advertising & sales: of FRPO’s advocacy that renting is smart, helping tenants to live where they Mike Rich • MPH Graphics want, achieve financial flexibility, and avoid unexpected maintenance costs that EMAIL: [email protected] TF: 1 (800) 668-6037 homeowners face. Most average rent increases during 2013 were at or below the PHONE: (905) 470-2265 annual operating cost increases that housing providers invest to maintain rental FAX: (905) 470-2205 buildings. Tenants continue to benefit from lower monthly costs, and freedom mphgraphics.com 35 Mobile Drive from making a big down-payment, compared to others forms of housing. Toronto, ON M4A 2P6 A Big Economic Impact Subscriptions & Address Change: Lynzi Michal • FRPO The impact of FRPO’s members across the rental housing industry goes far EMAIL: [email protected] beyond the lives of the residents who live in our buildings. Last year FRPO TF: 1 (877) 688-1960 commissioned KPMG to measure just how big our impact is on the well-being PHONE: (416) 385-1100 EX 22 of Ontario. The KPMG report found that every year, Ontario’s rental housing FAX: (416) 385-7112 www.frpo.org industry generates 147,000 full-time jobs, a provincial GDP of $18.3 billion and 20 Upjohn Rd., Suite 105 total tax revenue to governments of $7 billion. The construction of new rental Toronto, Ontario M3B 2V9 housing is key, supporting $1.82 billion in labour income and 33,000 full time
Designed and Printed in Canada by: jobs. Between 2007 and 2012, there has been investment in over 56,000 new private sector rental homes in Ontario.
The paper selected for this project represents these environmental savings: FRPO is a member of:
trees water (litres) air emissions (kg) solid waste (kg) PRESERVED SAVED PREVENTED ELIMINATED Canadian Fédération Canadienne Des 1 15,210 336 122 Federation Associations of Apartment De Propriétaires *compared to products made of 100% virgin fibers Associations Immobiliers The table above demonstrates the environmental benefits of running stock with 10% PCW Opinions expressed in articles are those of the authors and (Post Consumer Waste). do not necessarily reflect the views and opinions of the The formulas shown are based upon production of 12,000 magazines per year printed on 70lb Starbrite Plus FRPO Board or Management. FRPO and MPH Graphics ® accepts no liability for information contained herein. All Gloss Text FSC rights reserved. Contents may not be reproduced without Printed by MPH Graphics: 100% Bullfrog Powered (energy and green natural gas) and the First FSC® written permission from the publisher. Certified Printer in North America. Printed on Starbrite Plus Gloss Text FSC® Certified containing 10% post-consumer fibre, processed elemental chlorine free, acid free and using vegetable oil-based inks. (April 30, 2014 / 09:28:13) 85917-1 FRPO-MarchApril_p05.pdf .1
The Voice of the Federation of Rental-housing Providers of Ontario 5
The green building standards also include employee and Rental Housing by Comparison: tenant education and promotion of everyday things we can Government Taxes (Ontario) do to preserve the environment. Home Building Industry (Total) $11.3 billion6 A Better Land Use Planning System 3 Tourism Industry (Total) $9.5 billion The land development approval process has become 2 Rental Housing Industry $7.0 billion increasingly complex and burdensome. This leads to two 2 Food and Beverage Industry $5.2 billion unwelcome consequences: less housing and higher prices. 5 Insurance Industry $3.7 billion In our consultations with the government this year, FRPO 1 Agriculture and Food Industry $3.4 billion put forward its position in a simple framework: The land 4 Arts and Culture Industries $1.7 billion use approvals and appeals system should be used to plan 7 Mining Industry $1.0 billion housing development, not to create barriers to new housing 2 Aerospace Industry $320 million for Ontarians. 1. Ontario Federation of Agriculture, 2012 2. KPMG 2013, Economic Impact Assessment Study – Federation The Ontario government should ensure the land use of Rental Housing Providers of Ontario planning and appeals process enables much-needed 3. Ontario Ministry of Tourism, Culture and Sport, 2013 intensification across the province supporting better 4. Ontario Arts Council, 2012 affordability, and sustainability for transit planning and land 5. Insurance Bureau of Canada, 2011 6. Ontario Home Builders Association, 2007 conservation. Ensuring that the Ontario Municipal Board 7. Ontario Mining Industry, 2013 (OMB) upholds existing policies and plans against local government barriers, can also help encourage the Licensing is Not the Answer development of housing that meets provincial goals improved choice and affordability for residents. FRPO commissioned municipal expert Michael Fenn to compile a report reviewing the effectiveness of rental New Leadership at FRPO housing licensing across Ontario. His report, “A Review of In January 2014, the board of directors of the Federation of the Effectiveness and Implications of Municipal Licensing of Rental-housing Providers of Ontario (FRPO) named Scott Residential Apartments” (available at: www.frpo.org/ Andison as its new President and Chief Executive Officer. submissions), outlines the reasons why municipalities Mr. Andison brings extensive government relations, board consider licensing rental housing. The FRPO-Fenn report management, and association leadership experience gained found that apartment licensing is not the best solution to through progressive positions throughout his career. On any of the major issues that it is meant to resolve. Cities behalf of the board of directors, we look forward to working such as Toronto, Ottawa, Regina, Milwaukee, and others with Scott as we continue to advance FRPO’s mandate to have carefully examined the experience in a number of promote a balanced and healthy housing market in Ontario. jurisdictions and then decided against licensing. The Over the past thirteen years, with leadership provided by research and findings are illustrative and generally support former President and CEO Vince Brescia, FRPO has become FRPO’s position that licensing increases the cost of an important partner with government in advancing sound housing, reduces availability of apartments for tenants, and public policy on behalf of tenants and owners across the results in a huge, net cost to taxpayers without providing province. FRPO members are fortunate to have someone any extra benefit. With this landmark report in-hand, FRPO with Scott Andison’s background in government policy and is now escalating its advocacy efforts to restore legislation management to be assuming leadership of the organization. that formerly protected rental housing from licensing. Certified Rental Buildings Getting Greener Over 945 apartment buildings across Ontario now have FRPO’s Certified Rental Building (CRB) designation,
meaning that over 200,000 Ontarians now live in quality Mihok Photo: Tony assured, CRB-approved buildings. In 2013 FRPO established a new environmental sustainability standard of practice as part of the CRB program, providing even better value to tenants, their landlords and our province. Over a dozen new green standards now support prudent business The Hon. Bob Chiarelli, Minister of Energy (2nd from left), helps practices while promoting environmental friendly policies FRPO launch its first CRB Environmental Standard rental building and procedures in the management of apartment buildings. at Minto’s Sophia Apartment’s in Ottawa (April 30, 2014 / 09:28:14) 85917-1 FRPO-MarchApril_p06.pdf .1
6 FAIR EXCHANGE January / February 2014
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The Voice of the Federation of Rental-housing Providers of Ontario 7
CFAAREPORT CFAA 2014 Rental Housing Conference by John Dickie, CFAA President
This June, CFAA is taking a new Various building approach to its Rental Housing management Conference. Instead of addressing issues will appeal rental investment on day 1 and rental to both large and operations on day 2, this year’s small landlords, conference covers both broad topics while relationship Ton both days. Instead of two streams topics will serve of topics per day, there will be three. both managers Michael Geller and investors. As well, CFAA has On June 11, investment topics will arranged for four include succession planning, new key note speakers, techniques for less expensive two per day, to construction, compensation and add more energy organization trends, and to the conference. revenue management software. Benjamin Tal will Michael Geller will address the of rooms is available there for delegates, be back with Michelle Ray development of new rental housing, offering stunning views of Vancouver. his always- including new incentive programs and entertaining and informative economic the impact of new development on For Tuesday evening, delegates are update, as the high point of the two existing rental housing. invited to the Vancouver Lookout investment topic streams on June 10. Tower to network with colleagues As the keynote speaker for the rental Besides the keynote speakers, CFAA while they enjoy the views in both operations topic stream will present more than 50 experienced daylight and darkness. Three different on managing employees, on that landlords, consultants, lawyers, guided tours will be offered, day, Michelle Ray will address the suppliers and other experts. Speakers highlighting general features, crimes issues in leading our multi-generational will address topics of relevance to and ghosts, and rental building landlords of all sizes on both days. workforce and customer base. Hear developments as seen from 553 feet in how to satisfy Gen Y employees and Other Conference events will include the air. customers, while also keeping older people productive, happy and renewing! • the building innovations tour (during Speaking of the 2013 conference, the afternoon of June 9), showcasing Shelley Whittal, Director of Property some of the buildings Michael Geller On June 11, as the Management (Eastern Region) at will discuss on June 11 high point of the Gateway Property Management, said, leasing stream, we • a reception and supper, and an “I’m extremely glad I was able to will welcome after-party hosted by Wyse Meter attend the CFAA Rental Housing Lisa Trosien, the Solutions, all at the Vancouver Conference this year. I found the Apartment Expert, Lookout Tower (June 10); and conference very helpful, and am very to speak about the • lots of networking opportunities. human factor. much looking forward to the next Apartment Expert CFAA conference.” Lisa Trosien Social media and The education sessions will take place marketing will at the Sheraton Vancouver Wall Centre precede Lisa, and tenant selection tips Hotel, an iconic glass tower, developed will follow her. by Bob Wall of Wall Financial. A block Continued on page 17 (April 30, 2014 / 09:28:16) 85917-1 FRPO-MarchApril_p08.pdf .1
8 FAIR EXCHANGE January / February 2014 (April 30, 2014 / 09:28:16) 85917-1 FRPO-MarchApril_p09.pdf .1
The Voice of the Federation of Rental-housing Providers of Ontario 9
March 3rd Queen’s Park Day FRPO Members Give Rental Housing a Strong Voice
FRPO hosted delegation of Board and Committee members soon-to-be-launched education institute, and summarize at Queen’s Park on March 3rd, 2014, where a number of our discussions with ministry officials over the last couple important policy meetings were held with government of weeks. officials. The day concluded with a tour of the Legislature for members, followed by a social reception with MPPs and Specific issues tackled included: protecting rental housing Fpolitical staff from all three major parties. The day was a from municipal licensing; safeguarding new rental housing great success, with important discussions held on rental from rent control; and introducing fairness and accuracy in housing issues, and commitments secured for further property tax rates and assessment. We received a very open progress on issues such as licensing, property tax and rent and optimistic response in all cases on how we can work control. together going forward. Meetings with government officials FRPO staff and board members had policy meetings with the following officials and MPPs during the day:
• Jim McDonnell, MPP - PC Housing Critic • Laurie LeBlanc - Deputy Minister, Ministry of Municipal Affairs and Housing • Hon. Linda Jeffrey - Minister, Ministry of Municipal Affairs and Housing • Cindy Forster, MPP - NDP Housing Critic
These meetings also provided an opportunity for Scott Andison to introduce himself as new President & CEO of FRPO, and to present to them FRPO’s KPMG economic MPPs Lisa MacLeod-Nepean Carleton (L) impact report summary, highlight our CRB program and and Steve Clark-Leeds Grenville (C) (April 30, 2014 / 09:28:18) 85917-1 FRPO-MarchApril_p10.pdf .1
10 FAIR EXCHANGE March / April 2014
The Hon. Linda Jeffrey, Minister of Municipal Affairs and Housing, welcomed the success of FRPO's CRB Program
FRPO members speaking with MPP Michael Prue-Beaches East York (R)
The Minister of Housing indicated her particular interest in the CRB program, and stated that she found this type of pro-active measure by the industry was a very responsible approach. While Minister Jeffrey has since resigned from provincial government, many of her policy staff continue to serve under the new Housing Minister, the Hon. Bill Mauro. Premier Kathleen Wynne (L) greeting FRPO Member Joe Hoffer FRPO Reception for MPPs This year’s MPP reception had exceptional attendance by MPPs and staff (over 50 were in attendance). In particular, we had the Premier and her housing policy advisor attend at the beginning of the reception, where board members in attendance had the opportunity to discuss some of our issues. We were also joined by the Minister of Municipal Affairs and Housing (Linda Jeffrey), and her Deputy Minister (Laurie LeBlanc), who spent time talking to our members who were in attendance. The Hon. Tracy MacCharles, Toby Barrett MPP (Haldimand-Norfolk) (C) Minister of Consumer Services, also attended. Many MPPs from the PC Party and NDP also attended, such as Lisa MacLeod (Nepean-Carleton), Jim McDonnell (Stormont--Dundas--South Glengarry), Norm Miller (Parry Sound-Muskoka), Steve Clark (Leeds-Grenville), Michael Prue (Beaches-East York) and Catherine Fife (Kitchener-Waterloo).
FRPO thanks all MPPs, government staff, and legislative interns who attended our March 3rd reception. We are also grateful for the support and participation of our members PC Municipal Affairs & Housing Critic Jim McDonell MPP for attending the policy meetings and reception event. addressing FRPO's concerns about rental housing. (April 30, 2014 / 09:28:21) 85917-1 FRPO-MarchApril_p11.pdf .1
The Voice of the Federation of Rental-housing Providers of Ontario 11 Employment and Income in Rental Housing
Part of Rental Housing’s Positive Contribution to Ontario’s Economy
In providing homes to over 1.2 million households and families and Ontario, the private sector rental housing industry generates a big economic impact. A KPMG study released by FRPO in January revealed a total economic contribution of $18.3 billion and a gross output of $34.9 billion in Ontario. IRental housing is also a source of skilled, good paying jobs for Ontario. KPMG’s study estimated that private sector rental housing generates 163,343 full-time positions, of which 146,534, or 90 percent, are located in Ontario.
Rental housing has a powerful, positive impact on the broader economy, with every direct employee supporting the creation of about two additional employees outside the rental housing industry. People directly employed in rental housing support jobs in fields such as construction, waste management, environmental & technical services, maintenance, utilities and wholesale trades. Table: Employment Impact of Ontario’s Rental Housing Industry Employment Impact of Ontario's Rental Housing Industry (FTEs) Ontario % Other % Total % Direct 54,208 33% - - 54,208 33% Indirect 68,836 42% 10,093 6% 78,928 48% Induced 23,491 14% 6,716 4% 30,206 18% Total Employment 146,534 90% 16,808 10% 163,343 100% Total Labour Income ($ billion) 8.3 0.9 9.3 Average Wage 56,600 57,000 56,700 Employment Multiplier 2.7 Source: Statistics Canada I/O model, KPMG calculations
The average annual salary for rental housing employees is $56,600, over 11 percent above the national median income for full-time workers of $50,699. As expected, the largest employment impact from Ontario’s rental housing sector is in property management and leasing, with 36,000 full-time employees. The second biggest impact is in construction, related to jobs created by annual investments of $4.5 billion in building and renovating rental housing. Over the five year period from 2007 to 2013, over 56,000 new rental homes were built in Ontario. Continued on page 31 (April 30, 2014 / 09:28:22) 85917-1 FRPO-MarchApril_p12.pdf .1
12 FAIR EXCHANGE March / April 2014
Education For A Professional, Quality-Driven Industry About To Be Launched Now is a good time to put your budgets in place
Most professions these days have Development of the education tenancy and leasing law, HR, customer ongoing employee development program began just over a year ago, service, etc., as well as overall programs. FRPO believes that the under the direction of FRPO’s business and strategic planning. The rental housing industry should be no Education Committee. After months three designations included in the different. Your association is of work, the committee completed all program are: committed to ensuring that landlords course outlines, and then reviewed M • Resident Manager Program, and property managers are well and approved learning outcomes for educated and professional. One of the each module. A fundamental part of currently 5 courses best ways to achieve these goals is curriculum design, learning outcomes • Leasing Profession Program, through a comprehensive, recognized define in specific terms what the currently 4 courses education program that builds and student is expected to know at various • Property Manager Program, promotes an industry as a professional stages in the education process. currently 8 courses and rewarding career path. A quality program that leads to certification not Members of the committee include There’s more work for the committee only benefits tenants, it also develops those with specific hands-on expertise ahead. Delivery methods and course new employees and creates future in the rental property industry as well evaluations have to be decided in as education and training consultants. leaders for Ontario’s rental housing addition to finalizing the professional “We estimate that between us, our industry. designations that flow from program committee has about 114 years of completion. This includes setting a Progress update experience,” explains chairperson, balance between online and face-to- Kim Reid. Reid is also president of face education. FRPO’s first formalized education Taeus Group Inc., the company hired program for the rental housing industry by FRPO to develop the program. "There’s intrinsic value in interactive in- is about to become a reality. With person workshops which allow for peer course outlines complete, industry Three programs set to roll discussion, learning and idea sharing,” subject matter experts will soon be Courses will address the day-to-day says Reid. “We also acknowledge the busy with content development. By fall issues faced by managers in the provincial reach of our association and 2014, beta test groups will be industry, e.g. building administration, plan to deliver the bulk of our content evaluating the first modules. in an e-learning environment." (April 30, 2014 / 09:28:24) 85917-1 FRPO-MarchApril_p13.pdf .1
The Voice of the Federation of Rental-housing Providers of Ontario 13
“To overcome the widening gap between current skill levels and those needed to maintain competitiveness, companies are finding that workplace education programs are leading to a host of improvements: 98 percent of employers report
at least one employee skill and 2015 will do the same for the human owner? Ensure you have the budget in one economic benefit gained asset in the industry. place to provide full course training for your staff in 2015. from these programs.” Those who will benefit include: Interested in the program? Please send The Conference Board • Industry employees who want to have their skills recognized by any questions, comments or suggestions, carrying a professional designation; to committee chair, Kim Reid, Taeus Act now Group. Taeus Group is a valued partner • Industry employees who need or Over five years ago, FRPO introduced with residential property owners and want to upgrade their skills; and managers in helping increase profitability the Certified Rental Benefit program. • Managers, leaders, recruitment and tenant and employee satisfaction. CRB has since successfully raised the officers interested in attracting new standard for rental housing quality talent to our industry. (416) 577-1233 assurance. It is expected that the new [email protected] programs being launched in January Your first step as landlord or property www.taeusgroup.com
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Call today at 1-888-298-3336 or CarmaIndustries.com Green building tools for energy management and sustainability c 2013 CARMA Industries Inc. All rights reserved. (April 30, 2014 / 09:28:24) 85917-1 FRPO-MarchApril_p14.pdf .1
14 FAIR EXCHANGE January / February 2014
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The Voice of the Federation of Rental-housing Providers of Ontario 15
Tops in Customer Service
As Ontario’s rental housing becomes more professional Little extras and higher quality, it is now accepted that housing providers Concert’s property management team hosts frequent who offer exceptional customer service will have a big tenant appreciation events intended to foster community competitive advantage. including coffee mornings, spring breakfasts, summer AConcert is proud to offer customer service that goes beyond BBQs and holiday wine and cheese parties. the expected. In December 2013, Concert earned the FRPO Taking a tenant-centric view, Concert’s Resident Services MAC Award for Customer Service Excellence. This award team at Village Gate West has created resident programming was earned for delivering an overall high quality experience that includes movie nights, yoga classes and a lifestyle- to its residents. enhancing take-out food service in partnership with Concert’s neighbouring Tapestry Retirement Community. Going Beyond “Just Housing” Every Concert rental building has easy access to a Resident All residents are welcomed to their new homes with a Services Office where the Resident Services team members reusable shopping bag filled with green cleaning products are able to respond to all inquiries. All Resident Services and other gifts. Residents of all rental buildings also receive offices have a comfortable seating area. The coffee is hot an under counter compost container to help reduce waste. and available to residents each morning.
All Resident Services team members are trained to provide a level of customer service that exceeds expectations and routinely go above the call of duty.
Across the rental housing industry, maintenance and repair issues are among the top concerns of tenants. Every Concert rental home comes with their signature service, Concert On-Call. With Concert On-Call, residents are never without help. Service staff are trained to handle all aspects of repairs and maintenance in a timely manner. Round-the- clock service is offered to handle any urgent situation. Top 5 Tenant Satisfaction Actions: 1. Promptly returning or responding to phone calls and emails from tenants 2. Office staff “follow-up” on completed service requests 3. Responsive, dependable rental office staff 4. Office Staff: Courteousness, professionalism 5 Appearance, condition of apartment Source: StatisFacts Research, 2006 (Survey of 13,000 random tenants)
Continued on page 28 (April 30, 2014 / 09:28:29) 85917-1 FRPO-MarchApril_p16.pdf .1
16 FAIR EXCHANGE March / April 2014
An extremely long and cold winter has had a dramatic upward impact on natural gas prices in Ontario.
While natural gas pricing for end users can vary depending on location, in general the natural gas market uses NYMEX prompt prices as the best indicator of overall pricing. The Achart below shows NYMEX pricing for the last year. The price of natural gas increased 75% between the start of winter (November 1, 2013) until late February, and currently is 30% higher than it was at the beginning of winter.
Natural Gas Futures - Prompt Month (April 1, 2013 to March 31, 2014)
$6.25
$6.00
$5.75
$5.50
$5.25
$5.00 Start of winter
$4.75
$4.50
$4.25 US$ / MMBtu $4.00
$3.75
$3.50
$3.25
$3.00 8-Jul-13 1-Apr-13 3-Feb-14 6-Jan-14 3-Mar-14 2-Sep-13 5-Aug-13 9-Dec-13 22-Jul-13 15-Apr-13 29-Apr-13 14-Oct-13 28-Oct-13 17-Feb-14 20-Jan-14 10-Jun-13 24-Jun-13 11-Nov-13 25-Nov-13 17-Mar-14 31-Mar-14 16-Sep-13 30-Sep-13 19-Aug-13 23-Dec-13 13-May-13 27-May-13 Gas prompt - NYMEX
One of the main reasons for the increase in price has been the extended, extremely cold winter that North America experienced. These winter conditions were prevalent in Eastern Canada and the North-East U.S., key areas in the overall North American natural gas market. The chart below uses US Heating Degree data to show just how cold this past winter was, when compared to the previous winter (grey bar) and the 5 year average (black line). In most weeks, this winter (red bar) was colder than last winter (grey bar) The Winter and in many weeks this seasonal difference was extreme. U.S. Heating Degree Data That Didn’t 250 2013 Heating Degree Days 2012 Heating Degree Days 5-Yr Average
200
150
100 Quit!! 50 0 Nov Dec Jan Feb Mar By Margaret Harrison, ECNG So why does a long, cold winter impact price so much? One of the important drivers of natural gas prices is the amount of gas in inventory the market has at any one time. In general, (April 30, 2014 / 09:28:30) 85917-1 FRPO-MarchApril_p17.pdf .1
The Voice of the Federation of Rental-housing Providers of Ontario 17
pipelines that transport natural gas are not large enough during high demand ® periods (cold, wintery days) to bring enough natural gas to the demand centres. This lack of pipeline capacity creates a supply deficiency in the coldest days of winter. So natural gas is ‘stored’ in areas that are closer to the major North American demand centres Leading innovators in (North-East US for example). This storage inventory provides the market real estate financing with ‘insurance’ gas to help supply the market when conditions would CMHC & Conventional loans for: otherwise not allow all end users to use • Multi-family rental properties • Construction projects natural gas when they need it. • Commercial properties • seniors’ housing projects This past winter had 3 of the 5 largest weekly withdrawals from storage in the last 17 years. Aggregate storage withdrawals over the last winter were 30% more than the next highest storage withdrawal winter, and 110% more (more than double) than the winter of 2011/2012. When storage inventories get to low levels, the MiCHael loMbard ady steen market worries about not having Phone: 416-304-2078 Phone: 416-304-2089 enough gas for the following winter. [email protected] [email protected] What does this mean for future prices? With storage levels at 10+ year lows, the market will need to replenish Call us or visit peoplestrust.com storage in order to enter next winter (November 2014) with ample gas. This will put upward pressure on prices as demand increases. A hot summer will also lead towards increased use of natural gas for air conditioning, which will further increase demand.
Properties), Al Kemp (MHPOA), Ran For more details or to register, CFAA...Continued from page 7 Kuboyama (CAPREIT), Valerie please check the CFAA website at MacLean (LandlordBC), Maureen www.cfaa-fcapi.org. Registration is open Speakers now, with early registration discounts McMahon and Scott Ullrich (Gateway), Speakers committed to date include until May 1, and rooms until May 19. Arun Pathak (Smar Holdings), Barry Benjamin Tal (CIBC World Markets), Scott Andison (FRPO), Jenny Affe and Remai (Remai Group), BJ Santavy FRPO is a member of the Canadian Federation of Apartment Associations, Kris Boyce (Greenwin), Avrom (Skyline), and Wayne Tuck (Centurion). Other speakers will include leading which is the sole national organization Charach (Kay Four), Daryl Chong representing the interests of Canada’s experts and suppliers to the rental (GTAA), John Dickie (CFAA), David $480 billion dollar private rental housing Horwood (Effort Trust), Rob Hunter housing industry, as well as additional industry, providing homes for more than (Devon Properties), David Hutniak landlords, who have thought through eight million Canadians. Learn more at (LandlordBC), Jeremy Jackson (Killam issues you are facing. www.cfaa-fcapi.org. (April 30, 2014 / 09:28:30) 85917-1 FRPO-MarchApril_p18.pdf .1
18 FAIR EXCHANGE March / April 2014
Small LANDLORD BIG Problems
by Mike Chopowick
Selecting the Best Tenant
FRPO has spent more time recently to application form collects vital educate landlords and property information to help you assess managers on the value of starting a prospective tenants. tenancy the right way. We have heard and seen first-hand too many horror Only purchase application and Fstories of good, small landlords lease forms provided by your getting stuck with a “Tenant From landlord association, such as Hell”. the industry application form sold through FRPO (at http:// Such poor landlords end up paying www.frpo.org/Forms-leases). thousands of dollars in lost rent, legal Or, you can hire your lawyer fees, and clean up & repair costs. A to draft a proper application typical bad case with a professional form and lease agreement tenant scammer can take 7-10 months for you. Avoid buying ready- to resolve at the Landlord Tenant made template-style documents Unfortunately, Board (longer if the tenant appeals from business stationary stores or rental fraud artists target small their case to Court). shady websites. FRPO sells excellent landlords more because typically their leases and application forms to screening process is less onerous The good news is that statistics show members for a little as $18, so cost is than larger landlords and property that 97% of tenants pay their rent in no excuse! management firms. Invest the time to full and on-time. Bad tenants, while make the right choice and a smart costly and destructive, are rare. And, The paperwork in the tenant business decision. as a landlord you can take some application process is onerous and simple, cost-effective steps to select a sometimes balked at by prospective Meeting prospective tenants: good, responsible tenant who you can tenants. Assure prospective establish a good long-term business applicants that this is done to protect questions to ask relationship with. the property and existing tenants to Do not just take a completed ensure that they will have good and application form from someone, and Proper Application Forms respectful residents as neighbours. their first and last months rent, and Make sure you are using an up-to-date then hand them the keys. Speak to Remember: A good rental application Tenant Application Form that collects them first. Ask them questions. collects necessary info to assess all necessary information to help you prospective tenants. A good landlord Some landlords resist this step, and verify a tenant’s criteria. Do not just verifies all the key information wonder why they should interview rely on a new tenant signing only a provided in the application. prospective tenants when they already lease agreement. A separate (April 30, 2014 / 09:28:31) 85917-1 FRPO-MarchApril_p19.pdf .1
The Voice of the Federation of Rental-housing Providers of Ontario 19
filled out an application form. Part of sense and check your local by-laws question (as long as they fulfill the the answer is that this helps you get to on occupancy limits. Again, how a terms of the initial lease term). know your tenants, and also, while it tenant answers this question can Twelve months with a good tenant may be easy to lie on a piece of paper, tell you a lot about them. is better than 36 months with a it is harder to do so in person. Some “Tenant from Hell”. If they tell you basic questions you can ask include: 6. Will You Sign and Consent to a one year or two years, this can help Credit and Background Check? you in preparation for marketing 1. Why Are You Moving? You already should have the the unit and lining up future Usually the answers to this tenant’s written consent for tenants. questions are perfectly legitimate, background checks on their but always the answers will tell you completed application form. It is 10. Do You Have Any Questions? a lot about the person. good practice to ask. If they You may think you have the perfect verbally reply “No”, then you rental property. But tenants may be 2. When Do You Plan on Moving-In? should seriously re-consider looking for something different. An obvious red flag would be if the renting to them. Here, they may ask about on-site tenant replied that “I’m ready to laundry, or a fitness gym, or move in this afternoon!” There 7. have You Ever Been Evicted? proximity to the subway station. could be a good reason for a quick Bad things can happen to good They may be a perfect tenant, just move-in, but in general most people. A tenant may have had a not your perfect tenant. Make sure responsible tenants plan their prior eviction for non-payment, but the apartment or rental home is a move weeks or months in advance. if they answer this question good fit for them, and you’ll have a honestly and with an excellent more positive business 3. What Is Your Monthly Income? explanation (example, laid-off relationship. Is their answer the same as written unexpectedly in the pas), you could on their application form? still have good tenant if all their Professional Background Remember that income is only one information checks-out. Checks part of the application process. You can ask about income, but must 8. do You Have Any Pets? Make the additional investment of also look at any available Ontario is the only place in Canada conducting a professional background information on rental history, credit where the “No Pets” clause on a and credit check on every prospective references and credit rating. Never tenancy is void. But that does not tenant. FRPO can refer you to set any arbitrary threshold for mean you can’t ask about pets. It reputable companies who can do this income when assessing prospective is your choice to accept pets or not for you. Many landlords check a tenants. into your building. Many successful tenant’s credit score, but there is more landlords do accept pets, while beyond that. 4. Will You Have the First and many don’t. Regardless, you A good, professional tenant check will Last Month’s Rent Available Prior should ask this question and look Move- In? look into rental history, references, for honest answers. If a tenant reasons for credit scores, if the tenant Landlords can only ask for the Last moves in then brings in their three is self-employed and records of Month Rent deposit (LMR) before dogs one week later, there not criminal offences. a tenant moves in. Simply do not much you can do (except in some accept any tenant who does not pay condominium situations). But, The last word here is to avoid violating their rent plus LMR deposit before you can refuse to rent to a pet the human rights code. Do not they move in. Any attempt by an owner. Not sure if they are being inadvertently discriminate based on applicant to persuade you to accept honest? Google them. Check their protected grounds, and ensure you the deposit after they move in is a facebook, twitter or instagram use the same tenant selection process bad sign. accounts (if publicly available!). If and criteria for every tenant. A good you see them in hundreds of example is when asking for guarantors, 5. how Many People Will Be Living in photos with their two alligators and ask every tenant for a guarantor. the Apartment? pet python, you may think twice. Over-crowding can be an issue in Ontario’s process for eviction and rental homes. You can’t 9. How long are you planning on debt collection is costly and lengthy. discriminate against families or living here? Avoid getting into bad situations by large households, but use common There is no wrong answer to this making the right choice from the start. (April 30, 2014 / 09:28:32) 85917-1 FRPO-MarchApril_p20.pdf .1
20 FAIR EXCHANGE March / April 2014 BESS Success Interval House's Gessell’s story Since 2008, FRPO has been a strong a feel for different personalities and In five years, Gessell sees her cleaning supporter of Interval House, Canada’s perspectives. I really improved my people business thriving in a market that has first shelter for women and their skills and these are important skills,” a million dollar potential. And that’s children who are victims of domestic she says. exactly what she’s aiming for. She sees violence. One of the keys to Interval herself having a systemized business House’s success are their programs to BESS graduates like Gessell receive an with a team of workers. She has help women rebuild their lives and education, training, financial and ambitions to grow and franchise. She gain employment and housing on housing assistance, and other also wants to develop business their own. practical solutions. Customized packages for others who want to start training and skills help them gain their own businesses. When a woman graduates Interval confidence and independence. House’s Building Economic Self Gessell is determined to use the Sufficiency (BESS) program, she is “The career developer continued to work business not just to make money but equipped with the tools she needs to with me two hours a week, helping me to also help others. rebuild, reinvent and transform her life with my business plan, my website, and often, the lives of her children. basically with everything. I was never left Gessell is a shining example of how Just ask Gessell. alone. That’s one of the other things I Interval House and their BESS love about the program. I’m not alone. program transform lives. With the Gessell – a mother, a survivor of The teacher helps me if I need any help support of generous donors, they can partner abuse and a proud graduate of with my computer skills or if I have any continue to make a life-changing BESS – had a dream to launch her own business questions,” says Gessell. difference. cleaning business. After getting her business license, she knew she needed Without the BESS program, Gessell “I would tell any potential Interval some help to proceed. She heard doesn’t believe she’d be as far along House donor that they’re sowing into about BESS from a friend and enrolled. with her business as she is now. She good soil,” says Gessell. “The seed you She soon found the knowledge and feels more confident and more plant may look small but it has deep guidance to successfully further her organized and finds herself thinking roots and will grow into a mighty tree. business. more strategically now. Gessel believes Your donations help women rise up in these skills have helped her be a better strength.” “When I joined the BESS program, I was parent to her 13 year old son in at the stage where I needed to rebrand. I addition to equipping and didn’t know much about branding. I motivating didn’t have a slogan, a mission her for statement, a vision statement, a future marketing plan or a business plan. And business now I do,” says Gessel. success.
Over the course of the two-week program, Gessell also learned fundamentals that will benefit her beyond her business. Her teacher took the time to show the class how to properly and firmly shake someone’s hand. The students also learned about body language, such as how to sit and how to show interest.
“We learned how to carry ourselves. I got (April 30, 2014 / 09:28:32) 85917-1 FRPO-MarchApril_p21.pdf .1
The Voice of the Federation of Rental-housing Providers of Ontario 21 Slow Apartment Construction Leads Sharp Drop in Housing Starts
According to CMHC, annual housing starts in Ontario were trending at 55,150 units in March 2014, compared to 58,588 units in February. The seasonally adjusted annual rate of total housing starts was 37,094 units in March, Adown from 57,675 units in February. Provincial Housing Starts - Urban Areas
110000
100000
90000
80000
70000 55150 60000
50000
40000
30000 37094
20000
10000
0 March 2012 March 2013 March 2014
Housing Starts, SAAR* Housing Starts, Trend Line (6-month moving average)
“While residential construction activity slowed sharply in March, the decline was not broad based but rather focused solely in the more volatile apartment sector. In fact, seasonally adjusted low density construction activity posted growth in March. Starts should bounce back closer to trend levels in the second quarter. This reversal of activity will be supported by an improving labour market, low interest rates and a backlog of apartment sales registered in years past that have yet to commence construction,” said Ted Tsiakopoulos, CMHC’s Ontario Regional Economist.
Despite declining apartment construction, single detached, semi detached and row construction actually grew in March on a trend basis. For the year ending March, Ontario raw urban starts were 4 per cent below levels this time last year.
Source: Canada Mortgage and Housing Corporation, “March 2014 Housing Starts in Ontario”, April 8, 2014. (April 30, 2014 / 09:28:35) 85917-1 FRPO-MarchApril_p22.pdf .1
22 FAIR EXCHANGE March / April 2014 Release the Power The importance of Rental History by John Dobrowolski
Knowing rental history increases the N number of approved leases by 12%
When used alone as 100% pure tenancy history and not in conjunction with credit evaluations and traditional screening methods, rental payment and termination histories can help greatly in attracting qualified tenants— those who pay rent on time and use their premises responsibly. It’s a sign of changing times that measuring Tenant-worthiness is coming of age.
To that end, resident screenings companies love good rental history information and can now depend on it to determine whether or not a prospective applicant is a good risk. They scan vast databases to find out past purchasing behaviors, job histories, and of course credit backgrounds, including vital records of on-time and/or overdue payments. But creditors are not the same as landlords.
Landlords and leasing agents of all sizes and in all markets need different benchmarks from traditional creditors; they have known for years that verified personal identification is the best data prospective renters can provide. Yes, you can check personal and current (April 30, 2014 / 09:28:35) 85917-1 FRPO-MarchApril_p23.pdf .1
The Voice of the Federation of Rental-housing Providers of Ontario 23
landlord references if offered, but you need to be aware that these could be misleading, incomplete, or even fabricated. A lower credit score matched with Where an applicant’s bona fide credit history is concerned, rental history that shows on-time, however, you should always verify it. every time rent payments suddenly But credit scoring alone isn’t quite the Holy Grail it once becomes a qualified rental candidate. was when fewer tolls were available to determine if a prospective tenant would pay the rent on time or raise the probability of eviction. Thousands of Canadians lose their With recent swings in employment stability, however, homes and possessions every year due to uninsured “acts Canada’s home ownership ratio has changed; now, almost of God”; they lose once-secure jobs due to recessions and a third of the population rents. What better way to determine the reliability of rental applicants than to local economic downturns; they suddenly face costly consider how they have historically paid their rent? medical bills not covered by government health care or RentCheck Credit Bureau began incorporating residential personal health insurance; or they’re struggling single rental payment data into tenancy reports more than a parents trying to raise a family. twenty-two (22) years ago. According to our ongoing In these uncertain economic times, there are many research, the inclusion of positive rental payment data can legitimate reasons why rental applicants—such as low pull one-in-four consumers out of the high-risk range and fixed-income earners (the “working poor”), new into a higher-qualifying score. immigrants, retirees living mainly on government pensions, Therefore, the easiest way to help residents establish or or some registered aboriginal applicants—might have poor rebuild their credit records is to furnish rental history data. credit, limited credit, or no credit at all. Yet traditional All they have to do is simply pay their rent on time and credit-based evaluation criteria might have little (if any) manage their behavior in the community—a huge triple relevance as to whether or not they will pay their rent benefit to apartment owners, apartment communities, and consistently and on time. individual residents. What prospective renter wouldn’t Worse still, if full tenancy history is ignored, especially welcome this game-changing message from a leasing agent or landlord? in cases where adequate credit history is lacking, using credit scores and/or summary credit reports alone to With such obvious credit-building and positive benefits for determine tenant-worthiness nearly always results in residents, plus added reliability factors for multifamily negative discrimination. housing providers, accessing rental payment history is emerging as a primary evaluation method: when available When a prospective renter’s past history of excellent it works, both on its own and in conjunction with credit performance is overlooked, no landlord can expect to make reporting and traditional screening methods. Simply put, it a fully informed decision—a professional failure that can adds another layer of security separating good renters leave anywhere from 12-20% of worthy applicants out in the from bad. Building a more accurate demographic of cold. Landlords committed to fair business practice (that tenant-worthy renters has an immediate positive effect on should be all of us!) must habitually incorporate applicants’ an apartment owner’s NOI, reducing the overall rental histories as essential sources of information. likelihood of defaults and bad debts and their associated The hard fact of this industry is that apartment and housing collection costs. operators in particular depend on reliable first-of-the-month And the process is simpler than you may think. In addition rental revenue from all of their residents in order to survive to a credit score (which analyzes raw credit information), a in the business. Establishing a consistent Net Operating RentScore®1 analyzing raw rental history information Income (NOI)—based entirely on rent rolls—is critical to makes it much easier to know how responsibly applicants their success. With a stable NOI, they can accurately have paid, and will pay, their rent. When rental analysis is determine the true market value of their properties, decide when and where to invest in capital improvements, and make informed decisions on buying and selling. Continued on page 29 (April 30, 2014 / 09:28:36) 85917-1 FRPO-MarchApril_p24.pdf .1
24 FAIR EXCHANGE March / April 2014 Ontario’s strongest rental markets
Ontario has a diverse rental housing market. Vacancy rates October 2011 to October 2013, Halton towns such as and rent levels vary widely across the province. Many Oakville and Burlington have led the way with rent growth factors influence rental demand, from housing prices, of 6.9% and 6.7% respectively. Waterloo, Aurora/ employment and demographics. For investors, one of the Newmarket and Pickering/Ajax and Uxbridge close-out the Obest indicators of identifying the best markets in Ontario is top rent-growth list…very similar to the areas of fastest population growth. While population growth is slightly population growth. different than household growth, we can still get a very good idea of where the strongest markets are by looking at It makes sense. Over the next ten years, Halton is expected projections for population across Ontario. to grow by 28%, adding over 150,000 new people within its borders. Essentially, in ten years Halton will grow in size by an amount equal to the entire population of Thunder Bay. Population Projections 2013 - 2023 (Percent Change) Demands on the housing market are inevitable.
30% 28% 25% Strongest Markets (Primary) 20% 15.9% 8% 15% 12.5% 12.5% +6.9% 10.1% +6.7% +6.5% +6.4% 10% +6.2% 6% +5.5% 5% 0% 4% -5% Peel
Halton 2% Ottawa Ontario Toronto Simcoe Niagara Durham Sudbury Rent Growth 2011-13 Rent Growth 2011-13 Waterloo Hamilton Muskoka York Region York Thunder Bay Peterborough 0% Essex (Windsor) Wellington (Guelph) Wellington Middlesex (London) Nipissing (North Bay) terloo Duffering (Orangeville) Oakville Algoma (Sault Ste Marie) Aurora / Wa Burlington Pickering / Newmarket Ontario Avg. Ontario
Source: Ontario Ministry of Finance Population Projections, 2013 Ajax / Uxbridge A quick look at population projections for the next ten years Source: CMHC 2013. Rental Market Survey, Ontario shows that a few key areas are going to grow much faster Highlights, Fall 2013. than the Ontario average. While Barrie (Simcoe), Waterloo and Ottawa are all tipped for faster growth, the biggest According to CMHC, some of these rent increases exceed increases will be led by the “905” regions around Toronto: the provincial guideline because of the rent increases in Halton, York, Peel and Durham. vacant units. CMHC also noted in its October 2013 survey: “In ten years Halton will grow in size • Despite downward trending vacancy rates since 2004, by an amount equal to the entire rents failed to keep pace with the market. Consequently, population of Thunder Bay.” rent increases on turnover were particularly strong in the tighter markets vacant unit rents were “catching up” to the market in the fall of 2013. Accordingly, these areas are also where we are seeing the strongest rent growth. Over the past two years, from Continued on page 35 (April 30, 2014 / 09:28:38) 85917-1 FRPO-MarchApril_p25.pdf .1
The Voice of the Federation of Rental-housing Providers of Ontario 25 Rental Industry News Minto team to transition Minto Suite Hotel to a premium rental property
Minto Properties Inc. has announced legacy, Minto's leadership continues over the past 25 years and its decision to narrow the company's to focus on growing the business. hospitality focus, and accordingly will wish to assure them we will transition the Minto Suite Hotel to a The Minto Suite Hotel currently do all we can to assist them houses 255 hotel suites and 163 Mpremium unfurnished and furnished through the transition." rental property commencing April furnished suites. During the 2014. The re-positioning of the award- transition, hotel operations will continue, complemented by a mix of winning property, which opened its To ease the transition for employees furnished suites and unfurnished doors 25 years ago, marks a strategic impacted by the change and help them residences. By late fall 2014, the shift to provide greater alignment with find alternate employment both inside transition will be complete with the the company's growth strategy. and outside of Minto, all will be given hotel suites converted to a mix of ample notice of their expected premium unfurnished residences and departure date and will be provided "Our business has evolved furnished suites. with financial support, a job search beyond its roots, with Minto Due to this decision, there will be program and career transition services. expanding its footprint reductions in company staffing levels. During the transition phase of the However, more than half of the current nationally," said Michael hotel, Minto is committed to 97 employees will be retained and re- accommodating reservations of all Waters, Chief Executive assigned to other roles within the groups and individuals. Existing Minto organization. Staffing Officer, The Minto Group. bookings for hotel, meeting rooms reductions will take place in phases, "This requires us to focus on and other contractual obligations will beginning spring 2014, with the be honoured based on the transition what we do best and that majority of departures occurring in plan. In the event where a booking is late fall 2014. These departures will be means making some tough in conflict with the transition, the planned according to the speed of the Minto team will take every necessary decisions to get out of specific renovations which are scheduled to measure to move and accommodate lines of business - ones we are begin in March. It is expected that the the group or the individuals with first new unfurnished rental suites will very proud of - but which no partner hotels at the most attractive be ready for occupancy in early rate available. longer support our overall summer 2014. business objectives." The change in use of the hotel will "We understand this decision mean a significant increase in the number of new, full-time residents of Growth, geographic diversification and will have an impact on our the award-winning Minto Place. The delivering quality continue to be the staff, customers and Minto team anticipates the retailers pillars that guide the company and fuel suppliers," said Waters. "I within Minto Place will feel a positive its success within Ottawa and across impact as a result of this change. Canada. Alongside the company's want to thank each of them thoughtful stewardship of a family for their service and support Continued on page 28 (April 30, 2014 / 09:28:38) 85917-1 FRPO-MarchApril_p26.pdf .1
26 FAIR EXCHANGE March / April 2014 FRPO
The Great Rent Wars Source: Yale University Press
Written by one of the country’s The Great Rent Wars traces the foremost urban historians, The Great tumultuous history of rent control in Rent Wars tells the fascinating but New York from its inception to its little-known story of the battles expiration as it unfolded in New York, between landlords and tenants in the Albany, and Washington, D.C. At the nation’sW largest city from 1917 through heart of this story are such memorable 1929. These conflicts were triggered by figures as Al Smith, Fiorello H. La the post-war housing shortage, which Guardia, and Oliver Wendell Holmes, prompted landlords to raise rents, as well as a host of tenants, landlords, drove tenants to go on rent strikes, judges, and politicians who have long and spurred the state legislature, a been forgotten. Fogelson also explores conservative body dominated by the heated debates over landlord- upstate Republicans, to impose rent tenant law, housing policy, and other control in New York, a radical and issues that are as controversial today unprecedented step that transformed as they were a century ago. landlord-tenant relations. Robert M. Fogelson was born and “New York’s real estate men lost no time raised in New York City. He is professor launching an attack on the emergency of urban studies and history at the rent laws. On October 1, 1922, just a Massachusetts Institute of Technology Available at: http://yalepress.yale.edu/ few days after the September laws went and author of several books, most The Great Rent Wars into effect, the Board of Governors of the recently Downtown: Its Rise and Fall, Yale University Press Real Estate Board held a special meeting 1880–1930, and Bourgeois Nightmares: Oct 15, 2013 512 p., 6 1/2 x 9 1/2 at which it decided to test what it viewed Suburbia, 1870-1950, both published as the state legislature’s misguided 23 b/w illus. by Yale University Press. ISBN: 9780300191721 decision to suspend the fundamental Cloth: US $45.00 sc rights of the city’s property owners.” Except from The Great Rent Wars (April 30, 2014 / 09:28:39) 85917-1 FRPO-MarchApril_p27.pdf .1
The Voice of the Federation of Rental-housing Providers of Ontario 27
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Ensure the health of your bottom line, contact: K(kazi) M Shahnewaz Director, Business Development 647.887.5676 • [email protected] www.metcap.com (April 30, 2014 / 09:28:42) 85917-1 FRPO-MarchApril_p28.pdf .1
28 FAIR EXCHANGE March / April 2014
Rental Industry News...Continued from page 25 announced that it has closed on a Customer Service...Continued from page 15 previously announced property Minto, and the Greenberg family, have acquisition ideally situated in Ottawa’s Maintaining excellence and been an integral part of the Ottawa west end for a purchase price of $7.2 listening to residents community for nearly 60 years. million. Headquartered in Ottawa, with 830 of In 2012, Concert enlisted JD Power and its 1,240 employees based there, The property is located at the corner of Associates to carry out a rental survey Minto has strong values, the Carling Avenue and Crystal Beach throughout all of its Toronto residential commitment of a family-owned Drive, directly across from the Ottawa rental properties. Survey results are enterprise and is deeply rooted in River, in the neighborhood of Crystal monitored and communicated. doing the right thing for the Beach and is adjacent to our previously Regular improvements across all of community. announced acquisition that closed in the properties continue to happen as a May of 2013. Situated in a result of the feedback from the tenant Some of The Minto Group's recent predominantly residential area, the survey. milestones include a partnership with property offers excellent views of the Frequent resident satisfaction surveys the City of Ottawa in the revitalization/ Ottawa River and is within close also identify resident concerns and redevelopment of Lansdowne Park, a proximity to major bus transit routes determine ways in which they can collaborative approach to as well as highway 417 and the improve service to their communities. consultations with New Edinburgh Bayshore Shopping Center. community organizations in designing Resident response rates are always Beechwood, an innovative new condo The Property consists of 2 1-bedrooms; high and scores are typically in the development, as well as the recent 28 2-bedrooms; and 24 garden homes. “Excellent” category across the board. acquisition of South Centrepointe Combined with our previous rental community in Ottawa's west acquisition in Crystal Beach, the REIT Quality peace of mind end. The company also has an ongoing now has 141 rental units within close All Concert buildings are certified legacy of corporate citizenship and proximity to the former Nortel campus. under the Certified Residential Building philanthropy focused on giving back to This campus is being refitted and the (CRB) program, meaning that community organizations in Ottawa. Department of National Defence has residents can rent with confidence. Its employees are encouraged to reported that it expects to have 8,500 Having management staff on-site participate in community fundraising employees working out of this location seven days a week means not only easy and volunteer activities, with Minto within six years with the first 3,300 access, but also a sense of familiarity matching pledges and donations. scheduled to arrive late in 2015. The and neighbourliness with the staff. As properties are being purchased with a a result, residents feel comfortable "We take great pride in all going in capitalization rate of 5.75% approaching staff with any concerns and is immediately accretive to the that may arise. Residents take comfort we have done here in REIT. The acquisitions will be financed Ottawa to build and grow in the knowledge that these concerns through a conventional first mortgage will be handled in a respectful and the community" while the property is being repositioned. timely manner. continued Waters. "Today's “With our years of experience Customer announcement reflects our service continued commitment to the in the Ottawa market, we excellence city and we're excited about believe that this acquisition is does not the positive impact and in a great geographical come from doing one or opportunities that come as a location and represents a two things result of the launch of this strong addition to the long right, it premium rental residence." term strategy of growing the results from a whole corporate culture that focuses on meeting the needs of REIT’s portfolio where we tenants. Living up to its mission to be InterRent Closes on 54-Unit believe we can create value for “a developer with a difference”, our Unitholders,” said Mike Concert Properties’ commitment to Ottawa Property customer service made it a clear choice InterRent Real Estate Investment Trust McGahan, CEO. as winner of FRPO’s 2013 Customer (TSX-IIP.UN) (“InterRent”) has Service Award. (April 30, 2014 / 09:28:42) 85917-1 FRPO-MarchApril_p29.pdf .1
The Voice of the Federation of Rental-housing Providers of Ontario 29
Release the Power...Continued from page 23 does not only track good payment habits to the present volume of 3.2 million per month; it also gives landlords the then combined with termination history, the results indicate interactive Rent Data Exchange® (RDX®)2 tool, a state-of- whether an applicant has respected property and the-art interface for reporting termination history and all community. For example, an applicant may have a lower- other relevant events that may occur during the rentlife-cycle range credit score, but a high-range tenancy history showing of a tenancy. RDX® is also available to members of the that rent payments have been made on-time, every time and public who can order their own personal rental history report that their behavior is excellent. The result? He or she and RentScore® online, before they apply for a rental unit, suddenly becomes a much better qualified housing or for completing other applications. The equal inclusion and candidate—one who (as noted above) might have been access for both housing providers and recipients to positive unfairly declined by other property managers not using and negative (derogatory) data of a tenancy applicant’s rental history criteria. rentlife history provides the fairest and most balanced Deanna Adams, president and general manager of the evaluation system currently available in North America. Good Tenant Factory, enthusiastically supports the mutual Presently in Canada there are approximately four (4) million benefits of making rental history a core component of rental units, of which 85% (or about 3.4 million)3 are applicant screening. private units. More than 60% of these (or about 2.04 It’s “a very effective tool for candidate selection, and we let million) are owned by very small independent business each tenant know that their good or bad bill paying habits operations. And more than 3.6 million renters are now will contribute to their report going forward,” she notes. represented in the tenancy history files of Rent Check Credit “Thanks to our membership [with RentCheck], we are able Bureau a subsidiary of the Rent Bureau of Canada. Those to operate with superior knowledge that so many landlords statistics alone speak volumes for the power of reliable lack. We are able to attract a more responsible group of rental information to reduce end-of-lease debt, improve candidates and we are able to speak with authority when Human Rights compliance, and end stigmatization of low- engaging them.” income earners… The picture can only get better as more industry leaders come on board. The superior knowledge so valued by industry professionals like Deanna Adams can have an enormous positive impact Want to learn more about rental/tenancy history and how it on all sectors of our industry. can significantly improve your bottom-line? Check out www. RentCheck.ca and explore how our Products and Services like …rental payment history is emerging as a Tenancy History Data can improve your screening decisions, maximize collections, and gain a competitive advantage. primary evaluation method… (The author gratefully acknowledges permission to incorporate content from a previously published article by Brannan Johnston, vice president and managing director of Experian RentBureau, found on http://www. Whether rental communities comprise buildings with under propertymanager.com/2012/03/importance-of-rental-payment-history/) a dozen units, or those with hundreds and more, access to John Dobrowolski is founder and CEO of RentCheck Credit Bureau Ltd. and Rent tenancy history data through the RentCheck system does Bureau of Canada, the leading and most-consulted rent bureau serving the not discriminate between large landlords who upload data Canadian multifamily housing industry. through computer-to-computer transfer, or small 1. Canadian and US Patent pending 2. Canadian and US Patent pending independent landlords using very basic record-keeping. 3. As per CMHC statistics And for tenants, it can eliminate unfair housing practices whereby some large landlord have sophisticated systems to keep residents’ rental histories on file while other small landlords do not—a situation that is ethically and economically unsustainable.
Remember too, that Rent Check’s version of a 100% pure resident history Rent Bureau system doesn’t only apply to private housing but social and native housing as well, and (April 30, 2014 / 09:28:43) 85917-1 FRPO-MarchApril_p30.pdf .1
30 FAIR EXCHANGE March / April 2014
Federation of Rental-housingProviders of Ontario Wrap-Up
New CO Detector Regulation Released • CO and smoke alarms in rental units must be tested Ontario’s new CO Detector Regulation annually and tested when battery is replaced, summary is now posted. The summary changes are made to electric circuit or change sheet is available at: http://www. in tenancy occurs. ontariocanada.com/registry/ • CO and smoke alarm showAttachment.do?postingId= testing in rental units 15722&attachmentId=23978 performed by landlord. Testing done by activating This is a proposed regulation, alarm test feature. and will be posted for 30 • Tenant required to notify days. If you have any landlord if CO and/or comments or feedback on smoke alarm inoperable. this regulation, please email [email protected] or Installation for large submit comments to the buildings (those with more government directly via: http:// than six suites) would come www.ontariocanada.com/ into effect within 12 months of registry/view. in-force date. do?postingId=15722&language=en CO Alarms shall: This new regulation was required following a) be permanently connected to an electrical the passage of Bill 77 by the Legislature. FRPO has circuit with no disconnect switch between the worked with the Fire Marshall’s Technical Advisory overcurrent device and the carbon monoxide Committee in the development of this proposed regulation. alarm, Based on preliminary review of the regulation, there are few b) be battery-operated, or surprises in the proposed requirement. Some key CO c) be plugged into an electrical receptacle. Detector installation and maintenance requirements are: Additional details on this new regulation will be provided to In Multi-Unit Buildings FRPO members in May, 2014. • If fuel burning appliance in suite - install adjacent to sleeping areas. New Minister of Housing Announced • If fuel burning appliance in building service room - install in In March the Premier accepted the resignation of Linda service room and all suites adjacent to service room, Jeffrey as Housing Minister. Minister Jeffrey has served as adjacent to sleeping areas. Minister of Municipal Affairs and Housing since February 2013. Bill Mauro, MPP for Thunder Bay-Atikokan, becomes • If garage in building - install in all suites adjacent to garage, Minister of Municipal Affairs and Housing. In the Premier’s adjacent to sleeping areas. press release, she indicated that Minister Mauro’s focus Additional Obligations for Landlords and Tenants will be on working with municipal partners, perhaps • Landlord to provide CO and smoke alarm maintenance indicating a greater focus on municipal government issues instructions to tenant. rather than housing policy. (April 30, 2014 / 09:28:44) 85917-1 FRPO-MarchApril_p31.pdf .1
The Voice of the Federation of Rental-housing Providers of Ontario 31
Employment and Income in Rental Housing...Continued from page 11 Table: Employment Impact of Ontario’s Rental Housing Industry by Sector Employment Impact of Ontario's Rental Housing by Sector (FTEs) Industry Sector Ontario Other Total % Finance, insurance, real estate, rental and leasing and holding companies 34,826 1,442 36,268 22% Residential construction 30,633 - 30,633 19% Administrative and support, waste management and remediation services 14,538 1,592 16,131 10% Repair construction 9,402 266 9,668 6% Retail trade 8,734 1,641 10,375 6% Professional, scientific and technical services 8,354 1,301 9,655 6% Manufacturing 8,247 3,274 11,521 7% Other municipal government services 5,847 109 5,956 4% Utilities 4,280 173 4,452 3% Wholesale trade 4,006 1,105 5,111 3% Other 17,667 5,905 23,572 14% Total 146,534 16,809 163,343 100% Source: Statistics Canada I/O model, KPMG calculations There is significant labour income associated with Ontario’s rental housing industry. Labour Income is defined as all compensation paid to employees including wages and employer-paid social contributions. Total labour income generated by the rental housing industry is $9.25 billion. Of this impact approximately $8.29 billion, or 90 percent, is generated within Ontario. This large amount of labour income has a positive impact on Ontario, generating over $1.9 billion in income taxes…which is just a part of the industry’s total contribution of $7 billion in taxes to all levels of government. It is clear that the positive impact of Ontario’s rental housing industry goes far beyond the lives of the tenants who live in rental homes across the province. The industry has a large impact on Ontario’s GDP, infrastructure spending, tax revenues and employment. With better public policies in place, rental housing can continue to grow as a key driver of our province’s economy. (April 30, 2014 / 09:28:44) 85917-1 FRPO-MarchApril_p32.pdf .1
32 FAIR EXCHANGE March / April 2014 2014 Corporate Members
Media Classified Ace Painting and Decorating Company Aird & Berlis LLP Attn: Maryann Kalchos Attn: Frank Evangelou Attn: Robert Doumani 610 Applewood Crescent, Suite 401, Vaughan, ON L4K 0E3 39 Cranfield Road, Toronto, ON M4B 3H6 Brookfield Place, 181 Bay St., Ste. 1800, Box 754, Toronto, ON M5J 2T9 T: 905-761-3313 • [email protected] T: 416-285-5388 ex. 115 • F: 416-285-7088 • [email protected] T: 416-863-1500 • F: 416-863-1515
Alcor Elevator Antica Group Arctic Painting Ltd. Attn: Paul Pettener Attn: Marc Monette Attn: Steve Manikis F-72 Ditton Drive, Hamilton, ON L8W 0A9 9 Spruce Tree Lane, Stoufville, ON L4A 7X4 130 Melbourne Drive, Richmond Hill, ON L4S 2G7 T: 905-538-0171 • [email protected] T: 416-333-1436 • [email protected] T: 905-787-1222 • [email protected]
Avison Young Commercial Real Estate Blackstone Energy Brook Restoration Attn: David Lieberman Attn: Peter Stratakos Attn: Geoff Crist 150 York Street, Suite 900, Toronto, ON M5H 3S5 161 Bay Street, 27th Floor, Toronto, ON M5J 2S1 11 Kelfield Street, Toronto, ON M9W 5A1 T: 416-673-4013 • [email protected] T: 416-628-2828 • [email protected] T: 416-663-7976 • [email protected]
Brookfield Financial Leader in Apartment & Common Area Renovations Attn: Colin Catherwood Bryenton Energy Services The Byng Group of Companies Brookfield Place, Bay Wellington Tower, P.O. Box 762, Attn: Catherine Bryenton Attn: Rob Settino 181 Bay St, Suite 260, Toronto, ON M5J 2T3 130 Bridgeland Ave., Suite 101, Toronto, ON M6A 1Z4 511 Edgeley Blvd., Unit 2, Concord, ON L4K 4G4 T: 416-956-5212 T: 416-922-4440 • [email protected] T: 905-660-5454 • F: 905-660-9229
Carma Industries Inc. CMHC Ontario Business Centre
Attn: Rick Williams Federation of Rental-housingProviders of Ontario Attn: Paula Gasparro 132 Walsh Road, Lindsay, ON K9V 4R3 100 Sheppard Ave., E., Suite 300, Toronto, ON M2N 6Z1 T: 705-878-0711 • F: 705-878-1037 • [email protected] T: 416-221-2642 • F: 416-218-3310 • [email protected] For information on the benefits of Corporate Membership contact: CMLS Financial Cohen Highley LLP Attn: Harley Gold Lynzi Michal Attn: Joseph Hoffer 145 Wellington Street, West, Toronto, ON M5J 1H8 [email protected] • 416-385-1100 ex: 22 One London place, 255 Queens Ave. 11th Floor, London, ON N6A 5R8 T: 647-288-9309 • F: 416-646-1009 • [email protected] T: 519-672-9330 • [email protected]
Coinamatic Canada Inc. Delta Elevator Co. Ltd. Direct Energy Attn: Gord Alderdice Attn: Jeff Righton Attn: Rick Goodacre 301 Matheson Blvd., W., Mississauga, ON L5R 3G3 509 Mill Street,, Kitchener, ON N2G 2Y5 635 Westburne Drive, Floor 2, Vaughan, ON L4K 4T6 T: 905-795-1946 • F: 905-755-8885 • [email protected] T: 519-745-5789 • F: 519-745-7587 • [email protected] T: 416-771-4856 • F: 905-660-9229 • [email protected]
Enbridge Gas Distribution EnerCare Connections Inc. First National Financial LP Attn: Gillian Lind Attn: Scott Beneteau Attn: Mr. Peter Cook P.O. Box 650, Scarborough, ON M1K 5E3 4000 Victoria Park Avenue, Toronto, ON M2H 3P4 100 University Ave., North Tower, Suite 700, Toronto, ON M5J 1V6 T: 416-495-3064 • F: 416-495-6047 T: 416-649-1892 • F:416-649-1901 • [email protected] T: 416-593-1100 • F: 416-593-1900
Fuller Landau LLP Graffiti Buffer Gottarent.com Attn: Tatyana Sabitova Attn: John Kalimeris Attn: Genevieve Delaney, 151 Bloor St., W, 12th Floor, Toronto, ON M5S 1S4 5 Bowes Garden Court, Toronto, ON M1C 4L5 Sales Manager T: 416-645-6500 • F: 416-645-6501 T: 416-234-9222 • F: 416-234-9222 • [email protected] T: 416-857-9414 • [email protected] (April 30, 2014 / 09:28:45) 85917-1 FRPO-MarchApril_p33.pdf .1
The Voice of the Federation of Rental-housing Providers of Ontario 33
HCS Contracting HD Supply Canada Inc. IC Funding Attn: Kenny Hogan Attn: Basil Sealy Attn: Fred Grossman 277 Manitou Drive, Unit E, Kitchener, ON N2C 2T3 8885 Jane Street, Concord, ON L4K 2M6 747 Hyde Park Road, Suite 100, London, ON N6H 3S3 T: 226-338-1636 • [email protected] T: 416-276-8630 • F: 905-532-2380 • [email protected] T: 519-636-1551 • [email protected]
Interface J.D. Power & Associates Informa Canada Attn: Jeff Barrett Attn: Adrian Chung 10 Alcorn Ave., Suite 100, Toronto, ON M4V 3A9 543 Richmond St., W., Suite 101, Toronto, ON M5V 1Y6 130 King Street West, Toronto, ON M5X 1E5 T: 416-512-3809 T: 416-504-8100 • [email protected] T: 416-507-3257 • F: 416-507-3263 • [email protected]
Lincoln Paving Marsh Canada Limited MCAP Financial Corporation Attn: Anthony Taylor Attn: Michael Corcoran Attn: Lenny DelMedico 2001 Albion Road, Unit 22, Etobicoke, ON M9W 6V6 70 University Ave., Toronto, ON M5J 2M4 100 Via Renzo Drive, Suite 302, Richmond Hill, ON L4S 0B8 T: 416-771-9483 • [email protected] T: 416-349-4410 • F: 416-815-3522 • [email protected] T: 289-317-0859 • F: 905-508-4986 • E: [email protected]
MediaEdge Communications Midnorthern Appliance Multitech Contracting 2000 Inc. Attn: Paul Murphy Attn: Michael Gnat Attn: Carlo Lopes 5255 Yonge Street, Toronto, ON M2N 6P4 4250 Dufferin Street, North York, ON M3H 5W4 511 Milway Avenue, Concord, ON L4K 3V4 T: 416-512-8186 TF: 1-877-353-2850 • F: 416-635-4798 T: 416-990-4412 • [email protected]
Murray & Company Limited My Ideal Home Rental Network Noble Attn: Mr. Robert Lynch Attn: Richard Brown Attn: Mahendra Badlu 40 University Ave., Suite 502, Toronto, ON M5J 1S3 Landmark Technology Centre, Ste. 106-1726 Dolphin Ave. 7171 Jane Street, Concord, ON L4K 1A7 T: 416-598-0950 • F: 416-597-8415 Kelowna, BC V1Y 9R9 • T: 800-862-9874 • [email protected] T: 905-760-6874 • F: 905-760-6805 • [email protected]
Norstar Windows Phelps Apartment Laundries Ltd. Renters Guide Attn: John Vacca Attn: Don Neufeld Attn: Anne-Marie Breen 944 South Service Road, Stony Creek, ON L8E 6A2 8695 Escarpment Way, Unit 6, Milton, ON L9T 0J5 401 The West Mall, Suite 500, Etobicoke, ON M9C 5J1 T: 905-643-9333 • F: 905-643-3633 • [email protected] [email protected] T: 416-626-4266 • F: 416-626-8097 • [email protected]
Rogers Communications Rona Gray Associates • ScotiaMcLeod Attn: Greg Stokes Attn: Shayne Arthey Attn: Christopher Gray 855 York Mills Road, Toronto, ON M3B 1Z1 1170 Martin Grove Road, Etobicoke ON, M9W 4X1 95 St Clair Ave., W., Toronto, ON M4V 1N6 T: 416-446-6500 • F: 416-446-7416 T: 416-241-5129 • [email protected] T: 416-355-6363 • F: 416-355-6369 • [email protected]
Sparkle Solutions Stantec SOLID General Contractors Inc. Attn: Maria Mascall Attn: Martin Ling C: 416-435-1860 Attn: Carlos Munoz 2700 Steeles Ave., W., Unit 4, Concord, ON L4K 3C8 300-675 Cochrane Dr., West Tower, Markham, ON L3R 0B8 T: 905-475-0707 • [email protected] T: 905-660-2282 x 249 • F: 905-660-2268 • [email protected] T: 905-415-6386 • F: 905-474-9889 • [email protected]
Tac Mechanical Inc. TD Commercial Mortgage Group Toronto Star Attn: Patrick Carbone Attn: Frank Malone Attn: Brian Cordingley 36 Kelfield Street, Toronto, ON M9W 5A2 66 Wellington Street W., 39th Floor, Toronto, ON M5K 1A2 1 Yonge Street, 4th Floor, Toronto, ON M5E 1E6 T: 416-798-8400 • F: 416-798-8402 • [email protected] T: 416-944-6574 • F: 416-944-6650 • [email protected] T: 416-869-4879 • F: 416-869-4592 • [email protected]
Union Gas Limited Wyse Metering Yardi Systems Inc. Attn: Joe Meriano Attn: Mr. Peter Mills Attn: Peter Altobelli 777 Bay Street, Suite 2801, Toronto, ON 31 Davisville Avenue, Toronto, ON M4S 1G3 5925 Airport Road, Suite 510, Mississauga, ON L4V 1W1 T: 416-496-5318 • [email protected] T: 416-869-3003 x227 • F: 416 869 3004 • [email protected] T: 905-671-0315 • F: 905-671-9424 • [email protected] (April 30, 2014 / 09:28:46) 85917-1 FRPO-MarchApril_p34.pdf .1
34 FAIR EXCHANGE March / April 2014
UpcomingEVENTS
FRPO Annual General Meeting CFAA Rental Housing Conference Wednesday, May 7th 3:00pm - 6:00pm Monday, June 9 to Wednesday June 11 , 2014 Members only. Sheraton Vancouver Wall Centre Hotel, 1088 Burrard Vaughan Estates, 2075 Bayview Avenue, Toronto Street, Vancouver, British Columbia Visit http://www.cfaa-fcapi.org/ to register. FRPO Spring Golf Classic Wednesday, May 28, 2014 2014 FRPO MAC Awards Gala Charitable proceed donated to Interval House. Thursday, December 4, 2014 Angus Glen Golf Club, Markham 5:00PM - 9:00PM Metro Toronto Convention Centre, South Building To register for FRPO events, visit: http://www.frpo.org/events 2014 Associate Members Advertising & Publishing Services Energy Services Leasing Professionals HCS Contracting 4rent.ca Avacos Clean Energy Bonnie Hoy & Associates HD Supply Canada Find-A-Rental (Sun Media Corp) Blackstone Energy DALA Group of Companies H&S Building Supplies Ltd. gottarent.com Bryenton Energy Sheryl Erenberg & Associates Interface MediaEdge Communications Carma Industries Inc. Taeus Group Inc. Lincoln Paving My Ideal Home Rental Network Direct Energy Multitech Contracting 2000 Inc. National Efficiency Systems ECNG Energy L.P. Legal Services • Rent Control • National Concrete Accessories Places4rent/The Rent Board of Canada Enbridge Gas Distribution Property Tax New-Can Group Inc. Property Power Corp EnerCare Connections Aird & Berlis LLP Noble Rental Housing Business (RHB Magazine) Metrosphere Light Corp Argil Property Tax Services Paralegal Norstar Windows and Doors Ltd. RentCompass.com MultiLogic Energy Solutions Inc. Professional Corp Pascoal Painting & Decorating Inc. Renters Guide Novitherm Canada Inc. Blaney McMurtry LLP Property Power Corp. Rentseeker.ca Superior Energy Management Cohen Highley LLP Rona Inc. Toronto Star Union Gas Ltd. Debra Fine Barrister & Solicitor Sherwin-Williams Co. Windsolar Canada Ltd. Dickie & Lyman Lawyers LLP Solid General Contractors Inc. Appliances • Laundry Services Wyse Metering Fuller Landau LLP Spinnaker Recycling Corp. Coinamatic Gardiner Roberts LLP Sunrise Cleaning Service Harco Leasing Inc. Environmental & Engineering Homestead Paralegal Surefast Flooring Ltd. Midnorthern Appliance Consultants, Building Envelope Horlick Levitt Di Lella LLP Tac Mechanical Inc. Phelps Apartment Laundries Ltd. Mann Engineering Ltd. Landlord Solutions Trace Electric Sears Commercial Maritime-Ontario Environmental Inc. Optimum Legal Services Tremco Weatherproofing Technologies Canada Sparkle Solutions Halsall Associates Sandler, Gordon Barristers & Solicitors Pretium Anderson SPAR Property Consultants Ltd. Property Management Software Appraisers Market Analysis & Stantec Consulting Ltd. Yardi Systems Inc. Research Pest Management Altus Group Finances: Real Estate • Mortgage Magical Pest Control Inc. Real Estate Veritas Valuation Inc. Services Orkin/PCO Services Avison Young Commercial Real Estate Brookfield Financial Real Estate Group CB Richard Ellis Assessment Agency Canadian Mortgage Capital Corporation Property Maintenance • Primecorp Commercial Realty Inc. Municipal Property Assessment Corp. CMHC Construction & Repair • Supplies Skyview Realty Ltd. CMLS Financial Absolute Ventilation Inc. Stonecap Realty Partners Inc. Asset Management Cyr Funding Inc. #11681 Ace Painting & Decoration Company Larma Management First National Financial Corp. Advantage Bathtubs Refinishing Rental History • Tenant Credit TMDL Property Management Inc. Gray Associates - Scotia McLeod Akadian Construction Ltd. Recording • Collections IC Funding Antica Group Canadian Credit Protection Corp. LAWPRO APT Services Gatemaster Inc. Cable • Satellite • Telecom MCAP Financial Corporation Bell Canada Arctic Painting Rent Check Credit Bureau Morguard Investments Limited Associated Pro Cleaning Mirmir Group Murray & Company Limited Rogers Communications Inc. Brook Restoration Tenant Services Peoples Trust Company Byng Group of Companies RentMoola Scotiabank The Certified Group Tenant Pay Consulting TD Commercial Banking Clean Cut Painting & Decorating Ltd. The Communications Group Conterra Restoration Ltd. Training & Education J.D. Power & Associates Fire Safety Services D.A.J. Painting Ltd. WP Osborne Executive Search Inc. Institute of Housing Management Accurate Fire Protection & Security Davenport Construction Informa Canada DBS Elevator Maintenance & Repair PSN - Performance Solutions Network Insurance Dulux Paints Taeus Canada Alcor Elevator Ltd. Dan Lawrie Insurance Brokers Ltd. Empire Roofing Corporation Delta Elevator Co. Ltd. Marsh Canada Limited Florstar Flynn Canada Website Services Goodbye Graffiti Toronto Landlord Web Solutions (April 30, 2014 / 09:28:46) 85917-1 FRPO-MarchApril_p35.pdf .1
The Voice of the Federation of Rental-housing Providers of Ontario 35
Ontario's Strongest Rental Market...Continued from page 24
• Secondly, home ownership prices have been growing above the general rate of inflation over the past several years. With the cost gap between owning and renting rising, rental units were able to maintain their competitiveness even with above guideline increases at turnover.
It is important to note that outside of the major centres, many secondary and tertiary markets are seeing strong rent growth too. Migration patterns and local economic forces can often contribute to swift and acute changes in rents and vacancy rates in smaller towns, like Sault Ste. Marie, Midland and Orillia, which all saw two year rent growth exceeding 8% from 2011 to 2013. Notice that overall population growth is much less of a factor for rents in these smaller centres.
Strongest Markets (Secondary/Tertiary)
12% +10.4% 10% +9.2% +8.4% +7.6% 8% +6.8% 6% +5.5% 4%
Rent Growth 2011-13 Rent Growth 2011-13 2% 0% Sault Ste Midland Orillia Elliot Lake Belleville Ontario Marie Avg
Source: CMHC 2013. Rental Market Survey, Ontario Highlights, Fall 2013.
The evidence shows that for larger, primary housing markets, investors should consider population and household growth when gauging market and pricing conditions. For smaller towns and centres, more homework is needed to verify if strong rent growth is simply a recovery from previous weak-market conditions, or if other local economic or housing supply forces are a factor. (April 30, 2014 / 09:28:47) 85917-1 FRPO-MarchApril_p36.pdf .1
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