PREDICTIVE ANALYSIS - EFFECTIVE LEASING STRATEGIES - Hollyburn Properties
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T H E V O I C E O F T H E F E D E R A T I O N O F R E N T A L- H O U S I N G P R O V I D E R S O F O N T A R I O
NOVEMBER 2016
EFFECTIVE LEASING
STRATEGIES
TO FILL SUITES FASTER
TREND-SPOTTING
IN DALLAS, TEXAS
PREDICTIVE
ANALYSIS
...AND THE EVOLUTION OF APARTMENT PRICING
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COVER STORY
30 SMART HOME TECHNOLOGY 30
CONTENTS FEATURES
SEPTEMBER/OCTOBER 2016
12 REAL SUSTAINABILITY
26 THAT HOSPITALITY TOUCH
14 BROADENING YOUR
PROFESSIONAL NETWORK 28 AFTER TRAGEDY STRIKES
16 FINDING THE RIGHT TENANT
29 THE POWER OF VISUAL
STORYTELLING
18 LAST YEAR’S MAC
AWARD CRB WINNER 30 THE SCIENCE OF
REVENUE MANAGEMENT
21 EMBRACING INSTAGRAM
34 BOOSTING YOUR
ONLINE BRAND
22 INDUSTRY TREND-SPOTTING
35 A RECOGNIZED
INDUSTRY LEADER
26 25 FROM VACANT TO FULL
35 LUNCHING AND LEARNING
14 32 12
COLUMNS DEPARTMENTS
6 FRPO’S UPCOMING EVENTS 10 LEGAL & LEGISLATION
8 PRESIDENT’S PERSPECTIVE 24 FRPO MEMBER BENEFIT
20 CFAA REPORT PROGRAM
31 CERTIFIED RENTAL
BUILDING UPDATE
32 SMALL LANDLORD, BIG PROBLEMS
34
THE VOICE OF THE FEDERATION OF RENTAL-HOUSING PROVIDERS OF ONTARIO 3
EDITOR’S NOTE
REFLECTIONS
The voice of the Federation of
Rental-housing Providers of Ontario OF THE YEAR
EDITOR: Lynzi Michal • x22
lmichal@frpo.org THAT WAS
I
A PUBLICATION OF:
t’s hard to believe that we are approaching While there are still many unknowns facing
year end and this will be our last issue of the rental housing sector, such as licensing,
2016. I will have rounded out my first year climate change policy, the affordable housing
as Editor and I have to admit I’ve really strategy and possible changes in oversight
enjoyed writing for FE and putting content to the municipal planning process, FRPO will
20 Upjohn Road, Suite 105 together for our membership. We have made continue to engage both the industry and
Toronto, ON M3B 2V9 many changes to FE and will continue to refine government to find practical solutions as we
Tel: 416-385-1100 • www.frpo.org
this publication based on member feedback look to 2017. It is more important than ever for
DIRECTOR OF Lynzi Michal • x22 and the evolving needs of the industry. us to be at the table and working with other
MEMBERSHIP & lmichal@frpo.org
MARKETING: As we look back on the last 12 months, we’ve groups and agencies to develop fair policy
SUBSCRIPTIONS & Matthew Blow • x24 highlighted housing policy, industry events, around these topics and issues. It is unlikely
ADDRESS CHANGE: mblow@frpo.org
best practices from service providers as well that housing is a headline that will go away
as several 2015 MAC Award winners. We’ve any time soon.
seen our membership grow substantially this As 2016 comes to a close, many will reflect
year bringing on new housing providers and on the year’s achievements, failures and their
DESIGNED & PUBLISHED BY:
supplier members, which strengthens the goals for the next 12 months, both personally
voice of the association. Our government and professionally. It’s the time to celebrate
relations team have been engaged in more accomplishments, acknowledge the lessons
5255 Yonge Street, Suite 1000
consultation sessions than ever before. The learned and start 2017 with a renewed
Toronto, ON M2N 6P4 Certified Rental Building Program continues to outlook. The upcoming holidays will hopefully
Tel: 416-512-8186 • Fax: 416-512-8344
Email: info@mediaedge.ca increase in size as potential renters recognize give us all a break from the work week, allow
the benefits of living in a certified building us to spend time with our loved ones and
PUBLISHER: Mitchell Saltzman • x222
mitchells@mediaedge.ca and look to sustainability. Interest in the MAC motivate us to challenge ourselves in the
EXECUTIVE EDITOR: Erin Ruddy • x266 Awards continues to trend upwards and the year ahead.
erinr@mediaedge.ca quality of the submissions exceeds years past. In closing, we at FRPO couldn’t be more
DIGITAL & SALES Paula Miyake Pigoli • x263 There are many things to be proud of as proud of our industry. Our members continue
COORDINATOR: paulam@mediaedge.ca
an industry over the last year. We saw our to work diligently in our communities,
SENIOR DESIGNER: Annette Carlucci
members warmly welcome thousands of delivering high quality rental housing to
DESIGNER: Jennifer Carter
Syrian refugees and help them to adjust to millions of Ontarians and providing the
SALES: Sean Foley • x225
their new homes. FRPO members raised service that residents deserve when living in
Stephanie Philbin • x262 $60,000 for Interval House through our annual a professionally managed building. Looking
PRESIDENT: Kevin Brown golf tournament. These funds will be used forward, we know that our determination
GROUP PUBLISHER: Melissa Valentini to support women and children who have and commitment to housing will enable to us
suffered abuse and provide the programming to take on new challenges effectively in the
that they require to start over. The Spring Hope years to come.
Food Drive continues to bring in hundreds of From all of us at FRPO, we wish you a
FRPO IS A MEMBER OF: thousands of pounds of food to stock local joyous holiday season filled with love, laughs
food banks in over 35 communities in the and lots of rest. All the best in 2017 and see
province. We also saw our members spring to you back here in January.
action following the devastating fires in Fort
Opinions expressed in articles are those of the authors and do not
necessarily reflect the views and opinions of the FRPO Board or McMurray. Members provided discounts to
Management. FRPO and MPH Graphics accepts no liability for information
contained herein. All rights reserved. Contents may not be reproduced evacuees, held fundraisers and even created LYNZI MICHAL
without written permission from the publisher.
a housing registry for the victims to more easily Editor, FE magazine
track down new housing. Director of Membership & Marketing, FRPO
4 FAIR EXCHANGE | NOVEMBER 2016
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FRPO UPCOMING EVENTS
UPCOMING
INDUSTRY EVENTS
CMHC RENTAL MARKET CFAA RENTAL HOUSING CONFERENCE
JAN SURVEY BREAKFAST JUN June 6-8
01 January/February 2017
This event will take place in January/February 2017. 06 Westin Prince Hotel, Toronto
This event will take place June 6-8th and is being held
The membership will be notified once the date is at the Westin Prince Hotel in Toronto. Talks by keynote
finalized for this very popular event. CMHC will provide the speakers including Benjamin Tal, as well as more than 60 landlords,
findings in both Ontario and the Toronto region from the 2016 consultants, rental suppliers, and other experts in 30+ sessions! Please
Rental Market Survey. visit www.cfaa-fcapi.org for more information. Early bird rates available!
SPRINGFEST NAA EDUCATION CONFERENCE
MAY May 3 JUN AND EXPOSITION
03 Register now for Springfest admission. Springfest is
free and limited to 1,700 qualified property managers, 21 June 21-24
Registration is OPEN! It's time to Apartmentalize, which
building owners, developers, facility mangers, means taking your career, your company and your
plant engineers, multi-residential board of directors, building residents' experience to the next level. Achieve greater success
operations and maintenance staff responsible for office, industrial, in all three areas by joining us in Atlanta to attend the apartment
condominium, apartment, medical, educational, retail, and industry's premiere event - the 2017 NAA Education Conference &
institutional buildings. Find out more at www.springfesttoronto.com Exposition. Learn from world-class speakers and industry experts,
network with nearly 10,000 of your peers, and get access to
innovative products and services from over 450 top suppliers.
Get Focused. Get Inspired. Get Going. Find more information at
www.educonf.naahq.org
6 Untitled-2 1
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PRESIDENT’S
PERSPECTIVE
THE YEAR OF
CONTINUOUS
IMPROVEMENT
SCOTT ANDISON Moving the industry forward
President & CEO, FRPO
T
he year 2016 has been, without a are seeing the traction that this has generated policy options and provide our own evidence
doubt, one of the most intensive to the benefit of the entire industry. and advice on how to improve outcomes
years to date in the association’s Our investment eight years ago in for tenants, the economy as a whole, and
30-year history. From launching developing the Certified Rental Building planning for the future. Now I am the first to
new membership programs, to rolling out program has allowed us to further our public admit that what we have seen so far is far from
more accredited buildings in the Certified image and brand as a responsible industry perfect, and definitely not consistent across
Rental Building program, and engaging with that is committed to quality and continuous all of the industry’s issues, but what I can say
government at an unprecedented pace, improvement. Through these collective is that we have never been invited to the table
FRPO has been at the centre of everything efforts we have been able to significantly with government on nine different initiatives
that has been supporting and impacting the influence perceptions and thinking at the over a period of nine months.
rental housing industry in Ontario. municipal level when examining the need for Most recently, it was announced that the
The staff team at FRPO has risen to the government oversight and intervention. Our new Minister of Housing’s mandate includes
challenge to seek out new and innovative recent work with the City of Toronto on the a commitment to setting up a dedicated
ways to continually improve how we deliver licensing file is but one example where we industry partner’s table with the rental
services, and to enhance the programming have made significant progress in injecting housing industry to engage directly on
in our events, seminars and information more realistic perspectives in options improving overall outcomes—this has never
products offered throughout the year. I am being considered by decision makers. The been done before, and came about through
extremely proud of the team’s efforts, and government of British Columbia recognized our engagement efforts and strategy to
continue to be amazed at the effectiveness late last year the merits of our CRB program find a new way to advance our goals and
of what they do. and opted to support the adoption of FRPO’s objectives. More details will be available
Our key themes throughout 2016 have best in class standards program rather than on this soon, but for now this is a significant
been to continually demonstrate how build their own government-run standards step forward for FRPO and the industry,
the rental housing industry is committed regime. This is just one example of why with a hope that a more prosperous future
to continuous improvement, supporting getting out front of an issue is critical—it lies ahead.
sustainable communities, and demonstrating allows you to better control your own fate, These outcomes would never be
a willingness to innovate and be forward rather than have it controlled for you. possible without the ongoing support and
thinking. From the design of our events Our strategies with the Ontario government commitment of FRPO’s members, and on
and training, to our approach to policy and these past couple of years resulted in an behalf of the entire FPRO team and board
advocacy work with government, we ensure unprecedented level of information exchange of directors, I want to say thank you. I am
that our focus is always on where we need to and consultation with the industry. We have looking forward to continuing to champion
go, not only where we feel we can. While this never before seen this level of opportunity further progress in 2017 for the betterment of
has taken a lot of commitment and energy, we to directly engage in the development of the entire rental housing industry.
8 FAIR EXCHANGE | NOVEMBER 2016
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LEGAL & LEGISLATION
AFTER THE
DUST SETTLES
Avoiding multi-tenant abatement claims
BY JOE HOFFER, COHEN HIGHLEY LLP
R
esidential landlords who do major
renovations and repairs that in
turn cause inconvenience and
disruption to tenants’ use of their
apartments invariably invite tenant claims
for compensation. It is common for a group
of tenants to consolidate their claims in a
manner similar to a class action, and to seek
substantial abatements of rent based on the
contention that the landlord was in breach
of the statutory obligation prohibiting
“interference with tenants’ reasonable
enjoyment” of their rental units. The key to
successfully defending against such claims
is to prove to the Landlord and Tenant Board
(LTB) that the carrying out of the work was
done in a reasonable manner and that the
application should therefore be dismissed.
Under the Residential Tenancies’ Act,
2006 (RTA), and until relatively recently,
a landlord would automatically be
exposed to liability to pay abatements of
rent in any situation where tenants were
inconvenienced as a result of disruptive
repair work. Landlords doing balcony landlords to do such work, if the work with tenants’ use, and it is arguably
work; window or roof replacement; riser caused tenants inconvenience, then they unconstitutional to force landlords to break
replacements; comprehensive building were entitled to a rent abatement. the law by maintaining their properties.
envelope work; boiler replacement; and The Federation of Rental Housing FRPO also asserted that in the absence of
parking garage remediation will, by default, Providers of Ontario (FRPO) and other regulatory relief from financial liability, the
“interfere” with tenants’ use and enjoyment landlord associations threatened to work would not get done unless abatements
of their rental units. The work is noisy, dusty, challenge the legality of the conflict inherent could be recovered in an Above Guideline
and oftentimes prevents tenants from using in the RTA between a law that forces landlords Rent Increase (AGI) application. Remediation
features of their tenancy, such as a parking to “maintain and repair” and at the same and upgrading of existing rental housing
space, or their balconies, or for those on time makes it unlawful to “interfere” with stock is an important legislative priority
shift work, a decent day’s sleep. Courts tenants’ use and enjoyment. It is impossible so the Province has created regulatory
had previously ruled that, regardless of the to “maintain and repair” major apartment relief for landlords, provided a legal test of
legal obligation imposed by the RTA forcing building components without “interference” “reasonableness” is met.
10 FAIR EXCHANGE | NOVEMBER 2016LEGAL & LEGISLATION
Most multi-tenant applications based on Committee [CCDC] Stipulated Price and changes to timelines are also helpful,
landlord “interference” are brought after Contract) and other agreements which are not just for residents, but also in satisfying
the work is finished, but the landlord has specialized for the work to be done (i.e. an LTB Member that the landlord is acting
filed an AGI to recover the capital costs of elevator cab or boiler replacement and reasonably during the course of the work.
the work and the tenants seek to offset any upgrades). The contractor responsible for Labour costs incurred for these items are
increase with an abatement order from the meeting the contract specifications will recoverable in an AGI as long as they are
LTB. Landlords who have failed to plan for usually be an “independent contractor” properly documented.
the risk and consequences of a multi-tenant who, for WSIB, licensing, and other
application do so at their financial peril. regulatory purposes, has full control of 5. Dealing with “unreasonable” contract
the work site and full responsibility for performance: Not all contractors are
THE RTA “LEGAL TEST” WHICH hiring and firing employees doing the perfect. On more than one occasion
EXONERATES LANDLORDS FROM LIABILITY work. The landlord’s role is restricted to landlords have had to deal with
Section 8 of Ontario Regulation 519/06 monitoring contract compliance to ensure contractors cutting corners and failing to
articulates the key legal test landlords must that the work is carried out in accordance meet performance standards required by
meet to be exonerated from legal liability with the technical specifications in the the contract. Work can be substantially
for tenant inconvenience. If the landlord has tender/contract documents and that the delayed due to contractor deficiencies,
done major repairs, maintenance or capital work is completed within the time frames which are identified by the landlord’s
improvements, and the work is “carried out specified in the contract. This monitoring consultants and which must then be
in a reasonable manner,” then the Board is role is usually delegated to an agent or corrected. Such delays heighten the risk
prohibited from making a finding that the employee of the landlord, such as an of a successful multi-tenant application
landlord has substantially interfered with engineer or other qualified consultant. based on the contention that the “carrying
tenants’ enjoyment of their tenancy, even if out of the work” was unreasonable. In our
as a practical matter there was substantial 3. Ensuring the work is “carried out” view, if the landlord can prove that the
disruption to tenants’ use and enjoyment of reasonably: If there are no deficiencies added delay and inconvenience is the
their tenancy. in compliance or performance with the result of contractor deficiencies, and this
So what is “reasonable” in the context of contract, including meeting projected is usually documented in the progress
the “carrying out of the work?” Compliance time lines for completion, then the legal reports of the landlord’s engineer or
with, and adherence to, professional industry test to exonerate the landlord from other supervisory consultant, then the
standards is a hallmark of reasonableness. liability is met. If there are performance Landlord should not be held liable. The
delays (which often happens in cases RTA (s. 29) states that there is liability if the
1. Before the work begins: Landlords involving remedial concrete repairs, or interference is caused by the “Landlord,
who retain a professional engineer manufacturing delays as often happens superintendent, or agent of the landlord.”
to assess building conditions and with balcony railings) then there is Independent contractors are not “agents
make recommendations based on the potential liability. Delays which are caused of the landlord” and consequently, if the
Condition Assessment will satisfy a by the conduct of third parties or which are landlord can prove that the independent
preliminary requirement to show that otherwise beyond the landlord’s control contractor is responsible for excessive
the work was properly mandated. If (weather, labour disruptions) should not interference, the landlord should not be
the landlord then retains or employs attract liability. Detailed progress reports held liable.
professionals (ie: an Engineer, Architect, from the project coordinator, engineer
designated construction professionals) to or other supervisory staff constitute In summary, what the RTA imposes on
prepare and commission tenders based excellent evidence and proof of valid landlords is an obligation to act professionally
on industry specifications and to review reasons why the duration of work may and reasonably in carrying out major repairs,
and recommend successful bidders, this exceed projected time lines, thereby renovations and replacements at residential
will show that the scope of the work was avoiding liability. complexes. The legislation recognizes that
appropriate, “necessary”, and initiated there can be unforeseen circumstances
consistent with professional standards. 4. Tenant communications are vital: While which delay completion of projects and
Some landlords will have construction not a necessary component of the legal result in a backlash from residents; however,
professionals on staff, but most are test, a key strategy for mitigating risk is it also provides an opportunity for landlords
likely (and expected) to use third party for the landlord to ensure that tenants to escape liability, provided the reasons for
professionals for major projects. If work are given advance notice of the nature delay are properly documented. Landlords
is planned to improve “curb appeal” of of work to be done; its likely impact on who follow the steps outlined above,
the building, the Landlord should consult tenants’ use and enjoyment of their including professionally planning and
with a legal advisor for the best strategy rental units; projected timelines and documenting the process before the shovel
to avoid liability. reasons why projected timelines may goes in the ground, will avoid financial
not be met; and, recommendations liability to tenants after the dust settles and
2. Retaining the contractor and monitoring to minimize adverse impacts from the the AGI is filed.
the work: Most contracts for major work (i.e. assisting elderly residents
remedial work are negotiated and in removing material from balconies, Joe Hoffer is a Partner with Cohen Highley LLP.
implemented using standard, industry providing “quiet rooms” for use by stay- Cohen Highley’s Residential Tenancies Group has
construction agreements (i.e. the at-home residents). Ongoing tenant successfully processed AGIs for thousands of rental
units in the GTA, while ensuring that Landlords have
Canadian Construction Documents communication reporting on progress avoided liability to pay rent abatements.
THE VOICE OF THE FEDERATION OF RENTAL-HOUSING PROVIDERS OF ONTARIO 11FEATURE
REAL SUSTAINABILITY
The key ingredient for multifamily living
BY NADINE GUDZ, DIRECTOR, SUSTAINABILITY STRATEGY
S
ince the 2008–2009 recession, Overwhelmingly, the demographics of concerns are deeper. They care about green
construction rates for multifamily residents who live in these units skews supply chains – operationally, financially and
dwellings have recovered at a faster toward much younger generations. The environmentally. By integrating sustainability
pace than those for single-family key to keeping this audience engaged is practices into building design and choosing
homes—increasing in four of the five years understanding what they care about and truly sustainable products and materials,
following the recession, per research from delivering against it in a meaningful way. developers and architects can provide the
Canadian Megatrends. This data confirms According to a Nielsen study, today’s sustainable living environment that today’s
that multifamily dwellings are here to stay, young home seekers are more green-minded renters, and their future tenants, are seeking.
surpassing new construction of single-family than any generation before them. They’re Along with being more green-minded
homes in 2010 and peaking in 2013 with the looking for more than just energy savings, than ever, today’s renters are willing to back
highest number of new units since 1977. low-flow toilets and LEED certification. Their up this preference by paying more for it. A
12 FAIR EXCHANGE | NOVEMBER 2016recent survey from the National Multifamily
Housing Council revealed that renters will
Developers must take note of these increasingly
pay more to live in sustainably designed
apartments. In fact, survey respondents
popular preferences and market toward them to
said that they would be willing to pay an
extra $32.64 a month just to live in a space
continue engaging new consumers.
with a “green building” certification, such as
a Leadership in Energy and Environmental • 50% of all raw materials used are recycled and productivity. Incorporating biophilic
Design (LEED) certification. or bio-based design into spaces is one of many ways to
Developers must take note of these • 92% reduction of GHG emissions from create more sustainable and healthy living
increasingly popular preferences and baseline footnote needed? 1996? environments for residents.
market toward them to continue engaging • 50% product carbon footprint reduction Although Interface is on its way to achieving
new consumers. Forty-three percent of its Mission Zero goals of eliminating its
survey respondents indicated that they want Interface has incorporated sustainability environmental impact by 2020, the company
to see information online about sustainable into every facet of its business, from recently launched a new mission – Climate
features within an apartment, confirming manufacturing to product design. For Take Back – focused on creating a path
that apartment owners must focus their example, it has diverted 150,000 tons of for Interface and others to reverse global
marketing efforts to the preferences of carpet and carpet scraps from landfills since warming, not just reduce carbon emissions.
today’s green-minded renter. 1994 through its ReEntry™ program. And the Just as Interface is more than carpet,
One way to do this is by incorporating company’s Net-Works Initiative partnership, multifamily properties are more than brick
sustainable products and design into a model of inclusive business is designed to and mortar. Any company and industry
the apartment’s interior. For instance, tackle the growing environmental problem of can become restorative through the
Interface, the world’s largest manufacturer discarded fishing nets in developing-world power of influence. Developers, architects,
of modular carpet tile and a leader in vulnerable coastal communities, has led to and designers can provide a beautiful,
sustainable business, creates products the collection of more than 100 tons of nets, sustainable, and restorative place for people
with sustainability as its core goal. For more which are then recycled to create yarn for its to live while driving profits for their business.
than 20 years, the company has been at the carpet tiles. Key point here is social impact Via transparency and a life cycle approach;
forefront of integrating sustainability into its and the creation of community-based banks. encouraging low carbon products and
business with its bold and innovative Mission Furthermore, Interface is creating implementing a biophilic design approach
Zero – Interface’s goal to eliminating any environmentally-friendly products that are are two good places to start.
negative impact it has on the environment not only good for the environment, but also
by the year 2020. good for the people who encounter them. Interface is proud to provide FRPO members
This commitment has driven significant This philosophy is highlighted through its exclusive pricing on their carpet tile products
sustainability progress for Interface: commitment to biophilic design, an ethos, ensuring easy maintenance and replacement. By
definition, Interface is the world’s largest designer
• 84% of the energy Interface uses globally practice and design approach that recognizes and maker of carpet tile. Ray Anderson founded
is renewable (96% in the Americas) how human beings have a connection with Interface in 1973 because he believed in the global
• 91% reduction in waste to landfill nature that affects their overall well-being potential of carpet tile. From mill to management,
vision has always been the rule—not the exception.FEATURE
BROADENING
YOUR PROFESSIONAL NETWORK
Why industry associations should be an important part of your sales and
marketing strategy
BY MARY ONGARO
W
e are fast approaching the associations host numerous functions that The spring and fall socials are always
end of the year, and for most give us the opportunity to 'meet and greet' great events to catch up with existing and
of us, this time will consist of the people we want to conduct business prospective clients. They give you a chance
budgets, trade shows, galas with. However, our associations can only to not only meet up with property manager/
and festive gatherings. This is the time to help us so much. We need to take an active owner members as well as other suppliers.
build new relationships with prospective role in engaging in the opportunites they Never discount other supplier members at
clients and renew old relationships with give us. a function, they know people you don't and
existing clients. As a supplier member of FRPO, I know I vice versa. They too can help open doors
Industry associations should be an need to get in front of my client pool—both for you and provide introductions. Joint
important part of your sales and marketing existing and potential—every chance I get. ventures and referrals will benefit you and
strategy. Your associations can be of great This is where associations can play an other corporate and associate members.
help in this area of business, and potentially important role. The social functions that are Attending social events, and trade shows
save you hours of legwork, phone calls and held annually help to put my company and will help you stay current on the trends in
surfing the internet to find out who it is you myself in front of the people I need to see your area of expertise and will help you
need to meet. It’s also important to show or meet. Make no mistake, attending social gather important information that can easily
your support for the industry you work in. functions is a key marketing strategy for give you a leg up on your competition.
Associations help fund new programs and any company. The networking I do at these Exhibiting at the association trade shows
education, develop policy and improve events increases my company’s exposure or participating on an educational panel
operating conditions for your customers. and helps provide me with new leads that are valuable touchpoints. Volunteering at
Who do we need to meet and how do we might be hard to obtain otherwise. While association events gives you the opportunity
go about meeting them? To get the biggest not a golfer, I volunteer my time to help to meet many attendees, not just those at
bang for your networking dollar, you need with the annual golf tournaments of various your table or part of your foursome.
to make sure your face, company image associations. This puts me in eyesight of, Meeting prospective clients at a function
and your message, gets in front of the right and gives me the opportunity to talk to the (be it a seminar, social or gala) is only the
people on an ongoing basis. Each year our people I want to. first step of relationship building. What you
14 FAIR EXCHANGE | NOVEMBER 2016FEATURE
do after the function will determine if you • Events will have you leaving with new Support your associations. See you at the
were successful or not. Follow up on all ideas, new contacts and a renewed next function!
leads, and if you did not get their contact sense of motivation.
information, call your association team • Volunteering at one of the many charitable Mary Ongaro is the President of Absolute
member for assistance. Most associations oganizations that our associations support, Ventilation and a long standing FRPO Member.
produce a membership directory so this can you may be surprised by how many of our Absolute Ventilation provides insuite dryer,
bathroom exhaust vent cleaning, make up air
also be a valuable source of prospects and/ industry leaders will be there as well. shaft cleaning, laundry room dryer exhaust vent
or contact information. • Joining a committee will open doors to cleaning and HVAC duct cleaning.
Don’t hesitate to ask the staff at your the people you need to meet and see to
association to help you. Staff can introduce grow your business while supporting the
ByngGroup_FRPO_November_2016_FINAL.pdf 1 2016-11-15 4:51 PM
you to prospective clients in numerous association’s directives.
ways. Become a sponsor at an event, join
a committee, attend seminars or other
events offered by your local associations.
Attending seminars that may not be directly
related to your business, again provides an
opportunity for you to be seen by potential
clients. These type of events also help
to increase your industry knowledge and
give you a better understanding of the
environment that your clients work in. Take
advantage of marketing opportunities by
advertising in your association’s magazines
or newsletters. All of these steps offer a
perfect opportunity to build relationships
with prospective clients while supporting
your association publications. Many of
these publications look to members to
help provide educational content, so write
an article and help update other members
on new products or services and best
practices. C
It really comes down to this: the more
M
you give, the more you get. Continued
involvement in your association provides Y
you the opportunity to stay in the forefront ofCM
people's minds and shows your commitment
MY
to the industry.
CY
WHY SHOULD WE SPONSOR AND/OR CMY
ATTEND NETWORKING EVENTS, OR
VOLUNTEER ON COMMITTEES?
K
Involvement = Action
Action = Results
• These events provide us with an excellent
opportunity to build and maintain
business relationships and brand our
products and services.
• When confronted with a room full of
people from our industry, we are bound
to discuss what is happening in our
target market areas. We will learn what
new trends our prospective clients are
looking for and we will discuss tried and
true practices.
• We will connect with the leaders in our
industry. Networking and social events
provide us with an environment in which
we can feel confident to approach
prospective clients.
THE VOICE OF THE FEDERATION OF RENTAL-HOUSING PROVIDERS OF ONTARIO 15FEATURE
FINDING THE
RIGHT TENANT
How pricing audits and mystery shops can be an important part of an
effective leasing strategy
BY KIM REID
T
oday’s incredibly competitive competitors. Combining both these tools (a for before the showing? Is the unit ‘rent
housing market has been a pricing audit and a mystery shop) offers a ready’? How knowledgeable are staff
landlord’s dream, leading to comprehensive, unbiased, and realistic view about the entire move-in and rental
exceptionally low vacancy rates of a company’s leasing experience. experience? Are they able to pick up on
as many tenants choose to keep renting the customer’s ‘body language’ about the
instead of trying to buy a pricey home. TURNING KNOWLEDGE INTO TENANTS unit, and politely inquire about what the
But no matter how ‘hot’ the rental So you’ve done your pricing audits and customer likes and does not like?
market becomes, vacancies still occur. mystery shops and know the strengths and • Closing skills. Has the customer filled
Those companies who have developed an weaknesses of your business. Now it’s time out an application for the apartment? If
outstanding leasing experience and who to use this information to ensure you are not, have staff found out why and do they
have done their ‘homework’ through pricing offering a superior leasing experience. have a plan for follow-up?
audits and mystery shops will find it easy to fill First and foremost, attracting and keeping
their vacancies quickly, with the ideal tenant. good tenants is about relationships. People Once the tenant does move in, continuing
rent apartments from those they like, know, to offer great customer service is integral.
IT ALL STARTS WITH THE RESEARCH and trust and not from those they feel are Research shows that acquiring a new
To be competitive, you have to know what trying to “sell” them on a home that does not customer is anywhere from five to 25 times
your competition is doing. In the rental market, meet their needs. more expensive than retaining an existing
gaining that competitive edge starts with In order to build these relationships, one. What’s more, highly satisfied residents
conducting a market survey, also known as a your staff should have certain fundamental can often be your best source for new ones.
pricing audit. Pricing audits allow companies skills and training. Customers can quickly Ultimately, the goal of sales and customer
to compare their rental costs and building determine if their business matters. For service for rental housing providers must
amenities with other apartments in the same starters, they should have… be to “stop selling and start helping.” Your
region. However, although pricing audits can • Excellent telephone and online prospect has a problem; they need a new
give you important quantitative data, it’s equally communication skills. Is the phone home. Coincidentally, you likely have
critical to have qualitative information as well. answered and does it rarely go to voice something available. It’s your job to show
Management thinker Peter Drucker is mail? Has your company established them why your company is the one that can
often quoted as saying that "you can't timeframes for when voice mails and open the door to the perfect apartment they
manage what you can't measure." Mystery emails must be returned? Are your staff will love to call home for years to come.
shopping is an ideal strategy to measure aware of and meeting these expectations?
the intangible aspects of your business and • The know-how to properly show a unit. Taeus Group provides training programs, which
easily helps you to identify opportunities for Does the staff member know the type include: leasing, customer service excellence,
improvement. Similar to a pricing audit, a of apartment the customer is looking communication skills, understanding AODA, and
Human Rights and Privacy Legislation.
mystery shop compares your building with
other local competitors, but in this case it’s
the knowledge and customer service of staff
that is also being evaluated. It’s important
to share the results of a mystery shop with
your staff and discuss both the positive
results, as well as the areas of concern.
Most businesses typically notice a dramatic
improvement following a mystery shop.
Having your own staff conduct a mystery
shop in their own neighbourhood can be
extremely useful in helping you to figure
out what differentiates you from your
16 FAIR EXCHANGE | SEPTEMBER/OCTOBER 2016FEmagazine_CynergyM_ad_110116_OL.indd 1 2016-11-01 1:05 PM
FEATURE
LAST YEAR’S
MAC AWARD CRB WINNER
Oxford Properties continues on its winning ways as it moves forward to lead
the industry in sustainability excellence
BY TED WHITEHEAD, DIRECTOR OF CERTIFICATION
A
t the 2015 MAC Awards, Oxford
Properties became the first
recipient of the Certified Rental
Building (CRB) Member Award
(under 15 buildings). As a founding member
in the CRB program, Oxford Properties has
long had a dedicated focus on continued
excellence in the quality of service and the
quality of apartment product they provide to
the many thousands of residents who make
their home with them.
“Being the first-ever winner of the CRB
member award at last year’s MAC awards
was truly an honour for Oxford Properties
and for all our staff,” states Andrew Lowe,
Director Residential Real Estate. “We have
a strong focus on excellence and quality
in everything we do at Oxford Properties,
so being the first award winner against so
many worthy recipients is recognition that
we are on the tight track.”
While never taking their eye off the quality
CRB focus, Oxford Properties is now zeroed
in on creating Sustainability Excellence, certification options available that would multi-res industry best practices and
in the multi-res industry, by embracing address the uniqueness of the multi- provide some insights to Oxford‘s Multi-
the CRB program’s new Living GREEN res industry space and worked with our Res Leadership team for Ontario. “The goal
Together™ standards. Many business culture. The CRB program’s “Living GREEN was to help us understand the next steps
scholars lament that the pursuit of any area Together™ (LGT) environmental standards fit to creating sustainability excellence, and to
of business excellence always starts with our needs the best.“ build on the momentum we have generated
clear organizational vision. Oxford publically Daniela Agnoletto, Project Manager to date,” states Steenburgh.
states its vision for all to view. Sustainability adds, “The LGT standards On Friday, October 14, Ted Whitehead, CRB
Those same scholars will then go to recognize the fact that we house hundreds of Director of Certification, and Deb Cohen of PSN
advise that highly successful organizations people and their households in each of our Solutions presented a series of best practice
engage and empower their people to be an buildings. We firmly believe that if we do not findings and tips to an enthusiastic group from
active participant in sharing that vision. successfully engage our frontline employees, the Oxford property management team. The
A recent employee survey indicated and actively involve our residents in greening presentation topic was “Vision, Commitment,
that over 74% of employees are actively our apartment communities then we are Engagement” and the presentation itself
engaged in working towards Oxford not demonstrating our commitment to our delved into best practice findings on how
Properties' sustainability vision. vision of sustainability excellence. The CRB to engage residents through impacting
Bert Steenburgh, General Manager program’s LGT standards provide us with the positive behaviour change. At the end of
Residential Real Estate states, “Having a framework to move to this next step.” the presentation, the audience members
clear vision of where we were headed, At the request of Oxford Properties, participated in the first-ever, CRB Living GREEN
we then looked for the best industry the CRB program was asked to research Together Survivor’s Challenge Game.
18 FAIR EXCHANGE | SEPTEMBER/OCTOBER 2016FEATURE
support their efforts to encourage others etc.). Undoubtedly, these efforts have been
living in our complex to live green and keep driven by the continued rise in utility costs
our community clean. The audit showed us across North American communities and
we are on the right track, but still have some the need to reduce consumption wherever
work to do.” prudent and possible. There is some
It is easy to see why Oxford Properties evidence now that the industry is beginning
and their staff excel at what they do… in to be maxed out on current technologies
keeping with CRB’s often-stated slogan it is that are available to them to reduce energy
evident they live it – “We Say What We Do, and water consumption and that make
and Do What We Say” business sense to employ.
“In sustainability too often we mistake
BEST PRACTICES RESEARCH our initial steps to the final steps in our
“Unlike most organizational change that strategy because we do not have a vision of
takes place, sustainability demands an what is possible, and a road map of how we
Recognizing that measurement understanding of societal change agenda!” get there”
and results are often the true tests of (Embedding Sustainability in Organizational The very nature of industry in a continued
performance, Oxford has also teamed Culture – A Systematic Review of the Body rising utility cost environment will always
up with the CRB team to pilot the Living of Knowledge) – Completed by Network for drive our members to seek out new products
GREEN Together™ Site Verification/Audit Business Sustainability. and technologies. With this in mind, our
Project. Anthony Mota, Property Manager, As we researched best practices in multi- research led us to a best practises area
for Oxford’s Goldengate complex, quickly res sustainability leadership across North where there is still a major opportunity to
volunteered his apartment community (over America, it became evident that a majority impact multi-res consumption rates through
600 units) to be first up for the audit project. of the industry’s efforts to date have been “resident engagement and involvement
“We are working diligently to engage our focused on making material changes to the practices”. Largely still in its infancy across
residents to act responsibility, and to keep physical plant that provides basic services Ontario, Canada, and North America, it
our Goldengate community green and to the residents, i.e. HVAC (heating & does present a unique opportunity to lower
safe,” states Mota. “We have an active cooling), lighting (LED), water consumption, the environmental operating footprint within
resident environmental committee and (toilets, energy efficient laundry appliances, a multi-res community.
ARE YOU CONTEMPLATING THE SALE OF David Montressor*
YOUR APARTMENT PROPERTY? Executive Vice President
416.815.2332
david.montressor@cbre.com
Consider the following: * Sales Representative
CBRE Real Estate Brokerage Limited
• Who will represent your best interest?
• Who will give your property maximum exposure? Please visit our website:
• Who will deliver the highest value for your property? www.cbre.ca/nag-toronto
With over 25 years experience, tens of thousands of units sold, and hundreds of clients
represented, we have consistently delivered superior results. Through our local and national
coverage, we create maximum exposure, ensuring maximum value for your property.
$52.3 M $50.2 M $46.0 M $22.7 M
2770 Aquitaine Avenue 1485 Williamsport Drive & 3480 111 Lawton Boulevard 5 Rittenhouse Road
Mississauga, ON Havenwood Drive, Mississauga, ON Toronto, ON Kitchener, ON
$293 per unit $194 per unit $303 per unit $217 per unit
This disclaimer shall apply to CBRE Limited, Real Estate Brokerage, and to all other divisions of the Corporation; to include all employees and independent contractors (“CBRE”). The information set out herein, including, without limitation, any projections, images, opinions, assumptions and estimates obtained from third parties (the “Information”) has not been
verified by CBRE, and CBRE does not represent, warrant or guarantee the accuracy, correctness and completeness of the Information. CBRE does not accept or assume any responsibility or liability, direct or consequential, for the Information or the recipient’s reliance upon the Information. The recipient of the Information should take such steps as the recipient may
deem necessary to verify the Information prior to placing any reliance upon the Information. The Information may change and any property described in the Information may be withdrawn from the market at any time without notice or obligation to the recipient from CBRE. CBRE and the CBRE logo are the service marks of CBRE Limited and/or its affiliated or related
companies in other countries. All other marks displayed on this document are the property of their respective owners. All Rights Reserved.
THE VOICE OF THE FEDERATION OF RENTAL-HOUSING PROVIDERS OF ONTARIO 19» CFAA [REPORT]
RECOMMENDATIONS
FOR A BETTER
FUTURE
National Housing Strategy may yield good results for Ontario rental providers
BY JOHN DICKIE, CFAA PRESIDENT
T
he Liberal Government is committed areas, such as Toronto and Ottawa. It would to seek to prevent homelessness, and to
to bringing in a National Housing also use an affordability target of 30% for support people who become homeless to
Strategy in Canada, through the families (which is standard), and 40% for be re-housed quickly.
consultation CMHC has conducted. single person households, which is a reform Thanks in part to the opposition by CFAA
On November 22, Minister Duclos, the Minister CFAA has been advocating for years. within the NHC, there is no pitch from the
responsible for housing, is to release a report NHC for subsidies for low-income people
on “What We Heard”. The strategy itself will INCREASING RENTAL HOUSING SUPPLY to buy houses. The NHC submission is
be announced in pieces in the 2017 federal Instead of merely promoting more available at nhc-cpl.ca.
Budget, and in later related strategies, such social housing construction, the NHC is
as the Poverty Reduction Strategy. As each recommending low-interest loans for repairs CFAA’S SUBMISSIONS TO THE
piece is announced, the related programs will to existing private rental housing, and for NATIONAL HOUSING STRATEGY
receive spending envelopes. new construction of affordable rental units, CFAA supported the NHC proposals and
A number of social housing providers whether by the private or for-profit sector. also made additional or alternate proposals
came together to create the National The NHC also recommends an equity fund for the National Housing Strategy. CFAA’s
Housing Collaborative (NHC) to provide to enable the private sector to achieve submission is available at cfaa-fcapi.org.
input into the National Housing Strategy. market rates of return while providing some We will make further submissions as the
CFAA and the Canadian Home Builders’ affordable rental units. government works out program details in
Association (CHBA) joined the NHC, but That development funding may be an the directions it chooses to pursue.
were concerned about being swamped by excellent tool for the market because it is Overall, CFAA is very pleased with the
the number of social housing providers who adapted to the provision of some low rent submission which has been made by the
were participating in the NHC sessions. In units within large development projects. National Housing Collaborative, and the
fact, the NHC recommendations turned out More and more such inclusion will be positive response we have received from
to be better than we had hoped. demanded by municipalities through government about CFAA’s own proposals.
inclusionary zoning, and having a funding We are also more optimistic than we have
IMPROVING AFFORDABILITY THROUGH source will make the required inclusion less ever been about the result of the National
DIRECT FINANCIAL SUPPORT costly for rental developers, which is good Housing Strategy consultation.
CFAA was delighted to endorse the NHC for them and for low-income tenants. As rental housing providers in Ontario, you
recommendation that the governments should feel free to let your MP or MPP know
establish a Canada-wide portable housing OTHER ISSUES you support a portable housing benefit in a
benefit with rent maximums that vary by The NHC proposal is for modest funding to National Housing Strategy for Canada.
city, and funding to the tune of $1.2B per support social housing transformation ($40M
year (after a phase-in period.) That portable over five years), and for continued support FRPO is a member of the Canadian Federation
housing benefit program would be open to for rent-geared-to-income (RGI) subsidies of Apartment Associations, the sole national
renters of most age groups and provide a and capital repairs in social housing. organization representing the interests of
Canada’s $480 billion rental housing industry,
significant benefit, especially in high-rent The NHC proposes increased funding which houses more than nine million Canadians.
20 FAIR EXCHANGE | NOVEMBER 2016FEATURE
EMBRACING
INSTAGRAM
How to engage residents using visual content
BY KERIE KERSTATTER
I
t’s crucial for property management professionals to find participation. Establish a timeline. Keep in mind that when participants
innovative ways to connect with prospects and generate share pictures of your property on Instagram, those photos also
business, and social media is a powerful tool to help. When appear on the newsfeed of their followers. A well-planned Instagram
comparing the major social media platforms, there are a contest has great potential to generate awareness of your property
few key differentiators. Facebook is more visual, personal, and to relevant audiences. The Instagram platform presents several
explanatory—ideal for establishing your property as a helpful opportunities for marketing your multifamily property, you’ve just got
resource and engaging with residents. Twitter tends to be more to think visually!
succinct and efficient, allowing properties to pass along news and
make connections within a larger community of businesses. Kerie Kerstetter is the Director of Content Strategy for Canonball, a digital
Alas, we arrive at Instagram, a social network that’s widely popular marketing agency in Dallas that specializes in both multifamily and mixed-
among the millennial demographic (not to mention the upcoming use development.
Generation Z). Instagram mimics Facebook from the standpoint Originally published in Property Management Insider
that our focus shifts back to resident engagement. It has a single
function (picture-sharing), which makes it highly visual and a great
platform for conveying the personality of your resident community.
INSTAGRAM - THE BASICS
With Instagram, users have several formatting options for editing
pictures. Colour treatments, called “filters” can be applied to photos
to make them more artistic and visually interesting. Again, users
can be individuals or organizations. Similar to Facebook, users can
favourite or comment on pictures, as well as tag other users.
Driven by the freedom to format, as well as a quick-scrolling A LEADER IN FIRE
mobile platform, Instagram is among the most interactive social
networks. For multifamily properties, it’s an excellent tool for
PROTECTION AND SECURITY
branding and resident engagement.
• 24 hour Emergency Service • Kitchen Hood Systems
• Complete Inspection & Installation/Inspection
USES FOR INSTAGRAM
Verification • Emergency Lighting
Sharing visual updates Installation/Service
• Installation of all Manufactures
Think visually. When it comes to your everyday resident Fire Alarms • Intercom & Door Entry Systems
communications, consider how can you create visual interest. Are • U.L.C listed Fire Alarm • Card Access Control Systems
you opening the pool this weekend? Post an inviting picture! Are Monitoring • Closed Circuit Television
you prepping for a resident event? Show them! Are there cupcakes • Full in house Sprinkler Systems (CCTV)
Department • Magnetic Lock System
in the lobby, or amenities your residents aren’t taking advantage of?
• Extinguishers & Fire Hoses • Fire Safety Plans
Make sure you’re sharing the imagery. Before you start, however,
• Garage Co Systems
you need to ask yourself what tone or personality you want to
convey, and which property features you want to highlight.
Engaging with new and existing residents
Seeing as millennials are already on Instagram, engaging with them
there is easy. Inviting your residents to participate in an Instagram 14-3650 Langstaff Road, Suite 380 | Woodbridge, ON L4L 9A8
contest is perhaps the simplest way to do so. Create a call-to-action Phone: 905-532-0014 | Fax: 905-532-0016
for your residents to submit pictures: “Share your poolside pictures www.afps.ca | afpsservice@afps.ca
this month for a chance to win a gift card!” Offer an incentive for
THE VOICE OF THE FEDERATION OF RENTAL-HOUSING PROVIDERS OF ONTARIO 21FEATURE
INDUSTRY
TREND-SPOTTING
Housing tour highlights from Dallas, Texas
BY SCOTT ANDISON
O
n October 5th & 6th, FRPO’s excellent rental properties hosted by amenity space design and programming,
fifth annual Housing Tour Olympus Property, Gables Residential, use of the latest technology, and various
headed down to Dallas, Texas Alpha Barnes Real Estate Services, and approaches in leasing activities and
to learn about the latest trends Windsor Communities. We extend a big promotion efforts. At each location,
and experiences in the Dallas rental thank you to the management and staff of attendees had the unique opportunity
housing market. these companies who could not have been to talk to building staff and management
Thanks to the tremendous assistance of better hosts to our group. executives about everything from leasing
the Greater Dallas Apartment Association, On the tour, delegates had the practices to capital construction cost and
we had the opportunity to visit four opportunity to see the latest in finishings, planning approval issues. Members who
22 FAIR EXCHANGE | NOVEMBER 2016You can also read
