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SEPTEMBER / OCTOBER <strong>2009</strong><br />

President’s Perspective: Industry Under Siege


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Rogers Communications Inc., used under license or of Rogers Cable. © <strong>2009</strong> Rogers Cable Communications Inc. 27-20


Contents<br />

SEPTEMBER / OCTOBER <strong>2009</strong><br />

<strong>FRPO</strong> OPA RENTAL<br />

HOUSING ENERGY<br />

CONSERVATION PILOT<br />

PROJECT<br />

By Mike Chopowick<br />

9<br />

PROPERTY TAX REDUCTIONS<br />

MAY MEAN RENT<br />

REDUCTIONS!<br />

What Can You Do About It<br />

By Joe Hoffer and Paul Cappa<br />

12<br />

CFAA RENTAL HOUSING<br />

COMPENSATION SURVEY<br />

15<br />

LIBERAL MPP’S RENT-CAP<br />

PROPOSAL WOULD HURT<br />

TENANTS<br />

28<br />

BONNIE HOY AND<br />

ASSOCIATES<br />

Celebrate 25 Years<br />

31<br />

Features<br />

THE MESSAGE IS ALWAYS<br />

YOUR BUSINESS<br />

By David Eisenstadt<br />

33<br />

CAPREIT APPOINTS NEW<br />

C.F.O.<br />

Company Commends Yazdi<br />

Bharucha for His Years of Service<br />

36<br />

KEVIN T. O’LEARY<br />

<strong>2009</strong> Awards Gala<br />

Key <strong>No</strong>te Speaker<br />

38<br />

Bonnie Hoy pg.<br />

31<br />

Cover:<br />

Jack Beaton<br />

and Marshall<br />

Bleiweis in<br />

front of<br />

Sterling<br />

Karamar's<br />

<strong>No</strong>rth York<br />

headquarters.<br />

Energy Conservation<br />

pg.<br />

9<br />

Departments<br />

PRESIDENT’S PERSPECTIVE<br />

Rental Industry Under Siege<br />

By Vince Brescia, President<br />

6<br />

CFAA REPORT<br />

Sales Tax Harmonization<br />

By John Dickie<br />

13<br />

<strong>FRPO</strong> MEMBER PROFILE<br />

Sterling Karamar Property<br />

Management<br />

16<br />

READ THE FINE PRINT<br />

By Harry Fine<br />

This Landlord and Tenant War<br />

was Inevitable<br />

22<br />

<strong>FRPO</strong> BULLETIN WRAP-UP<br />

Fire Marhsall's Orders<br />

Accessibility Standards<br />

Human Rights Policies<br />

40<br />

UPCOMING EVENTS<br />

42<br />

Fine Print<br />

pg.<br />

22<br />

Tax Reductions<br />

pg.<br />

12


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highest recommendation.<br />

The same applies to your<br />

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We’re proud of our <strong>FRPO</strong> membership.<br />

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with ista delivers professional and timely billing services.<br />

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and utilities. We handle installation, customer service, residential<br />

communication, billing and collections, as well as data profiling.<br />

All this from a company that values personal service above all.<br />

Other <strong>FRPO</strong> members trust us to be their smart sub-metering<br />

provider. We trust you’ll allow us to be yours.<br />

905-856-4001<br />

www.stratacon.ca<br />

Licensed by the OEB # EB-2007-0948


President’s Perspective<br />

Rental Industry Under Siege<br />

By Vince Brescia, President<br />

Ontario’s rental housing industry is under siege by government<br />

actions. At the moment, the industry is facing an onslaught of new<br />

regulatory actions by provincial and municipal government that has<br />

people’s heads spinning. This is not the first time that this has happened<br />

to our industry.<br />

Consider the following list of actions by government:<br />

• The province brings in the HST, and shows no interest (as of the writing of<br />

this column) in the unique negative impact on landlords who get stuck<br />

with a huge cost increase that cannot be passed on to customers<br />

Vince Brescia, <strong>FRPO</strong> President<br />

• The province, under a new minister, moves to retroactively declare all submetering<br />

activity since <strong>No</strong>vember 2005 illegal, after the previous minister<br />

praised the activity, and the industry must begin unwinding all those positive<br />

conservation efforts<br />

• Several municipalities are now sending out rent reduction notices to landlords<br />

and tenants, when in fact the landlord’s overall municipal taxes (basic<br />

tax, water and new levies) is increasing<br />

• Local fire inspectors are issuing orders requiring a new fire code retrofit for<br />

audibility which will be costly<br />

Part of the problem stems from the fact that the government often does not care<br />

about negative impacts on landlords. This is more the case with the HST harmonization.<br />

The government recognizes that our industry is in a unique situation in that we<br />

are in a small category of “GST exempt” services, and we are subject to rent controls.<br />

Fair Exchange • <strong>Sep</strong>tember / <strong>Oct</strong>ober <strong>2009</strong><br />

The problem is that rectifying this situation would require one of two solutions.<br />

The first solution is to compensate the industry for the negative impact, which<br />

could be done through input tax credits or any other form of financial assistance.<br />

The problem from the government’s perspective is that this requires funding.<br />

And the political math comes down to the following: “do I care enough about<br />

negative impacts on landlords to use the government’s scarce financial resources<br />

to fix this” Add some deficit pressure to this in the current economy, and the<br />

answer so far is “<strong>No</strong>”.<br />

6


The second solution would require the government to fix the rent control guideline<br />

to allow the industry to pass on this cost. This would require the government<br />

to admit that the HST will increase rents, increase the guideline, and draw attention<br />

to this fact. Politically, they are not interested in doing that. So the bottom<br />

line is that, as usual, political math means that there will likely be no fix for our<br />

industry on this issue.<br />

the voice of the Federation of<br />

Rental-housing Providers<br />

of Ontario<br />

A PUBLICATION OF:<br />

Another part of the problem is that center and left leaning political parties feel it<br />

is necessary to attack landlords for political purposes. The attacks are designed to<br />

show that they are “pro-tenant”. And they are also designed to appease tenant<br />

activists, all of whom are more socialists that tenant activists 1 . The basic political<br />

model is that they want to foster class warfare, and pick the politically advantageous<br />

side in the war.<br />

This is more what is happening in the case of submetering. The tenant activists<br />

feel they must attack submetering, because it is something the industry is in<br />

favour of. Their default position is fighting us: if we are for something, they have<br />

to fight against us. And the government at the moment, lead by a Minister who<br />

has a high proportion of tenants in his riding, and who views the world very<br />

politically, is simply taking his cues from the tenant activists. The result is tenant<br />

activists are thrilled beyond their wildest dreams that the government has<br />

responded by doing more than they ever hoped for. Ironically, the average tenant<br />

is not even aware any of this is happening.<br />

This has been an ongoing problem with the political calculus of politicians. They<br />

constantly overestimate the importance of landlord-tenant regulation as a source<br />

of electoral success. In the end, none of this will matter much to the average<br />

tenants, so there will be no political gain, and unfortunately a lot of pain for landlords<br />

and submetering companies who were simply moving in the direction the<br />

government said it was going, and for which they were previously being praised<br />

by the government. F<br />

1 When I say that tenant activists are more socialists than tenant activists, this is based on years of observing their<br />

actions. For example, they show little interest and spend little effort trying to get unfair property taxes reduced.<br />

But they love to foment class warfare, whereby they make landlords responsible for poverty rather than society as<br />

a whole. They traditionally have supported social housing development rather than housing allowances, even<br />

thought the latter would help many more tenants, and prevent many more evictions resulting from people not<br />

being able to pay the rent – a purely ideological position, not a pro-tenant position. Overall, their focus in on the<br />

personal and political benefit that comes from attacking landlords and promoting class warfare rather than the<br />

best policies to help tenants in the long-run.<br />

EDITOR:<br />

Mike Chopowick • <strong>FRPO</strong><br />

e-mail: mchopowick@frpo.org<br />

toll free: 1-877-688-1960<br />

phone: 416-385-1100 x 21<br />

fax: 416-385-7112<br />

www.frpo.org<br />

20 Upjohn Rd., Suite 105<br />

Toronto, Ontario M3B 2V9<br />

ADVERTISING & SALES:<br />

Christine Tonus • Mediapeach<br />

email: christine@mediapeach.com<br />

phone: 905-952-2224 x32<br />

fax: 905-952-0826<br />

www.mediapeach.com/fe<br />

171 Main Street South, Suite 5,<br />

Newmarket, Ontario L3Y 3Y9<br />

SUBSCRIPTIONS &<br />

ADDRESS CHANGE:<br />

Lynzi Michal • <strong>FRPO</strong><br />

e-mail: lmichal@@frpo.org<br />

toll free: 1-877-688-1960<br />

phone: 416-385-1100 x 22<br />

fax: 416-385-7112<br />

DESIGNED AND PRINTED BY:<br />

<strong>FRPO</strong> IS A MEMBER OF:<br />

Opinions expressed in articles are those of the authors and<br />

do not necessarily reflect the views and opinions of the<br />

<strong>FRPO</strong> Board or Management. <strong>FRPO</strong> and Mediapeach<br />

accepts no liability for information contained herein. All rights<br />

reserved. Contents may not be reproduced without written<br />

permission from the publisher.


The town is talking...<br />

Congratulations to our members, whose buildings,<br />

have been awarded CRB Certification!<br />

1 877-688-1960 WWW.CRBPROGRAM.ORG


By Mike Chopowick<br />

Last year <strong>FRPO</strong> began a pilot project to measure energy use and test conservation<br />

methods in multi unit rental buildings. Funded and supported<br />

by the OPA and other partners, the project aims to provide detailed<br />

information on electricity consumption in apartment buildings and help<br />

provide solutions for improving conservation in the private rental housing sector.<br />

The first component of the project was the measurement and benchmarking of<br />

energy consumption in the pilot buildings. This was a critical phase of the project<br />

since, for Ontario, very little reliable data existed on the actual energy usage levels<br />

in rental buildings.<br />

continued...<br />

The Voice of the Federation of Rental-housing Providers of Ontario<br />

9


Fair Exchange • <strong>Sep</strong>tember / <strong>Oct</strong>ober <strong>2009</strong><br />

The preliminary results were remarkable<br />

and at this point raise more questions<br />

than answers about energy usage<br />

in multi-unit buildings. A summary of<br />

the data is listed below, and ranks the<br />

12 pilot buildings based on energy<br />

usage intensity per unit area (square<br />

feet). Energy consumption is expressed<br />

as ekWh/ft 2 , a unit of measurement<br />

that converts electrical and thermal<br />

energy consumption into equivalent<br />

kilowatt hours and divides the total by<br />

the square footage of the building.<br />

The 12 buildings represent a diverse<br />

range of rental complexes based on<br />

location, age, number of housing units<br />

and average monthly rent. Energy usage<br />

was measured based on 36 months of<br />

utility data collected from 2005 to 2008.<br />

Some key findings include:<br />

• The building with the highest<br />

energy usage consumed double<br />

the ekWh/ft 2 as the building with<br />

the lowest energy usage.<br />

• The building with the lowest<br />

monthly rent had the lowest<br />

ekWh/ft 2 , while the building with<br />

the highest monthly rent has the<br />

highest ekWh/ft 2 .<br />

• Building age and size has<br />

very little apparent effect on<br />

energy consumption<br />

• Two buildings located in Ottawa<br />

(average high 10.9ºC; average low<br />

1.1 ºC) had some of the lowest<br />

levels of energy consumption,<br />

compared to buildings with the<br />

highest levels of energy consumption<br />

in Toronto(average high<br />

12.7ºC; average low 5.6 ºC).<br />

These preliminary results illustrate the<br />

important effect of tenant behaviour on a<br />

building’s energy usage levels. Since previous<br />

studies prepared for the OPA show<br />

<strong>FRPO</strong>-RONA tenant energy survey.<br />

that tenant behaviour is responsible for<br />

up to 80% of electricity consumption1,<br />

the impact of the usage of appliances,<br />

electronics, and lights by tenants are likely<br />

a significant factor behind variations in<br />

energy usage in apartment buildings.<br />

Next Steps<br />

As part of the <strong>FRPO</strong>-OPA pilot<br />

project, tenants in the pilot buildings<br />

will be surveyed on their usage<br />

of electricity and their patterns for<br />

using lights, appliances, laundry<br />

facilities as well as any other devices<br />

within their units. RONA helped by<br />

providing an energy-efficiency kit<br />

incentive for tenants who respond<br />

to the survey. The resulting responses<br />

will help us have a better understanding<br />

of ways to improve energy<br />

conservation in rental housing.<br />

Landlords and property managers<br />

have a big role to play in helping their<br />

tenants improve energy conservation<br />

in their buildings. In addition to<br />

physical measures to improve a building’s<br />

energy efficiency, which will also<br />

be tested in the <strong>FRPO</strong> OPA Pilot<br />

Project, providing education and<br />

awareness to tenants is equally if not<br />

more important.<br />

<strong>FRPO</strong> OPA Rental Housing Conservation Pilot Project<br />

Benchmarking Report<br />

Building # of Year Average Energy<br />

Rental Built Monthly Consumption<br />

Units Rent (ekWh/ft 2 )<br />

(1) Ottawa 83 1973 $835 19.9<br />

(2) Mississauga 87 1970 $997 24.4<br />

(3) Ottawa 168 1973 $847 24.9<br />

(4) Burlington 119 1971 $1112 25.1<br />

(5) Brampton 287 1983 $1050 29.1<br />

(6) Brampton 271 1984 $1085 29.2<br />

BENCHMARK MEDIAN 29.6<br />

(7) Toronto 58 1969 $950 30.1<br />

(8) Brampton 270 1983 $1050 30.2<br />

(9) Brampton 287 1984 $1090 30.6<br />

(10) Toronto 180 1965 $910 30.7<br />

(11) Toronto 58 1969 $950 31.3<br />

(12) Toronto 139 1965 $1200 39.1<br />

<strong>No</strong>te: All buildings gas heated, bulk-metered.<br />

10


Some energy saving tips that can be<br />

provided to tenants include:<br />

• Cooking with smaller appliances<br />

such as a microwave, toaster<br />

oven or electric frying pan,<br />

which all use less power than an<br />

oven range.<br />

• <strong>No</strong>t opening the oven door while<br />

cooking. A lot of energy is used<br />

to reheat it.<br />

• Setting the temperature dial of<br />

refrigerators to the mid-range.<br />

• Cleaning out a fridge to increase<br />

air circulation, making it more<br />

energy efficient.<br />

• Replacing incandescent<br />

light bulbs with CFL's that use<br />

75 percent less energy and last<br />

up to 10 times longer.<br />

• Using a broom or brush instead<br />

of a vacuum on hard floors.<br />

• Turning off air conditioners<br />

when not at home.<br />

• Closing blinds and shades to<br />

block heat during the summer<br />

• Shutting down televisions and<br />

computers when not in use. A<br />

continuously running<br />

computer and monitor uses<br />

between $75 - $120 worth of<br />

electricity each year.<br />

Over the next 12 months, several<br />

tenant outreach initiatives and conservation<br />

measures will be tested<br />

on the pilot buildings. The objective<br />

is to achieve an average 20%<br />

reduction in energy usage for the<br />

pilot buildings. Once the tested<br />

measures are evaluated for success,<br />

<strong>FRPO</strong> and the OPA’s Conservation<br />

Fund will work towards developing<br />

a multi-year template that all<br />

Ontario landlords can use to<br />

reduce energy consumption in<br />

their buildings. F<br />

<strong>FRPO</strong> Rental Housing Conservation Pilot - 2008 Energy<br />

Benchmark Report (weather <strong>No</strong>rmalized to Toronto)<br />

Buildings<br />

1<br />

2<br />

3<br />

4<br />

5<br />

6<br />

7<br />

8<br />

9<br />

10<br />

11<br />

12<br />

0 5 10 15 20 25<br />

Total Energy Consumption (ekWh/ft2)<br />

The experienced lawyers<br />

you can count on<br />

From acquisitions, dispositions and financing, re-development and<br />

intensification, to tax and regulatory matters – Aird & Berlis LLP is<br />

actively engaged in all aspects of the rental housing industry.<br />

We have extensive expertise in the range of multifaceted legal issues that<br />

affect you. Rely on A&B to provide seamless, timely and cost-effective<br />

practical solutions to any multi-residential property issue.<br />

For more information, please contact:<br />

Robert Doumani<br />

T 416.865.3060<br />

E rdoumani@airdberlis.com<br />

Partnership. Results. Success. ®<br />

Brookfield Place, 181 Bay Street, Suite 1800, Toronto, ON M5J 2T9<br />

T 416.863.1500 F 416.863.1515 W www.airdberlis.com<br />

Benchmark Median<br />

29.6 ekWh/ft2<br />

30 35 40<br />

The Voice of the Federation of Rental-housing Providers of Ontario<br />

11


Property Tax Reductions<br />

May Mean Rent Reductions!<br />

What Can You Do About It<br />

By Joe Hoffer and Paul Cappa, Cohen Highley LLP<br />

If your property assessments and/or your local tax rates<br />

decreased this year or if you converted your multi-residential<br />

property to condo status last year, your property<br />

tax reduction may trigger a rent reduction under the RTA<br />

effective December 31, <strong>2009</strong>.<br />

Municipalities will issue Rent Reduction <strong>No</strong>tices (RRN’s) to<br />

Tenants this fall if their rent is reduced based on the<br />

Landlord’s property tax savings. Landlords should<br />

compare the tax figures on any RRN’s with their<br />

actual tax bills to ensure the local municipality has<br />

accounted for all of the taxes and municipal levies charged<br />

to the property.<br />

If the municipality charges separate levies for sewer, water,<br />

garbage or the Waste Levy, an application to the Landlord and<br />

Tenant Board (LTB) to reduce or eliminate the rent reduction<br />

may be justified. In Toronto, the Waste Levy is ignored in calculating<br />

property tax reductions and issuing RRN’s, but it is<br />

not ignored by the LTB in calculating whether the rent<br />

increase should varied or eliminated. The same applies to<br />

municipal sewer and water levies which, in London, are<br />

ignored in issuing rent reduction notices but which are taken<br />

into account by the LTB in varying the rent reductions.<br />

Fair Exchange • <strong>Sep</strong>tember / <strong>Oct</strong>ober <strong>2009</strong><br />

It is absurd that landlords face rent reductions when their<br />

actual municipal charges are increasing, but if landlords do<br />

not file the variation applications, the rent reductions will<br />

take effect December 31, <strong>2009</strong> and will permanently impair<br />

income stream. Variation applications to the LTB are subject<br />

to strict timing, filing and notification requirements.<br />

Landlords who receive RRN’s based on property tax decreases<br />

should contact their legal or Rent Control advisor for<br />

advice on how fix the problem. F<br />

For information and advice concerning <strong>No</strong>tices of Rent Reduction and<br />

Variation applications to the LTB, contact Joe Hoffer or Paul Cappa:<br />

hoffer@cohenhighley.com or cappa@cohenhighley.com.<br />

12


CFAA Report<br />

Sales Tax Harmonization<br />

By John Dickie, President, Canadian Federation of Apartment Associations (CFAA)<br />

In the Spring of this year, both Ontario and British<br />

Columbia announced their decisions to harmonize<br />

their sales taxes with the GST on July 1, 2010. Those<br />

decisions will result in higher landlord costs and<br />

higher rents for tenants in both those provinces.<br />

Some Canadians have already gone through the harmonization<br />

process. Shortly after the GST was introduced in 1990,<br />

Quebec adopted the GST structure for its sales tax (and now<br />

collects the sales tax for the federal government at the same<br />

time as it collects its own provincial sales tax). New Brunswick,<br />

<strong>No</strong>va Scotia and Newfoundland harmonized their sales taxes<br />

with the GST in 1997. The experience in Atlantic Canada and<br />

Quebec was that harmonization quickly raised rents by about<br />

1.5%. The effect on rents will be slower in Ontario because of<br />

rent control, but inevitably cost pressures will force rents up.<br />

The impact of harmonization is to extend the provincial<br />

sales tax (PST) to a variety of new input costs that previously<br />

were exempt. In the rental housing sector this includes<br />

such costs as gas heat, electricity, maintenance contracts,<br />

property management services, renovation contracts, and so<br />

on, which make up a large part of the operating costs of<br />

most rental housing providers.<br />

However, the PST was to some extent embedded in those<br />

costs because of being paid by the suppliers, and that PST<br />

also flowed through into what they charged to landlords.<br />

<strong>No</strong>w those suppliers will receive the benefit of the input tax<br />

credits on the provincial sales tax component. Effective July<br />

1, 2010, landlords should be able to negotiate somewhat<br />

lower prices for contracts in industries which pay a lot of<br />

PST, such as construction contracts.<br />

Despite that, costs will certainly go up in most or all sectors<br />

where the new tax adds the provincial tax component to the<br />

GST. <strong>FRPO</strong> is working to obtain relief for Ontario landlords,<br />

whether permanent or temporary. The BC government<br />

has already announced that it will rebate the<br />

provincial tax on electricity and on energy for home<br />

heating, both for homeowners and for owners of rental<br />

properties. Obtaining that relief in Ontario would be a great<br />

help for landlords and tenants here.<br />

CFAA is working with the apartment associations in both<br />

Ontario and BC to make sure useful information is<br />

exchanged immediately, and to ramp up the grass roots<br />

input by landlords in the lobbying process. As an industry<br />

we badly need to improve the<br />

extent to which we are<br />

heard by government.<br />

In both Ontario and<br />

BC, the apartment<br />

associations do<br />

effective government<br />

relations<br />

work, but the<br />

lack of political<br />

involvement by<br />

most landlords constrains<br />

our influence.<br />

Time will tell what will result<br />

from the sales tax<br />

harmonization and<br />

the efforts to gain<br />

appropriate mitigation.<br />

Regardless of<br />

that outcome, more<br />

work needs to be<br />

done to gain more political involvement<br />

by ordinary landlords of all sizes,<br />

so that governments realize that imposing<br />

costs on landlords has a negative<br />

impact on them. F<br />

<strong>FRPO</strong> is one of 17 members of the<br />

Canadian Federation of Apartment Associations,<br />

the sole national organization representing the<br />

interests of Canada’s $40 billion private rental<br />

housing industry, which provides homes more<br />

than seven million Canadians.<br />

13<br />

The Voice of the Federation of Rental-housing Providers of Ontario


Associate<br />

Members<br />

<strong>2009</strong><br />

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APPLIANCES<br />

Coinamatic<br />

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Altus Group<br />

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ASSESSMENT AGENCY<br />

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BUILDING ENVELOPE<br />

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FINANCES;<br />

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BMO Capital Markets<br />

Brookfield Financial<br />

Canadian Mortgage Capital Corporation<br />

CMHC<br />

First National Financial Corp.<br />

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MCAP Financial<br />

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Penmor Growth Capital<br />

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TD Securities<br />

FIRE SA<strong>FE</strong>TY SERVICES<br />

Firepoint Technologies Inc.<br />

INSURANCE<br />

Dan Lawrie Insurance Brokers Ltd.<br />

Marsh Canada<br />

LEASING PRO<strong>FE</strong>SSIONALS<br />

Bonnie Hoy and Associates<br />

DALA Group of Companies<br />

Renters News<br />

Sheryl Erenberg & Associates<br />

LEGAL SERVICES<br />

Aird & Berlis LLP<br />

Andrade Consulting Group Ltd.<br />

Blaney McMurtry LLP<br />

Cohen Highley LLP<br />

Debra Fine Barrister & Solicitor<br />

Dickie & Lyman Lawyers LLP<br />

Fuller Landau LLP<br />

Gardiner Roberts LLP<br />

Landlord Solutions<br />

Sandler, Gordon Barristers & Solicitors<br />

SPAR Property Consultants Ltd<br />

MARKET ANALYSIS & RESEARCH<br />

Altus Group<br />

Veritas Valuation Inc.<br />

PROPERTY MAINTENANCE/<br />

CONSTRUCTION & REPAIR<br />

Advantage Bathtubs Refinishing<br />

Byng Group of Companies<br />

Certified Clean Air<br />

C.G. Maintenance<br />

Cordeiro Roofing Ltd.<br />

Cosmos Electrical Company<br />

DAJ Painting<br />

Energex<br />

Enertec Contracting<br />

Gatemaster Inc.<br />

Giant Plumbing & Hardware Distributers<br />

Great <strong>No</strong>rthern Insulation<br />

HD Supply Canada Inc<br />

HSI Solutions<br />

ICI Canada Inc.<br />

KONE Inc. Elevators<br />

Magical Pest Control Inc.<br />

MJSI Inc<br />

Pascoal Painting & Decorating<br />

Precision Plus Floor Plans<br />

Rona<br />

Solid General Contractors<br />

Servicemaster Commercial<br />

PROPERTY MANAGEMENT SOFTWARE<br />

Yardi Systems Inc.<br />

PROPERTY TAX CONSULTANTS<br />

Dickie & Lyman Lawyers LLP<br />

SPAR Property Consultants Ltd<br />

REAL ESTATE<br />

CB Richard Ellis<br />

Primecorp Commercial Realty Inc.<br />

Satco Realty Inc.<br />

Skyview Realty Ltd.<br />

Stonecap Realty Partners Inc.<br />

RENT CONTROL CONSULTANTS<br />

Andrade Consulting Group Ltd.<br />

Cohen Highley LLP<br />

Dharsee Professional Corp<br />

Dickie & Lyman Lawyers LLP<br />

SPAR Property Consultants Ltd<br />

RENTAL HISTORY, TENANT<br />

AND CREDIT REPORTING<br />

Canadian Credit Protection Corp<br />

GateMaster Inc.<br />

Rent Check Credit Bureau<br />

Ultra Collection Services<br />

TENANT SERVICES<br />

Coinamatic<br />

Parkingstalls.ca<br />

Phelps Apartment Laundries Ltd.<br />

TRAINING AND EDUCATION<br />

York Communications/MMPI


CFAA<br />

RENTAL HOUSING COMPENSATION<br />

Survey<br />

In early <strong>Oct</strong>ober <strong>2009</strong>, the Canadian<br />

Federation of Apartment<br />

Associations (CFAA) released its<br />

professional survey of employee<br />

salaries and benefits in the rental<br />

housing industry for Greater Toronto<br />

and most other major cities across<br />

Ontario and Canada. Besides city by<br />

city reports, there is a National Report<br />

covering 14 of Canada’s largest cities.<br />

The survey reports should help<br />

human resources professionals, property<br />

managers and rental owners to<br />

manage compensation costs by providing<br />

evidence of the market salaries<br />

for building superintendents, maintenance<br />

technicians, cleaners, leasing<br />

agents, property managers and other<br />

rental housing employees. The reports<br />

show median and average salaries and<br />

total compensation. Where the data<br />

permits, the reports show the distribution<br />

by percentiles and a break out by<br />

building size.<br />

Also where the data permits (such as<br />

the GTA), the survey includes positions<br />

which are used in larger operations<br />

such as Property Administrator,<br />

Property Assistant Manager, Property<br />

Accountant, Regional Manager,<br />

Maintenance Manager, Legal<br />

Administrator/Paralegal, Marketing<br />

Manager, Security Guard and<br />

Doorman/Concierge.<br />

See the table for the survey prices for<br />

different Ontario centres.<br />

The Hamilton figures include<br />

Burlington. The rest of the 905 belt is<br />

reported in separate tables in both the<br />

GTA and the Waterloo Region reports.<br />

The London report includes separate<br />

tables on Southern Ontario apart<br />

from London. F<br />

The CFAA Compensation survey has<br />

been endorsed by <strong>FRPO</strong>, by other apartment<br />

associations and by Canada’s national<br />

landlords. For more information or to order the<br />

compensation survey, please go to CFAA’s<br />

website at cfaa-fcapi.org, or telephone<br />

Erin Wallace at 613-235-0101.<br />

CFAA compensation National Toronto & Ottawa Hamilton, London<br />

survey prices (14 cities) Mississauga and Waterloo<br />

(“GTA”)<br />

Region (each)<br />

Full report<br />

(compensation<br />

& benefit plans) $3000 $850 $650 $450<br />

Compensation data only $2400 $600 $450 $300<br />

<strong>No</strong>tes<br />

1. Lower prices are available to companies which provided data for the survey.<br />

2. “Compensation data only” includes bonuses and car and rent allowances;<br />

it excludes the benefit plan information.<br />

3. All prices subject to GST.<br />

The Voice of the Federation of Rental-housing Providers of Ontario<br />

15


Vince Brescia (<strong>FRPO</strong>);<br />

Ted Whitehead (<strong>FRPO</strong>);<br />

Anthony Romano<br />

(SKPM); Jack Beaton<br />

(SKPM); Marshall<br />

Bleiweis (SKPM); Marvin<br />

Sadowski (SKPM), and<br />

David Horwood (<strong>FRPO</strong>),<br />

at the CRB unveiling for<br />

Sterling Karamar's Gates<br />

of Bayview community.<br />

Fair Exchange • <strong>Sep</strong>tember / <strong>Oct</strong>ober <strong>2009</strong><br />

Sterling Karamar Property<br />

Management (SKPM) has<br />

always had a reputation of<br />

excellence within the property<br />

management industry. With over 25<br />

years experience in property development<br />

and management with responsibility<br />

for over five million square feet<br />

of residential, industrial, retail and<br />

office assets, it seems only natural that<br />

they be one of the first privatelyowned<br />

firms to initiate recognition<br />

under <strong>FRPO</strong>’s new Certified Rental<br />

Building Program (CRB).<br />

Marshall Bleiweis, President of SKPM<br />

set the standard for the organization. “It<br />

seemed only natural to me that Sterling<br />

Karamar Property Management move<br />

forward with certification. It was a ‘no<br />

brainer’ for a company with as strong<br />

an operations base and customer<br />

service orientation as SKPM. It’s true,<br />

some companies will find it a challenging<br />

process, but as an industry, we must<br />

all continue to raise the bar with respect<br />

to customer service and the way we are<br />

ultimately perceived by the general<br />

public. This program does just that!”<br />

Marvin Sadowski, Senior Vice<br />

President adds that “…it proved to be<br />

an absolutely terrific team building<br />

exercise. We weren’t sure how people<br />

would react, especially our residents<br />

but we were applauded at every turn.<br />

Residents came out in droves to celebrate<br />

every event at every site and<br />

many made it a point to praise the<br />

efforts of our team.”<br />

The CRB program is a win/win<br />

program for all and nobody knows it<br />

better then Jack Beaton, Vice President<br />

16


of Residential Operations and his dedicated<br />

residential team. Jack, who represents<br />

the driving force of the<br />

residential division stated, “What this<br />

program has done is show everybody<br />

that SKPM is passionate about good<br />

sound management.”<br />

SKPM have already been recognized as<br />

an organization able to fast track the<br />

program simply by virtue of their excellent<br />

systems and procedures. According<br />

to Barb McIntyre, SKPM Manager of<br />

Human Resources, “We did a full, systematic<br />

self-audit of our policies, procedures<br />

and practices and compared<br />

them to the 35 standards required by<br />

the CRB & made changes and enhancements<br />

where needed…it can only make<br />

us better. Our commitment to continuous<br />

improvement has allowed us to<br />

achieve Certification quickly.”<br />

David Medeiros, Maintenance Manager<br />

believes that “bringing every member of<br />

the SKPM team into the CRB process<br />

was essential to its success,” while Cedric<br />

Abreu, Maintenance Manager, maintains<br />

that “all staff had extensive training<br />

on the program, and now all the rights<br />

and responsibilities of residents and staff<br />

are transparent. Everyone has access to<br />

contact information and the process for<br />

making suggestions. I think all other<br />

property management companies<br />

should follow the CRB program.”<br />

Bonny Hoy who provides marketing<br />

consulting services for SKPM believes<br />

that CRB certified organizations will<br />

have a competitive advantage in the<br />

market place and residents will have a<br />

The Voice of the Federation of Rental-housing Providers of Ontario<br />

17


SKPM has evolved to become a full<br />

service property management<br />

company via acquisitions and third<br />

party property management contracts.<br />

Our business focus includes<br />

residential, commercial and condominium<br />

property management. We<br />

are continuously looking for solid<br />

business opportunities.<br />

<strong>FE</strong>: How many residential buildings<br />

or units does the company<br />

own or manage in Ontario today<br />

Sterling Karamar Property<br />

Management manages over 20 residential<br />

properties consisting of<br />

approximately 3,500 suits.<br />

<strong>FE</strong>: How many staff work for the<br />

company What does Sterling<br />

Karamar Property Management<br />

do to ensure staff have the tools<br />

and resources necessary to do<br />

their jobs<br />

There are approximately 100<br />

employees working at SKPM.<br />

It's all smiles as proud staff show off the<br />

Gates of Bayview's new (and hard<br />

earned) CRB status.<br />

recognizable trademark to facilitate<br />

finding a quality product.<br />

We are continually reviewing our<br />

jobs and processes to ensure we<br />

are doing things efficiently and<br />

effectively and this includes<br />

Fair Exchange • <strong>Sep</strong>tember / <strong>Oct</strong>ober <strong>2009</strong><br />

Sterling Karamar Property<br />

Management has made the commitment<br />

to do it’s best to bring greater<br />

awareness to the program. Every certified<br />

SKPM managed site has a<br />

Certified Building Program sign at<br />

street level. Given that their buildings<br />

are all on main arteries, it only helps to<br />

brand the program bringing added<br />

value benefits to sites and companies<br />

that achieve the designation, and to<br />

the <strong>FRPO</strong>-sponsored program overall.<br />

<strong>FE</strong> <strong>Magazine</strong> met with the President<br />

of Sterling Karamar, Marshall<br />

Bleiweis, to learn more about the<br />

company and its approach to providing<br />

quality rental housing.<br />

<strong>FE</strong>: Who founded Sterling<br />

Karamar Property Management<br />

Sterling Karamar Property<br />

Management is a joint venture<br />

between Marshall Bleiweis and Sterling<br />

Silver Development Corporation.<br />

<strong>FE</strong>: How has the company evolved<br />

and grown over the past twenty<br />

five years<br />

18


Jack Beaton, V.P. of Residential<br />

Operations, and Marshall Bleiweis,<br />

President of Sterling Karamar<br />

ensuring our staff have the tools necessary<br />

to do their jobs. In addition,<br />

employees are provided opportunities<br />

to gain knowledge and expertise<br />

through on-the-job training, external<br />

and internal educational and<br />

professional development programs.<br />

Employees have access to a number<br />

of communication vehicles through<br />

which they can provide feedback and<br />

request support.<br />

<strong>FE</strong>: What are some of your key<br />

challenges in today’s rental<br />

housing market <br />

Some of the key challenges facing<br />

us today are: government intervention<br />

such as recent rulings on sub<br />

metering; the present economic<br />

environment; increased competition<br />

i.e. competing against the<br />

single condo owner.<br />

<strong>FE</strong>: What is Sterling Karamar<br />

Property Management’s<br />

outlook for the rental housing<br />

market in Toronto<br />

and/or Ontario<br />

The rental market today is a<br />

moving target that is continually<br />

reacting to fluctuating overall<br />

market conditions. We are constantly<br />

monitoring and evaluating<br />

The Voice of the Federation of Rental-housing Providers of Ontario<br />

19


these changes to ensure we can<br />

respond quickly and appropriately.<br />

Rental Building Program is just<br />

another example of our commitment<br />

to provide the highest standard of<br />

service to our customers and we<br />

believe the return is excellent<br />

tenant relations, tenant satisfaction<br />

and retention.<br />

<strong>FE</strong>: What advice do you have<br />

for other property management<br />

companies who may<br />

be considering enrolling in<br />

the Certified Rental<br />

Building Program<br />

The entire industry should be on<br />

board with this program. It makes<br />

good business sense and strengthens<br />

the industry as a whole. It’s a “win”<br />

“win” proposition. F<br />

“...we strive to<br />

understand and<br />

respond to<br />

the needs of<br />

our customer.”<br />

<strong>FE</strong>: What does Sterling Karamar<br />

Property Management do to<br />

ensure high quality customer<br />

service and tenant retention<br />

Sterling Karamar staff at newly Certified 1200<br />

York Mills in <strong>No</strong>rth York.<br />

As past winner of the <strong>FRPO</strong>/MAC<br />

award of excellence in customer<br />

service, we strive to understand and<br />

respond to the needs of our customer.<br />

We keep the lines of communications<br />

open and we really listen to<br />

what our customers have to say.<br />

SKPM’s embracing of the Certified<br />

Fair Exchange • <strong>Sep</strong>tember / <strong>Oct</strong>ober <strong>2009</strong><br />

Rain doesn't dampen the spirits of<br />

tenants celebrating the Certification of<br />

Sterling Karamar's 730 Dovercourt.<br />

20


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Read the Fine Print<br />

By Harry Fine<br />

The irony is unbelievable. Governments are rewarded when<br />

the trains run on time, when access to services is timely, and<br />

when their actions promote social justice and equality.<br />

Conversely, governments are punished when they are so<br />

detached from the average consumer of government services that they<br />

fail to see what’s broken.<br />

But it’s not often that the government is the one doing the breaking.<br />

Everyone in our industry recognizes that there is a war going on,<br />

minor skirmishes between the isolated small players, those being<br />

individual landlords and tenants small and large. And then the airwar,<br />

fought by the major players who lobby governments and seek<br />

media attention. I’ve been consulting colleagues in my business,<br />

those who have been doing this type of work far longer than I, asking<br />

if they perceive that the dispute resolution process is getting better or<br />

worse. They are unanimous in their opinions that they’ve never seen<br />

it so bad.<br />

It’s the Government’s job to resolve landlord and tenant disputes with<br />

certainty and finality, through the Courts but more often through the<br />

Fair Exchange • <strong>Sep</strong>tember / <strong>Oct</strong>ober <strong>2009</strong><br />

22


administrative agency created by the Conservative government in<br />

June of 1998, once called the Ontario Rental Housing Tribunal,<br />

renamed in 2007 as the Landlord and Tenant Board.<br />

So how can government tolerate the current legislation and the<br />

application of same that is remarkable in its naïveté, both from a<br />

distance and upon close examination of its many provisions We<br />

currently have a regulatory regime where the legislation is so<br />

badly conceived and at times drafted that even the Board<br />

Members and the appellate courts can’t agree on or find a consistent<br />

approach to everyday issues such as:<br />

• What is the proper format for notices of entry into the<br />

rental unit with respect to duration, arrival time etc I’ve<br />

asked the Chair for an Interpretation Guideline to resolve<br />

the confusion. We shall see if we get some clarification.<br />

• What constitutes a properly drafted N4 notice when there<br />

are “old arrears” going back over long periods, perhaps<br />

having credit balances along the way<br />

continued...<br />

The Voice of the Federation of Rental-housing Providers of Ontario<br />

23


Fair Exchange • <strong>Sep</strong>tember / <strong>Oct</strong>ober <strong>2009</strong><br />

• Whether an N4 or other notice is<br />

fatally defective just because dates<br />

are reversed or a month is shown<br />

with the wrong number of days<br />

(<strong>No</strong>vember 31 st for instance).<br />

• What factors a landlord should consider<br />

after a tenant has moved out<br />

leaving some items behind before<br />

re-renting the unit, or filing an<br />

application to have the Board find<br />

that the unit has been abandoned<br />

• Whether a tenant who gives notice<br />

to terminate the tenancy orally has<br />

given proper notice, and whether<br />

the landlord should then be obliged<br />

to mitigate by attempting to rerent,<br />

despite the risks involved of<br />

having no written notice.<br />

• Whether a tenant is entitled to an<br />

opportunity to fix something<br />

they have damaged before being<br />

served with an N5 notice rather<br />

than have the landlord fix it to its<br />

standards and with its expertise.<br />

• Whether a single-shareholder<br />

corporate landlord with the<br />

human shareholder acting as the<br />

landlord can obtain his or her<br />

house back with a landlord’s own<br />

use application.<br />

• Whether a tenant who by way of<br />

a motion asks the Board to void<br />

an arrears order after a Sheriff<br />

filing, has to also have paid the<br />

new rent for the month in which<br />

the motion hearing takes place.<br />

• Whether supportive housing<br />

landlords funded through the<br />

Ministry of Health and Long-<br />

Term Care and not governed by<br />

the Social Housing Reform Act<br />

may evict a tenant who can no<br />

longer live independently and is<br />

at risk to themselves and others.<br />

• How should the Board handle<br />

utilities when the tenant is obligated<br />

under a tenancy agreement<br />

to pay them but doesn’t<br />

• How to avoid lease-breaking<br />

parties when the legislation<br />

allows a tenant with “remaining<br />

lease term” to simply act badly so<br />

that they are served with a termination<br />

notice, thereby ending<br />

their obligation to pay rent for<br />

the duration of the lease term<br />

• Whether on a no-fault application<br />

for demolition or landlord’s<br />

own use, the Board should consider<br />

the tenant’s circumstances<br />

prior to eviction, and if so, how<br />

to apply the findings.<br />

• How does one count the number<br />

of voiding days on an N5 notice,<br />

the most common of the conduct<br />

notices, and furthermore, how<br />

does one figure out what constitutes<br />

a breach during the voiding<br />

period, and finally why can’t a<br />

landlord serve a second N5 notice<br />

unless the first has been voided<br />

• Whether the tenant’s willful<br />

blindness should have a bearing<br />

on eviction resulting from<br />

serious illegal acts that were<br />

committed by others in the<br />

rental unit.<br />

• What constitutes persistent late<br />

payment of rent<br />

• What is the standard of proof<br />

required when the landlord’s allegations<br />

about a tenant relate to<br />

criminal activity or conduct that<br />

is morally blameworthy (F.H. v.<br />

McDougall, [2008] S.C.C.)<br />

• How do rentals in condominiums<br />

fit into the statutory regime when<br />

a dispute occurs Who is the landlord<br />

What if there is a conflict of<br />

laws How can the landlord be<br />

held responsible for the common<br />

areas and common elements over<br />

which it has no control<br />

• How does the Board handle rent<br />

increases when the parties agree<br />

to add a prescribed additional<br />

service or facility such as window<br />

air-conditioning, and what<br />

happens if the tenant adds them<br />

unilaterally without an agreement,<br />

and then refuses to pay<br />

• Electrical sub-metering and<br />

smart metering, need I say more.<br />

• How far back can a tenant go<br />

with claims about maintenance,<br />

harassment or illegal rent, and<br />

how far back can the Board order<br />

compensation for same<br />

• How should the Board deal with<br />

unpaid rent, or prospective rent,<br />

when ordering a rent application<br />

adjourned as a result of the<br />

tenant’s request or an action by<br />

the tenant, particularly now that<br />

return dates after an adjournment<br />

are becoming distant events<br />

• How should the Board deal<br />

with Board mediated agreements<br />

or consent orders when<br />

the tenant doesn’t fulfill its part<br />

of the agreement<br />

continued...<br />

24


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Fair Exchange • <strong>Sep</strong>tember / <strong>Oct</strong>ober <strong>2009</strong><br />

I’d rather bet on red or black at a casino<br />

than try to guess how any given<br />

Member might decide an issue<br />

described above on any given day.<br />

Resulting from all this confusion and<br />

inconsistency is the mess we find ourselves<br />

in today. Parties shaking their<br />

heads in wonderment as their matters<br />

are dismissed for reasons they can’t<br />

fathom, too many adjournments<br />

causing delay, too many reviews and<br />

appeals, too many highly contested<br />

applications with complex issues<br />

causing delay and depleting Board<br />

resources, and a shocking growth in<br />

tenant claims raised either by filing a<br />

paper application, or simply raised<br />

without notice at a rent hearing thanks<br />

to s.82.<br />

The current government’s addition<br />

of s.82 acts as an invitation to tenants<br />

who fear that they will be homeless<br />

and who can’t pay the rent. It is just<br />

too easy to raise an issue that’s trivial<br />

and blow it out of proportion, or to<br />

manufacture an issue willfully and<br />

compound the problem by refusing<br />

the landlord entry to repair it.<br />

Relying on the honesty and pure<br />

motives of human beings wrapped<br />

up in litigation is just not good<br />

public policy.<br />

But now add in the impending<br />

increase to the monetary jurisdiction<br />

at the Board from $10,000 to $25,000<br />

which will take place on January 1 st ,<br />

2010. Under the Residential Tenancies<br />

Act, the Board’s jurisdiction will<br />

increase by operation of law effective<br />

that same day. Into this brew, we<br />

throw in for good measure:<br />

• A couple of recent decisions at<br />

Divisional Court and the Court of<br />

Appeal regarding entry and rent<br />

increases that are remarkable;<br />

• Another Divisional Court decision<br />

that allows tenants to be<br />

compensated at the Board for<br />

special and general damages in<br />

tort or in contract;<br />

• Another very recent Divisional<br />

Court decision seemingly erasing<br />

limitation periods for tenant<br />

claims and;<br />

• A faltering economy with<br />

employment not recovering<br />

with an ending recession;<br />

And voilà we have the ideal recipe to<br />

create the perfect storm.<br />

There are a number of implications<br />

for the Ministry, and my insiders<br />

suggest that nothing is being done to<br />

prepare. As it stands, the hearing<br />

blocks are too full and the schedule<br />

too crowded to allow adjudicators<br />

time to properly hear complex<br />

matters. When a tenant is making a<br />

claim for $10,000, and soon $25,000,<br />

the landlord or its agent has an obligation<br />

to vigorously defend the<br />

claim and to hold the tenant to strict<br />

proof of same. The current system,<br />

almost unchanged from 1997,<br />

doesn’t permit this. Some Members<br />

baulk when you try to present and<br />

discuss case law or thoroughly<br />

examine a witness. It wouldn’t be<br />

right at the Small Claims Court, and<br />

it’s not right at the Landlord and<br />

Tenant Board. The Board needs to<br />

consider a number of fixes in order<br />

to prevent the system from falling<br />

further into disarray:<br />

1. Revise the disclosure rules to<br />

mirror those in the Small Claims<br />

Courts. Respondents, landlords<br />

or tenants, should have a right to<br />

be aware of the case against them<br />

before they arrive at a hearing.<br />

2. Add adjudicators and hearing<br />

locations if necessary, and only<br />

appoint lawyers as the issues have<br />

become too complex.<br />

3. Consider revising the Rules about<br />

adjournments, costs and payments<br />

into the Board.<br />

4. Consider bringing back default<br />

judgments that were eliminated<br />

under the Residential Tenancies<br />

Act, perhaps extending the<br />

dispute period to 10 days in order<br />

to free up time for the hearing of<br />

other applications.<br />

5. A legislative change to s.82, scrapping<br />

it and requiring tenants to<br />

file applications, serve and disclose<br />

prior to the hearing of the<br />

landlord’s application, or at very<br />

least a requirement for notice and<br />

disclosure prior to the hearing.<br />

6. Put out real stats for the<br />

Minister and the industry,<br />

showing the average time from<br />

the filing of different types of<br />

applications, to the date the<br />

order is finally issued. The<br />

current stat which reveals only<br />

the time from application to the<br />

first appearance, is meaningless,<br />

masks the problem and frankly<br />

is deceptive.<br />

7. We need some common-sense<br />

clarifications and amendments to<br />

the legislation NOW, to fill some<br />

of the gaps and resolve some of<br />

the existing confusion. F<br />

26


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The Voice of the Federation of Rental-housing Providers of Ontario<br />

27


Liberal MPP’s Rent-Cap Proposal<br />

Would Hurt Tenants<br />

The recent provincial by-election<br />

in the riding of St. Paul’s<br />

resulted in the election of<br />

Eric Hoskins as the new<br />

Member of Provincial Parliament<br />

(MPP). <strong>FRPO</strong> members should be<br />

interested to know that his very first<br />

question in the Legislature was on the<br />

topic of tenant protection, and his<br />

question was to the Minister of<br />

Municipal Affairs and Housing.<br />

HST will increase<br />

rental costs<br />

tax (PST) on July 1, 2010, these costs<br />

will all increase by 8%.<br />

The HST will increase rental housing<br />

costs in Ontario by an average 3.3%<br />

to 3.8%, or a new cost of $274 to $320<br />

per unit annually. New tenants and<br />

tenants who move will bear these<br />

higher costs immediately, as will<br />

tenants who live in buildings exempt<br />

from rent controls.<br />

HST Impact: Higher rent<br />

or reduced repairs<br />

impact of the 13% HST on rental<br />

housing providers and tenants.<br />

The harmful effect<br />

of rent controls<br />

Mr. Hoskins then goes on to convey<br />

his concern that “rents are going up”<br />

and “is a rent cap the best way to<br />

ensure affordable rents”. The<br />

Minister of Housing correctly<br />

answers that “Clearly a rent cap<br />

would have a negative impact on the<br />

supply of rental properties.”<br />

Fair Exchange • <strong>Sep</strong>tember / <strong>Oct</strong>ober <strong>2009</strong><br />

In Mr. Hoskins’ two part question,<br />

he first asks about the impact of<br />

HST on rent. The answer from the<br />

Hon. Jim Watson, the housing minister<br />

is technically correct. The HST<br />

will not directly apply to rent. This<br />

is no surprise, as sales tax is never<br />

applied to rent.<br />

What the Minister fails to explain is<br />

that the Goods and Services Tax<br />

(GST) is currently applied to many<br />

items that are necessary for operating<br />

and maintaining an apartment building.<br />

Heat, hydro, property management,<br />

maintenance and repair<br />

contracts, and even legal and accounting<br />

costs, are currently subject to only<br />

the 5% GST. When the 5% GST is harmonized<br />

with the 8% provincial sales<br />

Other tenants will see HST-related<br />

rent increases in future years when<br />

the inflationary effect of the tax<br />

increase is partially factored into<br />

the CPI-based rent control guideline.<br />

Landlords who cannot afford<br />

to increase rents due to competitive<br />

market conditions and high<br />

vacancy rates will have to cut back<br />

on expenditures such as maintenance<br />

and capital repairs in order to<br />

afford the 8% increase in HSTimpacted<br />

costs.<br />

The HST will have a harmful impact<br />

on the affordability and quality of<br />

rental housing in Ontario. <strong>FRPO</strong><br />

would be more interested to see Liberal<br />

MPPs advocating for their government<br />

to act quickly to eliminate the negative<br />

The harmful effect of rent controls on<br />

rental housing supply and choice is<br />

very well documented. It should also be<br />

noted that rents in Ontario, and in Mr.<br />

Hoskins hometown of Toronto, are not<br />

going up when adjusted for inflation.<br />

“Clearly a rent cap<br />

would have a negative<br />

impact on the supply of<br />

rental properties.”<br />

The Hon. Jim Watson,<br />

Minister of Municipal<br />

Affairs and Housing,<br />

<strong>Sep</strong>tember 30, <strong>2009</strong><br />

Real rents are dropping<br />

From <strong>Oct</strong>ober 2002 to 2008, inflation-adjusted<br />

average 2-bedroom<br />

28


Tenant protection<br />

ONTARIO HANSARD<br />

<strong>Sep</strong>tember 30, <strong>2009</strong><br />

rents in Ontario dropped from $883<br />

to $834. In Toronto, real rents<br />

dropped from $1047 to $963 over the<br />

same period. Further data shows that<br />

from April 2008 to April <strong>2009</strong>,<br />

average 2-bedroom rents in Toronto<br />

only increased 1.6%, less than the<br />

1.8% rent guideline. Also, Toronto<br />

dropped from having the 2nd highest<br />

national average 2-bedroom rent last<br />

year to 3rd place, behind Calgary and<br />

now Vancouver.<br />

Most importantly, rents across Ontario<br />

fail to keep pace with the increasing<br />

costs of supplying rental housing. The<br />

costs of property tax, utilities and<br />

mortgage interest, to name a few, consistently<br />

go up faster than Ontario’s<br />

allowable rent guideline.<br />

To ensure a healthy supply of rental<br />

housing and increased investment in<br />

repairs and maintenance, rent controls<br />

should be eased, not tightened.<br />

Since vacancy-decontrol was introduced<br />

over a decade ago, there is no<br />

evidence that rents are increasing<br />

faster than inflation. On occupied<br />

rental units, having a British<br />

Columbia-style rent guideline (C.P.I.<br />

plus 2%), would be a good start for<br />

Ontario’s government to encourage<br />

investment in rental housing supply<br />

and quality. F<br />

Mr. Eric Hoskins: My question is for the Minister of Municipal Affairs and<br />

Housing. Minister, in my riding of St. Paul’s I’ve had the opportunity to<br />

speak with hundreds of renters who are concerned about the cost of living.<br />

With rising gas prices and a challenging economic outlook, they want to<br />

know that they will be protected. According to the most recent Statistics<br />

Canada data, nearly half of households in the city of Toronto are renters,<br />

many of whom live and work in St. Paul’s. My constituents are working hard<br />

and playing by the rules. They want their government to be working hard<br />

for them.<br />

Minister, under the previous government, the Ontario Rental Housing<br />

Tribunal was known as an eviction machine that had no concern for tenants. I<br />

know this government passed the Residential Tenancies Act in 2006, but rents<br />

are still going up. Would the minister tell us how the Residential Tenancies Act<br />

has helped tenants In addition, will the new HST coming into effect next July<br />

apply to rents<br />

Hon. Jim Watson: It’s a real honour to receive the inaugural question from<br />

the honourable member. I congratulate him and welcome him to this<br />

Legislature. I know he’s going to have a long and very productive future in<br />

Ontario politics.<br />

The new Residential Tenancies Act offers fair and balanced protection between<br />

the rights of tenants and landlords. It’s been in effect for over two years and I’m<br />

pleased to report there is no backlog of cases. Every tenant facing an eviction<br />

now is afforded the benefit of a hearing, which is something new.<br />

Landlords can evict problem tenants with more ease and tenants in buildings<br />

with serious maintenance problems may apply for a freeze on rent<br />

increases. Also, municipalities, such as the city of Toronto, have the power<br />

to licence landlords.<br />

I also want to note that the HST will not apply to rent. Despite misinformation<br />

that we heard in the member’s by-election, the HST will not apply to rent. We’re<br />

proud of the (interrupted)<br />

continued...<br />

The Voice of the Federation of Rental-housing Providers of Ontario<br />

29


The Speaker (Hon. Steve Peters): Thank you.<br />

Supplementary<br />

Mr. Eric Hoskins: These changes will no doubt benefit<br />

renters in my riding, but the reality is the majority of<br />

tenants and landlords never have to go to the landlord and<br />

tenant board. Most tenants pay their rent and most landlords<br />

take care of their properties.<br />

My concern is that rent continues to go up. I’ve been<br />

talking with young families and students who live on tight<br />

budgets. They rely on predictable expenses from year to<br />

year so that they can maintain their standard of living.<br />

With the price of gas and home heating fuels on the rise,<br />

my constituents are paying more attention than ever to<br />

their bottom line. The NDP wants to cap rent for two years<br />

to ensure that rent remains affordable.<br />

I want to know what the Residential Tenancies Act does to<br />

ensure rent does not skyrocket. Is a rent cap the best way to<br />

ensure affordable rents<br />

Hon. Jim Watson: Clearly a rent cap would have a negative<br />

impact on the supply of rental properties. Individuals<br />

who want to build rental properties would be discouraged<br />

to do so.<br />

We’ve brought a much more balanced approach which so far<br />

has kept rent increases low and vacancy rates healthy. The<br />

annual rent increase is now tied to the consumer price index.<br />

It’s fair, it’s transparent and the 2010 guideline of 2.1% protects<br />

tenants from rent increases above the rate of inflation<br />

while allowing landlords to recover increasing costs.<br />

Let’s take a look at the record and go back in history. Under<br />

the NDP, when they were in office, 27% increase in rents;<br />

under the Conservatives, 23.9%, under the McGuinty<br />

Liberal government, 14.4%.<br />

We will continue to take a balanced, practical approach to<br />

landlord and tenant relations. I know we have a great new<br />

defender of tenants in the honourable member from St.<br />

Paul’s and we welcome him to this House. F<br />

Fair Exchange • <strong>Sep</strong>tember / <strong>Oct</strong>ober <strong>2009</strong><br />

30


Bonnie Hoy (1 st row, 4 th from<br />

left), celebrates her company's 25 th<br />

anniversary with current and past staff.<br />

On <strong>Sep</strong>tember 13, <strong>2009</strong>,<br />

Bonnie Hoy & Associates<br />

celebrated their 25 th<br />

anniversary. Sixty people<br />

joined the celebration, including 35<br />

people currently working for the<br />

company and 25 people that are now<br />

working full time within the industry<br />

but started with Bonnie Hoy &<br />

Associates. Sterling Karamar was kind<br />

enough allow use of their facilities at<br />

the Gates of Bayview for the event.<br />

Breno Horsth was the recipient<br />

of an education bursary for France.<br />

Breno Horsth was the recipient of an<br />

education bursary for France. Bonnie Hoy & Associates gave<br />

him $10,000 towards his expenses. Breno speaks five languages<br />

and has the distinction of<br />

being the most sought after university<br />

student leasing agent they have ever<br />

had. Breno will be going through a<br />

training program in France and will<br />

then move on to coordinate missions<br />

work in third world countries.<br />

”I was so thrilled that so many people<br />

chose to join us on a Sunday night”,<br />

said leasing and marketing consultant<br />

Bonnie Hoy. “What a terrific group of<br />

people - many came into the industry<br />

and developed careers for themselves<br />

and some like Breno took their chosen path of education<br />

and went into another direction”. F<br />

The Voice of the Federation of Rental-housing Providers of Ontario<br />

31


Aird & Berlis LLP<br />

Brookfield Place, 181 Bay St.<br />

Suite 1800, Box 754, Toronto, ON M5J 2T9<br />

Attention: Robert Doumani<br />

Tel: 416 863 1500 • Fax: 416 863 1515<br />

BMO Capital Markets Real Estate Inc.<br />

1 First Canadian Place, 5th Floor, P.O. Box 150<br />

Toronto, ON M5X 1H3<br />

Attention: Drew Koivu MBA<br />

Tel: 416 359 6781 • Fax: 416 359 4639<br />

Brookfield Financial<br />

Brookfield Place, Bay Wellington Tower<br />

P.O. Box 762, 181 Bay Street, Suite 260<br />

Toronto, ON M5J 2T3<br />

Atention: Colin Catherwood<br />

Tel: 416 956 5212 • Fax: 416 956 5201<br />

Carma Industries Inc.<br />

494 The Parkway, Peterborough, ON K9J 7L9<br />

Attention: Rick Williams<br />

Tel: 888 298 3336 • Fax: 705 743 3575<br />

CMHC Ontario Business Centre<br />

100 Sheppard Ave. E, Suite 300,<br />

Toronto, ON, M2N 6Z1<br />

Tel: 416 221 2642 • Fax: 416 218 3310<br />

Coinamatic Canada Inc.<br />

301 Matheson Boulevard West<br />

Mississauga, ON L5R 3G3<br />

Tel: 905 755 1946 • Toll Free: 1 800 361 2646<br />

Fax: 905 755 8885<br />

Cordeiro Roofing Ltd.<br />

343 Olivewood Rd. Toronto, ON M8Z 2Z6<br />

Tel: 416 234 9901 • Fax: 416 234 9581<br />

info@cordeiroroofing.com<br />

Enbridge Electric Connections<br />

PO Box 650, Scarborough, ON M1K 5E3<br />

Attention: Wendy Mortson<br />

Tel: 905 747 5589 • Fax: 905 881 1732<br />

Enbridge Gas Distribution<br />

P.O. Box 650, Scarborough, ON M1K 5E3<br />

Attention: Rachit Bhambri<br />

Tel: 416 753 4663 • Fax: 416 495 8350<br />

Energex Inc<br />

105-6091 Dyke Rd. Richmond, BC<br />

Attention: Rami Belson, President<br />

Tel: 604 448-1899<br />

First National Financial LP<br />

100 University Ave., <strong>No</strong>rth Tower, Suite 700,<br />

Toronto, ON M5J 1V6<br />

Attention: Mr. Peter Cook<br />

Tel: 416 593 1100 • Fax: 416 593 1900<br />

Fuller Landau LLP<br />

151 Bloor Street West, 12th Floor<br />

Toronto, ON M5S 1S4<br />

Attention: Brenda Hadju<br />

Tel: 416 645 6500 • Fax: 416 645 6501<br />

Giant Plumbing & Hardware<br />

Distributors Ltd.<br />

14 Bentley Ave., Nepean ON, K2E 6T8<br />

Attention: Andy Brule<br />

Tel: 613 723 3190 • Fax: 613 723 5733<br />

Madhouse Advertising Inc.<br />

176 John St. Toronto ON, M5T 1X5<br />

Attention: Tami Kenwell<br />

Tel: 416 591-7770 • Fax: 416 596-9897<br />

Great <strong>No</strong>rthern Insulation<br />

935 Keyes Drive, Woodstock, ON N4V 1C3<br />

Attention: Cody Seagrist<br />

Tel: 1 800 265 1914 • cseagrist@gni.ca<br />

hsi solutions<br />

35 Carl Hall Road, Unit 3<br />

Toronto, ON M3K 2B6<br />

Attention: Reaud Singh, Business<br />

Tel: 416 891 6119 • Fax 416 981 4510<br />

<strong>2009</strong> CORPORATE<br />

MEMBERS<br />

J.D. Power and Associates<br />

2225 Sheppard Avenue East<br />

Toronto, ON M2J 5C2<br />

Attention: David Hanson<br />

Tel: 416 499 3033 • Fax: 416 499 6626<br />

Marsh Canada Limited<br />

70 University Ave, Suite 800<br />

Toronto, ON M5J 2M4<br />

Attention: Neil Gilbertson<br />

Tel: 416 349 6656<br />

MCAP Financial Corporation<br />

200 King Street West, Suite 200<br />

Toronto, ON M5H 3T4<br />

Attention: Leo St.Germain, Vice President<br />

Tel: 416 847 3870 • Fax: 416 368 8822<br />

Midnorthern Appliance<br />

137 Chrislea Drive<br />

Vaughan, ON L4L 8N6<br />

Attention: Michael Gnat<br />

Tel: 905 850 5335 • Toll-free: 1 877 353 2850<br />

Fax: 905 850 5348<br />

MMPI Canada/<br />

York Communications<br />

10 Alcorn Ave, Suite 100<br />

Toronto, ON M4V 3A9<br />

Tel: 416-512-3809<br />

Murray & Company Limited<br />

40 University Avenue, Suite 502,<br />

Toronto, ON M5J 1S3<br />

Attention: Mr. Robert Lynch, Vice-President<br />

Tel: 416 598 0950 • Fax: 416 597 8415<br />

Reliance Home Comfort<br />

Penmor Mortgage<br />

Capital Corporation<br />

36 Toronto St., Suite 510 Toronto, ON M5C 2C5<br />

Attention: David Scott<br />

Tel: 416 646 1005 • Fax: 416 646 1009<br />

Reliance Home Comfort<br />

2 Lansing Sq, 12th Floor<br />

Toronto ON M2J 4P8<br />

Attention: Joanne Druce<br />

Tel: 416 499 7245 • Fax: 416 499 7095<br />

Rogers Cable Communications<br />

855 York Mills Road, Toronto, ON M3B 1Z1<br />

Attention: Greg Stokes<br />

Tel: 416 446 6500 • Fax: 416 446 7416<br />

Rona<br />

220 chemin du Tremblay<br />

Boucherville PQ J4B 8H7<br />

Tel: 514 599 5900<br />

Fair Exchange • <strong>Sep</strong>tember / <strong>Oct</strong>ober <strong>2009</strong><br />

SOLID General Contractors Inc.<br />

Attention: Carlos Munoz<br />

Tel: 905 475 0707<br />

info@solidgc.ca<br />

Commercial Mortgage Group<br />

TD Commercial Banking<br />

66 Wellington Street West 39th floor<br />

Toronto, ON M5K 1A2<br />

Attention: David Gale<br />

Tel: 416 944 6400 • Fax: 416 307 8423<br />

Sparkle Solutions<br />

2700 Steeles Avenue West, Unit 4<br />

Concord ON L4K 3C8<br />

Tel: 905 660 2282<br />

Toronto Star<br />

1 Yonge Street, 4th Floor Toronto<br />

ON M5E 1E6<br />

Attention: Grace Pastore<br />

Tel: 416 869 4248 • Fax: 416 865 3977<br />

GPastore@thestar.ca<br />

Jacques Whitford<br />

7271 Warden Avenue,<br />

Markham, ON L3R 5X5<br />

Attention: Chris Welch<br />

Tel: 905 474 7704 • Fax: 905 479 9326<br />

Wyse Meter Solutions Inc.<br />

31 Davisville Avenue<br />

Toronto, ON M4S 1G3<br />

Tel: 416 869 9900<br />

Stratacon<br />

641 Chrislea Road, Unit 8,<br />

Woodbridge, ON L4L 8A3<br />

Attention: Peter Mills<br />

Tel : 905 856 4001 • Fax: 905 856 1513<br />

Yardi Systems Inc.<br />

5925 Airport Road, Suite 510,<br />

Mississauga, ON L4V 1W1<br />

Attention: Mr. Peter Altobelli<br />

Tel: 905 671 0315 • Fax: 905 671 9424<br />

email: peter.altobelli@yardi.com<br />

32


T he Message<br />

is Always<br />

Your Business<br />

By David Eisenstadt, Founding Partner, The Communications Group Inc.<br />

Interviews with print, online, radio and TV<br />

reporters can be an uncomfortable experience<br />

for business leaders -- they interrupt hectic<br />

schedules and can result in coverage of events<br />

you may prefer were left in the background.<br />

Nevertheless, if you're a business leader you owe it<br />

to your shareholders, your employees, your customers<br />

and suppliers to enhance your organization's<br />

visibility in the marketplace.<br />

David Eisenstadt<br />

Remember that you are merely the subject of the<br />

interview. If you know what you are doing, you<br />

needn't become a journalist’s hit-and-run victim.<br />

Here are some recommendations to help you survive those tough interviews, whether<br />

live at a news conference, on the street, in a scrum or by phone:<br />

• Prepare for all major print, broadcast and online interviews. Don't assume your<br />

closeness to the situation means you've got all the answers. For example, it<br />

could matter very little to you to know how long your organization has been in<br />

its present location -- but it will seem obvious to a reader, listener or viewer that<br />

you should know.<br />

continued...<br />

The Voice of the Federation of Rental-housing Providers of Ontario<br />

33


• Vocalize your responses in advance. Knowing a subject thoroughly and crafting a written<br />

response in the clearest, simplest terms are helpful. But you won't really know how clearly<br />

you can explain something vocally until you do just that. Start with a sympathetic listener<br />

on your home turf.<br />

• Supply background material beforehand. It helps an interviewer to have explanatory information<br />

on details he or she may not have known enough about to ask. Your function should<br />

be to comment on issues and situations, not to conduct a seminar on what those issues are<br />

for the interviewer.<br />

• Maintain some control from the beginning. In a face-to-face interview, begin if there's time<br />

by asking the interviewer about his or her background. It will make the following conversation<br />

sound less like the interrogation of a hostile witness. You can't do this effectively in a<br />

phone interview.<br />

• If the interviewer is a novice, it helps to reinforce your credentials<br />

as the expert in this matter. Don't treat the novice reporter<br />

with disdain because it will come back to haunt you. If the<br />

interviewer is highly knowledgeable, you've been forewarned.<br />

• Don't be misled by the apparent simplicity of questions. If<br />

you are worth being interviewed, there is news value in<br />

quoting you directly.<br />

• Don't answer hypothetical questions. You might turn them<br />

around by explaining what your organization's policy has<br />

been in the past, but there's nothing to be gained by locking<br />

yourself into a position based on a hypothetical situation.<br />

• Don't presume to redirect the story line. You may well prefer<br />

news coverage of something unrelated to what the editor or<br />

reporter wants to write or broadcast about. The interviewer<br />

may listen politely, but if what you say is considered a nonstory,<br />

you've wasted time -- yours and the interviewer's.<br />

...if you're a business<br />

leader you owe it to<br />

your shareholders,<br />

your employees, your<br />

customers and<br />

suppliers to enhance<br />

your organization's<br />

visibility in the<br />

marketplace.<br />

• Never buffalo a reporter, even a novice. You'll only get away with it as long as the interview<br />

itself lasts. Eventually, your comments will cross the desk of a much more worldly editor or<br />

producer, who will recognize bafflegab for what it is. Story killed!<br />

Fair Exchange • <strong>Sep</strong>tember / <strong>Oct</strong>ober <strong>2009</strong><br />

A Final Thought:<br />

If you expect to be the subject of media attention on a regular basis, consider media training. Its<br />

personal development at its best and if you learn how to deal with the news media, you can deal<br />

with anyone. F<br />

David Eisenstadt, Fellow PRSA, Fellow CPRS, is Founding Partner with The Communications Group Inc.,<br />

a Toronto-based public relations consulting firm serving corporate clients across Canada… www. tcgpr.com<br />

34


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The Voice of the Federation of Rental-housing Providers of Ontario<br />

35


CAPREIT<br />

Appoints New<br />

C.F.O.<br />

Company Commends Yazdi Bharucha for His Years of Service<br />

On <strong>Sep</strong>tember 29, <strong>2009</strong>, <strong>FRPO</strong> member Canadian Apartment Properties Real<br />

Estate Investment Trust (CAPREIT) announced that Mr. Richard Smith had<br />

been appointed Chief Financial Officer effective <strong>Oct</strong>ober 13, <strong>2009</strong> on the retirement<br />

of Mr. Yazdi Bharucha.<br />

"Yazdi has made an immeasurable contribution to our growth and performance since we<br />

entered the public capital markets in May 1997," commented Mr. Thomas Schwartz, President<br />

and CEO. "As a key member of our senior management team, he was instrumental in helping<br />

take CAPREIT from a value of $100 million at the time of our IPO to almost $1 billion today.<br />

Fair Exchange • <strong>Sep</strong>tember / <strong>Oct</strong>ober <strong>2009</strong><br />

“He brings<br />

significant<br />

depth and<br />

experience<br />

to our senior<br />

management<br />

team...”<br />

Mr. Thomas<br />

Schwartz, President<br />

and CEO, CAPREIT<br />

During his tenure he secured more than $1 billion in financings to fund our growth, and<br />

was a key player in the successful and accretive acquisition of ResREIT. He has also put in<br />

place a strong financial management team and network of advisors that will stand us well<br />

as we move forward. His commitment and professionalism will be missed by everyone at<br />

CAPREIT, and we wish him every success in the future."<br />

"I am very proud of everything we have accomplished at CAPREIT, and thank my financial<br />

management team for their support and dedication over the last twelve years,'" Mr.<br />

Bharucha stated.<br />

Mr. Smith was formerly Executive Vice-President and Chief Financial Officer of MI<br />

Developments Inc., a publicly-traded real estate company focused on the ownership, leasing<br />

and management of a portfolio consisting of 105 income producing properties.<br />

Prior to joining MI Developments, he was Vice-President of Corporate Development at<br />

Magna International Inc., an Associate Director in the Mergers and Acquisitions group at<br />

Scotia Capital Inc., and a Senior Associate at Coopers and Lybrand (now<br />

PriceWaterhouseCoopers). He received his Juris Doctor and Master of Business<br />

Administration from the University of Toronto in 2001, and an Honours Bachelor of<br />

Commerce from the University of Ottawa in 1995. He is a Chartered Accountant, a U.S.<br />

Certified Public Accountant, and was called to the Bar in New York State.<br />

"We are very pleased and excited to have Richard join CAPREIT," Mr. Schwartz added. "He<br />

brings significant depth and experience to our senior management team, and we look forward<br />

to the contribution he will make as CAPREIT enters the next phase of its growth." F<br />

36


Kevin T. O’Leary<br />

<strong>2009</strong> Awards Gala Key <strong>No</strong>te Speaker<br />

He's opinionated, he's ruthless, he<br />

hungers for big deals and loves to<br />

take control yet he made his millions<br />

helping children learn how to read.<br />

company, O’Leary Funds. He raised hundreds of<br />

millions of dollars from investors who share his<br />

“get paid while you wait” yield oriented value<br />

investing philosophy.<br />

You have seen<br />

him on Dragons’<br />

Den and Shark<br />

Tank, now see<br />

him live at <strong>FRPO</strong>’s<br />

Awards Gala<br />

December 3,<br />

<strong>2009</strong>, at the<br />

Metro Toronto<br />

Convention<br />

Centre.<br />

Kevin's success story starts where most entrepreneurs<br />

begin: with a big idea and zero cash. From<br />

his basement, he launched SoftKey Software<br />

Products. As sales took off, Kevin moved to head<br />

quarters in Cambridge Massachusetts and went<br />

on an industry consolidating acquisition binge.<br />

From 1995 to 1999 he bought almost every one of<br />

his software competitors including, Mind scape,<br />

Broderbund and the Learning Company in the<br />

industry’s first vicious public hostile battle.<br />

Shareholders love his take no prisoners cost<br />

cutting style and fueled him with billions to do<br />

his deals. In 1999, Kevin sold his company to the<br />

Mattel Toy Company for a staggering 3.7 billion<br />

dollars, one of the largest deals ever done in the<br />

consumer software industry.<br />

To keep his money working hard, Kevin took<br />

control of his wealth from his lackluster money<br />

managers and founded his own mutual fund<br />

He shares his tips and tribulations with a national<br />

television audience and turns the Street upside<br />

down in the process. As a self-proclaimed<br />

“Eco-preneur” Kevin looks hardest for investments<br />

that make money – and are environmentally<br />

friendly. When he’s not squeezing the market<br />

from his office in West Palm Beach he travels the<br />

world looking for new opportunities to deploy his<br />

capital. He is a founding investor and director of<br />

Stream Global an international business out<br />

sourcing company. Kevin is on the investment<br />

committee of Boston's prestigious 200-year-old<br />

Hamilton Trust, and is the Chairman of O’Leary<br />

Funds. He also serves on the executive board of<br />

The Richard Ivey School of Business Kevin escapes<br />

on weekends with his family to his luxurious<br />

cottage that spreads over prime Canadian wilderness<br />

on the shore of an ancient glacial lake. Kevin<br />

was born in Montreal Canada on July 9 th 1954, he<br />

lives in West Palm Beach Florida. F<br />

Fair Exchange • <strong>Sep</strong>tember / <strong>Oct</strong>ober <strong>2009</strong><br />

Contract price<br />

guaranteed.<br />

Lowest price in the<br />

industry!<br />

38


Good with numbers. Great with people.<br />

We offer complete property management servtable budget results. As industry leaders in<br />

professional property management, we vouch for high resident satisfaction and low vacancy rates.<br />

80 apartment communities professionally managed byexecutive team<br />

30 languages spoken to better serve our diverse and growing client roster<br />

20 years setting the industryhmark for successful management<br />

To learn more about our Guaranteed Vacancy Reduction Program, contact:<br />

Anne Meinschenk, Director, New Business Development MetCap Living Management Inc.<br />

416.993.4305anne.meinschenk@metcap.comwww.metcap.com<br />

Discover more at www.goodwithnumbers.net


<strong>FRPO</strong> Bulletin Wrap-Up<br />

Fire Marshall’s Alarm System Campaign:<br />

<strong>FRPO</strong> to Challenge Orders<br />

<strong>FRPO</strong> would like to advise its members that there<br />

appears to be a campaign by the Fire Marshall to have<br />

local Fire Inspectors throughout Ontario require<br />

testing and upgrades of alarm systems. Orders are<br />

being issues which require owners to make alterations<br />

to the building, notwithstanding Section 22 of the Fire<br />

Prevention Act which states that no order shall require<br />

alterations to the building if it complied with the<br />

Building Code in place at the time it was constructed,<br />

with the exception of Fire Retrofit Code. These new<br />

orders are not part of the retrofit code. At the moment,<br />

the activity by the Fire Marshall appears to be concentrated<br />

in Southwestern Ontario in Chatham, Windsor,<br />

London and Woodstock.<br />

obstacles related to interior and exterior building spaces<br />

and applies to housing (eg: doors, entrances, hallways, elevators,<br />

kitchens bathrooms, garbage chute rooms and<br />

parking spaces).<br />

FPRO is has submitted recommendations on behalf of<br />

landlords to the government. One of our key positions is<br />

that a retrofit requirement for rental housing would be costprohibitive<br />

and impractical.<br />

All new construction and<br />

major renovation affected<br />

The proposed standard focuses on preventing barriers on a<br />

go-forward basis. Under this proposed standard, all new<br />

buildings and buildings undergoing major renovations would<br />

need to meet the proposed requirements if passed as law.<br />

We believe that it is unlikely that many pre-1997 constructed<br />

suites can meet this standard. Cost estimates for the<br />

engineering, testing and installation of alternative measures<br />

(mini-horns) may be greater than $1,000 per suite.<br />

Members should know that <strong>FRPO</strong> intends to challenge<br />

this direction. Orders of this type are currently on appeal<br />

to the Fire Safety Commission. If there is not a satisfactory<br />

outcome of these appeals, <strong>FRPO</strong> will be appealing the<br />

decision to the Divisional Court. There is a long standing<br />

principle worth defending that new building and fire standards<br />

cannot be applied retroactively to the existing stock<br />

of buildings.<br />

The government does not plan to require that all existing<br />

buildings be retrofitted to meet accessibility requirements<br />

in the final accessible built environment standard at this<br />

time. Future consultations by the government will consider<br />

retrofit issues.<br />

So far, <strong>FRPO</strong> has advocated on behalf of the rental industry<br />

by meeting with:<br />

• Policy staff from the Office of the Minister of<br />

Community and Social Services<br />

• The Assistant Deputy Minister of the Ministry of<br />

Community and Social Services<br />

Fair Exchange • <strong>Sep</strong>tember / <strong>Oct</strong>ober <strong>2009</strong><br />

For additional information, please contact<br />

Vince Brescia at 416.385.1100 x 20<br />

Ontario Government Proposes New<br />

Accessibility Standards<br />

Ontario is seeking input on its proposed built environment<br />

accessibility standard. This proposed accessibility<br />

standard introduces new measures to prevent disability<br />

• The Independent Reviewer of the Accessibility for<br />

Ontarians with Disabilties Act<br />

• The Accessible Built Environment Public<br />

Consultation Panel<br />

<strong>FRPO</strong> has also submitted written input directly to the<br />

Minister and the Chair of government’s Accessible Built<br />

Environment Standard Committee.<br />

40


What should landlords and<br />

property managers do<br />

The proposed standard is not yet law. For now, you should<br />

review the proposed accessibility standard (see below) and<br />

familiarize yourself with some of the requirements. As<br />

noted, the government says they do not plan to make the<br />

standards retroactive. If you are planning new projects or<br />

major renovations, you should consult with your contractors,<br />

architects and designers to ensure they are aware of the<br />

proposed standards.<br />

Key Points<br />

Human Rights Commission Releases<br />

Policies for Rental Housing<br />

The Human Rights Commission released new guidelines<br />

that review the rules, policies and procedures that help<br />

ensure the practices of private and public sector housing<br />

providers are non-discriminatory in nature.<br />

The Commission’s Policy on Human Rights and Rental<br />

Housing is a comprehensive look at how barriers to housing<br />

can be identified and eliminated. <strong>FRPO</strong> members can<br />

review the full report at: www.ohrc.on.ca/en/resources/<br />

Policies/housing<br />

Some key points <strong>FRPO</strong> is submitting include:<br />

• All existing rental housing buildings must remain exempt<br />

from the proposed standard’s retrofit requirement.<br />

• Requiring retrofit of existing housing would:<br />

• impose undue financial hardship on landlords<br />

• result in above guideline rent increase (AGI’s)<br />

applications with substantially increased rents<br />

for tenants<br />

• cause significant inconvenience for existing tenants<br />

• Landlords and property managers recognize the need<br />

for accessibility and already are responsible for accommodating<br />

disabled people under Ontario’s Human<br />

Rights Code<br />

• Deadlines for compliance for new construction (12<br />

months) and major renovations (12 to 36 months) are<br />

too short to be realistically implemented.<br />

• Requiring accessibility measures in every single new<br />

housing unit will increase the cost of housing, and<br />

have a disproportionate negative impact on lower<br />

income tenants.<br />

How you can learn more<br />

More information, including details of the proposed standard,<br />

can be found at www.mcss.gov.on.ca/mcss/english/<br />

pillars/accessibilityOntario/accesson/business/environment<br />

For more information, contact:<br />

Mike Chopowick, Manager of Policy, 416-385-1100 x21<br />

The Commission’s report does not change any existing laws<br />

or regulations related to human rights and discrimination.<br />

Its purpose is to provide tools, practical scenarios and information<br />

that can be applied to everyday situations, so that<br />

human rights problems can be eliminated quickly or prevented<br />

from happening in the first place. The report<br />

includes information to help landlords take proactive steps<br />

to ensure their policies are not having an adverse impact<br />

based on Code grounds.<br />

Under Ontario’s Human Rights Code, tenants and housing<br />

providers have certain rights and obligations. But the Code<br />

does not spell out what these protections and duties mean.<br />

The Commission’s new policy document gives practical<br />

advice on how people can exercise their rights and fulfill<br />

their obligations.<br />

The Commission also released a separate document for<br />

housing providers, titled, “Human Rights in Housing – An<br />

Overview for Landlords”. It can be obtained from the<br />

Ontario Human Rights Commission at www.ohrc.on.ca.<br />

For more information, contact:<br />

Mike Chopowick, Manager of Policy, 416-385-1100 x21<br />

The Voice of the Federation of Rental-housing Providers of Ontario<br />

41


Upcoming Events<br />

PM EXPO<br />

December 2-4, <strong>2009</strong><br />

Metro Toronto Convention Centre<br />

PM Expo is a property management trade exposition and conference held on December 2-4, <strong>2009</strong> at the Metro Toronto<br />

Convention Centre, South Building. Combining educational seminars and exposition, this Show will facilitate and accelerate<br />

the exchange of ideas, best practices, and product knowledge for this vital industry http://www.pmexpo.com<br />

<strong>FRPO</strong> M.A.C Awards Gala <strong>2009</strong><br />

December 3rd, <strong>2009</strong><br />

Metro Toronto Convention Centre<br />

The MAC Awards Gala is the most important annual event for our members, and is well attended by over 600 rental housing<br />

providers ranging from hands-on owners/managers to third party management and holding companies. We will be recognizing<br />

excellence in the residential rental housing industry and advancing the high standards that <strong>FRPO</strong> aims to promote.<br />

Get your ticket now! For more information and to register, please call <strong>FRPO</strong> at (416) 385-1100. Registration is required.<br />

For more information or to register, call <strong>FRPO</strong> at 416-385-1100 or info@frpo.org<br />

DEC 3, <strong>2009</strong><br />

Fair Exchange • <strong>Sep</strong>tember / <strong>Oct</strong>ober <strong>2009</strong><br />

42<br />

GUEST SPEAKER: Kevin O’Leary<br />

Canadian entrepreneur and venture capitalist,<br />

as seen on CBC’s Dragons’ Den.<br />

RESERVE YOUR TABLE TODAY!<br />

Contact Laurie Cooper at 416-385-1100 ex. 23


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