the Rental - Alberta Residential Landlord Association
Transcription
the Rental - Alberta Residential Landlord Association
the ISSUE 2 VOLUME 20 SUMMER 2015 Rental gazette Rental Apartment Vacancy Rates on the Rise Across Edmonton Region B Y R I C H A R D G O AT C H E R According to CMHC’s latest (http://www.cmhc-schl. gc.ca/odpub/esub/64343/64343_2015_B01.pdf) forecast report, landlords in the Edmonton region can expect reduced rental unit demand associated with a slowing economy and an increased supply of rental units, leading to higher apartment vacancy rates in the months ahead. Last October, the rental apartment vacancy rate in Greater Edmonton rose to 1.7 per cent from 1.4 per cent a year earlier. Weaker job growth this year and fewer newcomers from outside the province will undermine demand. Meanwhile, a surge in apartment starts this year will bolster supply going into 2016. CMHC analysts are calling for the October vacancy rate to rise to 2.7 per cent in 2015 and 3.2 per cent in 2016. A higher vacancy rate will boost competition for new tenants and slow the rate of rent growth across the region. The average rent for a two-bedroom apartment was $1,227 in October 2014, up 7.5% from $1,141 in October 2013. In 2015 and 2016, rents will continue to rise but at a more moderate pace than in previous years due to higher vacancy rates. INSIDE New Members................................ 2 2015 ARLA Board........................... 3 Events Calendar............................. 3 President’s Message....................... 3 Golf Tournament............................. 4 Editor’s Message............................ 5 Redesigned Laws........................... 6 Sharing the Risk............................. 7 Digital Trends................................. 8 Condo Rental Pools....................... 10 New Licence Model....................... 11 Condo Living................................ 14 CMHC notes that new additions to Edmonton’s rental apartment universe will put some upward pressure on the average rent level, as newer units typically rent for more than older rental apartments. Overall, the average two-bedroom apartment rent is expected to be $1,265 in October 2015, representing an increase of 3.1% from a year prior. In 2016, CMHC expects the average twobedroom rent to rise by 2.4% year-over-year to $1,295. Richard Goatcher is Economic Analyst for the Canadian Home Builders Association (CHBA) in Alberta. He is also principal owner of Goatcher Consulting, which provides a variety of economic and market analysis services to clients such as UDI Edmonton and the Realtors’ Association of Edmonton. ARLA works tirelessly to promote professionalism, education and equity in all aspects of the Residential Rental Business for the benefit of industry members and tenants. 208, 10544-106 St. Edm, AB T5H 2X6 Ph 780-433-9773 Fx 780-423-5186 The opinions expressed in any article in The Rental Gazette are those of the author of that article and not necessarily those of the Alberta Residential Landlord Association. Welcome New Members Owner / Operator Members Free and Clear Property Management • HomeEd Jasper Place Health & Wellness Centre • MacTaggart Place Magnum York Property Management • Mayair South • Saint Thomas Health Center Skyline Living • Tamarack Gardens • TPI • Quality Assured Property Professionals Barrett, Amber • Ammar, Shad • Anaka, Leah • Andersen, Jon • Banh, Long & Yen-Le Beitz, Peter • Bloom, Tony • Boe, Suzanne • Botticelli, Vivianna • Rutar, Brian • Gollpudi, Butchi Buteau, Kassie • Campbell, Deborah • Penner, CarolChou, Ming-Ying • Cook, Lois & Virginia • Cooke, Justin Dodd, Raymond & Beatrice • Dimmick, Heather • Eberle, Lisa • Eichel, Brehn • Fraleigh, Jessica & Brad George, Joseph • Gering, Don • Golurlay, Laura • Goossen, Cynthia • Filan, Greg • Gilbert, Alex • Hamilton, Amy & Scott Hansen, Jonna • Hauck, Joshua • Hearing, Ab • Hicken, Crystal • Hiebert, Linda • James, Mary Journeau, Geraldine • Jurina, Roman • Kennedy, Veronica • O’Neill, Jenna • Katchinskiy, Nir Kheradpay, Mojgan • Kiryluk, Dan • Drover, Krystle • LaGrandeur, Philip • Lee, Susie • Lenzen, Harlan Li, Ernest • Lindsay, Kim & Clay • Liu, Celestine • Lukusta,Nathan • Lutz, Lesley • Lutz, Maxime & Ken Macdonald, Michelle • Mearon, Brian • Michaud, John • Mortensen, Darryl & Amanda • Nichols, Ian Nielsen, Cynthia • Norman, Jason • Moore, Patti • Persaud, Robin • Pham, Nhan • Prokuda, Kristina Pudyrcki, Cindy • Quilala, Manuel • Quock, Kyle • Rajagopalan, Sivakumar • Remley, Chris • Roesler, Randy Ryzak, Brodie • Seerattan, Brenda • Sharma, Yash • Stewart, Greg • Stollery, Randy • Smith, Ann Tamasiuk, Eden • Timmons, Barry • Van Der Walt, JC • Verghese, Abraham • Virk, Dave • Vlodarchyk, Marty Walter, Jordan • Wendling, Michelle • Yue, Jennifer Preferred Service Members BFL Canada Insurance Services Inc. • Butler Plumbing Heating & Gas Fitting • Culada.com Edmonton Eviction Services • Epcor Water • Golden Arrow Pest Control Inc. • Hybrid Horticulture Rostucco Inc. • Paramount Flooring • Premium K9 Services • Superpro Painting Services • Titan Construction Leading Edge Roofing & Consulting Inc. • Titan Construction ARLA Advantage Program Active Pest Solutions: 15% off regular pricing for ANY pest control service for ARLA Members in 2015. Contact: Ryan Frawley at 780-371-9420 or ryan@ activepest.ca ApartmentLove.com: ARLA Members receive a $10 discount on all individual property listings and $50 off monthly subscription packages. Contact: Trevor Davidson at 403-472-6510 or [email protected] Leading Edge Roofing & Consulting Inc: Offering a FREE flat roof inspection and condition report; limit one building per client. RentCheck Credit Bureau: No annual membership fees apply to ARLA Members. 75% savings on credit report, rental history ... and much, much, more. Contact: Brenda Maxwell at 1-800-661-7312 or [email protected] Capitall Exterior Solutions: Offering ARLA Members 15% off all services in 2015. Contact: Craig Hatt at 780-977-6013 or [email protected] Solution 105 Consulting Ltd: Offering a FREE consultation for existing & new SUBMETERING services. Call us today! Contact: Chris Vilcsak at 780-945-9606 or [email protected] Edmonton Eviction Services: Offering ARLA Members a $30.00 discount on basic eviction package throughout 2015. Must note membership upon inquiry. Contact: Donald Gray at 780-974-8427 or [email protected] ZipSure.ca: Discounted on-line tenants insurance as low as $9/month for ARLA members. Contact: Kathleen Corkum at 587-337-4116 or [email protected] IVIS Inc: Offering ARLA Members a 10% discount on all services in 2015. Offer does not apply to emergency after hours services. Contact: Andre A LeBlanc at 780-476-2626 or [email protected] 2 The Rental Gazette S U M M E R 2 015 alber talandlord.org President’s Message ARLA BOARD OF DIRECTORS BY SHERRI DOUCETTE, PRESIDENT EXECUTIVE COMMITTEE Thank you to all our members for your ongoing support of the Board of Director’s and Administration personnel as we continue to transition into our new identity. While not as drastic as the transition of the currently infamous Bruce/Caitlyn Jenner there always seems to be just one more little thing to be redesigned or re-labeled in order to complete the transformation. I know Lynn and Melanie will be delighted when the last detail has been completed. With 2015 already half over the year of change for our Association continues headlong with no end in sight. A brand new NDP government will no doubt be taking a hard long look at the way our industry operates in Alberta. The Association encourages all members to continue to be diligent and attentive to the laws that establish the framework for our interactions with consumers. Now is not the time to raise any red flags with the legislative assembly in regard to fair and ethical business practices around rental housing. The Board of Directors highly recommends that all residential property owners, managers, caretakers and/or other front line personnel are intimately familiar with the requirements of the Alberta Residential Tenancies Act. To this end we have developed the Suite Smarts program; an online, interactive and economical way to ensure you understand the legislative requirements of running your revenue property in Alberta. Do check out the website or contact Melanie at the office to register or learn more about what this course has to offer. With the advent of the new government it will also be essential to grow our association. As the government tackles issues associated with the residential rental industry we will all be better served by presenting a strong and unified voice. Please be sure to spread the word about the benefits of membership in our Association and the importance of robust membership numbers when it comes to preserving a free and competitive rental market. On a lighter note be reminded that while the Association offices remain open during the summer months there will be no General Meetings, luncheons or seminar’s until September. Enjoy your summer. President: Sherri Doucette Past President: Bill Begley 1st Vice President: Sandy Pon 2nd Vice President: Dan Posa Secretary / Treasurer: Marty Kurpershoek DIRECTORS Constitutional: Bill Begley Education & Conference: Jonathan Bussey Government Liaison: Sonny Mirth Membership & Benefits Carolyn Flexhaug and Michelle Roseboom 2015 EVENTS Newsletter: Raphael Yau January 22 Seminar: Fire Code Program General Meeting Luncheon Program & Social: Donna Monkhouse February 19 Seminar: After the Court Order General Meeting Luncheon Public Affairs & Social Media: Lynn Hamliton and Pete Ages March 26 Seminar: Difficult Tenants General Meeting Luncheon April 23 Seminar: Ask the Expert General Meeting Luncheon May 14 Seminar: Death of a Tenant General Meeting Luncheon June 11 Landlord Boot Camp June 18 Golf Tournament September 24 Seminar: Collections General Meeting Luncheon October 22 Seminar: After the Court Order General Meeting Luncheon November AGM & Christmas Social *New Location: Chateau Louie Hotel ARLA ADMINISTRATION STAFF Lynn Biggs Executive Director [email protected] Melanie Robillard Program Administrator [email protected] (117 Street & Kingsway Avenue) General Meeting Luncheon................................................ $32 General Meting Luncheon Non-Member............................ $40 Annual General Meeting & Christmas Social...................... $40 Education Seminar Members............................................ $60 *subject to change Education Seminar Non-Member....................................... $75 *subject to change alber talandlord.org S U M M E R 2 0 15 The Rental Gazette 3 Golf Tournament Swings Into Action B y D onna M on k house , C hair , A R L A G olf C ommittee On Thursday, June 18th the Alberta Residential Landlord Association held its 14th Annual Dougald Miller Golf Classic Tournament over at the Sandpiper Golf & Country Club. Members and invited guests had a delightful day out on the course followed by a BBQ dinner and awards banquet. Throughout the day golfers enjoyed the fruits of sponsorship by way of complimentary hot dogs, delicious mimosa cocktails and a wide assortment of liqueurs; and for those with a sweet tooth, there was even a ice cream truck parked on the course, serving soft ice cream. It just doesn’t get any better than that! ARLA wishes to sincerely thank its Board of Directors, landlord Owners, Operators, Property Managers, team staff and its Preferred Service Supplier members for attending the annual tournament. ARLA especially wishes to acknowledge the event Sponsors for their tremendous support of the golf tournament through participation, contributions, gifts and prizes. A special shout-out goes to the people who manned their corporate holes and delighted the golfers with games, prizes and mouth quenching refreshments and goodies. ARLA is grateful beyond words and as a reminder we encourage members to support its Service Providers by utilizing their services. The detailed list of sponsors are noted below: Tournament Highlight Recap Winning Team with a score of 56: Congratulations to Captain Will Pozzo, James Ma, Travis More, Patrick Madden. Most Honest Team with a score of 84: Congratulations to Captain Dan Posa, Darryl Dreger, Les Cebula Proximity Winners Ladies Longest Putt..................Jenn Smith, Westcorp Ladies Closest to the Pin...........Jenn Smith, Westcorp Ladies Longest Drive................Fran Eastlake, Ascot Properties Men’s Longest Putt...................Rob MacMullen, National Bank Men’s Closest to the Pin............Jeff Mullenix, Sparklean Restoration Men’s Longest Drive.................Blaine Kemp, Karlen-Elecom Mulligan Proceeds: Raised $885 with proceeds going to Dougald & Lesley Miller. Glenda Rouleau, Homeward Trust won the Wine goodie basket for purchasing tickets. 50/50 Winner: Raised $653 with half the proceeds donated to The Canadian Breast Cancer Foundation. Lucky ticket winner was Pieter Gerbeth, Titan Construction. HATS OFF TO OUR SPONSORS We wish to thank the tremendous support of our tournament Sponsors. Courtesy of our sponsors golfers enjoyed a complimentary continental breakfast, free driving range privileges, team prizes, proximity prizes, door prize and gifts galore. A big shout-out goes to: TITLE: CHRISTENSON & MCLEAN ROOFING CO. PLATINIUM: Boardwalk Rental Communities DF Technical & Consulting Services Homeward Trust Peoples Trust GOLD: Active Pest Control, Ascot Property Management, Ayre & Oxford Inc., Capitall Exterior Solutions, Karlen-Elecom, Murray Hill Developments, OAB Reliable Carpet Care, Solution 105 Consulting, Sparklean DKI, Strathearn Heights, TELUS Communications, Titon Construction & Reynolds, Mirth, Richards & Farmer LLP. HOT DOG: Coinamatic SILVER: 4Rent.ca All Reach Glass CART VALET: National Bank ypnexthome BRONZE: Edmonton Eviction Services Edmonton Police Service, Crime Prevention Program In conclusion, on behalf of Lynn Biggs, Executive Director and myself, Donna Monkhouse, we wish to sincerely thank Melanie Robillard (ARLA Assistant Program Coordinator) and its wonderful volunteers Joanne McNalley (Boardwalk Rental Communities) and Shawna Thompson (Avenue Living) for their tremendous hard work in making this year’s tournament such a wonderful delight! We look forward to seeing you all back on the green next year for an even bigger and better event already in the works! 4 The Rental Gazette S U M M E R 2 015 alber talandlord.org Editor’s Message increase and some are questioning if inventory levels can remain manageable. Many of the units under construction will be completed in 2015 leading to higher inventory levels of both owner-user units as well as rental units. B Y R A P H A E L YA U , C H A I R Summer is upon us and we can enjoy the outdoors again, although the price of oil and the local economy are on the forefront of many discussions among Albertans. The Conference Board of Canada is projecting a 0.8% contraction in Real GDP during 2015. They sight “the collapse in oil prices has significantly altered the economic outlook among Canada’s largest cities.” Unemployment is up slightly due to oil and its long reaches into Edmonton’s economy, but Edmonton is still a well diversified city. We are a government and public sector city. Public sector employment accounts for 20% of the local work force, and we haven’t seen any major slashing in this area. After the recent election, the newly elected NDP government is in its infancy and beginning to implement its campaign promises. It’s a reality that the monies must come from somewhere, so the NDP has begun to announce some new policies which will coincide with some new or increased taxes. They have also decided to rescind some of the taxes and fees approved by the outgoing PC government. There is a lot of discussion in the business community about how the government’s alber talandlord.org proposed minimum wage increase will affect business owners. The debate will continue until the government clarifies how this process will unfold. Oil prices seem to have stabilized around $60 per barrel. This translates to significant shortfalls in provincial oil royalties. If the price remains depressed at the current level, the Albertan economy could take another significant dip in the fall. Economists’ price predictions range from $50-$90 per barrel over the upcoming twelve months. Read between the lines and it’s obvious no one knows for sure. In Edmonton we are lucky that we benefit from a diversified economy; in construction alone we employ over 85,000 workers. This industry should bear some of the pressure from the slowdown in the oilsands. There are more cranes in the sky in Edmonton than ever before in history. The count is currently at 23 and will swell to 30 by fall. Currently there are over 12,363 multi-family units under construction as of April 2015, up 32% from the same month in 2014. Construction is expected to S U M M E R 2 0 15 The Edmonton vacancy rate has risen from 1.4% last April to 2.4% in this April. On a positive note, average monthly rents for all suite types increased from $1,061 to $1,110. The overall apartment vacancy rate in Edmonton increased due to softening market conditions, along with a significant number of rental purpose new construction. Currently there are 17 new rental apartments under construction and another 17 proposed. With 21 rental buildings complete in the past 12 months, there have been over 1,800 units added to the rental pool in Edmonton. We have seen a steady demand for multi-family properties with cap rates hovering around 6%. Owners with stabilized operations are listing their buildings for sale and looking to diversify their holdings. In 2015, purchasers will continue to be drawn to cash-flowing multifamily opportunities as a stable investment in which equity can be sheltered and grown. Going forward, increasing operating expenses and mortgage rates may be the greatest factors to influence value appreciation. I hope you all are able to get outside and enjoy our beautiful summers. It was great to see everyone at the 14th Annual Dougald Miller Golf Tournament. Raphael M.H. Yau is a Partner with Cushman & Wakefield Edmonton. Source: CMHC, Conference Board of Canada, Edmonton Journal, Cushman & Wakefield Edmonton Research The Rental Gazette 5 Redesigned Laws for Landlords & Tenants in Alberta Website B Y A melia M artin , C entre for P ublic L egal E ducation A lberta The Centre for Public Legal Education Alberta (CPLEA) is excited to announce the launch of our newly redesigned Laws for Landlords and Tenants in Alberta website (www. landlordandtenant.org). The new website reflects the feedback CPLEA received from landlords and tenants across Alberta. It features a modern, streamlined design with enhanced search capability along with the same excellent plain language content that Alberta landlords and tenants have come to expect from CPLEA. 6 The Rental Gazette CPLEA has a long history of providing accessible and responsive legal information in plain language to tenants and landlords in Alberta. The new Laws for Landlords and Tenants website will continue to grow and evolve over time to address the changing needs of Albertans. CPLEA’s Laws for Landlords and Tenants in Alberta program, including the redevelopment of the website, is generously supported by the Alberta Real Estate Foundation. The new website also features CPLEA’s brand new tip sheet, If your Employment Ends… Laws for Tenants in Alberta. This tip sheet outlines what options are available S U M M E R 2 015 to tenants if they have lost their job and need to leave their tenancy early. Landlords and property managers will find the tip sheet to be a helpful resource to provide tenants who are currently going through this situation. All of CPLEA’s Landlord and Tenant tip sheets can be downloaded and printed for free from the new website by going to www.landlordandtenant.org/resources. One of the most popular publications is the CPLEA’s Eviction Notice flow chart and is available on the site as well. Amelia Martin, BA, MLIS, JD LLP Executive Director, Centre for Public Legal Education Alberta (CPLEA) and can be reached at 780-452-0261. alber talandlord.org Are You ‘Sharing’ the Risk? B y M i k e B eaton , A . P. B . R eid I nsurance Ltd . As the world continues to change at an exponential rate, established industries are being disrupted by smaller, nimbler, more technologically advanced competitors. Today’s consumer craves convenience and service, and these new companies are scaling at a rate that is driving the price down and forcing their competitors to react. FaceBook, Kijiji and Uber are all highlights of this new ‘sharing economy’, disrupting their industries and forcing the previous market leaders to react and change strategy, not only to compete with these new players but survive. One of the best examples of the new sharing economy is a service called AirBNB – if you haven’t heard of it yet, you will soon. AirBNB (Bed and Breakfast) is a community marketplace where guests can book spaces from hosts, connecting people who have space to spare with those who are looking for a place to stay. Typically these are short-term rentals, and can vary from a room in a residence, an apartment, to an entire house. AirBNB has quickly spread throughout the United States and has recently entered Canada. It has become one of the most preferred methods of booking accommodations for the millennial generation (born early 1980s to early 2000s), and is taking a sizable chunk of market share from the hotel industry. As a landlord, where do you stand in this? If one of your tenants has an extra room available, should they be able to ‘rent’ it out to strangers? Does this leave you, the land- alber talandlord.org lord, liable? Is it covered under their tenants insurance policy? What happens if a tenant rents space from you, but use it ONLY as a lodge for travelers through AirBNB? Does your insurance cover any losses? Unfortunately, like many new products on the market, the rules governing their use haven’t caught up to reality of the new economy. AirBNB offers a $1,000,000 Host Guarantee, which simply stated, will reimburse you for up to $1,000,000 in damages to your eligible property, in the rare event that guest damages are not resolved directly with the guest. However, critics argue that most home owners insurance policies do not, under any circumstances, cover shortterm rentals – it’s considered a commercial risk. They also argue that the ‘Host Guarantee’ isn’t actually insurance – it doesn’t cover things like cash and securities, pets or certain types of property like jewelry and artwork. Although being an AirBNB Host can be potentially lucrative, is it legal for your tenants to do so? This seems to be a grey area in Canadian Law, with many provinces having conflicting precedents set as to whether it should be allowed. For example, according to Vancouver’s Zoning And Development Bylaw 10.21.6, ‘rentals for a period of less than one month are not permitted unless the unit is part of a hotel or bed and breakfast’. Other provinces have no such provisions. Horror stories are emerging in the media where the Host had to submit an insurance claim, due to their guests’ negligence, only to be denied by their insur- S U M M E R 2 0 15 ance company for not having coverage for this exposure. According to neighbors of AirBNB users, the site is bringing loud parties, over crowding, and even brothels into their buildings – leading some tenant groups to self-police and report residents illegally listing units on the site. Critics also mention that in secure buildings, such as those who require key (fobs) to enter, are becoming compromised by allowing complete strangers to move in temporarily. As a landlord, you would want to approve the tenants that are moving into your buildings; however, with services like AirBNB, this is now out of your hands. There are a couple of ways to mitigate the risk on your buildings that you might want to look into: • Look through your building insurance contract to see if there are any provisions about short-term rentals, and see what you, the landlord, are liable for. • Require your tenants to have tenants insurance - this will likely lower your exposure to risk (and would likely deter your tenants from using their space as a short-term rental). • Brush up on the bylaws in your city, in regards to these services. These services have been banned in some municipalities. • Create an account on these services, and do a monthly search for your buildings to make sure they aren’t being listed. • Educate your tenants personally about the risks of using these short-term rental services and the potential effects on their personal property, liability, and legal issues. Mike Beaton, B.Comm. is a National Marketing Specialist for A.P.B Reid Insurance and are Proud ARLA Preferred Service Members. For further information please call Mike at 902-434-4642. The Rental Gazette 7 Do You Know Your PPCs From Your SEOs? D i g i t a l Tre n d s & O n l i n e M a r k e t i n g B y E lisa Kro v blit, S enior E ditor , Y ello w Pages N e x t H ome It’s been a print world for so long that you’re complacent about ad strategy. Hold onto your budget – digital strategy will have you doing things differently. Nobody needs to be sold on the power of the Internet, but we’ve finally got a better grasp on how consumers are using the Internet – and best practices to capture their attention. It used to be enough to have a website. It was a place-holder, much like a print ad. It was a touch-point that would connect your consumer with you. Your consumer doesn’t just want to find you and connect, they expect more. They expect to be sold on you by the time they contact you. They want you to provide enough insight that they feel they’re making an intelligent and informed decision by the time they commit to contacting you. Harnessing these Internet tools gives you the edge in a competitive market. You just need to understand those tools. So do you know your PPCs from your SEOs? Beyond a basic website, there are seven key trends that work together to provide the best digital strategy. They’re not a pick-list, they are complementary, working together to optimize your traffic, connect the most qualified visitors with your product and help you convert visits to sales. These are: Mobile Website, Pay-Per-Click, SEO, Audience targeting, Retargeting, Responsiveness and Social Engagement. “PPC - Pay Per Click – is used to drive leads,” says Kate Nash, Digital Marketing Strategist at Yellow Pages NextHome. “You are able to get your product in front of an audience starting a search using a combination of broad and local keywords. But it’s not enough to just get people to your site, you want to get the right people to your site, and you want to engage them, keep them there.” “Audience targeting,” says Nash, “is a type of display marketing where we group consumers together based on their online searches and show them an interest-based ad. After grouping all the like-minded consumers together, 8 The Rental Gazette we can showcase your company on the next webpages they visit: optimizing relevancy for the user and effectiveness for the advertiser. You define your target audience, Google uses its own proprietary analytics to match you with the right spots for your ads to be seen and consumed. Your PPC strategy is maximized because every click you pay for is a qualified, interested and well-matched click. But, says Nash, PPC isn’t the only way to get them to your website, you also need to capitalize on the organic search. This trend is SEO – Search Engine Optimization. Whether they’re Googling, Binging or Yahooing, they’re performing a search to find information on businesses just like yours. You need to make sure that your website ranks at the top so that they find you first and fast. SEO is the way to make that happen. “You need to understand the words they’re entering into the search bar. You need those terms to appear on your website using sharable, engaging content. You need to have the right components on your website to ensure that search engines are finding your website,” she explains. “Search engines find optimized websites,” Nash says. That means great content, pictures, video, copy, floor-plans, robust descriptions, specific pricing, local information, well-organized pages – a strong body of information that supports your business. “A very important component is the FAQ. Anticipate the questions that your consumer wants to ask, and answer them. You want them informed and engaged.” You’ve got visitors. They’ve arrived, but you need strong content to engage them and educate them. A prominent trend is to use an authentic approach. Instead of “Sell, Sell, Sell,” give them content they want to consume, educating them and earning their interest and trust. “Videos are huge,” explains Nash, quoting Comscore’s recent stats: 100 hours of video is uploaded every minute to YouTube. Six billion hours of video are watched each month. The numbers are staggering.” If you don’t have video yet, you may want to get some. “It’s the Millennials that are a S U M M E R 2 015 huge consumer of video.” Nash has another impressive quote: There are 8.2 million Millennials in Canada, that makes up 23 per cent of the population. “These are your renters. This, we know, is a generation that rents. They’re interested in mobility, maintenance-free living. They’re your audience and they want video.” Even with the best websites, sometimes users leave before being converted. This isn’t bad, says Nash. You haven’t lost them yet. They may be going to crowdsource reviews. “This is what Millennials do. In fact, this growing trend is proving to be popular across generations.” People are going to social media to ask around before they commit. This is where Responsiveness comes in. There will be a lot of positive messages about you. Google Pages, Facebook, Twitter, Instagram – there will always be those outspoken people that want to share their opinions. You need to check to see if you’re the topic of conversation. You can engage users through social media. You can thank people for their business and positive feedback, but even more importantly, you can do damage control on negativity. Even the best businesses get negative feedback. “It’s better to control negativity than remove it,” says Nash. Own it, apologize. It’s not the problem, it’s how you deal with the problem. Finally, you need to employ Retargeting. This trend is easy to do. “When the user visits our website, we drop a cookie on their computer,” explains Nash. “This cookie allows us to follow the user around the web. We can put our ads on the pages they’re visiting, making it easy for them to return.” The final part of the digital strategy conversation is summed up in one word: mobile. “The customer is agile. They leave their desk and want to continue interacting so they switch to their phone or tablet. The experience has to be seamless between platforms. A good website has to be mobile-friendly, dynamic. This means it should adjust to the screen it’s being viewed on, not look, feel or behave differently, regardless of the device.” A customized combination of these seven digital components will keep you on trend – and will keep business brisk! YPNextHome are Proud Members of ARLA. For further information please contact Heather Harke, Multi-Media Consultant at 780-456-1153. alber talandlord.org FIRE CODE APPROVED GUIDELINE AFC Division C 2.1.1.1.(2)(b)(i) Page 1 of 7 June 2015 Senior Citizen’s Lodge Fire Safety Upgrading PURPOSE: To provide guidance for improved fire protection and life safety in existing Alberta Senior Citizen’s Lodges. ISSUE: Senior Citizen’s Lodges (Lodges) constructed in Alberta prior to the adoption of the 1997 Alberta Building Code (ABC) may have been constructed when fire suppression sprinklers were not a code requirement for these Group C residential occupancies. Lodges constructed after the adoption of the ABC 1997 were required to install sprinklers in occupied spaces and interim amendments to the ABC in 2009 expanded sprinkler systems to attics and other occupied spaces. BACKGROUND: A tragic fire resulting in the death of 32 residents in the 23 January 2014 Residence du Havre fire in L’Isle-Verte, Quebec highlighted the need for continuing and expanded efforts to improve fire protection in senior’s facilities. Alberta Senior’s ministry has committed funds to upgrade fire and life safety in government owned/operated Senior’s facilities and is encouraging private owners/operators to upgrade their facilities. Alberta Seniors will use these guidelines to assess their Lodges for retrofit, involving a range of options from complete retrofit to the current code requirements, partial retrofit including sprinkler systems for occupied spaces based on the 1997 ABC, or new construction under the current codes where retrofit is no longer possible or cost effective. The Government of Alberta has the authority to mandate changes such as building upgrades to Lodges under its care and control. This Approved Guideline provides the Government of Alberta with an acceptable safety standard that takes into consideration the complexity of the fire protection, fire notification and other life safety systems. Privately owned Lodges are not required to implement this Approved Guideline at this time, but private owners are strongly recommended to consider the Approved Guideline as part of any retrofit plan. By applying this Approved Guideline, existing Lodges can have a significantly enhanced level of fire protection and fire notification at a reasonable cost. Complying with the Approved Guideline will also reduce the design water flow requirements such that upgrading of the building water supply to the building will either be less likely or less costly. The Approved Guideline standard is in line with current upgrading requirements for similar facilities in other Canadian jurisdictions including Quebec, Manitoba, Ontario, Newfoundland and Labrador, PEI and BC. Issue of this STANDATA is authorized by the Chief Fire Administrator and the Chief Building Administrator Alberta Municipal Affairs – Safety Services, 16th Floor, 10155-102 Street, Edmonton, Alberta, Canada, T5J 4L4 Safety Codes Council, 1000, 10665 Jasper Avenue, Edmonton, Alberta, Canada, T5J 3S9 For additional Guidelines and information go to: www.municipalaffairs.alberta.ca/alberta-fire-code-approved-guidelines alber talandlord.org S U M M E R 2 0 15 The Rental Gazette 9 Condominium Rental Pools: Pros, Cons & Considerations B Y G R E G S T E WA RT As an investor owner of a condominium unit, there are many issues to consider when making the decision to join a rental pool. Revenue and expense sharing, peace of mind, condition of your unit in relationship to the others and the track record of the property manager who will be assuming responsibility for the management of the rental pool. There are many advantages to being part of a rental pool. The advantages include economies of scale in terms of sharing operating expenses, less personal hassle relating to screening and managing tenants and the peace of mind of knowing that your property is being professionally managed. Economies of scale relating to operating expenses can translate into lower turnover costs and maintenance costs as the property manager can utilize purchasing power to negotiate better terms/costs for labor and materials. In addition, you will not have the stress of trying to find a qualified tenant for your unit or the hassles associated with addressing behavioral issues for your tenant. A professionally screened tenant is more likely to stay longer 10 T h e R e n t a l G a z e t t e and do less damage to your suite during occupancy. Your tenant will quickly understand that a professional property manager is in place that will not be easily tricked or bullied by them. Professional management will include periodic inspections to be sure that your asset is being properly maintained and that the tenant is held accountable for any demise of your unit, above normal wear and tear. You can also be assured that all other landlords in the property are being held to the same standard as your suite, thereby reducing the problem of some landlords renting to low end tenants that will create a demise for the common property, thereby creating a demise for the equity in your unit. You need to be aware of the condition and marketability of your suite in relation to others in the rental pool. If your suite is in superior condition to others, you will need to understand what will be done to bring the other suites up to a comparable standard and how the expenses to do so will be allocated. If your suite is in inferior condition to others, you will also need to be sure you understand the potential costs to bring your S U M M E R 2 015 suite up to an acceptable/comparable standard and how those expenses will be allocated. The Cons to being part of a rental pool is you will give up some degree of direct control over marketing and maintaining your unit. You will put your economic destiny in the hands of the property manager and with this in mind, it is very important you know who the property manager is, what their track record and accountabilities for success are. In summary, being part of a rental pool has many advantages including peace of mind, economies of scale, professional screening and managing of tenants. Assuming you fully understand how renovation costs and revenues are distributed and you are confident in the selected property manager, being part of a rental pool is an excellent choice to assist you in maximizing your net operating income while reducing the stress of managing your unit. Greg Stewart is a proud member of ARLA. For further information please contact Greg at 587-920-4626. alber talandlord.org Council Approves New Real Estate Licence Model they will need to complete both the residential and rural courses. Consultation Findings A new licensing model is coming to Alberta’s real estate industry on June 1, 2015. The new model will require new real estate professionals to complete the practice education courses for the areas of real estate in which they plan to work (residential, commercial and/or rural). If they want to trade in real estate in multiple areas, they must take the education for each area of practice. Council formally approved the new licence model for real estate professionals at its April meeting. The feedback RECA received during the consultation process has directly contributed to the structure of the new model. The consultation included a review of draft definitions for residential and commercial real estate, as well as questions about possible challenges and solutions to those challenges. While there was a relatively low response rate, generally responses were in favour of the upcoming change. Real estate professionals provided important feedback, including highlighting areas on which they will need more information and pinpointing things that are misunderstood. This feedback is valuable to RECA as it develops the industry tools, resources and information for real estate professionals about the areas of real estate practice. for retail, office, industrial, investment and institutional purposes and multifamily residential property comprised of more than four premises. “Rural real estate” means real property that is located outside a city, town, village, hamlet or summer village and with a primary purpose of farming, but does not include: i) minerals contained in, on or under that real property; and ii) land used primarily for the purposes of extracting, processing, storing and transporting minerals. The definitions emphasize the use or intended use of the land. Status Quo for Current Real Estate Professionals The new real estate licence model will not affect current real estate professionals. For example, if you’re currently authorized in real estate and can trade in all real estate activities (residential, commercial, rural and property management), your licence to trade in those areas will continue after June 1. After reviewing the consultation responses, Council’s decision is not to remove the rural real estate course. While the original consultation paper contemplated a residential restricted licence and a commercial restricted licence, based on feedback, Council is proceeding with three separate restrictions: • Residential real estate • Commercial real estate • Rural real estate The finalized practice area definitions that will be reflected in the Real Estate Act Rules, and through the new licence model are: Rural residential is captured by the residential course, while the rural course is devoted to agribusiness. If an individual wants to sell rural residential and agribusiness, iii) land intended or used as a site for residential purposes As we move towards June 1, RECA will produce additional information bulletins about the areas of practice, which will be valuable tools to help new real estate professionals understand the restrictions of their chosen licence. “Commercial real estate” means real property intended or used to generate income and includes property used Reprint in kind from the Real Estate Council of Alberta, www.reca. ca. For additional information, contact RECA at [email protected]. alber talandlord.org “Residential real estate” means: i) any premises intended for residential purposes and the land upon which the premises are situated; ii) a building comprised of not more than four premises intended for residential purposes; or S U M M E R 2 0 15 Real estate professionals will continue to require authorization in all real estate practice areas before becoming a broker or associate broker. The Rental Gazette 11 12 T h e R e n t a l G a z e t t e S U M M E R 2 015 alber talandlord.org alber talandlord.org S U M M E R 2 0 15 The Rental Gazette 13 A Guide to Condominium Living; Avoiding Strokes & Stabbings B Y B I L L B E G L E Y, I N L A N D P R O P E RT Y M A N A G E M E N T To begin, a comparison: Living in a condominium whether a townhouse, duplex or apartment building IS NOT LIKE LIVING IN A SINGLE FAMILY HOME on the street. Check the comparison chart here for some differences and similarities. Please note that this comparison is not intended to disparage condominium living but to give the reader some advance warning before buying a condo because it is a major investment and more importantly will let you know what to expect in the circumstances of living in a condo community; information which you will not find in a developer’s disclosure booklet or in the show home or real estate listing. CONDO LIVING SINGLE-FAMILY LIVING If you want to do ANYTHING to the exterior of your unit or put anything on the grounds of common property or even your own land in a bare land condo, you ask permission of the Board of Directors PRIOR to doing it. The Board may say NO for a variety of reasons. If you want to change the colour of your door, plant flowers, erect a fence, install an air conditioning unit outside of your single family home you do it. If you don’t pay the fees assessed by the Board for maintenance you will find a caveat registered on your title and your mortgagee advised of your default. If you don’t want to keep your grounds looking spiffy you can let it go and until it becomes so bad the City gives an order, you can leave it. Your neighbours will hate you but it sounds like you’re not too sociable anyway. You will have to put money into a Reserve Fund to cover the cost of anticipated future capital expenses based on someone’s projection and anticipated life-span of those items (concrete, roofing, boilers, etc.) It does not matter if you feel you will have moved or died before the expense actually arises. Think of it as your share of the depreciation on things. You are free to let any aspect of your home deteriorate or keep it maintained at your own cost. If a roof needs to be replaced, you look to your savings to repair it at the time it begins to give you trouble. (or after your ceiling crumbles). Same thing for driveways. As a member of the condo, you join a group with common interests and there is a very good chance that you will develop new friendships. It is not uncommon for people to know nothing about their neighbours. The only common ground is that you happen to live nearby. Certainly people do form community friendships but it takes just that much more effort without the condo connection. CONTINUED PG 15 14 T h e R e n t a l G a z e t t e S U M M E R 2 015 alber talandlord.org CONDO LIVING SINGLE-FAMILY LIVING RULES abound in condos. First and foremost are the Bylaws. If you do not read the bylaws BEFORE you buy you will regret it. You will find there what you are responsible for, if you can have pets and how many, what you can or can’t do. In addition, many condo boards create a set of rules and regulations which clarify and add more detail to some bylaw requirements. If you do not like following rules do not buy the condo. If you feel that some bylaws are not really going to be enforced, you will be proven wrong; do not buy the condo. RULES are what you make them. Aside from abiding by the municipal bylaws, you pretty much do as you like at your home and change anything you feel like changing. If your neighbour’s deck starts to deteriorate, you and all the other neighbours share in the cost of repairing or replacing that deck. Before you buy, confirm whether or not this is correct; numerous condos have found that decks (not balconies on apartment buildings) are a major expense and have amended their bylaws to place the financial onus on the individual owner to repair the deck, particularly true when someone has installed a sunroom on top of the deck. If your neighbour’s deck starts to deteriorate, you remember not to go dancing on it and hope they don’t fall and break their necks. Conversely, if your deck is rotting, it’s all yours to fix. The size of your association’s reserve fund may well impact your ability to sell your home and how much people are willing to pay for it. If you don’t repair and maintain your home, a buyer will probably reduce the amount they are willing to pay for your home but they won’t ask you how much you have saved up for it. The outside maintenance of your home and of your neighbours’ homes is controlled by the Board and its decisions on whether to do work this year or next or at all are their own. The Board also decides who to bring in to do work. You alone control the maintenance of your home. You do not have the comfort of neighbours contributing to the costs and you have to find contractors and investigate them for the quality of their work, their insurance and Workers Compensation coverage. You likely have at least one neighbour whose home is attached to yours; more if you are in an apartment-style condo. You must deal with their lifestyle, parties, noise, odours, comings and goings at all hours, etc. Your home is your castle or hovel depending on how you want to or are able to live. Unless the neighbours have Greek letters over their front door the parties, noise, etc. are not often a concern. MEETINGS. You have an annual general meeting and if you are on the Board you have up to 12 monthly meetings to attend. These are usually held in the evening and last from 30 minutes to 2 ½ hours. Do you have some concern about the way things are being run? Go to the AGM if your letter-writing campaign has been unsuccessful and voice your concerns. Be calm and orderly and if at all possible, decide in advance what it is you want to discuss and ask that it be put on the agenda. Most condos provide for Roberts Rules of Order or The Standard Code of Parliamentary Procedure and this may assist in getting your views in front of the meeting if there is resistance from the Chair. Please don’t try and show everybody all you know about these procedures on every point on the agenda. It is a small gathering (usually) of neighbours and friends (usually) and most attendees just want to get home to watch the game. MEETINGS. There aren’t any. Unless your wife says “we have to talk”. Value for money is subjective but many people in condos believe that they do not receive the same service as their freehold friends. That long road leading to your townhouse from Main Street is really a DRIVEWAY. Once it leaves the public road it is not the public’s responsibility to clear snow or fill potholes. Garbage collection is often privately done at a direct cost to the condo and paid by condo fees. Property taxes (in Alberta and many other jurisdictions) are based on Market Value. If your home is valued at $400,000 you pay the same tax, based on the mill rate, as for single family homes. It still applies to you even though the City makes you collect your own garbage, light the roadway within your complex, etc. The theory of market value says your home is worth that much after allowing for the fact you have to do those other things. Value for money is subjective. Your driveway is maybe 25 feet long. You have to shovel it and the condo owner doesn’t. Garbage collection is normally included in your taxes or added to your water bill as an extra cost and you pay it whether you have one bag or ten. CARE-FREE LIVING is a concept found almost exclusively in developer marketing material. While you may not have to shovel or cut the grass you are paying someone to do it. You should take your turn sitting on the Board or committees to help run the place. Every Board everywhere has complained about the people who just sit back and let somebody else do the work around there. If you go away for more than the weekend you need to have someone lined up to care for your home. The grass may be cut or the snow shoveled but the fliers need to be cleared from your mailbox and someone should check on your interior for problems like leaks. CARE-FREE LIVING was never in the cards. If you don’t want to pay someone to do it, you’ll have to do it yourself. You are the committee and the Board running your home operation. You can have wine at your meetings. If you go away for more than the weekend you need to have someone lined up to care for your home’s exterior, pick up papers and fliers and check that the hot water tank hasn’t exploded. If you were moving to a condo for “care-free living” consider that you could pay someone to tend to your home’s exterior and be in much the same position as a condo owner who pays for these things through condo fees. Insurance on your home is provided by the condominium through your condo fees BUT this does not include your personal property, furniture, etc. or any upgrades you may have made such as hardwood flooring, upgraded cabinets and the like or basement development. Get a condo owner’s policy. Carry this insurance, it’s cheap. Make sure you are covered for your liability to third parties and to the condo corporation for its deductible in case a flood or fire does start in your suite. DO NOT be one of those people interviewed after a fire who weep about not having anything left and no we didn’t have insurance. Insurance on your home is a major responsibility that you have. It is needed if you want to come back from any catastrophic event and your mortgagee demands that you carry it. Make sure it is for the full replacement value of your home and possessions. It will not be nearly as cheap as a condo owner’s policy. CONTINUED PG 16 alber talandlord.org S U M M E R 2 0 15 The Rental Gazette 15 Continued From 14 GET ALONG (CHILL) When you decide to live in a condo, you need to understand BEFOREHAND that it is a multi-family living arrangement. If you are in an apartment condo you should expect the same sound transmission between walls and floors as a tenant in a rental building. Ditto for odours. A condo is not a single family dwelling where you get things done the way you want them, when you want them and you write the cheque. Repairs go to the Board or the Maintenance Committee (it has many names) who will likely go around to your place to see what the problem is and if it is indeed a problem. Then they will decide if the budget allows the work to be done or if it should be put off for a while. Then they will tell you when the contractor is coming. Grass cutting and snow removal are done in more of a commercial setting; not like you going out and clipping every blade of grass to perfection. Cars on driveways will thwart snow removal crews who generally will not come within a meter of any vehicle to avoid damage claims. The lengths people will go to, blaming others for damage can be incredible. Without ever seeing a crew at work they know “he raised the bobcat bucket up and damaged my eaves” or whatever unlikely event occurred. Crews do things improperly at times and you should report them. Debarking trees with weed whackers, breaking fences with piled snow, gouging curbs and lawns with bobcat buckets all do happen and most contractors will repair these things. Don’t though, go out and harangue the crew for perceived transgressions even if you do have proof or eyewitness evidence. Call the manager or a Board member you know to report it. Don’t complain that you have to clear your own driveway because you leave for work at 6:00 a.m. and the snow crew 16 T h e R e n t a l G a z e t t e isn’t there and you shouldn’t have to pay for it. Don’t think you shouldn’t pay for road maintenance because you live by the entrance and only use 30 feet of the road. It’s a condo and you pay in proportion to the number of Unit Factors your unit has on its title. If you have a dog (and sometimes this relates to cats) do not allow it to roam free on the property and do not allow it to poop on the grounds, (whether it is on your bare land unit or on common property) unless you are there to pick it up IMMEDIATELY. This violates most communities’ bylaws and almost certainly your condo’s bylaws. It is unhealthy, unsanitary, visually disgusting and creates problems for grounds maintenance crews who have to clean their equipment and will likely want higher fees next year. Apartment condos often turn the boiler down or off for the summer. If there is an early cold snap, ask for the heat to be turned back on but don’t equate the lack of heat to uncaring and incompetent Boards and managers when no one expected this weather. Give them a chance to reset the system. If you have or suspect you have, a leak in a tap or toilet, have it fixed immediately. Small leaks can generate large water bills if left unattended and just because the condo is paying that bill is not a reason to ignore it. Small leaks can also become big leaks and if there is a suite below you, they will suffer too PLUS you will likely get the bill for repairing that other unit (or units). Infestations happen, whether it is bedbugs or cockroaches or what have you. If you find pests notify the manager without delay. It is important that inspections be carried out in any units abutting yours and as far afield as needed until none are found. S U M M E R 2 015 Only then can the problem be resolved. Often the unit where the infestation started will have to bear the cost of cleanup but the longer and further it goes, the higher the cost. I have encountered people who thought they could treat it themselves and refused to speak up thinking it was embarrassing. Don’t think that; bedbugs have no favourites between rich and poor, clean and messy. You can bring them home from the finest hotels. I have never seen in single family living, the level of discontent I see daily in condominiums. a) If you are not able to accept that somebody else is running a facet of your life - do not move into a condo. b) If you cannot control your temper because someone next door (or even down the street) got their deck repaired before you did - do not move into a condo. c) If it bothers you that neighbours have a big pickup truck on their driveway that “blocks out the entire street so I can’t tell what’s coming” or they have grandchildren come over to visit who run amok and “totally destroy the place” – do not move into a condo. d) If no one should tell you to pick up children’s toys outside or that you can’t leave a perfectly good transmission on your deck or write to you to remind you a payment is past due – do not move into a condo. e) If rules were made for other people, not you - do not move into a condo. The reactions of far too many residents in a condo to perceived slights against them or shortcomings of a Board in their decision-making, border on that of kindergarteners vying for toys. If only we could put them all down for naps. Arrears notices are not sent only to you nor is it a campaign to persecute you. Recognizing that these are the homes of the people involved there is still no justification for fits of rage, angry and often CONTINUED PG 18 alber talandlord.org alber talandlord.org S U M M E R 2 0 15 The Rental Gazette 17 Continued From 14 anonymous letters accusing Boards of stupidity, favouritism, financial trickery and mismanagement and vindictive campaigns to oust the Board. A popular newspaper column answers questions about condos that invariably include the note that you should consult a solicitor. Solicitors understand the law and can interpret bylaws but how truly bad is a situation that you should be going to that extent. Try talking about what you see as being wrong rather than lighting torches and marching on the castle. When looking at a purchase, ask questions about the various responsibilities of owners vs Condo Corporation. As I noted in the comparison table, ask who looks after decks and is there a difference when a sunroom or roof has been installed. Who pays when a zone valve has to be replaced in your apartment’s heating? Do you pay for windows and/or doors and is the garage door, screen door or patio door included? What about the trim around the door and the garage door opener? Very few sets of bylaws get into the detail of such things. If you know going in, the problems never arise. It should be obvious but needs to be emphasized that condo Boards are made up of VOLUNTEERS who do not get paid to do this work and are also owners within the same condo, subject to the same rules they devise for the rest of the population. When they put through a 15% condo fee increase it was not to cause YOU difficulty, it is the same increase they are paying and it has been done because this money is needed to continue to support the condo. An important note on condo fees: the Board is charged with the responsibility to maintain the condo property and not to make sure the fees are “affordable” for everyone. Too many times we encounter Boards reluctant to increase fees that have been shown to be necessary because it will be too hard for people 18 T h e R e n t a l G a z e t te to pay. While we all sympathize with people on fixed and low incomes when it comes budget time, it is wrong-thinking to take that into consideration in setting the basic budget. Yes, you can forego the fancy electric gates at the entrance but you can’t decide to not have snow cleared. Utilities, insurance and reserve funds need to be paid for. If the Board members “pay themselves” it is usually via a dinner meeting at Christmas and is meagre compensation for the effort they put into keeping your place running (not to mention the abuse many of them take). If you get a letter telling you to fix something like a deck or deck boards (where the owner is responsible for it) they didn’t write to you as a form of punishment; they are trying to ensure all the components of the exterior are maintained. If your neighbour has a bad deck also but didn’t get a letter, it’s not favoritism, it’s an oversight or that person has already agreed to repair their deck. And in any event, it is not something that should cloud your day and fester inside you. Don’t threaten to sue the condo or the management company for every little thing you think was done improperly or wasn’t done to your satisfaction. It is usually an empty threat and when you see your lawyer to do this he’ll tell you what a waste of time and resources it is and then you are left feeling kind of silly for having said it. Save the big threat for the big problem because nobody believes these everyday threats. In the comparisons above there is reference to the bylaws and rules and obeying them. Too often we see people ignore them because they don’t feel it should be a rule or that they only do it “once in a while” or and this one is common, “I have to park on the roadway/in visitor parking because I’ve got 3 cars and S U M M E R 2 015 I can only put two in the garage.” This is not a reason; it’s a rationalization and a poor one. If you cannot get a rental parking stall you are left with parking on the street outside the condo. If you prefer satellite television to cable make sure that dishes are allowed, where they can be placed and that the Board will allow you to put a hole in the exterior walls. All the rules are there to be obeyed and the Board is obliged to enforce them when it becomes aware of a violation. Having said that, most boards are not looking for trouble and will wait until a complaint is made to enforce many rules. Bear in mind also that some condos have people with nothing better to do than look for other people’s bylaw infractions and they will report everything, regardless how minor it may be. Unfortunately, the Board must enforce the bylaws and has to act when the local busybody points out an infraction. If you become a family instead of a couple and the bylaws include an age restriction, you may be ordered to move out. If your plan is in that direction make sure your condo home accommodates families. If you join a Board please do so for the correct reasons. If you are hoping to improve your environment or get some of those delayed maintenance jobs done or streamline the administration of your condo that’s great. If you want to work constructively with other Board members that’s even better. Also remember that working constructively does not mean you have to acquiesce to the others all the time; you are there to voice your opinion too and show where your ideas are better. That improves the condo for everyone. And when the other person is the one voicing their opinion, do not dismiss it even if you think you are part of the majority; accept their view and consider all the possibilities. If a question is put to the Board members, DO NOT answer “I’ll go along with whatever the majority decides.” You may be the one who creates a majority and more importantly, you are a director and you are there to make decisions; not to CONTINUED PG 20 alber talandlord.org alber talandlord.org S U M M E R 2 0 15 The Rental Gazette 19 Continued From 14 simply agree. If you give that answer you are not doing your job. There is no reason to get angry with others for having disparate views. If all the considered views have been looked at and your Board makes a decision it is now time for you to stand behind it. Even if you think it was a bad decision, you are part of the team, the Board, that you joined and it needs a single voice to the public. If you can’t be a team player maybe single-family living is right for you. If being two-faced and sneaking around behind the backs of your fellow Board members is how you think you can “get your way” you may be right and I probably won’t change your methods but know that this activity is usually transparent to others and your personal “value” is gone (not that you probably care) but being open with the Board members is a far better means of attaining goals. If five other people think your proposal is not in the best interests of everyone, it probably isn’t. You probably should be living in a single family home. of dialogue between meetings. Without it you are not going to be as up to date as other members and then you put out someone who has to take material to you. Do not join the Board just because there is a piece of maintenance you want to have done at your unit. We have seen it too often; the Board is joined, the particular problem is resolved and that’s the last we see of the new Director. When you do this you skew the quorum requirement and leave the other Directors wondering why you are not coming to meetings. On that final topic, only join a Board if you are going to be able to meet the needs of the Board. You should be able to make it to most meetings, you should be prepared to offer your insights on topics and you should be able to communicate with the rest of the Board between meetings. If you are going to be in Mazatlan or Miami or Florence for the winter you may not feel like taking time to Skype Board meetings so then don’t join. Today, when almost everyone is internet-ready it is practical for every Board member to have email as that is becoming the accepted method In mentioning these points I do so because people become almost apoplectic when they see some shortfall in the operation of the condo. There is no good reason to get this worked up. Tell the manager and that will usually get something done. 20 The Rental Gazette Please don’t always tell the property manager that it’s all his/ her fault unless you know the manager was supposed to do something specific. The property manager works for the Board, takes direction from the Board and must only spend condo money when the Board approves it. The property manager deals with contractors hired by the Board so don’t yell at the manager when the contractor misses your driveway or scalps a part of your lawn or doesn’t pick up your garbage. If you tell the manager, they will contact the contractor to resolve matters. I have seen owners yelling at the manager because work didn’t get done and that‘s only because the Board chose not to do it or couldn’t make a decision, a common malady among Board members. If you have a problem with another resident of your condo sometimes it is easier to make a direct appeal to that person to cease whatever is giving you grief. A low-key, calm request will often result in the person apologizing for whatever it was, the explanation that they didn’t realize it was disturbing and the cessation of the problem activity. If you hammer on their door and scream or threaten because of some minor problem like footsteps above you; expect to be greeted with hostility in return. If you are uncomfortable approaching another resident, write the property manager (or the Board) and explain the problem and how you see it as violating bylaws. The manager S U M M E R 2 015 can write to the other people with a request to cease and your identity is not given to them as a complainant. The Privacy Commission has stated that the name of the complainant is not to be given out. The manager needs it as backup for issuing the letter so he is not then told “I never said anything” by a complainant who fears retribution. Unacceptable activity that continues can result in fines or other sanctions against people and in the case of tenants, their eviction from the property. When the property manager asks for information on you and your tenant and the tenant’s agreement to abide by the bylaws it is because the Act requires that you provide this information and the condo relies on this to contact tenants and to enforce its rights under the bylaws. You don’t have the right to refuse because it’s private and it is only going to go in a file to be available if needed. No one is trying to usurp your identity. Chances are that your condo has a professional property manager. Some smaller condos manage things on their own and this is fine if the people understand what is required of them. Unfortunately, many self-managing Boards do not really know what they are supposed to do, what records they should be keeping or how to maintain a decent set of financial statements. Green columnar paper might get you all you need but too often something is missed. A professional will know to register an address for service and changes of directors. They will keep proper books and be able to tell who is in arrears and notify mortgagees and register caveats. They will know or find the answers to bylaw questions and find contractors who will do good work for you. Joining the Canadian Condominium Institute will get you resources to help you if you must self-manage. Managers work on a rather narrow profit margin and because yours is a small condo does not mean the manager has proportionately less to do than a big condo. Management fees at small condos can seem quite high for this reason but the big and small condo each has one set of books, regular meetings, one snow or grass contract to negotiate, etc. © Bill Begley, Inland Property Management Ltd. alber talandlord.org alber talandlord.org S U M M E R 2 0 15 The Rental Gazette 21 Building Smart & Profitable Landlords One Suite at a Time! Learn how the Residential Tenancies Act can work for you by: • Saving time and money • Protecting your investment • Avoiding costly mistakes For information on pricing and group discounts, please visit www.albertalandlord.org 22 The Rental Gazette S U M M E R 2 015 alber talandlord.org PREVENT CRIME IN YOUR RENTAL PROPERTY REGISTER FOR THE CRIME FREE MULTI-HOUSING PROGRAM This certification course is part of an internationally-recognized crime prevention program to help owners and managers keep illegal activity out of rental properties. The course is presented by the Edmonton Police Service and the City of Edmonton Landlord and Tenant Advisory Board. Certification sessions include manager training, landlord / tenant rights and responsibilities, drug and gang presentations, Safer Communities and Neighbourhoods (SCAN) and more. Dates: November 18-19, 2015 Location: 14339 50 Street, Edmonton To register, contact: City of Edmonton Landlord and Tenant Advisory Board 8904 118 Avenue, Edmonton Phone: 780-496-5959 Fax: 780-496-5859 Websites: edmonton.ca/LTAB edmontonpolice.ca/crimefree