March 2015 LPMAnews London Property Management Association President’s Message As all of you know, carbon monoxide alarms are mandatory in rental properties. In the December newsletter, I provided incorrect information about the deadline dates. The CO alarm regulation came into force on October 15, 2014. Buildings that contain no more than six residential suites are required to comply with the legislation by April 15, 2015 and buildings with more than six suites must be in compliance by October 15, 2015. With spring comes changes to our board of directors. It's hard to believe but my two-year term as president is about to end in May. It has been a great learning experience to sit as the president of LPMA and I thank you for this opportunity. If anyone is interested in becoming a member of our board or contributing to our association, please contact LPMA administrator Brenda Davidson. Emma Sims 1st Vice President’s Message Thank you to those who attended our marketing seminar on February 5. We hope you enjoyed Bonnie Hoy and Max Steinman's presentations. LPMA's trade show is on April 14 from 6 pm to 8 pm at the Lamplighter Inn. Admission is free and tables go quickly so if you haven't signed up yet please do so. The cost of a table is $150 if you sign up by April 1 and $200 after April 1. This event is a good opportunity to Inside This Issue • CFAA Rental Housing Conference 2015 Coming Soon • Complying with the Accessibility for Ontarians with Disabilities Act • Tips for Dealing with Pothole Season • Make Personal Safety a Priority When Showing Units • Landlords and Site Staff: Note the Cost of Casual Gossip • Staying Safe around Needles • Upcoming Events • Deciding Whether to Hire a Property Manager • Advertise in LPMAnews • New Members meet with new suppliers, reconnect with current ones and network with other landlords and our board of directors. Our next dinner meeting will be held on May 12 in the Lamplighter's Regency Room. Registration and networking will take place from 5:30 pm to 6 pm and dinner from 6 pm to 6:45 pm. If members register by May 1, the charge for the dinner will be $25 or $45 for non-members. Please check out our updated website at www.lpma.ca. Online registration for events is available, as is online payment of membership fees and much more. Shirley Criger 2nd Vice President’s Message Spring is coming and here are a few suggestions to prepare you for warmer weather: 1. Have your roofs – regardless of the age of the home – inspected for ice damage. Eaves troughs should also be inspected for any damage resulting from the weight of icicles. 2. Remove all salt boxes and sweep parking lots to rid them of salt and sand. 3. Inspect asphalt parking lots for potholes that may damage vehicles. 4. Check parking sign posts that may have been damaged by snowplow blades. 5. Inspect your outdoor taps for splits before turning them on. Any irrigation systems should be inspected by a professional. 6. Check basements for groundwater flooding from the spring thaw. 7. Steam clean corridors and mats to rid them of salt and sand stains. 8. Turn down the heat, but be mindful of the vital services bylaw that requires landlords to maintain a minimum temperature of 20 degrees Celsius in units from Sept. 15 to June 15. 9. Once the weather warms up, tour your properties with your landscaper to order repairs to lawns from winter kill. 10. Order your annual flowers! The Victoria Day long weekend is just around the corner. Lisa Smith Page 2 LPMAnews March 2015 CFAA Rental Housing Conference 2015 Coming Soon “There is something for everyone at the CFAA Rental Housing Conference, whether you own or operate one rental unit or thousands of rental units,” according to B.J. Santavy, a past president of LPMA. Meet new colleagues and network with other landlords. Spend an evening at the top of the CN Tower. Inform yourself about key issues for landlords. Economists Benjamin Tal and Peter Norman will offer clear answers to these questions: When do the experts expect interest rates to rise and by how much? How will the drop in world oil prices affect rental demand across Canada? Tony Chapman will explain where rental marketing is heading, while pointing out the impact the changing world will have on best practices for rental operations. What is new in building repairs and renovations? Engineers, architects and landlords will help you decide how to preserve or retrofit your building to get the best return on investment. What do you have to do to be a resilient leader for your team or company? Lee-Anne McAlear will show you how to embrace change, engage your people and get results. CFAA Rental Housing Conference 2015 will be held in Toronto. The Building Innovations Tour will take place on June 10, while the education sessions take place on June 11 and 12 at the Westin Prince Hotel (near the 401). In a choice of more than 30 sessions, landlords will hear from outside The Building Innovations Tour will take place on experts and also from experienced, successful landlords who have thought June 10, while the education sessions take place on June 11 and 12. through the issues and tried various approaches. Party at the CN Tower The main social event will be an evening reception, supper and party on June 11 at the CN Tower. Continued next page SIGN UP NOW Residential Tenancies Act 2014 Refresher course 8:00am – 12:00pm includes full breakfast th th April 9 & 24 Toronto th April 29 London This refresher course will cover starting a tenancy right, ending a tenancy and case law update Special LPMA member pricing at $149.99 per person plus taxes FRPO Members $99.99 per person plus taxes To register, please contact Lynzi Michal at [email protected] or 1-877-688-1960 Extension 22. LPMAnews March June 2006 LPMAnews 2015 Page Page3 3 CFAA Report (Continued) Transportation will be provided to and from the hotel. During the entire conference, there will be many opportunities to meet new colleagues, network with other landlords and talk to industry suppliers about new and helpful services and products. Your costs of attending the conference are tax deductible. B.J. Santavy has attended the CFAA Rental Housing Conferences since they began close to a decade ago. She notes, “Every year I walk away from the CFAA Conference with a tremendous amount of valuable information to help our organization become more effective and to improve our bottom line.” Investors, owner-operators, department heads and executives should attend, while executives and regional managers should send staff members at all levels from property managers to department heads and in all departments from building operations to human resources and marketing. Delegates at the CFAA Rental Housing Conference 2014 made these comments: “I particularly liked hearing the expert and then hearing the practical aspects from the landlord.” “Fantastic!” “Great conference, great material.” “Very good speakers, knowledgeable, enthusiastic and willing to share experiences.” To learn more or to register, visit the conference section of www.cfaa-fcapi.org. Industry suppliers and property management companies are invited to inquire about exhibiting or sponsorship opportunities by calling (613) 235-0101. Participate in the 2015-16 CFAA Employee Compensation Survey LPMA members and all landlords are encouraged to participate in the 2015-16 Rental Housing Employee Compensation Survey. The survey is of value to any landlord with a full-time employee or even two part-time superintendents. By providing your data, you or your company will receive a substantial discount on the survey report so that it will cost less than $200. The report for London should be available in July. To participate or find out more, contact CFAA at (613) 235-0101 or [email protected]. LPMA is a member of the Canadian Federation of Apartment Associations, the sole national organization representing the interests of Canada's $480-billion dollar private rental housing industry, which provides homes for more than eight million Canadians. Page 44 Page LPMAnewsJune March 2015 LPMAnews 2006 Complying with the Accessibility for Ontarians with Disabilities Act Tenants and employees will have improved access to landlords' services Accessibility is top of mind for landlords who are working to ensure their apartment buildings, websites and policies meet the requirements of the Accessibility for Ontarians with Disabilities Act (AODA). Although complying with another piece of legislation may seem onerous, it's an opportunity for landlords to ensure their buildings are accessible to seniors and tenants with disabilities – a segment of the population with considerable spending power. The provincial government enacted the AODA in 2005 with the goal of making Ontario accessible by 2025 using a phased approach. Five accessibility standards, including employment, information and communications, transportation, customer service and the built environment, are the rules that businesses must follow to prevent barriers to accessibility. The Act is intended to promote The Act is intended to promote accessibility for landlords' employees as well as the accessibility for landlords' tenants and guests who access their services. Landlords can visit employees as well as the tenants and guests who access www.Ontario.ca/AccessOn for more information. their services. Laura McKeen, a London lawyer and a member of the Partnership Council on Employment Opportunities for People with Disabilities, says Ontario is the first jurisdiction among Commonwealth countries to take a “progressive, proactive position” on making the province accessible. According to the government's website, research has shown that people with disabilities will patronize a business if their needs are being met by that business. “There is a real business case behind making your organization accessible,” McKeen says. “Also, landlords need to remember that we have an aging population and many people are aging in place and will require more accessibility features as they age and experience more disability-related needs. There's going to be a push from tenants who will flock towards buildings and complexes that are accessible. There is an opportunity for landlords to differentiate themselves from the competition.” There are three standards with imminent deadlines that apply to landlords. The built environment standard: The first part of this standard applies to buildings and public spaces, and it aims to remove barriers in buildings by proposing requirements in entrances, doorways and ramps; parking spaces; signs and displays; and recreation areas, including parks, trails and playgrounds. “Landlords should be mindful of these when they're looking at making any changes to the exterior of their properties,” McKeen says. The second part of the standard is an amendment, which took effect on January 1, to the Ontario Building Code. The new requirements apply to most new construction and extensive renovations. McKeen recommends that landlords take the accessibility requirements into account when they're planning new buildings or renovations “and make sure that those costs are built into their projections.” Existing buildings where no work is planned are not affected by the requirements. Houses, including semidetached homes, townhouses and duplexes, are also not affected by most accessibility requirements, with the exception of smoke alarm stipulations. The amendments to the building code include requirements for visual fire alarms to be installed in all public Continued next page LPMAnews March 2015 June 2006 Page 5 Complying with the Accessibility for Ontarians with Disabilities Act (Continued) corridors of multi-unit residential buildings and in all multi-unit residential suites; for all smoke alarms in all buildings, including houses, to include a visual component; for power-door operators to be provided at entrances to a wider range of buildings and at entrances to barrier-free washrooms and common rooms in multi-unit residential buildings; and for barrier-free access to public pools and spas. For a complete list, go to: www.mah.gov.on.ca/Page10546.aspx Although the deadline for having a written plan in place was Jan. 1, 2015, McKeen says the government is allowing companies flexibility in meeting it. The Accessibility Directorate of Ontario, the branch of the government charged with enforcing compliance with the regulations, has indicated that it plans to make compliance a greater priority this year. “They (the Directorate) also acknowledge that the vast majority of businesses in Ontario have not filed their compliance reports as required under the standard,” McKeen notes. The employment standard: Large landlords with more than 50 employees will have requirements to meet starting on January 1, 2016, while landlords with fewer than 50 employees will have to meet a January 1, 2017 deadline. Larger landlords should currently be considering how to meet their obligations within their existing policies and procedures, McKeen says. “Smaller businesses will have the benefit of seeing what the larger ones do.” Many of the accommodations required under the Act don't cost employers any money and aren't intended to be financially onerous. They could be as simple as giving a prospective employee with dyslexia more time when completing a test that's part of the interview process. “A lot of them are common sense that would already be part of your normal practices,” McKeen says, adding that the AODA doesn't alter a landlord's obligations under the Human Rights Code, the Employment Standards Act or the Occupational Health and Safety Act. “All of these Acts are supposed to work together to ensure that employees are accommodated and that their workplace is appropriate and safe for their needs.” The information and communications standard: As of last year, landlords with 50 or more employees will need to make any new or refreshed website accessible; there is currently no requirement for companies to retrofit existing websites. The ministry is encouraging businesses with fewer than 50 employees to make new or refreshed websites more accessible by offering them free tools and resources. McKeen says it's wise for landlords to discuss the accessibility requirements with their website developer because they are highly technical in nature. The aim, however, is common sense since it's desirable for companies to appeal to as many potential customers as possible. Barriers to accessibility include print that is too small to read, websites that can't be accessed by people who are unable to use a mouse, or a website that doesn't support screen-reading software. McKeen says landlords, upon request, will need to provide a copy of the rental application and lease to a prospective tenant in an accessible format. Landlord and Tenant Board forms, including notices of rent increase, must be provided to existing tenants, along with notices advising tenants that an elevator will be out of service so they can make alternate arrangements. Other important information includes emergency procedures, which landlords will have to provide to guests visiting a building upon request. A landlord might also have to schedule an interpreter if a person with a hearing impairment requests it. Training employees: All landlords with 20 or more employees need to train employees on the standards that apply to them and put their accessibility plans in writing. Online training materials, tools, guides and videos are available at no charge at www.accessforward.ca. Consultants can also be hired, for a fee, to help businesses tailor their accessibility policies to their particular company. It can be a matter of adapting existing policies instead of creating new ones, McKeen says. Companies must keep a written copy of their plan and let customers know how they can locate it; keep a training log, including who they trained on which standard and when, and file a report with the ministry. The Accessibility Compliance Wizard, www.appacats.mcss.gov.on.ca/eadvisor, will help landlords determine what they need to do to comply with the AODA. McKeen says landlords should focus on meeting their obligations for the standards that are already in force with deadlines that have passed or that are imminent “and then looking forward to what needs to be done next year and in the years ahead.” Disability Statistics One in seven people (1.85 million) in Ontario has a disability. By 2036, that number will rise to one in five as the population ages. About 360,000 Ontario businesses and organizations are affected by Ontario's accessibility law. Source: Ministry of Economic Development, Employment and Infrastructure LPMAnews June 2006 Page 6 LPMAnews March 2015 Page 7 Tips for Dealing with Pothole Season When it comes to asphalt, water is the enemy With warmer weather comes a time of year not usually recognized by the general public – pothole season. Potholes are a trip hazard and they can also be hard on tenants' vehicles. Nevertheless, there are several methods of repairing the problem, depending on a property owner or manager's budget and whether a short- or longterm solution is required. Problems start when water seeps into the cracks in the asphalt. Particularly during the spring, water freezes and thaws many times. The water and ice cause asphalt to flex up and down and back and forth, weakening it. Pooling water will cause asphalt to break down prematurely. Water also causes asphalt to break down when it makes its way below the asphalt to There are several methods of repairing potholes depending on a property owner the sub-base. Water begins to erode the subor manager's budget and whether a short- or long-term solution is required. base, leaving little or no support for the asphalt. This phenomenon increases the size of the original crack and the pothole is created. Left neglected, cracks and potholes become larger and multiply. Over time, asphalt begins to deteriorate due to the regular freeze-thaw cycles and general use. Parking areas may break down prematurely when there is an insufficient sub-base supporting the asphalt. In other situations, asphalt may be used for a purpose for which it was not engineered. For example, a parking area becomes a roadway for heavy garbage trucks. The roadway will crumble under the weight of 60,000-lb. trucks travelling by on a regular basis when it was designed for much lighter parked vehicles. As a result, the asphalt will need to be replaced before its time. Property owners and managers can choose from a wide variety of solutions for repairing and replacing failing asphalt. The repair choice selected depends on safety (eliminating a trip hazard), the size of the budget and whether a short- or long-term solution is needed. Cold patch offers a quick short-term fix. A bag of cold patch can be purchased at a hardware or home improvement store. The repair can be done in winter and it resolves urgent problems, such as a pothole, quickly. However, cold patch is a temporary fix and the area often needs to be repaired again and again until a more permanent repair can be carried out. Continued next page Page 8 LPMAnews March 2015 LPMAnews June 2006Page 7 Tips for Dealing with Pothole Season (Continued) Placing hot asphalt into a pothole provides a fast, semi-permanent repair that is best performed from April to November. However, hot asphalt will fail due to water penetration. Water will seep into the seams around the repair, the cracks will expand and more potholes will form. Another similar repair involves a saw cut, remove and replace technique. This is preferable to hot asphalt alone because the damaged edges are cut, debris is removed and hot asphalt is added and then compacted. It lasts longer than hot asphalt on its own, but potholes will form along the edges of the saw cut. Saw cuts also create seams and access for water. This strategy is best suited to larger areas where there is only one cut at the perimeter as opposed to many small cuts within the area. A new technology – infrared seamless asphalt repairs – offers an excellent, permanent solution for patching and spot fixes. Water will not penetrate the seams because there are no seams. Infrared light is used to heat an area slightly larger than the damaged area. Once the asphalt becomes soft and pliable, new asphalt is added and the old and new asphalt are blended together. The edges are then pinched and compacted. Seamless repairs can be done any time of the year, but are less costly from April to November. If the asphalt is too far gone, too old or has not been maintained, the next choice is repaving. If property owners and managers are thinking ahead, before they need to deal with pothole repairs and more extensive asphalt damage, crack fill is very cost-effective, preventative maintenance. Hot rubber fills the crack and bonds to both sides of the crack, keeping water away from the sub-base, preventing erosion and sealing the asphalt. For crack fill to be most effective, cracks need to be anywhere from the diameter of a pencil to 1 ½ inches wide. The key to achieving good results is preparation. A hot air lance etches the walls of the crack and extreme heat burns off and blows away any debris such as sand, dirt or vegetation, allowing for proper adhesion. Crack fill adheres better to a rough edge. The crack fill material should be of sufficient quality to expand during the winter months and shrink during summer. The best time for performing this technique is from late April until early October. Pothole season provides an opportunity to think about how best to maintain parking lots and roadways. With proactive maintenance, property owners and managers can avoid premature asphalt failure and postpone expensive repairs. Page 8 LPMAnews March 2015 Make Personal Safety a Priority When Showing Units “Don't be afraid to be assertive,” says one London rental agent Last September, Arkansas realtor Beverly Carter went missing while showing a home. Her body was found five days later. According to The Associated Press, the man accused of her murder said she was targeted because “she was a woman who worked alone.” The case has renewed calls for agents, including rental agents, to be cautious and use diligence during open houses or private showings. “Bad things do happen, but they don't happen very often. In fact, they are pretty rare,” says Sergeant David Ellyatt of London's Community Oriented Response (COR) Unit. Diana Diezyn, a leasing agent with Sifton Properties, confirms that safety is not a big concern among her colleagues. In her 31 years of showing properties, Diezyn has had only a few disconcerting experiences. “But we do have to be cognizant of the fact that things can happen,” she adds. Leasing agents shouldn’t drive clients Both Ellyatt and Diezyn say using common sense can go a long way to to showings. staying safe on the job. Here, they offer a few practical tips to help leasing agents avoid potentially dangerous situations. Don't be a chauffeur: Early in her career Diezyn made the mistake of driving a client to a showing. His unwanted advances prompted her to stop at one of her company's buildings and knock at the superintendent's door. “It was unpleasant but not threatening,” she notes. “But I made the decision never to take anybody in my vehicle again.” Taking separate vehicles can help agents avoid situations in which they might be trapped, says Ellyatt. “Always meet at the unit,” he advises. Make initial contact in the office: Ellyatt says any first meeting should be “on your own turf,” which for most leasing agents means at their office. “If you are feeling uncomfortable, this gives you time to arrange for someone else to tour the unit with you without being impolite.” Diezyn typically speaks with clients over the phone even before their first meeting. “Usually I get an email and then I follow up with a phone call,” she says. “I ask questions about what they are looking for and I can get a good sense about what is going on.” While she occasionally agrees to meet single women or families at a unit, the majority of clients come to Diezyn's office before going on to the showing. “This way, the receptionist is also cognizant of who they are,” she notes. Double up: Diezyn does not hesitate to postpone a showing if she feels uneasy. “I cannot refuse to do a showing, but I will say: 'I can't show the unit at this moment, but I am showing it to another couple tomorrow if you'd like to come along.' That way, I make sure there are other people with me.” This strategy allows her to remain polite and professional without putting her safety at risk. Ellyatt says agents who feel something is “not quite right” could also call a building manager or maintenance person to join them. “They don't have to be in the unit with you, but they can always remain in the hall.” He cautions agents against being alone in a unit with a member of the opposite sex. “You want to protect yourself against inappropriate allegations of misconduct, as well as against assault,” he notes. Keep your office in the loop: Let someone know your daily work schedule, says Ellyatt, including where you are going and how long you expect to be away from the office. Diezyn uses a day timer and her computer calendar to log appointments. “I always include the time and place of the meeting, as well as the client's name and phone number,” she says. She also tells her office when to expect her back and advises staff members if there is a change of plans. Keep your distance: Maintaining a reactionary gap can help an agent stay out of arm's reach during a showing, says Ellyatt. It is also wise to walk behind a client so you can see him or her at all times. “I naturally maintain a larger personal space than many people,” Diezyn says. “If someone does come too close, I just ask them to move back because I am not comfortable. Being polite but honest works.” Listen to your instincts: “If you feel that things aren't right, end the showing,” says Ellyatt. Never let politeness get in the way of your personal safety. “Do you really want a tenant who you are not comfortable with?” Diezyn agrees that staying safe always comes first, but notes that showing space to relative strangers is what her job is all about. “It's a balance between your safety and their needs,” she says. “I don't think that working as a leasing agent is any less safe than just walking down the street. Stay attuned to the environment and don't be afraid to be assertive.” LPMAnews June March 2015 LPMAnews 2006 Page 9 Landlords and Site Staff: Note the Cost of Casual Gossip In a recent case, the Human Rights Tribunal of Ontario (the HRTO) awarded a woman $1,000 after she learned that her landlord made inappropriate remarks regarding the size of her, and her daughters', breasts. The remarks were made by the landlord to the building superintendent, but were overheard by a third party who later repeated them to the tenant. The tenant filed a complaint to the HRTO which ultimately resulted in the award. Under the Ontario Human Rights Code there are special provisions governing landlords and prohibiting discrimination or harassment on a number of The remarks were made by the grounds, including sex. The HRTO ruled that “…the knowledge she was being scrutinized by her landlord in a sexualized way” caused the tenant to suffer “injury landlord to the building superintendent, but were overheard to [her] dignity, feelings and self-respect.” by a third party who later repeated This case and the fine illustrate the need to be mindful about the way in them to the tenant. which you and your staff speak about your tenants. Even if you assume that the comments are made in private, insensitive and inappropriate remarks can be costly if overheard by a third party or repeated by someone you thought would maintain confidentiality. Landlords and staff should also be mindful of the potential liability of breaching the landlord's privacy policy when discussing tenants with non-staff members or when in the common areas of the residential complex. In particular, on-site staff should be reminded that having a positive relationship with tenants is important, but “gossiping” with tenants about other tenants is strictly prohibited. Gossiping about a tenant's financial problems, late rent or behavioural issues with other tenants in the building is a breach of your tenants' expectation of privacy and could lead to costly claims against the landlord (not to mention the loss of your job). Bottom line: landlords and their staff should avoid inappropriate comments and gossiping about tenants. This will avoid the risk of being named as a respondent in a human rights proceeding or a proceeding based on breach of privacy. For more information about privacy and human rights issues that affect landlords, contact Maria Mavrikkou at [email protected] or Joe Hoffer at [email protected]. Page 10 LPMAnews March 2015 Staying Safe Around Needles One London property manager was injured after cleaning out a rental unit A long-time London property manager and LPMA member thought she was doing the right thing when she set out to safely dispose of five boxes of used syringes last September. The needles had been left behind by a former tenant. What happened next would leave her shaken, frustrated and determined to help others learn how to protect themselves. After placing the closed needle boxes in a plastic bag, the property manager took them to a nearby public needle disposal bin. “It is a lot like a mailbox, but it wasn't big enough to accept containers and I didn't feel comfortable opening up the boxes to pour the needles in,” she says. A neighbourhood pharmacy was also unable to help, explaining that they accepted only returns of their own needle containers. Her final stop was the London Intercommunity Health Centre. “I didn't see a drop-off box, but I thought I could return them there,” she explains. While waiting in line, one of the boxes popped open and a needle pricked her leg. “I was very anxious and emotional. I knew this person had had multiple people in her unit. I had no idea who had used these needles or the potential risks I was facing,” she recalls. “As a property manager, I've got 15 or 16 years of experience collecting needles and I'd never been pricked One of the boxes popped open before.” and a needle pricked her leg. Distraught, she decided to return to her office, making a stop at the Unity Project for Relief of Homelessness in London for advice. Unity Project executive director Chuck Lazenby told her to go to the hospital and offered One of the boxes popped open and a to take the needles for safe disposal. needle pricked her leg. Continued next page Page LPMAnews June 2006 LPMAnews June 200511 LPMAnews March 2015 Page 88 Page Staying Safe Around Needles (Continued) Although an urgent care doctor assured the property manager that the risk of transmission was extremely low, she underwent blood tests and required a Hepatitis B booster shot. She also decided to undergo preventative HIV treatment – a course of medication that lasted 30 days. “I have two children and was told to be careful not to share toothbrushes or glasses,” she says. “So there was also the fear of putting my family at risk, which was part of the emotional side effect for me.” Grant Martin sympathizes with her ordeal. As the managing director of London Community Addiction Response Strategy (London CAReS), he is in charge of the city's 17 outdoor needle disposal bins and for the removal of needles found on public property. “It sounds like she was in an unfortunate situation, scrambling to find what community options were available to her,” he says. It’s best to wear gloves, ideally ones that are puncture resistant, when Martin confirms that public needle bins handling needles. are not designed to accept containers and says the property manager was wise not to try to reopen the containers left by the former tenant. Pharmacy owners are also entitled to decide whether or not to accept needle containers, he says. “It changes from pharmacy to pharmacy and sometimes they charge for disposal.” While London CAReS is available to remove needles found on public property, they are not responsible for the safe disposal of needles found by a landlord, business or private home owner. Martin notes that the most important thing to remember when handling sharps – used syringes with needles attached, used needles, used razor blades, lancets, or broken glass that has come into contact with blood – is never to touch them with your bare hands. “Wear gloves, ideally thick ones that are puncture resistant and use metal barbecue tongs to remove debris, move objects and to pick up any sharps found,” he says. Needles should always be placed and transported in a puncture-resistant container with a lid. If a needle injury does occur, Martin says it's important to seek immediate medical attention. “The course of treatment may vary depending on several factors, including whether the syringes were recovered from a highrisk situation and how old they might be.” Martin advises property managers to consider purchasing their own biohazard bins through a company called Stericycle (www.stericycle.ca). “An account for disposal can be established the same as if you were to have a dedicated company to do other types of junk removal when tenants move out,” he notes. Martin invites landlords interested in learning more about the safe disposal of needles to contact London CAReS at www.londoncares.ca or (519) 667-2273 to arrange an onsite training session. The property manager hopes others will learn from her experience because a needle injury could happen to anyone. “I've collected needles before and understand using a hard container and something to pick them up. What I've now learned is that when you have multiple containers you need to transport them in a bucket in case a lid comes off,” she says. “I was also working under the assumption that I could just take needles to a pharmacy because that's what I've done before at other locations. I didn't realize that the onus is on the private individual to transport and dispose of these things.” Page 12 LPMAnews March 2015 Upcoming Events April 14 LPMA Trade Show Lamplighter Inn 591 Wellington Road, London Crystal Ballroom Time: 6:00 to 8:00 pm Admission: Free. All are welcome To Attend the Trade Show: No registration required. Details: Sixty exhibitors, door prizes, complimentary food and drinks. Cost for a Table: $150 by April 1 To purchase a Table: Go to www.lpma.ca or contact the LPMA office. Spring Hope Food Drive Province-wide, hi-rise food drive Food Collected: April 28 - 6:30 to 9:00 pm Food Delivered to London Food Bank: April 29 9:00 am to 12:00 pm Contact Brenda Davidson at the LPMA office to register your buildings. May 12 Dinner & General Meeting Lamplighter Inn 591 Wellington Road, London Regency Room Dinner Sign In/Networking: 5:30 to 6:00 pm Dinner: 6:00 to 6:45 pm Cost for Dinner: $25 by May 1, $30 after May 1 To Register for Dinner: www.lpma.ca Meeting Sign In/Networking: 6:45 to 7:00 pm General Meeting: 7:00 to 8:30 pm Cost for General Meeting: No charge and no preregistration required. Speakers: Rich Danby, a real estate investor, will discuss the six principles of proactive real estate investing. Anthony Passarelli, from CMHC, will present the results of the fall rental market survey. CFAA Rental Housing Conference June 10 to 12 Westin Prince Toronto Hotel 900 York Mills Road, Toronto Topics include investment, employee management, building science and marketing. Register at www.cfaa-fcapi.org LPMAnews March 2015 LPMAnews June 2006 Page 13 Page 9 Deciding Whether to Hire a Property Manager There are many benefits to choosing a professional, experts say Many small landlords are capable of wearing several hats at once: marketing their properties, keeping their units filled with good tenants, understanding the legislation that affects landlords and coping with maintenance requests, all while holding down a full-time job. However, for those new investors who discover that the time constraints and the knowledge gap are having a negative effect on their bottom line, hiring a property manager could be a good investment in their livelihood. B.J. Santavy, director of residential operations for the Skyline Group of Companies, says the decision to hire a professional depends on the size of the property involved. “With smaller properties, they probably can manage to do it on their own on the side in addition to their full-time work. But if they purchase more properties or they purchase a larger property, it's quite likely it's more than what they thought they would be getting into.” Lack of knowledge and skills are among the first problems new landlords encounter, Santavy says. Professional development through landlord associations such as LPMA, and its Property Management 101 seminars, helps to give them a good working knowledge of the Residential Tenancies Act (RTA) so they don't leave themselves open to liability for inadvertently breaking the law. Many small landlords are capable of wearing several hats at Sarah Palmer, owner of Vantage Property Management, once. agrees. She also recommends that small landlords visit the Landlord and Tenant Board's website (www.ltb.gov.on.ca/en) to familiarize themselves with the legal requirements for landlords. It outlines the forms that landlords need to use and how they should be served. “There's a lot of information available to landlords, but they need to take the time to study it to make sure it's all done legally and correctly,” Palmer says. Finding a property manager: Landlords can find managers through word-of-mouth referrals from tradespeople; social media sites, such as LinkedIn; from other landlords through organizations including LPMA, and from their real estate lawyer, realtor or mortgage broker. “The referrals from others in the industry go a long way to pre-qualifying a property manager,” Palmer says. A full-service property manager takes care of rent collection; handling of all property maintenance; payment of property expenses; renting units; monthly financial statements and 24-hour on-call service for maintenance emergencies. Management fees for those services range from five to eight per cent of the gross rent revenue. Palmer says some managers offer only a rental service. In this case, the manager looks after marketing and filling units while the landlord collects the rent, handles expenses and maintains the property. Landlords should check a manager's references and obtain a criminal background check. As well, they should interview the manager, preferably in the company of a trusted and objective individual. When Santavy conducts an interview, she asks property managers to outline crises they've managed, such as a fire or a flood, how they've dealt with difficult tenants and what their leadership style is like. “I know if my resident managers are happy in the work they do, the tenants will be happy with the service. And so, I ask property managers how they would lead the staff to keep them engaged and happy in their jobs. That's a very important question.” If landlords decide to manage their own properties, they need solid customer-service skills since the industry is becoming more customer-service oriented, Santavy says. If tenants believe their needs aren't being met, they will go elsewhere, which results in vacancies. “A good property manager is not only going to be able to enforce the rules, but they're going to be able to provide exceptional customer service,” Santavy says. “If you hire an expert, the job is going to get done better. And property management is not something that just anybody can do.” Continued next page Page10 14 Page LPMAnews 2015 LPMAnewsMarch June 2006 Hiring a Property Manager (Continued) An experienced manager is able to properly screen prospective tenants and evaluate rental applications based on income and credit and reference checks. Palmer says a good manager should have the skills to determine if there are any inconsistencies in the information that could indicate that the applicant is a problem tenant. Ultimately, that analysis will help the landlord to “avoid poor tenant choices and very costly evictions,” she adds. Knowing the competition: A property manager should also understand marketing and the specific market in which the landlord's properties are located. “They should know what the competitors are doing. And if they don't know, they should know how to find out,” Santavy says. “That's a Landlords should expect to receive written quotations in advance big part of a property manager's job.” Minimizing a landlord's vacancy loss is another from their manager for all major costs so the landlord can budget for important element. The manager should get an apartment them. rent-ready as soon as the previous tenant vacates by having the proper people in place – painters, maintenance people and cleaners. Because they represent the landlord when they work in occupied units, they need to be professional and provide quality work. Once a landlord has hired a property manager, the landlord should cover his or her expectations with that individual before problems develop, Santavy says. For example, the property manager may carry out certain jobs, such as screening tenants, differently from what the landlord wants. “It's much, much better to deal with it at the front end instead of dealing with the fallout at the back end during the employment,” Santavy says. The importance of communication: Palmer says it's important from the outset for landlords and property managers to be clear on their goals for the property. As an investment, the property should have a positive cash flow and a reasonable rate of return. A Certified Property Manager, or one who has the equivalent experience, will focus on ensuring the property is receiving its “highest potential income and return,” Palmer says. That's particularly important in complex situations, such as multi-unit properties where the net income is the primary measure of the value of the property. If small landlords are out-of-town or out-of-country owners, they need to have a local property manager who will handle the details for them, she says. The manager should also conduct regular inspections to identify and control maintenance costs and suggest capital improvements to an aging property, such as upgrades to a kitchen or bathroom, that will help to generate more rental income and enhance the value of the property. Keeping the property in top form also helps it to compete with newer properties and prevents it from sitting vacant for long periods of time. Landlords should expect to receive written quotations in advance from their manager for all major costs so the landlord can budget for them, Palmer says. Financial statements: Most experienced managers use property management software to provide accurate monthly financial statements that include income statements and expense details. The software also allows managers to track rent collection and repairs. Palmer recommends that landlords meet with their prospective manager so that individual can show them the system for accounting, documentation and maintenance since it controls the landlord's costs and revenue. She says it's important for the manager to communicate by email, provide monthly financial statements and proof of resolution of problems, keep maintenance records, as well as offer regular written and verbal reports. Checks and balances: Palmer recommends that the landlord rely on the manager's expertise and experience and allow that person to manage the property. “In order to achieve that relationship, it's a matter of trust. The property manager has to be able to offer consistent communication and consistently deliver positive results by achieving lower vacancies, higher tenant retention and reduced overall costs.” Santavy suggests that landlords make “random, unannounced” visits to the property to ensure that property managers are doing their jobs to their satisfaction. Landlords should also call tenants and ask if they're happy with their homes and if they plan to stay for awhile and, if not, why. Making it clear to tenants that the call is customer-service related avoids any suspicion that the landlord checking up on his or her employee. Continued next page LPMAnews 2015 LPMAnewsMarch June 2006 Page 15 Page 11 Hiring a Property Manager (Continued) “You want the property manager to feel like you support them and that you're interested in their success, so you could easily undermine that by making it look like you're always checking up on them. But by the same token, you also have a big vested interest in the outcome,” she says. London lawyer Joe Hoffer advises landlords to tell the manager at the start of the employment period that he or she will be conducting periodic visits to the properties, which includes talking to tenants. “If you do that upfront, no one is going to challenge you after the fact or be suspicious about it. I think it helps to keep the property manager on their best behaviour. Any property manager worth their Lawyer Joe Hoffer says there is no such thing as a salt is not going to complain about that.” Avoiding liabilities: Hoffer says if a property manager is standard contract. acting as the landlord's agent, he or she is treated as a landlord under the RTA. However, managers need to ensure they're not encumbered by the landlord's liabilities, including being ordered to compensate tenants if they're inconvenienced because the furnace breaks down, for example. The written management agreement should have an indemnity clause to protect the property manager from such liability. Hoffer says as long as the manager hasn't violated the terms of the agreement by committing an illegal act or being negligent, the manager is entitled to be indemnified by the owner against liabilities, expenses, costs, damages or claims for personal injury or property damage. For example, if the manager is ordered to pay a tenant $1,000, then the landlord must reimburse the manager for the same amount. On the enforcement side, the manager should be authorized to retain a licensed paralegal to represent the landlord's interests at Landlord and Tenant Board proceedings. The management contract: Hoffer says there is no such thing as a standard contract and that a contract needs to be tailored to each specific situation. At the outset of the employment period, the landlord and the manager should discuss the contract, which should include the legal name of the landlord and the manager, as well as the addresses of the properties the manager is overseeing. The contract should also make clear that the manager is acting as the landlord's legal agent and has the legal capacity to bind the landlord to agreements for leases, repairs and maintenance, has the authority to collect money from tenants and to invoke collection procedures. The manager should also ensure he or she has the authority to verify that the property complies with applicable laws, such as the RTA, the fire and building codes and the property standards bylaw. Most landlords want to give those powers to their managers so that they have operational control of revenue and expenses for the property and all compliance issues, Hoffer notes. The contract should outline the maximum amounts that managers can spend on maintenance and repairs, and capital items without needing the owner's approval. Clauses will also detail the management of bank accounts and the frequency of statements so the owner can review the financial status of the property. The contract will contain guidelines, as well, about how the manager will maintain records and how he or she will disclose them to the owner. Provisions of the contract include the management fee, additional fees for such tasks as supervising tradespeople, the length of the contract – usually a minimum of one year – and how it can be terminated prior to the expiry of the time limit. The contract also needs to detail the circumstances under which the contract can be terminated early and the penalties that will occur. Condo issues should be addressed in the contract, too, due to the prevalence of condos being rented, Hoffer says. Clauses in the contract need to indicate what measures can be taken when there are conflicts between the interests of the condo owners and the interests of the condo corporation. The property manager also needs to warrant that the operations they oversee comply with the corporation's declaration, bylaws and rules. Hoffer advises landlords to review the financial statements the manager is providing, visit their property, make sure that the work that should be done is being done, and interview tenants. Although it's a positive sign if managers are LPMA members and have experience, it's just one element in prequalifying them. “You really want to do some reference checks,” Hoffer says. “LPMA members have access to the training and the education that's provided through LPMA, but it doesn't mean that they attend the meetings and implement the best practices that LPMA encourages among its members. There are many exceptions.” LPMAnews 2006 LPMAnews June March 2015 Page Page12 16 LPMAnews LPMAnews is a quarterly publication of the London Property Management Association. All advertising enquiries should be directed to the LPMA office at (519) 672-6999. Opinions expressed in articles are those of the authors and do not necessarily reflect the views and opinions of the LPMA board or management. LPMA accepts no liability for information contained herein. Any comments about LPMAnews or requests to submit articles may be made by email to [email protected]. LPMA Contact Information 460 Berkshire Drive, Unit 102 London, Ontario N6J 3S1 Phone (519) 672-6999*Fax (519) 672-6462 Email: [email protected] Office Hours - Monday to Friday, 8:30 am to 12:30 pm Administrator - Brenda Davidson President - Emma Sims 1st Vice President - Shirley Criger 2nd Vice President - Lisa Smith Past President - B.J. Santavy Chair, Communications Committee - Bonnie Hoy Chair, Education Committee - Sean McNally Chair, Finance & Administration - Bill MacGillivray Chair, Golf - Brenda Trineer Chair, Lease - Shannon Kiekens Chair, Marketing - Bonnie Hoy Chair, Municipal Affairs - Emma Sims Chair, Nominations & Elections - B.J. Santavy Chair, Social Committee - Shirley Criger Chair, Special Projects Committee - Brenda Trineer Directors at Large: Jim Lovell, Jody McKee, Kim Walker, Laura Smith, Murray Black, Peter Neil, Shane Haskell. www.lpma.ca Advertise in LPMAnews Advertising in LPMAnews is an effective and inexpensive way to promote your business to the property management sector. LPMAnews is published quarterly as an online version March, June, September and December. The newsletter is posted to the LPMA website and a link is sent to all LPMA members. Order and prepay for ads in four consecutive issues (one year) and receive a discount. The cost for a 1/4 page ad is only $140 per issue and ½ page ads are $300 per issue. For more information, contact the LPMA office at [email protected] or visit www.lpma.ca. Welcome New Members Andrew Bowlden, Krista Charbonneau, Edison Engineers Inc. 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