Ian Bickis · The Canadian Press - Mar 30, 2020
Major landlords promise flexibility as COVID-19 eats into tenants' ability to pay rent
Major REITS say they are trying to help, but 80% of rental stock owned by smaller players
Some of Canada's biggest residential landlords say they're committed to working with tenants who have lost their job because of the novel coronavirus pandemic.
The signals come as efforts to contain the outbreak have led to huge business disruptions and surging unemployment that have made many Canadian worried about how they will pay next month's rent.
The speed of the shutdown in many areas of the economy has meant many people will likely be short on next month's rent, especially since government programs meant to help those who have lost their job won't start paying out until April.
The unprecedented times have led some tenants to call for an all-out rent strike, but major rental companies are urging those who are able to pay their rent to do so, while offering assistance to those who find themselves in need.
"If anybody's lost their job, we are there to support them, and there to work with them through the crisis," said Mark Kenney, CEO of Canadian Apartment Properties Real Estate Investment Trust.
"We are violently against evicting people that find themselves in a place of distress right now."
The company, which manages more than 65,000 residential rentals across Canada as well as in Ireland and the Netherlands, says tenants who need to should get in contact with their property manager to explain their situation, offer to pay what they can and discuss ways they might repay the rest over time.
Other major rental companies including Northview Apartment REIT, Greenwin Corp., MetCap Living, and Boardwalk REIT have also issued notices to tenants, asking them to reach out if they are in financial distress and have committed to various degrees of support.
"Right now, our message to our communities is that Greenwin is still here for them. We are committed to working with our residents as much as possible during this difficult time," said Greenwin Corp. CEO Kris Boyce in a statement.
Given the case-by-case nature of these appeals, it's not yet clear just how accomodative the companies will be. Landords are also limited on what immediate action they can take against tenants, since some provinces have suspended eviction tribunals during the crisis.
Kenney at Capreit says the company will be open to both deferring rent until tenants can pay, as well as rent relief in some cases.
He says, however, that he's worried about the roughly 80 per cent of landlords in Canada who are small-scale owners of units and who won't have the same flexibility.
"These are circumstances that we all have to show empathy in and understanding for. But equally, we need to keep the integrity in the system."
The call echoes what has been coming out of Canada Mortgage and Housing Corp., which has asked that people leave both rent and mortage relief to those who need it most while asking those who can to pay their bills.
Source: CBC News: https://www.cbc.ca/news/business/rents-landlord-covid-19-1.5515071
A Message from FRPO - March 27, 2020
A Message from the Federation of Rental-Housing Providers of Ontario
TORONTO, March 27, 2020 /CNW/ - Our members sincerely care about our residents. We value you and your families. At this time of emergency, especially, we want you to be safe and secure in your homes. We know that many residents have had their incomes disrupted by the COVID-19 emergency. For some, it may be challenging to pay rent on April 1, 2020.
To take some of the stress out of the situation, we have the following advice on what to do if you cannot pay your rent due to the COVID-19 emergency.
- Reach out to your property manager by phone or online (to respect physical distancing).
- Explain the situation.
- Offer to pay what you can, if possible.
- Ask about government programs you might qualify for, and for the remainder, discuss a plan for how you could repay over time.
Remember, it is important to please pay your rent if you can. To keep buildings operating, clean, and safe, we need to pay our mortgages, operating costs and employees too.
We understand the situation is unpredictable. Some financial help is already on the way, and all levels of government have already taken steps to help maintain incomes or reduce costs:
- The Government of Canada has introduced the Canada Emergency Response Benefit which provides $2,000 a month for up to 4 months to individuals who have lost their income as a result of COVID-19. The federal government is also providing a 75% wage subsidy for small and medium-sized businesses so they can keep people employed.
- The Government of Ontario has set aside $148 million for assistance through Municipal Service Managers, which will use the Canada-Ontario Housing Agreement to direct more resources to tenants. The Province has also committed additional financial relief for low-income seniors, families with children and individuals with student loans.
- Some municipalities have offered grace periods for municipal payments such as property taxes, water and other utilities, and our members commit to take that into account in making arrangements and calculating arrears.
We are hopeful that these measures will help benefit our residents, but they may take time to reach those in need. We understand. We urge you to keep the lines of communication open with your property manager.
ABOUT FRPO
The Federation of Rental-Housing Providers of Ontario (FRPO) is the province's leading advocate for quality rental housing. FRPO represents over 2,200 rental housing providers who supply and manage homes for over 350,000 resident households across Ontario.
SOURCE Federation of Rental-Housing Providers of Ontario
For further information: Tony Irwin, President and CEO, Phone: 416-385-1100 x20, Email: tirwin@frpo.org
Update - March 26, 2020
Rent with us Remotely
If you are interested in rental opportunities, our Leasing Specialists remain available via telephone, live chat and email.
We also have virtual tours for most of our buildings. Check out our apartment videos, photos, floor plans of available units and pricing. Through your mobile device, computer or tablet we have what you need to find your next apartment.
You can even start the application process online! Choose your building, available unit and click on Apply Now.
Statement from the Office of the CEO - March 20, 2020
Support for Residents
During CoViD-19
Dear Residents,
These are unprecedented times and as responsible residential property owners and managers, we want to support our residents with important information and resources.
We want to make sure residents are aware of measures the federal government has put in place to support residents who may be suffering financial hardship related to job loss, additional burdens caring for family, or illness due to COVID-19.
Here are some resources you may be eligible for:
Employment Insurance
Emergency Care Benefit
- Visit Canada Revenue Agency website:
https://www.canada.ca/en/revenue-agency/services/e-services/e-services-individuals/account-individuals.html
- Intended for those who don’t qualify for EI, can’t go to work, and don’t have paid sick leave
- Provides up to $900 every two weeks for up to 15 weeks, to those affected by COVID-19
- Who can apply:
- Workers — including self-employed — who are quarantined or sick with COVID-19
- Those staying home to take care of a family member with COVID-19 who doesn't qualify
- Parents staying home to care for children because of school closures
The Emergency Support Benefit
In addition, we wanted to let you know that we have stopped the collection of rental increases and will not issue any further rental increases during this period of crisis, commencing with the April rent payment.
Our top priority is to protect the health and safety of our residents and employees, and to continue to provide essential housing services in a healthy and safe manner. Alongside a number of like-minded rental companies, we are in contact with all levels of government and
will continue to work with them to identify additional initiatives to further support our residents.
We will continue to monitor the situation and will communicate updates to our residents as the situation progresses. In the meantime, we urge you to follow the guidance of public health officials in the coming days and weeks.
Stay well and stay safe.
Mark Kenney
President and Chief Executive Officer
Canadian Apartment Properties REIT
Statement from the Office of the CEO - March 15, 2020
Navigating through CoViD19
To Our Valued Stakeholders:
I want to provide you with an update on CAPREIT’s course of action and response to the Coronavirus Disease 2019 (“CoViD19”), particularly, the preventative measures we are taking to mitigate risk across our business.
At CAPREIT, we believe it is our responsibility to prioritize:
1. The safety and well-being of our team members; and
2. The safety and well-being of our residents and properties.
As one of Canada’s largest landlords with over 22 years of operational excellence, we have had experience and navigated through similar issues in the past, and we are leveraging this knowledge to initiate appropriate practices to help control the spread of CoViD19 to the best of our ability, including the following:
Crisis Management Team
- We have created a Crisis Management Team (“CMT”) focused specifically on closely monitoring the CoViD19 situation and related developments and providing further direction on appropriate next steps. The creation of the CMT committee was triggered as part of CAPREIT’s larger business continuity plan, and consists of the executive team, as well as subject matter experts across the organization including IT, Operations, Procurement, and Insurance and Risk. We will add to the CMT on an as-needed basis.
Staff Communication
- We are undertaking ongoing communication with our operations staff to continue to assess their needs to support residents.
- We continue to restrict in-person meetings and all non-essential travel, providing direction consistent with the public health requirements to self-isolate upon return.
- We have implemented our business continuity plan and have temporarily closed corporate and regional offices, and limited access to site offices. We are also practicing social distancing.
- We are equipped and have set up from a technology perspective a work-from-home contingency where appropriate.
- We continue to update our staff with public education on CoViD19, including up-to-date recommendations for monitoring hygiene.
Resident Communication
- We are undertaking ongoing communication with our residents to make them aware of the precautionary measures we have put in place to disinfect and monitor the cleanliness of our properties.
- We continue to update our residents with public education on CoViD19, including up-to-date recommendations for monitoring hygiene through educational posters on-site and by leveraging our online Resident Portal.
- We have open and ongoing correspondence with residents urging them to contact their public health agency to receive assistance, should they suspect that they are affected by CoViD19.
- We are refocusing maintenance and building cleaning in high traffic common areas like elevators, lobbies, laundry rooms, and other common spaces. We are also doing our best to ensure that there are sanitizers in public areas.
- We are closing non-essential public spaces, including gyms and swimming pools, to rationalize cleaning resources and minimize potential spread and exposure of the virus among our staff and residents.
Impact on Business
- We assume that the virus will have further effects on our business, however at this time we will continue to monitor the situation and make appropriate decisions based on what is best for the CAPREIT community, specifically our staff, residents, and unitholders.
With over 22 years in multi-family real estate experience, CAPREIT has taken the lessons learned from previous influenza outbreaks like SARS and H1N1 and are applying this experience across our organization. I have great deal of confidence in the CAPREIT team to deploy the necessary steps and actions to put the health and safety of our staff and residents as priority.
Today, CAPREIT’s financial position and liquidity is the strongest in its history, with significant liquidity, and the resources and flexibility to manage our way through this issue. Additionally, the investments we have made in our technology platforms will be a benefit to the REIT and our team members as we responsibly adapt to this fluid situation.
For our Unitholders, we are strong believers that the multi-family real estate sector is a highly defensive and counter-cyclical asset class that can bear broader market swings, even in comparison to other property sectors.
We appreciate your understanding as we navigate through this dynamic situation with as little disruption as possible.
Sincerely,
Mark Kenney
President & CEO
Canadian Apartment Properties REIT