Toilet Leak Detection - In REAL TIME!
The Apartment Group
The increasing cost of water, combined with the general lack of tenant mindfulness regarding excessive water usage and the difficulty in effectively monitoring water consumption are three key factors that significantly affect multi-unit residential and commercial buildings’ bottom lines. By examining these three factors we can better understand which of these variables we may actually control.
"Water pricing is up over 100% since 2005"
Water and sewage costs have risen by nearly 100% since 2005, and energy prices have almost doubled since 2003. Since history is often a reasonable predictor of the future, historical trends show the cost of utilities continuing to rise. In Canada, provincial and municipal officials set water prices, and most provinces typically levy license fees to major water users. In some cases, users may be charged a flat usage fee while others are charged based on the volume of water consumed.
Canadians, on average, are some of the highest consumers of water of all developed countries, yet, despite the steep rise in water prices over the past ten years, Canada’s price for water is among the lowest in the world. It is easily apparent that water consumers at any level have virtually no control over this cost variable.
Toilet water usage in multi-unit buildings accounts for approximately 34% of total water consumption. And with toilet leakage contributing an extra 8% - 10% on top of that, almost half of all water consumed by residential tenants comes from toilet usage. Furthermore, it is estimated that, at any given time, approximately 20-25% of all toilets in North America are experiencing leakage, which is the number one cause of water loss in multi-unit residential buildings resulting in the loss of billions of dollars in Net Operating Income (NOI) each year.
Persuading tenants to be more mindful of their attitudes and behaviours that result in excess water consumption and loss can be challenging, especially if they are not provided with financial incentives. Tenants do not typically feel a sense of ownership for their apartments, nor do they ever see their utility bills. As a result, they remain unaware of their water consumption footprint, which ultimately translates into higher building operating costs for owners.
This leaves us with the one factor that building owners have the most control over, which is monitoring and immediately addressing water consumption and loss as a result of individual unit toilet usage and leakage. The first step in taking a proactive approach to asset management is to understand that you cannot manage what you cannot measure. Without the capability to accurately measure water consumption and loss, there is no adequate and available data to manage. This is the primary reason why building owners are now recognizing the importance of real-time data capturing, and are beginning to install and implement water management devices and software designed to create smarter buildings.
The inability to measure and manage water consumption not only costs businesses from a general usage point of view, but excessive and unintended water usage also puts an added burden on our aging water infrastructure and sewage treatment facilities. As a result, these additional costs are ultimately passed on to the public by having to maintain, repair and upgrade municipal and provincial water systems.
Until recently, building owners relied on monthly utility bills to monitor monthly water consumption, however, this method of monitoring was and continues to be extremely limited in scope as toilets in individual units cannot be assessed, nor can leaks be easily identified. With toilet leak detection hardware and water management devices, it is now easy to monitor, analyze and manage each unit individually and in real-time. This ability to track, measure and manage water usage means that building owners are in a better position to optimize their buildings’ toilet water usage and take immediate corrective measures, thereby potentially saving thousands of dollars monthly.
Sensory Industry detectors (SI Toilet Sensors) not only provide timely alerts to your buildings’ designated contact person in real-time, but they provide actionable information so owners can better plan the management of their assets. This immediate detection and alert notification has proven to be both effective and efficient in managing each of your buildings’ toilets to minimize the unforeseen costs of toilet leakage. SI-Toilet Sensors are the ultimate solution to this problem potentially saving you thousands of dollars monthly, and even hundreds of thousands of dollars throughout your portfolio in net operating income.
For more information, contact WCC Water Management Services; the exclusive Canadian distributor for Sensor Industries IOT solutions for toilet leak and flood detection. www.wccltd.com
Ontario Highest Rents in Canada
The REMI Network
As the federal election inches closer, Canada’s skyrocketing rental rates continue to be a hot button issue, with recent data from rentals.ca underscoring the need for more balance within the housing market.
According to the latest National Rent Report, the average monthly rent for a one-bedroom home is down month over month in Toronto but still the highest in Canada, while a growing Ottawa suburb, Kanata, takes the top spot for highest rent for a two-bedroom at almost $3,000 a month.
Average monthly rent for a one-bedroom home in Toronto in September is $2,304, down from $2,330 in August, while a two-bedroom goes for $2,908. Average monthly rent for a two-bedroom for the hi-tech centre Kanata hit $2,998, while a one-bedroom goes for $2,169.
The average Canadian property was listed for $1,954 per month in September, an increase of 2.1 per cent compared to August. The national rental rate in September just topped the previous high-water mark for the year of $1,953 in June, according to Rentals.ca data.
On a provincial level, Ontario had the highest rental rates in September, with landlords seeking $2,334 per month on average (all property types), an increase of 0.5 per cent from August ($2,321).
As the graphic below indicates, a studio unit in Ontario is more expensive to rent than a three-bedroom home in Alberta, Manitoba and Saskatchewan.
The median rent was the same or higher in Q3-2019 versus Q2-2019 in most of the major municipalities on the east side of Canada, while many geographic areas on the west side of the country, including Vancouver, Calgary, Edmonton, Saskatoon, Regina and Red Deer all experienced declines.
“Housing affordability continues to be a hot button issue with voters going into the federal election,” said Ben Myers, president of Bullpen Research & Consulting. “And potential policy changes that would make it easier for first time-buyers to purchase a home may take pressure off the rental market, which continues to rise nationally, despite the market softness in the prairie provinces.”
The National Rent Report charts and analyzes national, provincial and municipal monthly and quarterly rental rates and market trends across all listings on Rentals.ca for Canada.
Building Permits DOWN
The total value of building permits issued by Canadian municipalities decreased 6.5% to $8.3 billion in September, largely due to declines in the residential sector. Gains were reported in four provinces, with the largest increase in Alberta (+7.2% to $1.0 billion). The largest decline was in Quebec (-20.5% to $1.5 billion), mostly due to a drop in the value of permits for multi-family dwellings.
The value of residential building permits was down 10.7% to $5.1 billion in September. The value of permits issued for multi-family dwellings fell 12.1% to $2.9 billion, with declines in eight provinces, while Nova Scotia and Alberta reported the sole increases.
The value of permits for single-family dwellings decreased 8.7% to $2.2 billion nationally. This decline was largely due to a decrease in Ontario (-$196 million), following strong growth in August.
Municipalities issued $25.7 billion of permits in the third quarter, down 1.2% from the previous quarter. The value of permits was down in four provinces in the third quarter compared with the second quarter. The largest decrease was in British Columbia (-17.0% to $4.7 billion), following strong gains in the second quarter.
Despite mixed results across the country, Ontario was up 6.1% to a record quarterly value of $10.7 billion, largely due to the value of multi-family permits.
The total value of permits issued in the first three quarters of 2019 was 2.2% (or $1.7 billion) higher than the same period in 2018. Municipalities approved the construction of 176,582 new dwellings (+0.4%). This is consistent with the 0.2% increase in housing starts reported by the Canadian Mortgage and Housing Corporation for the same period.
RECENT APARTMENT SALES
983-987 Main Street East – Hamilton – SOLD $2,350,000 / $130,555 per suite / 4.75% Cap Rate
This property was sold by The Apartment Group and comprises 18 apartment suites in east Hamitlon. The asset comprised of a three storey walk up rental building with low rents dating from the 1920's. It was fully occupied at the time of sale. The property was sold by a private owner and was not marketed. The Apartment Group represented the Buyer who is a private investor.
46 College Street, 58-64 Weber Street West – Kitchener – SOLD $9,950,000 / $134,460 per suite / 5.25% Cap Rate
This is a property located in central Kitchener and is actually two sites close to each other and a total of 3 buildings. There are a total of 74 rental suites. Most of the suites are renovated and separately metered for all utilities and tenants pay for them. This asset was fully marketed and was purchased by Effort Trust.
40 Earl Street – Toronto – SOLD $9,200,000 / $235,900 per suite / 2.75% Cap Rate
This is a mid rise rental apartment building located in the downtown core of the City of Toronto. The site comprises of 39 rental apartment suites and was constructed in 1940's. It has surface parking and the apartment rents are far below market. This asset was fully marketed and exposed. The buyer was the neighbouring owner who is a private investor.
85-95 Gamble Avenue – East York – SOLD $59,912,000 / $350,365 per suite
This asset comprised of two high rise rental apartment buildings with a total of 171 suites located in central east Toronto. The 1.19 acre site was developed with these building back in 1959. There is surface and underground parking and average suite sizes are around 685 sf. There are balconies, elevators and heating is via a hot water radiant system. The property was not marketed and was purchased by Q Residential.
3 Claxton Boulevard – York – SOLD $6,075,000 / $319,735 per suite / 2.75% Cap Rate
This is low rise rental apartment building located near the intersection of Bathurst and St. Clair. The site comprises of 19 rental apartment suites and was constructed in 1920's. It has no on site parking and the apartment rents are far below market. The property is a 5 minute walk to the subway entrance. This asset was not fully marketed and exposed. The buyer was a private investor.
THE APARTMENT GROUP
Together the team has completed over 1,000 transaction and has sold over $5 billion in apartments and development land. Put us to work for you and see the results. NO ONE has sold more buildings then your group. Experience, knowledge and professionalism will insure you get the right deal or the highest price if you are selling.
The Apartment Group is a dedicated team of professionals specializing in the sale of multi-residential investment properties. With over 40 years of combined experience, the team brings together their strengths including strong negotiation and sales skills along with highly technical market analysis and appraisal methods.
We are a boutique Brokerage but have the capabilities of the larger houses without the overhead. We have: an internal database of over 10,500 active apartment and land Buyers; a list of all apartment building owners in the Greater Toronto Area; our web site gets over 50,000 hits a month; we highlight properties for sale through our newsletter which reaches 10,000 investors monthly.
President & Owner,
LORENZO DIGIANFELICE, AACI
Broker of Record, Owner