Exchange Magazine Spring 2022

Winter/Spring 2022

www.reic.ca

EXCHANGE

Real Estate Institute of Canada

INSIDE

REIC News

2021 Pursuit of Excellence Awards

A Broker’s Perspective on Property Insurance

Crypto Currency and Real Estate

and more...

3 MESSAGE FROM THE REIC PRESIDENT AND CEO

4 MESSAGE FROM THE IREM PRESIDENT

5 REIC NEWS

6 2021 PURSUIT OF EXCELLENCE AWARDS

7 MEMBER SPOTLIGHT: RECOGNIZING EXCELLENCE

8 ARTICLE: RESIDENTIAL REAL ESTATE PROPERTY INSURANCE 2022

OUTLOOK: A BROKER'S PERSPECTIVE

9 PARTNER SPOTLIGHT: CCRPA

10 CANADA'S LEADING REAL ESTATE EVENTS: FORUMS AND CONFERENCES

11 ARTICLE: SECURITY MEASURES IN APARTMENT BUILDINGS

12 ARTICLE: BLOCKCHAIN, CRYPTO CURRENCY AND REAL ESTATE

15 REIC SHORT COURSE SERIES

16 BC CHAPTER 2022 ANNUAL SPONSORS

REIC Exchange, Winter/Spring 2022

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INSIDE THIS ISSUE

INSIDE THIS ISSUE

www.facebook.com/reicnational

www.twitter.com/reicnational

www.reic.ca

www.linkedin.com/company/real

-estate-institute-of-canada

REIC Exchange, Winter/Spring 2022

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MESSAGE FROM

THE REIC

PRESIDENT AND CEO

MESSAGE FROM THE REIC PRESIDENT AND CEO

Whether you are a professional working in residential or commercial real estate, one thing we think

everyone can agree on is the last two years of Covid disruption have caused us to look through

more than one lens at a time and adaptability has become our best friend for running successful

businesses.

After 66 years of running face-to-face courses, REIC pivoted to on-line delivery which was very well

received. However, REIC members expect much more than just delivering courses on-line, they

value their established networks through events, conferences and social media.

Thanks to those established REIC Networks, REIC National watched the power of connectivity

flourish through last year, with Chapter events both in-person as Covid permitted and virtually

when necessary. REIC National was able to hold a Covid-friendly Open House for its’ new office

after waiting a year! Members came out to safely celebrate together. The quintessential need for

human interaction was observed by Members and REIC Chapters coming together from all over

Canada to participate and forge the future of REIC at the Strategic Planning session held in full

compliance with Ontario Covid Guidelines at Hockley Valley resort.

Without a doubt, this professionally facilitated Strategic Planning session captured the voice, ideas

and direction our Members wanted to see ‘activated’ in 2022! With growth on the minds of many,

plans are underway as we continue to work with Colleges and Universities across Canada, to

communicate the potential opportunity to Students to pursue a career in Real Estate. Webinars

have already taken place inviting Members and Non-Members to broaden their knowledge of real

estate. Students will also be invited to join REIC as an Associate Member (more information to

come). Recognizing the need to get ‘hot topics’ and ‘trends’ to our Members, Micro-Learning

sessions will be launched to provide ‘snackable learning’ that packs an informational punch!

So that constant in the equation, is holding onto the great things that REIC Members value, building

in hybrid learning and engagement opportunities that will carry us far beyond whatever Covid

throws at us. We are not just “all in this together”, we are all stronger together!

Theresa Salsman, CPM®, ARM® Stephen Ashworth

President, REIC National CEO, REIC National

The real estate management profession relies on building strong and lasting relationships based

on trust. While this has always been true, it’s never been more true than over these past two years.

Property managers around the world were tested in ways they never imagined.

But we’ve made it through, together, by sharing what we’ve learned along the way! And by

establishing best practices for property managers everywhere who are facing the same challenges.

We’re working hard to use technology to help meet and exceed expectations, even as we face

unknown and unseen threats. Along the way, we learned we’re better together than apart, and we

made both broad and specific changes to ensure we’re fostering and encouraging inclusive

environments throughout our profession, our businesses, and the properties we manage, working

together to make the world better tomorrow than it is today.

A key goal of my IREM presidency, and my entire IREM journey, is to help ensure an exceptional

experience for our current and future members and this means listening and responding to the

needs of our Canadian Members. I believe relationships are at the core of real estate management,

and I value my relationship with you, my colleagues in Canada. It is through connections like these

that have helped me not only shape my business, but shaped me personally. My IREM network has

collectively raised the bar on what it means to be a real estate manager and elevate our profession.

By sharing our experiences and expertise, I’ve learned the importance of ongoing education and

skill-building.

Another goal for me, and IREM as a whole, is to advance accessibility of our profession to everyone.

Engaging and inviting fresh talent means encouraging an inclusive environment where everyone

feels welcome. While I like to think we’re all warm and welcoming, our DEI measures can help us

assess and face sometimes harsh realities and make the necessary changes – changes that open

us up to differing points of view and differences in experience to strengthen our profession.

Today, as a global organization, we continue to adapt and evolve on a worldwide platform, always

looking for opportunities to add value as a leader in real estate management. As an association,

profession, and network, we are limitless!

Barry G. Blanton, CPM

IREM President

Blanton Turner, AMO®

REIC Exchange, Winter/Spring 2022

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MESSAGE FROM

THE IREM

PRESIDENT

MESSAGE FROM THE IREM PRESIDENT

REIC Exchange, Winter/Spring 2022

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REIC NEWS

REIC NEWS

Promoting the CRP Designation

REIC has been working with subject matter experts over

the past several months to reinstate the education

requirements for the Certified Reserve Planner (CRP)

designation. The education program will be offered in

collaboration with the University of British Columbia,

Sauder School of Business.

Introducing

the

Associate

Membership

and

Launching the Certification in Ethical Real Estate

(CERE)

REIC is excited to introduce the Associate Membership and

the incentives it offers to help students and individuals who

are considering a career in real estate.

All designations currently offered at REIC require real

estate experience, ranging from three to five years. The

Associate Membership will be available to anyone who

wishes to be part of the community we have created.

Concurrently, we will be launching the introduction of an

entry level certification which will appeal to a wide range of

individuals within the real estate industry, but is primarily

aimed at those just getting started in the field. This new

certification aims to target students who are currently in a

real estate/property management education program

across Canada, as well as individuals who are considering a

career in real estate or property management but have no

experience. Individuals who have a real estate license and

experience in the real estate program but either do not

have the years of experience required to pursue a

designation offered by REIC or are not currently able to

invest the time for a full designation will find this

certification appealing as well.

The Associate Membership and Certification in Ethical Real

Estate will allow REIC to further its mission of espousing

ethics and professionalism in our industry. This new

offering gives our next generation of real estate

professionals

a

path

to

continuous

learning

and

improvement. While the entry level certification will be

optional

and

not

required

to

hold

an

Associate

Membership, we will be encouraging everyone to consider

obtaining it.

It is anticipated that the Associate Membership and

Certification will be launched in late February 2022. Stay

tuned

for

more

details,

and

reach

out

to

memberservices@reic.com if you have any questions.

The CRP designation is widely recognized across Canada

and allows professionals to complete reserve fund studies

and depreciation reports for condominiums, institutions,

corporations,

and

government

entities.

The

CRP

designation is specifically named as an approved credential

in various condominium legislation across Canada.

Information about the education requirements and the

process to obtain the designation is posted on our website

and can be found here: https://reic.ca/designations/crp/.

If you are interested or know someone who is interested in

earning the CRP designation, kindly send an email to

memberservices@reic.com.

REIC Exchange, Winter/Spring 2022

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2021 PURSUIT OF

EXCELLENCE AWARDS

2021 PURSUIT OF EXCELLENCE AWARDS

Congratulations to our 2021 Pursuit of Excellence Award winners. Recipients were formally

recognized during our 2021 Annual Conference, which was held virtually.

J.A. WEBER AWARD

Tahir Qureshi, FRI CRES - City-Pro Realty Inc.

REAL ESTATE MANAGEMENT MEMBER OF THE YEAR AWARD

Melissa Caron, CPM® - Old Oak Properties Inc.

W.P.J. McCARTHY PARTNER OF THE YEAR AWARD

Oxford Properties Group

YOUNG PROFESSIONAL OF THE YEAR AWARD

Jessica Greenberg, CPM® - Osgoode Properties Ltd.

DON HILL CHAPTER INITIATIVE OF THE YEAR AWARD

REIC Toronto Chapter

QUADREAL EXCELLENCE AWARD

Desiree R.C. Palechek, CPM® - Midwest Property Management

"Although it sounds cliché, I fell into Property Management like many others. After a career in

operations management, retail, laboratory, seniors living and care, I was looking for a new challenge

and an opportunity to learn and grow; I certainly found that in 2015!

I had a solid foundation in leadership, customer service, operations, and financial management

with exposure to property management. To meet the needs and expectations of residents and

ownership, however, I recognized that I would benefit by further education and professional

development specific to Residential Property Management. The Certified Property Management

designation was the clear path.

The CPM certification courses including marketing and leasing, Human resources, maintenance and

buildings operations, ethics, financing and analytics, leadership and site management was the

catalyst for my growth and professional development. With an everchanging economy, and the

pandemic adding further hurdles, the knowledge I gained was incredibly valuable and contributed

to my ability to support and direct my team successfully through challenging times.

Completing the designation has elevated my understanding and confidence as a leader in this

industry and broadened my perspective. As Property Managers, we are presented with an array of

situations and experiences daily. I believe, a foundation for performance, and the ability to deliver

exceptional results are achieved by a CPM education. In my experience, understanding the

business, making the right decisions, and doing the right thing, builds strong, long-lasting

relationships with our residents.

This industry is interesting, exciting, challenging, and truly, there has never been a day where I have

been bored. I feel privileged to play a role in our residents finding their home and choosing our

community as a place to raise their family, a home base for their career or education, and as a

place they are proud to call home.

The CPM provides the tools to improve leadership skills and outcomes. This, coupled with the

exposure to many interesting challenges, emergencies and celebrations that are the day to day of

Property Management continue to keep me engaged in this exciting industry. I will continue to

move forward with further professional development and am truly grateful for the opportunities I

have been provided."

- Desiree R.C. Palechek, CPM®

REIC Exchange, Winter/Spring 2022

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MEMBER SPOTLIGHT:

RECOGNIZING EXCELLENCE

MEMBER SPOTLIGHT: RECOGNIZING EXCELLENCE

The pandemic, an historic hard market cycle and record-

breaking global catastrophe losses have challenged the

property insurance market over the last 28 months in

many ways.

As we head into 2022, a question that has been on

everyone’s mind is how have global events impacted real

estate insurance and, what can I expect when budgeting

for insurance premiums? These are some of our thoughts

based on what we see happening in the marketplace.

How have major global events impacted residential

real estate insurance?

The Pandemic

The good news is that from a physical property

perspective, a pandemic does not cause physical property

damage so this has had no real impact on property

insurance. What we have seen at the start of the pandemic,

is most insurance companies used this opportunity to

create clarity to the absence of any property coverage by

way of endorsing policies with a “communicable disease

exclusion”. These exclusions clearly define and exclude a

communicable disease.

For commercial business owners, exposure to business

interruption continues to remain a concern. In the first

year of the pandemic, retail was amongst one of the

hardest hit segments and more likely to request relief than

office and industrial tenants. Landlords had to become

more flexible with lease negotiations, rent deferrals etc.

With gradual re-entry into physical spaces in 2021 and

2022, commercial real estate is going to see renewed

interest from investors.

Extreme Weather

This past year insurers and taxpayers have also continued

to feel the impact and financial cost of a changing climate.

Storms, floods, wildfires, earthquakes and other extreme

weather events have caused a total of $280BN in damage

and $120BN of insurable losses in 2021 according to

Munich RE, one of the largest reinsurance companies in

the world. When you do the math that is an increase of

$114BN or a shocking 69% in a span of 2 years.

These repeating catastrophic insurable events affect the

reinsurance market and eventually trickle down to impact

consumers.

Thankfully,

rate

and

deductibles

have

increased to attract new insurer support over the last 2

years, which has created stabilization.

REIC Exchange, Winter/Spring 2022

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RESIDENTIAL REAL ESTATE PROPERTY

INSURANCE 2022 OUTLOOK:

A BROKER'S PERSPECTIVE

RESIDENTIAL REAL ESTATE PROPERTY INSURANCE 2022 OUTLOOK:

A BROKER'S PERSPECTIVE

Hard Market

Insurers have faced multiple years of low investment

returns and decreasing profitability. Combined with the

pandemic and unprecedented economic uncertainty, it has

led to one of the most extraordinary hard markets cycles in

history. The only option left for insurers was to increase

rates and improve their operations in order to return to

profitability.

wow

What will affect your insurance premiums in 2022?

The answer to that question is: it depends. There are many

considerations to take into account but here are the top

five that could have an impact on your insurance in 2022.

Inflation. A shortage of labour due to the pandemic along

with material cost increases have had an impact on

replacement values which have seen an increase between

5-20% based on the leading property appraisers in the

country. The increase in replacement values causes a

direct impact on the property insurance premiums you

pay.

Location as it relates to catastrophe (CAT) events.

Earthquake, flood & wildfire are three of the main CAT

perils insurance companies review to qualify risks.

Properties in higher risk areas could see a reduction in

available insurance capacity meaning brokers will have to

look further afield to find coverage.

Construction type. Typically, there tends to be more

insurance capacity in the marketplace for fire resistive

properties than for wood frame properties due to the

exposure of fire.

Claims History. Properties that have had an unfortunate

claims history could see a reduction in available capacity

and/or increased insurance rates and deductibles.

Maintenance. When insurance companies are qualifying

risk, they look to see how the property is maintained. If you

have an older building, insurers ask will ask questions such

as when was the roof replaced, how the plumbing is

maintained etc. They key here is to open a dialogue and

understand any impacts that could affect your property.

Continued on next page ...

Written by: BFL Canada

How can working with a broker help reduce my

premiums?

A broker is a licensed insurance professional who works for

you. We review your individual insurance needs and

recommend coverage solutions that best fit. Few

understand the challenges faced in the market quite as we

do. Our knowledge and expertise combined with our

access to a wide range of insurance companies allows us

to do the shopping for you and find the best coverage

pricing on the market to bring you with savings and choice.

At BFL CANADA, we always strive to be there and provide

support to our clients. If you have any questions on

premiums, deductibles, the market, potential claims or

would like our team to discuss any real estate related

insurance topics please let us know.

35 years since founded, BFL CANADA is the only broker in

Canada that operates a national, Strata, Condo, and

Apartment Program. We have also created a Commercial

Real Estate Program with a growing national presence.

Additionally BFL also has a Rented Strata Unit Program

(RSU) and a personal lines team well equipped to handle

tenant insurance questions. Along with these in-house

programs, we have access to all major insurance markets.

REIC Exchange, Winter/Spring 2022

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PARTNER SPOTLIGHT: CANADA-CHINA REALTY PROFESSIONAL

ASSOCIATION (CCRPA)

PARTNER SPOTLIGHT:

CANADA-CHINA REALTY PROFESSIONAL

ASSOCIATION (CCRPA)

REIC has had a wonderful partnership with CCRPA since the first session in 2018. We are looking

forward to the current session 5 candidates achieving their designations this spring and look

forward to many becoming FRI members.

"For the past 4 years, Canada-China Realty Professional Association (CCRPA) already recommended

100+ top real estate professionals to REIC for the Fellow of the Real Estate Institute (“FRI”)

designation. With the highest professional and ethical standards, these FRIs strengthened real

estate industry in Chinese community and gained more trusts and respects from their clients,

peers and colleagues. Through this program and the partnership between REIC and CCRPA, we

brought real estate professionals together and enhanced their networks within the real estate

industry. We look forward to developing a more collaborative plan with REIC and continuing to

provide professional development educational programs to CCRPA members leading to more

designations."

- Steven Sun, President of Canada-China Realty Professional Association (CCRPA)

10 REIC Exchange, Winter/Spring 2022

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CANADA'S LEADING REAL ESTATE EVENTS:

FORUMS AND CONFERENCES