The COVID-19 pandemic has uprooted our way of life, from the way we work to the way we socialize. Many of us began working from home, blending our personal and professional lives in ways we never expected. And while some of us have happily migrated back to the office as restrictions eased, others have embraced the opportunities that can come with remote work. This new way of life has also made many of us view our homes differently — recognizing a need for more space as we spend more time there — which in turn has had a major impact on the real estate market.

The shift to remote working has provided people the opportunity to migrate to less urban centres (secondary and tertiary markets) and enjoy a more affordable cost of living. This trend, more commonly known as ‘reverse urbanization,’ has changed what people look for in a home — more space, affordability — and has caught the attention of Avenue Living. Reverse urbanization is a trend that sees people place greater importance on their home space, often leaving inner-city locations to seek cheaper rents and larger living areas in secondary markets. Larger Canadian cities such as Vancouver, Toronto, and Montreal have seen thousands leave, experiencing record population losses.

Due to higher rents, living in Eastern Canadian cities and markets does not make economic sense for many. Avenue Living is seeing a trend where people are moving west to take advantage of the space the Prairie provinces offer as well as the increased affordability.

We are seeing population growth within our areas of focus — secondary and tertiary markets — and because we have been operating and performing in these markets for the past 15 years, Avenue Living is well situated to take advantage of this demographic shift.

People like flexibility, affordability, and space

Will people become full-time work-from-home employees? Will there be a balanced return-to-work program with some work from home sprinkled in? These factors ultimately play a part in where people decide to live, as does the affordability of smaller markets compared to larger centres.

Avenue Living aims to provide comfortable living spaces and affordability for our residents, and reverse urbanization has been beneficial for us. We have experienced strong occupancy from residents, with occupancy the highest it’s ever been, as our older assets tend to have larger floor plans than newer builds.

Avenue Living’s one-bedroom apartments are generally 600-650 sq. ft., whereas new builds are closer to 450 sq. ft., and our two-bedroom units can exceed 1,000 sq. ft.. The larger square footage offers greater potential for home-office setups, making our living spaces more desirable.

A trend within the real estate industry is to have buildings with lavish amenities, such as brand-new gyms and common areas. While those were formerly great selling points, they became obsolete when closed due to COVID-19, and people were confined to the smaller spaces in the new builds.

Renters are now placing a premium on more space over additional amenities.

Positive resident experience important for reverse urbanization

Now that they are home more, our residents expect a more complete experience from their property manager. They also expect open lines of communication and quick response times.

As active managers, we are proactive in finding out what our residents like and what they care about, and through prop-tech investments, we have helped drive efficiencies and streamline processes for us and our residents. We focus on operational efficiency, which helps drive retention, and optimizes length-of-stay for our residents, providing them with a better living experience.

Positive resident experiences are at the heart of Avenue Living’s operations as we work to consistently exceed expectations and create a sense of community and belonging. Gathering regular feedback from residents — at move-in, or after a maintenance request, for example — helps inform our practices and inspires us to continually improve.

For Avenue Living, reverse urbanization is a trend to watch closely. If it continues on its trajectory, we could continue seeing strong rent growth and demand for many of the regions we operate in with little competition, and our platform and business strategy has us well positioned to take further advantage of this trend.

This commentary and the information contained herein are for educational and informational purposes only and do not constitute an offer to sell, or a solicitation of an offer to buy any securities or related financial instruments. This article may contain forward-looking statements. Readers should refer to information contained on our website at www.alamstg.wpenginepowered.com for additional information regarding forward-looking statements and certain risks associated with them.

Central Alberta is one of the province’s most densely populated areas, complete with a strong and diverse workforce. Red Deer, Camrose, and Wetaskiwin are three cities that Avenue Living thinks hold a lot opportunity. With 401 doors in Wetaskiwin, 325 doors in Camrose, and 444 in Red Deer, Avenue Living continues to build our presence in this market because of its vast potential.

“Investing in Central Alberta makes sense for Avenue Living. We are creating value for both our residents and investors in Central Alberta, and seeing strong occupancy rates,” says Kal Chary, Regional Vice President, Avenue Living. With his 12+ years of experience with property and project management, and an MBA from the University of Bedfordshire in Luton, England, Kal’s diverse background and education have him well-suited for his role with Avenue Living.

Strong occupancy rates

The collective region is known for its consistently high occupancy rates. Even with high occupancy numbers, every market is unique and comes with challenges that keep Kal and his team attentive. For Kal, it’s the consistency that matters.

“For us, we ask ourselves ‘how long can we sustain this occupancy, and what can we do to increase resident satisfaction and foster a positive experience?’” Kal says Alberta has immense potential for growth for Avenue Living and for its investors.

Repositioning of Mount Rose building

For Camrose, a city with an older population, it’s our goal to support and assist older residents in their living areas. We plan to reposition the Mount Rose building in a way similar to the Westwinds complex in Lethbridge — now renamed Applewood — emulating the age-friendly renovation’s success.

“This presents a good opportunity for us to invest capex towards an age-friendly building in Camrose,” Kal says. This repositioning presents further opportunities for investors while creating a positive experience for residents.

Our continual evaluation of our assets throughout the region has led us to make strategic capital investments, helping increase not only their value, but providing a home for our residents that supports physical and social well-being, with added security and comfort.

Value-adds for residents and investors

We ensure our service levels are to our standards in each building we manage in the region. If we receive a complaint or work order, we immediately address the concern. We are both proactive and reactive in our management, and always focused on building strong relationships with residents. “Consistent engagement has helped us find areas where we can improve, and what needs to be done. We understand our customers,” Kal says.

These value-adds highlight a commitment to both our investments and our investors, demonstrating Avenue Living as a trusted asset manager.

We are thorough and detailed with where we invest. Operating in a market such as Central Alberta, we have a pulse on the market, and are able to respond quickly to future growth opportunities.

With affordable rents in desirable buildings and a high working population, we can offer a wide range of rent prices, dependent on the size of units and variety of multi-family offerings we have. With our proven market strategy and research, we can tap into markets with rents spanning from $700 to $1,300+.

Due to its stable population numbers, affordability, and consistent resident base, Central Alberta is an enticing market for us as we seek to add other buildings and investments in the region. With an incredible group of management professionals who have helped build out an efficient, vertically integrated operating platform, Avenue Living is strategically focused on the markets and areas we target, striving to drive returns for our investors.

This commentary and the information contained herein are for educational and informational purposes only and do not constitute an offer to sell, or a solicitation of an offer to buy any securities or related financial instruments. This article may contain forward-looking statements. Readers should refer to information contained on our website at www.alamstg.wpenginepowered.com for additional information regarding forward-looking statements and certain risks associated with them.

“The property management industry is resilient,” says Bernard Streeper, Senior Vice President (SVP), Northern Alberta for Avenue Living Communities.

While other industries ebb and flow with the economy, people will always need places to live, and in multi-family residential properties, there’s always a manager. But while the prospects for employment remain steady, the industry itself is undergoing a transformation. The property management industry has traditionally been a fragmented one, dominated by smaller operators who have largely learned “on the job,” as they tackle everything from viewings and lease management to maintenance and repairs.

Advances in prop-tech, more complex systems in buildings, and evolving resident expectations are all demanding a more standardized, professional approach to management.

“In the past, you might have one manager who’s looking after the entire building, and he goes to bed at eleven o’clock at night. You can see how that breaks down if someone has a problem at 11:30,” says Bernard.

High-tech equipment and prop-tech have made building systems more efficient, but also more complex. Property managers now need to develop the same knowledge facilities managers have been amassing for years. They may not have to be experts on sprinkler systems or boilers, for example, but they must understand the basics and how their function can affect resident satisfaction — and the health of the building.

On-the-Job or By-the-Books

In spite of how vital a service good property management is, the profession is still evolving in terms of certification and training. The Real Estate Institute of Canada (REIC) offers a Certified Property Manager (CPM) designation, an internationally recognized designation that “demonstrates a mastery of the analytical and leadership skills needed to enhance the short and long-term values of large real estate portfolios, including residential, commercial, condominium, industrial, institutional and mixed-use.” Our own Bernard Streeper holds this designation, having gone through the two-year program as a complement to his MBA and years of experience in the industry.

CPM designation is targeted at professionals with a variety of credentials — post-secondary education, other industry designations, or on-the-job experience. Required courses touch on everything from how best to manage a team to effective marketing and financial tools.

This designation is a way of bolstering credibility in the industry, much the way BOMA (Building Owners and Managers Association) and other organizations have done for commercial building operators and facility managers. In fact, there is a great deal of overlap now between property managers and facility managers, who both deal with complex structures and systems and are both navigating higher customer expectations.

While training and certification programs are currently few and far between, we have filled the gap by developing focused training modules, which we deliver through Avenue Living University. We’ve started using virtual reality (VR) technology to help our maintenance associates learn new skills, even from a distance (and with the physical distancing in place that’s so important right now). Ensuring our employees have proper training benefits our team as well as the residents and properties we serve.

Measuring the Outcome

“One of the things Avenue Living has done really well is figure out how we can quantify the resident experience,” says Bernard. In fact, it’s become something of a mantra at Avenue Living: David Porter, our SVP for Southern Alberta, often says, “What gets measured gets managed.”

What gets measured also provides value for investors. The data we collect allows us to maximize our investment in our properties, but also allows us to set clear benchmarks and continually improve our processes. As we consolidate what has traditionally been a fragmented industry, we bring standardization and a proven customer-service model to our multi-family assets, ensuring we operate to an industry-leading standard.

Our Call Centre and work-order resolution processes aim to address resident issues and measure satisfaction through clear, ongoing communication. Connecting with our residents helps us see where we need to refine our processes or skills to ensure we meet expectations. Our three SVPs cover a lot of territory, and it’s vital their teams have the knowledge they need to keep operations at every property running smoothly.

“SVPs and regional vice presidents are not always on-site to deal with problems. We look at what we’re measuring, and gauge it against our experience, and if something jumps out at us —that’s when we get involved.” The goal is to equip our teams with everything they need to address issues quickly and efficiently. That could mean knowing when to call a trade — and who to call — or how to work with residents to address other concerns. It also involves a proactive approach to maintenance, including regular audits to ensure systems are in good repair.

The professionalism we foster through training and culture exists at every level of our organization and starts from the moment a prospective resident reaches out to us. And it’s professionalism that’s transforming and elevating the property management industry. “It really is an industry where you can build a career,” says Bernard.

This commentary and the information contained herein are for educational and informational purposes only and do not constitute an offer to sell, or a solicitation of an offer to buy any securities or related financial instruments. This article may contain forward-looking statements. Readers should refer to information contained on our website at www.alamstg.wpenginepowered.com for additional information regarding forward-looking statements and certain risks associated with them.

In all of Avenue Living’s acquisitions, our number one goal is to make the process as seamless as possible for new residents so they have an exceptional customer experience. How we onboard a new building and how quickly we scale our operations to care for our residents and the units within our buildings is a process which we seek to continually improve.

To hear more about this process and what goes into prepping a property, we spoke with Shi Campbell, Director, Quality Assurance, Acquisitions. Shi and her team are critical members of the Avenue Living platform and support many of our service departments, including property services groups, capital projects groups, work-order coordination, quality assurance, lease audits, and occupational health and safety.

Acquiring and onboarding a new building takes a full-team approach to ensure a smooth transition for new Avenue Living residents.

“As soon as the clock starts ticking and we go conditional on a purchase, the ball is rolling. Multiple departments, stakeholders, and teams come together to complete tasks which allows us to thoroughly budget and model. Most importantly, everyone is ‘In It Together’ and has a clear understanding of the purchase strategy.

“We have a streamlined approach for every phase of a deal which ensures full support for each team to get the deal across the finish line seamlessly,” Shi says. Our meticulous acquisition strategy allowed us to successfully onboard over 1,500 units in just one week earlier this year.

Creating a positive resident experience

Once we close on a deal, our main objective is to provide a positive experience for our new residents. Our Resident Experience Managers take pride in getting to speak to each new resident to assuage any concerns and to provide a point of contact for each resident for any future needs.

Every onboarding situation is unique. Our detailed process maps out required tasks for each respective team to ensure deliverables are completed in a timely manner throughout the deal. This enables a smooth transition for each team as the property is incorporated into our portfolio.

“On the day of possession our ‘green army’ go to each unit to advise residents of the new ownership and management and are cleaning and improving on day one. We hand out welcome bags containing relevant information for residents and we talk to them to understand their prior experiences and how we can better assist if needed. We understand a change in property ownership and management can be daunting for some and it’s our responsibility to our residents to offer reassurance and to provide a positive resident experience within all Avenue Living properties,” Shi explains.

Well before we close any acquisition, a transition plan is created that can be implemented on possession. Whether we absorb the assets into a current portfolio or we are hiring for a brand-new portfolio, our Operations teams work diligently to bring staff up to speed in advance of the takeover and prepare them for what to expect. The strength of our vertically integrated platform lies in working with the right people to help us serve our investors and communities.

A positive resident experience is imperative to us as it reflects the values and principles that guide our organization.

Using a researched purchase model

As a process-driven organization, we meticulously research and prepare for each acquisition, ensuring outcomes are more predictable.

“Our purchase model — purchase strategy and budgeting forecasting —allows us to go into newly acquired buildings and address many of the ‘easy wins’ right from day one,” Shi says. Foundational improvements include conducting thorough deep cleans, tidying up landscaping, touching up paint, fixing doors/ locks and any other minor maintenance. Fixes like these are started on possession day and help immediately improve the resident experience without it being a large project for the team.

Incorporating resident feedback

Our capital investment programs enhance the resident experience — and ultimately drive retention — through value creation. This is all backed by a team that brings rich experiences from all walks of life to their interactions with our residents.

Keeping in close contact with residents is important to us; their feedback helps us find new and creative ways to continually improve our operations and offerings.

“As a collective group we connect with our residents, understand their pain points, and work together to make things better for an enjoyable Avenue Living experience,” Shi says.

This commentary and the information contained herein are for educational and informational purposes only and do not constitute an offer to sell, or a solicitation of an offer to buy, any securities or related financial instruments. This article may contain forward-looking statements. Readers should refer to information contained on our website at www.alamstg.wpenginepowered.com for additional information regarding forward-looking statements and certain risks associated with them.