RTC/Minto meeting - March 2024

The CLR met with Mr. Carmelo Contarini, Regional Director for Montreal, and Mr. Eric Cao, Property Manager for Rockhill, as representatives of Minto. Mr. Contarini indicated that he had invited his superior at Minto, the Operations Director for Montreal, who would be present at future discussions.

1. Rent Increase

The discussion on rent increases was the first topic of the meeting between the CLR and Minto's administration. The CLR presented the TAL increase calculator based on figures estimated by them, in the absence of data provided by Minto. Going over them aimed to obtain necessary figures from Minto in order to prepare for an informed negotiation.

• Missing data : Carmelo Contarini acknowledged forgetting to provide the RN Form (Renseignements Nécessaires pour la fixation de loyer) with the required figures but promised that this information would be sent immediately by a Minto employee. The CLR received this form later in the day, and an analysis was prepared (learn more)
• Differences in increases in April versus May/June : Previous discussions with a representative of building B had revealed a practice of calculating rent increases differently for leases ending in April compared to those ending in May, allegedly due to the end of the fiscal year. However, this practice appears to have been unfounded, and Mr. Contarini clarified that Minto's fiscal year coincided with the calendar year, contradicting the previous explanation. The real reason for the difference was the lack of preparation of the figures in time by the billing group in Ottawa, which forced the Rockhill team to send increases based on the previous year's figures, i.e., 4.5%.
• Communication of correct information : The CLR suggested that the administration prepare answers to frequently asked questions in advance so that its representatives can respond correctly to tenants' questions.

This point highlighted the challenges of communication and process around rent increases, underlining the need for better preparation and transparency on the part of Minto's administration.

2. Alarm Inspection - Building B

The alarm inspection in building B raised several concerns among the Rockhill Tenants' Collective (CLR), who recognized the importance of these inspections while noting several aspects that could have been managed differently by Minto's administration to minimize the impact on tenants.

• **Communication and Management : Issues were raised regarding compliance with the law and manners, including the absence of permission to remove certain equipment, leaving visible holes in the dwellings. Additionally, coordination with the provider was questioned, particularly in terms of punctuality and management of unforeseen events. Choosing 10 AM to perform an integration test led to a 90-minute outage that should have been anticipated with a better understanding of the work by the Minto project manager.
• Inspection Practices : Issues were raised regarding compliance with the law and manners, including the absence of permission to remove certain equipment, leaving visible holes in the dwellings. Additionally, coordination with the provider was questioned, particularly in terms of punctuality and management of unforeseen events. Choosing 10 AM to perform an integration test led to a 90-minute outage that should have been anticipated with a better understanding of the work by the Minto project manager.
• Suggestions for Improvement : The CLR proposed several improvements, including better planning and communication ahead of inspections, adopting a registry of best practices similar to quality standards for property management, and sending an apology letter to tenants, clarifying the actions that will be taken to avoid such problems in the future.
• Minto's Reaction : Eric Cao expressed regret about the situation and acknowledged the need for better communication. It was noted that unforeseen circumstances with the provider contributed to the encountered problems. However, the CLR contested this interpretation of facts, presenting several simple practices that would have clearly improved the operation's logistics, legal aspects, and impact on tenants. (A suggestion was emailed after this meeting to organize a consultation with interested tenants before an operation affecting all tenants, to avoid obvious problems like during this inspection.)

3. Elevator Problems

The issue of elevators was discussed, highlighting a major concern for Rockhill tenants due to a history of recurring technical problems since the beginning of the last year. The CLR inquired about the potential obsolescence of the equipment and Minto's plans to address it.

• State of Elevators : Eric Cao explained that, given the age of the elevators and the difficulty in finding spare parts, management faces challenges in maintaining the proper functioning of the facilities. He revealed that Minto is currently working with two companies to address these issues and has initiated an elevator modernization project, which is at the study stage. Although it is desired to complete this project in 2024, it may extend into 2025.
• Communication and Management of Expectations : Carmelo Contarini confirmed that the modernization project had been recently validated and that the CLR was among the first to be informed of this decision. The CLR encouraged Minto to be transparent about the project's timelines, noting that the lack of communication creates disappointment among tenants, while open communication, even if it may not always be accurate, is preferable to no information.
• Previous Communications : Eric Cao mentioned that discussions and emails about the project had already been sent, but the CLR indicated that they had not received these emails concerning the modernization, and the only discussion with the CLR was about the dilapidated appearance of the elevator cabins rather than the mechanical equipment.

This discussion point highlighted the need for Minto to engage in open and ongoing dialogue with tenants about infrastructure improvements, especially regarding such crucial services as elevators. Transparency in the planning and communication of modernization projects is essential to maintain tenants' trust and manage their expectations effectively.

4. Billing Issues

The Rockhill Tenants' Collective (CLR) again raised the persistent billing problems experienced by tenants, marking a significant source of frustration and confusion.

• Recurring Errors : The CLR expressed concern about repeated billing errors, noting that despite previous discussions with Minto, new cases of incorrect billing continue to be reported by tenants to the CLR. These errors, sometimes repetitive and difficult to correct by Minto, fuel stress and anger among residents.
• Financial Implications : The CLR also highlighted the importance of accurate billing not only for tenants but also for the financial health of Minto REIT. Errors in accounting can have repercussions on the financial statements that underpin the monthly distributions to shareholders, hence the urgency for them to rectify these anomalies to avoid accusations of inaccurate or fraudulent financial information.
• Minto's Response : Carmelo Contarini expressed surprise, believing all previous cases had been resolved. This remark highlighted a discrepancy in communication and problem resolution between management and tenants, as Minto seems to focus on case-by-case issues, while the CLR demands improvement in the process and communication.
• Proposed Solutions : The CLR stressed the importance of understanding the origin of errors to prevent their recurrence. Examples given include errors related to the obsolete parking space management system, and repeated unjustified billings that fail to be corrected despite repeated tenant interventions. The CLR requests an evaluation of current procedures and systems to identify and correct flaws.
• Corrective Action : The CLR proposed creating a survey to quantify the problem's extent among tenants and encouraged Minto to adopt a more proactive approach to check and correct billing errors, emphasizing the importance of this approach for both customer satisfaction and financial accuracy. (Following this meeting, a survey was put together and executed by the CLR - results to be provided soon.)

This point highlights the challenges Minto faces in billing management and the significant impact of these problems on the relationship between tenants and the administration. Open communication, diligent verification of procedures, and quick error resolution are crucial to restoring trust and ensuring financial transparency.