Key Differences in Managing Multi-Unit Properties Under MLI Select Financing vs. Standard Properties

Managing multi-unit properties under CMHC’s MLI Select program presents unique challenges and opportunities compared to standard properties. With the right property management partner, these requirements can become strengths that enhance your investment. Here’s a closer look at the differences and why Berton Properties, a Calgary-based property management company, is the clear choice for investors.

1. Compliance with MLI Select Sustainability and Affordability Goals

MLI Select Difference: Properties financed under MLI Select come with sustainability or affordability requirements. Property managers must understand how to maintain compliance with these criteria to ensure the financing terms remain favorable.

Standard Properties: Traditional multi-unit properties lack these specific mandates, offering more operational flexibility.

The Berton Properties Advantage: We specialize in navigating CMHC’s regulations, keeping your property in compliance and preserving your benefits.

2. Enhanced Reporting Requirements

MLI Select Difference: Investors must provide detailed annual reports to CMHC, covering finacial reporting, energy efficiency improvements, and affordability metrics.

Standard Properties: Reporting is typically limited to owner-specific needs, making management more straightforward with zero compliance requirements, outside of mortgage payments, to keep the financing secured on the property.

The Berton Properties Advantage: Our team ensures all required data is meticulously tracked and submitted, saving you time and stress.

3. Prioritization of Energy Efficiency in Maintenance

MLI Select Difference: Properties under MLI Select require energy-efficient upgrades and ongoing monitoring to align with CMHC’s sustainability goals. Maintenance plans must focus on replacing systems with efficient alternatives and adhering to program standards.

Standard Properties: Maintenance is typically driven by general upkeep and owner priorities rather than sustainability goals.

The Berton Properties Advantage: We proactively manage energy efficiency upgrades and collaborate with trusted contractors to meet MLI Select requirements, keeping your property compliant while reducing operational costs.

4. Tenant Affordability Mandates

MLI Select Difference: A portion of units will need to be designated affordable for lower-income tenants, requiring strategic pricing and tenant selection. A sound understanding of how to increase rents inline with inflation while still maintaining their affordability designation is critical to ensure CMHC compliance while continuing to increase cashflow.

Standard Properties: Rent pricing is entirely at the owner’s discretion.

The Berton Properties Advantage: Our expert tenant screening and pricing strategies strike the perfect balance between meeting affordability requirements and maintaining strong cash flow. We conduct annual market analyses to apply fair market rents to all units, ensuring compliance while maximizing returns. For affordable units, inflationary increases are implemented in line with allowable limits to safeguard long-term profitability.

5. Transparent Fixed Pricing for Predictable Operating Costs to meet DCR Requirements

MLI Select Difference: To meet MLI Select’s debt coverage ratio (DCR) requirements, controlling operating expenses is essential. Transparent, fixed-rate property management fees help ensure that operating costs remain predictable, reducing the risk of financial surprises.

Standard Properties: Fee structures vary and are less critical to meeting specific financing criteria, there are no penalties or recourse for not meeting a certain profitability threshold.

The Berton Properties Advantage: At Berton Properties, we provide transparent, fixed-rate pricing with no hidden fees or billable hours. This predictability supports your ability to meet DCR requirements and maintain steady cash flow. Read more about pricing structure of property management companies in our linked blog post.

Why Berton Properties is Your Ideal Multi-Unit Property Manager

Managing multi-unit properties, especially those under CMHC’s MLI Select financing, demands expertise, attention to detail, and strategic planning. At Berton Properties, we excel in delivering tailored solutions that align with both investor goals and regulatory requirements.

Here’s why we’re the easy choice:

• Expertise in navigating CMHC’s MLI Select compliance.

• Transparent, fixed-rate pricing to stabilize operating costs.

• Proven track record in managing multi-unit properties across Calgary.

Conclusion:
Understanding the differences between CMHC’s MLI Select and standard multi-unit property management is essential for maximizing your investment’s potential. Berton Properties simplifies the complexities, offering expertise, transparency, and exceptional service to help investors succeed. Contact us today to understand how we can help you managing your CMHC MLI Select multi-unit property in Calgary.