ResREIT Internalizing Leasing, Property Management

TORONTO-Residential Equities Real Estate Investment Trust has decided to manage and lease its own properties. And to make it happen sooner rather than later, the locally based urban apartment REIT says it will pay its existing third party provider a $1.8-million fee to terminate its contract a year early.

Greenwin Property Management Inc., the current manager, will continue to provide back-office (accounting and administrative) services to ResREIT at a reduced annual fee of 1.3% of gross receipts for a five-year period, however; the agreement can be cancelled after nine months with 90 days’ written notice, at no cost to ResREIT.

ResREIT controls 10,890 residential units in five major Canadian cities. The company says it will be hiring the managers currently working on its portfolio and will assume direct control of all site staff including rental agents, site administrators and superintendents — the individuals that have been responsible for the day-to-day operations of its properties.