THE LABOR SHORTAGE AND ITS EFFECT ON RENTAL MANAGEMENT
Property managers rely heavily on their “go-to” contractors to complete necessary work on homes during vacancy as well as when the property is occupied. Many of these co ntractors give special priority to work orders from management companies due to the high volume of work they receive from those sources. Time is money during a vacancy and much of the work needed on a property is high priority.
There are many reasons for the current labor shortage and why people aren't returning to work. A few examples are: expected stimulus funds, government payouts including rent payments, early retirements, unemployment, career changes, remote working, company layoffs, childcare, business closers and many more. The contractors we use and rely on to complete projects before properties can be rented are having a hard time finding people to do the work. In fact, at least 35% of contractors are declining work because they are overbooked. Time is money when homes are vacant.
So, property management companies have had to adjust the way they turn homes during a vacancy or get maintenance requests completed in a timely manner for current tenants.
I've found it helpful to explain to owners and tenants that “non-essential” services may have longer wait times. It's helpful for contractors to be informed regarding the urgency level of the job. For example, if the house has more than one bathroom and one of the toilets is inoperable then that project might be prioritized as non-urgent, allowing the contractor more time to schedule. On the other hand if the heater is not working on a freezing day, that would be considered urgent and would need immediate attention. Most repairs or upgrades are handled when the property is vacant. When new tenants are ready to move in you can assure them that you have repairs scheduled and are waiting for the contractor. Oftentimes people respect that and are happy to wait.
Communication is key. As we learn to prioritize the work that needs to be done, staying in contact with tenants and assuring them that the work is scheduled will reduce the feeling of being ignored and help everyone understand and work with the situation more successfully.
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