Retaining Rent During Renovations: Proven Strategies
Keeping residents in place during upgrades is key.
Image courtesy of CAMP Facility Services
It’s estimated that it costs $4,500 per resident when a move-out occurs and it can take 12-15 months to recoup the costs of that lost occupancy. Keeping that in mind, it should be the top priority of any property manager or ownership group to keep current renters happy to stay put even when the hassle of a property renovation must occur. CAMP Facility Services CAO Rob Spencer says thoughtfully planning out how to protect renters during the project is the first priority that must be accomplished.
“Construction is disruptive and inconvenient for everyone, but we have learned over many years of doing everything from renovations to roofing, mitigation, maintenance and service, how to plan our work with renter respect as a priority. We start with a thorough needs assessment and adopt a renter-respect approach that means less concessions, and most importantly less loss of occupancy.”
Respecting the Schedule, No Matter What
Spencer says maintaining the schedule of work consistent with what has been communicated with property managers is key. “If a resident is scheduled to move into that unit, we have to ensure we meet and stay on schedule. Any delays in having the unit ready could be detrimental to the property manager and resident,” says Spencer.
“Accidents occasionally happen, we don’t always know what we are going to find or uncover when we start the work, but a company like ours is prepared with a strong subcontractor base we can call on. That way the project parameters can recover quickly and we can stick to the schedule. We find when everyone is working together and communicating effectively about the project schedule and hitting the date, concessions are often not needed.”
If a delay is inevitable, communication about the schedule change early and often is key as well. Rob Spencer says if the unexpected occurs, news should be communicated immediately to the property manager with an adjusted completion date that should be met.
Safety and Personal Protection at all Costs
A safe construction site is a clean site, free of debris, hazards, and dangerous situations.
Planning out the entrances and exits of workers, machinery and chemicals is crucial to maintaining the ability of renters to live their everyday lives as normally as possible. Paint can splash on cars; sidewalks can turn into tripping hazards from falling roof debris and scaffolding can obstruct property amenities making dynamic environments dangerous. But with careful planning ahead of time for every phase of construction, work can proceed effectively and residents will feel respected.
“Construction must also begin with an eye to the personal safety of residents. At CAMP Facility Services we do background checks on all CAMP employees. We also vet our subcontractors to make sure they are in in compliance with our client protection standards. When you bring workers to a multifamily property project site you are bringing them into people’s lives and every person’s personal safety must be as important as the project site safety.”
Keeping the Finances Flowing
When the money stops, often so does the work. Insurance and bonding logistic delays can derail a schedule faster than bad weather, says Britt Alexander CAMP Facility Services Executive VP of Operations. “Many contractors delay starts or are forced to suspend working on a project because of funding delays from insurance companies. At CAMP Facility Services we work with clients and the insurance companies on these extended timeline payment delays. CAMP has the financial strength and multiple layers of insurance to make sure our clients are taken care of during these extended settlements. This financial safety net allows us to keep our deadlines and get residents at the property back in their units and most importantly back to their regular routines.”
The best plan is always be considerate and upfront with renters. Be sure to document and retain all copies of any communications between the property managers, ownership groups, contractors and renters. By developing an equitable arrangement ahead of time, maintaining clear communications and sending regular updates it is possible to avoid concessions and potential future vacancies.
