How has inflation affected the property management industry?
When we go to the gas station or the grocery store, it’s easy to notice that inflation is causing prices to increase, but we tend not to think about the fact that inflation affects every part of our lives. That includes investors and their repair costs. Our vendors are experiencing the same thing, as the cost of materials like paint, garbage disposals, and wood have risen.
So what can be done about it? Sadly, there’s not much I can do about inflation, no matter how much I wish I could! However, one of the ways we’re combatting it is through rental increases. Bear in mind that there’s a fine line between increasing the rent and ensuring that our tenants stay in place. We’ve been evaluating every rental to see what we could get away with in terms of increasing the rents so that it could help cover the cost of materials and repairs while also ensuring that the tenants stay.
It has been an interesting balancing act, but many tenants understand what’s going on. We’ve been able to get increases on anywhere between 100 and 250 tenant’s properties without much pushback.
Here at Guardian, we look at the big picture. We’re doing everything that we can to protect your investment and help you deal with this new economy of inflation. If you have questions or need any assistance, feel free to give us a call or send an email. We’d love to hear from you.