Property Management Staffing and Maintenance PDF

9 Staffing and Maintenance Learning Objectives After completing this lesson, students should be able to… Discuss the process for determining staffing needs for rental property Explain the different types of staffing options available to...

9 Staffing and Maintenance Learning Objectives After completing this lesson, students should be able to… Discuss the process for determining staffing needs for rental property Explain the different types of staffing options available to property managers List the different types of staff and their functions Contrast employees and contractors Discuss employment laws and employee termination Identify the different types of maintenance Explain the process of developing a maintenance program List the components of managed property that require maintenance Discuss the process of receiving tenant requests and keeping records of repairs Suggested Lesson Plan 1. Give students Exercise 9.1 to review the previous chapter, “Working with Tenants.” 2. Provide a brief overview of Chapter 9, “Staffing and Maintenance,” and review the learn- ing objectives for the chapter. © 2021 Rockwell Publishing  Property Management Instructor Materials 3. Present lesson content: Staffing Managed Property – Staffing needs – Staffing options – Types of staff and functions – Hiring and training – Employment laws Maintenance – Types of property maintenance – Developing a maintenance program – Components of managed property – Arranging for repairs – Maintenance and alterations between tenancies – Environmental issues – Employee safety EXERCISE 9.2 Types of maintenance EXERCISE 9.3 Documents used in a building maintenance program 4. End lesson with Chapter 9 Quiz. Chapter 9 Outline: Staffing and Maintenance 1. Staffing Managed Property A. The number of staff required by a particular property depends on the size and type of property 1. A large property may need people to handle maintenance, tenant services, security, and so on, while a smaller property may just need an on-site resident manager 2. The manager should begin by listing all the essential tasks that need to be done to keep the property functioning and how long it takes to do each task; that information determines how many full- and part-time staff are needed 3. The goal is to limit labor costs by employing as few (and as inexpensive) employees as possible while still keeping the property in optimal condi- tion B. A manager can hire staff to work on-site only at one property, itinerant staff to work at multiple properties, or independent contractors to perform tempo- rary or occasional tasks. 2  Chapter 9: Staffing and Maintenance 1. On-site staff: an on-site staff member works for a property manager on a single property 2. Multi-site staff: some property management firms may employ itinerant staffers who perform maintenance or other tasks at multiple properties 3. Contractors: persons hired to perform specific tasks rather being kept on the manger’s payroll; more expensive on an hourly basis but don’t re- quire benefits or as much administration C. Small properties often require one staff person to wear many hats, while larger properties may have multiple staff members divided into different de- partments 1. Management staff includes workers who negotiate leases, perform re- cordkeeping tasks, and interact with tenants; includes leasing agents and resident managers 2. Administrative staff often handle accounting and other administrative tasks a. Any staff members who handle money should be bonded 3. Service staff provide assistance directly to tenants or visitors; includes doormen and concierges 4. Maintenance staff handle tenant requests for maintenance and repairs, and also perform routine maintenance in common areas; includes janito- rial or cleaning crews, as well as gardeners and groundskeepers 5. Security staff are full-time workers hired by larger properties to ensure the safety of tenants and their guests; includes security guards and secu- rity camera monitors D. An effective staff depends on the property manager making good hiring deci- sions and properly training and supervising employees 1. The manager can find workers through placing help-wanted ads, relying on referrals, hiring from within, or by using employment agencies 2. The manager may need to train not just direct hires, but also staffers sup- plied by a contractor or employment agency; ongoing supervision in the form of performance reviews and additional training is also necessary 3. Employee manual: a handbook given to new hires that explains company policies on work hours and pay periods, discipline and grievance policies, and policies concerning discrimination and sexual harassment 4. The way a staff member is compensated helps determine whether he is an employee or an independent contractor a. An independent contractor is hired and paid to perform a particular task, uses her own judgment, and works with a minimum of supervi- sion b. An employee performs a variety of ongoing tasks for an employer and receives greater supervision 3  Property Management Instructor Materials c. The manager must withhold payroll taxes and pay unemployment and work- ers compensation insurance for employees d. Employees are entitled to protections under the Fair Labor Standards Act, which dictates minimum wage and overtime requirements E. Employment laws the manager must comply with include the Family and Medical Leave Act, the Fair Labor Standards Act, Title VII of the Civil Rights Act of 1964, and the Americans with Disabilities Act; the manager may also need to be aware of union rules 1. To avoid lawsuits when firing employees, the manager must not violate antidis- crimination laws, anti-retaliation laws, or collective bargaining agreements, and should thoroughly document the disciplinary and termination process II. Maintenance A. Managers usually break maintenance activities into three categories: custodial main- tenance, preventive maintenance, and corrective maintenance 1. Custodial maintenance includes tasks performed weekly, daily, or even hourly, such as cleaning restrooms; chores performed less frequently, like lawn mowing; and seasonal tasks, such as cleaning gutters 2. Preventive maintenance refers to a program of regular upkeep that helps keep equipment, furnishings, and fixtures in good shape; specialized tasks should be left to contractors 3. Corrective maintenance involves fixing broken machinery or fixtures as problems arise a. Deferred maintenance: corrective maintenance that needs to be performed but is postponed, causing a reduction in the property’s value b. Incurable depreciation: when repairs become impossible or when their cost exceeds the amount the repairs would add to the property’s value 4. Some experts consider construction as a fourth type of maintenance; it includes cosmetic upgrades and remodeling, commonly done between tenants B. To develop a maintenance program, the manager will need to research when items will need maintenance, figure out the best recordkeeping system for the property, and determine what schedules and reports need to be created 1. Preliminary research involves determining the type of maintenance needed and how often; to do this, the manager should consult maintenance staff and federal, state, and municipal regulations 2. Most managers use software to aid recordkeeping; ideally, the software should schedule and retain work orders, track tenant repair requests, pay vendors, moni- tor and pay contractors, and integrate maintenance costs into the property’s financial software 3. The manager generates two documents that are vital to the maintenance program: an inspection schedule and a maintenance schedule 4  Chapter 9: Staffing and Maintenance a. Inspection schedule: a plan for how often equipment or areas of a building need to be inspected for problems; an inspection report lists all the elements that are scheduled for inspection on a particular date b. Maintenance schedule: a set plan for the cleaning and upkeep of various parts of a building C. Components of a property that require maintenance include: grounds, driveways and walkways, parking areas, building exteriors, windows, roofs and gutters, interior pub- lic areas, HVAC systems, amenities, elevators, fire safety equipment, and pest control D. Management needs to keep maintenance records as part of the property’s records, including: repair requests, works orders and the work log, purchase orders, and an inventory control list of supplies 1. Repair requests should be in writing, either a form filled out by the tenant in per- son or online, or by the staff member receiving the request over the phone 2. Work order: a document describing what needs to be done in a maintenance project and who should do it, partly completed by the manager and partly by the worker 3. Work log: a log used to record and track work orders, including the work order number, a description of the project, the names of those who performed the work, how long it took, and how much it cost 4. Purchase order: a document used to keep track of purchases of supplies or other items, including information about the vendor, date of purchase, price, and quan- tity 5. Inventory control system: a written or computerized method of keeping track of consumption of supplies and remaining inventory E. The most serious maintenance and alterations to units are done between tenancies 1. Office and retail spaces undergo extensive work; residential units receive thor- ough cleanings at a minimum, but may also receive upgrades and repairs 2. Unit preparation checklist: a checklist used in vacancy periods between tenancies to make sure that all steps in the cleaning and refurbishment process are complet- ed; also called a make-ready report 3. The apartment manager and tenant should inspect the unit together, at move-in and move-out, and sign a document called a walk-through checklist (or move-in/ move-out inspection form) F. Maintenance may address environmental issues, both to lower costs and to keep equipment working efficiently, but also to prevent “sick building syndrome” 1. Life-cycle costing: an analysis of the long-term costs of equipment, which con- siders not only the initial cost of a new piece of equipment but also the cost to maintain it over time 5  Property Management Instructor Materials G. The Occupational Safety and Health Administration (OSHA) sets job safety stan- dards; job safety is especially important when staffers deal with dangerous machinery or chemicals EXERCISE 9.2 Types of maintenance EXERCISE 9.3 Documents used in a building maintenance program Exercises EXERCISE 9.1 Review exercise To review Chapter 8, “Working with Tenants,” have students indicate whether the fol- lowing statements are true or false. 1. Some states allow self-help evictions. 2. The just-cause eviction rule found in some areas significantly limits a manager’s right to terminate a month-to-month lease. 3. If the government condemns an apartment building, that terminates the leases of all the tenants. 4. The apartment manager turns off the heat in Tony’s apartment after Tony refuses to take down political signs in his windows; this is constructive eviction. 5. If both manager and tenant agree to end a lease early, this is called abandonment. Answers: 1. FALSE. Self-help evictions, such as changing locks on a tenant, are never legal. 2. TRUE. Just-cause laws prohibit managers from ending periodic tenancies absent a serious breach of the lease by the tenant. 3. TRUE. Condemnation terminates leases. However, in some cases tenants are entitled to compensation. 4. TRUE. Any action that effectively prohibits a tenant from reasonable enjoyment of his space is constructive eviction. 5. FALSE. Mutual agreement to end a lease early is called surrender. 6  Chapter 9: Staffing and Maintenance EXERCISE 9.2 Types of maintenance Have your students classify each of the following maintenance items as either custodial, preventive, corrective, or construction. 1. Spot roof patching to address some leaks 2. Office building bathroom cleanup 3. Upgrading the kitchen appliances in an apartment after a tenancy ends 4. Changing furnace filter at start of heating season 5. Replacing rubber drive belt in clothes dryer that stopped working 6. Replacing a door damaged during a break-in 7. Building out an interior to meet the needs of a new retail tenant 8. Lawn mowing 9. Waxing lobby floor Answers: 1. CORRECTIVE 2. CUSTODIAL 3. CONSTRUCTION 4. PREVENTIVE 5. CORRECTIVE 6. CORRECTIVE 7. CONSTRUCTION 8. CUSTODIAL 9. CUSTODIAL 7  Property Management Instructor Materials EXERCISE 9.3 Documents used in a building maintenance program For each of the items below, identify which of the following documents would contain the information: Inspection schedule Work log Repair request Work order Maintenance schedule 1. Document that includes an instruction to clean the glass lobby doors every evening. 2. Document that includes an instruction to power wash walkways every fall. 3. Email form filled out by tenant saying her dishwasher isn’t working. 4. Email form filled out by maintenance crew chief telling one of her staffers to fix the dishwasher 5. Document that includes an instruction to walk around the foundation every spring checking for cracks. 6. Document or binder containing entry made by a staff repair person handling the dishwasher repair stating what work was done, the time taken, and the cost of any parts used to make the repair. 7. Staffer notices carpets need cleaning in the fourth floor hallway and sends a form explaining the work needed to the maintenance chief. Answers: 1. MAINTENANCE SCHEDULE 2. MAINTENANCE SCHEDULE 3. REPAIR REQUEST 4. WORK ORDER 5. INSPECTION SCHEDULE 6. WORK LOG 7. REPAIR REQUEST 8  Chapter 9: Staffing and Maintenance Chapter 9 Quiz 1. What is the usual first step in determining a 5. Which of the following is not an advantage of property’s staffing needs? using an employment agency to hire a full-time a) Assign number of weekly or monthly hours permanent worker? to each type of job a) Decreases manager’s risk of liability for an b) Group tasks together into categories employee’s misconduct c) List all essential tasks needed to keep prop- b) Lower cost erty functioning c) Potential to reach higher-quality applicants d) Taking inventory of all systems and equip- d) Saves time ment on the property 6. The employee manual will likely not include: 2. A property management firm employs a land- a) discrimination and sexual harassment poli- scaper who works on the grounds for four cies different buildings that are located within a few b) in-depth description of a particular job’s miles of each other. He travels between all of duties them, usually spending several hours a day at c) policies for discipline and grievances each one. He would be an example of: d) work hours and pay periods a) contractor b) multi-site staff c) on-site staff 7. An employee (as opposed to an independent d) resident staff contractor) does all of the following, except: a) hired to perform a particular task b) receives a higher level of supervision 3. A property manager might hire a contractor to c) receives a salary or hourly wages handle: d) receives employer contributions toward a) elevator maintenance unemployment insurance and workers b) janitorial service compensation c) temporary office staff shortage d) All of the above 8. A federal law requires large employers to give unpaid time off to employees in certain cases, 4. A large apartment building, during its first few such as prolonged illness. This is the: months on the market, employs a leasing agent a) Americans With Disabilities Act as part of its team. The leasing agent would be b) Fair Labor Standards Act considered part of the: c) Family and Medical Leave Act a) administrative staff d) Title VII of the Civil Rights Act of 1964 b) maintenance staff c) management staff d) service staff 9. On a daily basis, Walter empties the garbage cans in his building’s lobby, vacuums the carpeted areas, polishes ornamental metal fit- tings, and waters the planters. This would be considered: a) cosmetic maintenance b) corrective maintenance c) custodial maintenance d) preventive maintenance 9  Property Management Instructor Materials 10. Which of the following is an example of pre- 15. Which aspect of a property needs particular at- ventive maintenance? tention during the winter in cold-weather parts a) Changing furnace filters every three months of the country? b) Cleaning the bathroom in a building’s com- a) Driveways and sidewalks mon area b) HVAC c) Fixing a broken washing machine c) Roofs and gutters d) Replacing older energy-inefficent windows d) Windows 11. A manager’s maintenance recordkeeping soft- 16. When dealing with tenants’ repair requests and ware should do all of the following, except: complaints, a manager should: a) pay vendors a) encourage tenants to fix things themselves b) track market data indicating the property’s b) implement a system for tracking requests, value such as an online form on the property’s c) track tenant repair vendors website d) itemize the equipment and supplies at a c) reimburse tenants for hiring outside repair property people on their own d) tell tenants to make requests directly to on-site maintenance workers, rather than 12. An inspection schedule would list: to management a) all building elements scheduled to be in- spected on a given date b) maintenance-related complaints from ten- 17. A manager is taking inventory and finds that he ants is nearly out of cleaning solution. He’ll need to c) when a task was performed and how long order more, using a document known as a: it took a) maintenance schedule d) when building elements are to receive b) purchase order preventive maintenance c) work log d) work order 13. Which document would let a building’s main- tenance person know in advance that the pool 18. A new tenant who uses a wheelchair would like is to be cleaned daily in season, while the lawn to install grab bars in her bathroom. All of the is to be mowed weekly? following are true, except: a) Inspection schedule a) the landlord can require the tenant to restore b) Maintenance schedule the unit to its original condition at the lease c) Work log term’s end d) Work order b) the landlord does not need to give permis- sion for her to be able to do this c) the landlord does not need to pay for this 14. Buildings that contain restaurants and other modification food-service businesses need to pay particularly d) the landlord may prohibit her from doing close attention to which form of maintenance? so a) Elevator maintenance b) Fire safety c) Groundskeeping d) Pest control 10  Chapter 9: Staffing and Maintenance 19. A unit make-ready report is used to: a) create a schedule for preventive mainte- nance work b) keep track of equipment purchases c) provide a checklist for tasks to perform between tenancies d) track expenses associated with a particular repair 20. What fibrous insulating material is often found in older buildings, which can cause lung cancer if dust or fragments are inhaled? a) Asbestos b) Lead-based paint c) Radon d) Urea formaldehyde 11  Property Management Instructor Materials Answer Key 1. c) The first step in finding staffing needs 7. a) An independent contractor is hired to is to list all essential tasks associated perform a specific task. An employee, with keeping the property running, by contrast, is hired to do a variety of and then figuring how often the tasks ongoing tasks. need to be performed and how long that takes. 8. c) The Family and Medical Leave Act requires employers to provide employ- 2. b) Multi-site staffers work at more than ees with unpaid time off under certain one property, traveling between sites circumstances. as needed. 9. c) Custodial maintenance is the routine 3. d) A manager may hire a contractor to cleaning tasks that need to be per- perform work that is done only pe- formed on a regular basis; it is also riodically and requires special skills known as janitorial maintenance or (like elevator maintenance), to handle housekeeping. regular tasks (like janitorial service) without the hassle of hiring someone 10. a) Preventive maintenance is tasks per- permanent, and to handle short-term formed on a regular basis that keep staffing vacancies. equipment and fixtures in good work- ing order, such as replacing furnace 4. c) Leasing agents are part of the manage- filters. ment staff; an on-site manager in a large building might delegate the leas- 11. b) Maintenance recordkeeping software ing tasks to them. won’t address the value of the prop- erty; that’s outside the scope of a 5. b) Using an employment agency doesn’t maintenance program. directly lower the cost for a manager; the manager will pay a one-time fee, 12. a) An inspection schedule is a list of all such as a percentage of the new hire’s the elements in a property that need to annual salary. Based on the time saved be inspected on a particular date. and the lower liability, though, it’s a decision that may well pencil out for 13. b) The maintenance schedule lists pre- the manager. ventive and custodial maintenance tasks, and how often they are to be 6. b) An employee manual is generally not performed. tailored to one particular employee, but gives the rules and policies of a workplace to all employees. 12  Chapter 9: Staffing and Maintenance 14. d) Pest control is of particular concern 19. c) The unit make-ready report, or unit to managers of buildings that contain preparation checklist, is a checklist restaurants, which, because of food for activities that need be done after a storage, tend to attract cockroaches, tenant vacates, to make the unit suit- rats, and other vermin. able for the next tenant. It may include corrective maintenance and even re- 15. a) Driveways and walkways need special modeling, in addition to cleaning and attention during the winter; snow and inspections. ice should be removed as quickly as possible, not just for the convenience 20. a) Asbestos, if it is exposed and crum- of tenants and patrons but also because bling, can be a serious health hazard. If of liability for slip-and-fall injuries. present, professionals should be hired to encapsulate or remove it. 16. b) An online system for tracking tenant repair requests will be a time-saver for managers and also may guard against potential liability. Tenants should make requests directly to management, and should not be encouraged to fix things themselves or hire their own contrac- tors. 17. b) A purchase order is a document for tracking the purchase of new supplies, including information like the name of the vendor, the purchase price, quan- tity ordered, and delivery date. 18. d) A disabled tenant may proceed without a landlord’s permission if she wants to make modifications for full use and enjoyment of the property, according to the Fair Housing Act. The landlord doesn’t need to pay for the changes, though, and can request that the tenant restore the unit after the lease ends. 13  Property Management Instructor Materials PowerPoint Thumbnails Use the following thumbnails of our PowerPoint presentation to make your lecture notes. Property Management Lesson 9: Staffing and Maintenance © 2021 Rockwell Publishing 1 Introduction This lesson discusses: ⚫ staffing managed property ⚫ maintenance © 2021 Rockwell Publishing 2 Staffing Managed Property Number of staff needed varies from property to property. ⚫ Large property: different staff to handle various tasks (maintenance, security, administration). ⚫ Small property: may only require on-site resident manager or occasional maintenance person. © 2021 Rockwell Publishing 3 14  Chapter 9: Staffing and Maintenance Staffing Managed Property To determine staffing needs, manager should begin by listing all essential tasks associated with property. Considers: ⚫ how often tasks need to be done ⚫ how long it takes to do each task © 2021 Rockwell Publishing 4 Staffing Managed Property Manager should then group tasks into categories. Based on total number of hours needed, manager can decide: ⚫ what kind of staff is needed (part-time, full-time) ⚫ if outsourcing to contractors is more efficient © 2021 Rockwell Publishing 5 Staffing Managed Property Two competing interests: ⚫ limiting labor costs by employing as few (and as inexpensive) employees as possible, versus ⚫ needing to keep property in optimal condition. Optimal condition: Condition that yields greatest operating income while maintaining property’s value. © 2021 Rockwell Publishing 6 15  Property Management Instructor Materials Staffing Managed Property Staffing options Manager can hire: ⚫ on-site staff to work at one property ⚫ itinerant staff to work at multiple properties ⚫ independent contractors to perform temporary or intermittent tasks © 2021 Rockwell Publishing 7 Staffing Options On-site On-site staff: Employed by property manager or owner to work at single property. ⚫ Common at larger properties. ⚫ Apartments: available to tenants 24/7. ⚫ Office and shopping centers: cleaning and security around the clock. ⚫ Other examples: full-time leasing agents, support staff. ⚫ Most common task is maintenance. © 2021 Rockwell Publishing 8 Staffing Options Multi-site Multi-site staff: Itinerant staffers who work for a property management firm and perform maintenance and other tasks at multiple properties. ⚫ When specialization doesn’t justify full- time employment at one property. ⚫ Example: computer tech, carpenter. © 2021 Rockwell Publishing 9 16  Chapter 9: Staffing and Maintenance Staffing Options Multi-site Multi-site staff usually employed by property management company, but may be employed by owner who has several properties nearby. ⚫ When staff work for multiple clients, management firm will charge labor costs to each owner on hourly basis. © 2021 Rockwell Publishing 10 Staffing Options Contractors Contractor: Person hired to perform specific tasks rather than being kept on manager’s or owner’s payroll. ⚫ Higher hourly rate than employee, but does not require benefits or as much administration. ⚫ Can be used only when needed. © 2021 Rockwell Publishing 11 Staffing Options Contractors Contractors commonly used for: ⚫ jobs that require special skills or licensing (elevator repairs, pest control) ⚫ work needed on seasonal basis (snow removal, lawn care) ⚫ occasional work (window washing) ⚫ temporary work (staffing shortage) © 2021 Rockwell Publishing 12 17  Property Management Instructor Materials Staffing Options Contractors Manager may also use contractors for regular jobs, such as janitorial or security services. ⚫ Simplifies manager’s job, since someone else handles hiring, training, payroll, and tax reporting. ⚫ May reduce manager’s liability if tenant or guest is harmed. © 2021 Rockwell Publishing 13 Staffing Options Contractors Manager should practice due diligence before hiring contractor: ⚫ make sure contractor is licensed, if necessary ⚫ make sure contractor is bonded and insured ⚫ check references and obtain criminal background check © 2021 Rockwell Publishing 14 Staffing Options Contractors Before soliciting bids, manager should write up exact specifications of job: ⚫ how it should be done ⚫ materials to be used ⚫ when it should be completed Always use written contract with termination provision in case work is unsatisfactory or interrupted before completion. © 2021 Rockwell Publishing 15 18  Chapter 9: Staffing and Maintenance Staffing Managed Property Types of staff and functions Types of staff include: ⚫ management ⚫ administrative ⚫ service ⚫ maintenance ⚫ security © 2021 Rockwell Publishing 16 Types of Staff and Functions Management Many larger residential properties need around-the-clock management. ⚫ Resident manager may be required by state law if building has more than a certain number of units. ⚫ State law may require property manager to have real estate license or property manager’s license. Some properties have on-site leasing agents. © 2021 Rockwell Publishing 17 Types of Staff and Functions Administrative Resident manager may handle administrative tasks in small- or mid-sized buildings. Specialized assistants may handle these tasks in larger properties. ⚫ Examples: office manager, receptionist, human resources. Staff that handle money should be bonded. © 2021 Rockwell Publishing 18 19  Property Management Instructor Materials Types of Staff and Functions Service Service staff provide direct assistance to tenants or visitors. ⚫ Examples: doormen, porters, information desk staff. ⚫ Usually found in large or high-end residential properties, or large commercial properties, such as malls or hotels. © 2021 Rockwell Publishing 19 Types of Staff and Functions Security Security staff important for large properties to keep tenants and guests safe. Includes: ⚫ guards to patrol property ⚫ front desk attendants and staff to monitor security cameras © 2021 Rockwell Publishing 20 Staffing Managed Property Hiring and training Employment agency: Outside firm that provides list of qualified candidates to manager in exchange for fee. ⚫ Saves time for manager. ⚫ May reduce manager’s liability (experienced agencies spot red flags). ⚫ One-time fee for permanent hires. ⚫ Can “lease” employees for monthly fee (agency pays salary and benefits). © 2021 Rockwell Publishing 21 20  Chapter 9: Staffing and Maintenance Hiring and Training Training After hiring new employee, manager’s next task is training. Employee manual explains company’s rules. Provides: ⚫ guidance to new hires ⚫ legal protection for owner © 2021 Rockwell Publishing 22 Hiring and Training Training Employee manual should include: ⚫ basic rules (work hours, pay periods, holidays, sick leave) ⚫ policies/procedures for discipline, firing, grievances ⚫ policies on discrimination and sexual harassment, ethical requirements ⚫ information about company (mission statement, organizational chart) © 2021 Rockwell Publishing 23 Hiring and Training Compensation Method of paying a staff member helps determine if he is employee or independent contractor for tax purposes. Independent contractor: Worker hired and paid to perform a particular task. ⚫ Own judgment on how to perform task. ⚫ Minimum of supervision. © 2021 Rockwell Publishing 24 21  Property Management Instructor Materials Hiring and Training Compensation Employee: Performs a variety of ongoing tasks for an employer. ⚫ Worker receives more supervision, follows set hours/specific instructions. ⚫ Manager must pay federal and state income tax, social security, Medicare. ⚫ Manager must contribute to workers’ compensation, unemployment insurance. ⚫ Employees = Fair Labor Standards Act. © 2021 Rockwell Publishing 25 Staffing Managed Property Employment laws Manager must comply with: ⚫ Family and Medical Leave Act ⚫ Fair Labor Standards Act ⚫ Title VII of Civil Rights Act of 1964 ⚫ Americans with Disabilities Act ⚫ union rules, if applicable © 2021 Rockwell Publishing 26 Employment Laws Firing In most states, employment is “at will” (employer or employee can terminate relationship at any time). ⚫ However, employer cannot violate laws, even in “at will” state. © 2021 Rockwell Publishing 27 22  Chapter 9: Staffing and Maintenance Employment Laws Firing To prevent claims of discrimination or other form of unlawful termination, manager should: ⚫ keep careful records in each step of process ⚫ handle all terminations consistently © 2021 Rockwell Publishing 28 Employment Laws Firing Firing resident manager: ⚫ workplace is also home, so resident manager may need more time to find new place to live ⚫ employment agreement should specify possession of unit is tied to employment © 2021 Rockwell Publishing 29 Summary Staffing Managed Property – On-site staff – Multi-site (itinerant) staff – Contractors – Employee manual – Independent contractor – Employee – Firing © 2021 Rockwell Publishing 30 23  Property Management Instructor Materials Maintenance This section will discuss: ⚫ types of maintenance ⚫ developing a maintenance program ⚫ components of managed property ⚫ arranging for repairs ⚫ maintenance and alterations between tenancies ⚫ environmental issues ⚫ employee safety © 2021 Rockwell Publishing 31 Maintenance Types of maintenance Three types of maintenance: ⚫ custodial ⚫ preventive ⚫ corrective © 2021 Rockwell Publishing 32 Types of Maintenance Custodial Custodial maintenance: Tasks performed frequently to keep building clean and orderly. ⚫ Examples: vacuuming, garbage removal, bathroom cleaning. ⚫ Also includes tasks that are less frequent, but still performed on a regular basis, such as mowing lawn or cleaning gutters. Important to tenants, as it’s very visible. © 2021 Rockwell Publishing 33 24  Chapter 9: Staffing and Maintenance Types of Maintenance Preventive Preventive maintenance: Scheduled program of tasks intended to: ⚫ keep equipment, furnishings, and fixtures functioning properly ⚫ prevent excessive wear and tear Preventive maintenance: ⚫ depends on type and size of building, age of equipment ⚫ complex tasks should be left to experts © 2021 Rockwell Publishing 34 Types of Maintenance Corrective Corrective maintenance: Fixing broken machinery or fixtures as problems arise. Deferred maintenance: Corrective maintenance that is needed, but postponed (causes a reduction in property’s value). Incurable depreciation: Cost of repair exceeds amount repair would add to property’s value. © 2021 Rockwell Publishing 35 Types of Maintenance Construction Some managers consider construction fourth type of maintenance. Construction: Remodeling or refurbishment of property. ⚫ Also called cosmetic maintenance. ⚫ Usually occurs during transition period between tenants. © 2021 Rockwell Publishing 36 25  Property Management Instructor Materials Maintenance Maintenance program Developing maintenance program involves three steps: ⚫ preliminary research ⚫ recordkeeping ⚫ schedules and reports © 2021 Rockwell Publishing 37 Maintenance Program Preliminary research During preliminary research, manager needs to list: ⚫ all aspects of property that need maintenance ⚫ types of maintenance required ⚫ how often maintenance needs to occur ⚫ how much time maintenance will take © 2021 Rockwell Publishing 38 Maintenance Program Preliminary research To obtain information, manager may: ⚫ consult on-site maintenance staff ⚫ get opinions from outside contractors ⚫ review recommended maintenance schedules in warranties, manuals Manager should also consider federal and state laws (such as health and safety regulations) and time it will take to comply. © 2021 Rockwell Publishing 39 26  Chapter 9: Staffing and Maintenance Maintenance Program Recordkeeping Many managers use property management software to organize maintenance program. At minimum, program should: ⚫ schedule and retain work orders ⚫ track tenant repair requests ⚫ pay vendors ⚫ monitor and pay contractors ⚫ integrate maintenance costs into property’s financial software © 2021 Rockwell Publishing 40 Maintenance Program Recordkeeping Ideally, software can also: ⚫ itemize equipment, supplies, materials ⚫ track information about money left in budget for repairs, purchases © 2021 Rockwell Publishing 41 Maintenance Program Schedules and reports Two types of documents are important to carrying out maintenance program: ⚫ inspection schedule ⚫ maintenance schedule © 2021 Rockwell Publishing 42 27  Property Management Instructor Materials Schedules and Reports Inspections Inspection schedule: Schedule of how often equipment or areas of building need to be inspected for problems. Inspection report: Lists all elements to be inspected on a particular date. ⚫ Inspector notes condition, repairs needed, and estimated cost. ⚫ Forms for interior common areas/exterior/tenant units or spaces. © 2021 Rockwell Publishing 43 Schedules and Reports Maintenance Maintenance schedule: Schedule of when various cleaning and upkeep tasks need to take place. Manager may use different schedules for different types of maintenance (custodial, preventive, corrective, construction). © 2021 Rockwell Publishing 44 Summary Maintenance – Preventive maintenance – Corrective maintenance – Deferred maintenance – Incurable depreciation – Construction – Inspection schedule – Maintenance schedule © 2021 Rockwell Publishing 45 28  Chapter 9: Staffing and Maintenance Maintenance (continued) Components of managed property Components of managed property that may need maintenance include: ⚫ grounds ⚫ interior public ⚫ driveways/walkways areas ⚫ parking areas ⚫ HVAC ⚫ building exteriors ⚫ amenities ⚫ windows ⚫ elevators ⚫ roofs and gutters ⚫ fire safety ⚫ pest control © 2021 Rockwell Publishing 46 Maintenance Components of managed property Grounds maintenance depends on: ⚫ climate ⚫ time of year Driveway/walkway/parking maintenance: ⚫ may need extra attention during winter ⚫ timely maintenance helps prevent injuries to tenants and guests © 2021 Rockwell Publishing 47 Maintenance Components of managed property Maintenance of building exteriors includes: ⚫ pressure-washing to clean dirt ⚫ cleaning signs and light fixtures, replacing bulbs ⚫ making repairs to brickwork, concrete walls, foundations ⚫ on-site staff can make minor repairs ⚫ consult experts for major repairs © 2021 Rockwell Publishing 48 29  Property Management Instructor Materials Maintenance Components of managed property Windows: ⚫ periodically need cleaning in residential buildings ⚫ more often in commercial buildings, public areas (perhaps daily) © 2021 Rockwell Publishing 49 Maintenance Components of managed property Roofs and gutters: ⚫ inspect roofs for damage or leaks after storms ⚫ especially flat roofs ⚫ clean gutters yearly © 2021 Rockwell Publishing 50 Maintenance Components of managed property Interior public areas: ⚫ public areas require regular cleaning ⚫ wall surfaces and carpeting should resist dirt and be easy to clean © 2021 Rockwell Publishing 51 30  Chapter 9: Staffing and Maintenance Maintenance Components of managed property HVAC: Heating, ventilation, and air conditioning system that removes stale air and introduces fresh air. ⚫ Helps regulate humidity and temperature. ⚫ Preventive maintenance is high priority. © 2021 Rockwell Publishing 52 Maintenance Components of managed property Amenities require more maintenance: ⚫ fitness areas require more cleaning than other areas ⚫ swimming pools require cleaning and adjusting chemical levels daily ⚫ local health codes may mandate water testing and sanitation guidelines ⚫ area around pool should be kept clear to prevent slip and fall injuries © 2021 Rockwell Publishing 53 Maintenance Components of managed property Elevators: ⚫ generally require repairs and preventive maintenance by licensed professionals ⚫ state laws (and sometimes local ordinances) regulate elevator maintenance and recordkeeping © 2021 Rockwell Publishing 54 31  Property Management Instructor Materials Maintenance Components of managed property Fire safety: ⚫ state and local regulations apply ⚫ may require inspections by fire department ⚫ fire safety equipment (alarms, fire extinguishers) should be inspected often ⚫ commercial/large residential may need lighted exit signs, emergency lighting © 2021 Rockwell Publishing 55 Maintenance Components of managed property Pest control: ⚫ need varies from property to property ⚫ managers usually need to contract with licensed exterminators ⚫ important issue with restaurant tenants ⚫ make sure garbage is confined to certain areas © 2021 Rockwell Publishing 56 Maintenance Arranging for repairs Arranging for repairs involves: ⚫ repair requests ⚫ work orders and work log ⚫ purchase orders ⚫ inventory control lists for supplies © 2021 Rockwell Publishing 57 32  Chapter 9: Staffing and Maintenance Arranging for Repairs Repair requests Tenant repair requests should be in writing. ⚫ If made by phone, staff should complete request form. ⚫ And/or website with online request form, email confirmation. Inform tenants that they cannot contract repairs with outside company or on-site maintenance staff directly; must go through management. © 2021 Rockwell Publishing 58 Arranging for Repairs Work orders Work order document describes: ⚫ what needs to be done for repair task ⚫ when it needs to be done ⚫ who should complete task Form is filled out by both manager and worker. © 2021 Rockwell Publishing 59 Arranging for Repairs Work logs Work orders get recorded in work logs. Gives: ⚫ order number ⚫ brief description of project ⚫ names of those who completed task ⚫ how long work took ⚫ costs © 2021 Rockwell Publishing 60 33  Property Management Instructor Materials Arranging for Repairs Ordering supplies Ordering and keeping track of supplies is important part of maintenance. Purchases are usually tracked using purchase order: Document used to keep track of purchases of supplies or other items. ⚫ Includes information such as vendor, date of purchase, price, quantity. © 2021 Rockwell Publishing 61 Arranging for Repairs Ordering supplies Manager also needs inventory control system. ⚫ May use checklist in supply room or specialized software. ⚫ Helps manager know when to order. ⚫ Reduces theft. ⚫ Using standardized materials minimizes space and money needed to keep items in stock. © 2021 Rockwell Publishing 62 Maintenance Maintenance between tenants Most serious maintenance and remodeling within units happens after tenant vacates. Residential units: ⚫ simple cleaning ⚫ to raise rents or correct deferred maintenance: painting, re-carpeting, replacing appliances and fixtures © 2021 Rockwell Publishing 63 34  Chapter 9: Staffing and Maintenance Maintenance Maintenance between tenants Unit preparation checklist: Checklist used in vacancy periods to make sure all steps in cleaning and refurbishment process are completed. Walk-through checklist: Used by manager and tenant at move-in and move-out to document unit condition. © 2021 Rockwell Publishing 64 Maintenance Environmental issues Maintenance can reduce energy costs. Installing more energy-efficient equipment or fixtures should involve cost-benefit analysis. Manager should consider: ⚫ tax benefits ⚫ cost of improvement over time (life-cycle costing) © 2021 Rockwell Publishing 65 Maintenance Environmental issues Air quality is also important. Poorly designed or maintained HVAC system can hurt air circulation, resulting in “sick building syndrome.” © 2021 Rockwell Publishing 66 35  Property Management Instructor Materials Maintenance Employee safety Manager must consider employee safety when carrying out maintenance tasks. ⚫ Occupational Safety and Health Administration (OSHA) sets job safety standards. Concerns include: ⚫ dangerous machinery ⚫ hazardous chemicals © 2021 Rockwell Publishing 67 Summary Maintenance (continued) – HVAC – Work order – Repair request – Work log – Purchase order – Inventory control system – Unit preparation checklist – Life-cycle costing © 2021 Rockwell Publishing 68 36