Occupied rehabs can be tricky – there's no doubt about it. Why do so many go sideways?

I recall stepping into a rehab project, 50%. complete. Some units were "finished", yet the contractor was constantly back in units for punch items. From fixing major flaws to addressing tenant-inflicted damages. One time a worker decided to play 'gravity test' with a stone from the 10th floor!

On another project, our development team thought we had it all figured out. We would shuffle tenants between buildings, with a detailed timeline. It looked great on paper, but reality? A majorly delayed project, compensation for displaced tenants, and a broken relationship with the contractor.

There are a few key things that contractors and property management teams can do to make occupied rehabs a success:

1. Work closely with tenants: Communicate with tenants early and often and keep them updated on the progress of the renovations. Make sure they know what to expect and how to prepare for the work.
2. Minimize disruptions: Plan the renovations carefully to minimize the disruption to tenants' daily lives.
3. Hire a qualified contractor: Choose a contractor with experience in occupied rehabs. At Heights, we transform a unit in just 3 days and ensure kitchens and bathrooms remain functional daily.
4. Have a dedicated renovation manager: Assign a dedicated renovation manager to be a liaison with tenants during the project.

If you're planning an occupied rehab, it's important to structure the project to minimize tenant impact. With the right approach, they can be a resounding success and increase the velocity of property and portfolio performance.