Why should LLs care? You resident may have already quit their job.

A new buzzword. Workers age 30-45 are resigning at a rate 20% higher YTD citing job dissatisfaction. “They did not appreciate me” “boss was demanding” “exhaustion”

40+ % plan on changing jobs.

Some are doing what we all did at that age, realizing the job was not the end all. Some are finding better jobs some starting their own businesses. Some using up savings as a “runway” to a new career or business, some while they”find themselves”.

As good managers we need to understand the thinking and mental processes of the largest group of renters.

Have you seen this spilling over into renting?

Working today is not the same as it was even 20 years ago. 24-hour access is required for the most mundane office job these days, there are no weekends and a late night at the office continues at home. Once again, the cell phone has destroyed another part of our life.

A young woman I know working two jobs, as a teacher and a waitress, could not get the restaurant to understand she was not available 40+ hours a week - some nights and some weekends only, stressing the SOME. They said, "We are short-staffed, you have to work more!" and she couldn't, so she quit. Now they have to find another person anyway. Not very good management there.

"on" sounds like a troll. Rule #1: Don't feed the trolls.

Regarding the Great Resignation: every time I think I know what the future will bring, it brings something else, or it brings the thing I thought later (or sooner) or in a different way. My crystal ball is murky.

So what do I know and how does it impact my rentals?

1) Conditions are getting riper all the time for high / hyperinflation. "But Sid, you've been bellyaching about that for 5+ years now and it hasn't happened yet." True. It hasn't happened....yet. Like an avalanche, the more snow you get on the pack, the more likely it is to crash down, and the more devastating it will be when it does. It will take a heck-of-a-lot of "sunshine" (fiscal discipline) to melt that snow pack. Anyone seeing signs of fiscal discipline anywhere in the two major parties?

2) Raw material/grocery prices are increasing. Nothing crazy yet, but some prices up 15%-20% over a year ago for basic, everyday items. Others up much higher. We should keep this in mind when determining base income qualifications.

3) Social Security is getting a 5+% COLA this year. The recipients are ecstatic at getting "Their biggest raise in decades." The kicker: SS COLAs are based on LAST YEAR'S inflation that has already eaten into the purchasing power of their current year benefits. Saving is discouraged. Constant spending is encouraged. True for everyone regardless of where the income is coming from. We should keep this in mind when decided to rent to people on "fixed income". The fixed income is not keeping up.

4) Taco Bell, McDonalds, and Wal-Mart are setting the minimum wage at around $11-$15 an hour where I live. Smaller businesses with less room to absorb the hit struggle to find workers because they cannot compete for scarce labor. They may shrink or go out of business. We should keep this in mind when renting to low-income workers at micro-businesses. There's some good news, though below....

5) Rentals continue to be hard to find, and prices continue to rise. Any "extra" money people are making is going to cost of living. My rents are going up 10% + at turnover, devouring any wage increases. There are more calls for rent control.

6) The real value of debt instruments is falling, as more dollars are available to pay them off.

Them's the facts. What will I do? Continue diligent screening. Keep rents at market rate. Everyone gets annual rent bumps. Stay on top of rents: no "working with" slow payers. Here's the good news: if they fall behind, there are jobs for anyone who is willing to work, and they are paying more than sufficient to maintain the affordable rentals I have. So the only question is will they go to work? If you like to hold paper, keep rates high and adjustable: maybe quarterly instead of annually.

Thus sayeth Sid's Crystal Ball.... murky, like I mentioned.

Brad, great post.

I agree, us LL's should care, a lot.

I read some about this yesterday. I am kind of glad to see it happen as this is something that really should have happened years ago. Employers around here don't like to pay properly. However, this solution for higher pay has drawbacks which almost defeats the purpose. Another problem is that employers don't like to give raises around here and when they do it doesn't come close to the COL increase. It is a vicious cycle.

I am seeing the effects of this with my lone rental as the one tenant that had the best career (nursing) of the two decided not to go back to work in that field due to all of the you know what. In fact, she says that she is selling things online. I am doubtful.

NE said "The Great Resignation has yet to come". I am assuming he means that this is just the beginning, and I would agree. Our problems are just getting started. It really makes me hesitant to invest in anymore SFH's right now. On the other hand, they are bringing higher rents. That said, what does the tenant pool look like now and what will it look like in the near future?

Sid makes really good points. We need to consider the higher cost of other things that our tenants purchase when looking at there affordability. Restaurants are now paying more then I made driving. Rentals being hard to find will also effect us in that it may make it harder for us to get people out or to move when asked. Is there going to be more homelessness?

I also agree in that some are finding better jobs, or at least better paying. Some are also becoming entrepreneurs. Some are just fooling around and don't care. Some are looking for UBI.

Oh, what a mess our government has created. Where will this end up. I see a lot more trouble to come.

I see it a lot online from the work from home folks. They don't want to go back to the office and say they will quit if they have to go back.

The state of Washington is firing anyone who isn't fully vaccinated. The city of Spokane lost 30% of their school bus drivers and about 36 of their fire fighters. A bunch of prison guards got fired, hospital workers got fired.

I am attempting to care for my mother who has end stage dementia. She was booted off hospice at end of June for not declining fast enough. I tried to move on to a paid service with health care aides three times a week just to have a break. No aide has lasted past the 4th visit and I am on my 5th aide since mid-July. Between aides is a 1 to 2 week period with no help. They cannot keep employees.

Changing jobs is always easy when there are lots of jobs available to go to and you have a few dollars burning a hole in your pocket. If the job demand is great and the supply low then employees have more power, until it turns around.

It will happen. It always has, always will. Recession, contraction, or investment in technology will drive down the demand and then the jobs will be harder to find. My bet in the next 12 to 24 months. Kind of like an old-time cake walk, you don't want to be the last one "finding oneself" when the music stops.

Another angle presented in many of the reports: For the past 20 years the rate of “quitting” was very low. Staying on the job was the standard. Corporate jobs were the goal.

So some are now catching up - the Slinky effect. Internet has made entrepreneurial ventures much easier.