{"id":124457,"date":"2020-04-14T15:10:39","date_gmt":"2020-04-14T21:10:39","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=124457"},"modified":"2021-03-16T14:59:54","modified_gmt":"2021-03-16T20:59:54","slug":"landlord-emergency-preparedness-101","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/landlord-emergency-preparedness-101","title":{"rendered":"Landlord Emergency Preparedness 101: What Real Estate Investors Should Do Before Disaster Strikes"},"content":{"rendered":"

Landlording during an emergency like coronavirus (or any natural disaster) can be a scary and nerve-wracking experience. You worry about you and your family, as well as your tenants\u2019 safety and well-being. And you\u2019re also concerned about your real estate investment business.<\/p>\n

Will your property be okay? What resources are available if you need to repair and rebuild? How long will you go without rental income? Having an emergency plan can help in advance\u2014but if you\u2019re caught by surprise, ease your panic by knowing these simple strategies and solutions. You will come out stronger on the other side.<\/p>\n

Trust me. I know.<\/p>\n

Being a landlord in Houston, Texas, I have endured my fair share of natural disasters. On day one of Hurricane Ike, our properties lost more than 20 roofs. Rain poured into the residences. My team had to stop the emergency, deal with damaged personal property, keep the homes safe and habitable, and, finally, coordinate roofers to fix, repair, patch, or at least tarp the roofs. Not to mention dealing with the insurance company, which can be a monumental task, causing stress levels to go through the roof\u2014no pun intended.<\/p>\n

The Basic Elements of Landlording During an Emergency<\/h2>\n

I\u2019m both a pilot and a real estate investor\u2014and during emergencies, I find my two careers have a surprising amount in common. My pilot\u2019s training is directly relevant to landlording during an emergency. At its core: When confronting a crisis, take a breath.<\/strong> Doing so reduces your stress level and gives your mind a moment to process what\u2019s happening.<\/p>\n

Next, designate who\u2019s in charge of the situation and delegate responsibilities<\/strong>. This distinction is essential if you have business partners. But even if you\u2019re flying solo, you may have tenants.<\/p>\n

First, they need to know you\u2019re in control. Second, there may be tasks you need them to complete\u2014such as boarding up windows before a hurricane. Identify who\u2019s in charge, delegate responsibilities, and understand the tasks you need to complete.<\/p>\n

To do so, specify and define the problems you\u2019re facing<\/strong>. Tackle each challenge one-by-one, focusing on the solution, not the problem. Dwelling on the issue only increases your anxiety, and it doesn\u2019t remedy the predicament. Instead, put your energy into overcoming the obstacle.<\/p>\n

Throughout the process, over-communicate with everyone involved<\/strong>. In an airplane, that\u2019s your co-pilot, crew, and air traffic control. In real estate investment, there\u2019s a long list of people with whom you should communicate, such as lenders, property managers, and business partners. You also may need to connect with government officials, first responders, insurance agents, and local authorities.<\/p>\n

Handling a crisis as a pilot requires planning. The same is true of landlording: You\u2019re responsible for ensuring your tenants remain safe, protecting your property, and knowing what\u2019s expected of you if disaster strikes. That\u2019s where an emergency management plan comes in.<\/p>\n

Why Landlords Need an Emergency Management Plan<\/h2>\n

The best time to plan for an emergency is before one occurs.<\/p>\n

\"Paper<\/p>\n

Without a plan, your property, finances, and stress level may suffer greater damage. A natural disaster, like a hurricane, could cause you to lose essential documents needed to get your investment business back up and running. And, most importantly, you or your tenant may suffer personal harm or injury. It\u2019s too risky not<\/em> to organize for landlording during an emergency. And as a business owner, it can be irresponsible for you not to pre-think these possible challenges before they happen.<\/p>\n

During an emergency is not the time to create a plan.<\/p>\n

If you\u2019ve hired a property management company, ask them if they have an emergency management plan. If so, ensure they\u2019ve provided that information to your tenants.<\/p>\n

But if your property management company doesn\u2019t have a disaster response plan, or if you aren\u2019t working with such a company, you\u2019re responsible for creating an emergency management plan. Fortunately, this guide can help.<\/p>\n

Below, we\u2019ll cover why you need an emergency management plan and what it should include. We\u2019ll talk about creating an emergency supply kit for you and your tenants. And we\u2019ll walk through how you should handle a crisis.<\/p>\n

As an extra resource, you can use the Federal Emergency Management Agency\u2019s (FEMA) checklist of items to consider including in your plan<\/a>. While FEMA\u2019s list is for a broad audience, it\u2019s a robust framework and excellent starting point.<\/p>\n

Ask your insurance provider and local authorities to review your completed plan. This extra step improves the emergency preparedness for you and your tenants.<\/p>\n

Once your plan and emergency supply kit are ready, you need to make sure your renter knows about and has access to both. The best time to do this is at move-in. Show them the location of smoke detectors, fire extinguishers, fire exits, and utility shut-offs.<\/p>\n

For multifamily properties or apartment complexes, make sure residents know where all the emergency exits are located. Verify their emergency contact info, and encourage them to install FEMA\u2019s mobile app<\/a> on their phones.<\/p>\n

Now you know why you need an emergency management plan. Let\u2019s talk about what to include.<\/p>\n

What to Include in Your Emergency Plan<\/h2>\n

You need to make two emergency management plans: one for your business and one for your tenant. The plan you make for yourself is what you need to know and do as a landlord. The plan you prepare for your tenant tells them how to stay safe, including any specific information about your property.<\/p>\n

\"Erledigte<\/p>\n

The version you make for yourself should include:<\/p>\n