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You’ll never know when a disaster will hit your rental property, whether it’s a social, financial, economic, legal, or other form of crisis. Developing protocols is a proactive way to manage potential problems that may arise, allowing you to mitigate risks and reduce costs.
Here are the steps you need to take to create an effective crisis management protocol.
Key Highlights:
- Establishing clear protocols helps landlords mitigate risks, control costs, and safeguard both tenants and property during unexpected crises, such as social, financial, or natural disasters.
- Identifying property vulnerabilities and understanding regional threats like floods, tornadoes, and severe weather in
- Establishing a clear chain of command and maintaining reliable vendor partnerships ensures swift, organized responses and reduces repair costs after disasters.
- Stocking essential supplies and conducting regular emergency drills improves tenant safety and ensures readiness for real emergencies.
- Regular inspections, upkeep, and security checks protect property value, reduce downtime, and maintain tenant trust by preventing avoidable damage or crime-related crises.
Step-By-Step Guide
1. Assess Potential Risks in Your Rental Property
Even with preventive measures in place, there are crises that you cannot avoid. Identifying the potential vulnerabilities of your business and property will guide you in creating an effective risk management approach tailored to specific situations.
You may also analyze the likelihood of these disasters happening. For instance, Indiana is known to be prone to natural disasters such as ice storms, heat waves, tornadoes, and flooding. Knowing which events are more likely to affect you lets you prioritize preparing for them.
2. Establish a Chain of Command
If you have several tenants in your rental property, the last thing you want during a disaster is for everyone to argue over what to do. Assemble a team with each person tackling a specific field, such as communications, repairs, legal, and even transportation.
It’s also crucial to build a reliable network of vendors, such as plumbers, electricians, and roofers. They will play a major role in rebuilding your property and ensuring safety during natural disasters. Given the many potential damages, a good relationship with vendors can lead to lower costs.
3. Stock Up on Supplies and Equipment
Although you can’t be ready for everything, having the right equipment and supplies can help you survive most disasters. Here’s a checklist to help you ensure you have everything you might need.
- Food (non-perishable food that can last at least five days)
- Water (a gallon per person per day)
- Battery-powered or hand-crank radio
- Flashlight
- Generator
- First-aid kit
- Extra batteries
- Whistle
- Toiletries
- Blankets
- Kitchen tools (scissors, can openers, portable stove)
- Local maps
- Smart devices with chargers
- Sandbags for floods
- Fire extinguishers
Add any item you may require, and inform tenants so they can prepare personal emergency items, such as medication or personal documents. You cannot be responsible for everything your tenant needs, but you still need to guide them in their preparations.
4. Training and Coordination for Plans
Conduct drills so your employees can rehearse emergency plans until they can do so even in a state of panic. This can also help you identify gaps in the plan and polish it for effectiveness. Even with just a day of training, your employees will already know crucial information, such as emergency exits and proper protocols, and can help prepare tenants.
5. Conducting Preventive Maintenance
One good way to reduce risks when disasters or incidents do happen is through preventive, or proactive, maintenance. Not only does it boost your property value, but it also protects you and your tenants from harsher consequences.
For example, regularly cleaning your gutters will prevent overflows and water intrusion during heavy rain. Checking your smoke detectors will help prevent fire-related incidents from escalating, minimizing the dangers and costs they can cause.
What are the Biggest Risks in Indianapolis?
Severe Weather
Indianapolis is known to experience extreme weather. There are hot, humid summers and cold, icy winters. These conditions can become hazardous when you are not prepared to deal with them. One good way to avoid risks is through proactive measures, such as winterizing pipes or planting trees in the yard to provide shade and reduce heat.
Flooding
Since the state is prone to storms, your rental property is vulnerable to many costly damages, such as water intrusion, basement flooding, foundation erosion, and other structural damage. You can prepare for these potential disasters by ensuring proper drainage, installing water sump pumps, sealing foundation cracks, maintaining gutters, and acquiring proper insurance coverage.
Crime
Unfortunately, Indianapolis still suffers from high crime rates, and your tenants need to feel and be safe in the comfort of their own home. To prevent a crisis, such as burglary, regular inspections are crucial, especially with your security system. Make sure all entry points have working locks and that all surveillance cameras are working.
The Dangers of Being Unprepared for Crises
1. Tenant Safety Risk: Failing to set up plans and protocols can lead to confusion and miscoordination, which can endanger your tenants.
2. Huge Financial Loss: Without contingency plans, unexpected repairs, vacancies, and legal issues can impact your cash flow and long-term profitability.
3. Property Damage Escalation: When you don’t fix smaller issues, like missing shingles, for example, they can be the root of bigger problems. During heavy rains, the water that seeps in can cause a lot more damage than you anticipated.
4. Longer Downtimes: Without preparing for disasters, you’re leaving your property more vulnerable to damage. Major issues will take a while to fix and can cause long vacancies.
5. Reputational Damage: Being known as the landlord who cannot protect his tenants and property can make a significant negative impact on your chances of finding good tenants.
Rental Property Crisis Management FAQS
What qualifies as a “crisis” in a rental property?
- A crisis is any urgent situation that threatens tenant safety, causes major property damage, or disrupts essential services. Examples include burst pipes, fires, severe weather damage, gas leaks, break-ins, electrical failures, and medical emergencies.
What emergency contact information should tenants have?
- Tenants should have a 24/7 emergency maintenance number, Local utility companies, police and fire departments, instructions for reporting emergencies, and after-hours contact information.
What’s the landlord’s responsibility during severe weather events?
- A landlord must ensure that the property remains safe and habitable, which means clearing snow or ice from common areas, ensuring HVAC systems work properly, fixing storm damage quickly, and preventing hazards like falling branches or flooding.
What should landlords do if a tenant reports a break-in or vandalism?
- The first thing you have to do is secure the property by replacing the locks or repairing the broken door or window. You must then document the incident and file an insurance claim if necessary.
How can landlords prevent small issues from becoming full-blown crises?
- Implement preventive maintenance, such as seasonal inspections, HVAC servicing, regular plumbing and electricity checks, roof and gutter maintenance, and pest control.
Delegating Crisis Management to Professionals
It’s important to keep a level head in a crisis, and having experience under your belt would be especially helpful. If you feel as though you need help, there are always professionals who can do that job for you.
ES Property Management can help you develop protocols and secure your property before a potential disaster. With preparedness and expertise, you can mitigate risks and minimize costs, and we can provide that for you.
Contact us, and you can focus your attention on other immediate matters in your rental business.
