If you are thinking of investing in a property, have you thought about all risk factors, particularly, natural disasters that could jeopardize your investment? If yes, the following post will help to make you aware of all the possible caveats attached with the property that could be affected by natural disasters, especially if you want to secure your capital in form of the property in a coastal area or near a beach.
Although most of the real estate agents don’t tell you about the risk factors while one is investing, however, it is important to be cognizant of all the possible natural calamities that could threaten your financial assets in form of hurricanes, earthquakes, and floods. And the problem is the economic cost of the natural disasters is often underestimated. Admittedly, these natural risk factors cannot be stopped; however, if you know what possible threats could damage your property, it would become easy for you to make preparations and to do the damage control rather than being hit by the risks all of a sudden.
Securing the Property
If you are known for the post-disaster damage control and have set the good precedent in that regard, it would immediately set you apart from your competitors. Therefore, if you invest your energy and money on installing safeguards to protect the property, it could make a huge difference. For instance, never invest your capital on one big project; rather invest in multiple small projects, so that if one gets hit by a natural calamity, all your capital won’t be lost. Getting your property insured is another effective way of decreasing the chances of your financial loss.
Safety of the Residents
If you have property in the area that is prone to natural disasters, it is necessary to take into account the risks for individuals residing in your apartment or building. For instance, if you have tiles on the floors of your apartment, it could help to minimize the effect of floods. Similarly, the electrical connections of the building can be secured to avoid short-circuiting. Spending money on these little things may sound exhausting; however, if they are done properly, these small precautions could save your property and the tenants from a huge loss in the future.
Maintaining the Property
Despite the danger of the natural calamities in areas where you own property, the maintenance of your house could contribute to making it disaster proof to a large extent. For instance, if the roof and drains of the apartment and building are properly functioning, it could play a role in minimizing the negative impact of floods on your house. Moreover, if the shutters are installed to secure the windows of the house and glass doors, it could lessen the impact of cyclones or hurricanes.
The technology of multifamily leasing could also be utilized to not only make it easier for the tenants to pay the rent and collaborate with each other in times of crisis or natural disaster, however, it would also save your time from monthly rounds to the property. Furthermore, it is a convenient option for the tenants as well. There are various types of leasing contracts that one could opt for. For example, the use of property by the tenants for a certain period of time and rent is one option, and the buying of the property could also be included in the contract for a suitable value and the last type could extend the period of leasing if the tenant and the owner manage to reach an understanding.
In order to prepare the tenants for the natural disasters, an evacuation kit could also be prepared to provide first aid supplies and medicine, food and clothing to the residents. This would build a sense of positive relations between you and the tenants in terms of responding to the risks and it would eventually safeguard the security of your property as well. Because if the tenants are able to respond to the risks in an efficient way and they secure themselves, the structure of your building may also be preserved and it would set good name in the property market.
Keep the Record of Documents
If you are one of those property owners who is not very good at organizing and maintaining the documents, it is time for you to work on your organization skills. Because it is pertinent to maintain the record of the correspondence with the tenants in case of the damage or any natural disaster, as you will probably have to provide the evidence and details of your building or apartment before and after the disaster. For example, keeping the pictures and media evidence would also help you to reclaim your losses to the insurance company.
This stage is of particular significance when it comes to the protection of your property in the long term. Although you may have to spend money on installing the safety mechanism, however, if these measures are not taken, these could contribute to the structural failures of the building, which would cost you more if it gets affected by a natural calamity. For example, floods could worsen the structural problems if the floors of the building are not covered with material that prevents the water from getting into the building.
Disaster Recovery Plan
If you are an owner of the multiple buildings and you possess the funds to formulate a disaster recovery team, it would provide great help to the tenants of your building in addition to building the trust factor for your property among the tenants. The main team could be divided into small teams responsible for the planning, prevention and evacuation phases. As teams require strong leaders, you could hire an expert in the field or lead it yourself in terms of making sure that everything gets done properly. Furthermore, a separate team for maintaining the record of the all the requirements for the insurance of the building could also be achieved in an organized manner.