You’ve saved your money, made savvy business decisions, received ideal rates and leverages. Everything is off to a smooth start in your real estate investment career. It seems like only a natural disaster could derail your progress and accomplishments, so why not be prepared for it?
This article includes a few tips from RCN when trying to navigate the preparation and protection of your real estate investment when a natural disaster comes into play. There is no need for your real estate investment portfolio to take a hit when plans and solutions are in place.
Find the Right Insurance Policy
At the risk of sounding like your parents, the first step seems simple but can’t be overlooked. There are so many different types of polices that you have be sure you are investing in the right one for your property. Some cover the bare minimum, some cover more than you need. However, with some investors, real estate properties are their main source of income. There is no need to cut corners on such important investments. The sweat, energy, time and money that goes into being a successful real estate investor could be in jeopardy if not all the bases are covered by an insurance policy.
Whether it be a single-family residence or a 20-unit apartment complex, being thorough when securing the right insurance policy in crucial. Some can cover blizzards, hurricanes, and tornadoes. Being aware of what natural disaster could occur depending on location could be a big help. From the Pacific Northwest to southeastern seaboard, there are a wide range of natural disasters that are more common in certain areas. Only paying for what you truly need could be a way to save money but the age old saying, “Better safe than sorry,” applies for all real estate investors when shopping for insurance policies.
Add Additional Safety Features to Properties
This can be wide-ranging, but every feature added cannot be overlooked when setting up your real estate investment property. Wildfires occur in some areas of the country so equipping every home with smoke detectors and fire extinguishers can go a long way. Storm shutters and hurricane resistant windows are crucial additions to beach front property on the east coast especially in areas such as Florida and New Orleans. When conducting rehab to a given property, adding storm shelters in certain areas of the country can increase safety and value.
Being prepared for the worst can be a huge help in maintaining investment properties. Avoiding damage may not always be realistic in some areas of the country but minimizing can be a huge help for the safety of others and your bottom line when you have to make any necessary repairs.
Work with Builders You Trust
The final step in protecting your investments and preventing damage caused by natural disasters is working with contractors that you trust. During any rehab process, hiring the best help possible can reduce any stress or worry about the property’s integrity. Taking the time to look for contractors that have experience with repairing natural disaster damage to properties can be a big help. It is also crucial to form relationships with contractors because when a natural disaster hits, every contractor in the area can be swamped with work. If you have a professional relationship with one and call in a time of need, they could be more likely to help you with your repairs first.
Certain contractors can also be experts in removing water damage from homes which can be a big help. Mildew is a common concern after flooding, and removing it properly takes away any risk of tenants being exposed to mold. Having a relationship with the right kind of contractors can help immensely and reduce some of the stress that comes after a natural disaster strikes. Being able to rebound as quickly as possible gets your real estate investment properties cash flowing sooner as well.
All three of these factors are crucial when considering what natural disasters can do to your real estate investment properties. The most successful investors are prepared for anything and react quickly and confidently when any problems arise. Checking all the boxes as they’ve been laid out above will give you that edge to bounce back quicker and be a better real estate investor for you clients. RCN is always glad to help! Stay tuned for more informative articles as you continue your real estate investment property career.