How to Handle Post-Disaster Property Restoration

From accidental electrical fires, to sudden floods, to hurricanes, to freak traffic accidents that leave cars lodged in buildings’ walls, there are numerous disasters that can befall a rental property. Quickly recovering from rental property damage is crucial for property managers for several reasons, such as:

Preventing harm to renters;

Restoring the property to working order so rent can be collected; and

Avoiding potential code violations caused by rental property damage.

The question many rental property managers have after a disaster is: “How can I http://edition.cnn.com/search/?text=investment property restore my rental property as soon as possible?” While some property managers fish through a list of “Property restoration experts near me” search results on Google without much help or guidance on what to look for, there is more to post-disaster property restoration than hiring a local restoration company (though, that is important).

To help you speed along your property restoration after a disaster while minimizing the financial impact, here are a few tips for recovering from rental property damage:

Property Restoration Tip #1: Document Everything

Disaster recovery is expensive. Hopefully, your rental property insurance policy can help cover most, if not all, of these costs. The challenge is that insurers need to make money too—so they may not pay out on a policy because you only have an estimate for damages. The insurer needs to know the exact extent of the damage, see proof that the damage was caused by an event covered under the insurance policy, and that the repairs conducted were necessary for restoring the property to working order.

So, to smooth the insurance claim process, it is vital to document everything that you possibly can about the rental property damage that occurred because of the disaster. This may include:

Taking photos of the damage to the property itself;

Documenting damage to the renter’s personal property;

Recording professional assessments of the property damage and their recommended property restoration measures;

Documenting any and all property maintenance expenses for parts and labor incurred during property restoration work; and

Collecting any pertinent police/first responder reports and public records of the event that damaged the rental property.

Long story short, the more documentation and evidence you can provide to your insurer to support your claim, the easier it should be to collect on your insurance claim—assuming the damage is covered.

Property Restoration Tip #2: Find a Reliable Property Maintenance Technician

Many property managers skip straight to searching Google for a “restoration professional near me” as soon as they discover severe rental property damage. However, just because a company ranks high on the Google search page does not mean that they’re the best property restoration company for the property manager’s needs.

In fact, if the event causing the property damage was on a large scale (such as a major flood, earthquake, or hurricane), odds are the top-listed restoration companies will be flooded with calls for disaster recovery services and be too busy to perform maintenance for a long time. This is inconvenient for property managers who need to quickly restore their rental properties to working order.

However, a property maintenance solution can make finding trustworthy and qualified property restoration experts faster and easier. This is accomplished by leveraging a massive network of pre-screened professionals in the fields of plumbing, electrical systems, HVAC, and general contracting to find the right people for specific restoration tasks quickly and efficiently. Once a property maintenance/restoration request is submitted, it is sent to the network of nearby technicians who have been pre-qualified to take the job. So, rather than vetting individual companies one by one to see if they meet your needs, your job is automatically sent out to thousands of pre-qualified pros. You can even set a “not-to-exceed” budget limit for parts and labor to help control your disaster recovery costs. 

Property Restoration Tip #3: Don’t Forget about Your Renters!

While dealing with disaster recovery can be inconvenient for property managers, it can be an outright nightmare for renters. Depending on the severity of the rental property damage, renters may not be able to reside there until repairs are complete. Being able to help renters during a stressful time can help property managers improve their reputation—which can be a powerful competitive advantage later on. Here are a few ways for property managers to support renters and build a positive relationship during disaster recovery efforts:

Help Renters Find New Temporary Housing. While the property maintenance experts are working to make the rental property livable again, it’s important to help the renters find new lodgings to tide them over during the transition. By providing help here, property managers can demonstrate to renters that their comfort and safety is a top priority. This, in turn, helps to build a positive relationship and goodwill.

Create Safety Plans and Ensure Renters Know Them. As noted by Forbes in an article on how to minimize risk for property managers following a natural disaster: “Maintaining tenant safety is the top priority when a natural disaster occurs.” Having such plans in place can help renters stay safe during a disaster by apprising them of evacuation routes and different paths for exiting the building if it is damaged. However, it’s important to communicate these plans to renters to ensure they know the plans exist and can follow them. One way to improve awareness is to send reminders every now and again—especially during times of the year where certain disasters are more likely to occur. It also helps to create different plans for specific types of disasters.

Exchange Contact Information with flipping houses for sale Renters. Sometimes, simply being there for renters is the best way to support them and build a positive relationship. So, before a disaster occurs, be sure to exchange contact info, such as cell phone numbers and email addresses, with the renters and let them know that you’re available if they need anything. Also, if a disaster strikes, be sure to proactively reach out to them and offer what support you can, such as helping them find lodging while repairs are completed.

Minimize Delays in the Disaster Recovery Process. The longer it takes for your rental property to recover from damage, the worse the impact will be on renters—and on your bottom line (since renters may need to be compensated for the time they could not occupy the rental property). So, doing what you can to ensure that rental property damage is remediated as soon as possible is essential. Here, an on-demand property maintenance solution can help streamline the process for finding and hiring trustworthy maintenance technicians.

The Future of House Flipping in Real Estate Investment

House flipping – the art of purchasing a property, then renovating it to sell for profit – has captured hearts and minds in the last decade. Hit TV shows such as Flip or Flop, Flipping Out and Flipping Vegas inspired a generation of new real estate investors by revealing an accessible way to make a quick buck.

So, what could this sector look like in the coming months and years? Here are a few possibilities.

Scenario 1: The rise of ‘flip to keep’ investments

House prices could fall sharply in mid-2020 and then recover rapidly as part of a ‘V-shaped rebound’, one of the market scenarios set out by trusted resource for home buyers. This could spell huge opportunities for investors – but they’ll need to wait longer to cash the rewards. Renovations may be followed by a period of ‘flip to keep’, whereby investors use or rent properties prior to selling.

The quality of renovations may be driven upward as a result, since houses will need certain ‘liveable’ add-ons, such as the satellite dishes that come with a phone and internet bundle, charge points for electric toothbrushes and lights in the closet. Living in a flipped house creates an opportunity to test out the water pressure and broadband connectivity for a confident result – and the delay will allow a stretched construction industry a little space to complete the work.

It carries risk, sure – but ‘flip to keep’ investments could reap dividends in the event of investment property refinance a quick economic recovery.

Scenario 2: Flipping flops – then soars beyond 2021

If property prices remain dipped throughout 2020 before recovering slowly in 2021 – as part of the alternative ‘U-shaped’ forecast set out by trusted resource for home buyers – then the potential for flipping investments may take a significant hit before slowly recovering. Crucially, a lengthened period of sustained value growth could create a second boom for Canada’s favourite type of property investment project. After all, rising prices spell heaps of potential.

Scenario 3: The end of quick flips as we know them

Real estate value can’t be forecast like the weather – for one thing, the value of property is intricately related to the amount of money in the economy, which depends on factors such as unemployment rates. If the wider economy fails to bounce back from the impact of the coronavirus pandemic – or if it is reclosed, causing a ‘W-shaped’ bounce back, then real estate prices may remain low or volatile. This could pose a threat to widespread flipping as we know it.

Viable investments would still exist – but they would come with new levels of risk, and the field would be harder to break into. Investors would need to be equipped with a great deal of patience to make it big in such a market.

All hope is not lost, however – flipping is a resilient form of investment which is more robust than many. After all, there’s always demand for bricks and mortar if you wait long enough. The main thing to watch is equity, since a dip into negative territory has the potential to turn flipping ventures in the wrong direction. However, as with all investments, riskier times can lead to fruitful rewards – if the market swings in your favor.

10 Budget Rehab Tips That Boost The Value Of Your Investment Property

New Electrical Switch Plates

This is such a minor, yet overlooked improvement. Most rental owners and rehabbers paint a unit and leave the old, ugly switch plates. Even worse, some even paint over them. New switch plates cost about 50 cents each. You can replace the entire house with new switch plates for about $20. For the foyer, living room and other obvious areas, spring for nice brass plates. They run about $5 each - not much for added class.

New or Improved Doors

Another overlooked, yet cheap replacement item is doors. If you have ugly brown doors, replace them with nice white doors (you can paint them, but unless you have a spray gun it will take you three coats by hand). The basic hollow-core door is about $20. It comes pre-primed and pre-hung. For about $10 more, you can buy stylish six-panel doors. If you are doing a rehab, the extra $10 per door is well worth-it. For rentals, consider at least changing the downstairs doors.

New Door Handles

In addition to changing doors, consider changing the handles. An old door handle (especially with crusted paint on it) looks drab. For about $10, you can replace them with new brass finished handles. Replace the guest bathroom and bedroom door handles with the fancy "S" handles (about $20 each).

Paint/Replace Trim

If the entire interior of the house does not need a paint job, consider painting the trim. New, modern custom homes typically come with beige or off-white walls and bright-white trim. Use a semi-gloss bright white on all the trim in your houses. If the floor trim is worn, cracked or just plain ugly, replace it! Home Depot carries a new foam trim that is pre-painted in several finishes and costs less than 50 cents per linear foot. Create a great first impression by adding crown molding in the entry way and living room.

Replace Front Door

You only get one chance to make a first impression. A cheap front door makes a house look cheap. An old front door makes a house look old. If you have nice heavy door, paint it a bold color using a high-gloss paint. If your front door is old, consider replacing it with a new, stylish door. For about $125, you can buy a very nice door.

Tile Foyer Entry

After the front door, your next first impression is the foyer area. Most rental property foyers are graced with linoleum floors. Many homes also have an outdoor porch that would benefit from new tile. Consider a nice 12" Mexican tile. An 8ft x 8ft area should cost about $100 in materials.

New Shower Curtains

It amazes me that many landlords and sellers show properties with either no shower curtain or any ugly old shower curtain in the bathroom. Don't be cheap - drop $40 and buy a nice new rod and fancy curtain.

Paint Kitchen Cabinets

Replacing kitchen cabinets is expensive, but painting them is cheap. If you have old 1970's style wooden cabinets in a lovely dark brown shade, paint them. Use a semi-gloss white and finish property investment advice them with colorful plastic knobs. No need to paint the inside of them (unless you own a spray gun), since you are only trying to make an impression. Most women spend 99% of their time in the kitchen (when they are not watching TV). A fancy modern faucet looks great in the kitchen. They can run as much as $150, but not to worry - most retailers (Home Depot, Lowes, Home Base, etc) often run clearance sales on overstocked and discontinued models. I have found nice Delta and Price Pfister faucets for about $60 on sale. And don't forget to check eBay!

Add Window Shutters

If you have ugly aluminum framed windows, consider adding wooden shutters outside. They come pre-primed at most hardware retailers and are easy to install. Paint them an offset color from the outside of the house - (e.g., if the house is dark, paint the shutters white. If the house is light, paint them green, blue, etc.).

Add a Nice Mailbox

Everyone on the block has the same black mailbox. Stand out. Be bold. For about $35 you can buy a nice mailbox. For about $60 more, you can buy a nice wooden post for it. People notice these things and buyers love them! As a real estate investor, staying mindful of these easy and cheap fixes can help your profitability soar.