Tips For Protecting Your Property
Tips For Protecting Your Property Investments During Severe Weather
How can Central PA real estate investors better protect their properties and portfolio performance during severe weather?
The big blizzard bombarding the northeast is a fresh reminder of how critical it is for serious PA real estate investors to take nature into account if they want to minimize risk, and maximize returns over the long run.
Eight tips for protecting your investments:
1. Make Smarter Acquisitions
Clearly some properties and locations will stand up to the weather and natural disasters better than others. Make sure this is a factor on your check list when evaluating new investment property acquisitions.
Talk to a Mechanicsburg Realtor about developing this part of your real estate investment plan.
2. Get Insured
Even those Central PA real estate investors that own properties free and clear and aren’t forced to have homeowners insurance need to consider it. Beyond basic coverage many may also consider having renters obtain their own insurance, and taking out business insurance if they are investment under a legal entity such as a LLC.
3. Proactive Maintenance
In addition to ensuring you or your property management team get out to tighten up properties in the face of storms, taking a proactive approach to property maintenance year round can ensure you aren’t caught by surprise or unprepared.
4. Post-Disaster Planning
Often the most important, yet most overlooked part of disaster planning for rental property owners is what to do immediately after a storm has passed. What you do in the following hours and days will make all the difference in the real impact on your portfolio and investment returns. Properties must be secured, snow cleared, repairs made, and tenants checked on.
Diversification is critical for ensuring consistent performance and profitability, not to mention reducing liability and risk of loss. For Central PA property investors this might mean getting into more units, rather than fewer more expensive ones. For example; scouting Carlisle homes for sale, Harrisburg’s new home communities, and existing Mechanicsburg Homes. The recent blizzard, and years of hurricanes should also be a huge wake up call for out of area investors to diversify their portfolios from being too heavily weighted in the zones most prone to natural disasters such as NJ, Long Island, NY, South Florida, and Southern California.
6. Building Up Reserves
Building up capital reserves is just common sense. This is essential during these times. If not for repairs or clean up, at least for filling in cash flow interruptions if tenants are snowed out of work for several days or weeks.
7. Staying Connected
Staying connected and preserving data and crucial information can’t be overlooked. How is your information backed up? Are you using multiple cloud backups like Google Drive? How about backup phone service and internet connections in case your primary provider goes down? How about using virtual assistants via oDesk in case your local assistants or manager is unreachable and tenants need a contact?
8. Emergency Provisions
When major storms strike basic provisions like electricity, running water, and supermarkets can be down for weeks. Are you prepared with generators, heating fuel, water, and food? Should you have extra supplies to help tenants who might not have had the finances to stock up in advance.