Let’s face it, when it comes to properties, bad things happen. Whether it’s a home or commercial property, there are always going to be unforeseen events that cause property damage. So let’s focus on the areas that can be controlled to lower the risk of potential property damage. Mary Girsch-Bock of PropertyManager.com compiled a list of effective risk management strategies.
- REMOVE THE RISK. It may sound elementary, but remove anything that looks like it may cause harm, risk or liability. If you visually see rotting wood, sinking ceilings, raised floors, dead trees etc… Remove them. By removing the risk, this alone will greatly reduce the likelihood of further damage. Although, removing the risk is the most permanent solution, frequently it is not possible.
- CONTROL THE RISK. While we can’t control the weather, we can certainly plan for the possibility. Emergency plans can be implemented and provided to all tenants upon move-in, with reminders given once tornado/hurricane season starts. While controlling the risk will not eliminate the possibility of a tornado or hurricane or other adverse event affecting your property, both you and your tenants will be better prepared for it.
- REDUCE THE RISK. Part of the success of pro-active risk management is the ability to handle adverse events when they happen. Unfortunately, there is no activity that will eliminate risk 100 percent of the time. However, by implementing proactive practices such as annual inspections of furnaces, roofs, stoves, and other appliances, the rate of adverse events is likely to drop to a manageable level.
- INSURE THE PROPERTY ADEQUATELY. While the first three items on this list directly affect the incidence of risk, insuring your properties adequately against these events can play a large part in managing to stay financially solvent. Again, while you can caution tenants against turning on their stove, and then falling asleep, you can’t be in their unit, ensuring that they are in fact wide awake while cooking. Having adequate insurance coverage will not eliminate adverse events, but it will make sure that your home and/or company will be able to absorb the costs of the loss in the most effective manner.
By accepting the fact that bad things can and will happen, and planning accordingly, property managers can reduce the effect that these events have on both the property and the bottom line.
Westside Restoration is available 24/7 to provide emergency service in the event of fire damage, water damage, wind or storm damage. Visit the Masters of Disasters at www.westsiderestoration.com.