Have a Question?
If you’re struggling with what to do in an emergency, please read below.
There are several things you should do in an emergency situation with any of your investment properties.
But first, let’s backtrack a little before the emergency even happens to one of your rental units.
The ideal way to go about things is to get a property inspection done before you purchase the property to avoid emergency repairs in the first place.
That way, you’ll be ahead of the game and either have the seller do the repairs or you’ll get credits at closing and fix the property immediately upon closing.
Now, if you did or didn’t get a property inspection and an emergency repair is needed, for instance – – let’s say a pipe in the upstairs bathroom busts and damages the walls or ceiling below.
Here would be the proper way to handle the emergency:
1 – First, check to see what your insurance deductible is.
2 – Call a plumber from your roster to quote you a price.
3 – If the cost of repair is less than the deductible, then have the plumber fix the pipe using your reserves to pay for it without getting the insurance company involved.
4 – Hire a handyman from your roster to repair the drywall.
5 – Notify tenants of what’s going on and that you’ll need access to their units on specific dates and times.
6 – If any of your tenants are on Section 8/ Government Housing, notify the housing authority what the issue is and that you’re working on the problem ASAP.
7 – Once the repair is complete, begin to replenish your reserves.
Still need help? Visit MIT 3.2: Perform Due Diligence Part 2