Natural Disasters Can Devastate Multifamily Buildings. How Can Owners Get Back On Their Feet?
In September, Hurricane Ian swept through Florida, causing billions of dollars in property damage and leaving many locals struggling to rebuild.
After the storm, Chip Tatum, executive vice president of the Florida Apartment Association, told Multi-Housing News that Ian left all local multifamily managers in “disaster recovery mode.” Zack Olsen, marketing manager at TLR Group, added that repairs to Florida properties will likely take much longer than usual thanks to the ongoing supply chain issues.
“What should take two to three months to accomplish is now taking seven to eight,” Olsen said.
When disasters like Ian strike, multifamily property owners are often left scrambling to make repairs and renovations as quickly as possible, but that doesn’t mean they shouldn’t do their due diligence to find the right contractor.
“In circumstances like this, one of the worst things an owner can do is go with the first contractor they speak to without doing their research,” said Johnny Moseley, CEO of Moseley Multi-Family. “This is how you will end up with subpar work in the midst of what is already a very difficult time.”
These disasters are becoming increasingly costly. CoreLogic's 2021 Hurricane Report found that over the past four decades, there has been a 70% to 90% increase every 10 years in the U.S. in total inflation-adjusted losses from weather events.
Moseley recommended that when searching for a contractor to help them through the disaster recovery process, building owners need to ask them whether they have the capacity to take care of their emergency services on top of what they normally do. Additionally, owners should ask if a contractor has experience with insurance companies and understands how they want to see a project bid broken down.
To prepare for the next possible disaster, property owners should establish a relationship with companies that only do disaster recovery, Moseley said. These companies have the equipment and specially trained personnel to specifically handle these types of projects, which is not true of all firms.
“These types of firms are already experienced with performing the work exactly how the insurance companies want to see the work performed, estimated and invoiced,” Moseley said. “This will spare owners from having to deal with a lot of red tape when it comes time to collect on the cost of their damages and repairs.”
Building owners should develop a hurricane preparedness plan to better prepare them for when the next natural disaster may strike. This involves creating a chain of command that clearly lays out emergency responses and who should perform them, evacuation procedures and, for active construction sites, a plan for when construction should stop and how a site will be evacuated, how to best secure the site, risk assessment plans and a post-storm procedure.
Ensuring worker safety is a must — OSHA mandates that employers are “required to protect workers from the anticipated hazards associated with the response and recovery operations that workers are likely to conduct.”
Another thing CRE owners may want to consider is establishing a relationship with a customer service center located in another state that can handle service calls in the event of a disaster. That way, even if local phone service is disrupted, tenants will still have someone they can contact who will be able to respond.
Moseley said that once another disaster occurs and owners are ready to tackle renovations, they should look into companies that understand how to modernize and transform buildings to maximize their value.
“We can get people back on track with minimal disruption to their plans and goals,” Moseley said.
This article was produced in collaboration between Studio B and Moseley Multi-Family. Bisnow news staff was not involved in the production of this content.
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