The other side of owning real estate....a crisis

The other side of owning real estate....a crisis

Investor · Gaithersburg, MD · Member since 2013 · 660 posts · 441 votes

So we got a call that our tenants were without water in a recently purchased apartment complex.  My first thought was oh lord, this isn't good, I wonder what happened and what kind of repair bill we're going to have here.  Fortunately, there wasn't a problem with our property, but unfortunately, the 36" pipe that feeds water to the ENTIRE city of 30,000 people broke and on top of that, because of flooding from the nearby river, the part where the pipe busted is underwater (it usually is not underwater).  They can't get to the pipe until the water recedes.  They also have to build a 500-foot levy before they can restore services.  After 2-3 days, the city said it could be as much as a week before the water is restored.  On top of that, they will have to boil water after restoration.  No idea for how long, but I'm sure for a while.  Also, within hours, the entire city had been bought out of bottled water.  Any new bottled water that comes in, they are just offloading it directly from the truck to a never ending line of people.

So, what did we do?  Technically, we didn't have to do anything.  It's not our problem.  It's the city's problem.  However, that's just not the way we view things.  Before owning real estate, other than donating some money to a cause, we've never really had a chance to do anything of significance for anyone in a crisis.  So we drove to the nearest city with plenty of water (about an hour away to be sure it was clean).  We filled up 3 55-gallon drums of water for things like flushing toilets, washing dishes, cleaning themselves, etc.  We also took 3 cases of water to each tenant for drinking, brushing teeth, and anything else they need.  We told some of the tenants to let us know if they ran out of anything so we can replenish.  Hopefully, they will have the issue fixed in the next couple of days, but it was probably the worst case scenario for the city.

I didn't post this for a pat on the back or anything like that.  I see lots of posts where people face similar situations and want to encourage everyone else whenever you have a chance to do right by your tenants, do it.  It's the least we can do.  And we'll do more if the situation dictates.  A few of the tenants have kids and not having water for them was just not something we were going to allow.  Probably the best part about this story is my Dad (who I invest with) had already put this into motion before calling me.  I didn't even have to ask him what we could do, he was on it.  If anyone wants to follow the story, just google Vicksburg water and the stories will come up.

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  • Minneapolis, MN · Member since 2013 · 2k+ posts · 1k+ votes
    9y

    Water woes... Great way to accommodate as best you could with what you had to work with.

    NO one realizes how heavy and hard it is to transport water until you have to do it. And how much one can do without, after a water crisis you turn on the tap and think "wow" water is really a luxury !

     Your dad is a gem to help out.

    I managed a building that after storm had no power for 4 days, We strung power cords from a nearby building just to hang trouble lights in the halls..lots of extension cords... was a 3 floor 36 unit building.. Food rotted, middle of summer heat was horrible.. we gave each unit $$ for food loss. Their was so much damage city wide every generator was sold out and we had to post watch for someone to monitor for fire because the alarm system was down. Honestly those tenants were so thankful they still had roofs over their heads and we all did the best we could. 

  • Real Estate Investor · Memphis, TN · Member since 2016 · 940 posts · 695 votes
    9y

    @Justin B. - WOW!  That is crazy!  Ya'll are great landlords.  I'm sure your tenants will be even more loyal than they were before!

    Hope you get water back soon!

    Thanks for sharing.

  • Investor · Vancouver, WA · Member since 2013 · 3k+ posts · 4k+ votes
    9y

    Thank you for sharing your stories and strategies!

    Once I was a member of a team of people that wrote a section of the emergency preparedness plan for our city and county. We were tasked with writing the section specific to accommodating the needs of seniors and people with disabilities in the event of a disaster such as an earthquake, weather event, explosion, act of war, etc. 

    The bottom line is, in an emergency that affects a large area and a great number of people, systems will be crippled, first responders will not be able to get to all affected people and supplies will run out. The most significant thing we can do is develop a plan for "sheltering in place" and reaching out to others in need.

    As a landlord, I've given thought to the need to prepare our properties and our people to survive in the wake of a disaster or emergency situation. The American Red Cross and other aid organizations have materials available that we have given to new tenants, to help them make their own emergency preparedness plan. Starting the dialogue now and having a plan really helps. Not only for each household, but for each housing complex, and for each neighborhood.

    Our basic needs are water/food, clothing and shelter. But we have a need to address not only physical needs, but psychological needs as well. When our tenants see us in action, doing what we can to protect the health and well being of others, their fears lessen and they are often able to rise to the occasion to help out too. Such times can serve to bring the community together and bring out the best in people. Tenants will not forget the landlord who goes the extra mile and does extraordinary things for their benefit. Our actions can serve to enhance the relationship and mitigate damages.

  • Johnson City, TN · Member since 2014 · 586 posts · 705 votes
    9y

    Perhaps you can hire one of those tanker trucks that supplies thousands of gallons of potable water.

  • Investor · Gaithersburg, MD · Member since 2013 · 660 posts · 441 votes
    9y

    We wouldn't need quite that much water, but I'm sure all those tankers anywhere near the area are already otherwise engaged.  I'm sure the city is probably setting up places where people can get potable water at least and usually in these types of situations the city or county figured a way to get bottled water to people as well, but I wanted to make sure our tenants had it quickly and for sure.

    I'm also sure some of the tenants have family in other places that can probably help as well, but I didn't want any of my tenants to get caught in a situation where they needed water badly and weren't able to get it quickly, especially if the kids need it.

  • Investor · Gaithersburg, MD · Member since 2013 · 660 posts · 441 votes
    9y

    The water is still off but they are expecting it to be completed today and water restored and then the boiling for an undetermined amount of time will begin.  That makes basically a week without water.  Sheesh!

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