What to do when your rental property has a fire and we are out of the country?

Question

Hello everyone,

I am the owner of a rental property and currently 
out of the country. Unfortunately, I received the devastating news that 
my property has caught on fire. As I am unable to physically be present 
to handle the situation, I am seeking advice on the best course of 
action.

Specifically, I have the following questions:

• How should I handle the immediate aftermath of the fire remotely?
• What steps should I take to ensure the safety and well-being of my tenants?
• How can I coordinate with insurance and restoration companies from abroad?
• Are there any legal and logistical considerations I need to be aware of in this situation?
• Is
 there any experience or insight from others who have dealt with a 
similar situation of managing a fire-damaged rental property from a 
distance?

I deeply appreciate any guidance, suggestions, or 
personal experiences you can share. Thank you for your assistance in 
this difficult time.

Best regards, Marco & Christine Padilla

Bruce Woodruff · Answer

As @Bob Stevens said, you gotta fix this ASAP. And put up the tenant in a hotel somewhere. Your insurance should cover everything for you, so I don't think this is a big deal for you really?

Imagine if you had a PM you wouldn't even have to think about it.

Question - did you fire have anything to do with the tenant's negligence? That would change things I suppose.....

Bob Stevens · Answer

What do you do? FIX IT!! Have your team take care of it as they do with all other repairs.  Really not sure what you are wanting us to say. I live in FL, all mine and ALL my clients from around the world have our team take care of it all. PM handles it. You are way overthinking it.

Good luck

Marcus Auerbach · Answer

It would be helpful if you could provide some details. How many units, how big is the damage, any casualties, are other units and common areas affected, do you have contact with the tenants, whats their status etc

I understand your frustration, but there is not much you could or should do physically in person anyways. You probably have a trusted person who can arrange for a video call.

Make sure evidence is preserved, like status of smoke detectors. Document every conversation, especially if a tenant may have caused the fire. Find out if the tenant has insurance. Review your lease to understand your obligations and if necessary help tenants find temporary housing.

Lean on experts who deal with this. I would start by hireing a public insurance adjuster who has experience with fire.

Rebecca Bauer · Answer

This is exactly why you need an experienced property manager.

V.G Jason · Answer

Shit happens. Talk to your PM to talk to your insurance and tenants.

Get a 3rd party adjustor to take a look at it, make sure the tenants are re-housed on the insurance companies' dime. Process the information as it come, gather all facts and in the meantime make sure everyone is safe & living just fine. This will resolve itself, there's never a reason to panic.

Michael Smythe · Answer

@Marco Padilla you need to file an insurance claim ASAP.

Do you have a PMC that can do that for you? They shouldn't do it for free as not part of their normal job.

Is it still inhabitable? -If not, you'll need to assist your tenants in finding a place to live. They often want to stay in a resort, but it should be a place akin to your property.

How long will it take to repair the property? -You may need to find longer term accommodations for your tenants.

Hopefully, you weren't foolish and trying to DIY manage it remotely on your own.-If you did, you will find that when things go wrong, it costs you a LOT more than hiring a PMC would have cost you.

Marco Padilla · Answer

Hey Jonathan,

Thank you for your understanding and 
empathetic response regarding the recent fire incident at one of my 
rental properties. I appreciate your suggestion to provide more insights
 on the experience once I am back in the country. I agree that sharing 
our experiences can be beneficial for investors who have never 
encountered such a situation before.

Being an investor who takes a
 hands-on approach, I truly understand the initial emotional impact and 
the importance of providing immediate support to tenants and assessing 
the property's condition. Thankfully, I have a network of trusted 
professionals who can assist in times of crisis. While it may be 
difficult to bring blankets and water due to the extent of the fire, I 
prioritize tenant safety and have made all necessary arrangements to 
ensure they are taken care of.

You are correct, there will be 
individuals present at the scene, such as public adjusters and 
restoration companies, who view such incidents as a business 
opportunity. It is crucial for investors to carefully evaluate their 
options and make informed decisions when dealing with insurance claims 
and property restoration. Going over the declaration page is indeed 
important to understand the extent of coverage and make the right 
choices moving forward.

I appreciate your well wishes and 
understanding, and I will certainly share more about the experience once
 I return. It is my hope that by sharing my journey, I can provide 
valuable guidance and insights for fellow investors who may encounter 
similar challenges in the future.

Thank you once again for your support and thoughtful message.

Jonathan Bock · Answer

@Marco Padilla

It's easy for us to say all this because we have experienced it; the initial visceral reaction to a large loss is emotional can you give us more color when you are back in country? This could be a great chance to help investors who have never gone through the process.

For a hands on investor it can be a goodwill gesture to bring blankets and water and check on your tenants and the property.  Yes, the PA's will be there handing out cards and trying to get your business as the fire is being put out.  To the adjusters and restoration companies on the scene this is just a source of revenue no emotion involved they have seen it all.

For a hands off investor its just a claim and another service ticket to be outsourced.

Go over your declaration page you will have lots of decisions to make.

Wish you the best!

Matthew Paul · Answer

Tell the tenant to contact their insurance agent , they should have renters insurance , and that should cover them with a place to live .

What to do when your rental property has a fire and we are out of the country?

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