The United States Bureau of Labor Statistics indicates that America is home to roughly 317,000 property managers, workers that maintain regular operation of houses, apartment complexes, commercial facilities, and other buildings.
Leasing to just one bad tenant can effectively pile on countless thousands of dollars in necessary repairs and hundreds of hours of labor. Since property managers ultimately make such calls, risk is inherent in the day-to-day undertakings of people in such positions.
Natural disasters can wreak havoc on structures and land they sit on, mid-level to major crimes can generate negative publicity for properties, and tenants that disturb neighbors can encourage them to seek housing elsewhere. That’s not to mention countless other manifestations of risk that property managers must be ready to deal with in their lines of work.
While risk can never be eliminated, there are several precautions that can be taken to minimize risk.
Insurance is arguably more important than any other risk mitigation strategy
Statistics indicate that just four in ten apartment lessees in the United States hold active insurance policies that protect against emergency, theft, and other unforeseen happenings that often cause financial damage.
As such, property managers can never reasonably assume that their tenants have active insurance coverage taken care of.
Insurance is available for virtually every asset, occupation, and situation, including the ownership or management of real estate. Every property manager should maintain active insurance coverage that covers literally everything bad that could happen to properties, tenants, and guests. Further, a solid means of making sure all of the proverbial bases of properties under management are covered is requiring new tenants to provide proof of renter’s insurance prior to allowing them to sign leases.
Residents should be made fully aware of facility-wide plans of staying safe during emergencies
Active shooter threats, hurricanes, sinkholes, and earthquakes are four examples of emergencies that unfortunately rear their ugly head far too often across planet Earth. Rather than assuming they won’t happen, or that tenants and their guests will act in the best interest of their safety, property managers should make certainthat tenants are fully aware of facility-wide plans of action if any of the aforementioned emergencies occur.