I got the call all of us landlords dread. There had been a major fire at one of my properties. In the instant after you get that call your head is filled with a thousand questions. Is everyone OK? What happened? What started it? Whose fault was it? How bad is it? Of course you cannot answer any of those questions until you get to the property. I hopped in my truck and headed right over. I just knew it was bad because as I got close, before I could see all of the fire trucks, I could smell the smoke. This is not going to be good I thought.
When I turned the corner and saw the multitude of fire trucks and police cars my thoughts were confirmed. The second story of my triplex, one of my best performing properties, was simply gone. It was replaced with charred wood. Water from the fire hoses was dripping everywhere and debris from the fire crews was strewn all over the place.
The good news is that everyone, all of the tenants and the neighbors, were ok. The tenants from the unit where the fire started all got out, another had mover out the DAY before (she was lucky) and the other tenant was out to dinner when the fire occurred. So there was only physical damage. How much and how extensive was damage was yet to be determined.
When my wife and I arrived on the scene one of our tenants came running up to us telling us how sorry he was. It seems he was smoking and accidently threw it out in a trash can and before he knew it, poof! Thankfully, he also told the fire crews on the scene the same story. We were both somewhat relieved that the cause had not been building related. After talking with the fire crews there was not much more we could do so we went home and began to figure out what to do next.
If this ever happens to you, you need to be prepared. The first things you say or do can be critical later on.
First, be calm and take a deep breath. You are going to need all of you wits about you.
Second, you should go to the property if you can. Your help may be needed in determining if everybody is safe and accounted for. Be ready to tell the authorities who you are and who you know lived in the property. Make sure everyone is safe as that is the number one concern.
Third, be careful what you say. The authorities may not know what caused the fire at this point and are in the process of conducting an investigation. It is best to keep what you say to a minimum at this point. You never know, lawsuits could be on the horizon. Talk to the fire investigator later, after all of the excitement has calmed down. Get your lawyer involved if you feel you need to.
Fourth, call your insurance company right away and get that process started. This is a catastrophe and this is why you have insurance. Now is the time to use it.
Fifth, get a notebook and start documenting everything. Names, dates, phone numbers, who said what, etc. It will come in handy later.
My triplex is back up and running now but it sure was a long, slow process. I’ll write more about that in the future.
Good advice for those who think that kind of disaster only happens to the other guy. It certainly drives home the point that landlords must let their insurance companies know they’re renting out the home. They should also regularly check the smoke alarms. In some jurisdictions, it is the landlord’s responsibility to install and maintain them.
George Lambert
Author, What You Must Know BEFORE Becoming a Greedy Landlord. How to build a portfolio of investment properties for an income that lasts a lifetime.