ETS Proactive Communications Helps Owners, Management and Tenants Prepare for the Inevitable
“Here’s Irony: We’re parked inside a car wash (facility) to stay dry.” – @jonahpkaplan. Every year it happens, some years worse than others: hurricanes in the East, tornadoes in the Midwest, drought in the West, not to mention all of the ugliness that comes with it: the flash floods, the power outages, the destruction… the loss.
Severe storms are inevitable and with it, the cost to major commercial properties is inevitable. CRE Owners don’t have to be sitting ducks if they engage proactively utilizing communication solutions offered by Electronic Tenant Solutions.
A recent article at GlobeSt.com weighs in about the danger to commercial real estate and the financial risks to owners when buildings are damaged in such weather events. And by weather events, we’re not talking about a rain storm, in fact, did you know The Weather Channel in the past had reported that “almost 50 million Americans from Wisconsin to Ohio and Kentucky faced threats of severe thunderstorms and possible tornadoes” during the summer season? Yes. Seriously. And those folks in major real estate markets are equally affected. GlobeSt.com states that major hits from severe weather threats to CRE Owners come from lack of very specific kind of insurance coverages: Loss of Rents Coverage; and Law and Ordinance Coverage.
CRE OWNERS, BE WARNED, BUT BE EVEN MORE PREPARED
CRE Owners in affected areas, like Miami, are walking a tight rope hoping they don’t fall, when they opt out of certain insurance coverages for their buildings.
According to Evan Seacat, Senior Director at Franklin Street Insurance Services in South Florida, owners “do not want the added premium.” Owners would rather take the risk than pay for loss of rents coverage which protects against loss incurred when tenants have to be relocated due to hurricane damage to the building. Law and Ordinance Coverage “requires that a building be rebuilt to current code if at least half the property is damaged.”
The picture Jennifer LeClaire paints in this article with storm prediction information coupled with CRE Owner insurance trends… is a dim one, better yet, seems like a recipe for disaster, literally. The article’s focus is on the CRE Owner, but makes no mention of how far an ounce of preparation could potentially save the Owner when tenants are taken care of, even if they have to be relocated.
ALERT: CRE Owners Take Heed – Prevent Loss of Rents Utilizing Mobile Technology
If what LeClaire says is true, and Owners continue to opt out of certain insurance coverages, they might consider an investment in communication tools, like ETS’ Instant Alert Application to bolster their communications and precautions procedures with their tenants or the Email Notification System helping to set up preparation and planning tools which could virtually prevent considerable loss in a severe weather event like hurricanes.
Communication is the Mother of PREVENTION
Consider what mobile technology communications can do to notify tenants instantly about emergency procedures, like evacuation strategy, a relocation direction, what to do in the event of power outages, and what kind of back up systems are available. With the touch of a button the CRE Owner/ PM goes from potential victim to master of her destiny, protecting the property, tenants, and preventing loss of rents. Tenants are better informed, prepared, work is seamless, occupancy uninterrupted and the CRE Owner can think about new opportunities rather than how he will pay for missed ones.