Sometimes things just go wrong in your property: the water cuts out, the bathroom floods, the electricity shuts off or the heating fails. In these cases there’s often nothing to do but find your tenants alternative accommodation. Of course, this can be an incredibly arduous and expensive and is certainly something you need to be prepared for. What are your options in this situation and how can you cover the costs?
Make the Call
If something goes wrong you need to speak to your landlord insurance provider and they will advise you how to proceed. Normally you’ll be required to put your tenants up in a hotel temporarily and if more permanent accommodation is required they can be moved on from there. You’ll also need to let your insurer know you are now in possession of an empty property and you’ll need to take out unoccupied property insurance.
Get the Repairs Done
In these sort of situations every day is going to cost you more and more money. Don’t delay in calling the right workmen and get them on the job as soon as you can. It may even pay to accept a higher quote for a job that is going to be finished quicker. Usually your insurance provider can help you out with the costs but you also want to maximise discomfort for your tenants.
Use that Reserve
It’s these sort of situations where having some cash in reserve is incredibly important. Whether that’s cash savings you have easy access to or, perhaps, a cheap overdraft or even the facility to extend your mortgage, cash can be really important. If you need it, just use it but make sure you do your utmost to replenish it when the insurance claim comes in.
Emergency evictions are a permanent risk for a landlord and it’s something that you need to ensure you have covered. You can never tell when you’re going to need to do something drastic, but if you’re prepared with a good cash barrier and the right insurance provider then you’re as ready as anyone for that emergency.