Birmingham, Alabama is a great location for rental properties from a real estate investor’s perspective. Thanks to the warm climate and thriving local economy, you’re generally able to keep your rentals occupied year-round without too much effort. But as you’d expect, this favorable setup comes at a price. Birmingham’s terrain and close proximity to the Gulf combine to create the perfect recipe for tornadoes. Indeed, the region is said to experience some of the most devastating twisters that hit the U.S. So, it’s really important that you take precautions to safeguard your rental property investment.

Review Your Insurance Coverage
We should probably start by stressing the need to get landlord’s insurance if you don’t have it yet. This is by far one of the most effective ways to take care of situations that are outside of your control; a tornado being one of them. If you’ve already ticked that box, you need to understand what kind of coverage your policy entitles you to. Does it cover damage resulting specifically from tornadoes? What about third-party liability? And don’t forget about the income you stand to lose while your properties are out of service.

Reviewing your insurance policy will make it clear whether or not you’re adequately covered. If you’re still not sure, you can always reach out to your insurer (or agent) for clarification. Have them walk you through any additional protections that might help secure your investments during the tornado season. The last thing you want is to be hit with a nasty surprise when it comes time to file a claim.

Fortify Your Buildings
As a real estate investor, it’s in your best interest to take proactive measures to safeguard your assets even with sound insurance coverage in place. Follow this checklist to help prepare your properties for twister season:

• Roofing: Your roofs won’t stand much of a chance if that time of year comes round while they’re still in need of repairs, so try to be more diligent with maintenance. Other than that, professionally installed hurricane straps will make a huge difference in their structural integrity, helping them resist the upward-sucking forces typical of whirlwinds.
• Gutters: Having your gutters and drainpipes cleaned regularly is crucial in preventing water damage from the heavy downpours that often accompany tornadoes. Also check that these fittings are stably attached in place.
• Doors: Much like roofs, doors are apt to be ripped off if they’re not properly secured. Garage doors are particularly vulnerable; get them reinforced with metal stiffeners if you have them on your properties. As for the regular entry doors, it might be worth upgrading to steel-reinforced ones that can take a beating during a storm. At the very least, check that your doors are securely anchored in their frames and that they shut properly.
• Windows: Open windows create weak points through which wind can funnel and blow off the roof. To avoid this, make sure your windows shut properly and have them installed with storm shutters. Also, consider installing impact-resistant windows; although they’re pricey, they will provide an extra layer of protection against debris and high winds.

Limit Outdoor Hazards
Flying debris poses just as acute a threat as tornado gusts do. Although debris can very well come from elsewhere and cause damage to your property, you don’t want to leave anything in the vicinity that could get into the vortex. Be sure to take the following measures prior to the start of tornado season:

• Clear the lots: Spend some time walking around the building(s) and take note of potential hazards; this would include everything from toys and tools to furniture and flowerpots. Move these items into a secure area such as a garage and get rid of anything that’s no longer in use. Use anchor bolts to secure large pieces of furniture, dumpsters, and other objects that cannot be stowed away indoors.
• Trim vegetation: If your property has a few trees/shrubs in its vicinity, you’ll want to have them trimmed on a regular basis. Ideally, you want the branches to stay as short as possible, especially if the vegetation is within touching distance of the building.
• Check fence posts: Like other pieces of outdoor decor, fence posts and railings only look pretty when they’re securely sat in place, as opposed to being flung through the air. So be sure to check them as part of your yard maintenance routine.

Invest in Safety
As part of the commitment to provide safe living quarters for your renters, generally, you should have a designated tornado shelter within your property. This is best located at the lowest level of the building. However, you can also take advantage of other areas that are structurally sound; think closets and other rooms devoid of windows. Be sure to notify your tenants of these shelters and provide tornado survival kits if possible. A basic kit can include a flashlight, batteries, and first aid supplies. Have your tenants make their own arrangements if you’re not able to provide these kits.

Also note that, besides the immediate threat of physical damage, a tornado can create a recipe for other calamitous events; picture a gas leak accompanied by a lightning strike or power line short. You can avoid such harrowing scenarios by installing cutoff switches/valves for all utility lines, and see to it that there’s someone available at hand to operate them whenever a storm is approaching.

Be Proactive
It’s a good idea to document the condition of your property before the start of twister season. Take photos of both the exterior and interior, making sure to capture as much detail as possible. Note the exact dates when these photos were taken and save everything for future reference. The information will come in handy when filing an insurance claim for tornado damage later on.

For that matter, you might want to re-think where you keep your important paperwork; property deeds, insurance documents and such. Consider keeping these documents off-site if your office is located within or right next to your property. As a rule of thumb, make backup copies and store them in separate locations.

Keep Aware
The key to disaster preparedness is the ability to recognize threats ahead of time. Make a habit of checking weather reports every couple of hours or so, especially during tornado season, and encourage your tenants to do the same. You’ll even find specialized platforms that’ll let you send emergency alerts to them, so be sure to take advantage of those.  

Of course, a good alert service cannot substitute the need to cultivate a rapport with your tenants. Touch base with them regularly and emphasize that everything you’re doing is in their best interests, as much as it is yours. Make sure you always have their latest contact information at your fingertips.

Once you’ve established the link, it becomes easy to cover the more-touchy aspects; precautions that renters should exercise to keep your property safe. Try to be as friendly in your approach as you can, letting your tenants know how much you appreciate their effort. Also stress the need to heed evacuation orders if they’re issued.

Plan for Displacements
You don’t want to lose the tenants you worked so hard to recruit while the property is being repaired, right? You’ll be relieved to know that generally, part of the additional insurance protections highlighted earlier is coverage designed for just this kind of scenario. Your insurer will cover the cost of short-term accommodation until your property is restored to a habitable state.

Obviously, not every tenant will be open to the arrangement. So, you need to be prepared for the eventuality that they’ll opt out. Alabama laws afford the right to terminate one’s lease with immediate effect if their quarters are rendered uninhabitable and claim prepaid rent and deposits within 35 days. Do whatever’s necessary to avoid being at odds with the law in that regard.

Aim for a Quick Recovery
The whole point of disaster preparedness is to minimize exposure and put yourself in a position to bounce back as soon as possible. But just how soon will you be able to bounce back? It would help to prepare a post-tornado recovery plan beforehand.

Start by acquainting yourself with a good property inspector; someone you can trust to conduct a quick but proper evaluation once the twister passes. From there, make a list of reliable local contractors and material suppliers. Don’t forget to review your insurer’s claims procedure while you’re at it — the journey to recovery will only commence once you’ve been compensated. Once again, knowing what to expect here will minimize the risk of running into unpleasant surprises.

Summing Up
As someone who owns investment property in a tornado-prone region, you cannot afford to take any chances. The last thing you want is to find yourself totally exposed when a tornado hits. Hopefully, as you follow the steps we’ve just outlined as you take steps towards preparedness, you will be able to be in a better place when disaster strikes.

Give us a call today at 205-417-1475, or contact us online with any questions about property management in Birmingham. We look forward to hearing from you!