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Page 18 — Property Management Quarterly — October 2017
Management
D isaster planning is para-
mount in property man-
agement. An example of
the importance of emer-
gency response planning is
explained in the following scenario.
A restoration company is retained
for a five-story flood in a 14-story
condominium property construct-
ed in 1958. Thirty-five units are
owner-occupied and 23 units are
tenant occupied. The flooding was
caused by a washing machine that,
per the homeowner association
bylaws, was not permitted to be
in the unit, but was snuck in. The
unit was leased to tenants and the
owners lived out of state. The prop-
erty management team is local to
Colorado. Certain questions arose
during the mitigation process:
1. Who was allowed to sign off on
the asbestos testing?
2. Are the tenants allowed to
remove drying equipment or are
there penalties in place by the HOA
by-laws?
3. Will asbestos testing be
required on all of the impacted
areas?
Remediation and mitigation
companies in Colorado are not per-
mitted to perform cuts in drywall
without the structure first tested for
asbestos, unless the area in ques-
tion already has been mapped or
tested and come back negative for
asbestos.
Structures, both commercial and
residential, built before 1980 often
are filled with asbestos, needing
only normal usage and age (wear
and tear) to disturb the fibers and
send them airborne. Asbestos can
be found in almost
all construction
materials, floor
tiles, roofing mate-
rials, furnaces,
plumbing materi-
als, appliances,
fireplaces and win-
dow caulking. This
means most every-
one is vulnerable
if the materials are
disturbed.
There are some
circumstances
where testing will
not be mandatory.
There must be proof that the build-
ing was built after Oct. 12, 1988,
and the architect or engineer who
built the building is required to sign
and submit documentation show-
ing that no asbestos-containing
materials were specified or used in
the construction of the building. If
both of these requirements are not
met, the structure must be tested
for asbestos, regardless of age. Any-
thing prior to 1978 also must be
tested for lead.
Restoration companies require
the owner of the property or a legal
representative to sign off giving
permission to perform the work in
question, including the asbestos
testing. It can slow down the dry-
ing process when the location of
the owner and those details aren’t
known. This also can result in more
long-term and expensive ramifica-
tions such as mold.
Additionally, tenants are afforded
certain rights by law. Tenants are
guaranteed the following:
• Nondiscrimination. The Fair
Housing Act, first passed in 1968
and since amended, prohibits dis-
crimination based on race, color,
origin, religion, sex, familial status
or disability. The Fair Housing Act
applies to both renting and selling
real estate.
• Quiet enjoyment. The tenant has
the right to reasonable freedom
from being disturbed by the land-
lord. Unless there is an emergency,
such as a fire or natural disaster,
the landlord needs to give the ten-
ant prior notice before entering the
premises.
• Habitability and repairs. Land-
lords have the responsibility to
make sure that the rental is safe
and habitable, as well as fix any
major problems that make the
property less livable.
In this flood scenario, the land-
lord, which was a property man-
agement company retained by the
HOA, had an obligation to make
sure the units were safe and livable.
The tenant in the unit that caused
the flood was giving the restoration
company push back about enter-
ing the premises to ensure that the
leak was contained and being dried
correctly. Other unit owners and
tenants affected also were remov-
ing drying equipment when units
weren’t completely dry – again,
opening the door to potential mold
and more expensive mitigation
work. Statutes can be put in place
to require cooperation in the event
other units are at risk of being
impacted by a disaster.
It is very important for property
management companies to retain
good records of all unit owners’
contact information and to main-
tain a network of contractors. It
can sometimes be tempting to
allow one company to do most
of this work and then turn your
attention somewhere else. Keep in
mind that it is common for condo
associations to get disgruntled
with contractors at some point. By
having a strong network, you will
be able to replace poor contractors
with better quality ones quickly. At
the same rate, if the disaster is of
monumental proportion, it is wise
to have various resources available
to you.
It also is important to set proper
bylaws. If, for instance, renting is
permitted, some state and federal
loan programs require a set limit of
renters versus owners. The Federal
Housing Administration requires
over 50 percent of units in the
association be owner-occupied. The
condo association also may dictate
owner-occupant ratios in its rules.
Renting may be allowed condition-
ally or more openly, depending
on how many of the other owners
already are renting.
In the situation we were dealing
with, we had a very knowledge-
able property manager who knew
the pertinent contact information
for the owners of the units. This
enabled the restoration contrac-
tor to move through the process
efficiently and handle the drying
issues without further problems
occurring. It also encouraged coop-
eration between the property man-
Brandi Peppers
Regional account
executive,
American
Technologies Inc.,
Denver