CREJ - Multifamily Properties Quarterly - May 2017
Living in Colorado, we have many reasons to be thankful. As you run through your mental checklist of things you enjoy about living here, not having to worry about events like hurricanes and earthquakes may not even cross your mind. Because we aren’t susceptible to many of the large-scale weather disasters like other areas of the country, there is a tendency to become complacent. However, we still need to be prepared for Mother Nature’s curve balls. Flooding from rain or snowmelt, for example, or damage from tornadoes, wildfires and hail-producing storms are very real threats for this area. Consider last year’s July hailstorm, which was the sixth-most damaging hailstorm in Colorado history. This storm alone caused approximately $352.8 million in damage to the Colorado Springs area. Mother Nature isn’t the only one throwing curve balls. Non-weather related disasters are another concern. Accidents and disasters that take place on a property are commonly caused by people. Flooding from a bathtub, an overflowing toilet or a grease fire in the kitchen are all accidents that occur more often than you think. In fact, when we respond to a property that has fire damage, often the fire was either kitchen related or caused by a cigarette. With these causes in mind, here are a few tips to help ensure a quicker recovery after an unforeseen disaster: • Ensure safety of residents and site personnel. The No. 1 priority after an event is making sure everyone is safe in and around your property. Be sure to get an accurate headcount of residents, visitors and personnel so you can try to account for everyone who was on site when the event happened. Immediately notify emergency personnel of injuries or any unaccounted people. • Have a plan. Having a plan in place before disaster strikes will not only help you to react quickly and improve safety, but also will help to minimize business interruption and speed-up recovery efforts. We recommend having a disaster recovery plan that is shared throughout your organization and is embraced by the on-site facilities team. At minimum, this plan should include a list of key contacts like plumbers, electricians, public service companies and site-specific contractors who are familiar with the property and can get to work fast to minimize damage. This plan also should include procedures for how to handle reporting an emergency, locations of major property mechanics and unit floor plans. Site teams should hold regular trainings and drills to ensure staff remain calm and make the right decisions in difficult situations. Disaster plans should focus on the types of events that are most likely to occur year-round, as well as include special business considerations (i.e., if your property has undergone recent renovations). The plan needs to evolve as your business ages and should serve as a living, breathing document that’s consistently updated. It’s easy for your plan to become outdated, especially when considering employee and vendor turnover, so make sure it stays timely and remains a priority. • Communication is key. Not only is knowing what to do important in an emergency situation, but knowing who to call is critical too. When disaster strikes, it’s imperative for your on-site staff to know who they need to notify. It’s a good idea to have an accessible phone tree in place and to routinely do a test call down to ensure contact information is kept current. In addition to alerting employees, it also is important to consider how you’re going to notify other residents, as well as respond to the media. Without a plan in place, it can be difficult to communicate effectively after a disaster. Ideally, you should establish an external communication protocol that includes the following details: •Identify and mobilize a PR/communications spokesperson to be “out in front.” •Determine if and when your company will be providing interviews to the media (and who will be given the task), and how often your company will update social media streams and websites. •Assign staff to reach out to public aid organizations, such as the Red Cross to assist residents affected by the emergency. • Expect surprises. Even the best laid disaster recovery plans aren’t foolproof. There inevitably will be unaccounted for scenarios or circumstances. When this happens, take note and use the information to update your organization’s plans so that everyone will be better prepared for the next curve ball thrown your way. The more planning you do up front, the more competently you and your team will perform in the heat of the moment. If you don’t already have a disaster recovery plan in place, don’t let the idea of putting one together overwhelm you. Qualified disaster response partners with a proven history of working with multifamily properties should be aware of the nuances of the industry and can help you build a good basis for your plan. After all, knowing what to do and who to call after a disaster can make all of the difference in a speedy recovery.