This morning my office got the dreaded call that you never want to get that there is a fire at one of our rental properties, and they have just called the fire department. Preliminary indications were that no one was hurt. That’s good.
This particular property, which is a duplex, is one that our office managed for another owner. We call the owner right away because you need to notify the insurance company ASAP so that you can get a claim working. Especially since we are so close to Christmas. You definitely want to get that claim working before the insurance company shuts down for the holiday.
The fire marshal calls to tell me the fire was confined to the attic. It started around a chimney flue.
I decide to go down to the property to inspect the property to assess the damage. In retrospect, I should have taken a camera to get some photos. That will be the first order of business my next trip to the property. I approach the property, and I by the number of emergency vehicles and the flood of water coming down the street from the property (it was not raining), I know that we have major damage on our hands.
I see the gas company carrying gas meters from the house to there service truck.
As I walk up to the house, I am greeted by a Fireman who tells me neither unit is habitable. They have ordered that all utility meters to the property be pulled.
I see one of the tenants, the one who phoned in the fire, looking on. Even though it is obvious from the damage to their unit, I make it very clear to him that they cannot stay in the unit. I tell them they can come to our office later to claim their security deposit. I also pay them the prorated rent back to them for the rest of this month.
I make sure they have a plan. In fact, they have made arrangements through red cross to get a hotel room that night until they can find something else. I make certain they will be back the next day for the rest of their items. This is no time to be a hard case with the tenant about refunding their money. The sooner they have their stuff out our of the property, the sooner you can get the property back in service.
I make a call to my office, and have them call the other tenant to let them know they will have to move immediately because of the fire damage. My lease has a clause that allows me to cancel the lease in the event that the property is made uninhabitable due to fire.
I get in touch with the insurance company and the contractor who will do the renovation that day. I make arrangements to meet with both at the property the very next day.
The name of the game is to move quickly when it comes to a fire situation. Be decisive. Be fair with the tenant (refund their money).
December 24th, 2008 at 1:54 pm
Hi Scott, Sorry, I’ve been through this with my own home, it’s devastating. Thank you for sharing info on how to handle a rental fire situation. Hope I never need to use it. Merry Christmas, Jean Wiggins
PS…The buyer who wants to do owner carry hasn’t called me back.
December 25th, 2008 at 10:56 pm
Wow, Scott! I’m glad everyone was okay and things worked out as well as they did, even though it sounds like there is probably considerable damage to the property. I appreciate your sharing this with me. I’m sure this information will come in handy for me some day in the near future!
Judith
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