Here’s how property management has been affected by all these odd events.
How do natural disasters, black swan events, and other strange things like that affect property management? In 2020 and 2021, especially in Texas, we’ve experienced many crazy events. Of course, things can always happen to a home, such as a tornado hitting it. However, for the most part, property management hasn’t been affected by all the strange occurrences of the last year and a half.
Though we recently experienced pipes breaking and flooding in houses, these things don’t happen often. In our portfolio, only 1% of homes were flooded in the recent storm, and between 2% and 3% of houses’ pipes broke, but the houses didn’t flood. For these types of events, it’s crucial to have insurance; if you own rental properties, you either need hundreds of thousands of dollars to cover damages or have insurance.
It’s crucial to have insurance.
Usually, homes increase in value, unlike a business that could go out of business or the stock market, which could go down due to unforeseen events. Typically, people still have to pay rent, so it’s a fairly steady income for you. Everyone needs shelter, so even in a crisis, it’s essential to people. Even during the pandemic, 98% of people have been able to pay their rent; they may have gotten assistance if they lost their job, but property owners still had that money coming in.
If you’re considering buying a rental property, it’s a great investment, especially if you have insurance for safe investing. If you have further questions about this or any other property management topic, please give me a call. I would love to help you.