Landlords: Be Prepared for Flood Damage

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Worried about flood damage? If not, you should be.

While you may be able to postpone installing new appliances or curtains, the cardinal responsibility for all landlords is providing a livable home to your tenants. Habitability is legally enforceable in most states, with civil and even criminal penalties in place to add teeth to those statutes. Running water, electricity, a solid structure and safety measures are required for a unit to be considered livable.

Among the worst habitability disasters for rental properties is flooding. From burst pipes to weather-related floodwaters, flooding will wreak havoc on your property. Utilities may be damaged or dangerous to use, floors and cabinets may need to be replaced and the building’s structure may be compromised. Mold can consume the entire house, requiring full demolition. Tenants won’t be required to pay rent, and in some cases, may need to be relocated. In short, the costs of flooding can quickly skyrocket for landlords.

Here’s what landlords should know, from waterproofing to flood insurance.

Basement Waterproofing: Your foundation should be properly waterproofed to prevent leaks and floods. Check your foundation for cracks or signs of moisture. If you suspect there’s a problem, have an inspection done. Although costly, an anti-flood barrier can be added. Sometimes, a waterproofing compound can be painted onto the foundation walls to seal them. The basement should also be inspected to check for appropriate drainage.

Storm Doors and Windows: Installing storm doors and windows can help prevent flood damage caused by bad weather. They can protect your rental property from strong winds and rain. As a bonus, they mean lower energy bills for tenants, which means higher rents, and sometimes even energy efficiency tax credits.

Proper Drainage: If water accumulates near your foundation when it rains, you need to look into your yard’s elevation and drainage. The ground should be graded to help water drain away from your building, so it doesn’t end up in your basement.

Rain Gutters: By directing water away from your building, you reduce the risk of a flooded basement. A well-installed rain gutter should have a slight pitch to keep the water flowing towards the downspouts. The downspouts should drain away from your home, and extend at least five feet from your foundation. Rain gutters need to be in good condition and clear of debris to give effective flood prevention.

Sump Pump: A sump pump can help keep a basement dry. The pump is installed in the lowest part of a building’s basement in a sump pump pit. When it detects water underneath the building, it activates and pumps the water away from the structure. Make sure your sump pump is in good working order and has a source of backup power.

Emergency Power: If your rental property is in an area prone to flooding and power outages, consider investing in an emergency power source. A generator, for example, can be used for emergency backup power for the sump pump or heat system. For a few hundred dollars, your emergency power source can help prevent flood damage from a water backup or frozen pipes.

Warning System: You can have a water warning system installed in your rental properties. Some home alarm systems include basement flooding alerts, or a stand-alone alarm can be purchased and installed. These alarms alert you right away if there is any flooding, hopefully minimizing the damage. As this technology improves (and drops in price), they are becoming integrated with smart home systems that communicate with your smartphone.

Plumbing: Inspect all pipes, sinks, toilets, baths and showers for signs of damage or leakage. Don’t forget to check the water lines for washing machines or dishwashers. Consider installing automatic washing machine shutoff valves to prevent flooding from a broken valve or hose. Specialty floor trays can also be placed underneath appliances to catch leaks.

Elevate: If you are in a flood-prone area, you can have your furnace, hot water tank and electrical panel elevated above potential flooding levels. This can reduce flood damage if water gets in.

Flood Insurance: If water does get in, flood insurance can help minimize your costs. Even though flooding is one of the most common natural disasters in the United States, most insurance companies don’t automatically cover flood damage. It’s a good idea to review your current insurance policy to see if flood insurance is included. If not, call your agent for a quote. If flood insurance isn’t offered by your insurance company, the Federal Emergency Management Agency (FEMA) can provide you with the names of local agencies that can provide appropriate coverage.

Staying above water is the best way to prevent costly flood damage. Flood prevention and proper flood insurance coverage are key to protect yourself and keep your tenants happy.

Have you ever had a flood in one of your rental properties? What do you do to protect yourself from the cost of flooding?

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