Emergency Response Planning Guide
An effective emergency response plan identifies hazards, mitigation and defense strategies, preparation steps for action specific responses, and recovery procedures for return to normal living and operating conditions. The Covid-19 public health pandemic has underscored the critical nature of being prepared to adequately respond to new, unexpected conditions, the ability to revise practices quickly as conditions change, and to meet the challenges of uncertain outcomes and unprecedented events. For many landlords there may be a “new” normal of business operations when pandemic restrictions on work and daily activities are lifted. Building upon a general emergency response plan, a landlord can add additional measures that address issues related to COVID-19 mitigation efforts, health and safety protections for tenants in residence, and procedures for business employees to safely conduct essential business operations. As information is shared by public health agencies, emergency management agencies, and federal, state and local government officials, a landlord can incorporate required coronavirus mitigation practices and directives into his plan of action.
General Emergency Response Plans
Business risk is inherent in rental housing operations. If risks cannot be prevented, then risks must be managed through a plan of action for mitigation.
A landlord, prepared with an action plan, hazard specific as possible, can help protect the health and safety of tenants, reduce property damage, and provide for business continuity.
Being ready to respond to emergencies requires planning for various and diverse contingencies such as severe weather, medical emergencies, power outages, third party acts of violence, and environmental hazards such as fire, flood, and other natural disasters. The Covid-19 pandemic, a public health threat, is a new contingency requiring a landlord to take additional due diligence measures for the health and safety of the community as a whole, his tenant population, and his employees.
The detail and scope of a landlord’s emergency response plan is customized to the identified risks assessment, the complexity of his business operations, business locations, and tenant populations. An independent landlord with a single rental property may develop his plan in a much different manner than an owner with multiple rental properties and/or multi-family housing units.
Identification of business risks is an important first step in developing an emergency response plan. Landlords should use a worst case scenario planning approach. What could possibly happen? What are the likely events that could cause business interruption? Is there a history of events that damaged or harmed the business? These known risks and potential risks should be evaluated as to the level of risk that each event could present to the business.
Every rental property is unique and houses a diverse tenant population. The emergency response plan should address being prepared to assist tenants of varying ages, levels of physical conditions, mobility challenges, hearing or vision impairments, special needs, or adaptive living devices. There may need to be accommodations made or alternative communication devices available to provide the level of service to protect a vulnerable population.
An effective plan will address issues of responsibility, authority, and communication. The plan is the guidance for the policy, procedure, and practice of tenant safety measures. Tenants need to know what to do when an emergency arises, how and who to contact for information, how to handle an evacuation or sheltering in place, and what to expect when the situation has been resolved and the property cleared for return and resumption of living activities.
Tenants should be provided contact information for the landlord or property management company for business hours and after-hours emergency help, the telephone numbers for emergency services for fire, police, hospitals, ambulance, poison control, utility services, and local disaster relief agencies and shelters. For tenants in multi-family housing properties there should be an established procedure to alert tenants to shelter in-place or evacuate to the nearest sheltering location as required by emergency conditions.
Adequate business insurance coverage is important to protect business continuity. In evaluating business risk, appropriate levels of business insurance should be in place and coverages customized to help protect the landlord from identified risks. If allowed by law, renter insurance coverage should be required of tenants as part of the landlord’s lease terms and conditions and the landlord’s risk management practices.
Previously published articles have discussed the need for landlords to have adequate financial reserves for unexpected expenses and/or loss of income. Generally reserves are for damages or repairs to physical structures caused by a natural disaster. There is a new concern for some landlords who worry their cash reserves may not be adequate to handle unexpected rent defaults. For many landlords business continuation depends upon a stable rental income. The pandemic has directly impacted the earnings capability of many tenants and some tenants have already defaulted on their rent obligations. Business disruption from rent defaults could have a serious impact on long-term business operations. Some landlords do carry insurance coverage for business disruption or loss of rents coverage, but tenant rent defaults due to the pandemic may not be a covered peril. A landlord would need to contact his insurance agent to fully discuss his particular situation and determine full understanding of his coverages.
As part of the planning for emergency response, a landlord must understand the legal obligations under most states’ landlord-tenant statutes regarding the warranty of habitability. Landlords are required to offer and maintain leased premises in a safe and sanitary condition fit for human habitation for the duration of the lease. Habitable conditions include essential services. If an emergency results in disruption, damage, or destruction of property or services which could threaten the health, safety, or well-being of tenants, the landlord and tenant have certain obligations by statute and lease agreement regarding legal rights for repairs of rental units or termination of the lease.
A landlord has the duty of care to take adequate measures to protect the safety of the tenant and his possessions from known risks. A landlord may incur liability or charges of negligence if the landlord’s response is inadequate or untimely during or following emergency conditions.
Accordingly, the landlord’s emergency preparedness plan must provide for appropriate measures in timely response to critical needs in hazardous conditions.
COVID-19 Pandemic – Emergency Response Considerations
Landlords should follow their prepared general emergency response plans as appropriate to the circumstances. As new guidance and directives for COVID-19 mitigation are issued, landlords should incorporate them into the general emergency plan. The health and safety of tenants and employees is best protected by staying informed of the latest directives and best practices issued by the Center for Disease Control (CDC), public health officials, regulatory agencies and federal, state and local governments. By staying current with latest information a landlord can better assess risks and develop appropriate strategies for mitigation.
Landlords should determine their obligation under applicable disclosures and regulations to notify tenants if a tenant or an employee with tenant contact has been diagnosed with COVID-19. Landlords have a legal responsibility to protect the privacy and confidentiality of personal information of tenants and employees if confidential information has been shared with the landlord.
All Plans
Developing an adequate, effective emergency and disaster preparedness plan requires an understanding of the planning process with periodic evaluation and plan revision to changing conditions and environments.
Knowing how to respond during the emergency is critical in protecting lives and reducing the impact on business. While it is unlikely that a landlord can be prepared for all contingencies, it is very likely that a landlord’s emergency response plan can help him be ready to respond quickly when an unexpected event does occur. No business should risk operating without a disaster plan. Whether an owner-manager of a single-family rental or a property management company with multiple units under management, it is important that a landlord or owner be prepared for disasters that can affect his business. It is particularly important to be prepared for events that can put a landlord out of business, whether for a short time or permanently. How quickly a business is able to get back to doing business after a natural disaster or declared emergency condition may depend upon the emergency planning and preparation conducted before the event occurs.