Being a condo landlord in Miami, Florida, can be lucrative with the right property and location. However, the city is becoming more prone to significant hurricanes, which can put your building at risk of storm damage.
It is essential to assess the most vulnerable areas of the building before and after a storm. Doing so can ensure your property remains safe for tenants, doesn't rack up expensive repair costs and prevents rental income loss.
On the Beaten Path: Florida-Bound Hurricanes Intensifying
Experts have attributed worsening climate change to intensifying hurricane seasons. Unfortunately, Florida has been in the line of fire, with an uptick of major hurricanes battering its coastlines over recent years.
Miami, in particular, is not a stranger to these tropical cyclones, which bulldoze its infrastructure and leave a soaked mess in their wake. In 1992, Hurricane Andrew made landfall as a Category 5 storm, reaching 165-mile-per-hour (mph) winds, destroying 25,000 households and leveling 99% of Homestead's mobile homes. The damage left over 160,000 people homeless and took 65 lives.
Although Florida's west coast has endured most major hurricanes in the last few years, Miami still gets its fair share of rain and wind. Because the beloved Magic City is at sea level, hurricane winds don't weaken quickly when the storm reaches land. Even 2004's Hurricane Charley brought significant wind damage to Orlando, 100 miles from where it made landfall.
Scientists are worried about the future trends of these major hurricanes, now appearing earlier in the season than ever before. Some researchers are trying to define a Category 6 storm on the Saffir-Simpson scale. Currently, Category 5 is the threshold, with peak winds of 70-86 meters per second or at least 157 mph.
Why Should Landlords Identify High-Risk Areas for Hurricane Damage?
Miami condo property managers will want to avoid potential damage in high-risk building areas before a hurricane barrels through. These storms can send wind-blown debris and water toward your property, causing flooding, power outages and business disruptions. The effects can also put your tenants at risk of injury.
Although Florida doesn't require landlord insurance, it can cover your dwelling for theft, bringing the building up to code, builder's risk insurance and workers' compensation. Depending on your policy, it could also include rental income reimbursement if you lose business from property damage.
One thing it won't cover, though, is natural disasters — landlords must purchase separate insurance to protect their property from hurricanes. Landlord insurance is 25% higher than regular homeowners insurance policies. In the Sunshine State, it is likely just over $2,800 annually.
Unfortunately, flood insurance is more expensive and becoming harder to obtain in Florida due to the withdrawal of many insurance companies.
The average homeowner pays $194 to $3,877 annually for traditional residential flood insurance in Florida, which is expensive for those in FEMA-designated flood zones. Because of this rate, only 43% of residents purchase a policy. Yet, not carrying this type of insurance puts your condo property at significant risk of damage.
The 3 Most Common Building Areas Affected by Hurricanes
Identifying the most vulnerable building areas likely to endure hurricane impacts is the best way to prevent costly repairs, safeguard your business and protect tenants. Check these three commonly damaged places to save money and your sanity:
1. Roofing
Step back from the building to assess whether the roof needs repairs before hurricane season starts. Without sturdy roofing, your condo building could endure significant wind and water damage, including within the units.
Your roof may have even undergone wind impacts in a previous storm without you realizing it. If you can spot isolated damage — like missing, cracked or curling shingles — on less than 30% of the roof, you can likely fix it. Anything over 30% may require more extensive, costly repairs or a replacement.
2. Windows and Doors
Property managers should always check the condos' windows before a storm. You might consider replacing them with hurricane-impact windows if they are old and worn. Although these newer models are costly, from $1,908 to $10,707, they can protect the unit against 200 mph winds.
The cost varies dramatically depending on the size, materials, brand and specialty features — for instance, double or triple-pane glass, stabilizer bars or window film. However, you can rest assured their durability will help protect the unit up to a Category 5 storm.
3. Exterior Siding
The condo's exteriors bear significant damage from hard rain and wind. Depending on whether property managers own a unit or the entire condo complex, they may be limited in how they can upgrade the siding.
Nevertheless, wind-resistant paint creates a barrier against water damage during strong rain bands. It is essential to assess the outside of the building for wear and tear. Give yourself enough time to make any necessary renovations to the siding before hurricane season kicks in. Vinyl siding, in particular, can withstand 110 mph winds, making it a viable replacement for older exteriors.
Protect Your Building From Volatile Hurricanes
The last thing landlords want is for their rental property to have extensive storm damage from a hurricane. By examining high-risk areas and improving them before the storm arrives, you can protect your units and save money.
Evelyn Long is a writer that specializes in housing market trends. She is also the founder of Renovated Magazine, where she writes essential resources for renters and homeowners. She has contributed to several other sites like the National Association of Realtors and Realty Executives.