Climate change has led to so many natural disasters, which affects nearly everyone in some capacity. Whether people deal with hurricanes, tsunamis, earthquakes, volcanoes, or major forest fires, the threat of facing a natural disaster is greater than ever before.
As a result, many investors are looking into climate-resilient design and adaptations to protect their real estate. Not only does this help to keep homes and businesses functioning after a disaster but it also gives tenants peace of mind. This is an important step towards protecting valuable assets.
Assess Your Property’s Risk
You need to assess your property’s potential risk factor to determine the likelihood of it being struck by a natural disaster. Losing power effectively shuts a home or a business down and moving an AC unit to a higher floor can ensure that it will not be flooded and rendered useless. Adding additional cooling systems provides a backup if one fails.
It is critical to make sure that your property is resilient and suffers as little downtime as possible. Use a tool such as the climate change risk index to assess your property’s situation and plan ahead. If you lower the risk of your property being impacted by natural disaster, you are protecting your investment.
Adapt Your Property
There are many different ways that you can adapt your property to prepare for a natural disaster. Doing so will protect the value of your asset. For example, properties in hotter regions should have improved cooling capacity and reduced heat exposure. In fact, many native plants in these areas absorb heat and will reduce cooling costs.
When you are choosing an investment property, climate risks need to be a part of the process. Investing now to guard against what could happen will be more profitable in the long run as your property will be more desirable and usable.
Tech to Help Investors Plan for Climate-Related Damage
Tech companies such as Proptech are combining advanced mapping techniques with risk analysis to help investors examine the future impact of climate change on buildings. They can also help develop a plan to lower these risks.
from Jeff Klotz | Real Estate https://jeffklotz.net/the-future-of-real-estate-investing/