Earthquake Strengthening

In the last year Earthquake Strengthening has become a big issue for landlords and tenants alike. Many landlords in Multi-unit residential properties are having to get the building assessed by an engineer and hopefully removed from the "Potentially Earthquake Prone Building" list without too much cost involved. Other landlords may be faced with costly strengthening work which may result in large periods of vacant properties, the building may get stickered which would put off potential tenants or as a worse case scenario insurance companies may refuse to ensure the building.

We are dealing with several owners where the Body Corp Committee or chairperson was left in charge of dealing with getting the building assessed. In all but one case the Body Corp has dropped the ball and are totally unaware of the implications of not getting the process up and running as soon as possible. These building are all due to be stickered during peak letting season and I will hate to think what impact this will have on rents and vacancy levels. We believe in being open with tenants about the building they will be living and will be discussing with them the status of the building. Unfortunately there is a lot of fear out there when it comes to Earthquakes. Just because a building is stickered does not mean it it will fall over in an Earthquake. Getting a tenant to understand this is another matter.

Buildings that are currently on the "Potentially Earthquake Prone Building" List are typically buildings that are over 2 storeys high are commercial or multi-residential and were built prior to 1976. Your building could still at risk if it is a single unit dwelling or a house that has been split into several units. The Council will be moving on to creating a list for residential dwellings in the next phase of their Earthquake Prone Building Policy.

So as an owner of an investment property how can you mitigate your risk? As a designer in a previous life I came across many people who renovated their homes. They replaced old scrim walls with plaster board, made small alterations and additions and removed wall in the home with out getting building consent. (After all the walls weren't load bearing) On properties where I was asked to design and prepare consent documentation I always found it difficult to comply with the current building code in regards to earthquake and wind bracing with out relining several walls. If you are considering any work to your property, especially if you are relining or painting walls, take the opportunity to upgrade the bracing of the building and bring it up to current code. You may find that it is cheaper to install the required bracing now then do it down the track when the council requires it to be done.

What we're doing for Earthquake preparedness

February we were rocked by Christchurch, in March, Japan. It’s really hammering home the ‘be prepared’ motto of the scouts.

We are getting enquiries from people looking for safe houses due to concerns about earthquakes.

What have we done to be prepared? We have prepared a basic survival kit at the office of course (and our homes), but we also need to think of our tenants. In emergencies like these, tenants will have issues with properties and need assistance, and we will be the front line for dealing with it. Unfortunately, we are likely to be affected by the event too, and may not be able to travel to work until it is safe.

So, we’ve devised a plan that will enable us to help from wherever we can get electricity, phone coverage, and internet.

We are switching the software package we use to one that can be run from ‘the cloud’ (which is a fancy name for ‘on the internet’) should we need to operate away from the office. We have some internet-based phone lines to keep the lines open should landlines go down, and cell phones of course.

We are advising tenants and owners that any emergency updates can be found on our Facebook page. This will enable tenants and owners to report on their status and that of their property, and is an open forum to create a helping network. We have a plan to check properties for safety, and track tenants who have disappeared to minimise confusion at such a difficult time.

We are advising owners to ‘quake safe’ their properties to minimise damage. Chimneys falling have been a significant hazard during quakes. Hot water cylinders ‘walking’ has been another.

We’re also offering help to those in Christchurch. We’ve publicised available properties for those affected by the quake and wanting to get out of Christchurch. We’ve offered breaks away for the property managers down there, and to relieve some strain of the work they need to do. Many have offices and staff severely affected.

Are we over reacting? A recent visit to Plimmers Ark in the CBD reminded me that a magnitude 8.2 quake struck Wellington in 1855, causing significant changes to the landscape (ever wonder why the ‘Basin Reserve’ is called that? It was going to be a shipping basin prior to the quake raising the land at least 2m in the CBD, changing plans to a cricket ground instead. The damage to brick structures explains why the old Government Buildings, opened in 1876, was made of wood, albeit in the style of stone. The motorway to Petone would never have been built had the land not emerged from the sea – it used to be impassable at high tide). If it happened before, it could happen again. Are your properties taken care of by people who care what happens to them and your tenants should the worst happen?