It is 1:00 am and my cell phone jolts me from my desperately needed sleep. It is the police calling to tell me that a property I manage is on fire. Once I can think straight, and I know which house it is, I am relieved because I know the tenant just moved out and the home is currently vacant.

When I get there it is still pandemonium with cops and fire trucks everywhere.  The fire captain tells me that the fire was deliberately set and apparently lit from underneath the post and pier house.  The homes in this area are extremely close together and it is a miracle that the fire didn’t spread. Someone could have been killed. I have had several tenants cause accidental fires in my career, but this was the first that was intentionally set. Who did this and why? I am pretty sure I know.

I need to notify the property owner and begin the endless work with insurance claims, estimates, and repairs. The property owner is less than thrilled about what has happened but they are seasoned investors who understand that things happen. 

The insurance company calls the next day. She interrogates me as well as everyone in my office. She is on a mission to find out how this happened and I am more than happy to answer all of her questions.  

“Why was the house vacant?” she asks.   

“The tenant just moved out,” I responded. 

“When did it become vacant?” 

“About two weeks ago,” I said.

“Why weren’t you advertising it for rent?” 

“We are still working on cleaning and repairs. The tenant left a big mess.”

“Why don’t you have a For Rent sign posted?” she asks apparently not understanding what I just said.

“I just told you why. It’s not ready to show.”

“The house is old and needed renovating, correct?” she says in a voice that I detect as sarcasm.

“Yes, the house is older and…..” Wait, what?

It took my brain a little too long to figure out what was going on here. At this point, I became irritated and said, “Look, I understand that you are looking for a way to deny this claim, but I didn’t burn this house down, and neither did the owner. I have answered all of your questions but if there are any more, they need to be forwarded to my attorney.” I never heard from her again. 

In a police interview, the neighbor said that they had seen the previous tenant at the property that night – the tenant that we had to evict when we took over management a few months ago.  The police know who the tenants are but nobody was prosecuted.  

The claim was paid and we now have a new tenant in a restored home. 

🔑 Smart investors always make sure they have insurance.   The really smart investors hire Property Managers that race to fires at 1:00 a.m.