As we progress to the summer migration, it’s time to review a few myths about leaving a property empty. Here are some of my favorites that have proven themselves time and again:

Myth: I have cameras so don’t need anyone looking after the house. This is a huge misconception among the tech savvy. Installing cameras has some positive points that should not be ignored. But what is the purpose? If it is security, you need to have someone watching the cameras all the time. Sure, you can go back and find where someone broke in to the house on your recorded data, but that does nothing to contact the authorities, etc. If the purpose is to ensure the safety of the house, you have the same problem. A fire that is recorded is cute but ineffective. Will you be able to see mold grow? Will you be able to see broken windows? Mildew in closets? A slow leak that is creeping through the living room carpet? A failed appliance? Videos are neat but can only assist in monitoring an empty home, they are not the answer.

Myth: We’ve never had a problem just closing it up for the season. This myth requires more investigation but comes out totally false. When you actually inquire of homeowners who have left their property completely unattended, they will tell you a fire has never burned down their house nor have thieves broken in. But when you ask about air conditioning failures, bug infestations, bad odors when toilets dried up, and similar examples, the stories will start to flow. The reason they believe they have never had problems is that they assume all these issues that come out are actually just part of owning a seasonal home. If it’s normal to them, it is not a problem. But it doesn’t have to be like that.

Myth: My house cleaner looks after the property. This myth has several parts. First, most house cleaners do not own their own home. So they probably do not have the experience to manage yours. They have no method of recording what they look at, they just walk around and look for fires and floods. How often can you document their efforts in your home? Who will you call when the house cleaner is out of town? They all take well-deserved vacations, whether for a few days over a holiday to a couple weeks with the kids. How will they take care of your property when a disaster strikes knowing their home will take first priority? And finally, what is their motivation? Do they agree because they are afraid you will drop their service if they don’t agree? Not the best motivation for someone to manage a property worth hundreds of thousands of dollars. And of course, they have no insurance…

There are many myths about leaving a property for the season. This is just the shortest of lists. What myths have you uncovered?

Seasonal residents rarely consider the full potential of a major catastrophe. Unlike Japan, you may not be at risk of earthquakes and tsunamis, but every location has some potentially destructive event, either natural or man-made. Fires, burglary, tornadoes, hurricanes, massive lightning strikes- no matter the location, you get to enjoy something unusual off the weather menu! When a loss occurs and you go to use your insurance, you will recover a lot more if you can document exactly what was lost.

Not all losses will be total. Your insurance has various levels of coverage. If the house is completely obliterated, there is little need for a home inventory. You will be reimbursed the full amount of your coverage. No documentation needed. This total loss is the exception, though. Usually the losses are much smaller. Now is when your home inventory shines.

A Home Inventory is a complete listing of every article in your home, the date it was purchased, it’s value, and other documentation such as receipts, valuations, proof of signatures (in the case of artwork) etc. Anything that can assure the insurance company of the value of the lost objects. Pictures alone won’t cut it. If you don’t have a list, they will require you to submit one- they will not interpret pictures.

You have choices for your inventory. You can take a few pictures and falsely assume you are done. Then, in the midst of the the crisis, you can search each picture and try to document each item that was lost and it’s value. If the insurance company disagrees (“We think that is an $80 print that was lost, not an actual $1600 original piece of signed art”), you can spend hours and hours of research and lawyers trying to make your case. On the other hand, had you done a proper inventory once, you would be covered. While your family is shaken from the intrusiveness of a burglary is not the time to try and sit down to write out lists. You are bound to forget items, underestimate their value, and essentially short change yourself.

Home Inventories can be a do-it-yourself project. You can take a weekend to do it right.There are many computer program available to help with the record keeping. A good camera, light box, and two people can accomplish a home inventory in a couple days.

Or you can hire a professional to do the home inventory for you. A full documented inventory, where you get the results in a digital format, should run $400-$800 depending on the size of the house and the contents. Large collections, lots of jewelry,  and antiques will naturally increase the time requirements and cost. A professional should be in and out of the house in about 4-6 hours, bring in all the needed equipment,  and will return a completed digital inventory with a week. In addition to the time saved, you also get the ability to stand aside and ensure everything is properly documented instead of being up to your eyeballs trying to do it yourself.

No matter which choice you select, this is generally a ‘once-in your life’ necessity. You can always add and remove significant items on a yearly basis. But once it is done, you are pretty much set for many years. And the biggest advantage? Insurance industry studies have shown that those ho have a home inventory get, on average 20% MORE in their claim than those who don’t. That means it could easily pay for itself in a single claim. Ask your professional home watch service if they offer either a DIY kit or a professional home inventory plan. This is an essential part of being a seasonal homeowner!

As this season for snowbirds heats up, I have been invited into many beautiful homes.  These homes are all over the value range, from $150,000 houses of 12oo square feet to huge retreats worth millions and several thousand square feet in size. The most incredible part of this adventure has been realizing that most people have no clue what their house value really means.

Although the person with the less expensive home appreciates the snowbird experience just as much as the high end, both just consider it ‘just a house’ when they start looking to have it maintained properly. In reality, it is an investment they have made. Whether in life style, actual real estate investment, or the equivalent of a retirement fund, the investment is more valuable than many of their other assets. But they see it as a basic hotel room. How do I know? Simple, look to see who they have used to watch or manage it and how they believe they should choose a home watch service.

Anyone who uses a maid to watch a $250,000 investment fails to understand the potential losses as well as the actual value of the investment. Because the owners live there, they assume there is no knowledge or experience required. I don’t want to harp about this too much because it is covered in other blog posts, but maids, cleaners, petsitters, friends and neighbors, are not the way you manage a huge investment. Would you turn a portfolio of stocks and bonds over to one of these for six months? So why do people do it? Simple ignorance of the systems and ongoing maintenance needs of a home.

So when they start looking for a professional, usually because they had a problem that really burned them, they want someone cheap.  The maid was cheap, why shouldn’t a home watch service be? In my book, “Leaving Your Home-ALONE”, I specifically list price as the last item to consider. Do you shop for the financial guy for your $250,000 portfolio by price? Doctors? There is only one reason to shop by price when choosing a home watch service- you believe there is no difference in services ie it is just a commodity that can be done by anyone.

If instead, you do some research and determine the differences, you will see that the value of a great service far outweighs any additional cost. I chuckled recently when a small homeowner invited me over and had me discuss what my business offered. When we reviewed the entire package, explained what made us unique, and noted the unique bonuses that we offered during the current sign-up season, he was very interested. But at some point, his wife convinced him that they only wanted to pay X dollars per visit and my monthly rate was higher. Some simple math showed that their rate-per-visit scheme was actually more expensive over their 7 month holiday than my service (because we offer unlimited free post storm visits) and fell well below the added benefits, proven reliability, etc. Sadly, they were so hung up on this ‘cost per visit’ that they left an opportunity behind to have their problems solved.

Are you searching for a home watch service with a pay-per-visit mentality? I beg you to look at your home differently, to recognize it’s value, and the loss of time and money that would accompany any problem. Price is certainly worth considering. Consider this: If your financial advisor approached you and offered to  manage your portfolio for less than .001 of it’s value each month, would you do it? Most would jump at it! And a professional home watch service costs a whole lot less than that.