Inspections are a crucial tool in the property management business. In fact, they rank as one of the very best ways to protect your income-earning rental property. Do you want your property to grow in value? Do you want to guard the earning potential for this property? Do you want to maintain a healthy cash flow? Of course, the answer to all of these questions is a resounding “Yes!”
Regular inspections – examining the property inside and out to assess its present condition – can do all of that and more. In this two-part series, we‘ll take a detailed look at the ins and outs of rental property inspections.
The WHY of property inspections
Reasons to implement a consistent pattern of inspections include—
- To identify any maintenance issues in a timely fashion so that needed repairs can be made before the concern escalates to a more costly situation.
- To monitor potential safety hazards that could endanger your residents, damage the property, and increase your liability.
- To ensure the lease terms are being followed, the tenant keeps the property in good condition, including agreed-upon tenant-required upkeep.
- To nurture the owner-tenant relationship by demonstrating an interest in the property‘s upkeep, improving both tenant satisfaction and resident retention.
- To encourage tenant accountability. Knowing that inspections will occur creates checks and balances that urge the tenant toward appropriate housekeeping practices.
WHEN should a property owner conduct an inspection?
- A move-in inspection
This comprehensive inspection should include the tenant, once a lease has been offered but before his/her move-in. As the entire property is examined—every room, wall, floor, window, door, appliance, faucet, light fixture, window treatment, etc.—the landlord should note pre-existing conditions such as a dent in a wall, a gouged piece of trim, etc. The resulting report should be signed by both the owner and the tenant, dated, and retained for comparison when the tenant moves out.
- A move-out inspection
The landlord should conduct this walk-through examination on the day the tenant moves out. By comparing the property’s present condition with the move-in inspection report, any damage caused by the tenant while living there or during the move-out process can be noted.
- A routine inspection
A routine inspection conducted every three to six months can serve multiple purposes:
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- Ensures that the tenant is maintaining the property
- Determines the need for routine or more extensive maintenance issues
- Corrects tenant behavior or negligence before it results in significant damage
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- Drive-by inspection
This observational type of inspection will focus on yard and landscape concerns and monitor the property for unauthorized pets, long-term guests, accumulating trash, etc.
Record the findings from all inspections, including detailed notes and photos to document the findings thoroughly.
Join us for next week’s blog – where we‘ll discuss the HOW of conducting rental property management in Part 2.
About Rentals America
Rentals America provides full-service property management for residential rental properties. Our team is completely dedicated to property management and we’re here to help landlords navigate the rental market.
