“4 Types Of Property Inspections For Rent House Businesses”
Maintaining a residential property requires care and constant maintenance in order to ensure the longevity of the property.
The idea that most property managers have is that once a tenant for a rental house has been chosen and is ready to move in, then they can breathe easy and step back from all responsibilities.
This, however, is not the case.
In fact, having a tenant rent your property gives you all the more reason to be hands-on. Despite your best efforts to screen potential tenants, you will never fully get an idea of how they are with regards to home maintenance.
Employment history, credit scores, and timely rent payments do not reflect exceptional home maintenance behavior.
This means that as a property manager, you still carry the responsibility of ensuring that your rent house business is cared for and in good condition. This may then lead you to wonder: Are there certain property inspections that you need to conduct for your rent house businesses?
Yes, there are.
Understanding Inspections For Your Rent House Businesses
Routine inspections by the property manager are important to ensure the maintenance of the rent house business. Doing inspections will, in the long-run, minimize the cost of repair and maintenance and prevent escalation of issues. Not only will you be able to easily determine any damages or if the tenants are keeping the property tidy, but this also provides an opportunity to keep in touch with the tenants themselves.
However, before discussing the benefits of conducting inspections for your rental house business, it is crucial to understand what it is first.
What Is A Property Inspection
A property inspection is a non-invasive evaluation of a rental property that is done regularly or on a set schedule. This is usually conducted by the landlord or a trained professional in order to determine whether the tenant is following the agreement for renting the place or not.
A property inspection done right allows the landlord to leave the property with a clear idea of what the major issues are (if there are any!), and if there are any particular items or areas of the house that require immediate notice or maintenance.
When Is Inspection Required
Inspection of a rent house business is done to routinely check that the tenant adheres to his or her responsibilities. A property manager can also supervise an inspection for the purpose of ensuring that the tenant’s not doing any illegal or restricted activities.
However, it is important to discuss matters regarding inspections between you and your tenant before the actual inspection takes place. It is recommended to have this discussion before signing the lease contract to avoid any unnecessary arguments.
Most rental laws require the landlord or property manager to give the correct period of notice. Despite having previous discussions regarding when inspections will take place, property managers should give a notice 48 hours prior to the date of inspection or whatever has been agreed on in the lease agreement.
Importance Of Conducting Rental Property Inspections
Despite the common perception that having a tenant take over your rental property means you can draw back, conducting a property inspection, in fact, is one of the most important tasks a property manager can do. These routine inspections will help ensure that the property is being maintained, issues are resolved before escalating, and that rental investment remains profitable for a long time.
1. Protects the Investment
Conducting a thorough property inspection will help you make appropriate decisions on where maintenance money should be spent. It allows you to make sure that the property is well-kept and cared for. Poor maintenance leads to an increase in repair expenses or a decrease in property value.
2. Make Sure Tenants Also Cooperate With House Maintenance
As mentioned above, routine inspections ensure that tenants are taking good care of the rented property. Knowing that each corner of the property will be scrutinized will encourage them to maintain the standard that was set from the moment it was rented to them. Tenants can do this by completely and thoroughly cleaning the property regularly.
3. Lead To A Better Landlord-Tenant Relationship
When properties are not maintained properly, their value decreases and property managers will find it difficult to secure another tenant. In addition to this, not conducting inspections will mean that you will not be aware of repair and maintenance issues that may be ongoing in the property. This could lead to disappointed tenants who would opt to vacate instead.
With a regular rent house inspection, complaints and dissatisfaction would be discussed easily and it would lead to a better landlord-tenant relationship.
4 Types Of Landlord’s Rental Inspections
If you have decided to self-manage your rent house business, instead of having a professional take care of it, then be prepared to do your own rental inspections. There are 4 types of rental inspections that must be conducted:
1. Move-In Inspection
This inspection is done with the tenant during the moving-in process. Moving-in inspections detail the condition of the property when the tenant is moving in. This will allow you to have a dated reference for any damages, wear and tear that may occur during the tenancy. Every inch of the property must be evaluated and documented.
The move-in inspection would give both parties an idea of how the property should look like before they move out. Once the inspection has been completed, both you and tenant should sign the dated move-in inspection documents to showcase mutual agreement of the condition the property is in.
2. Routine Safe And Clean Inspections
This type of inspection is performed by the property manager for the sole purpose of determining that the property is safe and clean, as the name indicates. This should be conducted every 3 – 6 months and is done in order to pinpoint any damages made.
It is crucial to document these inspections, as well as to note and take pictures of damages. At the end of the inspection, the document must be signed by both parties with a copy provided to the tenant. A follow-up inspection must be scheduled if any issues have been identified.
It should also be remembered that conducting this kind of inspection would require notifying the tenant at least 48 hours prior to the day of inspection.
3. Drive-By Inspections
Unlike the routine safe and clean inspections, the drive-by inspections need no pre-notification.
The property manager or landlord would simply drive by the rent house and observe. This type of inspection will reveal unauthorized pets, unmentioned guests and other lease violations that the tenant was not able to hide due to the spontaneity of the inspection.
If any issues were noticed and need to be addressed, the tenant should be notified in writing and a safe and clean inspection must be scheduled right after.
4. Move-Out Inspections
This is the property manager’s opportunity to determine the condition of the property when the tenant is moving out and if it was cared for according to the lease agreement.
The move-out inspection is conducted at the time you receive the keys from the tenant and must be done in his presence. This will help prevent any disagreeable arguments or debates over deductions to made on the security deposit. It is also recommended to reference the move-in inspection document to compare the property’s condition at the start of the tenancy with the end.
After the inspection, ask your tenant to sign the inspection findings. The documentation of the move out inspection should also be supported by pictures.
Final Thoughts About Rental Inspections In Your Rent House Business
Conducting a property inspection is one of the most important tasks a property manager needs to do. This is done regularly on most rental properties to ensure that the rent house business is being cared for by the tenant according to the lease agreement.
Other benefits of rental inspections in your rental house business include:
- Ensure that the property is being maintained.
- Maintenance issues will be identified and resolved before they become costly problems.
- Lead to a better landlord and tenant relationship.
In this blog post, we also discussed the 4 different types of property inspections that must be conducted to reap the benefits mentioned above, which are: move-in inspections, safe and clean inspections, drive-by inspections and move-out inspections.
While some property managers are satisfied with simply conducting move-in and move-out inspections, it is recommended to conduct all 4 property inspections to guarantee that your rental investment remains profitable for a long time.
If you have any questions about property inspections for rent house businesses, feel free to drop them below.
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