Rental Property Inspections - Taking Great Care of Your Investments in 2023
One of your top goals as an investor should be to protect your assets. However, far too many investors forget the most basic part of protecting their investment: regular property inspections.
Investors should conduct numerous sorts of rental property inspections on a regular basis. When you conduct these inspections on a regular basis, you can identify any lease violations early on before they cause substantial harm to your property.
But first, did you know that by doing regular property inspections, you can ensure that your properties appreciate consistently and build value that you can draw out later? If you want to learn how you can utilize this equity to continue investing, click the link below to book a free strategy call today.
Property inspections should be done with caution
Property inspections of rental units should be approached with care and compassion. Property inspections frequently inconvenience tenants. It is the responsibility of the property management to guarantee that the tenant's time is respected during the property inspection process.
Tenants are unlikely to renew their lease if your rental inspections are inconvenient or make them feel like their privacy is being invaded. If they believe regular property inspections are harassing them, they may even seek legal action against you.
The laws that govern how property owners can conduct inspections are rather stringent. Before an inspection, most provinces and municipalities require a property manager to submit a minimum of 48 hours' written notice. Some jurisdictions may impose even stricter limitations. Failure to follow the law when performing a rental inspection could result in you having to pay your tenants a settlement.
Property inspections aid in the protection of your investment
While rental property inspections are an unpleasant process, they are important in order to protect the money you've invested. If you don't have regular property inspections, your asset could lose a lot of value in a short period of time. A single bad tenant can cost you thousands of dollars in damages, putting your real estate investment company at risk.
It's critical to avoid looking for grounds to evict tenants. Eviction processes are expensive and time-consuming, and you will not be paid rent during this period. If a few minor lease compliance criteria are broken, it's generally preferable to turn a blind eye or make little concessions rather than remove the tenant for minor difficulties.
Discover Buying An Apartment Building With This Step By Step Guide
What exactly should you be on the lookout for
Establish a precedent for adhering to your lease's rules. Work with tenants to find lease provisions that they ignore and try to tackle small issues with care and tolerance. An inspection is, after all, a kind of asset upkeep, not a punishment for tenants. Here's what you'll want to look for:
Make sure the lease is up to date
Regular rental unit inspections provide the most significant benefit of assuring lease compliance. During a property inspection, you can typically tell whether a resident has brought an extra pet into the unit or if their friends are sleeping over more frequently than usual. You must decide whether to issue a mere warning or proceed with an eviction if you've discovered a lease violation.
Prevent unlawful conduct
If you're worried about your tenants engaging in illegal activity, such as drug use or propagation, inspect your rental apartments on a regular basis. Keep an eye out for any areas where drugs are grown or look for devices. If you have any suspicions that a tenant is engaging in criminal conduct at your home, you should contact the local or provincial police department as soon as possible.
Determine your maintenance requirements
If a tenant doesn't use an item on a daily basis or spends a lot of time away from home, it's likely that they won't notice any urgent maintenance issues. Identify any overlooked maintenance needs during a routine maintenance visit, whether a leaky toilet or a stove with a broken pilot light.
Rental inspections come in a variety of shapes and sizes
It's not necessary for you or your property management staff to enter the property at least once a month to conduct an inspection. The following are the most common and significant forms of monthly, quarterly, and annual inspections:
Walkthroughs and move-in inspections
Every time a new renter comes into a home, walk through with them and conduct a walkthrough and move-in inspection. This will allow you and the renter to document the unit's state jointly, highlighting any places that have already been harmed before their arrival.
Inspections for safety and cleanliness
Plan to conduct a safety and cleanliness inspection every three months. Before conducting this type of examination, you must give your tenant warning. You'll go into the unit and check the smoke and carbon monoxide detectors, as well as inspect the property for any potential lease breaches.
Drive-by inspections
There are several advantages to conducting a drive-by inspection. Make it a point to do them at least once a month. You'll inspect the exterior of the property from your vehicle during a drive-by examination. You could even want to park and do some paperwork near your unit so you can see if any non-leaseholders are entering the building or engaging in questionable behaviour.
Inspections during the move-out process
Perform a move-out inspection with a tenant during their move-out procedure. You'll walk through the facility together during the move-out inspection and identify areas that need to be repaired due to damage caused during their tenancy. You don't have to tell them how much the repair will cost at this point; all you have to do is show them the damage.
While you won't be completing move-in and move-out inspections more than once throughout a resident's tenancy, schedule a safety and cleanliness inspection at least once per quarter and monthly drive-by inspections. Because a drive-by inspection does not require notice, you can easily conduct them more regularly if you suspect a tenant is breaking their lease conditions or engaged in illegal activities.
Make inspections routine rather than alarming
The threat of a routine inspection can often motivate tenants to be on their best behaviour. While it's always important to respect a tenant's privacy and follow the law, keeping the information of a future inspection in the forefront of a resident's mind can assist maintain the value of your asset and prevent you from losing money when they move out.
Keep track of your property's condition and how your tenant is treating it. When kids move out, the more you know, the fewer shocks you'll have to deal with.
If you would like to learn more about how you can ensure investment success through regular inspections, click the link below for a free strategy call today.