In 2004, 69% of Americans owned real estate, but the numbers have been down since. With heightened inflation and unemployment rates, investors are learning that protecting their real estate is more difficult than they thought.
To keep property value high, attract tenants, and ensure you stay compliant as a landlord, it's important to complete regular rental property inspections.
Not sure how to do this? Keep reading to find out.
Know the Types of Rental Property Inspections
To understand how to perform rental property inspections, you need to know the different types. Every landlord should complete the following:
- Pre-leasing inspections
- Move-in inspections
- Move-out inspections
- Routine and seasonal inspections
Protecting your valuable investment is worth the time and effort it takes to complete these inspections. Routine inspections will save you money as you can find problems before they turn into major issues.
Know What to Look For
During a pre-leasing inspection, you can evaluate a unit's overall condition before marketing it to a new tenant. This is the first line of defense to catch damages as a landlord.
Identify safety or potential health hazards that can delay getting the property ready for a new tenant. Some of the main things to look for are:
- Peeling or chipping paint
- Signs of water damage or mold growth
- Safety building code violations
- Functioning electrical components
- Functioning security features
- Pest infestations
Doing this inspection will help you get your property legally compliant and ready for the rental market.
You'll want to look into these things for every inspection, not just the pre-leasing inspection.
Use a Checklist
When owning rental properties, it's important to use a checklist to inspect units. A rental investment inspection checklist should have a dedicated section for each area of the unit.
Using checklists and keeping these documents is beneficial during move-in and move-out.
These inspection checklists should include, but are not limited to, the following:
- Property exterior
- Living area
- Dining area
- Bedrooms
- Bathrooms
- Laundry area
Damage to these areas after a tenant moves out is important when figuring out what to do with a security deposit.
Compare Checklists
Before a new tenant moves in, have them walk the property with you to note any pre-existing conditions. Detail the state of the unit in your checklists and take videos or photos if necessary.
The move-in checklist can then be compared with the move-out inspection checklist. The comparison will make landlords aware of anything beyond typical wear and tear.
These inspection checklists should be thorough and properly filed with the tenant's leasing documents. From there, you can use the move-out inspection checklist to compare and hold tenants accountable for damages they caused.
You can do the move-out inspection walkthrough with the tenant as well to avoid any disputes over the security deposit or additional fees.
Perform Rental Property Inspections Now!
As a landlord, you don't have to conduct rental property inspections yourself. You can allocate the task to your trusted property managers.
No matter who completes the inspections, it's important to follow the breakdowns in this guide. This way, you stay compliant and can hold tenants accountable for damages legally.
Still looking for a property management company that you can trust? Contact us today to learn about our services!