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Regular property inspections are the only way you can know the state of your rental properties. Many tenants aren’t proactive and don’t report small issues to their landlord. Sometimes they won’t even tell you about major damage if it was their fault. You don’t want to wait until a tenant moves out to discover damage that should have been handled long ago, and that’s why you need to perform property inspections on a regular basis.
Although it seems as easy as walking through your properties to assess the condition, it takes a little more planning to do it right and to be as effective as possible. It’s going to be an inconvenience to your tenants, and if you do it incorrectly you could end up in legal trouble, so here’s what you need to know.
1. Hire a property manager to perform your inspections
Hiring a professional, experienced property manager is the easiest way to get your property inspected without having to worry about doing it wrong. Look for a company in your local area that has been around for a while, gets great reviews online, and has experience. For instance, Houston property management company Green Residential routinely schedules and performs inspections for their real estate investor clients. With decades of experience, they know how to do it right.
If you don’t have the budget to hire a property manager, then keep reading to learn more tips for conducting effective property inspections.
2. Consult with an attorney regarding the law
This is one tip you don’t want to skip. Any property inspection you perform will only be effective when it doesn’t come back to bite you with legal ramifications. Always consult an attorney on legal matters because one wrong move can put you in the middle of a lawsuit and if you’ve broken the law, you’ll probably lose.
Inspections require legal knowledge because doing things the wrong way can get you into legal trouble. For instance, you can’t just show up at their door for a surprise inspection. Most states require you to give a tenant adequate notice before performing a routine inspection, and if the tenant wants to change the date and/or time, you need to work with them. Generally, you’ll need to provide at least 48 hours’ notice, but your state and local laws may vary.
3. Look for signs of critical lease violations
An inspection is the perfect opportunity to look for signs of major lease violations, like unauthorized pets, residents who are not on the lease, subletting, and unreported damage. If you find evidence that your tenant is violating the lease, ask them about it on the spot if they’re present. Either way, document the violation with a photograph and by taking notes. You might need the evidence later on if you end up in court with your tenant. Never presume things won’t be taken that far – you can’t know for certain.
For any lease violations, provide the tenant with proper, legal notice to remedy the situation. In most states, you will need to give them 30 days’ to fix the problem before they can be officially asked to move out.
4. Look for signs of water damage
Water damage is the worst type of damage because the true extent can’t be seen from the outside and you won’t know how bad things are until you rip everything apart. Look for water damage on the ceiling, which includes water spots, discoloration, sags, bulges, active drips, and also pay attention to your drywall seams. If your drywall was properly mudded, you shouldn’t see any seams. Visible drywall seams and visible nail heads are a sign that the drywall is wet and is coming down.
5. Ask questions
Don’t be afraid to chat with your tenant and ask them questions if you see anything out of place. For instance, if their home is a mess and looks like it could be a health hazard, ask if they’re planning on cleaning up. They might be in the middle of a huge cleaning spree, but they could just be messy people. Asking about issues can help motivate tenants to sort things out on their own.
Don’t be petty
Last, but not least, don’t be petty during your inspections. If you see a spot of worn carpet, for example, don’t reprimand your tenant. That’s considered normal wear. If you see a pack of cigarettes, don’t assume your tenant smokes on the property against the lease. A lot of tenants smoke at work or on their way home, or walk around the block to smoke.
