{"id":182571,"date":"2025-05-05T14:40:55","date_gmt":"2025-05-05T20:40:55","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=182571"},"modified":"2025-05-05T14:40:57","modified_gmt":"2025-05-05T20:40:57","slug":"why-quality-checks-on-turnovers-and-rehab-are-so-important","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/why-quality-checks-on-turnovers-and-rehab-are-so-important","title":{"rendered":"Why Quality Checks on Turnovers and Rehabs Are So Important, and How to Master Them"},"content":{"rendered":"\n

Picture this:<\/span><\/strong> You just moved into your brand-new home, having <\/span>just<\/span> relocated to this town days ago to start your new dream job, and are <\/span>full of excitement<\/span>. The rooms <\/span>are filled<\/span> with that brisk smell of having recently been painted. The countertops don\u2019t have a speck of dust on them and glisten whenever the sun\u2019s light touches them. The <\/span>master<\/span> bedroom is on the second floor, with a large bay window <\/span>that looks out<\/span> on the beautiful park next door, the downtown in the background. <\/span><\/p>\n\n\n\n

You smile with satisfaction, knowing that all that\u2019s left is to go through the arduous process of moving all of your stuff in, and then you can relax to a well-earned night of sleep in your new place, in a new city, with a new job.<\/span><\/p>\n\n\n\n

And the<\/span>n\u2026<\/span><\/p>\n\n\n\n

The toilet overflows and raw sewage pours out all over your bathroom floor as noxious fumes fill the home in a vomit-inducing cloud of agony and despair. <\/span><\/p>\n\n\n\n

Now,<\/span> do you think<\/span> such an occurrence <\/span>will<\/span> increase or decrease the likelihood that this tenant will renew their lease a year from now?<\/span> <\/span><\/p>\n\n\n\n

Such issues can poison what I call the second impression. The first impression is when a prospect views the property to either apply to rent or <\/span>make an<\/span> offer to buy. The second is when they move in or do their inspections. That second impression will go a long way in setting the tone for the landlord\/tenant relationship or getting the property through the inspection period unscathed. <\/span><\/p>\n\n\n\n

It\u2019s <\/span>amazing<\/span> how many little things get missed if you don\u2019t go through and check on each detail. And sometimes, even big things can get missed. We\u2019ve seen this over and over again. The more diligent we are in finishing a project the right way, the fewer problems we have renting <\/span>it,<\/span> or with the tenant after they move in.<\/span><\/p>\n\n\n\n

Not doing a sufficient quality check can cause <\/span>all sorts of<\/span> problems with tenants and maintenance, but it can also cause issues when <\/span>flipping<\/span><\/a>. <\/span>If a whole host of problems pop up on an inspection report, you better believe you are about to get a nasty <\/span>resolution of unacceptable condition<\/span><\/a> or perhaps even a cancellation.<\/span><\/p>\n\n\n\n

This<\/span> is why it\u2019s not just good enough to do proper due diligence and budgeting. Nor is it good enough to put together thorough scopes of work, find quality contractors or employees, and diligently oversee construction. As Robin Sharma <\/span>puts it<\/span>, \u201cStarting strong is good; finishing strong is epic.\u201d <\/span><\/p>\n\n\n\n

This<\/span> is where the punch-out and quality checks come in.<\/span><\/p>\n\n\n\n

A Word on Checklists<\/span><\/h2>\n\n\n\n

I <\/span>would highly<\/span> recommend that anyone in real estate, or any business <\/span>for that matter<\/span>, pick up a copy of <\/span>The Checklist Manifesto <\/span><\/a><\/em>by Atul Gawande.<\/span> It describes in meticulous detail how important it is to create systems and <\/span>well,<\/span> checklists<\/span>, <\/span>and follow through with them consistently.<\/span> <\/span><\/p>\n\n\n\n

At one point, he describes how physician Peter Pronovost implemented a simple five-step checklist for a Michigan ICU when putting in a central line that <\/span>was later adopted<\/span> throughout the state. The steps were:<\/span><\/p>\n\n\n\n

    \n
  1. Wash hands with soap.<\/span><\/li>\n\n\n\n
  2. Clean the patient\u2019s skin with chlorhexidine antiseptic.<\/span><\/li>\n\n\n\n
  3. Put sterile drapes over the entire patient.<\/span><\/li>\n\n\n\n
  4. Wear a mask, hat, sterile gown, and gloves.<\/span><\/li>\n\n\n\n
  5. Put a sterile dressing over the insertion site once the line is in.<\/span><\/li>\n<\/ol>\n\n\n\n

    Seems simple enough. <\/span>You would think,<\/span> with<\/span> seasoned and well-trained doctors and nurses, this would be little more than second nature and have no discernible effect.<\/span> In fact,<\/span> what Pronovost found after a year was remarkable, as Gawande notes:<\/span><\/p>\n\n\n\n

    \u201cWithin the <\/span>first three months of the project<\/span>, the central line infection rate in Michigan\u2019s ICUs decreased by 66%.<\/span> Most ICUs\u2014including the ones at Sinai-Grace Hospital\u2014cut their quarterly infection rate to zero. Michigan\u2019s infection rates fell so low that its average ICU outperformed 90% <\/span>of ICUs<\/span> nationwide. In the Keystone Initiative\u2019s first 18 months, the hospitals saved an estimated $175 million in costs and more than 15,000 lives. The successes have been sustained for several years <\/span>now\u2014all<\/span> because of a stupid little checklist.\u201d<\/span><\/em><\/p>\n\n\n\n

    There\u2019s a reason you see the same thing amongst airplane pilots, mechanics, and other professions where life and death are on the line: Checklists work (perhaps Boeing should revisit this point).<\/span><\/p>\n\n\n\n

    You should be developing checklists throughout your business and using them consistently. They dramatically reduce the number of mistakes you will make and the number of things that fall through the cracks. But if there\u2019s anywhere in a real estate business where this is the most important, it\u2019s with putting together a scope of work and then finalizing everything with a quality check.<\/span><\/p>\n\n\n\n

    Quality Checks<\/span><\/h2>\n\n\n\n

    Hopefully, I\u2019ve explained why checklists, in general, and<\/span> quality checklists, in particular, are critical. I will now describe how we do it. Of course, that doesn\u2019t mean this is the best way. <\/span>But we have put this system together <\/span>over <\/span>the course of<\/span> 15 years, <\/span>doing hundreds of rehabs and turnovers<\/span><\/a> on our <\/span>own<\/span> properties and for clients throughout the Kansas City area.<\/span> <\/span><\/p>\n\n\n\n

    But whether you do it our way or another, it\u2019s <\/span>important<\/span> to <\/span>make<\/span> quality checks (and thorough punch-out lists) <\/span>a priority<\/span> and do them consistently in the same way.<\/span><\/p>\n\n\n\n

    We base the quality check <\/span>off<\/span> our scope of work, which we put together by going through a detailed list of items and <\/span>putting<\/span> each <\/span>one<\/span> into Smartsheet (our project management software). <\/span>It<\/span> would <\/span>be worth reviewing<\/span> my article on scopes of work<\/span><\/a> if you are unfamiliar with that process or think your system needs improvement.<\/span> <\/span><\/p>\n\n\n\n

    For each item that isn\u2019t exceedingly obvious, we include a picture of the issue attached to that line item. The scope looks like this:<\/span><\/p>\n\n\n\n

    \"quality<\/figure>\n\n\n\n

    Once the project has <\/span>been completed<\/span>, we go back through and check off each item to <\/span>make sure <\/span>it was done<\/span> and done right<\/span>.<\/span> We then email the contractor (or employee) with the following color-coded list:<\/span><\/p>\n\n\n\n