Periodic rental inspections

[Kyle Godbout]

Hi there. I'm sure this subject has been discussed many times before. However, I was wondering what methods and time frames other landlords are using for period tenant home inspections? Right now, I am physically going to properties every 60 days to replace furnace filters. This works ok on the 9 properties I go to now, but think it might be too much as I acquire more. Just curious as to what other landlord are doing. Thanks!

[Nathan Gesner]

I do have a solid system! I use Propertyware for my accounting software. 90 days prior to lease termination, it emails my team, the tenant, and the owner that the lease is preparing to end and what needs to happen in the next 90 days. For the owner, it lets them know we intend to rent for an additional year unless we hear otherwise. This prevents the owner from coming back two months after lease renewal and telling us he wants to sell or move his son into the house.

I give the tenant their options to renew for an additional year, convert to a month-to-month with a rate increase, or move out. No matter what their choice, it lets them know we intend to inspect 60 days prior to their current termination date. At 60 days prior to termination, they are sent a second email telling them to call the office and schedule the inspection. If we don't hear back from them within one week, we schedule the inspection at our convenience and do it with or without them.

If they are moving out, we give them their move-out instructions and include a cleaning guide. We also let them know about anything we found in our pre-inspection so they have an opportunity to repair or clean before the final inspection. 

If they are renewing, we conduct the inspection to verify they are maintaining the property, not adding unauthorized tenants or pets, etc. We also ask them about any unreported maintenance issues because I don't want a bunch of little things turning into big things or adding up to a big cost at turnover. If everything looks good in the rental and their account history is good, we renew them or extend them.

I've been using this system for about two years. About 50% of my tenants get a full refund of their deposit. About 30% forfeit less than $100 of their deposit. About 18% have more than $100 in charges but they still get some deposit back. In the past 12 months, I've had six tenants leave owing more than their deposit would cover, which comes to about 2% of all renters. The average unpaid balance is $150. I would say that's pretty good!