Should I be physically visiting my LTR properties once a year?

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Should I be physically visiting my LTR properties once a year?

Roman Randall
Member since 2020 · 1 post · 4 votes

I own two long-term rentals (single family homes) in Colorado. I haven't physically been inside either property for years; I've only driven by each house 1-2 a year. Each of the tenants are great, they always pay on time, and are good with communication. They have told me when things break, and whenever I check in throughout the year the tenants say the house's condition is great. However, it still feels strange to not know firsthand the condition of each property's interior or exterior. Should I be visiting these rental properties at least once a year to inspect the interior and exterior condition, or is that not necessary? My rental agreement states I have permission and authority to do so.

Any advice is appreciated. Thank you!

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Abel CurielBusiness Member
Real Estate Agent · Queens, NY · Member since 2016 · 2k+ posts · 1k+ votes
3y

Great question @Roman Randall, sounds like you've got some great tenants in place.

If you're handy and/or have experience with repairs or maintenance, I think its a good idea to inspect the property at least once a year. 

If preferred, you can have a home inspector check out the property each year. Many benefits to this route in my opinion.

The inspection report (typically 10-20 pages) will:

- highlight condition of mechanical systems: heat, gas, hvac, electric

- give you an idea of which cap ex items need attention: plumbing, foundation, roof

- detect hazardous conditions: termites, mold, asbestos, etc

- summarize interior and exterior condition of the property

- lastly, it sets the expectation and gives reassurance to tenants that you are on top of things

There are even tools out there that help you estimate repair/maintenance costs based on the inspection report i.e. repairpricer.com

All the best to you!

Abel

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  • Abel CurielBusiness Member
    Real Estate Agent · Queens, NY · Member since 2016 · 2k+ posts · 1k+ votes
    3y

    Great question @Roman Randall, sounds like you've got some great tenants in place.

    If you're handy and/or have experience with repairs or maintenance, I think its a good idea to inspect the property at least once a year. 

    If preferred, you can have a home inspector check out the property each year. Many benefits to this route in my opinion.

    The inspection report (typically 10-20 pages) will:

    - highlight condition of mechanical systems: heat, gas, hvac, electric

    - give you an idea of which cap ex items need attention: plumbing, foundation, roof

    - detect hazardous conditions: termites, mold, asbestos, etc

    - summarize interior and exterior condition of the property

    - lastly, it sets the expectation and gives reassurance to tenants that you are on top of things

    There are even tools out there that help you estimate repair/maintenance costs based on the inspection report i.e. repairpricer.com

    All the best to you!

    Abel

    REbuild Team - eXp Realty5234 Reviews
    WebsiteView Page
    5Reply
  • Melissa HartvigsenBusiness Member
    Real Estate Agent · Beaverton, OR · Member since 2020 · 190 posts · 158 votes
    3y

    Hi @Roman Randall,

    Yes, you should be doing interior and exterior inspections at minimum once per year.

    You can save yourself thousands of dollars by checking on your investment. At best,
    tenants with great payment history can miss items that need maintenance:  for example a small leak under a kitchen sink that goes un-noticed that gets to the point of mold growing and cabinets that need to be replaced.

    Many of investors that have horror stories after a tenant moves out with costly repairs had tenants that paid on time.  In fact, I just did a consultation for someone who only inspected during the first six months of a tenancy that lasted three years.  They never went back because it was clean at the six month mark and rent was always paid.  The tenant just moved out: the yard is overgrown (past my knees for about 70% of the yard and taller than me in some places), they left a truckload of junk behind, the carpet that was brand new at move in is stained, and about a third of the house needs to be repainted after all of the necessary drywall repairs.

    Your local landlord association or REÍA should have a checklist template for rental inspections that you can use as a template.  

    Melissa


    3Reply
  • Laura Stayton
    Property Manager · DE · Member since 2023 · 248 posts · 133 votes
    3y
    Quote from @Roman Randall:

    I own two long-term rentals (single family homes) in Colorado. I haven't physically been inside either property for years; I've only driven by each house 1-2 a year. Each of the tenants are great, they always pay on time, and are good with communication. They have told me when things break, and whenever I check in throughout the year the tenants say the house's condition is great. However, it still feels strange to not know firsthand the condition of each property's interior or exterior. Should I be visiting these rental properties at least once a year to inspect the interior and exterior condition, or is that not necessary? My rental agreement states I have permission and authority to do so.

    Any advice is appreciated. Thank you!

    Yes, absolutely go through once a year minimum.  If that isn't possible, ask tenants to take a video (every room and outside) and send to you

    0Reply
  • Randy Rodenhouse
    Investor · Charleston, SC · Member since 2011 · 606 posts · 413 votes
    3y

    I think it depends on your wrist tolerance. I have properties in multiple states and so obviously I don't inspect them every year. I don't have a problem with it. Usually the tenant will advise if there's an issues or repairs that are needed.  With that being said it's probably a good practice to check out your rentals and make sure people are doing crazy things LOL. 

    0Reply
  • Richard F.
    Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
    3y
    Aloha,

    Absolutely inspect annually. Tenants are usually "blind" to many issues that can cost you thousands of dollars. Specifically, leaks from every imaginable source; termite and carpenter ant attacks; poor drainage of waste lines AND exterior gutters/downspouts; safety hazards such as ongoing use of extension cords covered with rugs; grease buildups on range hoods; blocked venting of furnace, water heater, AC; and much more. They will never look at paint/siding condition, interior or exterior; or roofing condition, water heater, appliance door gaskets, or accumulation of stored items inside or out.

    Others are too afraid that rent will go up if they keep calling for maintenance. Still others have marvelous grow farms they do not want disrupted.

    Annual inspection, documentation, and reviews should be an automatic process. I'll go through taking pics, then sit down with Tenants to ASK if everything is working properly or any needed repairs have slipped their mind. I then ask about their intentions for the coming year...do they plan on buying, moving, or continuing? Has there been any employment/income changes? Problems with neighbors/neighborhood? Of course, they will always ask "is the rent going up?" I tell them I need to review the current market, and will send them an addendum with info and options within a few days for their review and signatures.

    Those options typically are a stated increase based on current market AND the actual condition of the unit, which will go into effect on specified date based on required proper notice per local law; Tenant can choose to vacate the premises with X days notice per local laws, with that selection serving AS the necessary notice; they can request a modification to the terms offered, subject to our approval.

    Other times, due to poor conditions and/or poor housekeeping, and Owner's approval, they will just get a non-renewal notice, usually with more notice than legally required locally.
    1Reply
  • Bonnie LowPro Member
    Lender · Asheville, NC · Member since 2016 · 1k+ posts · 1k+ votes
    3y

    It doesn't have to be you, but someone you trust (maybe your PM) should definitely be getting eyes inside and doing a thorough inspection at least once a year. Small things can add up to big damage and you want to catch it early if possible. Our leases allow for the property management company to come in every six months and do a basic inspection. They truly are looking for leaks, cracks, etc but are also changing air filters and are on the lookout for things like evidence of pets when the tenant claims they don't have a pet. 

    [email protected]
    1Reply
  • Account Closed
    Investor · Scottsdale Austin Tuktoyaktuk · Member since 2021 · 4k+ posts · 4k+ votes
    3y
    Quote from @Bonnie Low:

    It doesn't have to be you, but someone you trust (maybe your PM) should definitely be getting eyes inside and doing a thorough inspection at least once a year. Small things can add up to big damage and you want to catch it early if possible. Our leases allow for the property management company to come in every six months and do a basic inspection. They truly are looking for leaks, cracks, etc but are also changing air filters and are on the lookout for things like evidence of pets when the tenant claims they don't have a pet. 

    And they can nip "hoarding" in the bud. If it's a no smoking property and someone is smoking, they can detect the problem, along with extra "guests" and the list goes on and on. Remember, it's your property, not theirs and you have to watch out for your investment.
    1Reply
  • Account Closed
    Rental Property Investor · New Braunfels, TX · Member since 2022 · 408 posts · 408 votes
    3y
    Quote from @Roman Randall:

     Should I be visiting these rental properties at least once a year to inspect the interior and exterior condition, or is that not necessary? 

    Roman, my handyman goes into every rental every 3 months to change the AC filter. This gives us an opportunity to see what is going on and gives the tenant a chance to let us know if there is anything wrong. It doesn't really cost much and I know that everything is in good shape and I know the AC filters are getting changed like they should be! I found out the hard way years ago that some tenants won't change an AC filter no matter what.
    0Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    3y

    @Roman Randall I would not trust a tenant to tell you anything important...whether they're covering their butts or just being unaware... I wouldn't trust a PM all that much either, it ain't their house. You should put your own eyes inside the houses at least once a year.

    I like the @Abel Curiel idea of paying a Home Inspector to actually do a serious inspection every year. That $400 or so will save you much more down the road....and it pouts the tenant on notice in a way. You could meet the Inspector there and get the verbal report after the inspection and see the property then....

    3Reply
  • James Hamling
    Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
    3y

    @Roman Randall not doing an annual inspection is begging for a hurting. 

    Annual inspections is just as much about tenant-mindest as it is to get ahead of the ball on maintenance items or, catch property damage early. 

    Knowing a property IS being checked on, put's it in one's mindest that they will be caught "if". It alters actions. And, in like kind, no observation lends a sense of security and with it lax in tenants own caring of a property. A tenant will NEVER care as much about a property as the owner, so if you care so little it's not even worth looking at once a year, yeah, where does that put a tenants "give-a-damn"? 

    Now, I suggest for all the best way to do annual inspections is NOT to do it yourself, or have a PM, no. Contact a reputable home inspection service in that market and propose to them a "win-win" deal. That you got these rentals, want an annual inspection done once a year. You will let them schedule on their own free time, as in-fill work AND you don't need the full-blown report. That you'll make it uber easy on them, you just want 1 pic of each room, pics of any issues they find, and just a simple report that can be a simple e-mail calling out what they found the (a) needs to be addressed (b) should be addressed and (c) could be an issue in the future. 

    That's it. And for that, of course expect a discounted rate, maybe even $100. It will be best $100/$150 you ever spend. Because now you have someone in there inspecting who actually know what they are looking for, not a PM who has 0 clue how a home is put together. 

    I have "the" biggest name in home inspections in my market who happily does this and they love it. They make diddly-squat on it BUT when slow, it supplements their inspectors, is super easy, quick, and helps for retention in the slow periods. And I get knowledgeable informed eyes on site vs someone who tells me the stove was clean but clueless on say grout gone and water intrusion issue. 

    1Reply
  • David M.
    Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
    3y

    @Roman Randall

    As the other comments have said, yeah you should.  But, I've got units I haven't stepped foot in them close to a decade!! lol  I think my longest tenants have been about a dozen years.. (and thats more than one set).  I may stepped foot in there 2, 3, 4 times in that time span.  When they left, didn't have a problem.  But, that's just how I run my rentals, and my tenants understand and appreciate it.

    Good luck.

    0Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y

    Yes, you should inspect the entire property at least once a year, even with the best tenants. Some Tenants will pay on time and tell you everything is perfect specifically to prevent you from visiting the property. I've even had great tenants for 5+ years and then something changes in their life (drugs, dimentia, divorce, etc.) that causes their life to fall apart.

    Inspect at least once a year. Check every room, even inside the closets.

    The DIY Landlord Book4.7248 Reviews
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    0Reply
  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    3y

    We've found it VERY useful to provide our clients with an Annual Video Evaluation.

    You find all kinds of lease violations:

    1) Nonreported maintenance issues that could be health & safety related (could lead to tenant lawsuits) and property preservation problems (water leaks).

    2) Unreported pets.

    3) Additional people living in the home.

    4) Hoarders.

    5) Home-based businesses that lead to additional wear & tear and owner liabilities (their clients could slip & fall, then sue you).

    6) Home converted to grow operation.

    And many more.

    We also do these BEFORE lease renewals - why renewal the lease of someone trashing the property?

    Logical Property Management4.9446 Reviews
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    0Reply
  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    You need to know what’s going on inside your property. My property manager does inspections every six months and takes more than enough photos for me.

    0Reply
  • Zane Cress
    Realtor · Athens, GA · Member since 2023 · 201 posts · 104 votes
    3y

    I would at least send a handyman to do a check up and make sure everything is running as it should. I have found even great tenants will let a problem go unfixed because it doesn't bother them but it might actually do damage over the long term. It's not their investment, it's yours. Do you want to know what's going on with your places or not? 

    0Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    3y

    You should be doing inspections. Many insurance policies require an inspection every 6-12 months.

    0Reply
  • Marcus Auerbach
    Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    3y

    Finally we found a topic where everyone seems to agree!! Yes, so yes you should.

    We also find it benefitial to remind tenants about pulling weeds, cutting sapplings, how the self cleaning feature on their oven works etc - a lot of bad bahaviours take time to damage, for example not runing the bathroom fans after a long shower. The sooner you get to it, the better!

    1Reply
  • Andrew B.
    Rockaway, NJ · Member since 2016 · 2k+ posts · 2k+ votes
    3y

    Do you have a property manager who checks out the property periodically? If the answer is no, then you are doing an extreme disservice to your business by not checking in on the property. How do you know they didn't strip out and sell all the plumbing or appliances? How do you know there isn't an unreported water leak rotting out the floors? How do you know there isn't a meth lab in the basement? You dont know. Go check on the property.

    1Reply
  • Marcus R.
    Real Estate Agent · Denver CO · Member since 2019 · 209 posts · 332 votes
    3y

    @Roman Randall - Try to do semi-annually if possible.  Our leases mention semi-annually at minimum but we can inspect quarterly.

    Make the visits about checking on systems and it'll seem less invasive and some even welcome it.  Swapping out air filters, checking fire extinguishers and smoke detectors, getting systems ready for winter/summer, checking water softener, replacing water filters, etc...If you're out of state then the travel may be deductible if it's primarily for business.

    If your properties are in Denver then you'll need to get them inspected this year or next as part of the new rental legislation.  This may be a good opportunity to send some one in and walk the property with them.

    1Reply
  • Linda S.
    Investor · Richmond, VA · Member since 2016 · 1k+ posts · 2k+ votes
    3y

    @Roman Randall,

    The real question you need to ask yourself-- Do you want to know of the problems as they arise, or when the tenant moves out and then you learn they actually weren't wonderful, they just paid rent and never called you?  

    We do full annual inspections each year, and without a doubt, they are crucial to keeping our houses in good shape.    We do a full 18-question inspection and go over everything-- interior/exterior/electric/hvac/etc.   There are times after a big storm, if I drive by a house a piece of siding is loose, tenants never reported that-- but I fixed it because if I didn't, it'd be water damage.   What about looking at a giant tree limb that's waiting to fall on your house, tenants don't think to report that-- but if you see it and catch it ahead of time, you'll be significantly better off.    Are the gutters clogged?  So much big stuff can be avoided by being proactive.

    Tenants don't want to bother you and definitely don't want their rental rates increased,  so their motive isn't truly to upkeep the house (unless it inconveniences them).

    1Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    3y
    Quote from @Roman Randall:

    Each of the tenants are great, they always pay on time, and are good with communication. They have told me when things break, and whenever I check in throughout the year the tenants say the house's condition is great.

    These sound good but mean absolutely nothing......

    Most all tenants pay rent on time. 

    Of course they'll tell you when things break, they want them fixed.

    Of course they'll say the house's condition is great, what else would you expect? "Hey the house is a wreck".....?

    2Reply
  • Doug Spence
    Investor · San Diego, CA · Member since 2016 · 1k+ posts · 975 votes
    3y

    @Roman Randall This is a job for the property manager, in my opinion. You could ask them to do it and send you photos. I own multiple properties in different states and I've never done an annual walk through of any of them.

    Keep us updated and let us know what you decide to do!

    1Reply
  • Tim Bratz
    Developer · Charleston, SC · Member since 2015 · 100 posts · 91 votes
    3y

    You should definitely be inspecting annually, if not more. This is an investment of yours, and should be treated as such! Either you or someone you trust should get eyes on your property as often as possible!

    1Reply
  • Sam Leon
    Investor · Fort Lauderdale, FL · Member since 2012 · 1k+ posts · 465 votes
    3y
    who is the property manager?

    who's making repairs when things break?  Do you have a property manager doing this or are you sending over tradesmen you trust to the property to investigate and resolve?

    I visit my property monthly when I do preventative manintenance - test smoke alarms, test GFCI receptacles, flush WH T&P valves, change AC filters and flush condensate drains, feel the bottom of sink drains, blow leaves off the roof etc etc etc...

    For a while I did the "call me when you need me" thing, until one day a tenant moved out after 1 year, and I went to the AC closet, and I saw 11 filters untouched.  The original filter I put in 12 months ago has disintegrated.  I showed the tenant on checking in and he said sure, I'll change this every month, it's easy!
    1Reply
  • Matthew Masoud
    Investor · Orange County, CA · Member since 2014 · 363 posts · 408 votes
    3y

    I do a drive-around once a quarter and a walkthrough once a year. 

    2Reply
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