Why Two Property Managers Can Inspect the Same Vacancy and Find Completely Different

Question

One lesson we've learned as our portfolio has grown is that experience alone doesn't create consistency systems do.

Early on, we realized that simply asking someone to "inspect the property" wasn't enough. Two experienced people could walk the same vacant unit and come back with very different findings.

One person might focus on cosmetic issues.

Another might prioritize safety.

Someone else might miss a slow plumbing leak altogether.

The difference wasn't knowledge it was the lack of standardized expectations.

That's why we shifted from relying solely on checklists to building inspection standards. A checklist tells you what to inspect. A standard defines what acceptable actually looks like.

For example, instead of checking a box that says "windows," the standard answers questions like:

• Do all windows open and lock properly?
• Are the screens intact?
• Is there evidence of water intrusion?
• Are the window locks functioning as intended?

The same approach applies to plumbing, electrical systems, HVAC, appliances, and safety devices.

We've found that clear inspection standards produce more consistent turnovers, reduce repeat vendor visits, and create a better move-in experience for residents. They also make conversations with owners and vendors much more objective because everyone is working from the same expectations.

As portfolios grow, consistency becomes just as valuable as technical knowledge.

I'm curious how other investors handle this.

Do you rely primarily on a turnover checklist, detailed inspection standards, or a combination of both? Have you found one approach scales better as your portfolio grows?

Jim Johnson · Answer

I think the distinction between a checklist and a standard is an important one. A checklist tells someone where to look, but a standard tells them what good looks like.

I've found the most scalable approach is a combination of both. The checklist ensures nothing gets missed, while the standards reduce subjectivity between different inspectors, vendors or property managers.

It also makes owner conversations much easier, Instead of debating opinions, you can point back to a documented standard with photos and clear expectations. That consistency becomes even more valuable as more people get involved in the process.

Richard F. · Answer

In my life prior to PM, I worked in a Fortune 100 industrial setting that spent a great deal of time, effort, and money focused on Safety, and Quality management. Phillip Crosby was one of the gurus of the era, and everyone in the company went through training for 1 to 5 days depending on their area of responsibility. I carried the knowledge and experience from both of those primary topics forward through two more careers, and in my personal life.

The definition of quality is, quite simply, conformance to requirements. Standards are a major component of a successful Quality program. They do not need to be exhaustive like a Military level Specification, with layers of testing standards, but they do need to be narrow enough to accomplish the goal of effectively communicating your requirements. "Good" or "Better" are useless terms, as their meanings differ from one person to the next as you already noted.

In 1995 I wrote a Maintenance manual for our PM in-house maintenance staff, detailing, by major element, what our Standards were, including a standard general procedure for vacant unit Rental Preps. Consistency increased quickly, and speed/efficiency increased over time through simple repetition. And, importantly, missed problems nearly evaporated, move ins were greatly improved with repair/adjustment requests during first month of occupancy essentially eliminated, and service calls over the longer term were greatly reduced. Prevention of problems is always less costly than remediation!

Taking that one step further, we had enough units to Standardize on a wide variety of materials and products, from paint to flooring, faucets, sinks, stop valves, and more. Your local HD, ACE and others have shelf programs where they will provide you at no cost, shelf units with bins that they will stock with your choice of specific products, to a level you choose. They will recheck and restock automatically. Saves driving time, and you get the very best pricing as well. A good rep will recommend Sale items when the store runs a special, even for products that are similar to what you normally stock. Great opportunity.

I will mention that Safety aspects were also adopted with the companies that had in house maintenance crews, with a questionnaire of very specific safety related questions incorporated into the hiring process, in addition to regular conversations/actions on job sites. Awareness is your best defense!