2 Reasons Why You Should Be Conducting Property Inspections

There are a number of reasons why landlords and property managers should conduct property inspections.

With that being said, it is absolutely INSANE to visit your property only after the tenants move out.

As a landlord/ investor, your entire profit can be completely wiped out due to damage that a tenant may have left behind. Why not avoid this by spending a few minutes, every 3-4 months, conducting inspections!

Sure you can take the tenant to court but how long will it take you to win judgment in your favor, how much will the case cost and what if the tenant still does not pay you?

1) It’s a a Psychological Thing: Ever wondered why your car insurance premium decreases if the deductible is larger? Studies have proven that the higher a deductible, the less likely the driver will get into an accident because they want to avoid paying the deductible. To Summarize, they will drive more carefully.

Through our experience, we have found that same concept can be applied to managing properties. Tenants take better care of the property if they know that the landlord/ property manager will be visiting often. This is a FACT!

Make your tenants aware upfront that you conduct inspections and set expectations for how you want the property to be treated.

2) Catch it early and save BIG: A home is like a piece of machinery and machines break down. Homes often need repairs that may or may not be due to tenant’s negligence/misuse.

Just last week, we discovered a termite problem at one of our properties and were able to have the area treated for $350. If we had not found this issue by conducting our inspections, this could have easily been a $5000-$10,000 repair if the termites gotten more time to eat away at the home’s supporting beam.

If inspections are not being performed, minor repairs can turn into really big ones. Especially in the case of single-family homes, one needs to know of roof damage, foundation issues etc… as soon as possible.

I would much rather spend $400 on a repair than to spend $5000 on a big ticket repair because you caught the issue too late.

It is not advised to think that your property is on “auto-pilot” and that you do not need to visit or inspect because it is rented.

Each Dollar you avoid spending is a dollar saved!

Be sure to provide adequate notice to tenant before conducting inspections. If possible, have tenants present when conducting the inspection.