Why Are Property Inspections Important?
Have you ever wondered about why a property manager undertakes regular property inspections? Is it something to do with landlord insurance or perhaps checking that the tenant has not done any damage? It’s both, plus a few other reasons, which we’ll go into more detail for you next.
5 Reasons Why Property Inspections Are Important
Rental properties are valuable assets, and as a landlord, you want to ensure they remain in good condition while providing you with a financial return. By engaging the services of a property manager, you can benefit from their industry knowledge of current regulations, comprehensive tenant screening processes and rent collection services.
Property inspections are also one of the key services your property management company can provide and one which your insurance company may state is compulsory. In fact, many landlord insurance policies include a clause about the need for regular inspections to occur throughout the tenancy, as well as before and afterwards.
While tenants may look upon this as an invasion of their privacy or an inconvenience, there are multiple benefits for both parties. Here are five reasons why as a landlord, having regular property inspections is important:
- Identify any maintenance issues that need addressing – an inspection is useful in identifying specific maintenance tasks that will need to be completed. The property manager can assist you in creating a maintenance schedule, organising tradespeople, and then following up to ensure the tasks have been completed to a high standard.
- Ensure tenant compliance – the tenancy agreement will contain guidelines which detail the tenant’s responsibilities throughout their stay. This will usually include information about required maintenance tasks, such as lawn mowing or window cleaning, as well as expected behaviour, such as no illegal drugs on the premises. An inspection will check that the tenant is meeting these requirements, and if not, for the property manager to address this before things escalate further.
- Checking for any damage – normal wear and tear is expected in a rental property. While accidental damage does occur and to some extent is also expected, wilful damage is completely unacceptable. By inspecting your rental, your manager can identify where wear and tear or damage has occurred, document it and take any follow up actions necessary.
- Meet health and safety requirements – it is important that your rental property meets the local body rules and regulations designed to keep your tenants and visitors to the property safe. Inspections are useful for checking that smoke alarms are working; appropriate exit signage is visible and that there are no visible signs of pests on the property.
- Requirement of landlord insurance – as discussed, property inspections are usually required as part of your landlord insurance policy. This works to benefit all parties, as should damage or maintenance issues be unaddressed, you may need to put in a claim for repairs, in which case your insurer will be out of pocket. In return, they are likely to raise the cost of your future policies.
In conclusion, rental property inspections identify small issues before they turn into costly ones, helping maintain your property’s value.