Tuesday, November 13, 2012

Why inspect every three months?

There is a temptation for landlords to not do regular inspections, particularly if the tenant has been good for the previous inspections and they have been there a while.  If you fall into this category, you are not alone.  My estimate from talking with landlords is that 90% do not inspect every 3 months.  The worst I've heard is a landlord that hasn't inspected the property in the 15 years his tenant has been in there.  Not surprisingly, it was 'a bit of a tip'.  So take this tip:  Regular, frequent inspections are vital.

So why don't people inspect regularly?  Well, I think it has something to do with intruding on the tenants life and being judgemental about how they live.  Certainly it also has something to do with there being more exciting things to do in life, otherwise known as 'being lazy'.  

So, how do we avoid the discomfort that comes with doing inspections?  Turn around the purpose of the inspection.  It isn't about checking up on the tenants and making sure they are looking after your house (well, maybe a teensy bit of that).  It is about ensuring maintenance is kept up to date to give the tenants a quality product.  When you inspect, the way the tenants are treating the property is a by-product of your inspection, not the focus.  We want the properties to be nice and tidy when we go inspect so we can get to and check all the likely problem areas in a property.  What are these?  I can hear the cynics say 'the tenants'.  Read and learn.

Inspection hot spots are the places where there is a lot of use, a lot of water, or a lot of movement.  So, door handles and hinges are checked to make sure they are performing correctly.  Light switches are not loose or damaged to make sure they are safe.  All taps are checked to be functional, not dripping, and not too hot.  Under sinks are checked to make sure there are no leaks.  Hot water cupboards are checked for leaking valves or pipes.  Cupboard doors and drawers are opened and shut to make sure hinges and runners are fine.  Likewise window.  Curtain linings are checked for signs of mould, a sign of moisture issues in the property.  Hallways are checked for wear to the walls and flooring - a good sign of when to redecorate.  Toilets flush and don't leak or smell from bad connections.  Externally, gutters, spouting, and gully's are inspected for blockages... you get the idea.  If you happen to notice the tenants have damaged the property during this inspection you can address it.  It is much easier to hold tenants accountable for damage if you are always keeping the property in good condition.

Some will say 'but the tenant will tell me if something goes wrong'.  Will they?  I don't know about you, but there are parts of my house that I rarely venture into.  My partner will tell you that's the kitchen.  But, realistically, how many times in the last year have I had reason to open the hot water cupboard?  Maybe twice?  The cupboard under the laundry sink?  We just keep our emergency water there, so probably not since I last filled it (I think I filled it after Christchurch's February 2010 Quake.  Which reminds me...).  And this is me, property manager extraordinaire who knows what problems can occur, and I can't help but spot issues in every house I visit, even if socially.  Tenants can't be relied on to check every part of the house regularly, or even to realise there are problems when they are occurring.  It's just not in their job description.  Unless someone knows what to look for, they might not even see it.  I've seen lots of examples of slow leaks that no one noticed until it was pretty darn apparent, carpet rotting, mould everywhere, bad smell, wall crumbling.  Its a lot more common than you think.  You can't rely on a tenant picking up these issues.

Things can also change.  I had a lovely tenant in one of my properties.  Sweet young thing, very pleasant.  Had been there for over a year, and along we came for our routine inspection to discover her brother was now out of jail and was doing unauthorised renovations which included a kick-@ss security system around a specialised hobby in the garage - you can guess what.  Lucky we knew it wasn't there 3 months previously.  Neither of them were there three months on from the inspection.  Just because we were checking the house for maintenance didn't mean we were blind to the tenants actions.

Insurance companies love property inspections.  They probably reason why should they protect your asset if you wont?  So, don't get caught out by not inspecting.  Do document your inspections so you can prove you were there.  Keep copies of your notice letters to the tenant.  Take photos of the property with a time and date stamp, if for nothing else but monitoring the condition.  If the property looks fantastic, take photos to use in your next marketing.  We make sure we take photos of things that may be degrading, for example, cracks in a driveway, so we can tell if it is stable or continuing to get worse.  Leave a thank you note for the tenant and take a photo of the note on the kitchen bench - you never know if you need to recall it as evidence.

Good inspections are a lot of work, they do take time and forward planning to do properly.  If you can't be bothered, outsource it by getting great property management to do it for you.  Yes, it may cost money to do it.  But, the report you get each inspection should be a good piece of evidence for your insurance company, and that could be worth thousands of dollars to you.  If you ask your property manager not to bother inspecting regularly and they agree, change to a better property manager.  Great ones will never act contrary to your best interest and best practice, even if you ask them to.  They know how much not inspecting costs.