How much should you charge for quarterly inspections?

[Jason Hudson]

My wife and I have taken over a property management business and are wondering how much property managers usually add in to the monthly rent percentage for quarterly inspections? Or do you charge a flat fee the month of the inspection? Thank you!

[Nathan Gesner]

Originally posted by @Jason Hudson:

My wife and I have taken over a property management business and are wondering how much property managers usually add in to the monthly rent percentage for quarterly inspections? Or do you charge a flat fee the month of the inspection? Thank you!

Most professional Property Managers include 1-2 inspection per year in their management fee. This is what I do and this is what makes sense. How can you claim to be managing a property without regularly inspecting it?

Some property managers charge a separate inspection fee for each inspection. Or they include one inspection a year and then charge for additional inspections. Some of them do this for extra money while others do it so they can hire an outside inspection service.

As for the number of inspections, one a year should be the minimum. Twice a year is better. I don't do more than two a year unless there are red flags (poorly maintained lawn, regularly paying rent late, etc) that may indicate a problematic renter. I try to do my first inspection 90 days after occupancy to catch problems early on. I do the second one after 8 months to determine whether or not I want to offer the tenant a renewal. If the inspection goes well, then I contact the owner 90 days prior to lease termination and discuss options for renewing the tenant, price rate, etc. Once that's done, I offer the tenant their renewal options 60 days prior to lease termination. My intent is for the tenant to sign a renewal 30 days prior to the end of their lease. If they don't want to renew, then I give them a 30 day notice of termination.