(Occupied) Property Inspections

Investor · Toledo, OH · Member since 2020 · 88 posts · 101 votes

We perform a quarterly property inspection currently during which we change air filters, check smoke / CO2 detectors and look for signs of water issues (toilets aren't running, nothing under sinks.)

I'm still learning as I go, so I feel like there are things that I should be looking for and adding to a checklist. The goal is eventually to have move this task over to a maintenance / handyman who would also take care of any pending maintenance requests at the same time. Since its still "learn as you go" I'm trying to develop a checklist for quarterly inspections. Does anyone have a list that they currently use or can add to the discussion of things that should be checked that they would be willing to share? (Maybe a google sheet or doc they might be willing to share?)

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Nathan GesnerBusiness Member

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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

This seems excessive to me. 1-2 inspections a year. Mail the air filters to the Tenants and make them change them.

Your current method is OK for a few rentals, but it's not going to scale and I have to question the cost:benefit of it all.

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Scott Mac
Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
4y
Is this a government subsidized housing apartment community or a SFH (???)
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Christopher Abele
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Investor · Toledo, OH · Member since 2020 · 88 posts · 101 votes
4y
Quote from @Scott Mac:

Is this a government subsidized housing apartment community or a SFH (???)

SFH, self managing. Basically trying to build a checklist of things to review for any kind of damage or needed repairs that tenants have not reported. Better to repair it while occupied than to wait, but I also don't want to be opening every drawer in the kitchen to be sure the tracks are all good.
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Sergey A. Petrov
Real Estate Consultant · Seattle, WA · Member since 2022 · 1k+ posts · 784 votes
4y
@Christopher Abele - I’d be curious to see where you are in 2 years or so. I did this as a startup 10 or so years ago but actually went a bit further than what you are doing. In addition to just an inspection, also had a full recurring maintenance list for a flat monthly fee. Had an extensive list of options to choose from preparing and pricing a custom list / scope on a per property basis. Furnace and AC filters, dryer vent cleaning, gutter cleaning, smoke detector batteries, storm drains, wood burning fireplaces/chimneys, exterior window washing, roof cleaning, you name it. Essentially bundled the usual inspection items (look under sinks, check the water heater, toilets etc) with needed recurring annual maintenance items for a monthly fee with an annual commitment. There were multiple service packages - inspection only, inspection plus interior, plus exterior, plus 100% I don’t want to worry about it. Had a handyman/minor repairs available and on call on an as needed basis. Prebuilt agreements with plumbers, electricians, HVAC, roofers, siders, bigger restoration contractors on a referral fee basis for bigger ticket items. Even had an agreement with a third party that would provide a free emergency plan plus an emergency kit to the household and label all electrical breakers and shut off valves (this was for new customers as an added bonus at sign up). After two years of research, development, launching and heavy marketing what we ultimately found is that most people (owner occupied or investors) aren’t willing to pay for proactive. They prefer to deal with things as they come up even if more expensive (I’ll take my chances mentality) or go buy home warranty (which we know is mostly worthless) or think they have enough insurance (not! Especially for lack of proper maintenance). The target market was 1-4 unit “mom and pop” investors without their own systems in place (or owner occupants in single family who didn’t want to deal with maintenance). The original market / psychological research was pointing in the other direction once you were in Class A or B properties but…it was a decently sized write off for me but I don’t regret it.
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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
4y
This seems excessive to me. 1-2 inspections a year. Mail the air filters to the Tenants and make them change them.
Your current method is OK for a few rentals, but it's not going to scale and I have to question the cost:benefit of it all.
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Scott Mac
Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
4y
Quote from @Christopher Abele:

Quote from @Scott Mac:

Is this a government subsidized housing apartment community or a SFH (???)

SFH, self managing. Basically trying to build a checklist of things to review for any kind of damage or needed repairs that tenants have not reported. Better to repair it while occupied than to wait, but I also don't want to be opening every drawer in the kitchen to be sure the tracks are all good.

Have you thought about having a home inspector go over it (like when you would buy it).
That way you would have a written report (and pics) by someone who knows what he/she's doing.
Then just make a punch list.
Walk the property with the inspector if you can.
Good Luck!
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Christopher Abele
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Investor · Toledo, OH · Member since 2020 · 88 posts · 101 votes
4y
Quote from @Nathan Gesner:

This seems excessive to me. 1-2 inspections a year. Mail the air filters to the Tenants and make them change them.
Your current method is OK for a few rentals, but it's not going to scale and I have to question the cost:benefit of it all.
A traditional property management company doesn't have an incentive to perform preventative maintenance or to keep tenants happy, while the self-managed property owner has both.
If you're talking about a property management company operating 100 units then no, it doesn't scale effectively because the property management company doesn't benefit from maintaining the value of the home. In fact, an expensive turnover typically gets billed to the owner (including labor & material markup) and the PM is happy to collect the 10% placement fee. Conversely, damage beyond wear and tear caught early can be billed to the tenant after its fixed and communicates "take care of the home."
Most of the time its an hour visit or less, gets eyes on the property and prevents issues. My buy box is geographically tight so we're not wasting a lot of time driving around. Schedule an hour for each, once per month, and you can handle 24 / quarter with just 1 day per week.
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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
4y
That's not true. I earn a percentage of rent income collected, which means I do not earn any money if the property sits vacant. A home that is well maintained rents for a higher rate than a poorly maintained one, earning me more money. A well maintained home results in a happy tenant which reduces my workload and turnover, all putting more money in my pocket.
there may be dumb property managers out there that skip maintenance because it's easy, but a good property manager takes care of the property because they know it makes them more money. The landlord's success is my success.
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Christopher Abele
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Investor · Toledo, OH · Member since 2020 · 88 posts · 101 votes
4y
Quote from @Nathan Gesner:

That's not true. I earn a percentage of rent income collected, which means I do not earn any money if the property sits vacant. A home that is well maintained rents for a higher rate than a poorly maintained one, earning me more money. A well maintained home results in a happy tenant which reduces my workload and turnover, all putting more money in my pocket.
there may be dumb property managers out there that skip maintenance because it's easy, but a good property manager takes care of the property because they know it makes them more money. The landlord's success is my success.

Apologies if it was unclear I was not directing this at you or your company.
Any property management company that is paid for tenant placement (more than the standard percentage of rent) has an incentive for turnover. Any property management company that marks up labor or materials on maintenance has an incentive to defer maintenance. Econ 101 says that there's a problem with the way that traditional property management contracts are constructed.
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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
4y
@Christopher Abele automate with these two options:

https://www.zinspector.com/

https://www.getrentcheck.com/

[email protected]248-209-6824
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Tracy StreichPro Member
Real Estate Broker · Tulsa- OKC Oklahoma · Member since 2017 · 868 posts · 801 votes
4y
@Christopher Abele. I have to agree with @Nathan Gesner on this one. Just because a property manager gets paid it does not incentivize them for turnover and letting the house get run down. Perpetuation of these fallacies does nothing support your point or help others. There are good and bad PMs and self managers. Don’t lump all together for either.
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Julie Hartman
Property Manager · Denver, CO · Member since 2021 · 667 posts · 587 votes
4y
@Christopher Abele I respectfully disagree with your assessment of PM incentives. We do quarterly filter changes as well but do not do other checks during those visits; we do a general welfare check on the property at that time though. We save our larger inspections for lease renewal time. We actually do have an incentive to keep tenants in place and happy. If we have a good paying tenant that takes care of the property, we want to keep them as long as possible. Yes, this means that we don't make the turnover fee but rents get increased accordingly and our clients are happy and that is what gets more referrals to grow the business. Constant turnover is not a good thing, it's more wear and tear on the property. We do NOT mark up repairs and we pay for the filters out of pocket. They don't cost much and we are keeping our clients happy by taking care of the HVAC system. Not all tenants can be trusted to change the filters. Not all PM's are the same and it's unfortunate that some of us get a bad rap because there are some rotten ones out there.
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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
4y
Quote from @Christopher Abele:

I don't take offense. There are a lot of bad managers out there and I understand the sentiment.

I think most property managers are decent people trying to do the right thing. If they have a basic understanding, then they know that a well-maintained home with a long-term tenant produces the greatest return.

It is the Landlord's responsibility to review the PM Agreement and understand the fee structure. If it's designed in a manner that incentivizes the PM to turn units over, then that's a poorly designed agreement and they should walk away from it.
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