How to Complete an Effective Property Walk-Through

We always hear, "You have to inspect your property", but what is usually missing from this advice is:

• What are you supposed to look for?
• How often and how many walk-through's should I do?
• How should I document the walk-through and respond to problems?

These are all great questions and while there is no silver bullet, I am going to share with you some best practices and the process we've adopted to stay on top of these.

NOTE: Since the type of review is actually a surface evaluation and not a professional property inspection, I am going to refer to"inspections" as "walk-through reports throughout".

Why Do Them?

Being a great steward of the property is all about consistency. If you don't know what is going on you cannot enforce the rules and without enforcement residents may become increasingly relaxed about strictly following the lease. Below are just a few great reasons to complete a walk-through.

• Spot Lease Violations
• Identify Deferred Maintenance 
• Maximize the Value of the Property
• Provide Quality Housing
• Set the Tone for the Relationship

Frequency & Scheduling

There is a fine line between checking on the property too much and not checking on it enough. If you visit the property too often it can often times damage your relationship with the resident and therefore impact resident retention. Having the landlord/agent around all the time can feel like an invasion of privacy and more important like it's not their home. If you don't visit often enough, you can lose sight and control of the property.

I recommend completing a walk-through 2 times a year. We complete our first walk-through shortly after the 60 day mark of a new resident. This allows them enough time to get comfortable and likely reveal any negative behaviors while allowing you an opportunity to detect this early and provide corrective coaching. I say "coaching" because most residents do not intentionally violate the lease. It is best to give people the benefit of the doubt and approach your role as an educator, not only an enforcer. 

I complete the next walk-through 6 months later (month 8). This gives us a better idea of how the tenancy is going and if they are on a 1 year lease, ample time to consider and discussion a renewal offer should I wish to offer one.

From this point on all future walk-through's happen every 6 months.

Notice to Residents

Most states require that the landlord provide 24 hours notice prior to entering. If you fail to provide proper notice there can be significant fines in some states. 

So how much notice should you give? Unless there is a reason to provide the minimum notice required (check your local laws), I like to give residents a 4-5 days notice. This gives them an opportunity tidy up and put their best foot forward. I know some people will say "it gives them a chance to hide things", but I don't really subscribe to that point of view. Chances are, if they are smart enough to in fact hide something in a few days, they can probably do it in 24 hours as well. Again, I believe in giving people the benefit of the doubt. If whatever they were not supposed to be doing is now undetectable, then it probably was minor. 

With that said, if you are having issues of trust with your resident, this should be part of your consideration before you renew or continue a tenancy. 

Tips and Best Practices

These reports will be used to document damage, spot violations and may even be used in court. For this reason, you want to prepare the report so that someone who has never been to the property knows what they are looking at.

Pictures: Photos should give context. For example, if you are taking a picture of dirty stove burners, take a pictures of the stove top  and then a close-up of the burners.

Pet Evidence: Unauthorized pets can be a common problem with rental properties. You can look for signs of pets such as pet food, pet waste, toys or even odor. In many cases a dishonest resident can hide these thing. An often overlooked area is pet hair along the baseboards. People don't often vacuum these areas and this can provide evidence that there is an unauthorized pet.

Furniture Issues: Furniture can cause damage if too close to the wall. Not only can furniture not properly spaced cause marks, but it can inhibit area flow which can lead to mold growth. Look to make sure furniture is 3-4 inches from the wall. 

Mattresses should also be on a frame and not sitting directly on the floor. This can also need to mold issues in climates where moisture levels are high.

In addition to this, furniture coasters, especially on wood, vinyl or laminate floors are a life saver and can ensure both you and your resident are happy with how the floors are returned at move-out. Floor damage is expensive to repair and in most cases avoidable.

Keys: Always bring your keys and test them. It is good to know the locks have not been changed without your permission. Again, trust, but verify. 

Smoke and Carbon Monoxide Alarms: These life/safety devices are very important and must be operation. Check to see if they work and that they have not been removed or disabled. Failure to maintain these should be taken very serious and is a major violation.

Can't reach the alarms to test them? Buy an inexpensive mono-pod and use that to reach the test button.

Yard Condition: People regularly underestimate the cost of restoring a neglected yard. If you don't have yard service included in the rental agreement, make sure the grounds are being maintained as agreed. That above ground swimming pool may look harmless, if it almost always means that area of the lawn will need to be reseeded. 

This can be a good opportunity to provide coaching on watering and expectations.

Fencing: If you have a wood fence you will want to look closely at the bottom to ensure there is no wood-to-soil contact. This occurs when the wood is touching the soil. Water will be absorbed up the wood and will cause your fence to rot overtime. Keep an eye on this.

Gutters & Downspouts: Gutters are an often overlooked area of concern. Gutters help prevent the roof, siding and foundation from being damage. If the gutters are pulling away from the roof line (you can see daylight between them and the roof) this is a clear sign they need to be repaired. Downspouts are equally as important.

Bathroom Fan(s): Always test these. You can do so by holding a single sheet of toilet paper against the cover and let go. If the sheet sticks, the fan is working, if not, it will need to be repaired. If mold is going to develop in your property, the bathroom is a very likely location. 

When documenting the bathroom it is always a good idea to take a general picture of the tub/shower and then another one with the ceiling above also in the frame. The purpose of this is to show there is no mold. This will protect you in the event the property does develop mold and the resident says it was there for "years". Simply point back to your last walk-through report.

Cloudy Windows: This can be a sign that the seal has failed. You want to be especially careful of the windows are aluminum as these windows can also be susceptible to allowing mold to grow in window sills and on blinds and curtains.

As you can probably tell there are a lot of things to consider (and even more I did not mention). You may be asking yourself;

How do I remember to look at all this stuff?

Great question. Let's talk about documentation.

Documentation

Today there are a lot of great applications that can work on your smart phone or tablet. Many require a subscription services or charge per walk-through, but not all of them. There are some that are a one-time purchase. The one we've used and have been pleased with is called PropertyPal. 

The great thing about digital reports is that there are room by room questions which keep you on track and prevent you from forgetting a key step. In addition to this they allow for pictures and can be emailed as a PDF file. 

When taking pictures you want to balance your need for documentation and the privacy of your residents. Below are the photo guidelines I use. 

• 1-2 Photos of each room - I aim for a general picture.
• Photos of violations.
• Photos of damage.
• Photos of areas where I anticipate damage from decorations or furniture.

Violations and Repairs

While its always good to see the property free of violations and deferred maintenance, don't be disappointed if you find things sort of things. This is the primary purpose of your walk-through. 

If you do spot violations it is crucial that you address them in writing promptly. Not only is it good or the resident to receive this feedback in a timely manner, if you fail to act for too long you may lose your right to enforce that aspect of the lease in the future under a legal concept known as "Waiver" (ask an attorney for details). 

If you spot repairs, be proactive, the property is an asset and you want to maintain it. An added benefit to addressing maintenance is that it will often save you money in the long run and improve resident retention.

I hope this article has been useful, now get out there and go check on your property!