Routine rental property inspections are a must if your goal is to protect your investment and keep reliable tenants in place. One way to go about this would be to utilize a rental house inspection checklist. This is a tool that all my property managers use to ensure my rentals stay in great shape while keeping vacancy rates low.
There are several scenarios when a landlord would use an inspection checklist; this includes when a move-out or move-in occurs, as well as when a routine inspection is in order.
Let’s take a closer look at the ins and outs of a rental property inspection checklist so you’ll have a better understanding of what they are and why they’re so important. We’ll start with the basics by describing what a rental inspection actually is:
What is a Rental Property Inspection?
A rental inspection is a detailed examination by a landlord or property manager that takes note of the condition of a rental unit. Typically performed annually or semi-annually, as well as upon move-in and move-out, the inspection ensures that the property is in good condition, is being maintained properly, and that tenants are not violating the lease in any way.
During the inspection, the property is checked for necessary repairs, damages, or potential safety issues. Along with this, a property inspection checklist is used to ensure nothing is missed during the walk-through, with the details carefully documented.
Benefits of Using a Rental House Inspection Checklist
I know from experience that using inspection checklists offers more than a few benefits when it comes to evaluating a property. First of all, these lists are essential for keeping the rental in tip-top shape, helping in planning ahead for upgrades that are needed, and keeping the tenant content because they have a nice place to call home. With that in mind, let’s break this down a bit so you’ll know how checklists can keep you on top of your game as a landlord:
1. Comprehensive Inspection Checklists Assist in Staying on Top of Repairs
All rentals will eventually need repairs, as well as upgrades, especially if you invest in an older property. By doing periodic inspections with a detailed list, you’ll be able to take care of these repairs before they have a chance to get out of hand.
There are many elements to check while performing an inspection, and so it would be easy to have something essential fall off the radar. For example, an inspection checklist will ensure the landlord looks for signs of mold. If a small amount of mold is detected, it can be taken care of quickly and would be relatively inexpensive to do so. If overlooked and left unattended, it may spread and become toxic and costly to remove.
2. Conducting Thorough Inspections Keeps Tenants in Your Properties
By having a rental house inspection checklist in hand while doing a routine or move-in and move-out inspection, you’ll make sure all your bases are covered. By doing this, your rental will be in good shape for a new tenant upon move-in, and it also keeps the property in line with the renter’s expectations throughout the lease timeframe.
This is a must because items that are missed can cause distress and disappointment for a new tenant who’s most likely excited to move into your rental. If you’re not familiar with just how important it is to keep good tenants in place, then you’ll want to head over to my article – Do Vacancy Rates Matter in Real Estate Investing?
3. Rental Property House Inspection Checklists Keep Safety Standards In Check
Checklists can also support landlords in keeping an eye on certain safety aspects of the property, from the structural integrity of the building to potential electrical system issues that could become a fire hazard. By committing to using a detailed checklist, landlords can move through the list, identifying any potential hazards or maintenance issues early before they have a chance to present unsafe living conditions. This can keep a landlord in a good place when it comes to avoiding potential legal liabilities. Regarding safety issues, you certainly wouldn’t want to miss even one element, and so using a checklist is crucial.
4. Routine Inspections Keep Property Values On The Rise
Having certain items on your inspection checklist, such as making sure water sprinklers are functioning properly to keep the yard from dying, or making sure the house paint is not beginning to peel, or that the roof is not leaking, and just ensuring the house is up to par inside and out, helps maintain the property’s appeal and value. This is especially important when it comes to a tenant move-out checklist after a tenant has been living in your rental for quite some time.
Keep in mind that the higher the property value is, the more rent you can charge. Here’s a post I put together that discusses several elements that have to do with this topic – The Driving Factors Behind the Ability to Charge Higher Rental Rates.
The bottom line is that a rental house inspection checklist is another tool that you can add to protect your investment; along with this, you’ll want to bookmark the following articles I created that cover additional ways to safeguard your property and your rental income:
- Exploring Landlord Insurance Coverage – What Does It Cover?
- Protecting Your Real Estate Investment for Long-Term Profitability
- What You Need to Know About Landlord-Friendly States
- Risk Mitigation Strategies for Real Estate Investors
- Safeguarding Your Investment with Tenant Background Checks
- Understanding Rent Guarantee Insurance – Coverage and Benefits
Developing Checklists Based on Inspection Type
Landlords or property managers typically design rental house inspection checklists according to the reason the inspection is needed. This keeps the inspection organized and streamlined. Below, you’ll find the most common checklists and the items that are commonly evaluated. However, keep in mind that landlords can add elements based on their specific property, preferences, and concerns:
1. Tenant Move-In Checklist
A move-in checklist is generally used during a final walk-through after all items have been previously checked, repaired, and cleaned – basically, after everything has been completed to get a place rent-ready for a new tenant. That said, a move-in checklist is utilized right before or on the day of move-in, and can be done with the tenant.
It contains a list of items to check to ensure the rental is indeed ready for the tenant and that nothing was overlooked. It’s also used as a final evaluation to document any issues, or note that the rental looks perfect. This way, upon move-out, the tenant won’t be able to claim that something was damaged before they moved in and take the landlord to court to dispute charges.
Typical Move-In Inspection Checklist Items
- Kitchen Appliances
- Kitchen & Bathroom Counters and All Surfaces
- Cabinets & Drawers
- Lighting
- Heating & Air Conditioning are Functioning
- Door Locks
- Appearance of Walls & Flooring
2. Tenant Move Out Checklist
Now, let’s discuss the move out checklist utilized when a tenant vacates a rental. Along with using this move out checklist to inspect the property when a tenant leaves, it’s common to also bring along the original move-in checklist to these end-of-lease inspections. This is done to compare any new move out damages with the condition of the property when the tenant originally moved in. Normally, the cost to fix any new issues found, which exceed normal wear and tear, is deducted from the tenant’s deposit.
Typical Move Out Inspection Checklist Items
- Condition of Wall Paint, Carpeting and Flooring
- Bathroom & Kitchen Elements
- All Plumbing
- Fire & Carbon Monoxide Alarms
- Electrical Outlets
- Light Fixtures
- Windows
- Appliances
- All Outdoor Property Elements
3. Routine Rental Property Inspection Checklist
Conducting a routine inspection is just as important as a move-in and move out evaluation, and so using a detailed checklist is recommended as well. Routine inspections typically take place every six months, although some landlords or property managers do this only once a year. Why are these routine inspections done? Well, as I touched on earlier, it’s important to periodically check up on a rental property through an inspection to keep tabs on its condition. After all, your investment and your ROI will depend on whether or not the rental is in good shape.
Common Routine Checklist Items
- Loose Cabinet Doors
- Hardwood Floor Scratches or Torn, Stained Carpet
- Dents or Holes in Walls
- Bent or Damaged Blinds
- Plumbing Leaks
- Running Toilets
- Signs of Mold on Ceiling and Floors
- Ensure Smoke Alarms are Attached
- HVAC System Filters
- Bug or Rodent Infestation
- Inspect Outdoor Elements – Unhealthy Lawn, Damage to Driveway, Garage Door, and so on.
Best Practices for Conducting Routine Inspections on Your Rental
You’ll want to make sure your inspection goes as planned, and you can meet that goal by following a few basic rules, with the most important being good communication with your tenants.
1. Good Communication is Key
Start by providing your tenant with advance notice of any upcoming inspections and ensure they understand the purpose of your visit – this will allow the renter time to prepare for the walk-through. Communication is important because it’s never a good idea to just show up unexpectedly. Additionally, when you plan on scheduling multiple inspections for the year, set an agreed-upon timetable well in advance.
2. Document All Findings – Written & Visual
Documentation is another key aspect of the process. Keep detailed records that are gathered from your rental house inspection, whether it’s a move-in or tenant move-out checklist. This includes notes and images of each visit to look for recurring issues. When issues are discovered during an inspection, no matter how small, it’s best to address and correct them quickly. You may also want to share your checklist, as well as document notes, with your tenant so they’re well-informed and in the loop.
Utilizing Technology for Streamlined Inspections
I’ve noticed that in recent years, the adoption of digital tools and apps has really picked up pace when it comes to rental inspections. In fact, all my property managers use digital technology when doing their walk-throughs – it just makes sense. This is the case because the use of property inspection computer software and mobile apps provides features that can streamline the walk-through, make gathering data easier, and create a more efficient process.
1. Creates and Stores Rental House Inspection Checklists
These tools allow inspectors to easily create your checklists for you, capture photos, record notes, and create comprehensive reports. Also, most inspection software tools are integrated with cloud-based systems, which allows landlords to store data in a secure location, as well as in a place that can be accessed in real-time by all those who are involved.
2. Allows for More Accurate Reports
I’ve found that one of the main benefits of using digital tools for rental home inspections is the improvement in accuracy. We all know from experience that manual data entry can lead to mistakes, which can place inaccurate information in inspection reports. Digital tools can lessen these errors by flagging inconsistencies or missing information.
3. Makes the Whole Inspection Process More Time-Efficient
You’ll also find that there’s a reduction in the time and resources it takes to conduct thorough evaluations when using digital inspection tools. Traditional non-digital inspections often involve extensive paperwork and manual report creation, which can be time-consuming. A few examples of technology that can be used for creating inspection checklists and streamlining tenant move-out, move-in, and routine rental evaluations are listed below, if you’d like to check them out:
Maximize Rental Home Assessments with Proper Inspection Checklists
As you can see, using a rental house inspection checklist, preferably one created through modern technology, is the key to performing accurate and streamlined property evaluations. On top of this, unless you love being part of the process and you’re a hands-on landlord, assigning this task to a property manager will take the inspection to a more professional level. Property managers cover inspections for move-outs, move-ins, and yearly routine walk-throughs. They do this sort of thing year after year, and so you’ll benefit from their experience, which can save you money in the long run. In addition to this, if your property is in another state, you’ll need a property manager to do the job for you. We have a whole article on both topics – long distance investing and rental property management, that can provide you with several essential tips.
If you’d like to add a cash flowing rental to your portfolio, where a professional property manager is assigned for you, and all the routine inspections are taken care of on your behalf, then be sure to reach out to the Morris Invest team. We can provide you with a new construction property in a location that sports a high demand for rentals and boasts a booming economy, and we’ll also place a tenant in your rental.
In the meantime, be sure to dive into our power resources for real estate investors to kickstart your game plan:
- The Financial Freedom Academy
- Freedom Number Cheat Sheet
- 90-Day Financial Empowerment Bootcamp
- Morris Invest & SDIRA Program Overview
Before you go, grab a cup of coffee and watch the following video that reveals the real estate secrets I wish I had known sooner: