Inspections are a waste of time.
You spend 15 minutes of valuable time every 90 days walking round the house looking at a ceiling here, a wall there and making sure the doors still open and close.
It's pretty basic stuff...
Of course, this is not our opinion as a property management company, but the opinion of an alarmingly high number of private landlords we have spoken to in recent times.
While inspections may appear a burden, they are an integral part of the management and maintenance of your investment property, and could save you a large amount of money in the long run.
Just think about it...
For most people, when buying property, it is the biggest asset that they own.
This is true even more so for an investor.
With such a large sum of money invested into one asset, it is essential that the property is maintained, both inside and out in order to retain or increase its value. If landlords choose to take the hands-off approach, this becomes very difficult.
The weather is not so good in Wellington ☂️
As you know, this can have a big inpact on the overall condition of the property, especially when most of the houses around Wellington are made of weather boards.
This means that if the average property manager neglects to properly inspect the condition of the house, the wet can get in and destroy not just your investment property and its income.
Routine inspections are critical when it comes to maintaining the property as it allows you to make proactive choices around maintenance.
Keeping your finger on the pulse allows you to see potential problems before they even arise, not only saving you money initially but by preventing the deterioration of your investment both physically and financially.
Small problems that would have been easy to pick up and rectify during routine inspections may suddenly develop into many large and costly issues.
Complimentary to proactive maintenance and protecting your investment, routine inspections also align with the demands of insurance companies.
With methamphetamine contamination based claims as frequent as twice daily for New Zealand’s biggest insurer IAG, insurers are beginning to clamp down on the pre-cursers required by landlords to pay out on claims.
Proper landlord behaviour, including keeping records for seven financial years, starts with frequent inspections.
Most insurers are now stating that for landlord insurance policies to be valid, landlords must inspect, in detail, every three months and now to battle the underlying issues of methamphetamine in rental property, landlords must have both pre and post tenancy methamphetamine tests to action a claim.
As you can see in the video, the issue is a big one and you should be prepared for it.
Landlords must be able to prove beyond all reasonable doubt that the tenants were responsible for the damage.
Failure to do so may leave landlords uninsured in the event of a claim. 😭
Furthermore, most policies are now stating that records must be kept for each inspection, detailing the actions to be taken.
To facilitate this, we now provide detailed video inspections throughout the term of our management and keep these on file to make sure that our landlords are keeping up to date with all the requirements of their policy.
Routine inspections also allow for the growth of a positive relationship between tenant and landlord.
If tenants can see that the property is being maintained and that they can continue to have an enjoyable space to live in, they will be much more inclined to renew their tenancy agreement, making for smooth sailing during the management of the property and greatly reduced vacancy periods.
Landlords too can be content in the knowledge that their investment is being taking care of by tenants.
Overall then it is clear to see why inspections are so important.
At Tommy’s we have a very clear procedure around inspections, notifying the tenant two weeks out, and reminding them 48 hours ahead of any inspection.
A thorough inspection is then taken out, including the interior and exterior of the property. Tenants are prompted to report all maintenance issues promptly if they have not already done so and then both the landlord and the tenant are given a copy of the two-page long inspection report.
All in all, the process allows a great landlord tenant relationship and provides a proactive approach to property management.