A property inspection may some of the best insurance a property owner can have against a tenant tearing up their Oklahoma City rental property.
For example, I have a 4-bedroom house I have leased out to a family with a section 8 voucher. We had a work order performed at the property to fix a heating problem. After completing the work order, the technician conducted a maintenance inspection.
The maintenance inspection indicated that the tenant was putting big holes in the sheetrock. As a result, we requested section 8 to inspect the property, which is the first step in getting that tenant out of the property.
The Happy Inspector App
Happy Inspector is an App that is loaded onto the phones of my field technicians and leasing crew. It is designed specifically to provide a concise property inspection report. It can include photos and text entered in the field by the technician.
The user can quickly move through a property, and provide a detailed assessment. The beauty of the app is that it integrates all the information instead of the technician having to make a detailed written list that will later have to be written up along with a bunch of photos that will have to be moved around. The app makes these operations almost automatic.
The app allows the technician to quickly evaluate different areas of the rental unit, such as the entryway, kitchen, bathroom, bedrooms, utility room, etc. The technician rates walls, ceilings, floors, doors, and windows on different categories. They are good, poor, clean, dirty, damaged, or marked. Some areas like kitchen and bathrooms have other features such as sinks, toilets, showers, and appliances which also get evaluated.
And, if appropriate, the technician can leave a text comment or take several photos.
The Different Types of Property Inspection
I’ll go over the three different types of inspections below. In a related article, I talk about when and why to do property inspections.
1. The Move-In Inspection
The Move-In property inspection is performed when a tenant moves in. The purpose is to create a record of the initial conditions of the property when the tenant moves in.
If we are starting management on a property, it’s where we determine what needs to make the property ready to rent. And, verify that all the make-ready repairs are completed.
As we discussed, the move-in inspection is a deal with both the owner and tenants. If there is any damage to the property at a particular time, the tenant takes settlements that are agreed to by both parties.
Why Move-in Inspection is Important?
It is necessary to conduct move-in inspections every time a new tenant moves in.
Recovers Repair Costs
Property management OKC recommends you collect a security deposit from your new tenants at the start of their lease term. This helps you to comprise any costs associated with damages to the property. Not only that, this is to cover early lease termination and any unpaid rent on the part of your tenants.
To use your tenant’s security deposit to cover the damages, you will need to have proof. The evidence that those damages didn’t exist at the time your tenants moved in.
There is one condition where you and your tenants sign a document. This is to agree on the property’s original state at the beginning of the lease term. If the property looks very different from that original state at the end of the lease term, you got legal proof. Now you can collect from your tenant’s security deposit to make necessary repairs.
It Holds Parties Responsible
Move-in inspection holds every important party. The landlord, property manager, and tenants are responsible for any condition. Any situation at the time of move-in, during the lease term, and at the end when the tenant moves out.
By having your tenants sign the move-in inspection, you set a clue that you expect them to care for your property. And if they make any damages, they will be held liable.
Biggest complications that can arise from not conducting a Move-in Inspection.
You are going to get into trouble if you don’t make a home inspection agreement before the tenant moves in. You may have a problem compelling them to finish it properly.
Once a tenant starts to move in, the property’s original condition has become altered, possibly damaged. There will be no proof of when the damage occurred.
You might run the risk if you let your tenant complete the inspection without you or your property manager. Simply, risk of extra things being added to the lists that are not there.
Neglecting home inspections altogether makes settling the security deposit for repairs impossible.
2. Move-out Inspection
A move-out property inspection happens when a tenant moves out of a property. The purpose of the move-out inspection is to determine how much a tenant should pay out of their security deposit for damages made.
The owner is comparing the current state of the property to the condition of the property when the tenant moved into the unit.
Damages may decrease the volume of security deposits. However, if the cost to repair the damage exceeds the value of the deposit, the tenant will need to make up that sum.
OKC Home Realty Services do the move-out inspection using the Happy Inspector app.
The time duration of move-out inspection varies depending on your state laws. Mostly, the home inspections take place at the end of the lease when the tenant is moving out of the rental unit.
Landlord Benefits of Move Out Inspections
Allows a landlord to settle the repairs that are needed and the estimated cost of these repairs.
Avoids disputes as the tenants are aware of the deductions that will be made from their security deposit.
Home inspections allow tenants to fixing the damages so that deductions are not taken from their security deposit.
Tenants Benefits of Move Out Inspections
Tenant gets full security deposit back If they fix the damages the landlord has noted before he or she moves out.
3. The Maintenance Inspection
A maintenance inspection is a property inspection that we perform while the tenant is still living on the property. The purpose of home inspections is to assess the condition of the property. And to determine if any repairs should be performed. For example, if there is an unreported leak under a sink that could cause further damage to the cabinets of not addressed.
We recommend that a maintenance inspection be performed about 6 months after the tenant moves into the property. After that, maintenance property inspection should be performed on an approximately 12-month basis.
We use the Happy Inspector App to perform the maintenance inspection.
We generally do maintenance inspections at the end of a maintenance work order that was scheduled at the property anyway. By doing so, we can save the owner of the property money because we are not having the technician make a special trip to the property.
If there has not been a work order request and it’s time for a maintenance inspection, we will schedule the maintenance inspection as a stand-alone item.
Items Property Inspection Include
- Evaluation of cosmetics, such as paint, trim, doors, flooring, etc. That includes walls, ceilings, etc.
- A check to verify that all doors and windows are in working order.
- Evaluation of basic electrical and plumbing to verify those are in working order. For example, that all sinks work and drain properly. That all lights work. Check to see if the plumbing is leaking or the toilets are running.
- Quick evaluation of appliance.
Items Property Inspection DO NOT Include
- An evaluation of the heating and cooling system,
- A detailed evaluation of the electrical and plumbing systems.
To summarize, there are three different types of property inspection for Oklahoma City Rental Properties. The move-out, and move-in, and the maintenance inspection.
Frequently Asked Questions about Property Inspections
How Long Will the Inspection Take?
It is important to know the length of time for property inspection. Since it usually involves looking at basic electrical and plumbing, wiring, roofing, and cosmetics, such as paint, trim, doors, flooring, walls and ceilings, etc. It may take hours to complete. The home inspector you choose provides you with an accurate estimate of the home inspection time it takes.
Is It Okay to Perform the Inspection Myself?
It is better to consult a Home inspector. They are specially trained to look for things you may miss. Unless you are a home inspector yourself, go for experts. Some states or financial lenders expect a licensed inspector to complete home inspections.
Is It Okay Let a Tenant Complete The Inspection?
You might run the risk if you let your tenant complete the property inspection without you or your property manager. Simply, Neglecting home inspections altogether makes settling the security deposit for repairs possibly impossible.
What does Property Inspection Cost?
Costs can alter, depending on the size of the property you are going to inspect. Talk to different home inspectors, if you have never used one before. Run a list of similar information on each inspector. This surely helps you. According to the U.S. Department of Housing and Urban Development, a range might be between $300-$500.
Do I really have to read the entire report?
It’s very necessary to read the entire report. It contains details that may currently be serviceable but the inspector has noted something of concern.
How can I prepare for my home to be inspected?
1. Keep a clean house.
2. Provide open access to areas that need to be inspected.
3. Replace any bulbs that are out.
4. Make sure doors and windows are working properly.
5. Make sure your toilets are functioning properly.
6. Put in a fresh furnace return filter.
7. Note items like the electrical panel to the inspector.
Do you look at everything in the home inspections?
A home inspector will look at things like a foundation, roof, heating, ventilation, air conditioning, plumbing, and electrical systems. After that, they provide a written home inspection report with results. It might take 2-4 hours or more depending on the size of the house.
What are red flags in a home inspections?
Red flags on the home inspection report include evidence of water damage, structural defects, problems with the roofing, plumbing, or electrical systems. It also includes mold and pest infestations. The presence of more of these issues can be an issue for some buyers.
What are the benefits of a property inspection?
1. Inner peace
2. Fascinates more buyers
3. Allow fixing issues quickly
4. Prevents additional costs
5. Prevents from any sort of misunderstanding
What is the difference between Property Inspection and Home Inspections?
Property Inspection is a visual inspection of a building, carried out by fully qualified professionals. The home inspection is a visual review of the physical structure and mechanical systems, including the roof, ceilings, walls, floors, windows, and doors.