There are many common processes which a landlord must follow after a rental property inspection is conducted.
For example, a common issue for landlords after an inspection is the very fine line and difference between damage and fair wear and tear on the home. While a landlord must be compensated for any damage caused, there must be a certain level of understanding and leniency from the perspective of the landlord.
Damage which has been caused by carelessness or deliberate acts must be brought to the tenant’s attention immediately, which gives them the chance to address the issue and rectify or repair the damage. In the majority of cases, a tenant will be happy and prepared to accommodate regular property inspections. In turn, an inspection is an opportunity for tenants to also bring any issues or matters for concern to their landlord’s attention. For example, if the landlord requests that a tenant addresses a certain issue within the property, then another inspection can be conducted after the issue has been solved in order to ensure that the tenant is meeting the correct standards and is complying with the landlord’s wishes and instructions.
However, it is wise for landlords to remember that their investment property is in fact someone else’s home, and it should be let out with courtesy in order to ensure a good relationship with tenants and a convenient arrangement.
Also known as a check-out, the final inspection at the end of the tenancy is critically important for landlords. This is the final report, which is prepared at the rental property, on the very last day of the term of the tenancy, with its aim being to help determine if costs should be recovered from the tenant’s deposit.
This check out report is used alongside the check in report, schedule of condition and inventory. After the check out report has been compiled, then a letting agent or inventory company will make recommendations to the property owner if there have been any changes to the property, and whether these are the liability of the landlord or tenant, or from fair wear and tear.
Landlords or letting agents, can also hire inventory clerks to conduct property inspections and compile inventory reports on their behalf. Inventory clerks are impartial, and work on the facts alone, and when tenants check out of the property, professional clerks register changes to the deposit. This is why using an external company that provides impartial third party views proves so beneficial to both landlords and letting agents, as well as tenants.
As inventory clerks are not privy to all information from the tenancy, the letting agent or landlord will agree and determine the costs which should be awarded to the tenant and landlord. If an agreement is not reached, and an outcome not attained, then they are able to take the matter to arbitration.
Letting agents or landlords should provide tenants with a two week notice period for the date of check-out and inventory report and offer tenants the opportunity to be present and available for the event. This allows both parties to discuss any issues, and often helps avoid any formal disputes from occurring.
Routine rental property inspections are a vitally important aspect in managing your investment correctly. Often, they are the only way in which a landlord can adequately assess the state and condition of their rental properties.
If a landlord has decided to manage their rental properties themselves, routine inspections are often conducted infrequently, or not as thoroughly, as they should be. This is often due to the fact that landlords feel uncomfortable entering and inspecting their tenant’s home. However, if the landlord feels this way, they should instruct an inventory company or managing agent to conduct these checks on their behalf.