Rental Property Inspection: Complete Guide

Owning and managing property means you'll be conducting regular inspections.

It’s for that reason that you’re likely wondering how rental property inspections work, including:

• Why they’re important
• How to do a rental property inspection
• Should you hire a property management company to handle your inspections
• And tools for helping you complete your inspections

For those new to property management, let’s start by talking about what a rental property inspection is.

What is a rental inspection?

A rental property inspection is conducted by a landlord or property manager for the purpose of assessing the condition of a property or individual unit.

Inspections are performed by scheduling a visit to the unit or property with the tenant, typically with the tenant present during the inspection.

Side note: It helps to have the tenant present not only so that they can let you know about any issues with the unit, but also so that you can let them know to keep an eye on potential future issues you see.

You should already be doing inspections both before and after a tenant moves in/out.

However, some landlords overlook the importance of regular inspections throughout a tenant’s lease.

As a landlord or property manager performing inspections on behalf of the landlord, you have the right to perform inspections regularly.

You’ll want to check with your local state and city laws, however, as you typically need to inform your tenant in advance when you’ll be doing an inspection.

However, it’s your right to perform regular inspections whether the tenant likes it or not.

Why are rental inspections important?

We touched on this a moment ago, but it’s important to hammer home this point:

The property is the investment. So, if the condition of the property diminishes, the value of your investment diminishes with it.

Performing rental property inspections is important because it allows the property manager to verify and maintain the property in good condition throughout the entirety of a tenant's lease.

Routine inspections can help you discover things like:

• Pest Infestation
• Damaged Flooring
• Structural Damage
• Broken Windows
• Plumbing Issues
• Malfunctioning Appliances

Regular property inspections also allow you to catch things like plumbing and electrical issues before they become major problems that cost you thousands.

Legal Responsibility for Habitability:
It’s also crucial to recognize that there are laws protecting tenants from living in uninhabitable conditions. Regular inspections help ensure your property remains compliant with these regulations, which can vary by state and municipality. Failure to maintain a habitable environment could result in legal action against the landlord, so staying proactive with inspections is key.

Your greatest financial asset is the property itself, so regular management of that property allows you to ensure not only that cash flow (cash in) is strong but also cash out and the overall financial health.

Plus, focusing on maintaining the condition of the property means your tenants are more comfortable and see that you care about keeping up the quality of their living conditions.

Which leads to happier, long-term tenants.

Reassuring Tenants Before Inspections

When informing tenants of an upcoming inspection, it’s important to approach the communication thoughtfully. Tenants may sometimes feel like they’re being accused of doing something wrong. To avoid this, reassure them that the inspection is a routine part of maintaining the property and ensuring a safe living environment for everyone.

You can also give tenants time to address any minor issues they’ve noticed before the inspection, so they feel more comfortable. Clear communication can help foster trust and cooperation, making the inspection process smoother for both parties.

6 Types of rental inspections

There are a few different ways you can do inspections.

It’s important to understand these different “types” of inspections to make the most of regular checks on your properties and units.

Let’s break each down:

1. Move-in (walkthroughs)

Walkthrough or move-in inspections are probably the most common type of inspection (though they shouldn’t be your most frequent).

A move-in inspection is conducted just before a new tenant moves into the property, right after they sign and complete their lease but before they bring in their belongings.

Typically, for this type of inspection and most others, a checklist is used to record information as you comb through each room and check items such as:

• HVAC (heating, ventilation, and air conditioning)
• Electrical outlets and appliances
• Flooring, paint, walls, and ceilings
• Windows and doors
• And anything else relevant

The inspector takes notes on the condition of each item and creates a detailed report. This checklist and report are then signed by the tenant and become part of the lease agreement. This documentation serves as a record of the property’s condition at move-in and is crucial for comparison during the move-out inspection.

A copy of that checklist is then kept with the lease as a record of the condition the property was in before the tenant moved in.

At the end of the lease, the move-in checklist is compared with the move-out inspection to determine if there are any damages beyond normal wear and tear. This comparison helps decide what, if anything, should be deducted from the tenant’s security deposit.

2. Move-out

As you might expect, a move-out inspection is performed just before or right after a tenant moves out of a unit and should have the tenant present.

The purpose of this inspection is to confirm the condition of the unit and any damages which will need to be paid for.

You’ll need to record these items so that you can rightfully claim them from the tenant’s security deposit, so don’t forget to be thorough.

If you don’t, the tenant can always claim said damages weren’t their fault and you’ll be left out to dry paying for damages that you shouldn’t have to.

Keep in mind that you’ll need to have done your move-in inspection for the unit and kept tidy records to be able to have something to compare against.

3. Bi-annual / Quarterly

This is where we get into the inspections that some landlords don’t do… but they really should.

It’s easy to fall into the habit of inspecting your units pre-move-in then sitting back and relaxing.

After all, it’s an alluring idea that all you need to do is move your new tenant in then collect rent each month (and do it automatically, with DoorLoop).

But the reality is that you or the company you hire needs to actively manage the property if you want to maximize and– for that matter– maintain your investment.

To that end, you’ll want to schedule at least bi-annual inspections for all of your units. Some landlords even prefer to do quarterly inspections.

Flexibility in Inspection Frequency:
In some cases, it might be necessary to conduct inspections more frequently, especially if you suspect lease violations such as unauthorized pets or additional tenants. If there’s a reason to believe that the lease terms are being breached, you can schedule an inspection outside of the regular timeline. However, make sure you’re compliant with local laws and provide proper notice to avoid any disputes with tenants.

So long as you’re inspecting your property and units regularly, you’ll be able to stay on top of potential issues. Sometimes, tenants can give you a hard time about frequent inspections.

The best way to overcome this objection is to simply state it upfront clearly, so they know what to expect and agree to it before moving in.

4. Drive-by

Another less common but still useful type of inspection is often called a drive-by inspection.

This is less of a formal inspection and more of a quick check, often for things you wouldn’t be able to jot down on an inspection checklist.

This type of inspection focuses on checking the outside of the unit and doesn’t typically require advance notice so long as you’re not visiting the tenant or planning to enter the premises.

Gathering Additional Insights from Neighbors:
During drive-by inspections, it can be helpful to have a quick conversation with nearby neighbors. They can provide valuable insights into the tenant’s conduct and may alert you to potential issues, such as unauthorized pets or disruptive behavior. However, ensure any information gathered is handled discreetly and respectfully to maintain positive tenant relations.

It’s important, however, to keep in mind to not violate the tenant’s privacy in any way while doing this type of quick inspection.

5. Quarterly Property Inspection

A quarterly inspection is a type of routine inspection that is conducted every few months. They can be done more often only if the landlord suspects that the tenant is breaking some of the terms of the lease agreement. This could mean having an unauthorized roommate or unauthorized pets in the rental unit.

It is especially important to make sure that you are not violating the tenant's right to "quiet enjoyment" of the property. To do this, you must obey all local laws and state laws and make sure that the tenant is alerted before conducting any inspections.

When informing a tenant of an inspection, however, they may feel like they're being accused of doing something wrong. Then, it is important to reassure them that they are just routine inspections and that the purpose of them is just to inspect the condition of the rental property. By doing this, they even have time to fix any issues or damages so that they do not show up on the inspection report.

6. Change in Ownership

The last type of rental property inspection on this list is a change in ownership inspection. This kind of inspection is done when the property owner hires a new landlord, property manager, or property management company.

When hiring a new property manager or company, it is a good idea to let them conduct their own inspection of the property. This is so that they do not have to depend on the reports of the old company that could have had mistakes.

This inspection is typically much more thorough and contains a lot more than a routine inspection. It also details any problems with the property as well as what needs maintenance.

So, now that we know about all the different types of rental property inspections, let's go over some of the frequently asked questions regarding rental property inspections.

How to do a rental inspection

Now that you know a bit more about the types of inspections you can perform, let’s talk about how to actually do a rental inspection.

Let’s take it step-by-step:

1. Review local laws and the lease agreement

Both your local state and city laws and the lease agreement in place are important to know, particularly when it comes to scheduling a property inspection.

Typically, you’ll need to give your tenant a specific amount of advance notice when scheduling the inspection based on your local laws.

That’s often 24-72 hours, but it all depends on the laws in place in your area. So, don’t assume and instead make sure to review your local policies.

It’s also important to make sure you’re always following the lease agreement, whether it’s yours or your client’s lease if you’re a property manager.

You don’t want to breach your lease agreement in any way while scheduling or performing your inspection only to have a tenant complain or file a suit against you, as rare as it may be for that to happen.

2. Schedule the tenant to be there during the inspection

Next, make sure to inform the tenant that they should be there during the inspection.

This isn’t necessary, but it is suggested. Especially if you’re only doing annual or bi-annual inspections, as you’ll want them to walk you through any issues they might be having.

If you’re doing more frequent quarterly inspections, it’s really not required they be there. So, you can give them a choice if you don’t feel it’s necessary.

On a related note: make sure it’s clear to them why you’re doing the inspection in the first place.

If you did this when you signed the lease with them, then they’ll already understand the purpose of the inspections.

If not, take the time now to explain that your goal is simply to maintain the condition of the property and that you’d like to check to make sure there aren’t any problems with the unit.

3. Document everything with a checklist

A checklist is your best friend during regular inspections, as it allows you to do two things:

• Keep track of everything you need to check during your inspection so you don’t forget anything, and
• Helps you document the inspection itself for your records

With a good checklist in hand, you’re easily guided through the inspection process from beginning to end.

But more important than that is documentation.

Documentation is everything when it comes to inspections, as you need recorded documentation of the condition of the unit during an inspection in case there is ever a dispute.

It doesn’t happen often, but if a tenant tries to claim they weren’t aware of such-and-such damage at the time of moving out, you’ll need documentation to prove it to get the amount you’re owed from their security deposit.

4. Take photos

Even if you just take quick snaps with your smartphone, it’s important to document everything both in writing and with photos.

Photos are especially powerful as it’s easy to lie on paper, but virtually impossible to fake an image– and during an inspection which your tenant is on record having attended.

This is all stuff you never want to have to use, but it is stuff you need to cover yourself in the event of a difficult tenant.

How often should you inspect your rental property?

How often you inspect your properties is up to you. However, landlords and property managers typically prefer to perform inspections:

• Bi-annually, or
• Quarterly

Both methods generally offer frequent enough inspections to catch problems before they become major issues and generally keep tabs on everything.

Another common option is to check more frequently for newer tenants and less often for those that have been with you for a while.

The longer a tenant has been with you, the more likely they are to know your expectations and have proven their ability to keep up the unit to your liking.

Should you hire a rental property inspector?

Whether you should hire a property inspector is a question mostly of whether you should hire a property manager or not.

Typically, if you hire a full-service property manager or property management company, they’ll handle everything regarding the day-to-day management of the property.

That usually includes regular inspections, though you can hire a property manager to only handle certain specific tasks.

Hiring a property manager comes with certain pros and cons, namely:

• Pro: Save time and headache managing tenants, and often results in more efficient management of your properties.
• Con: It will cost you, typically in the form of a percentage of your rental income.

If you’re at a point where you have several properties and you need help managing them so you can focus more on investing, it may be time for a property manager.

If you’re not or your profit margin can’t justify the additional expense, it may be a good idea to wait.

Bottom line

Having regular inspections is super important to maintaining the long-term health of your properties.

To learn more about how DoorLoop can help streamline the rental process, schedule a demo today.