When we talk about proper devaluation, we tend to focus on factors outside of your control. This can include things like market crashes, regional natural disasters, and local foreclosures.
The reality is that some factors are in your control. If you allow your rental property to fall into disarray, it's not going to appreciate in value-and may even dip.
Rental property inspections are key. Not only do they allow you to evaluate any damage caused by your tenants but they also allow you to fix what's broken before it gets worse.
As Riverside property managers, we have years of experience conducting rental property inspections. Read on to learn what to expect.
Provide Prior Notice
In the state of California, you can't enter an occupied rental unit without reasonable notice unless it's an emergency. While property inspections are important, they don't constitute an emergency.
Give tenants at least 24 hours' notice before an inspection occurs. This will prevent legal issues and make tenants more amenable to your presence in their home.
Create a Schedule for Rental Property Inspections
Rental property inspections are most effective when you perform them on a regular basis. At the very least, it's important to implement move-in and move-out inspections. This allows you and your tenants to assess the state of the unit before they move in and set expectations for how they'll leave it.
You may also want to perform additional inspections throughout the lease term. Make sure that your tenants understand that you're doing so to make regular upgrades to their homes, not to micromanage their living situation.
Document With Care
How can you document the current condition of your property and any maintenance it may need? One option is to use a template and document any issues (e.g., chipped paint or stained carpeting) in writing.
Another option is to take photos, but make sure to do so with care. Avoid taking photos of tenants' personal belongings. Center in on the damage and crop out anything that doesn't contribute to a sense of what that damage is.
Address Problems in Writing
If you discover new issues with a property during an inspection, don't get into an on-the-spot confrontation. Instead, address problems in writing so that there is a clear record of communication.
It's also important to use professional language. Don't make unsound accusations. Instead, state the damage, what maintenance it will require, and the consequences (if any) in plain language.
Partner with Property Management
Rental property inspections are crucial if you want to maintain your property value and stay on top of routine maintenance. However, there is a right way to approach a property inspection. If you've made a real estate investment and want help managing your rental properties, you're in the right place.
PMI Riverside provides full-service property management so that you can start enjoying passive income. From screening tenants to conducting inspections to scheduling maintenance, we'll do everything needed to make your investment portfolio thrive. Contact us to find out more about how we can help.