Take the Risk out of Renting - Tip 1

Regular Inspections

From rent defaulters to extensive property damage caused by tenants, owners - are often left surprised by the cost that tenant-related damage can represent.

That's why, regular property inspections are the most important part of a property managers role.

Situations where property managers do not carry out periodic inspections put their clients in a vulnerable situation if something goes wrong.

For some property managers, while the rent is rolling in, they can be tempted to assume everything is okay without actually visiting the property regularly.

However when that tenant moves out, the owner could very well get a shock to find the place damaged - damage which could have been avoided or minimised if inspections were carried out and action was taken at the time.

EBM Insurance Brokers process approximately 250 claims a month from across Australia and regular feedback from assessors of these claims suggest that often this damage could have been avoided.

A good example is mould forming over a period of time. By not inspecting a property regularly, tenants can fall into a habit of neglecting to clean and properly ventilate premises which can lead to a build up of mould. If allowed to continue, the property will become mouldy and require repainting and re-carpeting - which could amount to a sizeable bill. To further exacerbate this problem, this neglect may not be payable under a landlord insurance policy as it is "neglect" rather than "damage". Additionally there may be further loss of rent incurred if the premises are deemed uninhabitable due to being a health hazard.

Another trend is for people (not on the lease) to move in with tenants and cause damage over time. By conducting regular inspections, agents can monitor that the lease agreement is not being breached and, if so, take necessary steps to rectify this.

When taking over management of a property, no property manager wants to take on another problem, so best practice would suggest that an inspection be done and any issues highlighted to the landlord up-front before taking over management of a property.

Regular inspections can highlight such problems and rectify the situation whether it is the landlord needing to carry out maintenance to their property or the tenant being given a specific order.

As a landlord paying good money for your property to be professionally managed you should take note of how often you receive inspection reports, it may also be wise to try and inspect the property for yourself at least once a year to ensure the reports are accurate.
Source: Bradley Parker EBM Insurance

The Team @home understands the importance of inspecting your investment regularly and also the value to you in providing a detailed report on the current condition. We also offer advice on future maintenance that may be required to ensure you have time to budget for upgrades. Our focus is to ensure the property is safe, the tenants are keeping it in good order and that your investment maintains its value or better still increases in value over time.