Common misconceptions of property management

What is a property inspection? 

For years, property inspections have gained a reputation as an excuse for nosy landlords and property managers to pry on their tenants. However, despite this common belief, property inspections are important for a number of reasons. We caught up with Sharon Layton, Principal of Quinovic Merivale, to find out why inspections are essential and how they can best be used to benefit both property owners and tenants.

Common misconceptions around property inspections 

Firstly, what is a property inspection? Technically, it’s a formal walkthrough of a rental property. During the walkthrough, landlords or property managers will record any maintenance issues that require addressing and confirm properties are kept to a reasonable standard. While this might seem straightforward, there are several misconceptions about the purpose of property inspections.

1. Property managers and landlords are snooping for the sake of snooping.
   One of the most common misconceptions around property inspections is that landlords want to look around their property for no real reason. When in reality, property inspections are a condition of most insurance policies. If a landlord wishes to make an insurance claim, they will be required to provide the records from the most recent inspections. Therefore, compliance is vital.
   
   
2. Property managers expect an extreme level of cleanliness from tenants.
   Another myth surrounding inspections is that properties are expected to be kept extremely clean and tidy. Although a reasonable level of tidiness is desirable, professional property managers know that rental properties are homes. As long as there isn’t intentional damage being inflicted on the property, a ‘lived-in’ look is expected and there should be no reason for concern. At the end of the day, we’re all human and we can all be a bit messy.
   
   
3. Property inspections only benefit the property owner.
   Lastly, there is a perception that property inspections only benefit the owner of a property. However, this is not the case.  It provides the tenant with an opportunity to speak to their landlord about maintenance and improvements to the property. 

What do property managers look for during property inspections? 

Inspections act as a property owner’s safety net. A good property manager ensures that your property is in safe hands. Sharon explains how they can save landlords a lot of unnecessary stress and money in the long run. 

An example of this is when Sharon’s team took over the management of a rental property from a previous manager. The initial assessment highlighted water damage, which if left alone, would have compromised the house’s exterior. This type of problem would not be covered by insurance. Highlighting the value of regular inspections and following up with any necessary repairs.  

The most common things property managers look for include: 

1. Water leaks
2. Property damage
3. Mould or dampness
4. A reasonable level of cleanliness 
5. Everything is working as it should e.g. ovens, heating, water systems

How can property inspections benefit tenants? 

Property inspections allow tenants to discuss any minor issues that might have been put on the back burner. It can be difficult to find the time to reach out to your landlord or property manager over small issues which don’t require immediate attention. Inspections can open a conversation between the two parties. 

Tenants can also use this time to address the slight alterations they wish to make to the property. This could be anything from a new vegetable garden to some additional shelves. It’s important that tenants feel at home in their rental property, and these discussions can help.

Inspections are an excellent opportunity for tenants to foster positive relationships with their landlords or property managers which assists with a more pleasant rental experience for both parties. If a tenant is particularly home proud or keeps exceptional care of the property, a good property manager will make a note of this in their inspection report.

Benefits of using a property manager 

1. Property managers are property experts. They know the most common damage that occurs in rental properties and exactly where to look. 
2. Property managers have seen it all before. They have a wealth of experiences to draw from and can resolve issues efficiently. 
3. Good property managers will have systems set up to ensure inspection reports can be accessed easily.
4. They will have established relationships with local tradespeople enabling a prompt response if any remedial work is required.
5. An understanding of what needs to be done by a professional - for landlords it can often be tempting to complete maintenance work yourself, but this can sometimes cause more damage or void potential insurance claims.
6. Property managers know the legal requirements around inspections and notice periods for tenants.

What happens after a property inspection? 

For property owners: 

After a property inspection, you might wonder what happens next? At Quinovic, once the checks are complete, the property owner is emailed a full condition report with any relevant photographs so they can see how the property is being maintained. A copy of this report will also be kept on file for future reference (all reports are at our fingertips in the event of insurance claims). At Quinovic, the property owner can log onto a dedicated client portal at any time to access this report. 

If maintenance is required,  the process outlined in the management agreement will be followed. Work orders are issued, and work is actioned. 

For tenants: 

Tenants will also receive written confirmation that the property inspection has been completed, along with a thank you for their assistance.

Although in Sharon's experience it is very rare, occasionally properties are not kept to a reasonable standard. In this instance, the property manager will get in touch with the tenant to explain any issues that have been identified. The aim is to remedy any issues as quickly as possible. A follow-up inspection will be organised for two weeks time. 

At the end of the day, property inspections are an integral part of the rental process and should always be prioritised to safeguard against worst-case scenarios. 

Looking for advice? Ask Quinovic. 

If you currently own a rental property or are considering investing and want professional property management advice, get in touch with your local Quinovic office. We’re a nationwide team of property management experts and have managed over 100,000 tenancies since 1988. When it comes to legislative matters, we have a professional understanding of all new and existing rental property laws and local contacts to assist with any practical issues for the Healthy Homes Standards. No matter how big or small your question is, we’ll be happy to help. Ask Quinovic today.

Reach Sharon Layton’s team at the Merivale office.