4 Benefits of Investment Property Inspections for Investors and Property Managers

Property Management is all about taking the day-to-day tasks of real estate investment off of the investor. 

Property managers offer a vital service to investors who want to own rental properties, but don’t want to be burdened with collecting rent, making repairs, or finding tenants.

Property care and upkeep, however, is very important to most investors, ensuring that their properties maintain their value and continue to be desirable rentals.

Home inspections can be an essential tool in the property management company’s effort to maintain the upkeep of an investment property. 

Consider these four ways home inspections can be beneficial to investors and property management companies:

1 - Investment Property Inspections maximize the value of builders’ warranties for newly built investment properties.

If an investor purchases a newly built home to use as a rental, he/she may have a builder’s warranty attached to the home purchase.  These warranties, though their exact terms vary, may cover defects that became apparent during the first year of ownership. 

In order to make the most of this warranty, the property management company can, with the permission of the investor, schedule a professional home inspection around the 11th month of ownership.  The Professional Home Inspector will thoroughly inspect the property to find any defects and needed repairs that may be covered by the warranty. 

The investor or property manager can then submit the repair list to the warranty company to have the warranty cover the cost of those repairs rather covering them personally. This will save money and increase the return on investment for the investor.

2 - Investment Property Inspections ensure that vital home systems are working before a new tenant moves in.

When one tenant moves out, rental houses are often thoroughly cleaned and refreshed.  Carpet may be replaced, paint may be refreshed, and minor repairs may be completed, such as patching holes in the walls.  However, general maintenance providers may not have the professional skills and tools to properly inspect all systems in the house for safety and function. 

For example, roof or plumbing leaks may be depositing unwanted moisture in walls that may not be apparent until additional damage is done.  Or, ductwork in the attic could have been torn as a tenant moved boxes out of storage, allowing cooled air to escape into the attic instead of the home.

By having a professional home inspection performed between tenants, property managers and investors can ensure that the home’s systems are working properly and safely, and that needed repairs and safety upgrades are noted so that they can be corrected.

3 - Investment Property Inspections find hidden problems before they get worse.

Since investors and property managers may not actually be in the home often for more than a quick check up, many problems that could be caught early may go unseen.  Renters are not always tuned-in to possible problems until those problems cause an inconvenience. 

For example, a few missing shingles that aren’t visible from the ground could be a quick and inexpensive repair by a qualified roofer.  However, left unnoticed and unrepaired, they can eventually mean a roof leak, damaged insulation, damaged drywall, and a breeding ground for mold or other biological growth costing thousands of dollars. 

A periodic in-depth inspection by a professional inspector can easily pay for itself in repair costs caught before they happen!

4 - Investment Property Inspections identify connected problems in multi-family properties.

Multi-family properties, such as duplexes, townhomes, 4-plexes, and condos, are commonly used as rental/investment properties.  These buildings often share walls, roofs, slabs, and other elements between tenants. 

If a problem occurs on one tenant’s side, but the damage occurs on the other’s tenant’s side, that problem is less likely to be noticed or addressed quickly. 

For example, if a roof leaks in one area, but the water drains along a rafter to another area of the roof before dripping on to the ceiling below, it may be less obvious and less likely to be reported to maintenance.  This extends the amount of time that damage to the property can continue to occur before it is repaired. 

An Investment Property Inspection that includes all connected units allows the same set of professional eyes to analyze the entire structure and identify issues that would be hidden to individual renters.

Investment properties are meant to be just that…a good investment!  Property managers and investors work hand in hand to maintain the value and upkeep of the investment so that it can continue to be profitable for years to come. 

Home inspections are one “tool” to help protect the value of that investment by identifying problems before they become worse. 

At SmartGuard Professional Inspections, PLLC, we generally service a 50-mile radius around San Marcos, TX, including Austin and San Antonio areas.

We will gladly travel farther for multiple property inspections.

Contact Us for a quote or to schedule an Investment Property Inspection today!