RENTAL PROPERTY 101: Why Interior Inspections Are A Bad Idea | Nexus Property Management® Franchise

Fostering Trusting Relationships Is Better Business Than Following Emotions

It’s been pretty well publicized that anxiety has become more and more prevalent in recent years. A recent book about the “Anxious Generation” has been a top seller for over 11 weeks and everywhere you turn people are prophesying doom. Coming out of a world-wide pandemic with smartphones and Social Media with algorithms that point us in that direction helps explain this. And frankly, that is neither here nor there when it comes to property management…unless those emotions start to creep into the field…which they are.

Since the pandemic, Nexus Property Management® has received more requests for interior inspections of rental units than any time before. The feeling of distrust and discomfort with not knowing exactly what’s going on at their property is pulling people from the fact that rental property is a business investment. Hiring a professional property manager is the best way to create a buffer between distrustful anxiety and your tenants to ensure your business’ profit potential is not interrupted by emotional decision making.

 

LEARN MORE: HOW PROPERTY MANAGERS HELP CREATE LONG TERM, HASSLE-FREE TENANCY

 

WHAT AN INTERIOR INSPECTION ACTUALLY GETS YOU

Property owners think they’re simply asking for a look into how the tenancy is going and what shape their property is in. But if an interior inspection is performed, they’ll be getting far more than just that:

 

1. EROSION OF TRUST

When property owners go in and inspect an occupied rental unit, they’re invading the living space of another person or persons. In a world where many people have Ring Video Doorbells because they’re worried about who might come to the outside of their home, it should be easier to appreciate that people don’t enjoy having someone come into their home…especially if the reason for that intrusion is specifically to look around and make sure you’re behaving.

Unless there is some probable cause for checking something out that justifies it, this impulse to have an unprovoked look inside is extremely detrimental to the respectful balance we aim to create for clients and tenants. If you just need to see inside your rental unit, be aware that you’re also informing the tenants that you do not trust them. 

 

2. ADDED EXPENSES

This can come in a couple different forms, but believe us, it’s coming. More often than not, you’ll stumble upon minor issues during your inspection that will cost you money to fix. Per lease language (hopefully), it is the tenant’s responsibility to inform the property owner (or management company) when maintenance issues arise. If you do find something that needs to be addressed that wasn’t reported, you may be relieved that you caught it, but who’s going to pay for it? 

Typically owners cover maintenance expenses needed at their property. But if someone punched a hole in a wall or damaged your property through poor behavior or negligence you’ll likely want them to pay for it. Now you’ve inserted a whole additional layer to the erosion of trust and balance and you’ve likely created additional conflict. Now what happens? Do they pay willingly? Is there any certainty it won’t happen again? If they don’t pay are you going to evict and create a vacancy? How much does your anxiety increase now that your suspicions have been validated? There are lots of questions that arise and none of them end with you making more money or even the same amount of money had you left it alone. And just as a reminder, if you’d discovered this hole at the end of the tenancy you’d take the expenses out of the Security Deposit.

 

LEARN MORE: ALL YOU NEED TO KNOW ABOUT SECURITY DEPOSITS

 

THE ALTERNATIVE

Nexus offers regular EXTERIOR INSPECTIONS for the properties we manage. Naturally, we also see the shape a property is in whenever we respond to a maintenance service request. But just from the exterior inspection alone, which we send to owners in a report with photos, we get an accurate account of how well the tenants are taking care of the property. If the outside is a mess, you can count on the inside being a mess. If the common areas and driveways, and trash areas are clean of debris, 9 times out of 10 the inside looks the same. We can very effectively use proxies to assess the state of the property without infringing on tenants privacy.

 

LEARN MORE: INSPECTIONS FOR INFORMATIONAL PURPOSES ONLY???

 

SUMMARY

A basic principle in real estate investment is to avoid vacancies. You lose when you have no income coming in. If you have legitimate suspicion that there may be issues inside your property then yes, investigate in a way that gets you the answers you seek in a way that is least off-putting to the tenants. But if your suspicions are not based on something credible you are risking letting your unfettered emotions cost you a whole lot of money. Hiring a property manager is a great way to insulate you from these types of impulses.

If you’re interested in learning more about Nexus’ services and you’re in one of our many territories, contact any of our teams across Arizona, Connecticut, Massachusetts, and Rhode Island.

 

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Mick Lefort is the General Manager of Nexus’ New Haven County Franchise Office and the Vice President of Operations for Nexus Property Management®, a National Property Management Franchise that manages all types of rental property from single family homes or condos to large apartment buildings and complexes.

 

 

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