Regularly inspecting your Alberta investment property is fundamental to getting a good return. You or your property manager should be booking move-in and move-out inspections and an annual walk-through of the property. We have a free Alberta landlord property inspection checklist (below) for move-in and move-out, but what about those yearly visits? Many of our clients are curious about why we do them. Here is what you need to know.
Annual Property Inspections: Why are they important?
The professional property manager is the owner’s representative and is responsible for ensuring the property stays in good shape. The annual visit and walk-through are among the year’s most important events. We prefer to frame this “inspection” as a yearly in-person visit to the tenant.
Why is the yearly visit important? First of all, it helps us stay on top of repairs and maintenance. When the tenant is preparing for our visit, they often feel encouraged to tidy up and gather the list of items they wish to discuss with the landlord or property manager. They can always call or email, but the in-person visit often prompts them to address any outstanding issues.
Spend Effort and Save Money
A good property manager knows your rental property is among the most significant investments. They will view maintenance and upkeep is critical to preserving and enhancing your property’s value. If your property becomes run down, it’s far more costly to fix the problems than if you address repairs on an annual basis. Ongoing preventive maintenance preserves and protects the investment in the long run. Property owners need to realize that there is no such thing as a “maintenance-free” property. There is always something that needs addressing to preserve the asset. If an owner deferred needed repairs and maintenances, the result and cost might be colossal.
Your Alberta Landlord Property Inspection Checklist
When the property manager visits, we recommend that they thank the tenant for their business and ask some specific questions about the property. Here’s a checklist of what to ask. Below you will also find the link to our PDF of the move-in/ move-out Alberta Landlord Property Inspection Checklist.
1 – How’s the plumbing? Are there leaks, drainage problems, sufficient hot water, good water pressure? A prudent manager will show tenants what problems to look for, such as leaks under basins and sinks into the cupboard below, pooling water at the toilet’s base, or the water shut-offs.
2. How’s the heat? Ask tenants if they had a comfortable winter. Look into reports of a noisy furnace. Do they hear any banging or clanging? Do they know how to change the furnace filter every three months? Tenants are responsible for this maintenance, so it’s worth following up. By giving your tenants a reminder and demonstration of how to change the furnace filter, you also have a chance to examine the furnace room for any potential hazards. These include placing household items too close to the furnace or hot water tank, posing a fire hazard.
3. Is the electrical system working correctly? Are there any issues with switches or outlets not working? Any serious wiring concerns, like electricity arcing, sparks, or smells of burning? These questions allow the manager to determine the electrical needs at the property. It also allows the manager to check whether tenants are overloading circuits and whether the power capacity is adequate for their requirements.
4. How are the appliances performing? Are they all working? Has any of them sustained damage? This inspection gives the manager a chance to look at the general condition of the appliances. The manager should assess how the tenant is using the machines. Some tenants are very heavy on stove use, and some never use it. If the tenant cooks and bakes a lot, the stove’s condition will be of paramount importance to them.
In Calgary, tenants often complain about the effectiveness of the dishwasher. The hard water conditions in Calgary are often the cause. A change of dishwasher soap or rinse agent may be all it takes to solve the problem.
By taking the annual walk-through, you get an idea of what is essential to your tenant, and you can ensure the critical items in the home are working well and meeting their needs.
5. Other points to discuss and inspect within the property:
· Locks;
· Doors;
· Windows;
· Garage doors;
· Flooring;
· Tresholds;
· Hinges;
· Doorstops/ walls behind doors;
· Closets;
· Hardware; and,
· Window coverings.
6. How does the exterior look? For single-family and duplex properties, the manager should examine the roof for any visual signs of deterioration. Also, check gutters, downspouts and the external drainage system. Check for the paint or siding. Examine whether the exterior needs any paint, repairs to siding or stucco, window or door caulking. Now is an excellent time to look at the home’s curb appeal. Your property manager may have suggestions about the house numbers, the mailbox, the front doorbell, the walkway, the access/egress points, and the driveway if there is a garage. The manager will examine the fence and gates and see if any work is required.
7. What is the state of their tenant’s insurance? Ask the tenant if they still have renter’s insurance in effect. Often, people let it lapse or just forget. A question at the annual visit is another check-in to remind them. Statistically (and alarmingly), many tenants see no value in carrying tenant insurance. It’s good to remind tenants that even if the items in their home are not particularly valuable, most of us could not afford to replace everything we own if something happened to damage our belongings. Renter’s insurance fills this need.
8. Make a Connection. This inspection is your opportunity to ask how the tenant feels about the place, what they think about the value they receive for the rent, and how they rate their rental experience. Are they satisfied with the management and the property in general? A good manager is motivated to receive a five-star satisfaction rating. We’re proud to report our tenants feel this way about 95% of the time. We pride ourselves on responding to tenants’ needs promptly. They know they can count on us as good managers; we know we can count on them, as good tenants, for a lease renewal. Everyone wins.
9. Plan for the Future. A good manager will use this walk-through to evaluate how well a tenant settled into the home. It’s an ideal time to ask what the tenants’ plans are when the lease expires. Most tenants are candid enough to tell the manager whether they will stay or plan to leave. The most common reason a tenant decides not to renew is that their service needs are not met.
Too many landlords aren’t able to dedicate enough attention to the needs of their tenants, which is another reason a professional property manager is a wise choice. We like to remind our owner clients that encouraging an existing tenant to stay is far more economical than starting over when your current tenant leaves.
Many homeowners are hung up on controlling operating costs. Cost control is essential but shouldn’t come at the expense of servicing the tenants’ critical needs. A good manager can help you see the difference between needed and unnecessary maintenance and handle the important tasks. Remember, a good tenant can make a vast difference in enhancing real estate value. Forty years of experience in property management have shown us an annual inspection visit is critical and pays dividends.
Alberta Landlord Property Inspection Checklist
If you own a Calgary rental property, you know every little step can seem to come with a cost attached. That’s why we are making our Alberta Landlord Property Inspection checklist for move-in and move-out inspections available free of charge. There is no obligation to download our form here. If you have any questions about inspections, our experienced team would be pleased to answer them.
Saadat Keshavjee is a certified property manager who specializes in successful management. He works with owners who seek to enhance their wealth through an intellectual and long-term approach to practical real estate ownership. Saadat interviews prospective clients to determine what objectives are attainable and how to bring the clients’ goals to fruition.
