6 Contractor Warning Signs for Landlords

Written by Apartment Management Magazine on . Posted in Blog

HVAC-Preventative-MaintenanceAt some point, every landlord need to hire a contractor, so it’s important to be able to spot contractor warning signs to help determine who the best candidate is. Whether it’s a simple update or a whole remodel, you depend on outside service experts to help keep your rentals in top condition.

Deciding on which contractor to hire can be a stressful decision, so take the time to get familiar with several contractor warning signs so that you can sift through the bids and get the one who will really be worth it. There are too many bad contractors and contractor scams out there to risk your real estate investment to just anyone.

Good Contractors Are Critical To Success

When you find a good contractor, it’s amazing how smoothly things can go. If you are working with a contractor that isn’t so capable, you can lose time, money and even jeopardize your investment with safety issues.

Most landlords and property owners are familiar with the important steps of process of asking a potential contractor for a portfolio and a list of references. However, there are other factors you examine to determine if a potential contractor is one you should hire or one you should steer clear of.

Here are 6 contractor warning signs to look for when hiring someone to work on your rental property.

1. No license, registration or insurance

It may seem obvious to stick with someone who has all the proper credentials, but many people are tempted by the low rates of someone claiming to be an expert contractor who just “hasn’t gotten around to renewing their license.” Other scenarios that property owners might encounter often involve a friend or relative with experience who say they will do the job for a bargain price.

Never hire a contractor that doesn’t have proper certification. This enables you to stay on the right side of the law and to protect your investment financially.

2. Unusual payment arrangements

Most professional contractors have an outline for a payment plan, depending on the size of the project. For small to medium jobs, they need some form of payment up front to start purchasing materials and the balance is paid upon completion. For large jobs, contractors generally require a down payment and then set up regular progress payments or draws after that.

Beware of contractors who only want to be paid in cash or who ask for large payments up front, especially if it accompanies a lowball offer. Property owners all across the country tell too many horror stories of paying contractors up front only to see their money, and the contractor, disappear.

3. High pressure sales tactics

A good contractor should be content to be judged on past work and recommendations from previous customers without resorting to aggressive sales pitches or putting pressure on potential clients. While some people are just naturally assertive when it comes to sales, it could also signal desperation, such as the business is struggling and isn’t landing many clients. If you feel like a contractor is simply trying too hard to secure a job with you, follow your instincts and keep looking.

4. Mismatched skills

Don’t make the mistake of thinking that a good contractor in one area of specialization automatically makes him good for just any project. If a contractor has years of experience in kitchen remodeling and no real bathroom remodeling experience, you are taking a risk in trusting an extensive project with someone who may not be as familiar with the requirements and potential issues of a particular job.

Make sure the contractor you hire has experience in the exact project you want, along with plenty of satisfied customers. Do your research and ask for examples of work and references from past clients who had work done that is similar in scope and cost to what you want.

5. Sketchy paperwork

Contractors who are confident in their skills and abilities are not afraid to put things down on paper. If a contractor doesn’t have a basic written contract to start with, that’s a red flag. Reluctance to commit to a schedule in writing is another warning sign.

Failure to provide a list of materials and supplies should also raise concerns, because accurate records are extremely important in this line of work. You should be able to ask for examples of materials lists from previous jobs similar to yours, and if the contractor is reluctant to provide those, he may not be the best choice.

6. Communication barriers

A great contractor can still be hard to get along with, especially if your communication styles are not a match. Communicating with your contractor is a key part of ensuring that each project goes smoothly, so if there is a failure to communicate on the most basic level, chances are things won’t improve down the road. Observe whether the contractor does an equal amount of listening as he does sharing information and opinions with you.

Steer Clear of Shortcuts

Too many property owners become the victims of unethical or dishonest contractors, and still others succumb to the temptation of letting someone they know act as their contractor. Whether it’s to save money or save time, choosing a contractor that isn’t right for you can have long-term repercussions. If you don’t pay attention to the warning signs, you’ll always hire the wrong contractor for your project.

What methods do you use to screen and hire contractors for your rental properties? Are you aware of any other contractor warning signs? Please share this article and let us know your strategies in the comments below.


StephenMichaelWhite Stephen M. White | Company Website | LinkedIn Connect |Stephen Michael White is the founder and CEO of RentPrep, a tenant screening company that gives landlords the tools and resources to get better tenants. Stephen is a frequent speaker for real estate and landlord associations around the country, passing along the knowledge he’s gained working with thousands of landlords, investors and property managers since 2007.  

Considering 24 Hour Security for Your Multi-Unit Properties

Written by Apartment Management Magazine on . Posted in Blog

Surveillance_camerasWhether you own or serve as the property management company for a multi-unit housing complex, adding a security patrol to your agenda may be something to consider as an extra precaution or to add peace of mind value to your property.

One option to consider, if budget permits, is hiring off-duty police officers for 24-hour security; however, for this particular piece we will take a look at employing licensed and trained security personnel for evening or full-time patrols rather than formal police officers.

The Real Purpose of Residential Security Patrols

Whether considering a single night watchman or several patrol officers or stationary guards, the main emphasis should always be on establishing a perimeter of non-forceful deterrence. The goal is to make criminals think twice with the mere presence of security personnel, who should ultimately rely on municipal police for backup and action when and if it becomes necessary to protect the property.

You’ll only want to hire security when it’s called for. For example, if crime is higher on weekends or evenings, a force during those hours may be all that’s necessary. This is a consideration that may be taken to residents themselves through a survey, general meeting, and those with HOA boards already have a sounding board with the authority to approve such expenditures.

Determining the Functions of Your Security Force

While visibility of security is vital to its efficacy, so is the credibility that residents hold in your security personnel. This means that the security persons must be able to get police help promptly, must be adept at their job, and make those rounds so that they are clearly and regularly seen by both residents and mischievous eyes. Although the use of force must be minimal, these individuals must be able to exhibit the ability to defend themselves if and when necessary.

Security personnel can essentially perform three basic functions for your housing complex: patrolling, monitoring the electronic alarms and/or surveillance systems, and stationary guarding. Clearly patrolling may involve vertical patrols of interior hallways, lobbies, elevators, and the like while regular perimeter checks outdoors may also be necessary. Stationary guards may serve at the entrance of gated communities or serve dually as a monitor of any alarm systems and visual camera security. Determine how many patrollers you’ll need to handle your target tasks and budget appropriately.

Types of Security Services for Property Management Companies

Unless you’re considering police protection or thinking about establishing a resident patrol program, (an increasingly popular and rather effective option in resident owned complexes with HOAs) there are basically two options to consider: management controlled forces and contract guard services.

Management Controlled Security – Members of these forces are paid by the property management company who will retain the final say in supervising, hiring, and the firing of the security personnel.

Contract Guard Services – Unfortunately, these contracts are often purchased through agencies who retain hiring, firing, and supervising rights. These contracts will need to be cancelled if the services don’t live up to your standards and are less easily managed than controlled security forces.

You Can’t Go Wrong by Protecting Residents and the Property

Establishing set security personnel to keep an eye on things around the neighborhood can increase resident and owner confidence and dissuades potential criminal offenders from even making a move in your community. With this in mind, it could be time you consider 24-hour security, or evening patrols, to help keep your property and residents safe.


appfolio Appfolio | Company Website | LinkedIn Connect |AppFolio, Inc. develops Property Management Software that helps businesses improve their workflow so they save time and make more money.  Appfolio submits articles & blogs including topics of Resident Retention, Improved Owner Communication, Time Management, and more.

People ARE Strategic!

Written by Apartment Management Magazine on . Posted in Blog

business-peopleWhen I was a kid I was a huge fan of the television show Tour of Duty which chronicled the life of a platoon of American soldiers in the Vietnam War. The show made no attempt to glamorize war, to justify the war or even to provide an explanation of why our nation was there in the first place; it’s goal was simply to tell the story of the often forgotten people who were charged with fighting it.

In one episode the men of Bravo Company were assigned the task of relocating villagers to a new village that was considered more “secure.” Some of these people had lived their entire lives in that village and were now being forced to leave the only life they knew. The journey to the new village would take a few days as they all crossed miles of jungle.

In the middle of the relocation process the soldiers came under enemy attack. When the fighting seemed heaviest and escape seemed remote, the men received an order to save their lives by “leaving the villagers” where they were and to get out. The young lieutenant turned off the radio, told his men the radio was “broken” (so the order couldn’t be confirmed) and the soldiers finished their mission of getting the villagers to their new home safely.

Reality Check

When the men arrived at the village, one of the higher officers ripped the men a new one for their “stunt” of turning the radio off and disregarding the order to ditch the villagers. The colonel said something like, “You don’t risk your life for something of no strategic value!” To which one of the privates in the platoon replied,“People are strategic … sucka…!”

The colonel demanded to know who said that and one by one, the men of the platoon said “I did, sir!” and they all closed ranks, looking at the colonel (with a ton of disdain) as the show faded out.

Love it!!

People Are Your Biggest Asset

I just did two corporate training events for clients on both coasts over the past few weeks. (In fact I’m on an airplane right now coming back home from one of them!) And I can tell you that both companies are intensely committed to their people; and not just to train them so that they’ll make their companies more money (which of course, is a goal…and a good one!) but because they were genuinely interested in helping their people succeed.

I could tell the difference. Big time. 

The people I interacted with and spent time with all seemed excited, engaged and really into what they were doing. I met someone today who was with his company for 20 years! And when he spoke of the people he worked with and worked for, he glowed.

How much do you think his company has made from his efforts, just by investing in him both as a person and an employee?

People Are the Difference

Did you watch the Super Bowl this past February? The Seattle Seahawks beat up the Denver Broncos in a way I think few people imagined. Were the Seahawks just that much better from a personnel perspective? I don’t think so—but I think the Seahawks were more inspired.

Inspired people do inspiring work. Uninspired people do uninspired work.

Which one would you rather have?

And you can’t inspire (most) people with only a spreadsheet, new software or a bunch of fancy algorithms and analytics. You inspire people by engaging and pursuing their hearts. You may think that’s a bunch of “feel good” fluff but it doesn’t change the fact that it’s true. I encourage you to try it…and when you do, you’ll experience that people really ARE strategic…and can be YOUR secret weapon.


RA picture 1A Rommel Anacan | Company Website | LinkedIn Connect |Rommel is the president of The Relationship Difference; a corporate training, motivational speaking and consulting firm.  He is a multi-family housing veteran, having worked at all levels of the industry from onsite to corporate, where he developed a reputation for solving common industry challenges in an uncommon way.

 

Fannie Mae has its Say: Multi-family Overview for 2014

Written by Apartment Management Magazine on . Posted in Blog

shared post from Class A Management

AccountingImage_1Healthy in 2014. That’s the report from Fannie Mae on what’s to be expected of the Multifamily Property Market in the coming year. It’s a trend we saw in 2013, even at times when it was least expected. In fact, the Federal National Mortgage Association reported continued rent growth and sustained occupancy levels through the end of the year, a time when both have a tendency to dip.

Keeping with the trend, Fannie Mae says 2014 holds much of the same, with both tenants and property owners demonstrating a continued demand for the industry. The best news? Looking at the graph provided by the agency, vacancies from now until 2018 are predicted to see very little change, with the first multi-year sustained vacancy rate since 1995.

What’s the Driver?

Wondering about the source of this trend? Job growth, of course, takes the bulk of the credit. The following numbers have been forecast by Fannie Mae’s Economic & Strategic Research Group:

  • 6.4 percent unemployment rate by the end of 2014
  • 1.9 percent increase in nonfarm payroll in 2014 and up to 2.0 percent in 2015
  • An increase in household formations is expected to increase demand for rental units

Some More than Others

As Fannie Mae details—and from what we know to be true—not all areas of the country have seen or will continue to see this positive trend. In fact, particular areas of the country that ‘carrying’ others—bringing up the average for the whole.

What’s interesting is comparing the metropolitan areas expected to see positive job growth with those that aren’t. For instance, Cleveland, St. Louis, Detroit, Philadelphia, Boston, and Washington, D.C. are forecast to miss the mark on unemployment. This is while areas such as Austin, Houston, Dallas, Orlando, Louisville, Palm Beach, and Portland make the top of the list for most promising economies.

To owners and managers in the aforementioned cities expected to see growth, the question is clear: How are you going to differentiate your property to ensure your piece of this action?

Fair Housing Month Good Time to Review Leasing Policies

Written by Apartment Management Magazine on . Posted in Blog

HUD_house in handsEach April, HUD observes Fair Housing Month, in honor of the 1968 Fair Housing Act that prohibits housing discrimination based on race, color, national origin, religion, sex, disability, and family status.

This year, HUD is encouraging rental applicants and tenants to exercise their rights under the Act.

In addition to the legal protections provided under the Fair Housing Act prohibiting housing discrimination based on race, color, national origin, religion, sex, disability, and family status, approximately 20 states, the District of Columbia, and more than 150 cities, towns and counties across the nation also prohibit discrimination against lesbian, gay, bisexual, and transgender (LGBT) individuals and families.

In 2012, HUD published new regulations to ensure that the Department’s core housing programs are open to all eligible persons, regardless of their sexual orientation or gender identity.

Twelve states and the District of Columbia, as well as several counties and municipalities
protect persons against housing discrimination based on their source of income.

A review of recent prosecutions shows confirms that HUD is making good on its promise to
pursue cases where tenants with disabilities have been denied companion animals, and
families denied housing on occupancy limits. A new ruling also clarifies that, while a
policy may not be discriminatory on its face, a landlord may still be prosecuted if that
policy causes a more subtle, “disparate” impact.

Landlords should take the time to review leasing policies for possible discrimination.
Some common areas to avoid include:

Rental ads that discourage protected tenants from applying;
Steering a protected tenant towards or away from a particular property;
Occupancy limits based on 2-per bedroom have come under scrutiny — avoid turning away
families if the property has a “bonus” room, loft, office or den that could easily be converted into a sleeping area.
Denying companion animals for tenants with disabilities, or applying any pet policies in that situation.


logo_aaoa American Apartment Owners Association | Company Website Rental property management can be very demanding. Our job is to make this day-to-day property management process smoother. AAOA provides a host of services ranging from tenant screening to landlord rental application forms and contractor directory to apartment financing. 

Landlord Jailed Over Tenant Crime

Written by Apartment Management Magazine on . Posted in Blog

UnderArrestA Pittsburgh landlord recently was thrown in jail for six months because of his “nuisance” rental.

According to a news report, neighbors and police “suspected” the property was being used as a drug house. Police say they’ve been called to the house dozens of times over the past few years. Officers did find drug paraphernalia on at least one call, and have responded to drug overdoses in the area.

In response to complaints, a judge previously ordered the landlord to evict all of his tenants, pay a $10,000 fine to the city for the nuisance, and repair the house.

However, when the case was reviewed, the court found that the landlord had not fully complied with the order. Now, the landlord will serve a six month jail sentence for contempt of court — unless he complies with the order.

Meanwhile, police have boarded up the building, and city officials are considering demolishing the property, according to the report.

It is unclear in this case whether the tenants were charged with crimes, or if the complaints of neighbors — that tenants were awake and “active” at 5:00 am, or that tenants were “making money” at the property, would have been sufficient evidence to convict each of them of these alleged crimes.

A number of cities across the country have recently enacted similar “nuisance” laws requiring landlords to evict tenants for disruptive behavior or suspected criminal activity. Unfortunately, this can be a daunting task if there is no evidence of an individual tenant’s wrongdoing. Often, police do not charge individuals or issue tickets at the scene, choosing instead to pursue the landlord, who then may have to reconstruct the event and attempt to evict each of the tenants for cause. That places landlords in a no-win situation, especially when fines are being levied daily.

However, there are steps that landlords can take to avoid renting to nuisance tenants:

Be careful who you allow in the property; always screen each adult occupant, including a criminal background check.

Adopt a crime-free lease policy that tracks your local nuisance laws. Make sure you have the ability to evict a tenant who violates the policy, even if you can’t prove they violated the law. Local police may participate in landlord training programs that help reduce crime in the area.

Keep a close eye on the property by performing regular property inspections. If you suspect drugs or other dangerous activities, call the police rather than trying to solve the problem yourself.

Get to the know the neighboring property owners, or at the very least, make sure they have your phone number in case they see something suspicious going on at the rental. You don’t want to be the last to know.


logo_aaoa American Apartment Owners Association | Company Website 

Rental property management can be very demanding. Our job is to make this day-to-day property management process smoother. AAOA provides a host of services ranging from tenant screening to landlord rental application forms and contractor directory to apartment financing. 

Should You Require Residents to Have Renters Insurance?

Written by Apartment Management Magazine on . Posted in Blog

RentersInsuranceRequiring residents to carry renters insurance is one of the most valuable property management levers that you have at your disposal. Unfortunately, a recent Insurance Information Institute (III) poll indicates a major discrepancy in the number of homeowners that have insurance at 96 percent compared to an estimated 35 percent of tenants who had renters insurance in 2013.

Inform and Empower Residents by Encouraging Renters Insurance

We all know that most anything can occur anytime – so why is there so much tenant hesitancy to invest in renters insurance? The core of the quandary is likely lack of knowledge on behalf of the tenant, many of whom believe that the contents of their abode are covered by your property insurance policy, which, as property managers know, is not the case.

Here are the facts. Your owner’s policy covers the structure but not renters’ possessions and, if the unit becomes uninhabitable, you aren’t responsible to provide a accommodations. Another simple fact is that renters insurance is actually fairly inexpensive. Arm yourself with accurate and current info, so you know how to approach potential residents about the importance of protecting their interests with proper coverage.

The Cost of Losing Everything

Certainly, those precious keepsakes, photos, and mementos can never truly be replaced, but a little cash replacement value can go a long way when all of a tenant’s belongings are lost due to a fire, windstorm, or other unpredictable act of nature. Furnishings, bedding, and incidentals such as medications and clothing are replaceable through renters policies, but coverage limitations will depend on the policy type the tenant chooses. Print up this handy Renters Insurance Checklist from the III, and offer it to new and potential tenants during the application process, because the cost of losing everything is incalculable.

Dispelling the Myth that Renters Insurance is Expensive

Many tenants often don’t want the hassle of one more bill, but renters insurance can be had for less than $200 per year nationwide according to estimates from the National Association of Insurance Commissioners. Discounts are available for many reasons including renters combining multiple policies, having good credit, being a senior or active military, and for having a long-term relationship with an insurer.

As a property manager and owner, you can do your part to foster insurance discounts for yourself and your tenants by providing:

  • Security Systems
  • Smoke Detectors
  • Deadbolt Locks
  • Ample Exterior Lighting
  • Property Security

Renters Insurance Benefits are Immediate Following a Disaster

Renters policies also provide displaced tenants with funds to cover temporary living arrangements and associated expenses. Today, most reliable insurers can make almost immediate arrangements to offer a stipend for a hotel or temporary housing arrangements for policyholders, which can be a huge burden on any family. Without renters insurance coverage, they may be out on the streets – something many people just don’t have the foresight to consider when opting out of renters insurance.

Don’t make renters insurance optional, – require your tenants to purchase coverage – or at least highly encourage them to do so.


appfolio Appfolio | Company Website | LinkedIn Connect |

AppFolio, Inc. develops Property Management Software that helps businesses improve their workflow so they save time and make more money.  Appfolio submits articles & blogs including topics of Resident Retention, Improved Owner Communication, Time Management, and more.

Crime Training Pays Off for Landlords

Written by Apartment Management Magazine on . Posted in Blog

CrimeFighting_LandlordsLandlords all across the country are fed up with crime in rental properties, and all the associated costs. Many communities are now pushing landlords to adopt crime-free rental policies. Usually, this means landlords would go to training sessions hosted by the local police department, and allow in-depth inspections of their properties.

The goal in mind for landlords is attracting higher quality tenants who will help to maintain a higher quality rental property, which in turn keeps profits up. A crime-free property accomplishes that goal.

Landlords can learn how to prevent and identify crime directly from a crime prevention officer while completing a training session. It is very difficult for the untrained eye to spot signs of serious crimes like drug sales or manufacturing.

Local police departments are eager to assist landlords wishing to help lower crime in the neighborhood. For example the Salem, Oregon police department is actively registering property managers for its annual landlord training in April. This is a two-day intensive class focusing on local rental laws and crime prevention, with topics like drug recognition in and around rental properties. The cost of this two day workshop is about $70 per person.

This demonstrates a growing trend; landlords who care want advice on how to prevent crime in the rentals. Cities strive to provide that training.

The only downside is the fees.

In addition to tuition, property owners may have to pay an annual licensing fee for each unit, and inspection fees on an as-needed basis. It’s possible for a community to adopt a policy that forces all landlords to attend the training sessions, willing or not.

The alternative is self-education. A central focus on crime training is screening tenants. Most seasoned landlords already know the value of properly performed background checks — and how invaluable quality tenant screening can be. Focusing on who you allow into the rental property can greatly reduce the risk of criminal activity.


logo_aaoa American Apartment Owners Association | Company Website 

Rental property management can be very demanding. Our job is to make this day-to-day property management process smoother. AAOA provides a host of services ranging from tenant screening to landlord rental application forms and contractor directory to apartment financing. 

Fewer Tenants Can Afford Rent

Written by Apartment Management Magazine on . Posted in Blog

Rent IncreaseAccording to a report just released by the National Low Income Housing Coalition, a renter needs to earn $18.92 an hour to afford a two-bedroom rental unit at fair market. That’s two-and-a-half times more than the federal minimum wage, and 52% higher than what was required in 2000.

The report, entitled Out of Reach 2014, reveals the drastic difference between what renters need to earn to afford rent and what the average renter actually earns. In 2014, the average renter earns $14.64 an hour. While housing costs vary nationwide, the report shows that a full-time minimum wage worker can’t afford a one or two-bedroom rental unit anywhere in the U.S.

According to Out of Reach 2014, the top five most expensive states are:

Hawaii, where renters need a wage of $31.54 per hour for a two-bedroom;
District of Columbia, $28.25 per hour for a two-bedroom;
California, where a two-bedroom requires $26.04 per hour;
Maryland, $24.94 per hour for a two-bedroom; and,
New Jersey, where renters need to make $24.92 per hour for a two-bedroom.

New York, Massachusetts, Connecticut, Alaska, and Virginia finish out the list of top 10 most expensive states in 2014.

The most expensive metropolitan area in 2014 is San Francisco, where an individual needs to earn $37.62 an hour to afford a decent two-bedroom rental unit at market rate. At the current federal minimum wage of $7.25, Out of Reach 2014 calculated that it would take more than two people working full-time minimum wage jobs to afford a decent two-bedroom rental home for their family.

Even if the federal minimum wage was raised to $10.10 per hour, as proposed by the Fair Minimum Wage Act of 2013, it won’t help in everywhere — only in Arkansas, Kentucky, and Puerto Rico.

There were over 40 million renter households in the U.S. in 2012, making up 35% of all households nationwide. This is a 1.1 million increase over the previous year and double the rate of growth in previous decades. One in every four of these renter households are extremely low income, meaning they earn less than 30% of the area median income.

The population of extremely low income renters has risen to 10.2 million, and these are the households that experience the greatest housing instability and risk of homelessness. NLIHC calculates that there are just 31 affordable and available units for every 100 extremely low income renter households. However, NLIHC says that closing this gap is achievable through funding of the National Housing Trust Fund, which could provide communities with the money to build, preserve, and rehabilitate rental homes that are affordable for extremely and very low income households.

Extensive data for every state, metropolitan area, and county in the country are available online at www.nlihc.org/oor/2014.


logo_aaoa American Apartment Owners Association | Company Website 

Rental property management can be very demanding. Our job is to make this day-to-day property management process smoother. AAOA provides a host of services ranging from tenant screening to landlord rental application forms and contractor directory to apartment financing. 

How To Handle Property Inspections for Occupied Units

Written by Apartment Management Magazine on . Posted in Blog

Property InspectionAs the owner of rental properties, whether it be one or multiple units, annual inspections are a vital part of the process. Sometimes, you might have a long-term tenant that religiously renews that lease year after year – and you appreciate that. However, unless you employ a property manager to handle daily operations, property upkeep is your responsibility and you’ll need to perform the occasional inspection while a unit is still occupied.

After all, you can’t fix things when you’re unaware of their current condition, making property inspections during tenancy sometimes unavoidable. Here are some tips concerning the do’s and don’ts of approaching that annual inspection when the time rolls around, even if tenants have previously approved of your right to handle the task within your rental or lease agreement.

Do Give Notice Prior to Inspections

Unless you suspect your current tenant of violating current restrictions or policies within their lease such as unapproved residents or pets, current tenants appreciate you giving notice before inspection. Even if the worst they have to hide is dirty laundry or dust, unless you’ve stipulated the potential for surprise inspections in your lease agreement, the law mandates advanced notice unless a local law or ordinance is being broken.

Do Encourage Resident Presence During Property Inspections

More importantly, you should encourage at least one primary leaseholder to be present during your inspection. This could prevent any accusations of theft or mischief down the line, and it will also give you the opportunity to ask the tenant about any potential problems with appliances, systems, or concerns about the unit. Residnets are often very willing to open their homes to you just to catch your ear about a needed repair or suggestion.

Do Let Residents Understand Why You’re Doing the Inspection

Is that tile chipped in the bathroom? Is the kitchen faucet leaking? How about servicing that HVAC system? Structural integrity and appliance and systems check are a part of homeownership, whether you lease or rent it or not. Let your tenant know the reasons for your visit, and that it is a routine event both for their benefit and yours.

Don’t Take Photographs Indoors of Personal Items

You may only intend to get that sagging windowpane, but you accidentally got part of the mantle that features family photos. Unlike a vacant home, occupied rental property inspections have certain rules, and taking photos of identifiable personal items like pictures, computers, valuables, pets, or people is a no-no.

Don’t Engage in Face-to-Face Confrontations with Residents about Issues

As the owner,  steam may be coming from your ears if you make an inspection only to find your property is being neglected in some way. It’s important to visually and physically document such issues, but it’s equally essential to address such problems with your resident – in writing. Verbal confrontations could lead to your tenant skipping out on you, bad mouthing your reputation as a renter, or even legal troubles down the line. Keep your notifications formal and in writing if problems surface during your property inspection.

Whether annual, interim, or spot inspections are on the agenda for your rental properties, keep these do’s and don’t in mind to keep tenants happy and to ensure you’re acting in accordance with renter’s legal rights.


appfolio Appfolio | Company Website | LinkedIn Connect |

AppFolio, Inc. develops Property Management Software that helps businesses improve their workflow so they save time and make more money.  Appfolio submits articles & blogs including topics of Resident Retention, Improved Owner Communication, Time Management, and more.