When do you need a property inspection?
Property inspections can be nerve-wracking for people who have recently acquired property or are trying to sell or rent it out. There are multiple reasons why a property is up for inspection. In this article, we will explore these reasons and the types of property inspections involved. The type of inspection will depend on the…
Property inspections can be nerve-wracking for people who have recently acquired property or are trying to sell or rent it out. There are multiple reasons why a property is up for inspection. In this article, we will explore these reasons and the types of property inspections involved. The type of inspection will depend on the kind of property and situation.
Pros that come with Property Inspections
Despite the stress brought by preparations for property inspections, there are many benefits to it:
- Approve your property as being standard and without issues: Property inspections are conducted to determine if your property is safe and within the building standards. Hidden issues with your property will also be seen during inspections. This can also help you make preventive maintenance.
- The property could be worth much more than you expected: Certain inspections may require a third party appraiser to come and inspect the interior and exterior. The price will then be determined based on similar homes nearby. That price may be higher than you expected.
Types of Property Inspections
The city or the municipality where your property is situated may be up for charges when inspecting your property such inspection could include:
- Certificate of Occupancy: It can also be referred to as a CO. This inspection type certifies that the property is safe to live in. It is usually necessary for every type of property like homes, etc.
- Certificate of Habitability: It is based on whether your property meets specific health and safety codes according to the laws governing properties.
- Fire Inspection: Fire inspection may be required whenever you re-rent a home to know if you possess adequate carbon monoxide and smoke detectors on your property.
This is to check if construction work on your property is up to code. It includes:
- Building inspection: Your municipality or county does this inspection to see that a building passes a general building inspection; targeting items such as framing, drywall installation, siding, roofing and so on.
- Plumbing Inspection and Electrical Inspection: Plumbing inspection would be done to disapprove rough plumbing. Electrical inspectors would inspect the wiring and how well the electrical upgrading is.
Inspection like this type is under the bank when you are purchasing a home with its financing, or the buyer is doing the same. It could include:
- Appraisers: Your property would require an appraisal as a bank loan requirement and the bank would hire a third party appraiser who will inspect the property. Banks do this to determine how able you can repay the loan you took from them.
- Environmental Site Assessment: This is not always required and is common in commercial properties or larger multi-families to avoid having properties in hazard-prone areas.
The insurance company may follow the loan you took from them. Or the one the buyer took to come and conduct their own inspections on your property. They will send their representatives to do that, or they may also contract a third party inspector to carry out the inspection. Even an internal inspection of the property is possible too.
The reasons for such inspections is to determine the liability risk and to establish if the home is insurable based on the type of insurance you are buying. To be specific, the bank wants to examine liability issues like damages or depreciation. It will help them avoid future false insurance claims for issues that existed before but were unseen.
Move-in Property inspection
Moving into a home has more to do in the process than merely signing a lease. Conducting a property inspection just before residents move in means that you can hold them accountable. Accountable for damages, and curtail the possibility for security deposit disputes. Besides, this is essential as prospective tenants can thoroughly check to know if the property has any issues or not.
Inspections of this sort, need to have both of you complete a walk-through inspection. You also need to record any existing damages the property has experienced. By doing this, you and the tenant will avoid any legal disputes in the future concerning the condition of the property.
Move-out Property Inspection
It is an inspection by you and the tenant when the tenant is moving out of your property. That is to check and record any damages beyond the normal wear and tear. When carrying out this inspection, you can also compare your outcome to the report of the move-in inspection to assess how depreciated the house is. In case there is a need for repairs, then it would be essential to record the cost.
Owning property is a huge responsibility. Property owners live with the legal responsibility to ensure that their property is safe for them and their family. Or the next family coming in as tenants. All these routine inspections and many more (not covered above) are there to avoid minor issues before they become major problems. Being proactive is essential and having routine inspections done thoroughly and regularly is imperative to avoid potential tragedies.
If you or anyone else you know is needing guidance in property inspections, please think of Green Ocean Property Management, where you get more than a property manager, you get peace of mind.
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