• Appliances – Inspect for missing knobs. Light all of the burners and oven to check for outages.

• Paint – There should be no signs of peeling paint inside or outside. Check the railings, along with the front and back door for any rust.

• Drywall – Inspect for holes, cracks or structural defects.

• Carpet – There should be no pulls or tears in the carpet. Check for any cigarette or other burns in the carpet. If you detect any snags try repair the snag so it will not cause further damage.

• Doors and Windows – Doors should close all the way. In the winter doors may shrink and in the summer doors may swell, so adjust accordingly. Windows should have no cracks or broken panes and ha

When was the last time you, your Property Manager or management company inspected your investment property? Do you know? If not, you should conduct an inspection as soon as possible.

I met an Investor who had not inspected his investment property in six (6) months. The tenants left without a final inspection. The final inspection uncovered substantial water damage from toilet. Black mold was growing on the ceiling and the walls. The doors to the dyer, refrigerator and freezer were in the backyard.

The damages were $17,000 and it was almost three (3) months before the property was restored. The Investor could have avoided the damages by conducting quarterly inspections.

Approach every investment like a business. Would you wait months or years to inspect your records and bills? Of course not, so why would you not conduct quarterly inspections on your investment property?

Many new clients say, “I don’t have time to conduct inspections.” A way to save time and money is to hire a Property Manager or management company to manage the property and conduct quarterly inspections. Property Managers and management companies charge a monthly fee. A major repair could be

significantly higher than the yearly management fees.

Still not convinced you should inspect your property at least once a quarter? I heard about an Investor who was sued because a tenant cut her hand on a rusty porch railing. The Investor lost and settled for almost $45,000 for the cost of hospital bills and damages.

Another Investor had a build up of human feces in the toilets and bathtubs and on the walls. She had to replace all of the toilets and bathtubs. It took several hours and three (3) coats of paint to repair the walls.

Include a clause for repairs and/or damages with a deductible amount. If the repair is $200 and the deductible is $100, then your cost is $100. A home warranty may lower your out of pocket costs. The repair deductible should help reduce the amount of repairs and/or damages reported. Demonstrate that you value your property, as should your tenants.

When you conduct the inspection, ask yourself, “would I live here if items needed to be repaired or replaced?” If the answer is “NO,” then make the repairs to show your tenants that you value them and your property.

The following are suggested of areas and items to inspect. Consult professionals who are legally qualified to provide you with the appropriate information or to complete repairs.

• Plumbing – Flush all toilets to check if they flush and fill. Inspect under the sink for any leaks. Do the sinks drain at a normal or slow pace? A slow draining sink is a possible sign of a clog or drain build up.

• HVAC – Check the filter. Manufactures suggest changing the filters every three (3) to four (4) months.

• Appliances – Inspect for missing knobs. Light all of the burners and oven to check for outages.

• Paint – There should be no signs of peeling paint inside or outside. Check the railings, along with the front and back door for any rust.

• Drywall – Inspect for holes, cracks or structural defects.

• Carpet – There should be no pulls or tears in the carpet. Check for any cigarette or other burns in the carpet. If you detect any snags try repair the snag so it will not cause further damage.

• Doors and Windows – Doors should close all the way. In the winter doors may shrink and in the summer doors may swell, so adjust accordingly. Windows should have no cracks or broken panes and hav

estment like a business. Would you wait months or years to inspect your records and bills? Of course not, so why would you not conduct quarterly inspections on your investment property?

Many new clients say, “I don’t have time to conduct inspections.” A way to save time and money is to hire a Property Manager or management company to manage the property and conduct quarterly inspections. Property Managers and management companies charge a monthly fee. A major repair could be

significantly higher than the yearly management fees.

Still not convinced you should inspect your property at least once a quarter? I heard about an Investor who was sued because a tenant cut her hand on a rusty porch railing. The Investor lost and settled for almost $45,000 for the cost of hospital bills and damages.

Another Investor had a build up of human feces in the toilets and bathtubs and on the walls. She had to replace all of the toilets and bathtubs. It took several hours and three (3) coats of paint to repair the walls.

Include a clause for repairs and/or damages with a deductible amount. If the repair is $200 and the deductible is $100, then your cost is $100. A home warranty may lower your out of pocket costs. The repair deductible should help reduce the amount of repairs and/or damages reported. Demonstrate that you value your property, as should your tenants.

When you conduct the inspection, ask yourself, “would I live here if items needed to be repaired or replaced?” If the answer is “NO,” then make the repairs to show your tenants that you value them and your property.

The following are suggested of areas and items to inspect. Consult professionals who are legally qualified to provide you with the appropriate information or to complete repairs.

• Plumbing – Flush all toilets to check if they flush and fill. Inspect under the sink for any leaks. Do the sinks drain at a normal or slow pace? A slow draining sink is a possible sign of a clog or drain build up.

• HVAC – Check the filter. Manufactures suggest changing the filters every three (3) to four (4) months.

• Appliances – Inspect for missing knobs. Light all of the burners and oven to check for outages.

• Paint – There should be no signs of peeling paint inside or outside. Check the railings, along with the front and back door for any rust.

• Drywall – Inspect for holes, cracks or structural defects.

• Carpet – There should be no pulls or tears in the carpet. Check for any cigarette or other burns in the carpet. If you detect any snags try repair the snag so it will not cause further damage.

• Doors and Windows – Doors should close all the way. In the winter doors may shrink and in the summer doors may swell, so adjust accordingly. Windows should have no cracks or broken panes and ha

rch railing. The Investor lost and settled for almost $45,000 for the cost of hospital bills and damages.

Another Investor had a build up of human feces in the toilets and bathtubs and on the walls. She had to replace all of the toilets and bathtubs. It took several hours and three (3) coats of paint to repair the walls.

Include a clause for repairs and/or damages with a deductible amount. If the repair is $200 and the deductible is $100, then your cost is $100. A home warranty may lower your out of pocket costs. The repair deductible should help reduce the amount of repairs and/or damages reported. Demonstrate that you value your property, as should your tenants.

When you conduct the inspection, ask yourself, “would I live here if items needed to be repaired or replaced?” If the answer is “NO,” then make the repairs to show your tenants that you value them and your property.

The following are suggested of areas and items to inspect. Consult professionals who are legally qualified to provide you with the appropriate information or to complete repairs.

• Plumbing – Flush all toilets to check if they flush and fill. Inspect under the sink for any leaks. Do the sinks drain at a normal or slow pace? A slow draining sink is a possible sign of a clog or drain build up.

• HVAC – Check the filter. Manufactures suggest changing the filters every three (3) to four (4) months.

• Appliances – Inspect for missing knobs. Light all of the burners and oven to check for outages.

• Paint – There should be no signs of peeling paint inside or outside. Check the railings, along with the front and back door for any rust.

• Drywall – Inspect for holes, cracks or structural defects.

• Carpet – There should be no pulls or tears in the carpet. Check for any cigarette or other burns in the carpet. If you detect any snags try repair the snag so it will not cause further damage.

• Doors and Windows – Doors should close all the way. In the winter doors may shrink and in the summer doors may swell, so adjust accordingly. Windows should have no cracks or broken panes and ha

pection, ask yourself, “would I live here if items needed to be repaired or replaced?” If the answer is “NO,” then make the repairs to show your tenants that you value them and your property.

The following are suggested of areas and items to inspect. Consult professionals who are legally qualified to provide you with the appropriate information or to complete repairs.

• Plumbing – Flush all toilets to check if they flush and fill. Inspect under the sink for any leaks. Do the sinks drain at a normal or slow pace? A slow draining sink is a possible sign of a clog or drain build up.

• HVAC – Check the filter. Manufactures suggest changing the filters every three (3) to four (4) months.

• Appliances – Inspect for missing knobs. Light all of the burners and oven to check for outages.

• Paint – There should be no signs of peeling paint inside or outside. Check the railings, along with the front and back door for any rust.

• Drywall – Inspect for holes, cracks or structural defects.

• Carpet – There should be no pulls or tears in the carpet. Check for any cigarette or other burns in the carpet. If you detect any snags try repair the snag so it will not cause further damage.

• Doors and Windows – Doors should close all the way. In the winter doors may shrink and in the summer doors may swell, so adjust accordingly. Windows should have no cracks or broken panes and ha

• Appliances – Inspect for missing knobs. Light all of the burners and oven to check for outages.

• Paint – There should be no signs of peeling paint inside or outside. Check the railings, along with the front and back door for any rust.

• Drywall – Inspect for holes, cracks or structural defects.

• Carpet – There should be no pulls or tears in the carpet. Check for any cigarette or other burns in the carpet. If you detect any snags try repair the snag so it will not cause further damage.

• Doors and Windows – Doors should close all the way. In the winter doors may shrink and in the summer doors may swell, so adjust accordingly. Windows should have no cracks or broken panes and have a screen for each window.

• Blinds – Check for broken blinds, chords or blinds that may have fallen.

• Home Exterior – Inspect the gutters for any signs of damage. The gutters should be affixed to the home properly and should not have any leaves or debris present.

• Fire Safety Items – Test the fire alarms. Batteries should be changed at least once a year. Inspect sprinkler heads for damage. Have a minimum of one fire extinguisher per floor. Check for lint build up in the dryer.

• Power Outlets – Inspect outlets for any loose wires for missing cover plates. Inspect the main circuit breaker for any damage.

Gutters, windows and plumbing are areas that can cause a lot of damage if there is little or no upkeep. Water can also cause a lot of damage because it is almost impossible to predict where water will travel.

Conducting quarterly inspections will identify any possible issues before it costs you a lot time and money. If you do not have the time, hire a Property Manager or management company for your real estate investment team (REIT).

For more information on hiring a Property Manager, assistance with setting up a real estate investment team (REIT), mortgage planning options contact Jennifer Johnson, your trusted real estate investment advisor.

Copyright© 2007 by Jennifer Johnson. Others may not copy this material without written permission of Jennifer Johnson. The views expressed in this RE News are those of the author(s) and do not necessarily reflect the official policy, position, or opinions of RE/MAX or RE/MAX Gateway. If you arecurrently working with a Realtor® to sell or purchase real estate this is not intended as a solicitation.