The benefits of going above and beyond during move-in and move-out inspections

The property inspection at the start and end of a lease provides a golden opportunity for landlords. This inspection is mandated by the Rental Housing Act, so it needs to be done, but it's also a valuable opportunity for everyone to protect their interests. Jawitz Properties breaks down the importance of move-in and move-out inspections, explaining how to maximise the value of the experience.

What is the purpose of move-in and move-out inspections?

The purpose of property inspections is to protect both landlords and tenants by clearly documenting the property's condition at the start and end of the lease. By recording the condition of the property at the start of a lease, there's a baseline to work from later. The move-in inspection should take note of the condition of walls, floors, appliances and fixtures, and carefully document any existing damage.

Plumbing fixtures, electrical installations, and security features should be thoroughly inspected to ensure they are in proper working order. If the property includes a garden, its condition should be noted, with particular attention given to the swimming pool, if applicable.

From a tenant's perspective, this is your assurance that you won't be unfairly held responsible for existing damage later. For the landlord, the fact that the condition of your property has been documented means that the tenant is more likely to take care of your investment. You'll also be able to use the evidence agreed upon during these inspections to highlight any damage that was done during your tenant's stay.

What needs to be done during an inspection?

The landlord (or their property practitioner) and tenant must jointly inspect the property prior to the tenant moving in to ascertain whether there are any defects. Any damage or defects that are identified must be recorded in writing, and the document shared with both parties. The tenant then has up to seven days after moving in to report any additional damage not noted during the initial inspection.

When the tenant moves out, another inspection must be done and notes should be compared to the entry inspection. This will provide clear evidence of whether any damage was done during the tenant's stay, and whether the landlord will be entitled to deduct any funds from the deposit that was paid.

Rules relating to property inspections

According to the Rental Housing Act, a joint inspection must be carried out before a tenant moves in, and within three days of the tenant moving out. If damage (beyond fair wear and tear) is discovered during the second inspection, the landlord is entitled to deduct repair costs from the tenant's deposit - but he or she must provide receipts or invoices for all repair work. If no damage is found, then the tenant's deposit (as well as the interest that has accrued on this amount), must be returned within seven days. If repairs do need to be carried out, the landlord has 14 days after the property has been restored, in which to refund the balance of the deposit.

Extra steps landlords can take to protect their properties

While the Rental Housing Act requires that the condition of the property at the start and end of a lease be carefully documented, there are some useful ways for landlords to be extra careful and benefit from the experience.

• Create a room-by-room checklist, noting the condition of walls, floors, ceilings, doors, windows and other fixtures. This not only provides you with a comprehensive picture of the state of your property - it can also help you plan and budget for any maintenance required.
• Create a video walkthrough of your property with a date stamp. In the case of any conflict, this can provide a visual backup to the written report, which must be attached to the signed lease agreement.
• Foster a positive relationship with your tenant right from the first inspection. This sets a good tone for the relationship with the tenant going forward.

The Jawitz Properties Team offers an array of rental asset management solutions to help landlords maximise their return on investment. If you'd like our experienced property practitioners to manage entry and exit property inspections on your behalf, get in touch today.