Safety and Maintenance Inspections
Regular property inspections for safety and maintenance help protect a landlord’s business. Property inspections allow landlords to identify and correct problems before a problem becomes a costly emergency repair or causes collateral damage.
In most states, property inspections may be a statutory requirement for rental housing compliances. The implied warranty of habitability, landlord-tenant statutes, local codes for business licenses, building, fire, safety, and health codes, the Section 8 Housing Choice Voucher Program inspections, business insurance coverage, and lease agreement terms and conditions can require property inspections. There is a greater potential for loss and liability for a landlord if safety and maintenance inspections are not conducted on a regularly scheduled basis.
State Statues
Warranty of Habitability
In almost all states, a landlord is required to provide housing that meets basic structural, health, and safety standards. Under the legal doctrine of implied warranty of habitability, landlords are responsible to maintain and repair the rental property throughout the tenancy term. The basis for the implied warranty comes from either local building codes which specify minimum requirements for essential services or from widely held common-law beliefs of what constitutes decent housing. Since some states have more stringent requirements than others, it is important for a landlord to know the specific standards under his state’s law and to use those standards as a minimum standard for his properties in order to fulfill his legal responsibilities and protect his financial interests.
Local Codes
Some municipalities have implemented rental housing inspection and registration programs to help ensure rental units meet basic housing code standards. These programs require properties to be inspected by qualified rental housing inspectors to help identify and correct habitability issues of health, safety, and security. Landlords may be required to certify their properties meet quality of housing standards before they can register their properties with the municipality.
Lease Agreement Terms and Conditions
The importance of regularly scheduled inspections can be emphasized by clear language in the lease agreement and the landlord’s rental rules. The lease should specify the types of inspections, timeframes, and notifications that are required for tenant health and safety issues and property maintenance and repair. Separate sections in the lease agreement for maintenance responsibilities and inspection schedules will help reinforce the tenant’s responsibility to take good care of the rental premises and to promptly report any items that require servicing.
The section regarding maintenance should include a list of the tenant’s responsibilities, including the duty to report problems requiring landlord action. The section regarding inspections should state that there will be periodic inspections by the landlord or by his agent, and provide the approximate frequency of inspections, and method of communication and amount of advance notice required before landlord entry.
An annual safety and maintenance inspection is generally considered an acceptable standard, but semi-annual inspections may have more value to help reduce risk and contain costs by identifying a problem early on.
Periodic inspections will allow the landlord to inspect the property for a variety of maintenance issues, including those that may not be reported by the tenant but would be costly for the landlord if not taken care of. Inspection items usually include plumbing, furnace and air conditioning problems, roof or gutter repair and housekeeping items that need attention to maintain health and safety conditions.
Landlord Entry
Landlord-tenant statutes of most states require specific advance notification to the tenant before a landlord can enter the rental unit to conduct an inspection. There may be different requirements regarding landlord entry in the event of an emergency or other need to access the rental unit. By giving the proper legal notification, a landlord will usually receive the tenant’s cooperation in scheduling a mutually agreeable time for inspection.
Property conditions can quickly change if landlords fail to routinely inspect units and some deferred maintenance needs can result in serious collateral damage when not attended to early on. While a simple drive-by of the property can quickly determine if there is visible exterior damage or evidence of lease violations such as unauthorized vehicles or parking on the lawn, a more thorough inspection will be needed to assess health or safety hazards and to discover damage to the interior of the rental unit.
Landlord-Tenant Statutes for Tenant Move-In/Move-Out Checklist
Many states require a move-in checklist to be completed when possession is given to the new tenant. The checklist is a written statement of the condition of the rental unit at the time of move-in. The completed checklist documents any existing damage to the unit and/or furnishings and requires acknowledgement of the unit’s condition by the signatures of both tenant and landlord.
The original signed checklist should be retained by the landlord in the tenant’s file and a copy given to the tenant. That same checklist should be utilized when the landlord conducts periodic inspections and will be used to inspect the rental unit upon the tenant’s move-out. The move-in and move-out inspections serve as evidence for why deductions were taken from the security deposit and for a lawsuit for damages in excess of the deposit.
The move-in checklist when properly completed is a valuable document that serves as the baseline for the condition of the rental unit throughout the rental term. It is helpful to have the move-in checklist available during the annual inspection. It provides a quick reference as to whether the rental unit remains in satisfactory condition.
It may prove helpful to provide another copy of the move-in checklist along with a copy of the annual inspection checklist to the tenant before the actual inspection date to allow the tenant advance notification of the items/conditions to be inspected. Minor items that should have been taken care of by the tenant can be dealt with before the inspection date and the actual inspection should go much smoother since the tenant will know what to expect.
Landlords can use the checklist to better manage properties by knowing when repairs were done and when to schedule future routine maintenance. Checklists are another source of documentation to help refute claims of neglect or unsafe conditions in a rental unit. As with all property records, inspection documents should be retained in a permanent file for the appropriate time period as specified by specific legal requirements or by statute of limitation laws.
Section 8 (Housing Choice Voucher Program) Inspection
When a landlord participates in the Section 8 voucher program, his rental property is required to meet Housing Quality Standards (HQS) in order to receive the rental subsidy payments. These standards were developed to insure that rental units provide safe, decent, and sanitary housing under the Section 8 program. HQS standards are minimum habitability standards and there may be additional habitability requirements under state or local statutes.
Annual inspection of the rental premises by a Section 8 inspector helps to insure that there are no health or safety issues that could adversely affect the Section 8 participant and to assist the landlord in identifying issues that pose a risk to the tenant.
Business Insurance Coverages
Property inspections may be conducted by insurance companies to evaluate property conditions, identify potential risks, analyze current business coverage, and offer recommendations for risk management. Terms and conditions of business policies may require scheduled inspections.
Seasonal Inspections
Seasonal conditions in many parts of the country may require special attention to the property’s exterior surfaces, mechanical systems, common areas, and grounds. Winter conditions in many parts of the country can be particularly harsh on property structures, systems, and the landlord’s bottom line. Seasonal inspections can point to conditions that require weather proofing or repair before bad weather or storm season sets in.
Benefits of Regular Inspections
Proper maintenance extends the useful life of structures, systems, and equipment and can reduce the long-term expense of maintenance. A proactive policy for property management with scheduled inspections for exterior and interior conditions along with appropriate corrective action taken for identified problems can help reduce landlord exposure to potential liabilities regarding health and safety issues.