EP 30: Property Inspections Unveiled: Essential Tips for Landlords and Tenants

In this episode of the Property Investors Handbook Podcast, we delve into the crucial role of property inspections in safeguarding your investment and ensuring tenant compliance. Joined by Lachlan Sutherland from Sutherland's Property Management, we explore the key elements of a thorough inspection, common issues discovered during inspections, and how to handle delicate situations like tenant damage or unauthorized pets. Whether you're a landlord or a tenant, this episode offers valuable insights into maintaining a positive and transparent rental relationship. Tune in to learn how regular inspections can protect your property and foster trust. 

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Discover the secrets of successful property management and investing on "The Property Investors Handbook" podcast. Join Colleen Sutherland as she shares expert insights and strategies for acquiring, managing, and maximising returns on real estate investments. Whether you're a beginner or seasoned investor, this podcast is your essential guide to navigating the world of property investment. Tune in and unlock the keys to financial success in real estate.

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  Hello and welcome back to the Property Investors Handbook Podcast. In today's episode we're delving into a critical topic of property inspections. Now these inspections are not just a routine check, they are pivotal in maintaining the value of your investment and ensuring tenant compliance. Now to explore this topic we've got a very special guest in the studio today, Lachlan Sutherland from Sutherland's Property Management.

Welcome to the studio, Lach. Thank you for having me. Fantastic. Now, look, Lachlan it is great to have you here because you're the expert at these, property inspections and do most of them for property, for Sutherland's property management. So, look, can you start? By explaining maybe the importance of having a regular property inspection for a rental property.

Well, I mean, expert could be a stretch, but I'll, I'll, give it my best shot. You'll take it. Um, The importance of doing rental inspections, I guess there are two main factors to doing it. One is to make sure that the tenant is looking up to the property, pretty standard. And two is to just keep an eye on things that might degrade in the property, which is something that I think people forget about, especially if properties have been fitted with, like cheaper outlets, appliances, fittings, fixtures, just keeping an eye on that because it can end up costing landlords more.

down the track. If you're not keeping an eye on what might be on its way out. Sure.

Cause I think that's probably what most people sort of think. It's all about checking up on the tenant and making sure they're keeping everything spick and span and, you know, aren't doing the wrong thing. But, it's just as important to be, you know, checking for things that need to be looked at and upgraded, isn't it?

Yeah, absolutely. You know, we see things like tapware that ends up degrading from rust or calcium buildup, and then That can cause all sorts of plumbing issues down the track. So just keeping an eye on those things as well as the tenant. Yeah,

sure. Okay. So what are the key elements or the things you go in looking for then during inspection?

What do you got your eyes open for?

Well, one thing that we've really been keeping an eye out for the last couple of years, because it's been so wet and rainy is water damage. Okay. Mold even. Yep. Mold as well. Particularly on ceilings because I mean, how often are you always looking up? To check what's going on in your ceiling.

So it's things like that, because that will obviously have further ramifications down the track. It could mean that there's a leak in the roof, in the ceiling, in the walls of the house. And so that's one thing that we've really been looking out for the last few years. Sure. And

seeing a bit of it as well.

Yes, yeah. Usually it's been reported by tenants, but there have been times that we've noticed things, upon inspection where we thought, something suspect is going on here. So yeah, that's one thing that's really, that's been really big the last few years.

Okay, no problems. What, are tenants usually home when you do these inspections?

What would you say? More

often than not, They are. Tenants are home. Yeah. Okay. They like to be there generally? I guess so. I'm not a renter myself, but I probably would prefer to be home just for that peace of mind. Sure. Just, you never know. Some agents give us a bad name, so I'd I would prefer to be home, but yeah, they're more often than not.

People are home. They are home. And you'd be surprised how many people are actually still asleep in bed when I arrive. Really? Yeah. Wow. Okay. And you've woken them up. Yeah, there's a few, a few knocks, a few, calling out to the house, thinking that everyone's Look, it's happened

to me. I've, forgotten about inspection, not being asleep, but just, Oh, that's right.

You're coming today. Oh God. And you look around the house and I haven't cleaned up. I haven't How That's a question then for you. How important when you turn up for an inspection is that they've actually The house is clean and tidy. It's not actually a prerequisite for you to tick off, is it? It's just that they're maintaining the property.

Is that right?

Yeah. I mean, there's not a box to tick on the report that says tenant was awake upon entry, so it's not something we're really grading on, but it doesn't really affect it that much. We then go through, do our regular checks. Cleanliness varies from tenant to tenant. Some are under the impression they are.

a bit cleaner than what they are, but I think it's important to give them some kind of leeway as well. You know, like if there's a dish in the sink or next to the sink, I've seen people get in trouble for it before. Really? Yeah. I see a lot of stuff go viral on TikTok. And that's where a lot of agencies are getting in trouble when they've gypped people on their, On their inspection sent off the feedback to the tenant and then the tenant showed the condition of the place and you know anything could be edited or changed in between all of that there's so many factors but you know I think I think given the way that the rental market is becoming so hard for tenants.

There's a little bit of wiggle room in terms of maybe they didn't quite get the vacuum under the couch Or they didn't do all the dishes before I arrived or the dishwashers on so I can't check inside it It just things happen. So it's also trying to find that balance of being fair But also protecting the landlord's investment

sure and in terms of finding things that need work Do you often turn up and find things and the tenants even surprised that you've noticed it that they haven't?

Yeah, we do sometimes show up and find things that the tenant hasn't noticed, but then again, that is a benefit of having the tenant there home for the inspection because they can point out things that they've noticed going on. Half the time they'll point it out knowing full well, it's not much to worry about, but it's something we can keep an eye on.

That you should be aware of. Yeah. And when they are home, if I do notice something, I can ask them to say, have you noticed this? Has this been an ongoing issue? Was this something that, Like, was this like something that you've done yourself or is it just shown up? And then that way we can investigate the issue a little further.

Okay, cool. And how often do you Should inspections be conducted? How often do you do them at Sutherlands? Is there a set time frame?

So in terms of a set time frame, you can't do inspections more frequently than, three months. Okay. So that's the minimum. That is the minimum. Yes. It also depends on the fees that the landlord are paying.

So for the, For the people on a higher rate, we would do them more frequently,

but

there, there are options and negotiations that usually Colleen works out with them to determine how often they want to be done. There are some tenants that we prefer to keep a closer eye on just in case, like if we've had issues in the past and then others I show up to every time.

And. Everything's spick and span. Nothing changes. Nothing's gone wrong. So, they're sort of easier ones that we can do less frequently if that's what the landlord is comfortable doing.

Sure. Okay. Tricky question for you now. You turn up and you see a bit of tenant damage. How do you handle a situation like that?

Well, the first thing to do is to find out how it happened and so it can be an awkward conversation to have but you've got, if the tenant's home, you've gotta, you've gotta come over and just say, hey, what's going on here? If they're not home, get them on the blower later on just to find out what went down.

Yeah, it's not pleasant to have to do and usually they're probably hoping that But a lot of our tenants have been really great in terms of if they have damaged something themselves. They've come to us before we've even got to the property for the inspection to say, Hey, look, we've got this issue, you know, this fell over and cracked a tile, or the door blew open in the wind and it's, the handles popped a hole in the wall.

And nine times out of 10, they're, you know, on it in terms of repairing it themselves, or they're letting us get our people in that we Sorting out whatever Yeah, our maintenance people come in to fix everything up, so it's, yeah, it's awkward, and it's not pleasant to also have to tell the landlord, because they don't, they're not in the conversations, they're not there in person, they don't get to see it, so when they get the email or the call to say something's been damaged, they might freak out, be like, oh god, what's happened, what have they done, how much is it going to cost me, so it's, It's sort of go, going between the two parties as well to make sure that no one's freaking out, no one's died, so that it's not the end of the world.

It'll get fixed. Sure. Everything's fine.

Alright, now I guess there's probably been times where you've discovered, let's call it evidence, where, maybe once or twice, where a tenant is maybe trying to hide something that they don't want you to find out about. I guess probably a common one might be an extra pet.

Huh. Have we come across situations like this before?

I, yes, I actually have. It's, you know, sometimes you'll find like a box of kitty litter and a scoop in the laundry or something. But there's no cat on the lease. Yeah. Yeah. Yeah. So that is a tricky one. Obviously the, the legislation around having pets has changed recently.

Sort of going a bit more in the way of Victoria, they're very open to pets and, and trying to give renters like a fair chance to keep their pets because often they've been with them for years and years and years and you don't want to get rid of them. But landlords are then on the flip side, wary about any damage or just degradation to the property, to things like carpet in particular.

Cause that's where, you It can trap smells. It can get really dirty. If they aren't terribly clean pets, they could be getting pests or anything like that. So yeah, there have been a couple of times where I've noticed that there are pets, especially if you don't see anything like toys or food or anything, but then you sort of see behind the blinds or the curtains, it's like a buildup of fur.

And again, it's another awkward chat to have to say, Hey, it looks like there might be a pet here. Yeah.

Let's just talk this through for a second what you do find this and you do have the chat They're either going to deny or admit it. Let's just say they admit it. What then happens? Can you then? Talk it through with the landlord be the go between and see whether they can get that It's what's got to be one of two things does it so either get rid of the cat or the cat?

Goes on to the leases are they the only two outcomes and how would you?

Yeah, I mean, there, there is going down the route of breaching the tenant, which is, you know, it's a bit more of a serious mark against their rental history and their tenancy record with us. And yeah, that those kind of are the two options is getting on the lease or having to breach.

Yeah. Get, Which means they've got to get the pet out. Yeah, and I mean, I'm a pet owner myself, so it would be devastating to have to Would you usually go to the

owner then and give them,

well, with that new Well, we want to start the conversation with the tenant, because they're the ones with the pet, potentially, And the hard part about then going to the landlord to say they've got a pet, can we put it on the lease, is that we've already started the conversation with the dishonesty of having the pet there.

Of sneaking it in the first

place.

And I know it's a common thing, I know of friends that have done it and they've told me, I'm like, oh okay, I'm not gonna, I'm not gonna listen to that one, that's fine, that's.

As long as we're not the property managers on that one.

Yeah, that's, that's your rickety bridge to walk mate, that's not on me.

But yeah, it's, it is a hard go between, but it is, like the tenancy laws have been changing. to make renting with pets a lot easier. So now it's not really, it's not really something landlords can say no to. Sure. And there's been mixed feedback on that. There are obviously landlords concerned about their property and the condition of it.

And then there are other people who are pet owners who want to be able to keep their pets. So it depends on who you ask, whether it's a good thing or bad thing. Sure.

Okay. Well, look, can you finish us off with Maybe, uh, have you got any funny stories? Have you got anything that's interesting that you've turned up at a property inspection and you've discovered that you just weren't expecting?

Yeah, I've seen some things. I'm sure you have. A number of, how you say, Adult paraphernalia. Sure. Might have been left out, which I'm not here to judge. No. Maybe let's pop it in a drawer before I come round. Might be a good idea. Yeah, just, uh, in a cupboard somewhere. I'm not checking too diligently in people's wardrobes.

So just, yeah, maybe just pop that away. I mean sometimes you encounter the odd smell of, you know, illicit substances Sure. Okay. Which need to, you know, perhaps be removed. Maybe not kept in a bedroom. So, yeah, you, you do, you do find these things. You do come across these things. Yeah.

Oh, goodness. Okay. Well, look, probably enough on that, but look, thanks so much for coming in Lachlan and providing, you know.

My pleasure. Such, um, interesting information on conducting property inspections. It's something that all, landlords and tenants would be interested to hear about and know a bit more about and remember that regular and thorough inspections are critical to safeguarding your, your investment and fostering a positive relationship with your tenants.

So for more tips and, property management solutions, remember to visit Sutherland's Property Management Group's website, which is www.spmg.com.au au. Thanks again for joining us today on the Property Investors Handbook podcast. Stay tuned for more episodes that's gonna help you manage your property investment effectively.

And Lachie thanks for being our special guest in here today. Thank you so much for having me. I'm sure I'll be back one. Absolutely. More than welcome. Cheers.