This guide will walk you through what a property inspection is, how they are typically conducted, and share insights on how property inspections are used!
A property inspection is a systematic and documented evaluation of a property's condition. An inspector examines aspects of a property to ensure safety, functionality, or compliance with codes, regulations, or contractual requirements. The inspection typically covers structural elements, such as the foundation and framing, as well as systems like plumbing, electrical, heating, and cooling.
The inspector also examines the condition of the roof, walls, windows, and doors, and may evaluate additional features like insulation, ventilation, and document the presence of hazardous materials like asbestos or lead paint.
Some of these reasons are regulator or compliance oriented in nature. It's common for a local municipality to city inspection for rental properties.
Real estate agents will often suggest a pre-purchase evaluation of a property. You may be familiar with the concept of a property inspections from a professional home inspection. This step provides potential buyers with an understanding of the property's condition, identifying any existing issues or potential risks.
The information from the inspection can be important in negotiations on price or sale terms. Findings and allowing buyers to make informed decisions and consider potential future costs related to property maintenance and repair.
Regular inspections allow landlords to ensure properties stay in top shape. This includes checking for any damages, wear and tear, to order needed repairs. By identifying these issues early, landlords can address them promptly, preventing minor problems from escalating into major, costly repairs.
Landlords are responsible for ensuring that their properties are safe and habitable. Regular inspections allow them to check the functionality of life safety features such as smoke detectors and ensure secure windows and doors, and the proper operation of heating and cooling systems.
Insurance companies often require property inspections. These inspections help in identifying risks or pre-existing damage which aids in risk assessment and setting insurance premiums. For property owners, these inspections are essential to ensure coverage is adequate and valid.
An insurance company may review the property inspection data after an event such as a storm or fire. Photographic evidence of the property in good condition is invaluable for approving a claim.
Inspections are often mandated by local governments or regulatory bodies. Reasons include new construction, renovations, or as a pre-tenancy condition for certain types of properties like commercial buildings.
The purpose of regulatory compliance inspections is to ensure properties meet specific safety and building standards. These inspections are part of maintaining safety and integrity, reducing the risk of accidents or structural failures.
Inspections focus on evaluating and documenting functionality rather than condition. A property inspection tends to be a shorter process than an assessment or survey.
Inspections may be scheduled or unscheduled. In both cases, a property inspection will start the inspection the same way: a new document or inspection file. Traditionally property inspectors work from a printed form (based on the standard they were inspecting to). They then add their notes to a spreadsheet or other system of record once in the office.
When you hear the word "inspection" you might also think about the word "clipboard." Property inspectors traditionally take notes on pen and paper that are then digitized and filed away. This makes sense for a landlord doing residential inspections on a few single family homes. However loan officers, insurance company employees, or others who routinely inspect many properties daily should rely on a software tool to stay organized .
Today, inspectors have various tools to collect data in the field, which is then automatically organized and stored We recommend a property inspection tool that's tied to your building data such as Revit files or floorplans.
Property inspection software tools like Layer App make it easy to organize inspections on the go. Once your form is setup, each inspection will include all relevant fields and questions.| Pen & Paper | Layer App | |
| Instantly stores, manages, and files notes, forms, and photos as you add information. | ❌ | ✅ |
| Notes about potential issues and condition of the property are automatically associated to the space in a floor plan or Revit model. | ❌ | ✅ |
| Easily share information with anyone as a PDF or shared link. | ❌ | ✅ |
Here are some common items that you should include at minimum:
Conduct any type of property inspection with Layer's flexible toolkit. It's easy to setup and get started. Setup and training are included at no cost!
For commercial properties, an rental property inspection checklist should also include:
Proactive landlords use the data they gather during property inspections to visualize their data and identify actionable insights. Managers of large portfolios may aggregate inspection data to optimize vendor choices for MRO materials or find out of the box solutions when work order numbers spike.
This commercial building inspection checklist will arm you with the key points commercial property inspectors look for.
Learn how regular site inspections can help commercial, residential, an ag loan officers avoid risk
Find out how the right app can help you bring order to site inspection documentation, notes, and photos