Property Inspection Checklist When Buying a Rental House
Thinking of investing in a vacation property? You’re on the right track to stable income and diversification. But notice how we said stable — not passive. That’s because rental houses come with a ton of work to manage them and to decide which is the best rental to purchase.
Here at SaferVRs, we help prospective investors like yourself with courses that prepare you for potential problems in your rental business. With this preparation, you’ll prevent costly issues and protect your revenue.
So, let’s get you started on the right track. Keep reading for our expert property inspection checklist to refer to when buying a rental house.
13-Step Rental Property Inspection Checklist
A rental property inspection is more than just checking if the faucets or AC work.
Unfortunately, even small issues can turn into big safety risks and cost you down the line. Our advice? Employ certified home inspectors to help you minimize that risk. That’s the safest bet — but you should also conduct your own inspection.
Check out this inspection process to get started.
1. Smoke Alarms or Carbon Monoxide Detectors
Don’t see any carbon monoxide detectors? That’s a bad sign. This means you’ll need to install one before knowing whether the air quality is safe, which could be a red flag for a prospective property.
Smoke detectors should also be functional. You can look up the brand of smoke alarm and review its testing process to know if it works or not. Still, a faulty smoke alarm isn’t necessarily a deal breaker. It just means you’ll have to do your due diligence to install new ones once you take possession of the property.
2. Mold and Asbestos
Notice any dark spots on the wall or ceiling of your prospective property? It might not 100% be asbestos — but you’d rather be sure.
The best way to find out is to take a sample and send it to a lab for testing or to hire a contractor to do it for you. Unfortunately, only 7% of homeowners have tested their home for asbestos — which puts them at risk for health issues like lung cancer.
Mold, which comes from water damage, can also put you and your guests at risk of getting sick.
If, indeed, the property has mold or asbestos, consider negotiating with the owner selling the home. Perhaps they can reduce the asking price or commit to resolving the issue before you take ownership of the property.
3. Lead-based paint
If you’re looking at a new vacation property, chances are there isn’t any lead-based paint used within the home. That’s because the US government banned lead-based paint in the late 70s. However, plenty of properties on the market were built in the pre-70s, which puts them at risk of having harmful paint.
Of course, you can still handle a home with lead-based paint if you’re prepared. The most important thing is to remove any flakes or peeling lead-based paint and dispose of it properly. And when it comes to any renovations, we’d recommend you don’t DIY it — hire an expert who can conduct the work safely.
Or, save yourself the headache and look for newer properties to buy instead.
4. Safety Glass
You might have a property that never experiences a broken door or window — that’s what we’re hoping, too. But in the event of a break-in, accident, or even a tough storm or hurricane, broken windows can cause a lot of damage just in the way they break.
Safety glass (or tempered glass) breaks down into tiny pieces that won’t stab or cut you as severely as larger bits that would break with non-tempered glass.
Ask the property’s realtor if the property has safety glass throughout. If not, you might want to negotiate the price. A new set of windows for a home can cost over $10,000.
5. Water Heater
A water heater replacement can run you up to a couple of thousand dollars. To avoid that cost, ensure a property’s water heater is in good condition before you buy.
Look out for any corrosion around the pipes leading to the water heater. You can also ask the property owner or realtor about the heater’s age, fuel type, and energy efficiency to assess costs down the line.
6. Structural Issues
Notice any properties sold in As-Is condition? Maybe the price seems too good to be true. We hate to break it to you, but it probably is. If a homeowner is trying to offload a property for a cost significantly lower than the property value, it’s likely it has some serious and costly issues to repair.
Structural issues are one of them. Here are some signs to look out for:
- Sagging in the roof or ceiling
- Uneven floors
- Cracks in the exterior, i.e. brick
- Cracks along the walls
- Curving or bulging in the walls or pillars
7. Wall Coverings
Notice a ton of wallpaper or an uncomfortable number of paintings on a wall? We don’t want to assume — but there could be a possibility that the real estate agent is hiding something.
Our advice? Ask to see underneath any wall coverings and paintings and look for any dark spots (mold or asbestos), cracks, or discoloration and stains.
8. Infestations
Termites are most common in warmer climates across the USA. These are the states with the highest concentrations of termites:
- California
- Alabama
- Louisiana
- Texas
- Mississippi
- Georgia
- Florida
However, warmer places like Arizona and New Mexico are also at risk.
While there are plenty of different kinds of pest infestations, termites are worth highlighting the most because of the costly treatments they warrant. Plus, they can cause serious damage to the structural integrity of a property.
We’d even recommend talking to your neighbors because termites can spread from house to house.
Of course, you should also look out for serious infestations of cockroaches and bed bugs, as they’re also costly and tedious to get rid of. On top of that, they can damage the reputation of your rental property if a guest has to deal with them!
9. Roof and Shingles
A bad roof can cost you thousands of dollars down the line. For example, one company quotes almost $25,000 to replace a damaged roof in Nashville, Tennessee.
So, what should you look out for? Any of the following are red flags:
- Loose or split shingles
- Exposed or loose nails
- Popped nails
- Cracked or sinking soffits and fascia
- Curled up shingles
- Missing or damaged metal flashing (steel border used to direct water away from the roof)
- Inconsistent or missing caulking along the flashing
Ideally, you’d have a ladder or professional with you to safely inspect the roof.
You should also inspect your roof inside by checking out the attic. Look for any spots, cracks, or discoloration in the ceiling.
10. Drainage and Downspouts
Don’t forget to expand your roof inspection to the home’s drainage system. That starts with the roof’s gutters, which lead to the downspouts that drain water away from the property.
Here are some signs that you might have some drainage issues:
- Overflowing gutters
- Leaks in the downspouts
- Pooled water around the home
- Muddy pools of water around the property’s outdoor area
- Downspouts with no water flowing (could be clogged)
- Standing water or flooding in the basement
Additionally, you should ensure every entryway to the home has a drain to capture water. Otherwise, you could have water leaking into your home during an average rainy day.
11. Stairs and Handrails
If a guest slips and falls on your vacation property, you could be liable and face a civil suit. One way to minimize that risk is to ensure all your stairs are in good condition. Examine the stairs on your porch, leading upstairs and leading to the basement.
Additionally, feel the railings and check whether they’re stable. If there are no handrails at all, you might consider negotiating to have the owner add them in before you take possession of the property.
12. HVAC System
When you walk into a viewing, notice the temperature. Is it too hot or too cold? If the temperature feels off, there might be an issue with the HVAC system. Look at the thermostat and see if it works to adjust the temperature.
Then, look at the HVAC system itself. Is it in working order? Is there debris that could be damaging or blocking the system? You can also look around the vents in the property and place your hand above them to assess whether air comes out of them.
13. Faucets and Showers
Test out every faucet, including in bathrooms and kitchens on the property. It’s not enough to see that there’s water coming out — water pressure is equally as important, as poor pressure could indicate poor water supply and issues down the line.
Protect Your Vacation Rental Business with SaferVRs
Bottom line? The vacation rental business has no room for impulsive decisions. Every purchase you make, whether for booking software or an entire property, should be weighed with pros and cons to maximize your revenue and guest appeal.
Your inspection results will guide you in the vacation home buying process and help you maximize a solid ROI.
If you want to continue learning about safe vacation rental management, we’ve got you covered. With decades of experience in the industry, SaferVRs’ founder put together a number of helpful courses to help you manage your properties.