Landlords and tenants benefit from properly undertaken entry and exit inspections of a rental property. Not doing these inspections may later prove to have costly consequences, and makes proving the cause of damage even more difficult.
It should also be noted that the ingoing inspection forms a part of the lease agreement and must be attached, (Section 5(7) of the Rental Housing Act (RHA). Further to the ingoing inspection report, a mandatory disclosure document completed by the landlord declaring any defects to the property must accompany the lease agreement as a part of the document pack. Trafalgar Property Management group highlights important considerations for landlords and tenants.
Importance of inspections
Tenant:
When entering into a rental contract, you need to be aware of the condition of the property you will be occupying. You also need a record of its condition when you vacate the property. An inspection can reveal defects you might not have seen upon initial viewing, such as plumbing and electrical issues, which enable you to make an informed decision and avoid unexpected expenses and possible legal complications.
Landlord:
The Rental Housing Act only allows deductions from the damages deposit if a SIGNED ingoing inspection has been performed and an outgoing inspection comparing and recording any new damages.
Number of inspections
Entry and exit inspection are critical and legislatively required in terms of the Rental Housing Act. Interim inspections, during occupancy, are not legislated but recommended for long-term contracts, particularly at the time of consideration of lease renewal. This allows for any maintenance required to be identified and negotiated prior to the extension of the lease and provides the landlord with an opportunity to establish whether the tenant is looking after the property.
Proof of condition
The landlord or agent and tenant should ideally perform a joint inspection which, in the case of Trafalgar, is performed on an electronic device (phone or tablet) through an automated system. This type of inspection guides the parties through all aspects of a property and includes detailed photographs recording condition.
Photography and videos are essential when proof of condition is required. Bear in mind that often one person's perspective of damage is different to another's. Disputes can be more easily avoided if all parties are transparent and proof provided.
Extent of visual proof
All aspects should be covered, moving from one area within a property to another.
Automated inspection systems provide for this to avoid any areas being omitted.
If the condition is recorded as good there is no need for a photograph of each item.
Anywhere that a repair or replacement is noted as needed or having been done, must be supported by a zoomed in photograph as proof.
General photographs of properties should be taken in areas such as the garden, pool and other external areas.
Inspection photographs must be dated (preferably automatically) to avoid any dispute about when photographs were taken.
Hand-held paper dates in supporting photographs are not really best practice.
Confirming proof of condition
Landlords and tenants should be present for the inspection unless represented by an agent.
All parties should sign the inspection at the time of it being done, agreeing to the condition.
The inspection documents and photographs should be provided to all parties. (For Trafalgar it is standard practice to provide the tenant with their ingoing inspection record again, two weeks prior to them vacating the property, when arranging the appointment for the outgoing inspection, giving the tenant the opportunity to compare the current condition to the initial inspection report and correct or repair anything damaged during their occupancy prior to the outgoing inspection). This speeds up the vacating and deposit refund process and ensures that the unit will be in a suitable condition for the new tenant taking occupation.
- Providing documents in print form isn’t always ideal as you are unable to zoom further into photographs.
- Colour prints are required but storage of these could be problematic. It is best to provide these via email.
Timing
The Rental Housing Act stipulates that a joint inspection should take place before a tenant takes occupation and within three days of the tenant moving out at the latest.
In practice a vacant property is a preferred property to be inspected because defects are not easily hidden and, therefore, both parties have a transparent reflection of the condition of the property.
Implications of not attending an inspection
Joint inspections are critical to ensure good relations between landlords and tenants and for financial reasons.
Landlord: The landlord cannot hold the tenant liable for any damage if he/she or the agent/representative fails to inspect the property with the tenant before the tenant occupies the property.
Tenant: The tenant can be held liable for damages to the property if he or she fails or refuses to carry out an inspection jointly with the landlord/agent or representative.
Minor problems
The landlord is not obliged to repair minor issues (eg. a cracked tile). This can be negotiated but the landlord has no responsibility to repair aesthetic damage.
Thoroughness of inspection
The entire property should be checked including basic plumbing, electrical facilities, ventilation, doors, windows, security, pool and garden equipment.
