Home > Blogs > Margaret Woda > Real Estate The Woda Way

Should Renters Get a Home Inspection?

By Margaret Woda

Real Estate Agent with Long & Foster Real Estate, Inc.

January 08, 2011 03:05 PM

Q&A - istockphoto.com Q. Should I get a home inspection before moving into a Crofton rental property? I'm concerned about safety issues and hidden defects.

A. Frankly, a home inspection for rentals isn't customary in this area... but it's probably a good idea. Here's why I say that...

The typical rental move-in checklist deals primarily with cosmetic issues: The carpet, walls, windows... But what about the things you can't see? These are the things a home inspection would disclose.

Wo Home inspection - istockphoto.com uldn't you like to know before moving into the property if some of the electrical outlets aren't grounded? What if there's an open electrical junction box in the attic? If the roof leaks or basement floods? Does the furnace have a cracked heat exchanger? Is there aluminum wiring and, if so, are there any safety precautions the tenant should take? Would you recognize a wood-destroying insect if you saw it? Was the deck built well enough to hold the 30 people expected to attend your son's graduation party?

A home inspection usually costs about $250-$300 in the Crofton area, but that could be a small investment in your family's safety.

If a home inspection indicates any compelling safety issues, you should ask the landlord to correct them before you move in. You can (and should) still make a record of cosmetic discrepancies, which you can identify on your own, but there's more to property condition than cosmetics.

If you'd like me to provide contact info for 2 or 3 local home inspection companies, let me know as soon as possible because it may be a few days before they can fit you into their schedule. Then, if they find anything you want to report to the landlord, you may need a few days to negotiate requested repairs.

____________________________________________

Maybe a home inspection SHOULD be customary for rentals... Perhaps a landlord should get one before listing his property for rent. That wouldn't be a bad risk-management strategy for landlords.

There's no simple answer to the question about whether a renter should get a home inspection. Or... perhaps there is.

Many thanks to the renter who asked this question and inspired me to consider this issue. I am going to start offering a home inspection to my rental clients and landlords.

Re-Blog

Featured

Comments(66)

Comment

Show All Comments

Sort:

Robert Dirienzo

HABITEC Home and Building Inspections, LLC - Franklin, TN

Home Inspections - Nashville TN

I agree that rentals should have an inspection, but I am biased as a home and commercial building inspector in Nashville, Tennessee. Nonetheless, the reasons for the inspections would also depend on the building in question; single family home, commercial building or apartment.

Take single family homes. The renter needs to know the home is safe and what needs repair before signing the rental agreement. To protect their liability the owner/renter needs to prove good faith effort to make sure the home is safe and reasonably operational prior to renting. And this includes environmental issues such as radon, mold and water quality. Can you imagine the lawsuit if an owner/renter allows a renter to move into a home that has elevated mold counts? Mold can and has made many people sick and has also been blamed for the deaths of people. Huge liability for the owner to make sure the home is clear of mold (and radon, asbestos, lead, etc). And, point of order, those cosmetic issues regarding the carpet and floors and drywall are usually excluded from a home inspection.

A commercial building should also be inspected for these same reasons; safety, liability, and good working order. But another good reason to have that building inspected is ADA Compliance. How would that leasee feel if they got slapped with a lawsuit from an employee or client because the building or leased space fails for handicapped accessibility? And who is going to pay to bring the building into compliance?

And apartments are a special case. Our experience at HABITEC is that most apartment owners do not want to know the truth about their building. If they did know the truth and were made to fix what was is wrong, they would probably rather sell the building. Same for college dormitories.

Thank you,

Richard Acree

HABITEC Home and Building Inspections, LLC

http://habitecinspections.com

Jan 09, 2011 02:40 PM

Kim Dean

www.GoSimplyTexas.com - McKinney, TX

Simply Texas Real Estate - Broker/Owner

Hi Margaret - I think at the very least it would be wise to suggest it to our landlord clients. It may in fact help the home lease faster if it were advertised as an inspected home. Congrats on a great feature!

Jan 09, 2011 02:59 PM

Jordon Wheeler

The Jordon Wheeler Group - Fairburn, GA

J W Group Real Estate Sales and Service

Margaret - I was just talking to a owner's agent about doing an inspection on a rental home my client is leasing. We finally agreed to allow my client to do a radon test. But I definitely believe that anyone considering leasing a property should consider requesting a home inspection. Best of success to you!

Jan 09, 2011 03:07 PM

Christine Donovan

Donovan Blatt Realty - Costa Mesa, CA

Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Margaret - I had never considered a home inspection for a rental, but I can see how it might make sense. It's something to ponder.

Jan 09, 2011 04:43 PM

Anonymous

George

Great posting,love the info

Jan 09, 2011 05:08 PM

#54

Margaret Woda

Long & Foster Real Estate, Inc. - Crofton, MD

Maryland Real Estate & Military Relocation

Tom brings up another important factor... check to make sure the landlord is not in foreclosure. As the mom and grandma of a family displaced by their landlord's foreclosure, I couldn't agree more. We have a form for listings that addresses the financial condition of th eproperty, and I had a landlord complete one along with their rental listing in December. VERY important in this day and age.

Martha, I agree that many landlords would probably reject any requests, but I'm thinking maybe we, as agents, should mention the idea to prospective tenants. And, if a landlord refuses to repair a cracked heat exchangor, of faulty electric outlets... do you encourage your rental client to accept those conditions? I don't.

Richard, I'm referring only to single family residences (including townhomes), not commercial buildings, since those are the only rentals I would be likely to handle.

Glad to see all this discussion. Back in the days when home inspectors first started showing their faces, this is just the kind of conversation agents had about inspections at time of sale. Maybe we'll start a movement!

Thanks to all of you for reading this and commenting.

Jan 09, 2011 10:17 PM

Jay Markanich

Jay Markanich Real Estate Inspections, LLC - Bristow, VA

Home Inspector - servicing all Northern Virginia

Margaret - I don't know how to develop a scaled-down version of a report as my association and state require that the inspection report cover and say certain things, even when they are not present. So the time involved would be the same as with a condo for example, or a house.

Jan 09, 2011 11:19 PM

Dr. Stacey-Ann Baugh

Century 21 New Millennium - Upper Marlboro, MD

A doctor who makes house calls.

Very interesting thought. I would guess that many of the clients I work with who are barely able to scrape together the security deposit and first month's rent would pass but it is definitely something worth discussing.

Jan 09, 2011 11:59 PM

Irene Kennedy Realtor® in Northwestern NJ

Weichert - Lopatcong, NJ

Margaret,

Clearly you have many of us rethinking this issue. I had only used it for lease-purchases, when all inspections were done prior to occupancy. That said, our local town require a Certificate of Occupancy but that is typically just fire safety. The official will cite any glaring safety issues but doesn't do what a home inspector will.

Jan 10, 2011 12:46 AM

Margaret Woda

Long & Foster Real Estate, Inc. - Crofton, MD

Maryland Real Estate & Military Relocation

Jay - Good input. 'Guess that's not an option.

Stacey - I'm thinking we should probably OFFER it, and have tenants sign off that we offered it and they declined it.

Irene - Some local communities in this area (College Park, for one) require rental permits. Most do not, however.

Jan 10, 2011 12:52 AM

Joe Kenny

Realty Executive Midwest - Darien, IL

Better Than Your Average Joe

Margaret ,wow, I'm like everybody else I never thought of it. Great post

Jan 10, 2011 02:04 AM

Michael Setunsky

Woodbridge, VA

Your Commercial Real Estate Link to Northern VA

Margaret, this is probably a good idea from the prospective tenants view point. Don't know if landlords would go along with it though.

Jan 10, 2011 02:10 AM

Jason M. Keith

Caliber Home Loans - Parker, CO

Equal Housing Lender

Margaret, This is fantastic information I read it off of a re-blog. As a lender working with potential buyers I'm definitely suggesting this for the people that need to rent for a while.

Jan 10, 2011 02:30 AM

Anonymous

Rob Smith Property Investigations

Hello Margaret. Having any residence inspected, regardless of ownership status, is of utmost importance for health and safety considerations.

I have developed a Safety Inspection protocol for my business, that concentrates on property security, fire safety issues, CO source and venting issues, electrical safety, and slips/trips/and fall considerations.

All too often, especially this time of year, we hear of home or apartment fires / CO poisoning incidents on the news. Ever consider how we would feel if these were our clients?

Great Blog...Keep up the good work!!

Jan 10, 2011 04:20 AM

#63

Dan Quinn

The Eric Steart Group of Long & Foster Real Estate - Silver Spring, MD

Dan Quinn

Sounds lilke a good idea Margaret. I sometimes think that renters should have the right to check the credit records of their landlords as well. I have seen rentals go into foreclosure and the landlord skip town leaving the renters in a mess of a situation.

Jan 10, 2011 05:31 AM

Jeanne Kozak

RE/MAX In Action - Martinsburg, WV

REALTOR and Broker/Owner in WV and VA

I have had rentals that now I wish someone would have done an inspection, sure would have saved a lot of late night calls. Might have to look into making it a part of listing contract.

Jan 10, 2011 03:50 PM

Margaret Woda

Long & Foster Real Estate, Inc. - Crofton, MD

Maryland Real Estate & Military Relocation

Thanks for the additional comments! Let me specifically address Michael's comment about the landlord's perspective.

My thought on this is that a home inspection is a good risk management strategy. The tenant is fully-informed about the flaws, the landlord will WANT to correct any safety issues, and everyone knows the property condition.... no hidden flaws. Not saying landlords will embrace the idea, but it definitely has merit for them, as well as tenants, in my opinion.

Jan 10, 2011 09:36 PM

Jason M. Keith

Caliber Home Loans - Parker, CO

Equal Housing Lender

Margarat, I just wanted to jump back here and let you know I'm reblogging this. Thank you again!

Jan 11, 2011 04:37 AM

John MacArthur

Century 21 Redwood - Washington, DC

Licensed Maryland/DC Realtor, Metro DC Homes

Margaret - I handle clients that are seeking rental property. Sometimes, I feel like one of the last men standing. The majority of my referrals come from other agents that do not want to expend the time or effort in helping rental clients.

They do present some challenges -

Often, they do not have a great deal of cash reserves beyond the required security deposit and first month's rent.
Many times, their credit is a bit impaired.
Several of them are working in positions that allow them limited time to view properties.
Lots of the property offered is owner managed by owners that do not know local law.

One would think that listing agents would be up to date on local laws and that they would counsel their clients. That view is challenged when you review properties listed for rent. The vast majority of them do not indicate a cooperative fee of 50%. The appearance of minimal compensation for bringing a tenant has left me to conclude that most rental listing agents, get a listing agreement signed, put a lock box on the door, a sign out front and enter it in the MLS. The shoddy and incorrect information in the MLS is yet another indication that minimal effort or knowledge has gone into the process.

My efforts have been to educate the rental public that they do need representation. Listings are not accurate and leases are being signed that do not conform to local laws. People are paying more for repairs than necessary, etc.

Sorry, the preamble to my comment was a bit long. Passion for representation creates a prologue. The State of Maryland requires that property that is rented remain in safe condition. It is the law. If something is discovered to be unsafe or unhealthy, there are remedies.

The cost of a home inspection is often out of reach for those renting a home. I have considered this and talked about with many clients. It is something that sounds like a good idea on paper, but in practice it may not be so beneficial.

There are issues and all of them would have to be addressed in the application. The application would then become a binding contract with contingencies. The scope of the inspection would have to be standardized. How long the prospective tenant had to accomplish the inspection would have to be in the application. The nuances of whether or not a security deposit could be collected and how it's return would have to be codified.

Then you have the hypothetical situations that must be addressed in consultation with the prospective tenant. If the home fails to pass inspection, the prospective tenant will have paid for the inspection, but in the way you present it, they would just move on. How many homes can the average prospect pay for an inspection? The timing involved is another issue for the landlord and tenant. If the law says 5 or 10 days to complete the inspection, the landlord is on hold for one third of a month, the tenant is out of the rental market for the same period of time.

Like I said, it sounds like a good idea but I fear it is not practical and if we start down that road, we will be increasing the paperwork needed exponentially. Our contract of sale is already a legend across the nation.

A better solution would be to make a law that homes for rent be State or County certified. Let the inspections for safety issues and health issues be done by the inspectors that are already working for the various jurisdictions. If they discover a problem, the home can not be rented until the situation is corrected.

Today, the best risk management practice is to become rental certified and make it your business to know the landlord and tenant codes in the places you practice. Rather than develop one more disclosure to put on file proving that "I warned them", educate yourself and sub-sequentially your clients.

And while I realize that co-op fees are set without collusion, it is time listing agents acknowledged that keeping more than 50%-60% of your fee is an indication you are more interested in lining your pocket for doing pretty much nothing.

Of course, this is all just my opinion, but as I mentioned...I work with renters every day.

Jan 31, 2011 12:26 AM

Paul Davidson

Great article. Thanks for the info, this is really a helpful post. BTW, if anyone needs to fill out a Rental Move-in Checklist form, I found a blank form in this link http://pdf.ac/6LAOk. This site PDFfiller also has several related forms that you might find useful.

Mar 19, 2015 01:07 AM