Property inspections - Tips from initio on why they are a vital part of property management

If you own an investment property, you’ll know that property management is an adventure, sometimes challenging, but also rewarding if you know the tricks of the trade.

We spoke to the team at initio about the value of property inspections and why they are essential for keeping your investment in tip-top shape.  It turns out inspections are more than just a peek into how the tenants are settling in. They are your first line of defence against the wear and tear that can quietly chip away at your property's value.  

To DIY or not to DIY?

Every landlord faces the big question: should you dive into the world of do-it-yourself property management, or is it wiser to hand over the reins to a professional property manager?

Managing your own rental comes with its perks, especially in terms of cost savings. However, it can be time-consuming juggling tenant requests, sorting maintenance issues, and other tasks. You’ll need to ensure you have factored in the time to manage the work involved. 

The magic number for inspections

So, how often should you conduct property inspections? The magic number for insurance purposes is every three months and additionally, between tenancies. Whether you're doing the inspections yourself or delegating to a trusted property manager, these inspections are your chance to ensure everything is ship-shape, both inside and out.  They also allow you to keep detailed records, which is key.  

Understanding multiple incident claims

Grouping all minor damages throughout a tenancy into a single claim with one excess charge, while appealing, would liken house insurance to a property maintenance service, spiking premiums and claim volumes, rendering insurance unaffordable for many. This would also be considered a fraudulent claim, as it involves making incorrect statements about how and when the damage occurred. Always be careful to provide honest and true statements in support of any claim. The consequences of making a fraudulent claim would far outweigh any short-term benefits. 

A "multiple incident" claim often emerges when tenants vacate, leaving unreported damages such as wall holes, stained carpets, or damaged doors. Submitting a single claim for all these damages might seem convenient, but if these damages stem from separate incidents, an excess applies to each, reducing the payout or possibly voiding the claim if excesses surpass repair costs.

Insurer, initio would need to know when each item of damage occurred, and you will be expected to lodge a claim for each event. This underscores the importance of regular inspections to identify and address damages promptly, maintaining the property's value and ensuring fair insurance claims.  

The case for in-person inspections

Insurance provider, initio, are big on the benefits of having boots on the ground for inspections. This hands-on approach allows for real-time condition verification and keeps you in the loop with detailed reports. When you are there in person, you can spot potential issues before they escalate. 

Looking to the future, they're excited about the possibilities of new technologies to streamline property inspections. But for now, the human touch remains irreplaceable. Their guidance is flexible and designed to fit your unique circumstances. Property management is not one-size-fits-all, and the best approach is the one that suits you and your property best. 

Navigating the world of property management can be tricky, but with regular inspections and a keen eye, you can tackle any challenges that come your way. And when it comes to protecting your investment, initio is here to help every step of the way. 

For more detailed information on how initio can help safeguard your rental investments and to join the growing community of satisfied landlords, please visit initio’s website to get a landlord insurance quote in just seconds.

This post is sponsored by initio, a leading insurance provider dedicated to offering innovative and reliable insurance solutions for landlords across New Zealand. 

For more information:
How often do I need to do property inspections?

Property management - the basics

Can I complete property inspections remotely?

Can more than one excess apply to a claim?