The importance of rental inspections

Rental inspections are not only an important element to ensuring your property is well maintained and looked after, but a legal requirement in terms of the Rental Housing Act. Section 5(3) regulates that it is mandatory for both the landlord (or their agent) and the tenant to jointly inspect the property for any defects or damage.

The primary reason for these mandatory inspections is to fairly manage the tenant's security deposit. The deposit must be held in an interest-bearing account for the duration of the lease. When the lease ends, any deductions for damages must be clearly justified and supported by the inspection reports and repair invoices.

The landlord is legally required to maintain the property in a good and proper state, and failure could result in the landlord being in breach of its obligations. If the landlord fails to conduct the incoming inspection in the presence of the tenant, the landlord may not be able to claim any damages from the tenant upon their departure since there will be no record to compare against.

Two inspections must therefore be conducted as a minimum, namely an incoming and an outgoing inspection.

The incoming inspection must be done before the tenant moves into the property. Its purpose is to record the exact condition of the property at the start of the lease, noting any pre-existing defects. It must be attended by both parties, the landlord/agent, and the tenant, signed by both and a copy given to the tenant.

The outgoing inspection must be done by the latest on the last day of the lease. It must be attended by both parties. This inspection compares the property's condition to the incoming report to determine if any new damages (beyond fair wear and tear) were caused by the tenant.

All defects identified during both inspections must be recorded in writing and signed by both the landlord/agent and the tenant. Each party should receive a copy. Photographic and video evidence, timestamped, is highly recommended to support the written report.

Additionally, it is always recommended that periodic interim inspections are undertaken. These provide the opportunity to spot anything which needs attention to ensure legal compliance and maintain the integrity of the rental asset. These must be done with respect to the tenant's right to privacy and reasonable notice must be given to the tenant.

It is also vital that landlords are responsive to maintenance needs when alerted to these as the landlord is legally obliged to keep the property well maintained. Regular inspections can spot issues which may well become costly to repair if left unattended.

A well-managed and maintained property will ensure the asset continues to grow in value while delivering a reliable rental income stream.

At Seeff Southern Suburbs/Constantiaberg we manage hundreds of rental properties each year, and offer a full suite of rental services backed by technology and efficient rental administration. If you would like to know more about how we can enable you to leverage maximum returns from your rental investment, contact Seeff today.

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