The Importance of Inspections in an Investment Property
You have just closed on a property that you intend to use for investment purposes. You have always dreamed of owning a second home that you could rent out. You grew up, watching your father take care of his tenants and you waited the day that you could have your own. Owning a property and charging rent are not the only important parts of an investment property. As a landlord, you are required to provide your tenants with a safe and secure property. If anything goes wrong with the house, you are responsible for the repairs. This is why it is important to have the following things tested before moving any renters into your property.
Inspection for structure. This type of an inspection should have been required to even close on the home. However, things do get passed up, and it is possible that the structure did not get a thorough investigation. The structure tests the integrity and foundation of the home, ensuring that it is safe and secure for any tenants. It may test things like the wood that holds the walls and roof up, the door placement, and the garage features.
Pest inspection. Contrary to what some may believe, a pest inspection is not generally done when purchasing a home. It may be done in some cases, but it is best to have this inspected. An infestation of pests can quickly ruin the structure of the home. Also, the longer that a pest problem goes unnoticed, the worse the problem becomes, often costing more in funds and time to properly correct the problem.
Electrical and appliance inspection. The electrical is one of the most important parts of the home. Renters will not pay rent if their appliances do not work and if they do not have electricity. A electrical problem can be a fire risk, and a fire can cause extreme damage to the home and can be dangerous to the residents of the house.
Radon gas testing and other air testing. Most home and mortgage inspections do not include air or radon testing services. However, radon inside of a home is extremely dangerous and needs to get radon mitigation and abatement service to be removed. Radon testing above legal limits can produce many negative side effects. A family whose home has radon levels of 4pFCi L is exposed to approximately 35 times as much radiation as the Nuclear Regulatory Commission would allow if that family was standing next to the fence of a radioactive waste site.
If local radon testing services show a level higher than is allowed, radon mitigation services must begin immediately. A radon testing company will complete a radon mitigation and abatement service. The radon mitigation and abatement service will remove all traces of the radon gas from the air. About 1 in 14 U.S. homes is estimated to have radon levels at or above EPA action level, so it is important to test.
Property owners should never try to do a radon mitigation and abatement service on their own. The abatement process requires special skills and materials. If done incorrectly, it can lead to a worsening of the gases in the air. Passive systems of mitigation have been shown to be capable of reducing indoor radon levels by more than 50%. When radon ventilation fans are added radon levels can even be reduced further.
It can be a great investment to own a second property. Property owners can profit from renting out their second homes. However, renting a home out requires taking responsibility for the home and its condition. The property owner must provide the renters with a safe and secure home, or they can be liable. Before renting the home out, the property owner should have a variety of inspections completed, including structural, electrical and appliances, pest, and radon and other gas inspections. It can be dangerous to just assume that the mortgage company or that the seller of the home had all of these things inspected, prior to the sale.