Acing Your Building Inspection

No one has to tell property managers that the economy is in rough shape. Cutbacks and layoffs have forced many to work with smaller staffs. Sometimes, it’s easy to to cut corners where possible, but when it comes to inspections, there are ways to save money that won’t compromise the quality of your services or the safety of your tenants and staff.

“There are certain things that are not expendable,” says Paul Grucza, Regional Vice President for RTI/Community Management Associates, Inc., in Hurst, Tex. “Everyone is trying to do more with less, but there are certain things, by default, that we [must] do.”

Even if you’re dealing with a smaller budget and less staff, it is possible to ace building inspections. Here are a few tips:

• Be sure you are scheduling all of your inspections on time. Some inspections, such as for elevators, may be once or twice a year; some communities inspect swimming pools annually—others do it bi-annually. Know your schedule so that you don’t get hit with a fine. Properties that are financed by HUD or that are classified as Section 8 housing will probably have different schedules from more conventionally financed properties.

• Post all of your certifications and inspections. “These should be prominently displayed in your office,” says John Lee, a Certified Property Manager with JPL Group in Dallas, Tex. “Without that, you can be fined immediately, and many states can now impose what are being called ‘administrative penalties.’”

• If you don’t already have one, begin a checklist of inspection items and add to it yearly. The best defense is offense. If your maintenance crew goes through the inspection items one by one and takes care of them before the inspection, you’ll cut down on a major number of problems. “You can mitigate so many problems during an inspection if you look at certain elementary problems beforehand,” says Grucza. “This would include things like looking at the fire suppression board to make sure the switches are all working, checking out the pump systems, checking that the trash compactor chutes are all free and clear of debris.”

• Accompany inspectors on their rounds. Not only will you learn a great deal, but you can also answer any questions that come up. “If the property manager is not walking through the property with the maintenance supervisor and the inspector, that’s a telltale sign that the manager shouldn’t be on that property,” says Lee.
Saving Money on Inspections
While you probably can’t save money on an inspection, per se, you can save money on the work leading up to them.

• Save money on the things you used to outsource. Many property managers are looking for creative ways to get more for their money. “We’ve seen people negotiating with landscaping contractors to get them to throw in freebies,” says Grucza. “For example, maybe they used to only trim trees and cut grass. Now they’re being told, ‘Hey, we want you to also inspect the irrigation system.’ Maybe an outside company used to do that, but now we’re asking the contractors we do have to do more.”

• Take advantage of training. Many inspection companies provide classes for free or at a low cost that covers the basics of an inspection. It’s a good time to not only learn more about the inspection, but to also have your questions about inspections answered.

• Check with insurance on what’s required. Many insurance companies mandate how often inspections need to be made and what documents they will accept from those inspections. “Most insurance companies will require a building condition report,” says Grucza. “In the [past], we would bring in an outside consultant to do that, but we’ve found that our policies are written in such a way that we can effect the same thing by using checklists and submitting those.”

The bottom line, Grucza says, is that your tenants want to know that they’re safe and well provided for. “You want to be able to say to them, ‘Don’t worry—the things that need to be done are being done.’”