Understanding the difference between a property inspection and a property walkthrough in real estate investing is a vital first step to buying the right home and entering the world of real estate investing. As an investor, you should always look for an investment property that has good bones, fits into the neighborhood well, has great potential and, above all else, can produce steady income for you.
The proliferation of real estate websites has made whittling down the prospective list of investment properties easier than ever. But, in many cases, you’ll need to visit the home in person to see what shape it’s in. This includes what work might need to be done before your Austin property management company lists it for rent.
In this article, we’ll explore the difference between a property inspection and a property walkthrough in real estate investing. We’ll also provide real estate walkthrough tips to help you get off on the right foot.
What is a Property Inspection?
A property inspection is a full and detailed analysis of an entire investment property. It is conducted by a trained professional, most of whom are licensed in the field. In Texas, you can’t even use the word “inspection” unless it’s completed by an official inspector or licensed inspector.
The home inspector will go throughout the home and look at all of the major systems. While they will not look behind walls, they will inspect major systems such as HVAC, electrical and plumbing, roof, basement or crawl space, attic and appliances.
Inside, they will look at the condition of the floors, walls, ceilings and more. Outside, they will inspect the driveway or parking area, grading of the home and property, gutters and more.
The entire property inspection will take multiple hours to complete. Depending on the investment property’s condition, location and features, you might also get specialized inspections such as a pest inspection, fireplace inspection, well and/or septic system inspection, and radon testing.
Once the property inspections are complete, you will get a detailed report back from the company you hired outlining what they found. These inspections will be long and will often look ominous, but keep in mind that every detail the inspector points out is not catastrophic.
They simply point out potential areas of concern, highlight the items that might need to be addressed immediately, and identify ones to keep an eye on. Then, you as the investor can work with your Austin property management company to come up with a plan if you move forward and buy the property.
What is a Property Walkthrough?
A property walkthrough is similar to an inspection in many ways, but different as well.
At 1836 Property Management, we conduct property walkthroughs with all of our clients after the investment property has been purchased. We do this step before it gets listed on the market for rent. These walkthroughs are done before the make-ready process for a new renter. This ensures that everything is up to high-quality standards, so that it can be turned over to someone else to live in.
In addition, a member of our team will conduct property walkthroughs biannually after a resident is already in place. This process ensures that the condition of the property is, again, up to high standards. It also allows us to check for any needed maintenance that the resident may not have reported.
These property walkthroughs ensure that your investment property is well-protected. It also ensures that your residents are thoroughly satisfied with the home you’re providing them. This makes it more likely that they will renew their lease, which is only beneficial to you.
Unlike inspections, walkthroughs do not entail a full, in-depth assessment of every area of your home. They typically take only about 30 to 90 minutes to complete.
While we will provide you with a report about what we found during the walkthrough, they are not extremely detailed punchlists like property inspections which are provided to you during the purchase process.
Home Inspection vs Walkthrough: What’s the Difference?
Knowing the difference between a property inspection and a property walkthrough in real estate investing is crucial.
A home inspection offers a thorough analysis and detailed report by a certified professional inspector. It is done during the home-buying process. A property walkthrough, meanwhile, is more a summary look at the home to check for any obvious upgrades, fixes or maintenance needs. Again, it’s important to keep in mind that during either task the professional will not look behind walls. These are visual inspections for the most part, and they will not test the normal use of the systems in the homes.
At 1836 Property Management, we conduct property walkthroughs for all of our clients during the make-ready process, and again on a regular basis while your investment property is rented. This ensures that everything is always in good working condition. Also, we address any minor issues before they become major problems.
Our professionals have years of experience of property management in Austin, Texas and its surrounding areas. We know the ins and outs of real estate investing. By being proactive with regular property walkthroughs, we help protect our clients’ investment properties.
1836 Property Management is located at 1704 ½ South Congress Avenue, Suite E in Austin, TX. You can reach us at (512) 994-4323.
To find out more about how we can help you be successful, please contact us today.
