Looking for how to start a property inspection business? This is a step-by-step guide to help.
The real estate market is continuously booming with more people buying properties every day. In the same manner, requests for property inspection services are on the increase. Before purchasing a certain property, a buyer desires to know the condition and possibly prepare for any work that needs to be done there. The inspection and possible detection of any anomalies are the important responsibilities of property inspectors.
Sometimes also, a property owner or potential buyer may have questions about specific aspects or particular defects in a building. We can only accurately answer such questions when an inspection is carried out on the property.
What is Property Inspection?
Before you go further in knowing how to start a property inspection business, you should have a good understanding of what property inspection is, and what a property inspection expert does.
Property inspection entails carrying out pre-purchase inspections to know the general condition of a property, whether residential, commercial, or industrial. After inspection, property inspection experts provide a report which spells out the expertise needed to solve any identified problem.
Is It Profitable to Open a Property Inspection Business?
While the real estate industry thrives, it is indirectly giving a booster shot to the property inspection business. This makes a career in property inspection lucrative. A part-time property inspector earns as much as $47,600 annually, while a full-time property inspector earns around $97,000. A multi-inspector business may gross over a million dollars per year. This means that the property inspection business is profitable.
However, you may prefer venturing into other lucrative business opportunities if you consider the training required of a property inspection expert difficult.
Does a Property Inspection Business Need Office Space?
The choice is strictly yours. If you work from home as a property inspector, make sure you have a good online presence and figure out how best to get your clients. The same thing goes for those who may rent an office space for their property inspection business. Wherever operate from, ensure you put modalities in place to help your potential clients to locate you.
What are the Legal Requirements for Property Inspection Business?
Starting and running a home inspection business requires strict adherence to some legal requirements.
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Registration of a Property Inspection Business
In the US, you may decide to register your property inspection company as a Sole Proprietorship or a limited liability company (LLC). We recommend you register as an LLC, which gives your business a human face. So in times of trouble, it is your company as an artificial entity that gets sued and sanctioned. Even though it is you who will bear the brunt, but at least your head doesn’t go directly.
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Tax Registration for Property Inspection Business
Commitment to tax payment is the duty of every patriotic and responsible citizen. In the US, it is mandatory to get the Employer Identification Number, which gives your business identity and makes it taxable. Get started by getting the EIN online registration done in a few simple steps.
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Licensing for a Property Inspection Business
Before starting your property inspection proper, you will need to get the required licenses to practice. Vital information about property inspection licensing in different US states is handy on the website of the American Society of Home Inspectors (ASHI). There is also information on regulations guiding property inspectors according to each state. The American Home Inspection Training webpage also proves to be another valuable information resource about property inspection licensing. These sites will also show you states that do not require licensing.
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Insurance for a Property Inspection Business
There have been cases of home inspectors being sued by homeowners many years after moving into the property. This often happens when a property owner comes across a problem hitherto not noticed by the property inspector. The Errors and Omissions (E&O) Insurance covers your property inspection company from such incidents.
How to Start a Property Inspection Business Proper
#1: Academic Qualifications of a Property Inspector
Education is a determinant of the success potentials of every property inspector. The first most important step to succeed as a home inspector is getting good training. Requisite training on property inspection puts you on the right pedestal and guarantees seamless takeoff and growth of your business.
Every location has its unique property inspection training package, so find out from the government agency in charge of properties or the real estate sector in your location.
However, formal education is a common prerequisite, while passing the National Home Inspector Examination is an advantage for those in the US. You can access the complete list of property inspection training requirements in US states.
#2: Get Practical Property Inspection Experience
Experience, they say, is the best teacher, right? Before you start your own business as an inspector, try working with an experienced property inspector to get firsthand experience on the workings of the property inspection world. Such an experience will give you an edge, and help you start off on the right footing.
#3: Create a Property Inspection Business Plan
Drafting a good business plan will help you set realistic business goals, and how to achieve the goals. With the help of a business plan, you will underline your company’s strengths and weaknesses.
#4: Equip your Property Inspection Toolbox
Tools are king! The better equipped your toolkit, the better your inspection routines. Before you set out in your property inspection business, here are important tools that every property inspector must have:
- Property inspection software
- High-powered Flashlight
- Marking tape
- Measuring device
- Collapsible Ladder
- Digital Camera
- Infrared Camera
- Electric Circuit Testers
- Water Pressure Gauge
- Microwave Tester
- Gas Leak Detector
- Water Hardness Test Strips
- Respiratory mask
- Safety Glasses
- Hand Gloves
- Safety boots
- Safety Coveralls
- Cleaning Towels/wipes
- Writing pen and paper
#5: Branding for Property Inspection Business
Branding creates your trademark and helps you to stand out. This is necessary for a field booming with entrants. You may need to brand your tools, reporting papers, and more.
#6: Funding for Property Inspection Business
You may need about $25,000 to start a property inspection business. You can lessen this burden by sourcing funds from business funding sources. If you draft a detailed property inspection business proposal, banks or credit institutions, equity investors, or crowdfunding platforms may give you seed funding.
#7: Prepare your Property Inspection marketing strategy
Businesses thrive when you put an excellent marketing strategy in place. To save costs, use social media to promote your business. Most social media platforms are free and have many active users. Take advantage of this and post consistently and professionally to gain relevance. When business gets better, you may try Google Ads or social media adverts.
Consider creating a dedicated website for your property inspection business. A well-tailored website helps enhance your professionalism and gain the trust of both existing and potential clients.
Conclusion
Congratulations, you have all it takes to start and grow a property inspection business. While at it, be meticulous and exhibit every level of professionalism. This will get your clients recommending your services to others who may need your home inspection services.
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