This month’s blog concerns the importance of an inventory in the rented sector. We’ll go into its precise definition, how it’s put together – and not least, the legal significance it can carry for landlords and tenants in the UK.
Basically, it serves as crucial, evidence-backed proof to prevent deposit disputes.
In Property Moves’ opinion, an inventory protects both parties. We always carry out this process; always, always. If you’re a go-it-alone landlord and considering skipping this vital step, or even doing it yourself:
Don’t.
Since mandatory deposit protection schemes arrived, this type of report is a must-have. It can help ensure that your tenants leave your property in the same condition, less reasonable wear and tear, as when they moved in.
First things first.
What Is An Inventory?
Simply explained, an inventory is an in-depth, detailed report on a rental property and its contents. The key thing here is that it’s independent. To double down, we outsource this to an inventory specialist, not directly employed by us.
The property could be furnished, non-furnished, or unfurnished, and in all cases the process is the same: the report lists the furniture, fixtures, and fittings in each room, along with a description of their condition.
Generally, an inventory report contains time-stamped photos, sometimes videos. Also, there may be a traffic light system to indicate the state of each item. You may be surprised by how detailed it is.
Your tenant will need to review the document carefully and sign it on or immediately after moving in day, along with one of our lettings team.
Inventory Clerks – They’re Not Like Us
OK, we’re joking!
What we mean is, it’s always best to trust the experts, but especially when it comes to the qualities you need to create a high-standard inventory. They have forensic attention to detail and exceptional skills for knowing what to look for and how to document it.
Immediately after occupation (or very soon afterwards), your tenant should expect a visit from an inventory clerk to check and record the condition of everything:
- Walls
- Floors
- Skirting boards
- Sinks
- Baths
- Kitchen fittings
And so on, right down to the smallest mark and scratch. They’ll go room to room, logging everything. They will often take meter readings as well.
Documentation with Detail
These are by no means standard, run-of-the-mill reports. Should they need to, they’ll have to be robust enough to stand up in court, which is no mean feat. As mentioned, they can be quite long, although the aim is quality rather than quantity. Think about the following:
- Extremely detailed, with full comments on the property’s condition
- Based on FACT rather than opinion – very important this point
- Includes a cleanliness schedule
- Incorporates photos
What Does an Inventory Clerk Look For?
Well, in a word: everything.
There’s a bit of near-scientific eye-spy going on here.:
- Damage to walls and floors, including holes, dents and stains
- Stains or marks on carpets and curtains
- Damage to the seals on windows and doors and checks for chips and marks
- Breakages or damage to cupboards; sticky hinges or warps in the wood
- Tap water pressure
- Cracks in sinks and tiles
- Appearance and quality of gas and electrical appliances
- General external appearance: are there missing slates or tiles
If your tenant disagrees with the report, they have the right to update it as they see fit. For example, the inventory may state there are two marks on the kitchen table when in fact there are three. They can also add their own photographs and will need to countersign the document.
The Importance of an Inventory
- The report provides clear, third-party evidence for tenancy deposit schemes that can help resolve disputes. How? Because it determines who (if appropriate) caused any damage and when.
- It can support the amount of deposit to deduct, if needed.
- Any property inspections can be upheld against the inventory “blueprint”. (However, Property Moves’ regular inspections don’t necessarily focus on checking up on the tenant; they’re more to ensure that everything is running smoothly.)
- It protects your investment and safeguards the value of your property.
- It shields your tenants’ rights, ensuring you can’t hold them responsible for breakages or missing items that were there when they moved in.
- An inventory offers evidence for insurance purposes, should you need to claim.
In a nutshell, this ultra-essential document sets clear expectations, reduces confusion, and, if you think about it, is about professionalism and really good record keeping. It means you’re one of the good guys.
The better quality the inventory, the better protected you and your tenants are – making it all about a great working relationship.
Your Tenant Is Moving Out
Ideally, the same checking process should take place on the day the tenant moves out, or immediately afterwards – with the second form evaluated alongside the original one. Your tenant will then review, agree (or dispute) the latter inventory and sign it.
As a landlord, you’ll need to accommodate standard wear and tear, such as carpets that are a bit worn or even small scuffs and scrapes. Don’t worry if you’re not sure. Ask one of the Property Moves team and we’ll be happy to help.
Normally, we’ll return their deposit within seven to 14 days after they’ve left.
If There’s Damage…
Your inventory report could be your strong suit here.
If there are breakages, bad scratches, dents other damage (again, ask us for advice), it will be possible and legally compliant for you to withhold some or even all of your tenant’s deposit. However, you’ll need to follow the rules:
Inform the tenant IN WRITING
If the damage is severe and the repair costs exceed the original deposit, your inventory report is a powerful tool to help you recover your money. In this case, you can invoice your former tenant, itemising the costs they are liable for.
Caveat: this may not be the final, done-and-dusted last step:
Your tenant may disagree. Contact us and we can advise. There’s something called the Alternative Dispute Resolution service, for example, incorporated into the deposit scheme.
What We Think
While nothing is 100% certain, secure or watertight, an inventory offers you so much more protection than not having one. Or, even trying to put one together yourself. Do not underestimate the importance of an inventory.
Your property may be a clean, shiny new pin, and quite rightly, you’re proud of it. It may not stay that way. You will need evidence.
In our opinion, although it shouldn’t, damage to a rented property could be one of the things that generally happen in life; it’s not great, but it is what it is.
So, an inventory could be another thing to tick off your list for your peace of mind.