Inventories are a crucial aspect of property management, particularly for rented properties. An inventory is a detailed record of the property’s contents and the condition at the start of a tenancy. Here’s a few key considerations and helpful tips that the LeBern team have put together.
Purpose of an Inventory
- An inventory protects both landlords and tenants by providing a clear record of the property’s condition and contents at the start of the tenancy. This helps prevent disputes over damage or missing items when the tenancy ends. While not legally required, having an inventory is highly recommended and can be crucial in case of disputes over the return of the tenancy deposit.
When to Conduct an Inventory
- Check-In Inventory: The inventory should be completed just before or on the tenant’s move-in. It should be signed by both the landlord (or their agent) and the tenant.
- Check-Out Inventory: At the end of the tenancy, a check-out inventory is conducted to compare the condition of the property and its contents to the check-in inventory.
What Should be Included
- Condition of the Property: Document the condition of walls, floors, ceilings, doors, windows, and other fixtures. Note any existing damage or wear and tear.
- Contents: List all items in the property, such as furniture, appliances, curtains, carpets, and kitchenware. Include detailed descriptions of their condition.
- Photos and Videos: Use photographs and videos to visually record the property’s condition. These should be date-stamped and referenced in the written inventory.
Who Conducts the Inventory
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Landlord or Agent: The landlord or letting agent can prepare the inventory. However, it may be more impartial and accurate to use a professional inventory clerk. Lebern can organise this for you.
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Professional Inventory Clerk: Hiring a professional inventory clerk ensures a thorough and unbiased report, which can be critical if there are disputes.
Mid-Tenancy Inspections
- Landlords or agents should conduct mid-tenancy inspections to check the property’s condition. These inspections should be agreed upon in the tenancy agreement and carried out with proper notice to the tenant
Check-Out Process
- At the end of the tenancy, a check-out inspection compares the current condition to the check-in inventory. Any changes, damages, or missing items are noted. If there is damage beyond normal wear and tear or items are missing, the landlord may request deductions from the tenant’s deposit. The check-out inventory serves as evidence for these claims.
Dispute Resolution
- Deposit Protection Schemes: Tenancy deposits must be protected in a government-approved deposit protection scheme (DPS). If there’s a dispute over the deposit, the inventory will be a key piece of evidence in resolving the issue through the scheme’s dispute resolution service.
- ADR Process: If disputes arise, tenants and landlords can use the Alternative Dispute Resolution (ADR) process provided by the deposit protection scheme to settle the matter without going to court.
Best Practices
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Detailed and Accurate Reports: Ensure that the inventory is thorough, with detailed descriptions and high-quality images. Avoid vague terms like “good condition” without further explanation.
Timely Documentation: Complete the inventory process promptly at the beginning and end of the tenancy. Delays can weaken the credibility of the inventory.
Clear Communication: Maintain clear communication with the tenant about the inventory process, including what is expected at check-in and check-out.
