A Landlord Inventory: Protect Your Property and Avoid Disputes

9 Oct, 2024

An inventory is a comprehensive list of every item in the property, from fixtures to furniture, walls to doors and windows. The condition schedule matches this and offers a precise record of the state of the property at the beginning of the tenancy, including existing wear and tear. These records together not only guard you as a landlord but also provide tenants with peace of mind. 

Why Are Inventories and Schedules of Conditions Important? 

Your property is one of your most precious assets as a landlord; therefore, keeping its condition is essential for keeping its value. Arguments about damages, cleanliness, or missing objects can cause a lot of stress, especially if there is no clear record of the property's state before and after a letting. Having a thorough inventory and schedule of condition in place gives you proof to back up any allegations you might have against a tenant's deposit for damages over average wear and tear or for missing items. Deposit protection policies force landlords to show proof to deduct cleaning or maintenance expenses. Proving any differences or damages done during the tenancy becomes much more difficult without a comprehensive inventory and condition report. 

What Should Be Included in an Inventory? 

The inventory should cover every feature of the property. All furniture, kitchen appliances, and other items are essential for furnished rentals. You should record flooring, fixtures, fittings, and any main appliances, such as ovens or washing machines, even in unfurnished properties. Does the kitchen counter already have a little chip? In high-traffic areas, does the carpet show minor wear? Written descriptions and well-defined, dated photos help to capture these elements. Recall that this is your chance to document the state of the property precisely, so, never cut back on the specifics. Photograph every room, noting any scuff marks, wear, or damage already present. Likewise, record the start and end of tenancy meter readings for gas, electricity, and water. 

When to Create and Update These Documents 

Ideally, when the tenant gets the keys at the check-in meeting, you should create the inventory before your tenants arrive. Together, you and the tenant should tour the property, looking over the inventory and condition report, to make sure both sides agree on what is recorded. Having the tenant sign off on these records guarantees no later conflict regarding the property's condition at the beginning of the tenancy. A check-out inventory ought to be conducted at the end of the tenancy. Here you contrast the property's present condition with that of the commencement of the lease. Although normal wear and tear, such as fading paint or small carpet wear, can be expected, any notable damage, including holes in walls or damaged appliances, should be reported for possible renter deduction from the deposit. Many opt to share a report online and ask that any discrepancies are reported by a certain date,  usually a few days after move-in day.

Legal Obligations and Best Practice

Legally, as a landlord, you are obliged to safeguard your tenants' deposits using one of the recognised deposit protection systems. The inventory will help you prove if you should be deducted from a tenant's deposit for damage, repairs, or cleaning. Best practices call for updating your inventory and condition report each time a tenant moves in or out. Taking the time to examine and record the property carefully will save you a lot of possible trouble.

How to Handle Disputes?

Often over the deposit recovery, conflicts between landlords and tenants centre on claims for repairs or cleaning. If a tenant objects to the deductions, you can show the state of the property at the beginning of the lease by referencing the original records. Furthermore, a fair and open system helps to foster positive interactions among renters. Knowing exactly what is expected of them will help them to be more likely to treat the property well. 

Should You Hire a Professional? 

Although many landlords decide to handle the inventory themselves, others would rather use a qualified inventory clerk. These experts can help to prevent conflicts by training to impartially and thoroughly document properties. A third-party-created inventory is usually considered more reliable in a conflict since neither side has any vested interest. Whether you decide to do it yourself or pay someone, the most crucial thing is that the inventory and schedule of conditions are precise, comprehensive, and backed by unambiguous data. 

Stay Prepared!

A thorough inventory and schedule of conditions can help you safeguard your property, tenants, and yourself from upcoming conflicts. Recording the property's condition before and after a tenancy helps both sides be clear about expectations and obligations. Although compiling these papers could take some time, the legal protection and peace of mind they provide are well worth the work. Having these documents in place helps everyone engaged to have a more transparent and seamless tenancy. 

At Robert Luff and Co we can arrange an inventory report for you as well as mid-term inspections during the course of the tenancy.