How detailed does my property inventory need to be?

How detailed does my property inventory need to be?

By Nick Lyons, Managing Director, No Letting Go

I often say, ‘disputes are decided at the beginning of a tenancy not the end’. In other words, the outcome of a dispute is determined at the start of your tenancy by ensuring the correct paperwork is in place.

The key documents for handling or preventing any disputes over damages, missing items or cleanliness is the Inventory and Schedule of Condition, supported by the check-in process and at the end of the tenancy a professional independent check-out. The more detailed the inventory is at the start and ensuring that you take the time to check the tenant in, the less ambiguity at the end of the tenancy and therefore the more likely a settlement is made quickly.
When training our offices throughout the UK we focus on ‘condition, condition, condition’. The person carrying out this critical process should detail the property room by room ensuring the inventory not only covers a comprehensive contents list but also registers the quality of all contents, décor, fixtures and fittings, both internally and externally. This means that every item needs to be registered and its quality stated in a clear and concise way noting all marks, stains, scuffs, scrapes, discolouration etc.

At the end of the tenancy, the landlord or property manager needs to determine liability for damages or cleanliness and this is based on the condition subject to fair wear and tear. If it is not clear, a decision becomes tricky. The deposit schemes adjudication (ADR), the dispute service that determines liability over disputes between landlords and tenants, are very clear on this matter. The more detailed the report, the higher the chance of a more accurate decision. Many landlords and agents fall down here by not instructing a good inventory company to prepare high quality reports.

Other key requirements for the report are:

• The inventory clerk must detail all Fire & Furnishing Regulation Labels attached to upholstered furniture
• Embedded digital photographs
• Disclaimers and explanation notes to tenants
• Declaration page, signed
• Provide as much information as possible regarding brands and the quality. For example state the manufacturers of wallpaper, floor coverings and appliances

Finally, don’t think that inventory is only for a furnished property or a high value rent – most disputes are caused by cleanliness related issues, left rubbish and damage to fixtures and fittings related to standard unfurnished buy to let properties. Don’t get fooled into thinking you don’t need the protection of inventory management services – it will save you hundreds of pounds in reduced voids, time and will help keep your property in better overall condition.

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