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Turn the light off as you leave…and make sure the property is clean

When someone moves into a flat or house, the likelihood (but not guaranteed) is that the carpets,  floors and overall property are pristine – cleaned to within an inch of it’s life, or as the correct term would be ‘cleaned to a professional standard’.

The question – who is responsible for the home looking like this for the next tenant?

Cleaning disputes still top the list of disputes between landlord and tenant. According to one of the government deposits schemes 50% of deposit disputes related to cleaning  in 2022 in the UK and 71% in Scotland.

All available evidence suggests that such disputes can be avoided if the correct evidence is provided at the start and end of the tenancy.

But lets examine how to avoid the cleaning issue.

It is the outgoing tenant who must leave the home in the standard they found it. The law allows for a reasonable amount of wear and tear of carpets when the tenant does leave, however betterment cannot apply.

We also encourage the landlord to have written evidence of what condition the property was in when the tenant moved in, supported by photographic proof.

Finally, both the tenant and landlord should conduct full inventories at the start of the tenancies and make sure they align.

Recent changes

Laws have been changed to make sure landlords can NOT make a standard charge against tenants for cleaning services or fees. This is reflected in the Tenant Fee Ban which came into force in 2019.

However, that doesn’t mean, as a landlord, you can’t use the deposit to pay for cleaning if the tenant has left the property in a condition that doesn’t meet the criteria of ‘same as you found it.’

As the tenant, it is and always has been their responsibility to leave the property in either the condition they found it or the condition specified in the inventory with an allowance made for fair wear and tear. Cleaning issues, however, are not considered fair wear and tear.

The difference can seem miniscule to some but it can end up being the sort of thing that rumbles on.

If the inventory states the property was cleaned to a professional standard on check in, then it requires the property to be ‘professionally cleaned to the same standard’ on the tenant’s departure, which often means hiring a company to perform the task.

Many tenants believe it possible to clean to a professional standard themselves but unfortunately any experienced inventory clerk will tell you they will gladly take a pound for every time they have heard ‘I’ve cleaned it better than when I moved in’ which is rarely the case

A tenant is able to clean the property themselves, as long as it meets the same professional standard at check in.  Often tenants try to do this but miss areas that professional cleaners will clean as a matter of course which can lead to deposit deductions.

Our recommendation to the tenant is to have the cleaning done as the last thing before vacating the property. And then to make sure they have photographic evidence of the condition of the cleaning as they leave.

The landlord does not have the right to tell the tenant what company to use when it comes to cleaning the property. But having it done professionally, while potentially expensive, should ensure that the tenant receives their full deposit back.

As an agent or landlord, you should want to protect your investments and establish smooth transitions from one tenant to the next. We are dedicated to promoting the highest possible standards of accuracy and reliability in the inventory process and have been endorsing high levels of professionalism in the inventory business since 1996.

It is our mission to ensure proper information and training is provided and our bank of highly skilled members will provide the best possible service. For more information, please contact us or search for your local AIIC member clerk now.

You can also download a copy of our Code of Practice and Guidelines for Professional Practice guide here.


Revealed – why professional inventory management training is so important

Inventories allow landlords and letting agents to keep on top of their property portfolios and limit potential loss of income from tenant disputes.

The level of professionalism, accuracy, and expertise of the inventory will contribute to the outcome of the tenancy.

Like with all industries, the right skills, knowledge, and abilities must be acquired to get the best result, and training provides exactly this. 

Therefore, landlords and letting agents who recognise the necessity of inventory management training will be able to manage their properties effectively.

Trained professionals take less time

Inventory management training courses are not only aimed at those aspiring to become inventory clerks. Instead, new, associate members, interested parties and experienced clerks who wish to gain more confidence in their inventory reporting skills and refresh their knowledge are also welcome to undergo professional training.

Landlords and letting agents who choose to carry out their own inventories can receive the appropriate training. This will equip them with skills from knowledgeable sources about how to conduct these professionally and efficiently.

By delegating this task to accredited inventory clerks more time can be saved, as this will allow landlords and letting agents to focus on other important areas of their job.

Furthermore, professional inventories provide letting agents and landlords with all details about their properties contained in one easy to access place. This helps to save time as it makes tracking the status of the property simple and straightforward.

Less room for mistakes

Mistakes and inconsistencies with inventory reports can cost a landlord thousands of pounds in the long term. However, relying on someone who has been professionally trained to do them will reduce the risk of this happening. 

Property inventory management training presents an opportunity to accumulate accurate knowledge about how to properly compile and analyse an inventory.

During training sessions, all the relevant information is covered including how to conduct reports, what to include, safety procedures, compliance issues, how to read meters, check outs and apportioning liability for damages and more. 

Professional inventory management training is conducted in a way that is standardised therefore it limits the chances of vital information being missed. The more standardised this training is the less room there is for mistakes.

Training will improve the letting industry

Professional inventory management training can drastically improve the overall standard of tenancies and reduce the amount of disputes proceeding to arbitration.

Often, gaps in knowledge are what lead to mistakes. Therefore, if this gap was filled through the appropriate training more tenancies could be improved.

Inventories, that are done by a trained independent clerk make tenancies easier to manage and monitor. While certifications that are gained once the training is complete, allow people to easily recognise who is qualified to manage the inventory.

Inventories that are carried out by independent people who have the relevant qualifications will be done to the highest standard and prevent losses from being incurred. They will also help to simplify the lettings process for tenants, letting agents, and landlords.

As an agent or landlord, you want to protect your investments and establish smooth transitions from one tenant to the next. Here at The AIIC, we are dedicated to promoting the highest possible standards of accuracy and reliability in the inventory process and have been endorsing high levels of professionalism in the inventory business since 1996.

It is our mission to ensure proper information and training is provided and our bank of highly skilled members will provide the best possible service. For more information, please contact us or search for your local AIIC member clerk now.

You can also download a copy of our Code of Practice and Guidelines for Professional Practice guide here.


Chancellor’s Autumn Statement – what did it mean for lettings?

In his first major fiscal address as Chancellor, and Rishi Sunak’s first Autumn Statement as Prime Minister, the former Health and Foreign Secretary Jeremy Hunt laid out the government’s tax and spending plans.

And, as predicted, it included some large spending cuts and tax rises as the Chancellor sought to fill a £55 billion fiscal black hole.

He said he was delivering a plan designed to tackle the cost-of-living crisis and rebuild the UK economy, adding that he would be prioritising stability, growth and protecting public services.

While his speech was light on specific housing policy or vision, he did announce a number of measures that will have a direct impact on the lettings sector.

Here, we lay out what they were.

CGT tax-free allowance halved next year

Hunt announced that he would more than halve the tax-free allowance for capital gains in the next tax year (2023-24) from £12,300 to £6,000. It will then be halved again to £3,000 in 2024-25. The Chancellor explained this was in order to make the tax system fairer and restore the public finances.

Those landlords looking to sell their home will be most affected by this change, as capital gains tax is charged at a much higher rate for residential property sales.

As a result, more landlords could look to exit the sector sooner to make sure they aren’t hit by the change. That would, of course, have a knock-on effect on rental supply, which is already low.

“These swingeing cuts to Capital Gains Tax allowances will dissuade investment for years to come,” was the verdict of Ben Beadle, CEO of landlord trade body NRLA, adding that it will deter investment in new rental homes and increase the cost of renting.

Higher earners to face more tax

The Chancellor also revealed in his speech that higher earners will start paying the top rate of tax (45%) when they earn £125,140. Previously, they wouldn’t start paying this rate until they started earning £150,000.

This could see more landlords being dragged into the highest paying tax bracket, which will then have an impact on the profits they can make because of the changes to mortgage interest tax relief (phased in from April 2017).

There were other tax changes, too, with Hunt announcing that Inheritance Tax thresholds will be frozen for the next two years, which will mean hundreds of thousands of home owners remain subject to paying this tax.

Time-limited stamp duty cut

In a measure that hadn’t been trailed beforehand, unlike many of the other things he announced, the Chancellor said the recent cuts to stamp duty would be time-limited, coming to an end on March 31 2025.

This means, for the next few years, there is effectively another stamp duty holiday – which could encourage more buyers, including landlords, to take advantage of the savings.

In his now infamous mini-Budget, Kwarteng increased the nil rate threshold for stamp duty from £125,000 to £250,000. He also upped the threshold at which first-time buyers pay stamp duty on their first home to £425,000 from £300,000 on purchases worth up to £625,000.

The Treasury confirmed the move in a tweet shortly after Hunt’s announcement, saying the reductions would cease by the end of March 2025. “This is to help the jobs & firms that rely on the housing market through the current challenges, while strengthening the public finances,” it added.

The above points were the main areas of consequence for landlords, but Hunt’s wide-ranging speech included a number of other measures – ranging from electric cars to the energy price guarantee, which are explained in much greater detail here

As an agent or landlord, you want to protect your investments and establish smooth transitions from one tenant to the next. Here at AIIC, we are dedicated to promoting the highest possible standards of accuracy and reliability in the inventory process and have been endorsing high levels of professionalism in the inventory business since 1996.

It is our mission to ensure proper information and training is provided and our bank of highly skilled members will provide the best possible service. For more information, please contact us or search for your local AIIC member clerk now.

You can also download a copy of our Code of Practice and Guidelines for Professional Practice guide here.


What role does tech play with property inventories? 

Inventories are used to help prevent disputes at the end of a tenancy. These vital documents allow accurate comparisons of the condition of the property at the start and end of the tenancy to be made.

When it comes to property inventories, technology plays an increasingly large role. Reliable technology can be utilised to store written, photographic, and video evidence digitally, and also help to make the process faster and more effective.

Professional inventory clerks are trained to use different devices and software to carry out these checks efficiently and accurately. 

Make inventories more efficient 

Technology helps to make inventories more efficient because of the ease-of-use different software and devices can provide.

As the market continues to develop, we can expect the inventory process to become ever more digitised. For example, conducting reports through smart devices and inventory management software is becoming more common. 

Easy access to these important documents online helps to cut down time. The possibility of losing these in the mail is also ruled out, which then prevents time-wasting delays.

At present, the level of demand continues to outweigh the number of rental properties available in the PRS. For this reason, along with the aims of many tenants to move in ahead of the Christmas rush, the market remains very busy.

During this busy period, landlords and letting agents will have much to focus on, but technology can assist by making sure that efficiency and accuracy is maintained when it comes to inventories.

Inventories include evidence about fixtures, furniture, fittings, and decorations. The condition of these various elements is not only noted in detail, but high-quality videos and images can improve their usefulness further still.

Overall, the process of recording these intricate details can be time-consuming. Nonetheless, inventory software helps by making details about the property easy to track and display. 

Most inventories are also now signed online by all parties to ensure the process is smoother and easier to track.

Make inventories more accurate and precise

An inventory that has not been conducted with precision could cost a landlord thousands of pounds in the long term. 

If it fails to demonstrate the condition, cleanliness and contents of a property, it will be extremely difficult to make a successful claim. Whether taking images or date-stamping information, it must be a true reflection of the condition at the start and end of a tenancy.

The more accurate the inventory, the easier it will be to demonstrate whether the tenant is liable for any expenses. 

Technology, when used properly, can support more accurate and robust inventories, enabling landlords to keep comprehensive records of every tenancy.

For this reason, it is vital that the individuals carrying out the inventories have a thorough understanding of how to use the technology at their disposal to improve the inventory process.

At the AIIC, all our members are trained to provide the best possible service. Our independent inventory clerks are equipped to use devices to capture clear videos and images. They are also trained to use professional software to correctly log and store the information. 

As an agent or landlord, you want to protect your investments and establish smooth transitions from one tenant to the next. We are dedicated to promoting the highest possible standards of accuracy and reliability in the inventory process and have been endorsing high levels of professionalism in the inventory business since 1996.

It is our mission to ensure proper information and training is provided and our bank of highly skilled members will provide the best possible service. For more information, please contact us or search for your local AIIC member clerk now.

You can also download a copy of our Code of Practice and Guidelines for Professional Practice guide here.


Everything you need to know about smoke and carbon monoxide alarms

There has been an update regarding the carbon monoxide and smoke alarm guidance and the Association of Independent Inventory Clerks (AIIC) is here to provide all the information you need to remain compliant.

The current regulation states that landlords must have a single smoke alarm fitted per storey and a carbon monoxide alarm where there is a solid fuel appliance, such as an open fire.

The new regulations are an updated version of the existing Smoke and Carbon Monoxide Alarm (England) Regulations 2015 which has now been updated by the Department for Levelling Up, Housing and Communities, and the new changes came into effect on 1 October 2022.

Which revisions do you need to be aware of?

From the due date, landlords will find themselves with increased responsibilities around the provision of smoke and carbon monoxide alarms within their properties.

A remedial notice will be introduced alongside the update, with fines of up to £5,000 for non-compliance.

Since October, landlords have the duty of equipping any room used as living accommodation containing a fixed combustion appliance, i.e., boilers with a carbon monoxide alarm. Gas cookers are exempted from this although it is also best practise to install these even if they aren’t legislated.

Meanwhile, once a tenant notifies their landlord that a smoke or carbon monoxide alarm is faulty, any non-operational smoke or carbon monoxide alarms must be repaired or replaced ‘as soon as practically possible’. This is one of the most significant changes to come about, whereas previously it was only necessary to ensure they worked at the start of the tenancy.

What type of smoke and carbon monoxide alarms are required?

There aren’t any specific regulations that state which type of alarms must be installed, such as hard wired or battery powered. If you have a battery powered alarm or you have plans on purchasing one, make sure that the alarm you choose is equipped with ‘sealed for life’ batteries rather than alarms with replaceable batteries since this is the preferred option.

It is, however, recommended that landlords make an informed decision and opt for alarms based on the individual needs of their property and their tenants. The only known requirements are that smoke alarms are compliant with British Standards BS 5839-6, and carbon monoxide alarms with BS 50291.

Who does this apply to?

Currently, the amendments only apply to England and involves all tenancies presently in place, which also includes both private and social landlords. There are some tenancies that are exempted, such as shared accommodation with a landlord or landlord’s family, long leases, and student halls of residence.

According to the government’s guidance, unlicensed HMOs will be affected by the changes; however, licensed HMOs are exempt from Parts 1 to 5 of the regulations, but only because the regulations also amend the HMO licensing obligations in the Housing Act 2004 so as to implement similar requirements.

It will be up to the tenants to report any faulty devices to the landlord or agent, and it will therefore be their responsibility to test their alarms throughout the duration of their tenancy.

Additionally, clerks in particular, should make sure the ‘expiry date’ is written on the alarms because this information is rarely included as standard on the alarm itself.

The government states that the new updated regulations, which will now be known as Smoke and Carbon Monoxide Alarm (Amendment) Regulations 2022, should be considered alongside other relevant laws on carbon monoxide and fire safety in rented accommodation. These include:

How do landlords prove the alarms have been tested?

As with the previous regulation, alarms should be tested at the start of the tenancy and it’s the landlord’s responsibility to keep a well-documented record of when alarms are tested thereafter.

As always, an inventory and check-in should be arranged at the start of the tenancy which will include smoke and carbon monoxide alarm testing. The report will set out the condition of the alarms, and the tenant should sign this if they are satisfied that they are in good working order.

As an agent or landlord, you want to protect your investments and establish smooth transitions from one tenant to the next. Here at AIIC, we are dedicated to promoting the highest possible standards of accuracy and reliability in the inventory process and have been endorsing high levels of professionalism in the inventory business since 1996.

It is our mission to ensure proper information and training is provided and our bank of highly skilled members will provide the best possible service. For more information, please contact us or search for your local AIIC member clerk now.

You can also download a copy of our Code of Practice and Guidelines for Professional Practice guide here.


Everything landlords need to know about deposit disputes

Deposits are a core element of any tenancy that keeps both the tenant and landlord satisfied and secured during the tenancy.

However, when things go awry, disputes may occur. Landlords and tenants sometimes disagree about deposits at the end of a tenancy and in many cases these disagreements can be resolved by having a detailed and comprehensive inventory in place.

While deposit disputes are relatively rare, they do still happen and can prove costly. So, landlords need to understand why they happen and how they can be prevented.  

Providing that it is stipulated in the tenancy agreement, which should have been looked over and signed by both the tenant and the landlord, a deposit can be withheld to cover any loss incurred by the landlord that is caused by the tenant, such as non-payment of rent or damage to the property.

Under the terms of the Housing Act 2004, it has been a legal requirement since April 6 2007, for landlords who rent a property on an assured shorthold tenancy to protect any deposit taken within 30 days of receipt.

Additionally, the tenant must also be served with a copy of the deposit scheme leaflet along with any other prescribed information.

At the start of a tenancy, landlords should ensure that all deposits relating to assured shorthold tenancies are protected within a government-approved tenancy deposit scheme – namely the Deposit Protection Scheme, mydeposits and the Tenancy Deposit Scheme.

In the scenario where the deposit has been paid by a third party, they must then also be provided with the statutory notice and associated documents.

But the real question is, what should landlords know about deposit disputes, and how curated inventories and training can reduce the number of instances these occur.

Figures from the Deposit Protection Scheme (DPS) show that, following disputes, 18.5% of tenant deposits are returned in full to the landlord, 54.7% are split between both landlord and tenant, and 26.8% are refunded in full to the tenants.

There is a clear difference between damage and fair wear and tear, which needs to be fully understood.

The criteria for deposit deduction must be properly understood before raising any disputes, with deductions not possible for fair wear and tear.

This seeks to prevent the landlord from ending up in a better position than they would otherwise have been.

The role of an inventory

At the beginning of the tenancy, your job as the landlord is not only to provide an adequate home for your tenant, but this is after all your investment, so to protect yourself and your property financially, it’s wise to turn to an inventory.  

This document provides a detailed description of the condition of the property when the tenancy started, including everything from the state of the carpets to the position of the furniture.

Photos are usually also included, which provides additional evidence for your inventory.

During the course of the tenancy, you should also consider carrying out systematic inspection of your property to update the inventory as necessary. Your tenant should also receive a copy of this inventory so they can check off items as they’re returned at the end of the tenancy.

Deposit dispute resolution and prevention

Thankfully, tenant deposit disputes are relatively rare, but in the event that they do occur, a landlord should first try and resolve any disagreement with their tenant amicably.

Give your tenant a breakdown of the amounts and items with the use of your inventory along with the tenancy agreement and show why and what any withhold money is for, whether that be for owed rent or damage to the property.

This is why it is absolutely vital that you prepare a quality inventory with a precise schedule of the condition of the property since this will substantiate any damage or missing items in the rental property, and how they go beyond what should be considered the reasonable wear and tear of the home.

Inventories provide supporting evidence that clarifies what does and does not count as fair wear and tear. Nonetheless, it is essential that before entering into a tenancy agreement, all parties have a firm understanding of this issue.”

As a landlord, you want to protect your investments and establish smooth transitions from one tenant to the next. Here at AIIC, we are dedicated to promoting the highest possible standards of accuracy and reliability in the inventory process and have been endorsing high levels of professionalism in the inventory business since 1996.

It is our mission to ensure proper information and training is provided and our bank of highly skilled members will provide the best possible service. For more information, please contact us or search for your local AIIC member clerk now.

You can also download a copy of our Code of Practice and Guidelines for Professional Practice guide here.


Landlords – ways to cut down costs with the use of inventories

With landlords facing rising costs, many are looking at ways in which to make efficiencies where they can.

Inventories, which offer a detailed list of all items and their condition included in the property – contents, fixtures, and fittings, etc – can help to reduce the chances of disputes occurring or landlords not getting money towards any repairs or maintenance for damaged goods.

Inventories can ensure a stress-free changeover between tenants, protect your investment, and ultimately help you cut costs in the long term. Although this is not a legal requirement, it is best practice since having a complete record of the condition of your property and its contents before and after the tenant’s stay will save you a world of hassle later if a dispute should arise between you and the tenant.

To ensure that the sector remains compliant, and evolves in a sustainable way, streamlined processes and time-saving efficiencies with the use of inventories has become a vital aspect in helping the letting industry while keeping standards at an exceptional level.

Here at the Association of Independent Inventory Clerks (AIIC), we recognise the financial trials landlords are faced with. Below, we look at how inventories can aid in cutting costs which will save landlords money and stress in the long-term.

Reducing the number of errors

Since inventories are meant to be a compilation of all the contents within your property along with details about the condition of the property – if done thoroughly and correctly, as a landlord you should be able to reduce the number of errors that may occur if you’re solely relying on memory.

For example, if contents are damaged and you don’t have evidence that it was in mint condition before the tenant moved in, then it will fall to you to replace the item – unnecessary expenditure on your part.

Therefore, having an inventory can prevent these occurrences from happening and can make clear that any damages or repair costs should be taken out of the tenants’ deposit. This way, you as the landlord won’t be liable for paying for repairs that were caused by the tenant and weren’t natural wear and tear.

Preventing disputes

Disputes can be another costly occurrence and if an inventory hasn’t been carried out correctly, this could make deposit disputes more probable, and also make the odds of you getting a deposit back less likely.

Therefore, having a concise, clear compiled inventory will help to prevent or lessen the chances of deposit disputes occurring. With a clear evidence trail for all parties to see, you will be able to avoid forking out cash to resolve the issue, which can take time to resolve – and we all know the saying, ‘time is money’.

By protecting yourself and your asset against deposit disputes with the use of an inventory, you can focus on things like growing your portfolio and sourcing the best kind of tenants.

Thwarting stress

Stress and finances have always been linked to a certain degree, and as a landlord you are already faced with many potential stresses on a daily basis, which is why cutting costs with the help of inventories can drastically make a difference to your overall wellbeing.

According to research, more than three in four Brits (74%) feel overwhelmed by stress, especially due to their financial situation. Having a comprehensive inventory not only gives you peace of mind, but will ultimately help you save a few pounds that’ll keep your blood pressure lower knowing that you’re protected.

As an agent or landlord, you want to protect your investments and establish smooth transitions from one tenant to the next. Here at AIIC, we are dedicated to promoting the highest possible standards of accuracy and reliability in the inventory process and have been endorsing high levels of professionalism in the inventory business since 1996.

It is our mission to ensure proper information and training is provided and our bank of highly skilled members will provide the best possible service. For more information, please contact us or search for your local AIIC member clerk now.

You can also download a copy of our Code of Practice and Guidelines for Professional Practice guide here.


Deposit disputes – how to protect your rental property

It’s highly probable that anyone who has ever rented a property will know about deposits, and for landlords across the nation, taking a deposit from a tenant is an important part of securing your investment and protecting your property against damage.

Ideally, your tenant will leave the property in immaculate condition when they move out. However, the reality can sometimes look different. Some tenants won’t restore your property to its original form when they hand the keys back – be it damaged sofas, miscellaneous items left in kitchen cupboards or even broken windows.

When this is the case, landlords are left with no other choice but to deduct money from the tenant’s deposit. Some tenants will be understanding and have no complaints with this; however, others will not let their money go without a fight – leading to deposit disputes and deductions.

Although deposit disputes only occur in less than 1% of tenancies, they can cause significant losses, and that’s without equating how emotionally draining this sort of situation can be for both parties involved.

As a landlord, or an agent acting on your landlord’s behalf, you will be eager to protect your investments and establish smooth transitions from one tenant to the next, which is why here at the AIIC have written this blog to explain how you can protect your rental property if you ever find yourself in a deposit dispute.

The return of deposit

Once a tenancy ends, it is the responsibility of you as the landlord and property owner to return the tenant’s deposit in a timely fashion. For insured protection schemes where you have held the money from a deposit yourself, you must return the deposit within 10 days.

If the money is held by the deposit protection agency, such as with custodial schemes, then the landlord and tenant must agree on how much of the deposit is returned and inform the administrator.

Once the amount returned has been agreed upon, which can be anywhere from 0% to 100% of the deposit, the tenancy deposit (TDS) scheme will typically release the funds back to the tenant within two days.

As stated above, this process usually runs smoothly, however it’s important to understand, in certain cases, what a landlord can deduct from a deposit and why disputes are raised in the first place.

Justifications for deducting from a deposit

There are a number of reasons why deposit disputes can occur, starting off with rent arrears and unpaid bills since these are the two most common things landlords deduct from deposits.

Surprisingly, rent arrears only accounted for 15% of contested deposits in 2021, which suggests that tenants will find it challenging to raise a deposit dispute as long as you can provide adequate evidence of rent arrears.

In the instance of a dispute over the deposit, if the tenant asks the adjudicator to investigate this deduction, the adjudicator will have to allow the landlord to keep this money as the tenant has failed to observe one of their basic contractual obligations, payment of rent.

The situation becomes complicated when the adjudicator won’t be able to consider the tenant’s reasons for failing to pay rent and cannot make a ruling based on whether or not the tenant is entitled to ‘compensation’ because the tenant alleges that the landlord has failed to carry out repairs or otherwise provided a ‘poor’ service.

Tenants who believe that they are justified can choose to try and recover their deposit through the Small Claims Court, rather than using the deposit dispute resolution service, but this can prove costly and very time-consuming, particularly now when the courts have such large backlogs.

Additional reasons for landlords deducting money from a deposit also include if the landlord’s contents have been stolen or damaged by a tenant, the property itself has sustained damage directly related to the tenant, the property has been left in disarray, or if the tenant has left items in the property and not arranged for them to be collected.

The importance of inventory and taking legal action

Your inventory will often be the golden nugget needed if a deposit dispute ensues, as the check-in document will detail the exact condition of the property, and this can then be compared to the check-out report.

The information provided in the tenancy agreement will also be vital because this will clearly outline your expectations as the landlord as well as the obligations of the tenant towards the property.

During the check-out process, the level of detail contained within both the inventory and the check-out is important as this will greatly contribute to the evidence you need to provide if deciding to take legal action. Legal action should only be taken as a last resort, with all the government-approved deposit protection schemes having mediation services to try and ensure it doesn’t reach this stage.

If the tenant decides to contest deposit deductions, they have up to three months after the tenancy has ended to raise the dispute with the TDS. If a letting agent manages your property, it’s worth asking them to provide you with relevant information on where the tenant’s deposit is registered and what the deadlines are.

When the time comes, after you have collated evidence to support your claim, and handed it in, the adjudication process can start. For custodial deposits, the independent adjudicator has 28 days to arrive at a decision, meaning that it can take up to six weeks, although it’s usually quicker.

While the dispute is ongoing, you can still reach an agreement with the tenant if you decide to talk to each other about the claim. However, once the adjudicator has made their decision, funds will be awarded which will be final and binding.

Best practice – avoid deposit disputes

Going through the process of deposit disputes can be tiresome and costly, so clear and consistent expectations at the very start of the tenancy are the very best way to avoid these disagreements.

As the landlord, it will be your duty to provide a detailed list of expectations that need to be met to get the entirety of the deposit back. This will in turn give a solid guideline for returning the property to the same condition it was when they took possession. Inventories also play a major part in allowing for clear and transparent comparisons regarding the condition of the property at the start and end of a tenancy, and also – if you carry out a mid-term inspection – the middle of a tenancy as well. 

Here at AIIC, we are dedicated to promoting the highest possible standards of accuracy and reliability in the inventory process along with deposits and have been endorsing high levels of professionalism in the inventory business since 1996.

It is our mission to ensure proper information and training is provided and our bank of highly skilled members will provide the best possible service. For more information, please contact us or search for your local AIIC member clerk now.

You can also download a copy of our Code of Practice and Guidelines for Professional Practice guide here.


Revealed – what landlords need to know about The Decent Homes Standard

The Decent Homes Standard for the social housing sector was first published in February 2004, but has since been updated and amended a number of times.

Recently, the long-awaited “A fairer private rented sector” White Paper was finally released after months of delay and outlined that under the Renters’ Reform Bill the Decent Homes Standard will be extended to the private rented sector as well.

Statistics show that, in 2019, 23.3% of private rental homes were non-decent and 12.3% of social housing was non-decent. The government aims to develop the housing market by further improving the existing standards.

Landlords must familiarise themselves with the Decent Homes Standard and make improvements to their properties to remain compliant and keep their homes free from danger as the legalities surrounding UK rental properties intensify.

Alterations to the Decent Homes Standard

The fundamental details of the of the Decent Homes Standard are that the home is in a ‘reasonable state of repair’. Across the home this covers electrical installations, boilers, doors, roofs, windows, chimney, gas appliances and plumbing. Any home that requires work in more than two of the areas listed will not meet the standard.

For the first time, the same standard of rules and guidelines are set to apply to both the social and private rented sectors. By extending the guidelines, the government hopes to significantly reduce the number of non-decent homes by 2030.

Currently, there are a total of 29 hazards that get assessed under the Decent Homes Standard and these are given a score up to 1,000. Scores over 1,000 do not meet the standards and could put tenants in danger.

The home must meet four pieces of criteria. The minimum standard for housing must be met, it must be in a reasonable state of repair, reasonably modern facilities must be installed, and reasonable thermal comfort must be provided.

Under the new guidelines for rented housing, a home that is qualified as ‘decent’ must be ‘free from the most serious health and safety hazards, such as fall risks, fire risks, or carbon monoxide poisoning’.

Inventories help to maintain standards

The number of health problems and issues that are directly caused by non-decent housing can be reduced by following the Decent Homes Standards to the letter and also by making use of professional inventories to nip any long-term problems in the bud early on.

By getting the appropriate work done around the home and checking all facilities are in working condition, landlords can prevent their homes from falling into disrepair or accidents happening.

A comprehensive check-in inspection report, combined with mid-term inspections during the tenancy and a thorough check-out inspection report at the end, are necessary to ensure the tenancy is hazard-free. Comparisons from the start, duration and end of the tenancy can then be made. 

Inventories provide assurance and certainty as they are time-stamped and provide a timeframe of deterioration of the home. These important reports make it easy to identify and resolve issues that could be detrimental to a tenant’s health.

By inviting a professional inventory clerk into the home to conduct checks, landlords can be confident that the status of their home is recorded fairly and accurately. As independent assessors with experience in the sector, they are qualified to conduct these checks in an unbiased manner.

Landlords who provide decent homes from the start can rely on inventories as a source of protection that demonstrate the home was in good condition and that the landlord is compliant.

Overall, both the Decent Homes Standard and inventories support the view that tenants have the right to adequate housing. Inventories help adhere to these standards and expose landlords who do not.

As an agent or landlord, you want to protect your investments and establish smooth transitions from one tenant to the next. Here at AIIC, we are dedicated to promoting the highest possible standards of accuracy and reliability in the inventory process and have been endorsing high levels of professionalism in the inventory business since 1996.

It is our mission to ensure proper information and training is provided and our bank of highly skilled members will provide the best possible service. For more information, please contact us or search for your local AIIC member clerk now.

You can also download a copy of our Code of Practice and Guidelines for Professional Practice guide here.


Inventory jargon buster – what are the terms you need to get to grips with?

In the property industry, there are a range of key terms that are used to explain the different processes and stages involved with letting a home.

And, when it comes to inventories specifically, there are quite a few things to get your head around.

Understanding the different terminology associated with inventories can help to prevent instances where misinterpretations and confusion arise.

At the AIIC, we encourage landlords, tenants and letting agents to actively learn these terms to make the check-in and check-out process easier for all parties.

Inventory

Property inventories are detailed reports which explain the condition of the property before, during and after a tenancy. These include a list and description of the contents as well as the various components of the home. Fixtures, fittings, and wear and tear are recorded as part of the inventory.

Inventories can be carried out by landlords, letting agents or inventory clerks, although it is advised that professional inventory clerks conduct these checks. The inventory process is comprehensive and takes a lot of skill, therefore professional inventory clerks are more qualified to carry these out effectively. 

When the tenant moves out, if they are liable to pay for damaged, broken, or missing items, the inventory will highlight this.

Inventory clerk

Inventory clerks carry out inventory checks across a range of properties. They are responsible for compiling on-site reports and taking photographs.

Day-to-day duties include inspecting properties, logging keys, traveling to various properties, and interacting with clients and tenants.

Inventory clerks have the necessary training and expertise to carry these out at a high standard. 

Check-in

During a property check-in the property, keys, and any other important documentation are handed over to the new tenants right at the start of the tenancy. 

The inventory report should be completed as part of the check-in process, too.

Check-out

Check-out reports document the condition of the property and highlight the cleanliness of the home. If any changes have occurred, these will also be recorded. 

If any damage is identified or items are logged as missing, this could result in deductions from the tenant’s deposit.

During the check-out, comparisons between the status of the home at the start of the tenancy are made and this is useful evidence if disputes or, in very rare cases, legal proceedings do arise.

Mid-term inspection

During the middle of the tenancy, a mid-term inspection will often be carried out. During this stage, the tenant can use it as an opportunity to ask questions about the tenancy, but most importantly this highlights whether the property is being looked after.

In more serious instances, this stage can reveal if any illegal or unauthorised activity is happening on the premises.

Mid-term inspections can be conducted by the landlord, but it is advised that professional inventory clerks conduct these.

Details of the property’s overall condition and contents are checked during the inspection. Breaches of the tenancy agreement as well as maintenance are inspected, too.

Inventory reports

Inventory reports are detailed reports that document the status of the property.

They are relied on because they reveal whether the rental property is in the same condition as at the start of a tenancy.

Inventory reports should include meter readings, the condition and cleanliness of each room, appliances, fixtures, furniture, and fittings, and the condition of the garden should be included as well. 

These detailed reports should also have date and time-stamped photos of the property and its contents. They must also demonstrate that smoke and carbon monoxide alarms comply with legislation.

Schedule of condition

A schedule of condition, also known as report of condition, is an in-depth documentation of the exterior and interior of the home. 

Everything from the contents, appliances, white goods, décor, fixtures and fittings, equipment serial numbers, list of keys, meter readings, and codes should be noted down in detail.

Adjudicator

In the event of a dispute, adjudicators analyse the evidence presented to them and decide who to award funds that have been disputed.

Adjudicators are unbiased and come to a fair decision based on the information given to them by both parties. 

Tenancy dispute

At the start of the tenancy, tenants must put down a deposit, but if any items are damaged or broken during the tenancy, the landlords can make deductions from the deposit.

Wear and tear are considered inevitable – therefore, deductions should not be made for these. However, if this does happen, unfair deductions from tenancy deposits can be disputed.

Inventories are more important than ever when tenancy disputes arise. If any deductions are made deposit protection schemes and the court require detailed evidence to support claims. 

As an agent or landlord, you want to protect your investments and establish smooth transitions from one tenant to the next. Here at the AIIC, we are dedicated to promoting the highest possible standards of accuracy and reliability in the inventory process and have been endorsing high levels of professionalism in the inventory business since 1996.

It is our mission to ensure proper information and training is provided and our bank of highly skilled members will provide the best possible service. For more information, please contact us or search for your local AIIC member clerk now.

You can also download a copy of our Code of Practice and Guidelines for Professional Practice guide here.