In The Press

Agents and landlords – what should a good inventory include?

During the check-in and check-out process of any tenancy, one of the most important pieces of documentation you will have will be your inventory.

Not only do they ensure the maintenance and good condition of a rental property, but they are also crucial for preventing deposit disputes between the landlord and tenant.

At the start of a tenancy, tenants will sign a tenancy agreement detailing the rules and regulations they must adhere to. During this time, the inventory must be conducted, agreed upon, and signed by both parties.

Throughout the tenancy, landlords should make periodic inspections to note any damage that does not correspond to the inventory report.

Finally, at check-out, landlords must compare the condition of the property to the initial inventory to identify whether any deductions will need to be made from the tenant’s deposit.

With inventories playing an absolutely vital role in any successful tenancy, it’s important to understand what they entail and which pitfalls to avoid.

Here at AIIC, using our experience as the leading association of dedicated independent inventory clerks, we provide a comprehensive breakdown below.

What should a good inventory consist of?

In layman’s terms, an inventory is a list of all the items and contents in a property, as well as a detailed record of its general condition.

Before the tenant moves in, an inventory is created to ensure the landlord can monitor the state of the property and the items/contents included throughout the tenancy, and when the tenant moves out.

A good, detailed inventory will include a full written report of condition – also known as a schedule of condition – which is a thorough documentation of the property’s interior and exterior. That includes appliances, white goods, décor, fixtures and fittings, all contents, the garden and any outbuildings.

In addition, a full list of keys (and who they’re given to), equipment serial numbers, meter readings and alarm codes should be noted down. There must also be a declaration page at the end of the inventory for signatures.

While it isn’t mandatory, taking video or photographic evidence of the state of the home is advisable – particularly in regard to expensive items. This helps to remove any doubt about the original condition of items if a tenant tries to claim no damage has been caused.

Who compiles an inventory?

A comprehensive inventory requires time, effort, and skill, and should be unbiased and compiled to a rigorous, professional standard.

While an inventory can be crafted by the landlord, it is common to appoint an independent inventory clerk to do the job.

An inventory clerk who will offer an impartial, specialised service must be AIIC-vetted to guarantee peace of mind.

As an association, AIIC are committed to excellence and professionalism in the inventory process. Our efficient members work hard to avoid unnecessary costs and legal disputes – ensuring every party is aware of its responsibilities.

By appointing an AIIC-vetted inventory clerk with specialist knowledge, landlords can have confidence that everyone is legally protected and abiding by the necessary regulations.

Another alternative is for the letting agent to carry out the inventory. This could include the arranging of inventories and the management of the check-in process, quarterly inspections and overseeing the check-out process.

What happens at check-out?

At the end of a tenancy, a final inventory check should be passed as tenants move out. This is when landlords compare the two reports to see what, if anything, to deduct from their deposit.

The tenant must be present during check-out to run through the inventory piece by piece, and both parties should agree on any discrepancies before their deposit is returned. If anything is missing or has been damaged, calculations should be made as to how much it will cost for replacements/repairs.

An independent inventory clerk will mark on the check-out report whether they consider any damage or deterioration to be the landlord’s or the tenant’s responsibility. This should make it easier to decide if deductions need to be taken from the deposit.

On those rare occasions where there isn’t agreement between both parties, a third party may need to be brought in to mediate – this might be the letting agent or a tenancy deposit dispute service.

This, however, should always be a last resort, and all other avenues should be exhausted before taking this route. If the damage is clear, most tenants are likely to play ball. Still, the tenant must be made aware in writing what they owe and how much will be taken from their deposit as a result.

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.

Insight – how should the check-out process be carried out?

The check-out process involves much more than just collecting the keys from tenants and arranging the return of the deposit.

In fact, it is one of the most crucial steps at the end of a tenancy, with a successful check-out able to reduce the chances of any deposit disputes occurring between you and your tenants.

For landlords, the check-out provides a concise record of the state of the property and its contents, while for tenants it offers the opportunity to state a case for any damage caused during the tenancy that might affect how much deposit is returned.

Below, we provide thorough insight into the check-out process and what steps are needed to avoid disputes and give you the best chance of getting your full deposit back.

Before check-out

Assuming the correct notice has been given and an end date has been established, the first step is to confirm, in writing, that any notice has been received and is being processed.

While the tenancy agreement will contain everything the tenants need to know, it’s important to familiarise them with key information of the tenancy agreement, as it may have been several years since they last saw it.

Leading up to check-out, your tenant will need to thoroughly clean the property (including flooring, upholstery, furniture, and all appliances), defrost the freezer, remove all waste, and clear the garden.

Arrangements will need to be made with the tenants to collect the keys, which is often best carried out at the property. This will allow you to walk through any issues found with the tenant in person.

Prevention is better than cure, so it’s worth explaining to tenants while they are still in the property what the consequences may be if items are found to be damaged in the property.

It’s also good idea to include ‘a guide to deposits disputes and damages’ from the chosen deposit protection scheme. Although lengthy, it could help answer any questions the tenants may have about the process.

During check-out

The process itself should go fairly smoothly, provided your tenant has carried out any necessary repair works and left the property in the same condition as when they first moved in.

However, if anything is missing or has been damaged, the only way you are able to make a claim against the tenant’s deposit, would be by providing evidence – and this is done via an inventory.

The most useful evidence that a tenancy deposit scheme would consider is a fully conditioned check-out inventory combined with a fully conditioned check-in inventory taken at the start of the tenancy.

An inventory should be professional and detailed enough to show clear photos of every item, the date and time stamp, and the document signed by the tenants to show they accept it as being fair and accurate.

If an inventory isn’t taken at the end of the tenancy, and the tenant disagrees with any deductions you’d like to make, you would find it extremely difficult to make a successful claim against them.

Appointing an independent inventory clerk could help to abate any uncertainty, as they will mark on the check-out report whether they consider any damage or deterioration to be the landlord’s or the tenant’s responsibility.

After check-out

If an agreement can’t be reached between both parties, or if there are issues that need rectifying, you’ll want to carry them out right away. If using contractors, for instance, you’ll need to keep copies of all the invoices as this would be evidence you’ll need in the event of any dispute.

Once all the work has been completed, you’ll need to formally explain your findings to the tenants, and have them sign their approval to deduct any funds from their deposit.

When compiling this document, it’s best to show the condition of the item in question at the start of the tenancy and at the end of the tenancy, which clauses in the tenancy agreement they have allegedly breached, explain what actions have been taken and detail the costs and any adjustments

At this point, the evidence will be self-explanatory, and tenants should agree to any deductions. If not, however, a third party may need to be brought in to mediate, such as a tenancy deposit dispute service. This should always be a last resort, and all other avenues should be exhausted before taking this route.

If the case goes to adjudication, you will be required to provide evidence to the tenancy deposit scheme that you use. Once you have agreed on how much of the deposit should be returned to the tenant, you then have 10 days to send the money back.

Here at AIIC, our independent inventory clerks can help to streamline the check-out process, providing detailed reports, photographic evidence, suggestions for compensation costs, and more.

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.

AIIC Full Media Coverage 2017/18/19/20

Press Release: Danny Zane steps down as chair of the AIIC

Press Release: Minister rejects ban on rent increases

Press Release: Demand from letting agents sees rise in virtual tours

Press Release: Are inventory clerks essential workers? Trade body seeks clarification

Press Release: Coronavirus: trade group tries to reassure agents

Press Release: Students who rent urged to “go lawsuit crazy” from March 20

Press Release: Coronavirus advice: ‘Stand six feet from clients when visiting properties’

Press Release: AIIC reports surge in demand for inventories

Press Release: UK’s first deposit scheme that requires reporting welcomed by AIIC

Press Release: Major high street agent using ‘biased’ check out reports to make money, it is claimed

Press Release: Tenant fees ban leads to landlords owing tenants thousands

Press Release: Long delays continuing with tenant deposit return times

Press Release: Tenants warned regarding misuse of inventories

Press Release: AIIC issues warnings as inventory misuse is rising

Press Release: It is good practice to have a well prepared inventory to ensure a risk-free tenancy

Press Release: Is virtual reality the next step for independent inventory reporting?

Press release: Increasing number of safety issues flagged up by inventory clerks

Press release: Importance of Inventory Reporting Stressed by Government and Deposit Scheme

Press release: Mitigating business risk through inventories

Press release: Importance of Inventory Reporting Stressed by Government and Deposit Scheme

Press release: TDS inventory guidance ahead of tenant fee ban introduction

Press release: Inventories are as Important as Deposits, the AIIC Insists

Press release: Will tenants be left more vulnerable after the letting fees ban?

Press release: Calls for inventory clerks to back Fitness For Human Habitation Bill

Press release: Mould: A growing issue for landlords and tenants alike

Press release: What it takes to be an independant inventory clerk

Press release: Why Independent Inventory Clerks will be essential following the lettings fee ban

Press release: Inventory clerks subject to abuse when parties do not agree

Press release: Inventory clerks happy to go the extra mile despite being under pressure

Press release: Lettings sector warned to be cautious of for-profit inventory associations

Press release: New Chair for professional property body as inventory awareness campaign continues

Press release: Ongoing campaign/petition to regulate independent inventories

Press release: Agents and landlords urged to sign mandatory inventories petition

Press release: Student lettings – Independent inventories are crucial, says AIIC

Press release: Deposit cap could lead to more disputes, says industry trade body

Press release: ‘BBC landlord show is an eye-opener for the industry’ – AIIC

Press release: Tenants will leave things behind, so make sure you’re covered

Press release: Trade body calls on government to make independent inventories compulsory

Press release: Lettings industry trade body announces new joint chairs

AIIC PR Articles

Letting Agent Today: Trade body renews call for agents to back demand for mandatory rental inventories

Property Reporter: Could independent inventories save tenants money

Mortgage Introducer: Professional property body hires chair

Letting Agent Today: Groups new chair wants inventories at the heart of professionalised lettings sector

Agent Wow: New chair professional property body inventory awareness campaign continues

The AIIC petition for compulsory independent inventories starts

Dear Members/Friends,

We are really pleased to announce that after much preparation we have now started a petition calling on the Government to discuss enforcing unbiased independent inventory reporting as an essential part of the residential letting process.

Full protection should be offered to all parties within the letting process and independent inventory reporting is the only way to ensure that no bias reports are used. This will also enable the Government’s Tenancy Deposit Scheme to have sufficient impartial evidence to enable them to adequately adjudicate should there be a dispute. We have seen more and more evidence of tenants being made to sign bias reports in return for their keys, mostly unaware that the inventory report is compiled by a landlord, agent or source that is not third party or unbiased.

This must now be stopped.

Please help us by sharing the petition via the below link to as many people as possible.

Please help us to make tenancies safer for all parties:
“Make independent inventory reporting of privately rented properties compulsory”

Click this link to see our petition and start sharing it:

https://petition.parliament.uk/petitions/203746

Petition: Make independent inventory reporting of privately rented properties compulsory
petition.parliament.uk
Independent inventory reporting of privately rented properties on an AST should be a mandatory requirement. Independent inventories offer protection and help to reduce the number of deposit disputes. Please support this petition and help us make the letting process more transparent for all.
Best Wishes,

Danny Zane & Emma Glencross

AIIC Inventory Insight – January 2017

In this Issue:

Winter Precautions
Data Protections
TDS Foundation Funds Available
AIIC Inventory Clerk of The Year
Training Courses
All in a Day’s Work

AIIC Inventory Insight – January 2017

AIIC Inventory Insight – November 2016

AIIC Inventory Insight – November 2016

 

In This Issue:

Complaints Against Agents Rise

Unwelcome Visitors

Have You Seen a Ghost Tenant

Don’t Get Ripped by Your Contractors

Garden Health & Safety

 

AIIC Inventory Insight – August 2016

In This Issue:

Lettings Regulations – Are You Up to Speed

Tenant Trends

Excellence Through Independence

The AIIC Supports Macmillan

 

AIIC Inventory Insight – June 2016

AIIC Inventory Insight – June 2016

 

In This Issue:

Check Out Problems

New Online Training Courses

AIIC & the Property Redress Scheme

AIIC Inventory Insight – March 2016

AIIC Inventory Insight – March 2016

This issue:

  • Clerk of the Year Winners
  • Spring Inspections
  • Student Lettings
  • TDS Foundation
  • Inventory Clerk Training Course