Check-Out | AIIC - Association of Independent Inventory Clerks

The AIIC have issued a press release pointing out the benefits of independent inventories, and the potential pitfalls of going down the route of using a person or firm that is owned by or allied to a property company.

When you are running a members’ association of independent inventory clerks, it’s important to spread that message.

This helps to raise awareness among landlords, encouraging them to see the value and transparency of a truly independent report.

Value, because there is a separation between letting agents’ prices and our members’ prices, making an independent inventory more cost-effective.

Transparency, because independent inventories are unbiased and objective, and landlords and tenants know exactly who they are dealing with.

Value and transparency to impress clients

These are great points which our members can use to market themselves to landlords, or to letting agencies which do not employ their own inventory team.

And that whole question of employment is, in fact, rather opaque. Many landlords don’t realise that when they leave it to a letting or managing agency to arrange the inventory, (whether that company is large or small) the work is often passed to a firm that the agency owns.

This is where more awareness is needed, because in the above scenario, these companies are there to make money, while the AIIC is a not-for-profit organisation.

There is also the possibility of bias creeping in, in favour of the landlord; and if there is a dispute between individual landlords or agencies and tenants when damage has occurred, this potential for bias may be taken into account in any adjudication process.

Fairness and objectivity are embedded

In contrast, fairness and objectivity will be the bedrock of the process when it is carried out by an independent individual or company which is a member of the AIIC.

AIIC chair Daniel Evans is calling on the Government to include measures in the Renters’ Reform Bill – going before Parliament this year – which would guarantee the use of qualified, independent inventory clerks in the inventory, check-in and check-out process.

But whether that happens, or until it happens, our members can help to raise awareness and garner more business by, for instance, pointing out on their websites and marketing materials that they are not only well-qualified, but also totally independent.

Landlords can also be made aware that this can reassure tenants, knowing that the inventory process will not be biased in favour of either side and will therefore have credibility.

This is why it will always be better for landlords to turn to our members for all their inventory needs.

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.

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