Posts Tagged "Inventories"

Why I Joined the AIIC – And Why You Should Too

When I first became an inventory clerk, it wasn’t just a career move—it was the culmination of a vision. My initial goal was to help landlords make more money from their properties by providing detailed market analysis, competitive insights, and tailored recommendations. I wanted to give landlords reports that were as comprehensive as those you’d receive for owning shares in a company.. Then it hit me: this could be paired perfectly with inventories. I realised the value of creating reports that provided not just a list of what was in a property but detailed insights into its condition and maintenance needs—reports that I, as a busy property manager, would have found invaluable. From that idea, I hammered out a template for what I believed a perfect inventory report should look like, and I haven’t looked back since.

The Struggles of Starting Out

Starting any business is daunting, and my journey as an inventory clerk was no exception. I gave up my job as a property manager based on a gut feeling. I took the risk to step out on my own—a decision that raised a few eyebrows among friends and family.

The early days weren’t easy. Gaining clients with no track record was a real struggle, but luckily, an old property manager friend, John, threw me a lifeline. He trusted me with all his inventory work and even gave me side jobs like decorating and gardening to keep me afloat. That first boost of trust and business helped me build momentum and eventually grow my client base.

Why I Joined the AIIC

As someone new to the field, I knew I needed to build credibility quickly. Convincing agents and landlords to trust you when you’re just starting is tough. Joining the Association of Independent Inventory Clerks (AIIC) was the first step in establishing legitimacy.

The AIIC gave me more than just a logo on my reports—it gave me confidence. I wanted to know what standards I needed to adhere to, and I wanted advice on how to grow. Joining also gave me access to the PRS redress scheme, which further legitimised my business. When you’re trying to stand out, being part of a recognised organisation like the AIIC makes all the difference.

How the AIIC Has Helped Me

The greatest value I’ve gained from being an AIIC member is recognition for the quality of my reports and the opportunity to connect with other members. As someone who constantly rethinks and refines their product, having access to experienced members and even the CEO for advice has been incredibly valuable.

Although I haven’t yet accessed the training materials, I’m excited about the improvements coming under the guidance of our Head of Training, Sally Carter. Sally has a wealth of knowledge—arguably more than I could ever hope to learn—and I look forward to brushing up on my skills.

AIIC membership has also helped me land larger clients, like Dolphin Living in central London, which has been a huge honour. It’s allowed me to transform my career and my life. I’m no longer the underpaid, overworked property manager I once was. Instead, I’m a business owner who serves tenants and landlords directly, offering them a great service while earning more and finding personal fulfilment.

A Life-Changing Decision

The AIIC hasn’t just improved my business—it’s changed my life. It gave me the confidence to take risks, grow my business, and pursue my passions. It’s even part of the reason I met my gorgeous wife, Sharon. We’ll soon be celebrating our one-year anniversary, something I might not have achieved without the change in direction that joining the AIIC helped facilitate.

Winning awards like Best Newcomer and Best Sole Trader has been a highlight of my career. After years of feeling overlooked and undervalued as a property manager, those moments made me realise the power of trusting your gut, taking pride in your work, and serving clients to the best of your ability.

Why You Should Join the AIIC

For anyone on the fence about joining, I’ll say this: we’re all in this together. As inventory clerks, we might be competitors at times, but no one else truly understands the challenges of our work like we do. The AIIC provides a community where you can connect, share stories, and grow professionally.

At the very least, joining gives you PRS cover, which changes you from a “have-a-go hero” to someone businesses take seriously. Even if you never attend a meeting or talk to another member, that alone is worth it.

What’s more, the AIIC is undergoing a big transformation. As a new board member, I’m thrilled to be part of exciting plans to improve the lives of our members, raise industry standards, and build a stronger community. Our jobs are critical—we hold the keys to resolving deposit disputes fairly and ensuring a smoother moving process for tenants and landlords.

Final Thoughts

Joining the AIIC has been one of the best decisions I’ve made, both professionally and personally. It’s not just an organisation—it’s a support system, a mark of quality, and a gateway to greater success.

If you’re ready to take your career to the next level, visit www.theaiic.co.uk and join today. You won’t regret it.

Published on 09/03/2025 | Tags: AIIC, AIICmembership, Deposit Disputes, Inventories, inventoryclerks, Landlords, Tenants, The AIIC | Category: Blog | No Comments »

TDS Launches My Housing Gateway – A Step Forward for Tenants, But Could Landlords Benefit Too?

Key Takeaways:

My Housing Gateway, developed by the TDS Charitable Foundation, is a new platform providing tenants with clear guidance on where to report housing issues and how to resolve disputes.
The initiative is a positive step towards transparency and early resolution of rental disputes, ensuring tenants know their rights.
AIIC reporting standards align with TDS expectations, ensuring independent inventory reports serve as trusted evidence in deposit disputes and legal proceedings.
With landlords facing increasingly complex regulations, a similar advisory platform for landlords could help them better understand and comply with their obligations.
AIIC commends this initiative and hopes to see further collaborative efforts to enhance support for both tenants and landlords alike.

TDS Launches My Housing Gateway – A Step Forward for Tenants, But Could Landlords Benefit Too?

The rental sector continues to evolve, with growing efforts to improve tenant protections and dispute resolution mechanisms. At AIIC, we welcome initiatives that enhance transparency, accessibility, and fairness for all parties involved in the private rented sector. The launch of My Housing Gateway, developed by the TDS Charitable Foundation, is an important step in this direction, providing tenants with clear guidance on where and how to raise concerns about their rental properties.

This initiative is a commendable effort to simplify what can often be a complex and overwhelming process for tenants. With research showing that 50% of private renters do not know where to go for help when an issue arises, My Housing Gateway has the potential to bridge this knowledge gap and support early dispute resolution.

However, as the industry continues to move towards greater regulation and professionalisation, we believe that a similar resource for landlords could also prove invaluable.

My Housing Gateway – A Much-Needed Resource for Tenants

At its core, My Housing Gateway is designed to direct tenants to the correct authority or service depending on the nature of their housing issue. Many renters are unaware of whether they should be speaking to their landlord, managing agent, local council, or an independent redress scheme, leading to confusion and unresolved disputes that could have been addressed more efficiently.

This initiative is particularly timely given the ongoing rental reforms, which are introducing new enforcement mechanisms and regulatory standards. By equipping tenants with the right knowledge, My Housing Gateway can help ensure that complaints are raised in the appropriate manner, ultimately leading to faster and fairer resolutions.

At AIIC, we have always advocated for professionalism and transparency in the rental sector, and we commend TDS for taking proactive steps to empower tenants with clear, accessible information.

The Importance of Accredited Inventory Reports

As rental disputes become more visible through platforms such as My Housing Gateway, the importance of comprehensive, professionally compiled inventory reports cannot be overstated.

AIIC inventory reporting standards have been developed in line with the expectations set out by deposit protection schemes such as TDS, ensuring that reports are:

Impartial and comprehensive – Providing an accurate record of the property’s condition at the start and end of a tenancy.
Detailed and time-stamped – Ensuring that all issues are documented in a way that holds up in tribunals and court proceedings.
Consistent with dispute resolution frameworks – Making sure reports are accepted as reliable evidence by adjudicators.

When disputes arise over damage, cleaning, or missing items, an AIIC-accredited inventory report can be the deciding factor in a fair resolution. Without a properly documented inventory, landlords risk losing deposit claims, and tenants may face unjust deductions due to poor-quality evidence.

This is why we strongly advocate for independent, professional inventory clerks—not only to protect both landlords and tenants, but to reduce the number of disputes reaching adjudicators in the first place.

With initiatives like My Housing Gateway highlighting tenant concerns, it is more important than ever to ensure that accurate, high-quality inventories remain at the heart of dispute resolution processes.

A Balanced Approach – Could Landlords Benefit From a Similar Resource?

As we celebrate this progress, it is also important to recognise that landlords face an increasingly complex regulatory landscape. While there are strict compliance requirements placed upon landlords, there is currently no equivalent, centralised guidance service to help them understand their obligations in a simple and structured way.

The penalties for non-compliance in the private rented sector can be incredibly severe—ranging from significant financial penalties to criminal prosecution. A minor administrative error, such as an incorrect date on an eviction notice, can invalidate an entire possession claim, whereas a failure to comply with deposit protection rules could result in heavy fines and legal repercussions.

Given that My Housing Gateway serves as a clear and structured advisory tool for tenants, we believe that a similar initiative tailored to landlords could be an equally valuable asset to the industry.

Such a platform could:

Provide landlords with a step-by-step guide on their responsibilities and legal obligations.
Help prevent compliance issues by ensuring landlords have access to clear, up-to-date guidance.
Support fair and effective dispute resolution by encouraging best practices from the outset.

At AIIC, we have seen first-hand how misunderstandings between landlords and tenants can escalate into disputes that could have been avoided with better information and guidance. Just as tenants need clarity on their rights, landlords should also have access to a trusted, centralised resource that outlines their responsibilities in an accessible way.

A Collaborative Approach to Industry Improvement

We believe that initiatives like My Housing Gateway represent a positive step towards a more informed and transparent rental sector. TDS has taken a leading role in empowering tenants with valuable resources, and we fully support the principles behind this initiative.

At the same time, landlords play a crucial role in ensuring a well-functioning rental market, and providing them with a dedicated advisory platform would complement existing efforts to improve standards across the sector.

As the rental market continues to evolve, we hope to see further collaborative efforts between industry leaders, policymakers, and organisations like TDS to create balanced solutions that support both tenants and landlords alike. AIIC remains committed to raising professional standards, supporting fair dispute resolution, and contributing to industry discussions that help shape a more effective and transparent rental sector.

Final Thoughts

The introduction of My Housing Gateway is a welcome step towards ensuring that tenants have access to clear, structured guidance on their rights and dispute resolution options. AIIC commends this initiative and hopes to see further collaborative efforts to enhance support for both tenants and landlords alike.

At the same time, we recognise the challenges that landlords face and encourage further discussions on how similar initiatives could support landlords in navigating their responsibilities with equal clarity. Ensuring that both tenants and landlords have access to the right information at the right time will be key to fostering a more professional and well-regulated private rented sector.

At AIIC, we look forward to seeing how My Housing Gateway evolves and remain optimistic about the potential for future innovations that benefit all stakeholders in the industry.

What do you think? Would a similar advisory platform for landlords be a useful addition to the rental sector? Let’s keep the conversation going.

Published on 03/03/2025 | Tags: AIIC, Inventories, Landlords, Tenants | Category: Blog | No Comments »

New law should make independent inventories compulsory

The Renters’ Reform Bill must include measures to make independent inventories compulsory in every tenancy agreement, says AIIC Chair Daniel Evans.

The controversial and long-awaited Bill was introduced into the House of Commons last month after being delayed for what the Government described as ‘procedural reasons.’

Now, Daniel has called on Ministers to take this opportunity to add strict regulations making the use of independent inventories by landlords and letting agents mandatory.

The Renters’ Reform Bill has been described as the most radical reform of the Private Rented Sector for a decade.

The proposals laid out in the Bill include:

The abolition of Section 21 (so-called ‘no-fault’) evictions;
The introduction of a Decent Homes Standard for the PRS;
A Government-appointed Ombudsman;
Restrictions on landlords’ ability to put up rents

It is generally believed that the Bill is intended to address imbalances within the PRS which, up to now, favoured landlords.

But Daniel believes this new legislation is the perfect opportunity to include a reform which would be independent of both landlord and tenant.

“Inventory companies have the capability of being the only truly independent agencies operating throughout the lettings process,” he says.

“It is clear the Government wants to ‘professionalise’ the PRS and this is an obvious place to start. Ministers should take this opportunity to include a clause which makes independent inventory mandatory.

Credibility

“Then, in the event of a dispute, the inventory will be valuable evidence to offer to the deposit protection scheme provider.

“But if this process is going to have credibility for the tenant as well as the landlord, that inventory must be curated by an independent agency.

“This increase in transparency is not just about tenants. Landlords, too, can benefit from utilising the services of a professional independent inventory clerk to improve the service for everyone.”

Daniel’s call comes after new data suggests the number of landlords planning to sell rented properties has reached its highest rate on record.

Polling by research consultancy BVA-BDRC found that in Q1 2023, 33% of private landlords in England and Wales said they planned to cut the number of properties they rent out. This is an all-time high recorded by BVA-BDRC and is up from the 20% who said they planned to cut the number of properties they let in Q1 2022. This comes despite demand being at a record high with landlords blaming taxation policy, high interest rates and legislation for their withdrawal from the market. It is estimated that 65,000 properties were offloaded by landlords in the first quarter of 2023.

Published on 29/06/2023 | Tags: AIIC, Inventories, Landlords, Tenants | Category: Blog | Comments Off on New law should make independent inventories compulsory

The importance of independent inventories – spreading the word

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.

Published on 02/05/2023 | Tags: Check-In, Check-Out, independent inventory clerks, Inventories, inventory disputes, Renters’ Reform Bill, tenant adjudication | Category: Blog | Comments Off on The importance of independent inventories – spreading the word

Fire safety – what landlords need to know

In the latest available figures from the government’s Home Office, there were 29,750 domestic house fires in the year 2018/19. Of those, 253 people tragically died, with a further 7,160 injuries requiring treatment.

Thankfully deaths have been falling year on year, but it’s vital for landlords to meet all the rules and do everything they can to prevent fires, with the focus on saving lives rather than property.

The Regulatory Reform (Fire Safety) Order 2005 requires landlords to “eliminate or reduce the risk of fire as far as is reasonably practical”.

Here’s what you need to know for single lets, with a mention of multi-tenant properties as well.

Smoke alarms and carbon monoxide detectors

This is covered by the Smoke and Carbon Monoxide Alarm (Amendment) Regulations 2022.

All landlords must make sure there’s at least one smoke alarm on each storey of their home where there is a room used as living accommodation. They must also make sure that there’s a carbon monoxide detector in any room which has a fixed combustion appliance.

In practice the CO detector needs to be put in any room which houses a gas boiler, coal fire or wood burning stove. It doesn’t apply to gas cookers, but it’s a good idea to have a detector close to the cooker anyway. Again, going beyond the regulations, it’s good practice to install a heat detector in the kitchen. This won’t go off if someone burns the toast, but it will alert tenants to an actual fire.

By the way, wood burners are all the rage just now. But as well as complying with local authority rules, anything put in after 2011 needs an installation certificate, and you should tell your insurer.

Recommended alarms are compliant with British Standards BS 5839-6 – it will usually say so on the packaging. You can choose mains –powered (“hard wired”) versions or battery-powered. There are now “sealed for life” battery versions where the battery cannot be removed. These should last around 10 years.

Tip: use an inventory to prove compliance

Landlords are responsible for testing the alarms at the start of each new tenancy and repairing or replacing if there are faults. It’s a good idea to do this in front of the tenants and keep a written record which can be signed by all parties and can also be made part of the inventory.

Considerate landlords should consider providing sturdy step-stools, or a safe stepladder if there are high ceilings, to test and switch off ringing alarms – there’s nothing more calculated to annoy the neighbours!

The best place for smoke alarms is on the ceiling of halls and landings. CO detectors are portable and are best put on a wall or shelf around head height and about 1-3 metres away from the source of potential emissions.

Consider sharing the manufacturer’s instructions with the tenants.

The same rules cover unlicensed HMOs (Houses in Multiple Occupation). But if your HMO requires a licence, in practice the local authority rules will be the same as a minimum – and they may add extra requirements. There are other rules affecting HMOs including fire doors, emergency lighting and lots more. Contact your council if you are going down this route.

Furnishings

The rules apply to soft furnishings you have supplied as a landlord, and not to tenants’ own possessions.

Sofas and covers supplied with them must have a manufacturer’s label stating their fire resistance. Surprisingly, this doesn’t apply to mattresses and bed bases. Nor does it apply to pillows, cushions and bedcovers.

In practice it is much safer to make sure all items have fire-resistance labels, and it’s not recommended to buy second-hand furniture which is missing its labels.

Escape routes & firefighting

You should make sure that “escape routes” – ie hallways, stairs and landings – are not cluttered with, for example, bins, bicycles or suitcases. Try to ensure there’s space for these items in other parts of the premises.

If you have a single-let rental rather than an HMO, you don’t have to provide fire extinguishers or fire blankets. Think about having them anyway – powder or CO2 are best for extinguishers. None of them can be used on fires involving metal. Make sure tenants have instructions – but remind them it’s not their duty to fight fires, as it may be safest to leave the property.

If you would like to reduce risks or put together a fire plan, your local fire and rescue service can advise.

And the rest!

If you provide electrical equipment, even if it’s just a kettle, you could consider PAT testing once a year by an electrician or certified tester – this doesn’t cost much. Again, you can make this part of the inventory. There is no legal requirement to do this, however.

What’s mandatory is an EICR – Electrical Installation Condition Report – done by a qualified electrician. This can be upwards of £200 but it does last five years and will spot any wiring flaws and advise on how to fix them.

If you have gas, you will need a Gas Safety Certificate done annually by a Gas Safe registered engineer. Again, this is the law.

And relax…

Sticking to the above advice will hopefully give you and your tenants reassurance and peace of mind.

Here at the AIIC, our members can provide you with a professional inventory service covering all your landlord needs.

Published on 30/03/2023 | Tags: EICRs, gas safety certificate, HMOs, Inventories, landlord fire safety, PAT testing, soft furnishing rules | Category: Blog | Comments Off on Fire safety – what landlords need to know

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.

Published on 01/12/2022 | Tags: Inventories, Inventory Management, Inventory Training, Landlord, Letting Agent, The AIIC, Training | Category: Blog | Comments Off on Revealed – why professional inventory management training is so important

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.

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

Published on 04/11/2022 | Tags: Digital Records, Independent Inventory, Inventories, Landlord., Letting Agent, Proptech, Technology, The AIIC | Category: Blog | Comments Off on What role does tech play with property inventories?

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.

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

Published on 14/10/2022 | Tags: AIIC, Daniel Evans, Deposit Disputes, Deposit Protection Scheme, Inventories, Landlords, TDP, Tenants | Category: Blog | Comments Off on Everything landlords need to know about deposit disputes

Inspection photos and GDPR

Do you consider GDPR implications when taking photos at mid term inspections?

Tenants have the right to private enjoyment of the property they are renting. The landlord or their representative are entitled to inspect the property at regular intervals, however the tenant can object to photographs being taken which include their personal belongings, photographs or items that could identify them.

This creates a dilemma when it comes to inventory clerks carrying out mid term inspections. Should you take room overview photos or not? The simple answer is you need to ask the tenant for consent. As long as consent is obtained in writing there should be no GDPR issues.

When contacting a tenant to arrange a mid term inspection, it is good practice for the inventory clerk to ask them if they consent to room overview photographs being taken. These photographs should only be shared with the parties relevant to the tenancy, such as the landlord, managing agent or tenant and should not be used for marketing purposes or shared on the internet.

The AIIC recommends that our inventory clerks should always explain the procedure to the tenants upon arrival and ask them if there are any issues they would like noted on the mid term inspection report. Remember to explain that mid term inspections can protect all parties and help to avoid any issues with the deposit return.

If a tenant objects to photographs being taken, we suggest that the clerk only takes photos of smoke/heat/carbon monoxide alarms and any specific issues, i.e. leaks, black spotting etc with the tenant’s consent. The clerk should provide a full written report detailing the condition rather than relying on illustrative photographs.

In any event, when taking photos of occupied properties, be sensitive and try to avoid the tenant’s belongings and family photos or paperwork lying around. The purpose of the photos is to illustrate how the property is being kept, ensure there are no breaches in the tenancy occurring and check that there are no maintenance issues that have not been reported.

Published on 12/05/2022 | Tags: Inventories, Inventory Clerks, Landlords, Letting Agents | Category: Blog | Comments Off on Inspection photos and GDPR

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.

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

Published on 10/02/2022 | Tags: AIIC, Deposit Disputes, Inventories, Inventory Clerks, Landlords, Letting Agents, Schedule of Condition, Tenancies, Tenancy Management, Tenants | Category: In the Press | Comments Off on Agents and landlords – what should a good inventory include?