Posts Tagged "Inventories"

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?

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.

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, Check-In, Check-Out, Deposit Disputes, Deposit Protection Schemes Inventory Clerks, Inventories, Landlords, Tenancies, Tenants | Category: Blog, In the Press | Comments Off on Insight – how should the check-out process be carried out?