Posts Tagged "Letting Agents"

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

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

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

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

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

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

Reducing the number of errors

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

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

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

Preventing disputes

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

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

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

Thwarting stress

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

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

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

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

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

Published on 03/10/2022 | Tags: AIIC, Allowable Expenses, Cutting Costs, Financial Security, Inventory, Landlords, Letting Agents, Property Industry, Tenants | Category: Blog | Comments Off on Landlords – ways to cut down costs with the use of inventories

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.

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?