The importance of having an Inventory Report

One of the best ways to minimise the risk of disputes with tenants over the return of deposits at the end of the tenancy is to compile a comprehensive and clear inventory at the start of every tenancy.

It is best practice for a detailed inventory to be carried out at the start of the tenancy. If tenants are aware that the state and contents of the property has been itemised, they are more likely to ensure that the property is left in the same condition in which it was originally let. Inventories are particularly important now that tenancy deposit schemes are in place across the UK as they form critical evidence in cases of disputes.

At check-in, the inventory should detail the current state of the property, including descriptions, age and condition of the fixtures, fittings and furnishing. This helps landlords and letting agents compare the state of the property at check-in and at check-out. Make sure the inventory is written in clear language, and defines the terms used to report the condition or cleanliness of items in the property. It must be clear enough for a third party to understand without them being present.

If an inventory is not carried out, or if it was insufficiently detailed, then it may not be clear how the property should be left before departure, which could lead to a deposit dispute. Dealing with a deposit dispute can be stressful and costly for those involved so it’s always preferable to avoid this. According to data published by my|deposits earlier this year in relation to England and Wales, currently only 1% of tenancies require formal dispute resolution, while in 60% of tenancies the landlords and agents return the deposit in full and in 39% a deduction is negotiated with tenants.

Make sure that your tenancy agreement deals with specific topics such as who takes responsibility for the garden and its upkeep, and the levels of cleaning required at check out.

The NLA recommends that landlords or agents conduct a mid-term and a pre-check out inspection which can also help resolve any issues and avoid a dispute.

Landlords and agents can enlist a reputable inventory company prepare the inventory or they may choose to undertake the inventory themselves. Nowadays inventories often include photographs, digitally date stamped or embedded into the printed inventory. Some landlords also prepare video inventories, with commentaries and close ups of fixtures, fittings and furniture.