Protect Yourself with an Inventory

It is crucial to create an Inventory at the start of your new tenancy detailing the condition of the property before your tenants move in!  You may even prefer to outsource this part of your duty to a professional which provides you with an independent report and can be used as evidence if needed for any disputes.

Some things to consider….

• Furnished or unfurnished - it doesn’t matter. Still take an inventory.

• Record the condition of your property on a properly formatted inventory sheet(s) (avoid the temptation of writing on a slip of paper for example — it will only cause you problems later on).

• Be realistic in your descriptions to accurately identify the items to a third party.

Be fair and accurate; listing defects old or new.

• Always take photos with dates – the camera doesn’t lie. Using the classic ‘before and after’ method will leave no room for dispute between you and tenants. Include everything like sinks, baths, toilets, cooker, fridge freezer, carpets, walls and doors. Mattresses are often a problem area so it’s a good idea to supply a protector but be aware that they may well still get damaged.

• If you need to carry out a post occupancy clean then make sure you keep all relevant receipts.

• Be aware of ‘betterment’ – essentially you cannot charge full price for a replacement carpet if it was into its third year of a five year lifespan. In such a case you could only charge 40% of the new cost (the equivalent of the remaining 2 years of lifespan).

A good inventory does not guarantee your property being looked after better but does substantially help in resolving any arguments should you make deductions from the damage deposit. If you do not take any deposits it is still advisable to carry out your inventory so that you can bring a small claims court action if a tenant causes damage.

The Inventory Details

Each page should be dated and clearly detail the condition, both of the inside and the outside of the property.

Start each room with a description of the fixed items in the room along with any furniture. When listing furniture be very detailed in your description of these.  Be realistic with your recording of their condition too taking into account ‘wear and tear’ and betterment.

• Decorations – state colours and description of wallpaper

• Flooring – state the colour and composition of the floor covering

• Ceilings - state the colour and finish

• Electrical – state the number and type of light fittings and number of power outlets

• Windows and doors – state the type of finish and type of locks etc

• Heating – state the type of heating, fireplaces, radiators, oil etc

• Describe the condition of any gardens in layman’s terms.  Include statues, garden furniture tools etc and state whether the tenant is responsible for garden maintenance, if not covered in the tenancy agreement.

• Record any garden sheds or outbuildings and garages

The Inventory Declaration

A declaration records all the important safety elements of the Inventory check covering valid and appropriate certificates required for the property such as:

• Gas safety

• Electrical

• Chimney flu sweep

• Smoke/Co alarms

• Fire alarm

• Extinguishers/blankets

• Burglar alarm

• PAT testing

The declaration should be signed and dated by both landlord and tenant.

Check-in / Check-out report 

This forms part of the Inventory and is a way for verification and proof of the 'state of play' at the tenancy start and end. Each of the areas and items mentioned above will be recorded on the Inventory twice, once at 'check-in' and once and 'check-out'. The tenant is left with a copy of the Inventory at the start of the tenancy and the landlord should retain the original as this will be needed at the check out stage, ie. the tenancy end.

If there are any changes that occur throughout the duration of the tenancy, these are agreed and signed by the landlord and recorded on an additional page and added to the Inventory.

Further details on inventories and templates are found in the Landlords Toolkit for ELA members.