Sunday, 16 October 2016

Don't overlook the importance of a detailed inventory when letting a property



For landlords who have spent significant funds on getting their properties in top condition to attract tenants, the last thing they want is to see all that work undone through damage or neglect by the occupier.But, if they fail to take a proper inventory at the start of the tenancy, this is a situation landlords could find themselves in.

The Inventory is a listing of all the contents of a property and a record of the condition of each item. It’s also referred to as a “schedule of condition”. The form is designed to help monitor the condition of the items before a tenant moves in and just before a tenant leaves, so it can be made clear what damages, if any, need to be paid for.

A lack of an inventory, or one that has not been completed to the correct standard, could mean that, if the tenant does damage the property or its contents, the landlord may not be able to withhold the deposit to cover the costs.

Some landlords who let properties unfurnished mistakenly believe that they do not need to complete an inventory because there is very little that can be stolen, broken or damaged.
However, as proper inventories also include details on the condition of a property, such as cleanliness and decor, even the barest of properties should have one.




They may be able to use their landlord contents insurance to claim for lost, stolen or intentionally damaged items, but many property owners insurance policies won't pay out for accidental damage.
As such, it is perhaps no surprise that many landlords choose to use professional services to ensure that the inventory is carried out correctly.

The inventory acts as a legal contract between the tenant and landlord that shows they agree on exactly what was in a property and in what state it was in at the start of the rental period.
Therefore, it must be signed by both parties at the start of the tenancy and initialled on each page. It is highly recommended that tenant attends the check-in inspection but the tenant should also be allowed a period of time to advise you of anything they disagree with or wish to be amended so you should allow them a reasonable time to do so. 

The Property Ombudsman Code advises a period of five days for the tenant to respond with corrections however be sure that if the tenant does not sign and agree the report you have a clear audit trail that shows you have done everything to allow them the opportunity to comment.

It is also advisable to note the readings of the gas and electricity meters to avoid disputes both with the tenant and energy suppliers.

Stacey Wren of First Assist RLS said
"A true inventory is not simply a list of items in a property - it also includes a description of the condition and cleanliness at the start and finish of the tenancy, enabling one to be compared against the other with clarity and accuracy," says Ian Potter, operations manager at the organisation. It is also vital that an inventory clearly defines any terms used for describing condition and that these are used consistently and using a clear scale.

For more information on Inventories and other First Assist landlord services visit www.firstassist-rls.co.uk or call 0800 0830122


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