Inventories (Core Subject for Wales Only)
Resources
Introduction
Inventories have always been an important part of seeing in a new tenant. They have come of age with the arrival of Tenancy Deposit Schemes.
They enable landlords to create a situation where the tenant is fully aware that the state of the property at the time of the commencement of the tenancy is fully documented.
There are so many ways of creating an inventory, and we are all so different in the way we think and act, that there are no fixed instructions on how to create the ultimate inventory. However, there are suggestions as to some does and don’ts.
Inventories have always been an important part of seeing in a new tenant. They have come of age with the arrival of Tenancy Deposit Schemes.
They enable landlords to create a situation where the tenant is fully aware that the state of the property at the time of the commencement of the tenancy is fully documented.
There are so many ways of creating an inventory, and we are all so different in the way we think and act, that there are no fixed instructions on how to create the ultimate inventory. However, there are suggestions as to some does and don’ts.
** See Additional Resources for a new Guide on what may be deemed fair Wear and Tear **
Why create an Inventory?
An inventory is simply an itemised list of goods and this is our starting position. An inventory for a tenancy has to be more than just a list and we need to bring in detailed descriptions regarding the list of goods as to age and condition.
The importance of this is the fact that the tenant knows at the commencement of the tenancy, that you have all of this evidence showing the condition of the property at the time of occupation.
An inventory is simply an itemised list of goods and this is our starting position. An inventory for a tenancy has to be more than just a list and we need to bring in detailed descriptions regarding the list of goods as to age and condition.
The importance of this is the fact that the tenant knows at the commencement of the tenancy, that you have all of this evidence showing the condition of the property at the time of occupation.
This will mean that the tenant is more likely to maintain the condition of the property during the tenancy and, at the end of the tenancy, there is unlikely to be any dispute regarding bond charges.
Furthermore if there is any dispute, you have all of the evidence you will need to prove your case.
Tenancy Deposit Schemes and ADR
You will know that there are three Tenancy Deposit Schemes to choose from and that any deposit taken now has to be protected by using one of these schemes. The common factor of each scheme is the alternative dispute resolution or ADR.
You will know that there are three Tenancy Deposit Schemes to choose from and that any deposit taken now has to be protected by using one of these schemes. The common factor of each scheme is the alternative dispute resolution or ADR.
This is the option available to the tenant and landlord in the event of a dispute over any issue connected with the repayment of the tenant’s deposit. It is an alternative to going to court. The landlord and the tenant must agree to use this arbitration service for it to have the authority to deal with the complaint. The findings of the ADR service are binding on both parties.
Each ADR service is similar and each is free to both parties. They all provide an independent body (arbitrator) to look at the evidence provided by the tenant and landlord in connection with any dispute over the retention of all or part of the deposit. The arbitrator will examine this evidence and make a decision as to who will receive the bond monies. This decision will be final. There is no appeal.
The evidence will be paper based. There will not be a requirement to attend any hearing and decisions are expected to take about a month with payment being made within ten days of the verdict.
The landlord’s evidence will usually consist of the tenancy agreement, the inventory and any bills for dilapidation costs including any bill for the purchase of any item allegedly damaged during a tenancy.
There was some thought given to making a provision in the tenancy deposit legislation to dictate the style of an inventory but it was decided that inventories were too diverse to be regulated in their style and content.
Types of Inventories
Written
Generally, a simple listing, usually in a table document which has columns showing the name of the item, the condition when the tenant moved in and the condition when the tenant moved out.
These are easily produced using a word processor but can also be handwritten.
Writing down the condition of every item could be laborious so you could state that generally the condition is regarded as fair unless otherwise stated.
Written
Generally, a simple listing, usually in a table document which has columns showing the name of the item, the condition when the tenant moved in and the condition when the tenant moved out.
These are easily produced using a word processor but can also be handwritten.
Writing down the condition of every item could be laborious so you could state that generally the condition is regarded as fair unless otherwise stated.
Invite the tenant to point out any scratches or dents to any item that should be actually written on the inventory and make the necessary notes.
It is important to take particular note of the condition of any soft furnishings i.e. sofas and easy chairs. Concentrate on the inside of the cooker and the inside of any fridge or freezer.
Photographic
Digital photographs are very good either alone or to supplement your listing. Take several pictures in each room trying to cover all of the room in some way. Digital cameras are now quite cheap and photo editing software is available free on the internet. Serif Photoplus is one that seems to have everything needed.
Remember the purpose of these photos. They are just to show condition and they should just show walls or carpets or furnishings. These are different photos to those used for advertising. Try to picture two walls in each shot so that the wall pictured may be identified.
If you are able to use a word processor, you can easily copy and paste your photos onto paper and print them out for the tenant to examine. Picasa2 is a free download from Google and is perfect for printing inventory pictures.
Have a photo sheet for each room and have the tenant sign the inventory and each sheet of photos. Give the tenant copies for their retention.
They will always know how the place looked when they moved in.
Video
Video cameras are commonly used and can be very efficient. The produced video, together with a commentary, provides a perfect inventory. Make sure that the new tenant is in shot to show that he or she was present. Give the tenant a copy of the video disc.
General Tips
Whatever type of inventory you choose, there is a need to be consistent in your approach. It is good practice to approach each room in each property in the same way.
The first view of each room is the decor. Ensure you describe the colours in each room, i.e.
“ white emulsion painted ceiling, magnolia emulsion painted walls, white gloss woodwork”
Whatever type of inventory you choose, there is a need to be consistent in your approach. It is good practice to approach each room in each property in the same way.
The first view of each room is the decor. Ensure you describe the colours in each room, i.e.
“ white emulsion painted ceiling, magnolia emulsion painted walls, white gloss woodwork”
A frequent argument is one where the tenant has decorated. If the tenant claims that the colour scheme is the same as at the commencement of the tenancy it is only your word against the tenant, unless you declare the colour schemes in your inventory.
Have a pattern for your listing. For example:-
- Look at the ceiling and describe and list the light fittings, then look at the floor and list the type of floor covering.
- Start with the wall which has the door in it and rotate clockwise around the room noting the items standing against the walls. If one of these items is a cupboard or other storage piece, return to it separately to list any contents.
- The biggest inventory room is always the kitchen. If you are providing cutlery and crockery, the inventory can be a nightmare. Do not over supply. If you must provide such items, keep to the minimum. Not more than, say, four of anything.
- List the model types and numbers, at least of the appliances and see that they are clean at the commencement of the tenancy and that you can say so in your inventory. In this way you may have a chance of them being clean at the end of the tenancy.
It is useful to have a cover sheet for inventories. This has some comment sections for the tenant to complete on the day of occupation such as
- What do you think of the property?
- What is the condition of the appliances?
- What is the garden like?
- Are you happy with everything?
- List of keys received at commencement of tenancy
When they have placed their answers to these questions and signed at the foot of the sheet, it is very difficult for them to claim that anything was wrong at the time they moved in.
At the end of the tenancy
When the tenant gives notice, make an appointment to visit about ten days prior to the end date. In this visit, address the tenant verbally, and then write to the tenant, with information of any dilapidations that may cause a charge to the bond. This will be strong evidence to provide to the ADR arbitrator of your assistance if the tenant does not comply.
When the tenant gives notice, make an appointment to visit about ten days prior to the end date. In this visit, address the tenant verbally, and then write to the tenant, with information of any dilapidations that may cause a charge to the bond. This will be strong evidence to provide to the ADR arbitrator of your assistance if the tenant does not comply.
