A property inventory is just one step in successfully letting out a property. An inventory might not seem important when there are many other things to do, such as maintenance, referencing, and organizing security deposits. It can save you time, money, and hassle if you have a detailed process and report. Continue reading to learn everything you need about property inventories.
What is a Property Inventory?
A property inventory is used in lettings, and it’s a detailed report listing the contents and condition of each room in the house. Photographs are often used to support written information. They include furniture, fixtures, fittings, marks on walls, floors, doors, and cleanliness of particular rooms.
Every tenancy begins with property inventories. These reports can be done by landlords, letting agents, or third-party inventory clerks. You can have a simple or detailed report about every room, and the report’s core information will remain the same.
Are Landlords Required to Supply a Property Inventory?
The UK does not require landlords to keep inventories at the beginning or end of a tenant’s tenancy. It is highly recommended that you provide inventories at the start and end of a tenancy. We’ll discuss these reasons below. If you don’t provide one, your tenants can make their inventory.
If the tenant does this, they may ask you to sign and check their inventory. This will indicate that you are happy with its contents. They can request that you sign the inventory if you refuse to do so. A property inventory, which covers more details, is in both parties’ interests. It’s best to make one yourself at the beginning of each tenancy.
Why are property inventories important?
Both landlords and tenants can benefit from detailed, high-quality property inventories. This inventory serves as proof of the property’s current condition at the beginning of a tenancy and greatly reduces the chance of any disputes.
You will have an inventory and photos to show the property at the start and end of your letting. This will allow you to resolve any problems quickly. Without an inventory, disputes can quickly turn into a case between you and theirs. This will not only prolong problems but also can lead to costly disputes.
Do You Need to Outsource Property Inventory Management?
There are many companies out there, including ourselves! Companies that specialize in checking in and taking inventory reports. Although it is possible to do check-in and check-out reports on your own, professional inventory services offer many benefits. Let’s look at some of these benefits.
Consistent Reports
A trusted property inventory company will ensure that all reports are of the same quality, which allows you to provide consistent and high-quality services to your clients. This also allows you to save time and money on training new staff to do what you love best: managing properties. You can manage multiple properties or work with different clerks in the company, and all will be held to the same standards.
Get detailed reports
The inventory clerks have been specially trained to identify what to look out for so that their reports are as thorough and detailed as possible. They will go beyond the basic information and include details about small fittings and fixtures that the untrained eye may overlook. Most companies will usually provide a sample report before you begin working with them, and this will give you an idea of the quality of service you will receive.
Quick Reports
Property inventory company clerks can provide quick turnarounds due to their experience and training. This is a great way to save time and allow your tenants to move quickly. This means that your tenants will be less inconvenienced, and you will need to put in less effort.
Accessible Reports
Many companies offer easy access to your reports online, and this provides a central hub that keeps all details about your lettings safe. You will often find additional services within this hub that can make the process simpler, such as bookings and payments. This online system is convenient and provides security, so you don’t have to worry about losing your data.
Impartial Reports
Property inventories are immune to bias when done by a third party, and they can also be used in court if necessary. This is unlikely to happen, but outsourcing will ensure that you are well-prepared in case of any problems.
It can be easier to obtain property inventories from outside, making it easier to apply for the tenancy deposit security scheme to make a deduction. Unlike reports done by agents or landlords, completed reports are not biased.
How are property inventories calculated?
Property inventories can be done once you have found a tenant, but they have yet to move in. The process involves walking from one room to another with a checklist, noting all items within the property. You must also note any damage, including minor scratches, cleanliness, and whether everything works as it should (like the taps or hob). Photos are often taken simultaneously to accompany the written reports.
Each company’s inventory report will be different. Some reports will be completed by hand and then scannable onto a computer, and others will be submitted online. While some reports will include a detailed description of each item, others will use numbers or traffic lights to indicate the condition. After the report has been completed, both the landlord and the tenant are required to sign it and keep it.
What happens at the End of Tenancy?
After a tenant moves out, the inventory is repeated. To determine if there are differences between the reports, the final inventory is compared to the one taken before the tenant moved into.
You can use the damage beyond normal wear and tear to reduce the security deposit. The tenant can either accept or reject the decision. A detailed report and accompanying photos can be extremely valuable in this situation.
Conclusion
Property inventories are an essential part of the lettings process and should be done for every tenant. While it is up to you to decide whether to conduct your own property inventory or hire a professional inventory company, there are many benefits to outsourcing the task.
