How To Prepare An Inventory - Uk Residential Landlords

The most essential thing about preparing an inventory is to adopt a system that is simple so that it is easily remembered and replicated. This will ensure that you achieve consistent results. In developing your system ensure that the inventory it produces is:

* Ordered - this way when preparing it you are less likely to miss things and also that anyone reading it can easily follow the contents.

* Comprehensive - remember this will be the document of reference should a dispute a rise and could potentially end up in front of the judge

* Verifiable - its accuracy can be agreed by anyone with few or nil additions or alterations.

* Written in Plain English - so it is easy to read and understand. This will help should the case go to court when a clearly written unambiguous report will have more credibility than one where a tenant could claim that they were unsure what they were signing. This shouldn’t be a defence but judges are only human.

The best way of producing inventories that achieve the key points given above is to divide any property into a series of rooms. This is largely straight forward; for instance most properties will have a kitchen, lounge, bedrooms, etc. However you will also have to categorise some parts of the property as a room such as hallways, a conservatory, gardens, garages, etc. Once you have established a list of these rooms; it is then a case of subdividing them into a series of component parts. These component parts once categorised will build up an overall framework.

The standard component parts used in the Property Hawk inventory are as follows:

* Doors

* Floor

* Walls

* Ceiling

* Light fittings

* Wood work

* Appliances

* Windows

* Heating

* Electricals

* Furnishings

As well as the standard component parts each room may have individual parts specific to that room; these must also be noted down. Once all these parts have been recorded, the next stage is to record items that are not fixtures or fittings. This is particularly important and time consuming where a property is furnished. In this case it will be necessary to note down every item supplied. Once this is done; you will have a complete inventory.

The next stage is to complete what is known as the schedule of condition. This can be carried out concurrently with the inventory. The object of the process is to note down the condition of each component part.

For example, in the case of the lounge under the component part of doors you would record the fact that there are two doors, newly white painted with chrome handles. This part of the process is particularly important because as I go on to discuss later it is disputes over the condition of items and what is ‘fair wear and tear’ that are the most common. This aspect is far more difficult to prove than the removal of an item and it is fair to say that judges will often side with the tenant unless the landlord can prove conclusively that it was new or in good condition. This highlights the importance of retaining receipts not only for tax purposes but also in case of a disagreement with your tenant resulting in arbitration or court action where you will then have to prove the condition of your property at ‘handover’.

Many inventory clerks use a series of abbreviations to speed up the process. This is fine providing that a full list of terms accompanying the inventory. Whilst abbreviations are useful they can also be confusing for the tenant who will need to verify the report once it is completed.

The important things to ensure are:

* That there is an adequate description of each item so that they can be verified

* That an accurate statement of condition accompanies each component item

You should avoid at all costs ambiguous language such as ‘spotlessly clean’ or emotive language so as ‘lovely fireplace’. Keep descriptions brief and factual.

If you follow these guidelines then you should end up with a comprehensive written inventory and schedule of condition that will then cover you for all eventualities.

The ‘check in’

The check in occurs at the point that the tenancy has been agreed and the landlord is in a position to hand over the keys. It is the process by where the tenant and landlord / agent who should have a fully prepared inventory / statement of condition will need to agree the cleanliness of the property as well as confirm the details of the inventory. The process involves a tour of the property. Where there are discrepancies between the original inventory then these should be noted down. Once an acceptable copy has been drawn up the landlord and tenant must sign and date it to acknowledge that the document is a fair representation of the facts. The inventory then forms part of the terms of the tenancy agreement. When photos are involved they need to be signed and dated or referred to as a clause in the tenancy agreement. (see previous sections).

Mid term inspection

The mid term inspection is one carried out by the landlord or their agent approximately halfway through a tenancy to ensure that the property is being maintained. Generally it is a short visit and the landlord or agent should use the agreed inventory to cross check the property that an unreasonable amount of damage has not occurred and that the property is being cleaned. It can also be a useful way of the landlord finding out about any small problems with the property which the tenant has failed to report. In this way the landlords should be in a position to take pre-emptive action to tackle an issue before it gets too serious. The first mid term inspection is also a way of the landlord checking on the tenant and making a judgement as to whether they are happy for the tenancy to continue or whether they wish to proceed to issue a section 21 notice requiring possession.

The ‘check out’

This is the final stage of any tenancy and the point when the benefits of having a well prepared inventory become apparent. It may be that many months has elapsed since the start of the tenancy which means unless you are blessed with a photographic memory the original condition of the property at the time of the ‘check in’ is likely to be ‘hazey’ at best. You should arrange to meet the tenant at the property to go through the inventory and check its’ condition at the time that they are ready to move out. Ensure that you allow yourself plenty of time to conduct a thorough inspection. Use a copy of the original inventory to note down any item of damage or cleanliness. Be careful to make accurate and thorough notes as these could form part of your case should a dispute a rise and go to court or arbitration.

Identifying substitute items

I’m afraid it is not uncommon for tenants to swap some of the smaller items of supplied furnishings (curtains, lampshades, pillows, for example) for their own. I don’t have a problem with this as long as the tenant then puts back these items at the end of the tenancy. What you don’t want is that the tenant swaps their ‘rubbish’ with your good stuff. This is why it is so important when preparing the inventory to
fully describe each item, quoting colour size, model and serial numbers where possible
even code mark your items with say a unique indelible mark.

Identifying extra items

Gaining unwanted ‘stuff’ is sometimes more of a problem than loosing items or having them replaced by inferior goods. My experience particularly with students and sharers is that tenants can use moving as an opportunity to discard their unwanted belongings. I’m sure that they think that they are being very generous and if you are an avid ‘car booter’ it can provide a continuous supply of delightful ‘bric-a-brac’. I’m not and it is very time consuming and expensive to get rid of items; particularly larger ones such as furniture and appliances. Local authorities will generally take large domestic items away for a small fee of about £15; but why should you have to organise and pay for the removal of somebody else’s rubbish! I did have recently a case where a tenant left their car. Look out in particular for stuff being left in the cellar, attic and garage. These are all convenient hiding places often used by tenants. My advice is, don’t agree the ‘check out’ until the property is ‘completely’ cleared to your satisfaction.

One thing to note is that it is not necessary for the tenant to be present when the ‘check out’ is being compiled. Some landlords or agents actually prefer this to be the case because it allows them to concentrate on taking accurate and unbiased notes without having to answer directly to the tenant. The completed ‘check out’ statement can then be posted out to the tenant or a subsequent arrangement can be made to meet them to go through it if there are any areas of disagreement. Otherwise the tenant can post a signed copy of the ‘check out’ statement back. The downside to this two stage approach is that it is more time consuming as it requires that the landlord or agent have to make an additional journey to meet the tenant should there be any disagreement. My advice would always be to agree the ‘check out’ at the property and on the day the tenant moves out. This way you are also more likely to get a signed copy of it back; than if you have to rely on the tenants remembering to post it to you. If the tenant does refuse to sign on the spot insisting on more time to consider the form, then this could be a warning that they will contest your statement. This should prompt you to make sure that your descriptions are completely accurate and that all evidence is gathered and verified.

One thing to note is that it is not necessary for the tenant to be present when the ‘check out’ is being compiled. Some landlords or agents prefer that this to be the case because it allows them to concentrate on taking accurate and unbiased notes without having to answer directly to the tenant. The completed ‘check out’ statement can then be posted out to the tenant or a subsequent arrangement can be made to meet them to go through it if there are any areas of disagreement. Otherwise the tenant can post a signed copy of the ‘check out’ statement back. The downside to this two stage approach is that it is more time consuming as it requires that the landlord or agent have to make an additional journey to meet the tenant should there be any disagreement. My advice would always be to agree the ‘check out’ at the property and on the day the tenant moves out. This way you are also more likely to get a signed copy of it back; than if you have to rely on the tenants remembering to post it to you. If the tenant does refuse to sign on the spot insisting on more time to consider the form, then this could be a warning that they will contest your statement. This should prompt you to make sure that your descriptions are completely accurate and that all evidence is gathered and verified.