An eye for detail

Buy-to-let author David Lawrenson explains how to create an effective inventory in the wake of the introduction of tenancy deposit protection

Deposits are the main source of landlord–tenant disputes but these can be avoided by doing a thorough inventory.

The introduction of the tenancy deposit scheme last year has made an inventory more important than ever because all deposits on new tenancies must be registered in a scheme.

These schemes have dispute resolution procedures but, without a detailed inventory showing the state and condition of the property and what was in it when the tenant moved in, a landlord may well lose out if there is a dispute.

Landlords should do a detailed inventory or make sure their agent does one for them.

A good inventory document will take time, so prepare it before the tenants move in.

Go round and note each item, right down to such things as towel holders, as well as things like keys and manuals for electrical goods. For, say, kitchen units, ovens and washing machines, describe the colour, make and model. For furnishings, describe the colour, design and type. If you don’t, you risk your attractive dining table being replaced at the end of the tenancy with something inferior.

If a table has one loose leg, then say so clearly. If you just say, “One table – legs damaged” you risk having it back in pieces.

On check-in day, allow time to go around the property with the tenant. Your form should have space for additional comments and both you and your tenant should initial it.

The bottom of the inventory should say: “The tenants have inspected the state and condition of each item on this form and accept and agree that each item is in clean and undamaged order at the time of taking on this tenancy unless noted otherwise on this form.” The tenants should sign this.

At the end of the tenancy, once the tenant has moved everything out, you simply go through the same process again.

If you fix any item that has been noted as being at fault or add something new, get your tenants to sign an ‘update note’.

By going through this process, the tenants cannot argue that the state and condition was anything other than what was on the original inventory and deductions you make for damage can then be supported in the event of a dispute.

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