This is day 14 of my 31 days of tips on tenancy agreements series. To see the rest of the series click here.
What is an inventory?
An inventory (or should be), a detailed description of the property contents and its condition at the time it is let to a tenant. Its purpose is to help prove the landlords case should they wish to make any deductions from the deposit when the tenancy ends.
It should therefore state not only that an item is present in the property, but also its physical condition, in particular if there are any scratches or if it is damaged in any other way. Perhaps a better name for it is a statement of condition.
It should cover not only items in the property but also the condition of the property itself. Such as walls, windows, doors, light fittings etc. After all, if the walls are marked or the window panes are cracked when the tenant departs, the landlord will want to claim against the deposit so these matters can be rectified. If they are not covered by the inventory it is going to be difficult for the landlord to refute the tenant if he claims (for example) that the window pane was cracked when he moved in at the start of the tenancy.
As the whole point of the inventory is to prove the condition of the property at the start in the event of a dispute at the end, efforts should be made to make it as comprehensive as possible. After all, you have no idea what items are going to be in issue later.
Photographs with the inventory
It may also be helpful to have photographs, especially of particularly valuable items (although it is arguable that valuable items should not be left in a rented property at all, except perhaps a very high value one). However you need to be careful with photographs. Many arbitrators say that they are frequently useless. If you use photographs, they should:
- Be sharp and clear i.e. not out of focus
- Have something to show the scale (i.e. a ruler next to a scratch on furniture)
- Be taken with a camera which date stamps the pictures
- Be signed by both parties and dated, to prove that they relate to the property concerned. After all a picture just of a table could be anywhere.
It is very easy nowadays to forge photographs, so you need to be able to prove that these photos are genuine pictures which show the condition of the property and its contents at the time of checkin.
Sometimes a video is also taken, particularly of high value properties, in which case the same principles will apply.
Using a professional inventory clerk
It is becoming increasingly common, particularly where the landlord is managing his own properties, to use a professional inventory clerk. There are two advantages of this.
- The first is that inventory clerks do this work all the time, and therefore they probably do a much better job than a landlord who might only do it once a year.
- The second is that the evidence of an inventory clerk in a tenancy deposit arbitration is more likely to be accepted, as they will be considered more independent than the landlord.
It is therefore often a good idea for a landlord to use an inventory clerk for this work (you can often find one via the Association of Independent Inventory Clerks). Although there will be a charge, this can be shared with the tenant (as it is also for the tenants benefit to have an accurate record).
Provided the landlord and tenant share the costs evenly, this is generally considered fair under the Unfair Terms in Consumer Contracts Regulations. For example tenancy agreements often provide for the checkin to be paid for by the landlord and the checkout to be paid for by the tenant, or vice versa.
If you use an inventory it is good practice to refer to it in the tenancy agreement. There should be two original copies, one for the tenant and one for the landlord, and they should be kept carefully with the tenancy agreement.
Do you have any comments on this section? Do you use an inventory clerk? Have you needed to refer to your inventory at a tenancy deposit tribunal? Do you have any advice for readers on inventories?
NB Read about my tenancy agreements service here.
Related posts:
If an independent inventory clerk is used – is it still required that both parties (landlord and the tenant) need to sign the inventory list that has been created at the beginning of a new tenancy agreement? As a signed inventory list is substantially important during at a tenancy deposit tribunal, can an independently drawn-up inventory list be equivalent to a signed inventory list? Many thanks.
Whoever draws up the inventory, it should be signed by the tenants and either by the landlord or by someone acting on his behalf. If an inventory clerk is used, they will sign on behalf of the landlord.
The fact that an inventory is prepared by an independent inventory clerk does not mean that the tenants should not sign and date it to say that they agree with it.