What Makes a Good Inventory?

No matter whether you’re letting a furnished or unfurnished property, creating an inventory is very important. Sometimes called a schedule of condition, an inventory will help to protect the position of both landlords and tenants. It can also provide evidence of the condition of the property at the time it was let.

How to prepare

You should always take care when preparing an inventory. Here are a couple of key things to bear in mind:

• Make a detailed list of all the belongings and furniture provided when a tenant moves in.

• Record the condition of these items, as well as things such as walls, doors, windows and carpets.

• Take your time and never just rely on photos; always accompany a photo with a written description. This will help if you go to dispute over the deposit upon check out.

• Treat the room like a box: walls, floor, ceiling, then focus on the detail within the room. KPR make this easy by breaking the room into several sections, and in the form of a checklist, ensuring that no detail is missed.

How to document evidence

Everyone has their own way of doing this, and its success will likely depend on the amount of time and effort you’re willing to put into it. If you choose to produce your own, we recommend you follow these basic tips:

1. Start from the entrance and work your way through, room by room.
2. Record the overall cleanliness and decorative order.
3. List all the items of furniture and give a brief description of their condition.
4. Aim to take at least four photos of each room.
5. Photograph areas particularly noteworthy or valuable.
6. Do it as close as possible to the tenancy start date.

Point 5 is important. For example, if your oven and hob has just been professionally cleaned, it would be good to take photos as evidence and for it to be marked as professionally cleaned. Equally, think about other areas that have a reputation for creating (and hiding) dirt, such as shower heads and screens, the inside of the toilet, dishwasher, and washing machine.

The more detailed the inventory, the better. For instance, if the inventory simply records ‘four chairs’, and says nothing about whether they match, or about their quality or condition. When the tenant checks out they can potentially leave any random 4 chairs. KPR software will allow you to add as much detail as you wish.

A good practice is to give the tenants a set time frame (7 days is usually sufficient) in which to go through the inventory and note down anything that they don’t agree with. Once returned, make sure that all parties have signed the report and that a copy is kept on file. This can be stated in a clause in your AST, or within the actual inventory report.

When to conduct an inventory

If you’re unable to arrange an inventory for the same day the tenants move in, it’s worth considering pushing the start date back. While some tenants might try and appeal to your better nature to be more flexible on the move in date, landlords still need to protect themselves; it is only really the tenants who stand to gain from anything otherwise.

For example, if the tenants have already moved in, it will be difficult to differentiate between the tenant’s belongings and the landlord’s, vastly reducing the accuracy of the report.

This is most important when it comes to the check-out. If the tenants are checked out before they leave the property, you leave them open to make further changes; if they are checked-out after they’ve left, they might be able to argue that alterations were made since vacating the property. Doing the check-out on the day the tenants hand back the keys is the only way to be truly accurate, and to be sure landlords are not left vulnerable. You can use the KPR back office to schedule your inventories as far in advance as you need to.

Make sure it’s signed and dated

An inventory is a legally binding document, so if it isn’t signed and dated, it’s not worth the paper it’s printed on. Without a signature, there is no evidence that the tenant agrees with what’s been observed. In fact, an absence of a signature will likely suggest that the tenant wasn’t happy with what’s been observed, and that’s why the document was never signed. KPR software will allow you to capture the tenant’s signature either direct on the tablet or via the paper copy of the inventory, and the report is automatically dated.

Using Photos within an inventory

Many inventory clerks will use photographs to document the condition of a property prior to it being let. This is a good idea, particularly if the property contains furnishings of a high value. However, the use of digital photographs is not always accepted by the courts as evidence, so having a written description along with the photos is generally advised. KPR software automatically date and time stamps the photos and embeds them within the relevant section of the report. It allows you to caption each photo, again helping you back-up the written description of the item.

With some properties, landlords and agents are now also taking videos. However, videos have more limited value in terms of dispute resolution as they are much harder to work with.

Why are inventories useful?

A thorough and detailed inventory will help avoid disputes, particularly those involving the return of a deposit. For this reason, it’s worth making sure that you keep all receipts from any work which is carried out during the tenancy.

Remember, that if there is a dispute over the condition of the property, and this goes to court, or a deposit scheme adjudicator, it will generally be your responsibility to prove the claim.

Cost

All too often, landlords will forego an inventory, as it is seen as an additional expense — one that many are unwilling to stump-up the cost for. However, points to remember:

1. A good inventory is effectively an insurance policy, allowing you to reclaim up to the full deposit amount.
2. Even if there’s little change in the property’s condition, a professional inventory can be used for a different tenancy, with any minor amendments noted. KPR saves all data for your inventories, meaning all you need to do is update the descriptions and take new photos.
3. If you have the inventory and check in carried out on the same day, there are savings to be made from a clerk only needing to attend the property once.

Should you need to raise a deposit dispute at the end of the tenancy, providing invoices, receipts, quotes, and estimates of any services rendered or needed, will go far in strengthening your case. Most tenancy agreements will specify that any damaged items should be replaced with a matching or similar article of equal value. However, in some cases it might be necessary to prove just how much that item was worth in the first place.

This might mean holding onto some documentation for the duration of the tenancy, but doing so will bear fruit, should you come to rely on it in the future. For example, it’s useful to retain an invoice if your property was professionally cleaned at the beginning of the tenancy, especially since a professional inventory clerk will ordinarily record this and confirm sight of it.

Remember, an adjudicator is looking for evidence as to why your deductions are justified, so providing an estimate or quote from a professional in the field will help them come to a decision in your favour.

---

How proptech can help

More agents are investing in property habitation software for benefits that go beyond inventory reporting, which can save time and money for everyone involved and provide confidence that properties are fully FFHH covered – a small price to pay for an invaluable return.

KPR provides habitation software to ensure peace of mind and helps towards the smooth running of a letting agent’s portfolio, and includes:

• Professionally presented information sheets bearing your company branding offers tenants the tools to ensure that their upkeep of the property is sufficient.
• Automated scheduling and reminders, such as certificate expiration dates, and testing for smoke detectors and CO monitors, ensure every detail is covered.
• Offers tenants the ability to conduct their own Midterm report, saving agents time and minimising visits. 
• Secure storage for date and time-stamped documentation and certificates.
• Simple communication between agent and tenant, all in one place.
• Our automation software with reminders ensures that you stay compliant, so you never miss a deadline, and certificate renewals will never be overlooked.
• Our software features a tenant portal with exclusive access to direct communication between tenant and the managing agent and swift repairs reporting using a unique QR code for their property.

KPR has packages that will suit all different size clients from small independent to the larger corporate agencies.

At KPR we understand the demands of the industry and strive to address the issues agents and property owners face. We have our own in-house development team with knowledge of modem technology and methodologies, which keep KPR software current, and always focusing on the next level.

If you would like to speak with us about how we can assist you and your business. feel free to speak with our helpful team today!

0208 542 2333

hello@kpr.global