Whether you’re a landlord or a tenant, a property inventory report is useful for both parties and helps avoid any disputes either during or at the end of a tenancy agreement.
A property inventory report is usually handled by the letting agent, and essentially outlines the overall condition of every part of the property, including walls, flooring, electrical appliances, plumbing, and fixtures & fittings such as curtains where applicable.
The report is completed at the start of the tenancy and again at the end, to check whether any damage/malfunctioning items were there at the start of the agreement or if they have happened during the tenancy. It is often advisable to have an assessment carried out during the tenancy period (known as a mid-term inspection) too, in order to avoid any nasty surprises should the tenant move out at the end of their contract.
Let’s look at the top reasons why you should have a house inventory carried out on your rental property…
1. Provides a fair assessment for both Landlords and Tenants
An inventory report gives both parties an understanding of the current condition of the property. The report will be clear and unbiased, meaning the tenant cannot be blamed for any pre-existing defects, and the landlord cannot be blamed for any damage that has been caused by the tenant.
It is essential to have an inventory report carried out as part of the check-in process, to prevent any misunderstandings about the property’s condition before the beginning of the tenancy.
2. Reduces the chances of disputes during the tenancy
Disputes between landlords and tenants often stem from disagreements over the property condition, damages, and repairs that are needed (and who should pay for them). It is in the interest of both parties to avoid disputes, which is where inventory reports prove invaluable.
A dispute is less likely to arise if an inventory report has been done at the start of the tenancy, as both parties will be aware that an assessment has been carried out on the property, and the condition evidenced.
This means the chances of either a landlord or tenant lying or trying to pass the blame is much less likely to happen.
3. Can be used for reference, should a dispute arise
If for any reason either a landlord or a tenant does bring damage into dispute, the letting agent can bring up the original inventory assessment to resolve the matter by proving whether the damage was there before or not.
Having regular inventory reports (mid-term inspections) as well as the more common check-in reports and check-out reports, is hugely beneficial for this reason. It means the condition of the property has been recorded at numerous stages throughout the tenancy, which helps better determine when damage was caused.
By choosing an experienced and professional Property Inventory Specialist such as Arnold Inventories, you will have detailed reports with supporting evidence, to avoid any confusion and bring resolution to the conflict.
If you are unsure what to look for in an inventory company, ask for an example inventory report, as this will give you a good indication of how detailed your report will be, before committing.
4. Proves who is responsible for any repairs
Similarly to reason 3, an inventory report will help you determine who is responsible for paying for any damage repairs. If a dispute was to arise, the report can be cross-referenced with the tenancy agreement (a separate document).
This clear documentation helps determine responsibility for repairs, protecting both parties from unjust claims and ensuring that repair costs are assigned appropriately.
5. Acts as a legal document
A well-prepared property inventory report can serve as a legal document in tenancy-related disputes. Hopefully it won’t come to this, but should a dispute get taken to the point of legal action, inventory reports are invaluable.
The original property inventory (check-in report) can be used by both the landlord and tenant to prove their case, by seeing if the damage was pre-existing or not. This can then be used in legal proceedings to support claims for damage or deposit deductions.
6. Aids in recovering repair costs
It can be near impossible for landlords to recover repair costs from past tenants after they have moved out, if they don’t follow recommended steps during the tenancy. A detailed inventory allows landlords to more easily recover the costs of repairs, in the case of damage caused by the tenant.
Landlords can use the report to justify deductions from the security deposit or to seek reimbursement for repairs.
7. Sets the standard for how the property should be maintained
This is beneficial for both the landlord and the tenant, since the check-in report is typically an inventory report as well as a record of condition.
If there is damage to the property and its contents at the start of the tenancy agreement, this will have been outlined in the property inventory report.
Should the landlord choose not to have these things repaired before the tenant moves in, then it is reasonable for the tenant to assume the current condition is deemed satisfactory by the landlord.
Similarly, if the initial report shows the property and its contents in pristine condition, then it is reasonable for the landlord to expect the tenant to maintain it in such a condition.
8. Clarifies what’s considered wear & tear
Providing a clear understanding of what is expected over the course of a tenancy helps to prevent disputes later down the line. This includes defining the difference between damage, and unpreventable wear and tear of the property.
A detailed property inventory report will help distinguish the difference between what is considered fair wear and tear, and what is deemed to be considered unreasonable damage. This will go hand in hand with the tenancy agreement, which should also set expectations of what is needed from both parties to maintain a positive landlord-tenant relationship.
9. Makes the end of tenancy check-out process easier
The original property inventory report can be brought up at the end of the tenancy agreement, during the check-out process.
By having a formal report already in place, it ensures both the landlord and tenant know what is expected at the end of the tenancy.
It can be used in conjunction with a new end of tenancy report to assess the state of the property and contents, with any new damage being highlighted and differentiated from any existing damage at the start of the agreement.
10. Assists Letting Agents
Letting agents will typically have a structured approach to how they manage any properties within their portfolio. A formal document, such as a property inventory report, will aid them in their job and enhance their service to both landlords and tenants.
It provides a reliable basis for managing properties, handling disputes, and ensuring compliance with rental agreements. By offering a high level of care and professionalism through detailed inventories, letting agents can build trust and improve their reputation.
Frequently Asked Questions
Should tenants sign an inventory?
Both tenants and landlords should sign the inventory, as it shows they are both in agreement with what the inventory report says and that is a fair assessment of the current condition of the property. It should also be signed by the person who carried out the report, should they need to be contacted if anything comes into dispute between the landlord and tenant.
Is an unsigned inventory valid?
Who pays for an inventory, tenant or landlord?
Protect your investment with an expert property inventory report from Arnold Inventories. Contact our team today for more information.