When you set up a rental property, it’s essential that you get into good property inventory habits from the start. This document is essential for both landlords and tenants, but as a landlord it’s your responsibility to produce the inventory for a tenancy.
Why are rental inventories important?
Rental property inventories are important because they set out both the condition of the property and any fixtures, furniture or appliances that have been included for the tenant.
They are an essential document and need to be detailed, including both descriptions and photographs to show the condition of the property. This is because they are one of the most important pieces of evidence should there be any dispute about a tenant’s deposit.
In fact, the inventory and your supporting photos or documents will be the first evidence that the Tenancy Deposit Scheme asks for should you have a dispute with one of your tenants about how much of their deposit you are going to return.
What is included in a rental property inventory?
A thorough property inventory should include:
- A full description of the interior state of each room in the property.
- A full description of all the fixtures and fittings in your property.
- A full description of the exterior of the property, including any outbuildings or garages.
- A list of the appliances and their functionality.
- The outcomes of smoke and carbon monoxide alarm tests.
- How many keys are provided to the tenant(s).
- Meter readings.
If your property is furnished, you also need to include a list of not only the furniture you leave in your property, but also its condition at the start of the tenancy.
In addition to written descriptions, it is essential to take photographs as part of your inventory. This removes any doubt as to the state of a property when a tenant moves in.
This might sound like a lot of work, which is why working with independent letting agents who are experienced in managing properties and tenancies is a good idea. Your letting agent can carry out the property inventory for you, taking this task off your list.
How often should you carry out an inventory at your rental property?
It’s essential that you carry out a thorough inventory before any tenants move into your rental property. This gives you a baseline from which you can assess damage, should any occur, later in the tenancy.
You will need to carry out a second inventory at the end of a tenancy. However, if you have long-term rental properties you may want to schedule regular check-in inspections at the homes you lease.
Many landlords choose to carry out three-monthly inspections initially, but will often move this to six-monthly if they can see their tenants are taking good care of their property. By setting out the inspection schedule in advance, both you and your tenants can plan accordingly.
Who gets a copy of a rental inventory?
Both you as the landlord and your tenant will get a copy of the check-in inventory. It is best practice to walk through the property with your new tenant and go through the check-in inventory together, room by room.
This gives you both a chance to discuss what’s included and make sure that it is accurate. While not legally necessary, it is also best to ask your tenant to sign the check-in inventory at this time. You can also counter-sign it to show it was agreed by both parties.
