Research conducted by InventoryBase, a Propertymark Industry Supplier, highlighted that carrying out an inspection can be a daunting and time consuming task for a non-specialist, and increases the risk of an inadequate inventory being recorded.
Two thirds of tenants reported that their letting agent did the inspection, with landlords choosing to conduct it themselves in 26% of cases. 41% of these inventories were conducted on a hand written basis, and 22% of tenants stated that the inventory failed to cover the entire property.
Peace of mind for all parties
In the survey, only 9% of properties had inventories carried out by an expert provider, and most shockingly, 31% of tenants weren’t even asked to sign the inventory once it was completed.
A thorough property inventory provides evidence for deposit deductions if a tenant has inflicted damage to the property. It also gives tenants reassurance that they will not be held responsible for any existing damage, and provides clear guidance and understanding so tenants know what is expected of them when it comes to maintaining the property throughout the tenancy.
Failure to arrange a robust inventory makes it much harder to prove when damage to a property occurred, and who is responsible, increasing the probability of disputes arising.
Find ARLA Inventories Accredited members
ARLA Inventories Accredited members demonstrate to landlords, letting agents and tenants that they meet the highest standards for best practice in the industry.
What is a property inventory?
Essentially, it is a detailed report that documents everything in a rental property, including the property itself. That means every door, wall, skirting board, and window, plus every furnishing. It describes each item and documents its current condition.
It's a standard practice to take a property inventory at the start of a tenancy, just before tenants move in, and again at the end of the tenancy, immediately after the tenants leave.
The primary purpose of an inventory check is to serve as a record of the condition the rental property was in before the tenant moved in, and the state they have left the property in when they leave.
Propertymark professional accreditation
The ARLA Inventories Accreditation Scheme is open to practising inventory professionals who have completed, or committed to working towards, Propertymark Qualifications' Award in Residential Inventory Management and Practice. Membership allows them to provide a strengthened offer to their clients and demonstrate to landlords, letting agents and tenants that they meet the highest standards for best practice in the industry.
We provide comprehensive learning and training opportunities to support members to complete the required 12 hours of CPD each year, which keeps them working at the forefront of the profession.
Resources for members
Our virtual learning events offer a fantastic opportunity to learn from leading speakers on topics impacting the property industry and how to combat them. We also produce easy to read fact sheets and FAQs breaking down legislation highlighting the changes, who it applies to and most importantly, what property professionals need to do.
The burden-of-proof sits with the landlord or managing agent in the event of any unnecessary deposit dispute, so it’s surprising to see how often the inventory process isn’t given the care it needs. That’s not to mention the importance of demonstrating safety compliance issues at the point of check-in, complete with tenant signatures.
Experienced agents and inventory clerks will not only know how to record the prevalent condition/cleanliness information, but they will also identify and flag such safety compliance issues, which is becoming increasingly integral to inventory reports.
An inventory is one of the most crucial tenancy documents that needs to be produced. Recording an accurate schedule of condition of the property is paramount for both the tenant and landlord. By completing them manually you are opening yourself up to human error. Using proptech software to complete these reports, helps to create a detailed report for the property with photos tagged to relevant items, condition, colour etc of items and rooms all recorded. From a landlords perspective if a thorough inventory is not prepared at the start of the tenancy, then any potential claims/deductions will be extremely hard when a tenant moves out as there is no evidence to support these claims.
It isn’t just inventories that are important, midterm inspections MUST be completed during the tenancy to ensure that the property is in good condition and satisfying Fitness for Human Habitation. It is also becoming a lot more common to be a condition of Landlords Insurance and is usually in the T&C’s. for example; If the property hasn’t been inspected every x months during the tenancy then the insurance would be invalidated.
