Would you let your property without taking a deposit? For most landlords this is out of the question. But without a good property inventory, this might as well be the case: it means that, should there be any deductions when the tenants move out, landlords are completely at the mercy of their good will and nature to put right any damages. The tenant has all the control.

But landlords shouldn’t think that simply compiling a document is enough. Nine times out of ten, a property inventory that’s not watertight will prove inadequate if a deposit dispute is raised.

That’s why we’ve created this guide to help you along the way. Whether your property inventory is compiled professionally or whether you choose to do it yourself, these steps will let you know what to do to make sure you’re always protected.
Know the difference between a property inventory and check in, and check out

Property Inventory
This is a document that observes a property’s condition in its entirety. A good property inventory will span some 20+ pages, contain a wide selection of photos, and brief descriptions. There will usually be a glossary of terms to help explain what these descriptions mean. If it’s thorough, it should record the general cleanliness of the property and its decorative order.
Check In
This is the process whereby the tenants are shown around the property to check that the observations recorded in the property inventory match the property’s actual condition. It provides an opportunity for the tenants to note any discrepancies in the report, allowing them to request changes. The tenants should sign and date the document to confirm they’ve checked the property inventory and agree that it’s a true record of the property’s condition as at the beginning of the tenancy.
Check Out
Similar to a check in, only this happens at the end of the tenancy. When the new observations have been recorded, they will be compared with the content in the original property inventory. This helps establish whether any damages or alterations have been caused by the tenants, and whose responsibility it is to rectify them. The report should also be signed and dated by the tenants.
DIY v Professional inventory - the differences
Professional Inventory
There are a number of benefits in having an propery inventory compiled by a professional, third party supplier:

The workmanship is generally much better.
If a deposit dispute is raised, an independent adjudicator will likely lend more weight to an inventory that’s been compiled professionally.
If you use members of APIP (Association of Professional Inventory Providers), they are designed to stand up to the toughest levels of scrutiny.
A third party supplier can be relied upon more so to produce an inventory that reflects the property exactly as it is.
In exchange for a small fee, you’ll save a lot of time and trouble.

DIY Inventory
If you’d rather save yourself some money, many landlords choose to compile the property inventory themselves. After all, an inventory that’s been compiled by the landlord is better than no inventory at all.

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 do choose to produce your own, we recommend you follow these basic tips:

Start from the entrance and work your way through, room by room.
Record the overall cleanliness and decorative order.
List all the items of furniture and give a brief description of their condition.
Aim to take at least four pictures of each room.
Photograph areas particularly noteworthy or valuable.

The last point is important. For example, if your oven and hob has just been professionally cleaned, it would be unfortunate to remove someone else’s grease and grime at your own expense because it was neglected in the inventory. 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.
Do it as close as possible to the tenancy start and end date


If you’re unable to arrange an inventory for the same day the tenants move in, it’s definitely 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’s 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 actually 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.
Make sure it’s signed and dated
A good 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.
Changing tenancies
Often in the case of sharers, one individual will move out of the property and is replaced by someone else, usually a friend or acquaintance of the remaining tenant(s). In this situation, you need to ensure that the inventory is updated as each tenant moves in or moves out. Any damage created by the vacating tenant needs to be recovered from their share of the deposit, as it would be unfair to expect the new tenant to assume responsibility for the cost of this.
Cost
All too often, landlords will forego an inventory as it’s seen as an additional expense — one that many are unwilling to stump up the cost for. However:

A good inventory is effectively an insurance policy, allowing you to reclaim up to the full deposit amount.
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.
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.

Invoices, receipts, quotes and estimates
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 definitely 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 definitely 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.



Final thoughts…
Compiling an inventory is one of the best ways to prevent a healthy relationship with your tenants deteriorating right at the end; it allows you to avoid disagreements over the property’s condition. While it might seem as though inventories are designed to catch your tenant out, this is simply not the case: it’s a useful document for them to have so that they have something to refer to as the tenancy draws to an end. Your expectations are then always set as to how the property should be returned.

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