The Importance of Inventories and Mid-Term Inspections for Private Landlords – Top Tips

Since the introduction of deposit protection legislation in 2007, the rental market has increasingly focused on tenant rights and the need for landlords to provide clear evidence in disputes. For landlords, a thorough inventory and mid-term inspection can prove essential in protecting their investments. This article will discuss why inventories and inspections are so important and some simple tips for making sure they are as detailed as possible.

The Significance of Inventories

An inventory is essentially a detailed record of a property’s condition and contents at the start of a tenancy. Whilst they have always been important, inventories have become even more critical since the introduction of the Housing Act 2004, requiring that all deposits collected by a landlord, or their agent, be registered in either a custodial or insurance-based scheme.

Where an Assured Shorthold Tenancy is entered into after the 6th of April 2007, this should be registered with a government approved deposit protection schemes, such as MyDeposits, The Deposit Protection Service (DPS) or the Tenancy Deposit Scheme (TDS). The deposit should be registered with one of these services and the necessary prescribed information provided to the tenant within 30 days of funds being received.

Whilst these services provide security and peace of mind to the landlord and tenant alike, they often require clear evidence when resolving disputes. A well-prepared inventory, especially if confirmed by the tenant at the start of the tenancy, allows landlords to provide a detailed description of the property’s condition before the tenancy began. It can therefore serve as strong documentary evidence in the favour of the landlord when the scheme looks at settling a dispute and returning some, or all, of the deposit.

Inventories and inspections can also be important tools for establishing legal compliance. They can help landlords their regular obligations by providing an opportunity to carry out smoke alarm checks and right-to-rent assessments. In the case of an insurance claim, a detailed inventory serves as proof of the property's condition before any damage occurs and helps to clearly establish the impact of an incident on the property or its contents. With tenancies becoming longer, they can also help landlords monitor the property’s condition over time, particularly in shared or communal spaces where changes can occur more frequently

As such, an inventory clearly needs to be as detailed as possible. Our top three tips below should help maximise the impact of your inventory and help make the report as valuable as possible:

1)??? Include both pictures and a written description: Modern inventories are expected to contain a wealth of information. While pictures can be helpful, they should ideally be accompanied by clear written descriptions. Relying solely on photographs can lead to misinterpretations especially if the item in question is not clearly depicted, so the combination of written documentation and supporting images can be crucial. Where photographs are included, they should ideally be time and date stamped. Some inventory companies will even provide a video inventory service.

2)??? Try to agree the inventory with the tenant when they move in: A poorly executed inventory at the start of a tenancy can result in disputes with the tenant, who may argue that certain items were not cleaned to an acceptable standard or were already in disrepair when they initially moved in. Having written confirmation or a signature from the tenant confirming the condition or description of the goods before they moved in can help prevent this and serve as evidence when resolving disputes. Equally if the tenant does not agree with the inventory, this can be a useful exercise for identifying why and preempting a point of conflict before it escalates. If the tenant does not agree with the description does this mean that there is an item of disrepair which needs fixing, something is missing from the property, or you simply disagree on how the description should be worded? The inventory provides the opportunity to find out.

3)??? Inventory the Whole Property: When carrying out the inventory it can be easy to focus on more significant goods such as the Television or any furniture, but it is just as important to include any and all minor furnishings as well. The landlord or their agent should adopt a room by room approach documenting each and every item within before the tenant moves into the property. The more detail the better, you don’t want damage to occur to an item only to realise it was left off the initial inventory and you have no proof as to its previous condition.

Why Mid-Terms Matter

Mid-term inspections during the tenancy are just as important as the initial inventory. These inspections enable landlords to identify maintenance issues early, preventing them from escalating into costly problems. Regular inspections ensure the property is being well cared for and give landlords the chance to address any breaches of the tenancy agreement, such as unauthorised subletting or damage.

Conducting regular mid-terms can not only be more cost-effective than fixing escalating repairs, but also serves as continuing evidence of the property's condition over time. Any changes made during the tenancy, such as repainting or installing new carpets, should also be documented in the mid-term report alongside any relevant receipts. This ensures that any modifications are recorded accurately. If the changes are particularly significant, landlords can also consider creating a supplemental inventory to reflect the updated state and value of the property.

Documenting the property’s condition during mid-term inspections also reduces the risk of disputes at the end of the tenancy, as they provide an ongoing record of wear and tear. Furthermore, these inspections offer an opportunity for landlords and tenants to communicate openly, addressing any concerns that may arise and maintaining a positive relationship throughout the tenancy instead of addressing everything at the very end. Sending the mid-term report to the tenant is crucial for identifying any potential issues before they arise. It is essential to ask tenants to review and agree to the report, as this helps establish a mutually agreed understanding of the property's condition.

Documenting this communication process is equally important. If a tenant later claims they never received the inventory or report, the landlord being able to produce correspondence providing this to tenant would serve as strong documentary evidence

While tenants cannot be forced to sign the document, sending a copy that includes a requirement for them to raise any concerns within a specified timeframe helps provide evidence that the landlord is being proactive in the maintenance of the property. A timeframe of approximately 7 days allows tenants a reasonable period to identify any issues, ensuring they are not unfairly burdened by tight deadline right after moving in or having an inspection.

To make the most of their mid-term inspections, the landlord or their agent should:

1)??? Schedule Regular Mid-Term Inspections: This consistency not only helps maintain the property but also reassures tenants that their living environment is being maintained and is a priority for their landlord. Regular communication can also help landlords identify any potential cause for concern if their tenant is continually rescheduling or refusing regular inspections.

2)??? Clear Communication: Inform tenants in advance about inspections and encourage them to share any concerns. Open dialogue can help build trust and mitigate potential conflicts before they begin.

3)??? Document Everything: Keep detailed records of all communications, inspections, inspection requests, receipts, and inventories. This documentation will be invaluable if disputes arise as it provides a clear evidentiary timeline of events and conditions.

Pre-Checkout Inventories

Conducting a pre-checkout inventory is essential for confirming the condition of the property before a tenant vacates. Ideally, this process should occur shortly before the tenant leaves, allowing for a mutually agreed assessment of the property's condition. Engaging with the exiting tenant about a month before their departure not only sets clear expectations but also facilitates open communication, which can help potential disputes from escalating further.

Our top 3 tips for checkout:

1)??? Use Consistent Language: Using the same format and language when referring to the property and its contents can help identify any changes that have occurred during the tenancy. Ambiguous language could make it harder for the deposit holder to reach the correct outcome and return the deposit accordingly.

2)??? Scheduling: Try to arrange the check-out inventory at a convenient time for all parties. This can help determine any areas of disagreement before the tenant vacates the property and potentially becomes more difficult to contact.

3)??? Detail detail detail: Include as much information as possible. The property should be left in the same condition as it was in at the start of the tenancy. Photographs can provide a useful comparison tool when reviewing any potential changes or damage to the property. The check-out also provides a useful opportunity to record final meter readings ahead of any new tenancies or moving into the property yourself.

Conclusion

For landlords, conducting detailed inventories and regular mid-term inspections is essential in today’s rental market. These practices not only help protect property investments and ensure compliance with legal obligations, but also foster stronger relationships with tenants, reduce disputes, and safeguard against costly repairs or claims. By remaining proactive and organised, landlords can create a more positive renting experience for everyone involved.