Blog: Why you need to get inventory reporting right

When done with a high degree of detail and accuracy, inventory reports can be the difference between successful and unsuccessful claims for landlords. The aim of an inventory report is to document the condition and cleanliness of items in the property at the start of a tenancy which can then be compared to their condition and cleanliness at the end of the tenancy. However, when inventory reports are not completed to a high standard, it makes it difficult for adjudicators to award in favour of landlords.

When making a decision about who to award a dispute claim to, adjudicators can only refer to the evidence provided.

The inventory report is your opportunity to put forward the details to support your case - so get it right from the start. Use this checklist to ensure you don’t miss any critical details when checking tenants in and out.

Five quick tips for best practice inventories

• Photographic evidence – When disputes arise regarding damage to a property, dated photographs at start and end of tenancy allow the adjudicator to assess whether or not the damage in question is worthy of a claim. The condition a property can be left in allows only for fair wear and tear, and not irreparable damages. It is important to note that photographs should be used in addition to and not as a substitute for written reports.
• Extensive details of every area – Good inventory reports outline the specific condition and cleanliness of each area in a property. By doing this, landlords can give the adjudicator clear details about how the condition of a property has changed over time. Vague or brief reports will make it difficult for the adjudicator to be definitive in their decision making, as they must remain impartial during disputes.
• Conduct the inventory report before tenants move in – Best practice for inventory reporting is to complete them before the tenant moves in. Whilst it is recommended to do this early you must ensure the timeframe does not allow for changes to the condition of the property between the time the inventory is conducted and the tenant gains possession. It is important to record the condition and cleanliness of a property before the start of a tenancy. Grading the condition of certain areas/contents, e.g. excellent to poor, can be effective in showing signs of damage deterioration that go beyond fair wear and tear at the end of a tenancy.
• Agree the inventory report with your tenant(s) – After the full inventory report has been completed, the landlord should provide this document to the tenant for them to review and agree. Both parties should agree the condition and cleanliness of the property and its contents and confirm with a signature. This should reduce the chances of disputes at the end of a tenancy. If for any reason you are unable to get a physical signature from the tenant, ensure that you have a clear audit trail showing when the inventory was provided and that the opportunity was given for the tenant to agree to the contents.
• Get the timing right - It is best practice is to conduct the end of tenancy inspection (check-out inspection) with the tenant, after they have moved all their possessions out. This eliminates the possibility that damage could be caused during the moving out process.

How to streamline the inventory process

Fortunately, inventory reporting has come on a long way and it doesn’t need to take the time it once did. Thanks to new technology, like that provided by Inventory Hive for example, landlords can use inventory reporting software to assist in the completion of these reports. The Inventory Hive app comes with a host of useful features including 360-degree photo capture and inbuilt remote paperless workflows for faster and easier check-ins and check-outs. Learn more at: Inventory Hive

Broaden your Knowledge on Inventory Reporting

Tenancy Deposit Scheme (TDS) offers an extensive guide to best practise when compiling inventory, check-in and check-out reports which can be accessed here. The guide goes into great detail on matters such as, what should be included in each report, how to explain your claim and subjective issues including condition and cleanliness.

Further guides can be found via the TDS Lounge along with blogs, publications and the popular #TheAdjudicator which takes you through real case studies involving tenancy deposit disputes. You can also follow TDS on LinkedIn, Twitter, Facebook, Instagram and YouTube to keep up to date with all things tenancy deposits.

NRLA members can join Tenancy Deposit Scheme (previously DepositGuard), a service that provides accredited landlords with low-cost and free deposit protection.

More information 

To access the NRLA's inventories guide click here.