Does an inventory really make a difference to deposit claims?

Does an inventory report really help landlords in a deposit dispute?

Richard Abbots of Inventory Hive explains how the answer isn’t as clear cut as some would think, and offers advice to landlords to help them avoid or resolve future tenancy disputes.

Often, there’s a perception that completing inventory reports for each property and each new tenancy takes too much time, and that the benefits aren’t always worth the effort. Many landlords wonder if these reports can stand up to the scrutiny of an adjudicator when it comes to the crunch.

The short answer is a resounding yes! It is worth the effort (and it really doesn’t need to be that time-consuming, either). An inventory report is the strongest evidence you can present in a deposit dispute case. The adjudicator handling the case needs to see a ‘before and after’ to assess any change in the property beyond wear and tear. There is no better benchmark document. It’s your proof.

However, the long answer to whether inventories can save the day in disputes isn’t quite so clear cut.

Inventory reports aren’t all made equal

This is because inventory reports aren’t all created equal. It all comes down to the detail.

The Tenancy Deposit Scheme (TDS) reports that cleaning tops the list of reasons why deposit disputes occur. It’s not surprising. What one person deems as clean may not be another’s standard of clean, which results in a disagreement. Secondly, cleaning can be difficult to quantify – especially when the tenant is expected to return the property to the condition they found it in when they moved in. Thirdly, thorough cleaning is hard work, and professional cleans cost money. The list goes on.

This is where an inventory report steps in to clarify, at best - or confuse and disappoint, at worst.

If you take shortcuts with your inventory reporting, each room will probably have a quick tick stating whether it’s clean or not. Job done – although it isn’t.

Alternatively, if you took the time to capture specific detail, that inventory would also detail the points about cleaning the eye can’t see. It would mention odours and surface stickiness (or lack of them), notes on how recently the property was redecorated or recarpeted, and whether there was a professional clean before the tenant moved in (preferably with details from the cleaning company). It would refer to the furnishings, curtains, walls, floors and joinery.

You can see quite easily how the claim could go in either case.

The adjudicator can’t make a decision based on who says what, or perceptions. They can only adjudicate based on facts – or lack of them.

If the landlord has fully documented the cleanliness of the property at check-in in the inventory report, it leaves little room for dispute. For that reason alone, the disagreement probably won’t even end up with the adjudicator. An inventory can stop a potential claim in its tracks and resolve the issue with the tenant before it gets that far.

If you’re left feeling that detailed inventory reporting looks like too much work, here are a few things to weigh up:

1. The time it takes to resolve disputes is more than you think. Resolving disputes can take up to a week – and that’s just from the time the dispute is officially lodged with the deposit scheme’s adjudicator. It doesn’t take into account the time already spent in negotiation and communications (or break down of them) with the tenant, wrestling with differing opinions and misunderstandings. It also doesn’t consider the time it takes to hunt down evidence, paperwork and past communications. How does this compare to doing an inventory?
2. You could be hit with unexpected or unfair costs if you can’t prove your case, leaving you out of pocket.
3. Tenancy delays can occur while disputes are outstanding, which can have a knock-on effect on costs, admin and future tenancies.
4. Poor inventory reporting can affect your tenant relationships, trust and reputation.
5. There are ways to speed the whole process up significantly. Automated inventory applications can do many of the time-consuming aspects of inventory reporting and inspections for you and save hours (literally) in capturing all that detail. They even remind you what you need to audit and report on. Alternatively, you can outsource the inventory reporting to a third party. Download this free guide to learn about the advantages and disadvantages of outsourcing your inventories. 

Inventory reports are nearly always called on as evidence in a tenancy deposit dispute. Make sure you have one, and that it includes the detail you need to avoid unnecessary costs, delays and claims. Learn more at Inventory Hive.