How to create an inventory in rental property

Making an inventory for rental property before the tenancy agreement starts is imperative. This practice protects your investment by recording the condition of the building and contents within the property at check-in. The document can then be compared to the state of the property at various points during the tenancy. It’s also important to use when the tenant vacates, and the landlord completes the checkout procedure.

The property rental inventory helps resolve disputes around security deposits and protects landlords from unfair claims of damage or missing items. It will also benefit and protect the tenant from unfair claims. So, how should you go about making an inventory for rental property? Let’s find out.

Why is a property rental inventory list so important?

Having an inventory helps prevent deposit disputes when the tenancy comes to an end. Landlords should organise a checkout inspection when the tenants leave the property.

The checkout inspection should be conducted as soon as the tenants vacate the rental property. The current condition of the remaining items is meticulously compared to the initial conditions documented in the inventory. This process allows for a clear and objective assessment of any changes that may have occurred during the tenancy. 

If there is a dispute regarding the deposit, the inventory list for rental property supports the landlord’s claims. This is because it provides concrete evidence for determining whether any deductions from the deposit are justified due to damages or excessive wear and tear beyond what is considered reasonable.

When should a property rental inventory be created?

Before a new tenant moves in, a new property rental inventory should be carried out to protect the landlord and the new tenant from deposit disputes at the end of their tenancy. Regularly updating it prevents any previous damages from being incorrectly blamed on the new tenant. 

When the tenancy ends, and a checkout inspection is performed, the property’s current condition will be compared with the inventory records. If disputes arise from the findings of the checkout report, the landlord and/or tenant must have evidence to support their claims, which you’ll find in the inventory and check-in report. Without this, it would be very difficult to make a successful claim.

When taking a deposit, you will need to register it with the tenancy deposit scheme (TDS). The TDS is in place to protect the tenant, but it can also benefit landlords. They offer an alternative dispute resolution service which is a free, independent adjudication at the end of the tenancy.

If you and your tenant do end up disagreeing about any deductions, landlords can use this service. If you have an inventory list for rental property, you will be more likely to be successful in your claim.

Is a signature needed on a property rental inventory?

It is strongly advised that both landlord and tenant sign the inventory list for a rental property at check-in. This mutual agreement helps prevent future disputes by confirming that all parties have reviewed and acknowledged the accuracy of the document.

What to include in an inventory list

A comprehensive rental property inventory should include a room-by-room list of all fixtures, fittings, appliances, and furniture, along with their condition and any existing wear and tear. It is also wise to include meter readings so these are documented.

It’s advisable to take photographs or videos to supplement the written descriptions. This process not only protects the landlord’s interests, it also provides clarity for tenants if they are unsure of the status of the item in dispute at the start of their tenancy.

For high-value items, consider using professional inventory services to ensure maximum protection. The detail provided by professional services is crucial. It can significantly impact the outcome of any potential claims in the future.

Can I update my inventory list?

Keeping your rental property inventory up-to-date is crucial. This means documenting any alterations made to the property, whether it’s a major renovation like removing a wall or something as simple as a new coat of paint.

Documenting changes

• Photographs: Take dated photographs of the changes made. These serve as visual evidence of the property’s condition at a specific point in time.
• Invoices and receipts: Keep all invoices and receipts related to the work carried out. These documents provide proof of expenditure and can be useful in case of disputes.
• Updated property rental inventory list: Revisit the inventory list after any changes and update it accordingly. Both landlord and tenant should review and sign the amended list.

By diligently maintaining an updated inventory, you can ensure a clear and transparent record of the property’s condition throughout the tenancy, minimising potential conflicts and protecting the interests of both landlord and tenant.

Even if you have an inventory for your rental property, it is advisable to secure landlord contents insurance. This will further protect your items and investment. To compare landlord insurance quotes, contact us at 01788 818 670 today to find out more, or get a quote online.