How to create an inventory for rental property?

Creating a comprehensive inventory for rental property is a crucial step in ensuring a smooth and trouble-free rental experience and practicing good residential management. An inventory serves as a detailed record of the condition and contents of your property before tenants move in. It helps protect both landlords and tenants by providing a clear, agreed-upon account of the property’s state, which can be invaluable in resolving disputes over damages or missing items at the end of the tenancy.

In this post, we will highlight the key points to consider when preparing your inventory, including why it is so important and what specific details you need to include.

What is a property inventory?

A property inventory is a detailed and comprehensive record that outlines all the items and features within a rental property. It serves as a complete list and description of everything included in the property that you plan to rent out.

Here’s a breakdown of what a property inventory typically includes:

1. Fixtures and fittings: Permanently attached items like light fixtures and kitchen cabinets.
2. Furnishings: If applicable, all furniture items such as sofas and beds, along with their condition.
3. Condition reports: Descriptions of each item’s condition, noting any existing wear or damage.
4. Photographic evidence: Photos or videos documenting the property’s state and item conditions.

The property inventory is a vital part of the tenancy agreement and can be used to compare the state of the property at the end of the tenancy against the initial record, making it easier to address any issues related to damage or missing items.

How important is it?

A property inventory is very important, protecting both the landlord and the tenant and ensuring that both parties are in agreement from the outset regarding the contents in the property and their condition. Ensuring tenants are kept up to date and arrangements are transparent is crucial for increasing tenant retention.

For landlords:

– Evidence of condition: It documents the property’s state and contents, serving as proof in case of disputes.

– Damage protection: Helps hold tenants accountable for any damage by providing a record of the property’s condition.

– Security deposit claims: Enables landlords to claim against the security deposit for damaged or missing items.

– Asset tracking: Assists in monitoring assets, losses and costs over time.

– Tax and insurance: Facilitates accurate tax reporting and supports insurance claims.

– Efficiency: Streamlines transitions between tenants by reducing the need for last-minute checks.

For tenants:

– Deposit protection: Acts as evidence to support claims for the return of the security deposit if the property is left in good condition.

Can I do my own inventory as a landlord?

Yes, a landlord can create their own property inventory, but it can be time-consuming and requires meticulous attention to detail to ensure accuracy and usefulness in disputes.

To do it effectively:

– Detail and accuracy: The inventory must be thorough and precise, documenting the condition of each item and area.

– Templates: Many templates are available to guide landlords through the process, helping ensure nothing is overlooked.

Given the potential complexity and the time required, many landlords choose to outsource this task to professional inventory reporting companies or estate agents, especially if managing multiple properties.

When do I prepare an inventory?

A property inventory should be compiled at the beginning of a new tenancy agreement ahead of the tenant moving into the property. It should be signed by both the tenant and landlord, becoming an integral part of the tenancy agreement. This inventory serves as a reference for the condition of the property and its contents.

At the end of the tenancy, the inventory is used to assess any damages or missing items, ensuring both parties can address issues fairly based on the initial documentation.

Are inventories mandatory?

Property inventories are not legally required, but they are strongly recommended for protecting both landlords and tenants. While not mandatory, having a detailed inventory helps prevent disputes and ensures fair resolution of any issues related to damages or claims.

Taking the time to create a thorough inventory can be crucial for addressing disagreements and safeguarding both parties during and at the end of the tenancy.

Inventory checklist

A property inventory list should be as thorough and specific as possible including details of the condition of each item. It should contain all contents within the property including structural elements.

An example checklist is below:

Structure, exterior and interior:

Finish (e.g., painted, brickwork) and condition of walls (note any holes, scratches, etc.)

Windows and doors:

Condition of frames, locks and number of keys

Condition of curtains, blinds, etc.

Flooring:

Type and condition (e.g., carpeted, tiles)

Utilities:

Locations and readings of meters

Smoke and carbon monoxide alarms:

Presence and functionality

Lighting:

Number and type of wall switches, bulbs, light shades, etc.

Fixtures:

Permanent items like lights and lamps

Fittings:

Bathroom suites, fitted kitchens, taps, basins, etc.

Bathroom:

Current condition (e.g., check for mould)

Furniture:

Items such as sofas, tables, chairs, crockery, glasses and cutlery

Appliances:

Cooker, dishwasher, washing machine, fridge/freezer, boiler and radiators

Garden:

Condition and any garden furniture

Other buildings:

Sheds, outhouses, garages, including their contents and condition

How to prepare for an inventory

If outsourcing, appoint a reputable inventory reporting company or your letting agent to handle the inventory process.

If managing your own inventory, download a comprehensive product inventory template and perform a detailed inventory audit at the property before the tenant moves in.

Compile a thorough check-in inventory list with detailed descriptions of all items and their condition.

How do you write a good inventory?

To write a good property inventory:

Create an exhaustive list:

– Include every item and detail within the property, from structural elements to furnishings.

Be detailed and specific:

– Provide precise descriptions of each item and its condition. For example, instead of stating a sofa is in “good condition,” note any tears, stains or markings.

Ensure accuracy:

– Double-check all details to make sure the inventory accurately reflects the property’s condition.

Include visual evidence:

– Attach date-stamped photographs and videos of each item to provide clear visual proof of their condition.

Document structural details:

– Describe the condition of walls, floors, windows, doors and other structural elements, noting any existing damage or wear.

Legal compliance

In the case of any disputes, a property inventory list will be invaluable in providing the necessary evidence. To ensure legal compliance and protect yourself in case of disputes, follow these guidelines when creating a property inventory:

Ensure the inventory is signed and dated by both the landlord and tenant.

Include the inventory as part of the formal tenancy agreement.

Provide clear, date-stamped photographs and videos of each item and its condition.

Keep copies of all communications with the tenant, including quotes and invoices for any repairs or maintenance.

Record comprehensive details for all appliances, including models and serial numbers.

Ensure you are familiar with relevant legal terms and responsibilities related to property inventories.

Contact MRI Software

To find out more about how MRI Software is providing residential property management solutions and services to serve the block management, build-to-rent, sales and lettings and social housing sectors, contact us today on +44 (0)20 3861 7100.