Carrying out an inventory before your new tenants move in is one of the smartest ways to protect your property as a landlord. It gives you a clear, detailed record of the property’s condition from day one, making it much easier to avoid disputes down the line.
Inventories are very valuable when it comes to returning the tenancy deposit. If you need to deduct costs for damage beyond normal wear and tear, a well-documented inventory gives you the evidence to support your claim.
In this guide, we’ll break down why inventories matter, what makes a good one, and even how to tell the difference between damage and normal wear and tear.
- What is an inventory?
- Why are inventories important?
- What happens when tenants move out?
- The difference between damage and fair wear and tear
A proper inventory means fewer headaches later, giving you peace of mind from day one. Buy Inventory
What is an inventory?
An inventory, also known as a schedule of condition, is a detailed record of a rental property’s condition and contents at the start of a tenancy.
It includes written descriptions and photographs of key areas such as walls, floors, fixtures, appliances, and any furnishings (if provided). It also records any existing damage or wear and tear, the standard of cleaning, and important details like meter readings.
It’s best to do one before tenants move in, as having them in the house makes it harder to pinpoint when any damage occurred.
Why are inventories important?
A lot of landlords think an inventory is just a simple checklist – jotting down what’s in the property and noting any marks or damage. Some even see it as an unnecessary extra.
But here’s the truth: a good inventory is your best defence against costly disputes. No matter how well tenants care for the property, some wear and tear will most likely occur.
While that’s expected, tenants are the ones responsible for breakages, missing items, or damage beyond that, as well as cleaning.
They’re also liable for any damage caused by their carelessness, negligence, misuse, or deliberate actions. To resolve these issues, you need a clear record of the property’s condition.
Still not convinced? Deposit protection schemes recommend inventories be done at the start of every tenancy, ideally by an independent professional. Many landlord insurance policies also require an inventory to make a claim.
And just to add, for an average house, an inventory can easily stretch to 40 or 50 pages… hardly light reading, so it’s probably best to leave it to the experts.
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Do tenants need to sign the inventory?
Once the inventory is completed, it’s important to share a copy with your new tenants so they can check it over and sign it.
This usually happens at check-in, when you also hand over the keys. Tenants then have seven days to review it, flag anything they disagree with, and sign to confirm they’re happy with it.
While signing isn’t legally required, deposit protection schemes strongly recommend it to help prevent disputes later on.
Be sure to keep a record of this process. If a dispute arises, you’ll need proof that the tenant received the inventory and had a fair opportunity to review it.
What happens when tenants move out?
When tenants move out, a check-out inspection is carried out to compare how the property looks against the original inventory.
This helps you figure out if any deductions from the deposit are needed for damage that goes beyond fair wear and tear, missing items etc.
A detailed check-out report is then made, with photos and notes on any differences.
If everything looks good, the deposit is returned in full. But if there are any issues, the inventory gives you the evidence to discuss any necessary deductions with your tenants.
Learn how to handle disputes, whether your deposit is protected in a custodial or insured scheme, with our easy-to-follow guide.
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The difference between damage and fair wear and tear
Figuring out what counts as fair wear and tear can be a bit tricky since there’s no strict rulebook. It’s generally seen as the normal, reasonable use of the property by the tenant, combined with the natural effects of time and the environment.
This could include things like curtains fading from the sun, carpets getting worn from regular use, or a few, minor scuff marks on the walls.
It’s important to note that fair wear and tear doesn’t include cleanliness – the property should be returned in the same clean condition it was given to the tenants at the start of the tenancy.
Tenant damage, on the other hand, happens when the property is harmed due to neglect, accidents, or intentional actions. This goes beyond the expected wear and tear. For instance, a carpet may show signs of use, but big stains or tears would be considered damage.
In short, wear and tear is normal and expected, while damage is the result of misuse or carelessness.
