Protect you BTL assets (Part 2)

Part 2 - Why are Inventories and Schedules of condition important?

Landlords and tenants often dispute who is responsible for damage to a property at the end of a tenancy. This can be a costly affair for both parties in time, money and hassle. However there are some simple rules that can be followed to significantly reduce a dispute arising.
Firstly, what is an Inventory and a Schedule of condition? In its purest form an Inventory is a comprehensive list of all the fixtures, fittings, furnishings and other items included in the property that is to be let. A schedule of condition is essentially a ‘report’ on the condition of the property itself.
To avoid potential disputes it is highly recommended that both an Inventory and Schedule be carried out prior to tenancy commencing and cross checked when the tenancy ends. This is part of what is known as the ‘check in’ and ‘check out’ procedure. The landlord and tenant must agree (and sign to confirm) that the contents and condition of the property are as stated. It is also advisable to take ‘date stamped’ pictures of the property and the contents to support the inventory and schedule - focusing on any particular area’s that are problematic (such as any stains on the carpets, damaged walls, door bell not working etc).
Once the tenancy ends (and the tenant is ‘checked out’), the condition of the property (and its contents) can be checked against the initial inventory and schedule. If any disputes then arise at this stage the photographic evidence can be checked to ascertain whether the damage has been caused during the tenancy period. In my experience, disputes are vastly reduced when using this approach.
If a dispute still arises the deposit claim will be referred to the Alternative Dispute resolution (ADR) service. The ADR service usually finds in favour of the tenant - unless the landlord can prove otherwise. Note also, that a landlord cannot claim against a deposit for ‘fair wear and tear’ and will be expected to prove that the correct check in /out procedures where met, as well as providing evidence of regular inspections. The bulk of this proof comes in the form of the signed inventory, schedule and supporting photographic evidence.
So, to significantly reduce deposit disputes, it is essential for landlords to conduct an inventory and schedule of condition with every new tenancy, ensuring your asset is protected.
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Your questions answered by specialist Letting and Management agent Richard Pennack. Managing Director of iQ Property (Hull) ltd and a member of ARLA. Specialising in Residential and light commercial property Lettings, Management and Investments. Call 01482 240148 or email richard@iqpropertyhull.co.uk or visit www.iqpropertyhull.co.uk