The majority of the inventories presented to deposit scheme adjudicators are not worth the paper they are written on, leading to landlords losing deposit cases, says the Association of Independent Inventory Clerks (AIIC).
Many landlords and agents are failing to present at court thorough and fully detailed inventories, copies of which have been given to the tenant at check-in and check-out. It is imperative that tenants sign their acceptance of the contents of the check-in within 7 days of the move in, and this signed copy should be retained by either the landlord or letting agent.
An unsigned inventory is still acceptable by deposit scheme adjudicators, if it is dated and proof is available that the document has been given to the tenant at time of check in. Tenant deposit schemes recommend that an inventory is compiled by a suitably qualified professional inventory clerk although landlord’s inventories, if they contain sufficient detail, will still be accepted.
Other useful evidence to use in any end of tenancy dispute are contractors invoices for services like professional cleaning of the property, carpets, windows, oven etc or for gardening. Also needed as evidence are receipts for any items purchased specifically for this tenancy.
Pat Barber, Chair of the AIIC, said: “It is so important for landlords to ensure they have all the right paperwork to present to adjudicators. Time and again we see landlords losing disputes because they fail to provide the right evidence to show that a tenant has damaged the property. It should always be remembered that the deposit is the tenant’s property until a landlord can prove justification for any deductions.
“It is vital that there is a thorough and detailed inventory which will enable both parties to be treated fairly and reasonably. The inventory documentation serves a number of vital functions, especially if professionally compiled – including providing a catalogue of the let property, an unbiased record of it condition and any items included in the tenancy. It also forms part of the legally binding contract that is set out in the tenancy agreement between the tenant and the landlord.
“Therefore it is vital to have a carefully prepared inventory at check-in, which can be then used at check-out, to enable an accurate comparison of the property’s condition. Without this documentation, landlords and agents could end up significantly out of pocket. The good news is that if landlords and agents have all the right evidence in place, their chances of winning a dispute is greatly improved.”
According to the AIIC, many inventories are more often than not, completely inadequate, mainly because:
- Landlords and letting agents make the mistake in thinking that inventories can be heavily comprised of photography and video. Completely photographic or filmed inventories without a complete written accompanying report are almost useless. If photography or film has been used in your inventory, make sure it is detailed enough and dated. Include photographs of the garden; interior of the shed or garage; inside of the oven; and keys handed over to tenants – these are the main areas of problems that occur and are often down to misinterpretation at the end of a tenancy.
- Remember, you don’t need photos of every single corner of the property, these are frankly a waste of time and effort (and would be impossible to do) – stick to the important things. Films and photographs alone will be of little use in a dispute when an adjudicator is trying to find hard evidence of a particular area. You can bet the problem in question just won’t be something you have photographed in the first place!
- Many landlords and agents do not carry out a thorough and full check-in and check-out of the property at which the tenant was present. Landlords and agents who don’t have this available when they go to court, have little chance of winning the case.
- Often, no correspondence with the tenant is documented and no receipts are kept for the deductions on the deposit eg cleaning and repairs.
The AIIC is a not for profit membership organisation and is committed to excellence and professionalism in the property inventory process. The AIIC works hard to ensure that all landlords, tenants and letting agents understand the importance and benefits of professionally completed property inventories.
Thanks for this valuable article. I don’t think Landlords take inventories seriously enough.
There is a new app out called Imfuna which is a mobile to web app that allows you to create a very robust inventory, very simply.
It records photographs, video, notes, and also changes dictation to text. It can be incredibly detailed and takes the pain out of doing inventories.
I have no commerical or affiliate arrangement with this company, I am just sharing this, as Landlords could become so much more efficient by using tech products, and could save so much money as a result, but I sense a reluctance to get into the digital age.
I recorded an interview with Chris from Imfuna here http://propertytribes.ning.com/forum/topics/pt-tv-interview-mobile-to-web-inventories-with-imfuna
I also wrote a blog rounding up the neatest tech products for property people
http://www.yulpa.com/blog/round-up-of-the-best-tech-that-helps-property-professionals-be-more-efficient-and-therefore-improve-their-bottom-line/
Comment by Vanessa Warwick — 17/1/2012 #
I do not doubt that having a proper inventory is necessary in today’s market. However, we recently found one of the AIIC’s clerks to be partial towards the landlord who employed that person for a large number of properties. This clerk also fabricated fair wear and tear despite evidence from other property professionals involved to be the contrary. The dispute service are obviously a bunch of desk lackeys who took this clerk’s word for it.
The problem I have is that an inventory clerk does not need to have any professional qualifications nor has any accountability to a regulatory body as other industries in the UK do. So we have seen huge variations on the opinions of inventory clerks, in our experience.
Complaints to both the dispute service and to the AIIC were ignored and obviously there are no other avenues to explore short of court? Hardly excellent, professional and unbiased as Pat has claimed. Essentially, the process can not be seen as uncorrupt and at times can be legalised theft. Why should we all fork out big money for a service that we have no confidence in?
Vanessa’s comment about Imfuna looks interesting – will definitely take a look.
Comment by venys — 17/1/2012 #
The inventories should also include things like ‘smoke detectors’. I also put mention they are ‘tested’ and include battery. Also, things like fitted CO2 alarms.
Often, these are removed by tenants and so the landlord might get the blame.
I also write down ‘no mould’ for paintwork and take photos of bathroom and kitchen ceilings.
This is a good way to protect landlords against local authority prosectution….
Comment by Anon — 18/1/2012 #
It’s a shame members of AIIC don’t comply with this AIIC advice! I have always used AICC inventory clerks but inventoris are never available at check-in or check-out. If you are lucky you may get a copy a month or so later!
Comment by SL — 18/1/2012 #
Excellent idea on the smoke detectors and carbon monoxide alarms Anon.
The ‘no mould’ statement on the ceilings are fine for check-in but a landlord should be absolutely sure that the ventilation provided such as extractor fans are in fact adequate for normal use of the property. We lived in our own apartment for three years prior to renting it out. It was a newly converted terrace house and the fans installed were clearly the cheapest that the developer could find. Subsequently, even with careful use from ourselves, mould build-up was quite extensive. So it would be completely unfair to blame our tenants for the mould in this case. I think it’s safe to assume that developers and landlord’s are not known to spend huge amounts of money on fixtures and fittings – nor necessarily have the appropriate knowledge to design the spaces appropriately. This is evident in the failure of fans in properties that we have lived in where they have been built to sell or built to let.
Comment by venys — 18/1/2012 #
Some great comments but what is the solution?
Hard evidence only comes in one format, look at the experts, the police.
So why is the industry so inclined to produce hard evidence in the correct format rather then still provide what they did before the TDS! It does not make sense other then vested interest in software that has been developed from the old ways!
Police camera action? Or Police camera statement and maybe a still photograph?
Comment by Liam — 19/1/2012 #
[...] the Association of Independent Inventory Clerks (AIIC) has warned that many inventories will not stand up in court because they are not detailed enough to support a landlord’s [...]
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