Third party inventory companies: the professional service
Introduction
This article will be useful reading for all landlords, tenants and agents. It outlines the importance of a well-prepared inventory and how having one professionally conducted can ease the strain and ensure it is done to a high standard.
It is in both parties’ interests to ensure that inventories are prepared. If worst happens, you could end up in court. In this case, the judge will tend to look more favourably on an impartial, unbiased inventory prepared by a third party unconnected to either the landlord or the tenants. Inventories prepared by landlords could be viewed as biased and one-sided.
Additionally, there are provisions under the Housing Act 2004, relating to a Tenancy Deposit Scheme which make it even more critical to obtain an inventory.
How it works
A well-prepared inventory protects landlords and tenants.
At the start of the tenancy, the company, or you if you are doing it yourself, will make an accurate description of the condition and contents of a property. The condition of the property and its contents at the end of the tenancy is then compared back to this report in the form of a check-out report. The inventory clerk will also provide an opinion on whether any damage that has arisen during the tenancy is attributable to the tenants, to ‘fair wear and tear’ or to the landlord as required maintenance.
Why use a third party?
Detail - Items are detailed as fully and clearly as possible for our inventories to minimise disputes at the beginning and end of the tenancy
Report - Reports and documents look professional and are prepared quickly. This maximises your time and peace of mind and ensures that both parties take their responsibilities seriously.
Photos – Third parties are usually more experienced at taking the right sort of images required should dispute at the end of the tenancy. They are also likely to have better equipment to capture obvious damage or valuable / antique items. While not sufficient evidence alone, photographs can provide further clarification to comments in the reports.
More time – using a third party gives you peace of mind to concentrate on other matters.
Records – the company will usually scan and electronically store copies of all relevant Inventory paperwork – meaning you will always have quick access to any past inventories should you need them.
Court - Judges are more likely to favour an unbiased inventory prepared by a third party than an inventory prepared by the landlord.
What do they do?
There are usually three parts to an inventory service:
Inventory report
The third party lists of all the furniture, fixtures and fittings in a property, together with a detailed description of the decorative order and condition.
Check-in report
The third party prepares a report at the start of a tenancy detailing the decorative state of the property and reflecting any changes that have occurred to furniture, fixtures and fittings since the original inventory or previous check-out report was prepared.
Check-out report
The third party prepares a report at the end of the tenancy, describing changes to the property since the check-in report was prepared. This report will also detail whether, in the clerk’s opinion, any damage or required cleaning is attributable to the tenant or to the landlord (i.e. fair wear and tear or maintenance).
Some third parties also offer a min-term check:
Mid-term check
The third party prepares a report to give managing agents / landlords a comprehensive look at the condition of the property during the course of a tenancy.
Relevant Net Lawman document templates: