Property Inventory: Why is it so important?

Property Inventory, why are they so important?

What is a property inventory?

Tea property inventory is a catalog of the property and its contents. A condition program is a condition record. Typically, the two are combined into a single report and are called the property inventory or schedule of conditions. This essentially protects you and your tenant.

The inventory/status program has several functions:

• It is a catalog of the property that is being rented.
• Record the condition of the property and any items that are included in the lease.
• It is part of the legally binding contract that is established in the lease between the tenant and the landlord.

Why is it important to prepare a property inventory?

For years, when it comes to inventories, homeowners have gotten away with writing a few notes on a piece of paper about the condition of their property. The general principle is that an exact inventory is not needed. BUT after the 6th April 2007 Lease Deposit Scheme, that is no longer the case, the deposit money is protected and insured and therefore you MUST have an accurate inventory (and signed by your tenant) if you want to be protected in the future.

It is even more important now than ever to have a carefully prepared inventory at check-in and an accurate record of the properties condition at check-out, otherwise you could end up losing significantly. from your pocket.

Should I prepare the property inventory myself?

Many owners who manage their own properties do their own thing property inventory. Having a well-established pro forma inventory form aids in the preparation process by clearly establishing the key areas that owners need to cover.

However, having a third property inventory employee fill this out for you at check-in and check-out could greatly improve your chances of winning a dispute since an impartial person has completed it. Consider the cost of an inventory clerk versus the potential loss from a dispute. I personally choose to pay the inventory clerk!

Property Inventory: Do It Yourself? Helpful tips

What should I cover in my inventory?

The best way to produce thorough and complete inventories is to divide any property into a series of rooms. This is largely straightforward; For example, most properties will have a kitchen, living room, bedrooms, etc. However, the owner will also have to categorize some parts of the property as a room, such as corridors, a conservatory, gardens, garages, etc. Once you have established a list of these rooms; it is then a matter of subdividing them into a series of component parts. These components, once categorized, will create an overall framework.

The standard components used in an inventory are the following:

• doors
• floor
• Walls
• Ceiling
• lighting fixtures
• Carpentry
• accessories
• windows
• Heating
• Electricity
• Furniture

In addition to the standard components, each room can have individual pieces specific to that room; these should also be noted. Once all these parts have been registered, the next step is to register items that are not fixtures or accessories. This is particularly important and time consuming when a property is furnished. In this case it will be necessary to write down all the elements supplied. Once this is done; you will have a complete inventory.

I have my list, but now what?

The next stage is to complete what is known as the condition schedule. You can do this at the same time you compile your list, but the point of the process is to note the condition of each component accurately and completely.

EG In the case of the lounge under the ‘doors’ component, I would record the fact that there are two doors, freshly painted white with chrome handles, no markings. This part of the process is particularly important.

The important things to make sure are:

• That there is an adequate description of each item so that they can be verified
• That a precise statement of condition accompany each component

Try to avoid ambiguous language like ‘spotlessly clean’ or emotional language like ‘beautiful fireplace’ at all costs. Keep descriptions short and factual. If you follow these guidelines, you should end up with a complete written inventory and condition schedule that will then cover you for all eventualities.