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A landlord’s inventory should list all the contents of a rental property and document the condition of the property itself and each item. Designed to monitor the condition of the property/items before a tenant moves in and just before a tenant leaves, so it can be made clear what damages, if any, need to be paid for.

Preparing an inventory

The Landlord, Letting Agent or an Independent Inventory Clerk should prepare the Inventory which should be agreed with the tenant on move-in day. The Landlord/Agent and tenant(s) should sign the Inventory and initial every page to signify agreement. It is recommended that  valuable items such as cookers and washing machines should be photographed, so there is no question of their condition.

The final inventory check at the end of tenancy

Ideally, on move out day the landlord should do a final inventory check. The inventory must be checked and agreed with the tenant before the deposit being returned.

It’s imperative that the inventory is checked immediately before the tenant leaving, so there can be no argument about any damage occurring after the tenant has gone. The deposit should only be handed back within 7 to 14 days if there are no outstanding issues when the inspection is complete.

What happens if items have been damaged?

If there’s a general consensus between the parties on what has been damaged, then estimates should be drawn up for repairs/replacements. The tenant should be informed of all the costs in writing and amounts of deductions from the deposit.

If the deposit doesn’t cover the amount needed to carry out the repairs, an invoice itemising all costs involved for additional payments should be sent to the tenant. If the tenant is insured, this evidence should be provided for the insurance company.

What if the parties Cannot Agree?

If the parties cannot reach agreement as to which items have been damaged, the severity of the damage, the repair or replacement costs etc, then great care should be taken in:

• recording the state and condition with photographs
• obtaining estimates and repair or replacement costs
• informing the tenant/landlord in writing

Disputes over these matters may eventually need to be solved through arbitration by a third party – most usually, the Small Claims Court.

If you need to create an inventory visit

A landlord’s inventory should list all the contents of a rental property and document the condition of the property itself and each item. Designed to monitor the condition of the property/items before a tenant moves in and just before a tenant leaves, so it can be made clear what damages, if any, need to be paid for.

Preparing an inventory

The Landlord, Letting Agent or an Independent Inventory Clerk should prepare the Inventory which should be agreed with the tenant on move-in day. The Landlord/Agent and tenant(s) should sign the Inventory and initial every page to signify agreement. It is recommended that  valuable items such as cookers and washing machines should be photographed, so there is no question of their condition.

The final inventory check at the end of tenancy

Ideally, on move out day the landlord should do a final inventory check. The inventory must be checked and agreed with the tenant before the deposit being returned.

It’s imperative that the inventory is checked immediately before the tenant leaving, so there can be no argument about any damage occurring after the tenant has gone. The deposit should only be handed back within 7 to 14 days if there are no outstanding issues when the inspection is complete.

What happens if items have been damaged?

If there’s a general consensus between the parties on what has been damaged, then estimates should be drawn up for repairs/replacements. The tenant should be informed of all the costs in writing and amounts of deductions from the deposit.

If the deposit doesn’t cover the amount needed to carry out the repairs, an invoice itemising all costs involved for additional payments should be sent to the tenant. If the tenant is insured, this evidence should be provided for the insurance company.

What if the parties Cannot Agree?

If the parties cannot reach agreement as to which items have been damaged, the severity of the damage, the repair or replacement costs etc, then great care should be taken in:

• recording the state and condition with photographs
• obtaining estimates and repair or replacement costs
• informing the tenant/landlord in writing

Disputes over these matters may eventually need to be solved through arbitration by a third party – most usually, the Small Claims Court.

If you would like more information about creating a landlord inventory visit
http://www.propertyinvestmentproject.co.uk/blog/property-inventory-form/

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Experts are all predicting that VAT rates will rise to at least 20% in the very near future. Although this may have only marginal impact on larger VAT registered landlords able to offset the increased cost, what about the small self financing landlord?

With prices cut to the bone by many builders and white goods suppliers it is expected that the full 2.5% increase will be passed onto customers. The VAT increase could add considerable cost to major building projects and property refurbishments.

Landlords who are not VAT registered could save £1000’s by bringing forward major purchases to avoid the impending VAT increase. The slowdown in construction could also provide landlords with even greater savings as building firms cut quotes to win business.

Property experts comment that landlord with long term finance in place or who are lucky enough to be cash rich can increase property portfolios at a bargain price and beat price increases by bringing purchases forward.

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Becoming a landlord can be a great opportunity to build a secure financial future or enable you to cover the overheads on a property you cannot sell. Before looking for tenants you should ask yourself the following questions to check you are able to let the property and it is the best course of action for you.

Before becoming a landlord

1. Ask yourself – Can I let my property? Any person who has a mortgage on or is not a freeholder will need to secure obtain written permissions before they are able to rent out the property. Conditions may be imposed such as requiring potential landlords the property to purchase an appropriate landlord insurance cover. Also you may be required to pay a higher rate of interest on any mortgage on the property to be let.
2. Should I – use a managing agent to handle the property rental or be a more hands on landlord?
3. Do I – need to comply with any legal obligations before letting the property such as Gas Safety Check or HMO licence.