Advice for UK landlords – Inventory and schedule of Condition

From 6 April 2007, new legislation requires that all deposits taken for assured shorthold tenancies in England and Wales must be protected by a tenancy deposit protection scheme.

At the end of the tenancy the two parties must agree on the whether the deposit should be returned in full or if some or all of it will be passed to the landlord to cover dilapidations etc. If there is any dispute over this, then firm evidence of the condition of the property and its fixtures and fittings will be required from the landlord.

The best way to provide this evidence is via a thorough inventory and schedule of condition with accompanying photographs.

Carrying out a thorough inventory requires a detailed eye and a logical approach. A letting agent or professional inventory clerk will be able to provide this service. However, with practise, you will be able to produce an adequate document.

Recommended process:

• Walk around the whole property once to remind yourself of the layout (assuming you do not currently live there).
• Record all the major features and common details i.e. “all windows are white PVC double glazed”, “all walls are plain painted magnolia throughout”.
• Stand in each room and record everything in a logical and progressive way. Starting with the flooring and moving up and around the room recording all fixtures, fittings, décor approximate age and the condition of each item noted.
• Record the location of any meters, fuse boxes and stop taps if not already known.
• Record any specific damage such as a stain on a carpet or scratch on a piece of furniture in detail e.g. large red wine stain 20 centimetres in diameter approximately 1m from the lounge door.

Details are important. It is not enough to just state that there is a sofa in the lounge. You need to describe, the age, colour, pattern, size and any marks or damage. If you were unfortunate enough to get a dishonest tenant that stole the furniture and replaced it with cheaper items, you would find it difficult to prove without a detailed description.

Although you will be obtaining the tenants signature on the inventory, it is also a good idea to take photographs of as much of the property as possible. Photos tend to be a record of the inventory, rather than the condition, as the condition of the paint on a wall or the carpet will not show particularly well in a photo. However, photographs are great for recording details that are hard to describe, such as particular patterns and colours on curtains or sofas etc, and provide fairly irrefutable evidence if the unfortunate events described in the last paragraph occur. It is also possible to record damage that is already there such as stains and scratches on items, which will protect the tenant’s interests.  

It is also useful to record the utility meter readings on the inventory so that the tenant signs that they have witnessed the meter reading on the day they move in.

I would recommend that the inventory is laid out in columns with the items on the left, a column for the “condition at check in” on the right and “condition at check out on the far right”. The same document can then be used to check the tenant out at the end of the tenancy.

At the check in, walk through the inventory with the tenants and have them sign a suitable box on the last page agreeing to the current condition. Also have them sign copies of all the photographs.

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