Posts with tag: inventories

Property damage costs landlords £4.5bn per year

Published On: January 5, 2016 at 2:00 pm

Tags: Buy-to-Let,inventories,landlords,property damage,tenants

Latest figures have indicated that landlords in Britain shell out a huge £4.5bn per year to fix property damage caused by their tenants. In addition, rent arrears account for around £900m per annum in costs.

Data from research conducted by TDS suggests that thousands of landlords are faced with property damage at the conclusion of a tenancy agreement. The most-common issues are broken appliances, damage to carpets and unauthorised decoration.

Disputes

According to statistics from the report, damage to property amounts to 56% of all deposit disputes. What’s more, TDS reports that 19.2% of all disputes raised resulted in 100% pay-out to tenants. On the other hand, 19.8% of deposit disputes saw landlords and agents paid out in full. In the remaining 61% of cases, monies were split between the different parties.

Founder and CEO of Imfuna Let, Jax Kneppers noted, ‘many landlords feel tenants are not held to account when damage is caused and that there is little they can do to protect their property. Furthermore, landlords have a poor record in winning tenant dispute cases.’[1]

Kneppers believes however that, ‘this could be changed dramatically if they ensure a few simple procedures are put in place at the start of a new tenancy agreement. For example, ensuring there is a fair contract in place for a new tenant along with a thorough and detailed inventory, will enable both parties to be treated fairly and reasonably. Time and time again, landlords are losing disputes because they’re not providing the right evidence to show that a tenant has damaged the property.’[1]

Property damage costs landlords £4.5bn per year

Protection

Mr Kneppers went on to say that, ‘the best way for landlords to protect their property and avoid a dispute is by ensuring that the condition of the property is fully recorded at the start of the tenancy, with a comprehensive inventory, along with a through check-in and check-out report.

All UK landlords are permitted to provide a detailed inventory to their tenants at the beginning of a new tenancy agreement.

Kneppers concluded by saying that Imfuna Let, ‘work with many landlords and agents who have managed to reduce property damage by carrying out mid-term inspections, supported by a thorough and professional inventory.’[1]

[1] http://www.propertyreporter.co.uk/landlords/property-damage-costs-landlords-%C3%A3%C2%A245bn-a-year.html

The Importance of Inventories

Published On: December 17, 2015 at 3:07 pm

Author: Em Morley

Categories: Lettings News

Tags: inventories,inventory,landlord advice,landlord responsibilities

The Importance of Inventories

An inventory is one of the most important documents you can have as a landlord. They ensure that your property is in a good condition when your tenants move in and that your property is returned to you in the condition it was let in. They are also crucial if a dispute arises with your tenants.

An inventory should be a thorough list of all of the contents of a property, as well as its structure, fixtures and fittings.

Your inventory will of course be longer if you rent out a furnished property – but don’t think you don’t need to spend as much time on it because your property is unfurnished.

All inventories should detail the condition of the property’s: Doors and walls; flooring; windows; utilities; bathroom; kitchen; and outdoor areas, if there are any.

If your property is furnished, all of the extra items you provide for your tenants should be specified and the condition noted. It is advised that you state the brand of each item, so that if a dispute arises, you know how much should be deducted from the tenant’s deposit. Also remember that saying something is in a good condition or satisfactory condition is subjective – instead, detail any damage or wear.

You may choose to compile the inventory yourself, it may be your letting agent’s responsibility, or you could use an independent inventory clerk. Whoever conducts the inspection, it is wise to take photographs with date stamps as evidence of the check.

Create the document before your tenants move in so that they have something to refer to when they look around their new home. Both parties should then sign the document and keep a copy.

At checkout, you should use your inventory to compare the state of the property once the tenants have left. If a dispute arises over deposit deductions, your deposit protection service will use the inventory as evidence.

Remember to expect fair wear and tear, as a property that has been lived in for a period of time will not be exactly the same as when someone new moved in.

But always keep your inventory up to date and accurate – it protects not only your property, but also your goods and money.

Tenants urged to double check inventories

Published On: July 15, 2015 at 12:20 pm

Author: Em Morley

Categories: Landlord News

Tags: inventories,student tenants,tenancy agreement

As a number of student tenancies are coming to an end, tenants, landlords and agents alike are being warned to take notice of inventories or risk losing substantial amounts of money.

The Association of Independent Clerks (AIIC) is urging tenants to check the items listed in the inventory before moving out of a property. Typically the summer months bring a busy turn-over of tenancies, particularly in the student population.

Troubles

A recent study by removal firm Kiwi Movers found that 52% of tenants had experienced difficulty with their landlord when it came to returning deposits at the conclusion of a tenancy agreement. The survey revealed that the most common reasons for some or all of deposits not being returned were:

items missing from the inventory
minor repair work required
cleaning costs
unpaid bills
substantial property damage[1]

Tenants urged to double check inventories

‘Tenants should be issued with a copy of the inventory at the beginning of the tenancy and I urge them all to double check all the items listed at that time and to ensure that all items remain in the property, in good condition, when moving out,’ said Pat Barber, chair of the AIIC. ‘If there is something missing it can often be cheaper for the tenant to replace it rather than for the landlord or agent to do so.’[1]

Barber added that, ‘if both sides of the rental transaction hold up their side of the bargain, the amount of deposit disputes can be kept to a minimum this summer.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2015/7/tenants-urged-to-double-check-inventories-at-check-out