Inventories can save landlords cash

Thursday 23 February 2017

As letting becomes an increasingly expensive business, landlords could save themselves cash – and annoyance – by paying for a professionally and independently compiled inventory.

And as mortgage interest tax relief is cut and management costs potentially rise after the Government's ban on letting agent fees charged to tenants, the Association of Independent Inventory Clerks (AIIC ) says an inventory is ‘a simple and relatively inexpensive step’ which could save landlords ‘a lot of money over time.’

Patricia Barber, chair of the AIIC, said: "It's clear that while the PRS remains a strong investment option - with high tenant demand and the opportunity to generate strong yields - Government intervention in recent years has made the prospect of being a landlord more expensive.

“That's why it's so important that landlords make sure they cover themselves when it comes to property damage caused by tenants.”

The AIIC says that a signed, completed and agreed inventory – which comprehensively lists the condition and contents of the property - should be a minimum requirement at the beginning of a tenancy.

An inventory helps to confirm the condition of a rental property and subsequently make clear any deposit deductions that need to be made.

"Landlords who do not have a comprehensive inventory available at the end of a tenancy could therefore make it extremely difficult for themselves to claim back funds for damages and lost items,” Ms Barber added. 

She also warned that not providing an inventory ‘could prove damaging to the long-term future of a landlord's investment’ – particularly during a period when ‘letting property is becoming more expensive and complicated.’