Anyone who has worked within the lettings industry will understand the importance of a thorough inventory for rental properties.
And when landlords skip this vital step, major issues can occur. If you’re left facing serious damage at the end of a tenancy without the proper reports, you may lose out on thousands of pounds.
We explore the power of inventories by highlighting a recent high-profile case featuring a former pop star and £70,000 worth of damage.
Do I Need An Inventory?
Without a detailed inventory, you could be left having to repair damage out of your own pocket. We’ve created a simple guide on the key components to include and why they’re necessary;
Property Management Inventory Checklist
An inventory report must include the following key components;
- A record of meter readings and keys provided
- The condition and cleanliness of each room, including appliances, fixtures and fittings
- A record of the condition of the garden, including any damage
- A signature from the tenant confirming they agree with the contents of the report
- A record of the condition of the mattresses if fully furnished
- Date & time stamped photos of the property and its contents
It must also include essential safety points;
- A record of furniture and furnishing fire safety labels
- Evidence that the Smoke and CO alarms comply with legislation (working order & correct placement)
- A record of loose or frayed carpets, cracked glass or windows, missing keys and inoperable locks
Check Out Report
In addition to the initial inventory report and schedule of condition that takes place when a tenant moves into a rental property, you will also need a check out report when they move out at the end of the tenancy.
Following the final inspection, the check out report should;
- Include a detailed record of the condition of the property
- Clearly show how the property has changed throughout the tenancy (in combination with the initial check in report)
- Include recommended actions for landlords and tenants
This report provides a vital benchmark to help assess any changes to the property from the start of the tenancy to the end.
If any deposit disputes arise, these reports should provide clear evidence to help landlords get a fair return on any losses or repairs required.
Top Reasons for Tenancy Deposit Disputes
Some of the main reason’s disputes occur include;
- Cleaning 54%
- Damage 49%
- Decoration 31%
- Rent 20%
- Gardening 16%
Dealing with Deposit Disputes
The security deposit taken at the start of a tenancy is considered the tenant’s money. This means that it can be tricky for landlords to withhold the deposit in response to damage or loss without significant evidence.
You will need to prove there is damage to your rental property above normal wear and tear in order to claim on the deposit.
That’s why poorly compiled inventory reports are one of the most common reasons landlords lose disputes.
Tip: Always enter the deposit into a tenancy deposit protection scheme as this is a legally required step!
Celebrity Rental Drama: The Power of Inventories
To demonstrate our point, we’ve got a high profile case study in which a property rental disaster was averted thanks to comprehensive inventory reports.
Former En-Dubz star and X Factor Judge, Tulisa Contostavlos was recently ordered to pay over £70,000 worth in damage to the landlord of her former luxury rental property.
Reported damage to the luxury North London flat included a smashed sink, cigarette burns, stains and doors ripped from hinges. Despite arguing that the damage was normal wear and tear, she was ordered to pay compensation, interest and legal costs to her former landlord.
Key to this case was the presence of a thorough and professional inventory and check-out report.
Clearly, a high rental value is no protection against severe damage, so no matter which end of the market you’re positioned in, covering your back is essential if you want to recover your costs.
Looking for help managing your portfolio of rental properties in London? Find a list of our No Letting Go London offices.
What is Fair Wear and Tear?
It can be problematic working out what is considered fair wear and tear as it differs case by case. Some examples of fair wear and tear include;
- Small scuff marks on walls
- Naturally worn down carpets
- Frayed fabrics
- Faded curtains
- Carpet indentations
However, when we talk about damage this could include;
- Broken locks or doors
- Burn marks or large carpet stains
- Holes in the walls
- Broken windows or furniture
- Poorly painted walls
One of the easiest ways to determine the difference is by commissioning a professional inventory clerk to visit the property and make a detailed report, including photographic imagery at the start of the tenancy.
How To Protect Your Rental Property from Damage
There are a few more steps you can take to protect your rental property;
Regular Property Inspections
Target Long Term Tenants
In addition, targeting long-term tenants who are more likely to treat the property as their home will help to avoid intentional damage.
Keep it Simple
Keep decoration simple and ensure your property is thoroughly clean at the start of the tenancy to avoid any future disputes.
Avoid the Risks with A Professional Inventory Service
You’ve heard the warning, now it’s time to cover your back. One of the easiest ways to protect your investment as a landlord or letting agent is to commission a professional inventory company to undertake comprehensive inventory reports and checks.
Our independent inventory clerks across the country are experienced at providing essential reports, checks and visits to help you stay protected from move in date up until the end of the tenancy agreement.
To find out how we could help, browse our list of professional property inventory services to get started.
Thinking of investing in London rental property? There are plenty of benefits for landlords, including high demand from a wide range of tenant groups and convenient access to quality tradespeople and property services.
Buy-to-let in London can offer great rewards, as long as you’re clever about where you invest. We explore why investing in London property is worth the risks and how to protect your investment for the long term.
The Advantages of Being a London Landlord
Thinking of becoming a London landlord? Here are some of the benefits you can expect;
- High rental demand
- High demand from student renters
- High demand from professional tenants
- Reliable flow of tenants
- Wide range of properties
- Wide range of tenant groups
- Wide selection of tradespeople, letting and estate agents and property managers
- Access to quality inventory clerks and services
- Rewarding rental yields in certain areas
Is Property in London a Good Investment?
There has been a lot of debate recently around whether investing in the UK property market is still a safe investment. Despite some instability in the London property market due to Brexit uncertainties and recent changes to stamp duty and tax relief for landlords, there are still many factors that make London a good opportunity for property investment.
High Rental Demand
For one, it is unlikely that the demand for rental properties in popular areas of London will decrease significantly in the long term as London remains a hub for many industries.
With a large number of students and young professionals, London offers a wide range of tenant groups to target.
Shorter term, Brexit uncertainties have been putting off first time buyers from taking the plunge- increasing the demand for rental properties further.
Opportunity for Capital Gain
While some property prices in central London have experienced dips, central London prices are now on the rise and there are plenty of up and coming areas marked for big property development projects. By investing in areas likely to experience long-term price growth, you are well placed to earn impressive capital growth when you decide to sell.
Where is the Cheapest Place to Buy in London?
House prices vary significantly from each London borough. According to Homes&Property, some of the cheapest areas to buy in London in 2019 include;
- Barking and Dagenham – average house price £300,518
- Bexley – average house price £341,784
- Newham – average house price £365,182
- Croydon – average house price £365,931
- Havering – average house price £375,014
- Sutton – average house price £382,607
- Hounslow – average house price £395,734
- Enfield – average house price £396,908
- Hillingdon – average house price £399,639
- Greenwich – average house price £411,492
However, the purchase price isn’t the only factor to consider when searching for an investment property.
If you’re looking for buy-to-let, the location’s desirability to your target tenant is just as important as getting a good deal. If you can’t find tenants to fill your property, you risk losing money. That’s why it’s equally important to consider factors such as transport links and the proximity of schools and shops to assess the risks and return.
In addition, looking at rental yield data is essential in order to calculate your return on investment.
Best Buy to Let Areas in London
When looking for the right location to buy to let, London has a few hotspots that still offer impressive rental yields.
Totally Money’s Buy to Let rental yield map provides valuable data when searching for the most profitable postcodes. Here are some of the top buy to let areas in London according to the map;
- E12 in East London including Manor Park, Little Ilford, Alderbrook, Newham and Redbridge have a 6.04% average yield.
- SE17 in South East London including Walworth and Newington has a 5.75% average yield.
- IG11 in Barking has a 5.59% average yield.
- Romford is home to several top performing postcodes including RM9, RM8,RM6 and RM10. Find property inventory services in Romford here.
- SE11 in South East London including Kennington and Vauxhall has a 5.12% average yield.
- SE28 including Southwark, Lewisham and Greenwich has a 5.00% average yield.
- N18 in North London including Upper Edmonton, Edmonton and Enfield has a 4.92% average yield.
How Do I Buy My First Investment Property?
Once you’ve decided that becoming a London landlord is right for you, there are several steps you need to take;
Choose a Location
Decide on the right location, taking into account your budget, target tenant and the rental yields in the area.
Find a Buy-to-Let Mortgage
To start the buying process, you will most likely need to apply for a buy-to-let mortgage. Our guide on buy-to-let-mortgages provides helpful information on the different types of mortgage available and how to choose the right one, as well as tips and advice on the process.
Protecting Your Investment
Decided to become a London landlord? Our No Letting Go offices throughout London are home to dedicated and experienced inventory clerks ready to help you on your journey.
From inventory reports to check in services, we can provide professional support to help manage your portfolio.
- Property inventory services in Stratford & Newham, East London
- Property inventory services in Greenwich, South East London
- Property inventory services in Southwark, South East London
- Property inventory services in Enfield, North London
- Property inventory services in Bromley and Bexley
- Property inventory services in Croydon
- Property services in Sutton
To explore our full list of offices, search our branch pages to find property inventory services near you.