What is a rental property inventory?

A rental property inventory is a detailed document that records the contents and condition of a property, both inside and out. The inventory should be completed before a tenant moves in, when they move-out, and can also be used during periodic inspections throughout the tenancy. It serves as a written record that can be used to determine any wear and tear or damage that occurs during the tenancy to evidence deterioration, and will be needed for both insurance claims and deposit disputes.

Importance of an inventory and schedule of condition

A comprehensive inventory provides a clear record of the property’s condition at specific points in time, offering protection and clarity for both landlords and tenants.

Since the introduction of deposit protection in 2007, the quality of inventories has significantly improved, as a detailed inventory is essential evidence if you need to make any deductions from the tenant's deposit for damage. If there is a need for negotiation or resolution over the amount to deduct from the deposit at the end of the tenancy, both parties can present the inventory to the deposit protection scheme as evidence.

A thorough inventory helps distinguish between natural wear and tear and actual damage, enabling fair adjudication.

Components of an inventory report

A well-prepared inventory includes a comprehensive list of the property’s contents and a schedule of condition for each item and area. Here’s what should be included:

Detailed descriptions: Each room’s condition and its fixtures, from the paint on the walls to the showerhead in the bathroom, should be described in detail.

Photographic evidence: High-quality, time-stamped photographs should be embedded in the report to visually document the condition of the property.

Exterior condition: A general description of the exterior, including the garden, any outbuildings, garden furniture, and garages.

Functionality of appliances: Check and document the working condition of electrical appliances, bathroom fixtures, and lighting.

Alarm tests: Results of smoke and CO alarm tests are required by law.

Meter readings: Record gas and electricity meter readings with photographs.

Key details: List all keys provided to the tenant and make they are documented.

Creating a check-in inventory

The check-in inventory should be completed just before the tenant moves in, once the property is cleaned and prepared. It’s a good idea to follow a step-by-step process:

1. Start at the front door: Begin with noting the condition of the front door, including the handle and locks.

2. Room by room inspection: Move through the property systematically, noting the condition of doors, ceilings, walls, floors, fixtures, and fittings. Use a standard terminology or a traffic light system for consistency.

3. Photographs: Take detailed photographs of each room and any provided items or existing wear and tear.

4. Exterior areas: Document the condition of exterior areas such as the garden and outbuildings, and take photographs.

5. Time-stamping: Make sure all photographs have a date and time stamp, which can be done automatically with smartphones.

There are lots of inventory templates available online. Total Landlord and the NRLA’s deposit protection partner, mydeposits, has created a free inventory checklist for landlords, agents and tenants to follow to make sure you have covered every area.

Signing the inventory

It’s best practice to walk through the property with the tenant during check-in to make sure they agree with the contents and detail of the inventory. Provide the tenant with a copy and request their signature for record-keeping purposes. Alternatively, email the inventory to the tenant. This will provide you with a digital time-stamped record of their receipt and provide evidence that there is a mutual agreement on the condition of the property at the start of the tenancy.

Conducting inventory checks

While anyone can create an inventory, using a professionally trained inventory clerk is advisable if you are short on time or experience, due to the detailed nature of the task. An independent third party can help make sure the documentation process is unbiased. Managing agents can also arrange for the inventory to be carried out.

Whether you use an independent inventory service or carry out the inventory yourself or through an agent, what is important is that you can evidence that:

• the tenant was provided with the check-in inventory report on moving in and had the opportunity to make any amendments
• the quality, detail and description is good enough to negotiate with at the end of the tenancy if required

As the old saying goes, the devil is in the detail. From a disputes point of view, we will review any inventory but the more detailed it is and the better the quality of photos, the more it stands up as good evidence. In our experience the majority of good quality inventories are carried out using software.

Suzy Hershman, Resolution Department Lead, mydeposits

Professional clerks: Inventory clerks who are members of the Association of Independent Inventory Clerks (AIIC) are recommended as they are trained and experienced in creating detailed and accurate inventories.

Software Solutions: There are various software tools available that assist landlords in creating professional inventories. These tools can help in maintaining consistency and accuracy.

Total Landlord’s deposit protection partner, mydeposits and the NRLA are partnered with No Letting Go, an organisation that can offer both independent inventory services or software for landlords and agents to create their own property reports. Read mydeposits and No Letting Go’s joint guide to inventories which combines their expertise in inventory management and resolution.

Inventory costs

Landlords are responsible for the cost of preparing an inventory. Since the Tenant Fees Act (2019) came into force, landlords and letting agents in England have been banned from charging certain fees to tenants, including the cost of preparing an inventory. This applies to England, Scotland, and Wales, while in Northern Ireland, landlords can directly charge tenants for these costs.

Letting fees are also banned in Scotland and Wales. In Northern Ireland, it remains legal for a landlord to make these charges directly although letting agents can’t charge tenants for any of the costs of setting up a tenancy.

Periodic inspections

It’s a good idea to refer to the check-in inventory during mid-term inspections to note any changes or damage. This helps address issues promptly and make sure there is a clear record of the property’s condition over time.

During mid-term these inspections, bring a copy of the check-in inventory to compare the current condition of the property with its condition at the start of the tenancy. Note any new wear and tear or damage.

Discuss any issues found during inspections with the tenant so that you can resolve them before they become major problems. For more information on carrying out periodic inspections, read Total Landlord’s ultimate guide to inspecting your property.

Check-out inventory

Conduct the check-out inventory after the tenant has moved out but aim to have them present to discuss any damage. The same person or company should ideally perform both the check-in and check-out inventories for consistency. Document all meter readings, cleanliness, and any damage with time-stamped photographs. Here are five top tips for check-out.

5 top tips for check-out: 

1. Scheduling: Arrange the check-out inventory at a convenient time for both parties.

2. Consistency: Use the same format as the check-in inventory to make it easy to identify changes.

3. Photographic evidence: Take detailed photographs of any damage, including using a ruler or measuring tape for scale.

4. Meter readings: Record final meter readings with photographs.

5. Cleanliness: Make sure the property is left in the same condition of cleanliness as it was at the start of the tenancy. Total Landlord’s end of tenancy cleaning checklist for landlords and tenants includes a checklist for you to share with your tenants, to reduce the risks of end of tenancy negotiations and deposit deductions about cleaning.

Distinguishing damage from wear and tear

Fair wear and tear refers to natural deterioration from normal use and is unavoidable, while damage is caused by tenant actions, and can be either accidental or malicious. It’s important to know that wear and tear is not covered by your landlord insurance or your tenant’s deposit, so make sure you budget for repairs, replacements and upgrades over time.

Wear and tear: Examples include minor scuffs, carpet wear, and loose hinges.

Damage: Examples include significant stains, broken tiles, and cracked windows.

Resolution: Clear, detailed documentation and photographic evidence help in resolving disputes.

For more guidance on fair wear and tear, read Total Landlord’s ultimate guide to wear and tear, and watch this video of Suzy Hershman, Resolution Department Lead at mydeposits.

Landlord insurance and inventories

An inventory is not a legal requirement for landlord insurance purposes, but it is beneficial for speeding up any claims for tenant-caused damage. Detailed inventories provide the necessary evidence for both insurance claims and deposit disputes.

Insurance claims: Inventories help in providing clear evidence of the property's condition at the start of the tenancy, which is crucial for successful insurance claims.

Policy understanding: Understand your landlord insurance policy to know what is covered and what is not, especially regarding wear and tear versus damage.

Having comprehensive landlord insurance will cover the costs of making good damage to your property during a tenancy if it is due to an insured peril. But it is important to make sure you have read through the terms and conditions of your insurance policy so that you understand what you are liable for and what the insurance policy will pay for in the event of an incident. Damage caused by wear and tear that happens over a period of time will not be covered. However, our Premier policy offers protection against accidental damage to buildings and malicious damage by tenants and / or their guests, provided that your tenant passed a four-point reference check. Our NRLA guide to tenant referencing provides more guidance on this.

Steve Barnes, Head of Broking, Total Landlord

Checklist for using an inventory

The following checklist summarises the key checks you should make at all stages of the tenancy.  

Before tenant check-in:

Once the property has been cleaned and prepared for the tenancy, make sure you protect yourself and your property by carrying out a robust, detailed and quality inventory.

At check-in:

Go through the inventory with the tenant, ideally walking through the property with them to make sure they agree with the contents and condition as recorded. Alternatively, make sure that you provide them with a digital copy for them to check and report any discrepancies during their first few days.

• Record opening meter readings on the inventory
• Confirm that all keys provided are noted on the inventory and have been signed for by the tenant
• Obtain the tenant’s signature on the inventory or a declaration confirming they have received a copy

During the tenancy: 

Have a copy of the inventory with you when carrying out mid-term or periodic inspections so that you can note any differences, whether deterioration or damage, and discuss with the tenant if necessary to avoid any issues from escalating.

Pre check-out:

Once you have a tenancy end date, best practice is to carry out a pre-end of tenancy inspection with the tenant, so they have every opportunity to make any necessary repairs and carry out the required cleaning before they leave.

At check-out:

• Arrange a convenient time for check-out with the tenant
• Email the tenant a copy of the check-in inventory in advance so they can review it
• Check every room in the property against the check-in inventory for damage and make sure all electrical fixtures and appliances provided are still working
• Take photographs of all damage and any areas that have not been properly cleaned
• Record final meter readings and note them on the check-out inventory
• Make sure all keys issued at the start are returned
• Email the tenant a copy of the finalised check-out inventory with photographs
• If any end-of-tenancy costs are proposed for damage or cleaning, and negotiation is unsuccessful, send all inspection reports to the adjudication provider as evidence, along with details of your claim and supporting quotes for repairs

A comprehensive and detailed inventory is a critical tool for landlords and tenants alike. It helps in maintaining a clear record of the property’s condition and in resolving any issues amicably, making sure that both parties are protected throughout the tenancy. By following the guidelines and best practices outlined in this guide, landlords can create effective inventories that provide robust evidence to support insurance claims or deductions from the deposit if needed at the end of the tenancy.