We've reached the final instalment of this getting started guide for landlords. In part 3 we'll cover the last two subjects: creating an inventory and providing an information/welcome pack for your tenant. Like many of the previous 7 areas we've covered, these might seem like insignificant pieces of admin, but they will be very consequential when it comes to situations later in the tenancy.
STEP 8: Always produce a thorough inventory
We always recommend producing a detailed inventory just before your tenant moves into the property. It should comprise a thorough survey of the contents, condition and cleanliness of your rental property, and provides the baseline for all future inspections and discussions with the tenant. Of course, this should also be reassuring for your tenant, because it establishes an objective and mutually agreed record, which prevents false claims of damage being made. We provide an inventory using specialist industry software at a reduced cost for our clients, but as a self-managing landlord you can choose to employ an inventory clerk for this specific purpose.
So what is the purpose of an inventory? It should serve as a detailed record against which to compare your later mid-term inspections and check-out inventory, to demonstrate how the tenant has been occupying the property. If there has been any damage, beyond the "fair wear and tear" permitted by your tenant's contract, this is a crucial piece of evidence to present your tenant and the deposit protection scheme if there is a dispute. In fact, without the check-in inventory it is almost pointless taking a damage deposit in the first place, because any claim for a deduction to pay for repairs will be very weak without evidence. On that point, ensure that inventory photos are time-stamped and that you can demonstrate your tenant approved the inventory, ideally by signing it.
How else can you ensure that your inventory serves its purpose? Here are some general tips for producing an effective document: Record both the condition and cleanliness of rooms and items, because "fair wear and tear" only pertains to condition, meaning that no "fair" reduction in cleanliness at check-out is allowed. Use terminology that is both specific and consistent across reports (check-in, mid-term, check-out). For example, describe defects with clear terms like "scuffs" or "indents", instead of falling back on general categories like "fair" or "poor". It's really important to demonstrate the tenant was given the chance to check and approve the inventory, whether by signing it, email exchange, or declaration form. Always photograph items from the same position across different reports, so there is no discrepancy or distortion between the check-in and check-out inventories, for example.
STEP 9: Provide your tenant with a full information pack
Creating a full information pack for your tenant is time well spent, as it ensures you have met certain legal obligations, provides essential guidance for your tenant, and makes it easier to recover possession of the property through Section 21 if that should ever become necessary.
Firstly, you’re legally obliged to supply a copy of the gas safety certificate, Energy Performance Certificate (which must be at least band E), deposit details (Prescribed Information), HMO license (if applicable) and latest version of the How to Rent Guide (which outlines key rights and responsibilities of landlords and tenants). Failure to provide any of these documents will make it harder to recover possession of your property through Section 21 if it becomes necessary. New versions of the How to Rent Guide are intermittently released, so it's really important to keep your eyes peeled for these, because the regulations specify that your tenant must receive the latest version at the start of their tenancy. You must also serve a copy of a valid EICR certificate.
A fully signed copy of the AST, along with the inventory (preferably signed) should be included in the pack. Finally, we recommend creating a brief welcome pack, with useful details on the property and local area. Not only is this a thoughtful gesture, which sets the right tone for your landlord-tenant relationship, but it can save you both time asking and answering common questions. This is the kind of information you can include in the welcome pack: meter locations, stop tap location, guidance on preventing damp, locks and security advice, fire safety guidance, appliance manual location, local services recommendations.
If you have questions about this article or renting out your property, please get in touch with us. We're an independent letting agency in Norwich, serving the whole of Norfolk. We manage all property types, including HMO's, and specialise in Guaranteed Rent.
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