A comprehensive and professionally collated inventory could save landlords lots of money at a period when the private rented sector is becoming more expensive.
This is the message being highlighted by the Association of Independent Inventory Clerks, who explain that the next two years could be particularly costly for landlords.
With mortgage interest tax relief being phased out from April and with the prospect on increased management costs as a result of letting agent fees being banned, the coming months could be pricey for investors.
The AIIC argue that a thorough, complete and signed inventory should be an absolute minimum requirement at the start of a tenancy. A good inventory can comprehensively detail the condition and contents of a property at the start of a tenancy and should be signed and agreed by both parties when a tenancy begins.
Patricia Barber, Chair of the AIIC, noted: ‘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,’ she continued.
Barber went on to say that an inventory is of paramount importance when confirming how the condition of a rental property has changed over the course of a tenancy. This will determine how much, if any, deposit money will have to be withheld.
‘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. Providing an inventory is a simple and relatively inexpensive step and could save a landlord a lot of money over time. During a period when letting property is becoming more expensive and complicated, not providing an inventory could prove damaging to the long-term future of a landlord’s investment,’ she concluded.