Professional and thorough inventories could save landlords money at a time when it is becoming more expensive to let properties in the private rental sector, insists the Association of Independent Inventory Clerks (AIIC).
The organisation explains that the next two years could present a particularly costly period for buy-to-let landlords, with tax relief on finance costs being restricted from April, and the prospect of higher management costs as a result of the Government’s ban on letting agent fees charged to tenants.
Inventories comprehensively detail the condition and contents of the property at the beginning of a tenancy, and should be signed and agreed by the tenant upon check-in.
Our handy guide explains exactly how to compile a thorough inventory: https://www.justlandlords.co.uk/news/landlords-guide-inventories-avoiding-disputes/
The AIIC insists that a signed, completed and agreed inventory should be a minimum requirement at the start of a tenancy.
The Chair of the organisation, Patricia Barber, says: “It’s clear that, while the private rental sector 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 reminds landlords that, at the end of a tenancy, inventories help to confirm the condition of the property and, subsequently, make clear any deposit deductions that need to be made.
Landlords that do not have comprehensive inventories available at the end of a tenancy could therefore make it extremely difficult for themselves to claim back funds for damage and lost items.
“Providing an inventory is a simple and relatively inexpensive step, and could save a landlord a lot of money over time,” claims Barber. “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.”
While an inventory will highlight any deposit deductions that need to be made, remember that you still need cover against malicious damage and theft by the tenant for severe loss. Our award-winning policy includes these essential covers, amongst many others, as standard: http://justlandlords.co.uk/landlord-insurance