The news last month that Britain could shortly become a nation of renters, would have been welcome news for the majority of Landlords who are keen to expand their portfolios. Here, Kate Maddison from the Live Letting Exchange, highlights why Inventory services have an important part to play in long-tem lets:
“In June 2011, the National Centre of Social Research Report, commissioned on behalf of the lender Halifax, stated that whilst the vast majority of people still aspire to own their own home, there are many who simply believe that this will never be a reality for them.
If this research transpires to be true, it is likely that Tenants will be looking to secure long-term rental properties where they can spend time building a home. Long-term tenancies are, of course, almost always favoured by Landlords who generally prefer the security of having a tenant in-situ and the financial savings and overall benefits which this provides.
Whilst time is spent renegotiating rents and preparing renewal AST documents during long-term lets, the issue of keeping Inventories up-to-date is often overlooked. During the course of a longer tenancy, improvements may be undertaken at a property - perhaps a kitchen re-fitted, redecoration or household appliances replaced. Whilst there are likely to be invoices for purchases and contractor's work, without formally updating the Inventory, there is no proof as to the standard of work carried out or, for example, the condition of the ‘new’ item. Landlords could, therefore, be leaving themselves open to canny Tenants who know how to ‘work the system’ when they come to vacate, seeking to leave the property in the same condition as stated in the Inventory when they took occupation rather than after the improvements were made.
The most practical and least expensive way of providing a supplementary update to an Inventory (and the least obtrusive to the Tenant living at the property) is to arrange for an independent Inventory Clerk to visit the property periodically during the course of the tenancy agreement (or immediately after any improvement works) and produce a Condition Report of the property which includes photographic evidence. This should then be added to initial Inventory and Check-In Reports and used at the point of Check-Out.
Conducting a Check-Out against an old Inventory (2+ years) can be extremely problematic if no updates have been made; ensuring that Inventory Reports are accurate documents for the Clerk undertaking the Check-Out is extremely important and will aid a swift deposit release process for all concerned.
If Britain does end its long-term love affair with owning property and Tenants do seek solace in longer-term rentals, then Landlords and Letting Agents alike should consider the need to ensure that they maintain accurate and current documentary evidence regarding the condition and contents of properties.
With interest rates remaining low and more mortgage deals becoming available to investment purchasers, the future for Landlords looks very healthy indeed”.
The Live Letting Exchange provides nationwide Inventory services to Landlords and Letting Agents. To find out how you could benefit from their services, please contact Kate Maddison, 07736517459 or kate.maddison@live-lx.com
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