How to Create an Inventory for Your Rental Property

Disputes about property condition at the end of a tenancy are fairly common in rental properties but regular inspections, landlord insurance and having a watertight inventory can help avoid the hassle of disputes and protect the property.

Whether you are a landlord of a studio apartment in Canary Wharf or a large, family home in Bromley, creating a comprehensive inventory is highly recommended.

Here are some tips for east London landlords on how to create a property inventory:

How to create a rental property inventory

You can download a template for your inventory, or you can create your own in a spreadsheet or a Word document. This is the key information to include:

• Property address, landlord and tenant contact details, tenancy start date and inventory date.
• A list of all rooms, hallways and landings, with descriptions of all areas. Include a column to explain the condition and highlight any scuffs, stains or cracks.
• Include a list of all furniture and appliances, with a description of their condition.
• Take photos and videos as evidence of condition and store these in a secure file.
• Add meter readings and details of all keys provided to the tenant.
• Go through the inventory while doing a walk around of the property with the tenant to ensure both parties are agreed on the condition report.
• Both parties should sign the document.

What is a rental property inventory?

A rental property inventory is a legal document that outlines the condition of the property at the start of the tenancy. Inventory reports are not a legal requirement but they protect both landlords and tenants if there is a dispute about any property condition issues that are beyond wear and tear.

Landlords can create their own inventory with a schedule of condition, or they can use a professional inventory clerk to do the inventory on their behalf. Using professional inventories ensures that nothing is missed off and there is an independent assessment of the property condition.

Why is it important to have a rental property inventory?

When a tenant moves out of the property, if there any condition issues such as stains on carpets, missing or broken furniture or damage to fixtures and fittings, this can lead to a dispute. Landlords or agents can use the free dispute service provided under the chosen tenancy deposit scheme.

The service will review all evidence including photos from before the start if the tenancy and at the end of the tenancy, to decide whether the landlord can withhold some of the tenant’s deposit to cover damage or losses.

Having a thorough inventory will make the dispute resolution more straightforward, with the outcome based on the evidence provided.

Want to know more? A solid inventory works best alongside other pre-tenancy steps – read about how to choose the right tenants, check whether you are meeting all your legal responsibilities as a landlord, and brush up on fire safety regulations for landlords before a new tenancy begins.

How are furnished vs. Unfurnished inventories different?

If you are renting out property as furnished, the inventory should include all items of furniture and descriptions of their condition. This includes beds, sofas, tables, chairs, small appliances and any other type of furniture provided in the rental property.

Landlords should also include brands and models of appliances, in case the item is missing when the check out report is completed.

What else to include in a property inventory checklist – Additional checks

As well as listing the property areas and condition schedule, it is a good idea to make records of any checks you complete as evidence of legal compliance. These include records of:

• Testing smoke and carbon monoxide alarms
• Fire safety risk assessments and Legionella risk assessments
• Fire safety labels on furnishings

You should keep copies of the Gas Safety certificate, EICR and EPC in secure digital storage with your inventory.

Should landlords get a professional property inventory?

Using the services of independent inventory clerks can provide stronger evidence in the event of a dispute as this provides an unbiased report with professional photos. Creating inventories can also be time consuming but if landlords prefer to save money, then they have the option of doing the inventory themselves. They can also use property management apps that produce inventories for them to complete.

Want to find out more? Once a tenancy is under way, ongoing management matters – explore what property management involves for Tower Hamlets landlords, understand how to handle a tenant not paying rent, and review our guide to void property inspections for when a property falls empty.

Are you prepared with an inventory?

We provide professional property management services to landlords of properties in areas including Shoreditch, Canning Town and Wapping. From completing inventory check-ins and check-outs to writing tenancy agreements and arranging compliance tasks such as safety certificates, we support east London landlords across all aspects of managing rental properties.

Get in touch with our team to find out more about our services.