Inventory services will play an important role in Generation Rent

According to recent news stories, Britain could shortly become a nation of renters.  Kate Maddison, Key Accounts Manager, for the Live Letting Exchange, highlights why Inventory services have an important part to play in long-term lets.

“It is clear from the recent National Centre of Social Research Report, commissioned on behalf of the lender Halifax, 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, a fair amount of work may be undertaken at a property – perhaps the kitchen re-fitted, rooms decorated or white goods replaced.  Whilst there are likely to be invoices for purchases and contractors work, without formally updating the Inventory, there is no proof as to the standard of the work carried out or the condition of the ‘new’ items etc.  Landlords could, therefore, be leaving themselves open to canny Tenants who know how to ‘manipulate the system’ when they come to vacate, and seek to leave the property in the same condition as stated in the Inventory, rather than representative of the works carried out/alterations 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 utilise professionally produced Property Visits Reports which incorporate photographic evidence.  By utilising such Reports in addition to stand property visits, formal independent reference can be given to the alterations which have occurred within the property, and in turn can be furnished to the Inventory Clerk at the point of Check-Out.  If, however, the property has been subject to complete refurbishment, it would be advisable for a completely new Inventory to be produced – which would again take into account all of the changes and provide a fresh schedule of condition for the whole property.

Carrying out a Check-Out against an old Inventory (2+ years) can also be extremely problematic if no updates have been made, for example considerable time could be spent looking for items that have long been removed (with permission) and lengthy notes made to ‘differences’ which are no longer relevant.  Ensuring that Inventory Reports are serviceable 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 it is likely that it will become common place best practice for updates to Inventories to be utilised during the course of the tenancy.  It appears that measures are being looked into to try and curtail ‘Generation Rent’, however, whether these will be enough to lower deposit requirements and provide would-be first-time buyers to have the confidence to apply for a mortgage, remains to be seen.  There appears to be a healthy future for the Lettings Industry ahead, provided of course, supply can keep up with demand.” 

The Live Letting Exchange is a nationwide Inventory provider.  To find out how your business could benefit from their services, please contact Kate Maddison, Key Accounts Manager, 07736517459 or kate.maddison@live-lx.com