If you're a tenant or landlord renting an apartment or property, then the property inventory document is crucial as it is second only to the rental agreement for importance. The majority of professional agents and landlords know this; however, most tenants have a passive view of the inventory document since they don't know how important it is to help them.
In essence, a tenant must always make sure that an inventory of the property is made available to them so that they can not be blamed for damages for that they aren't accountable or at some time at a later date.
Inventory management will promote a positive business relationship between tenant and landlord before starting the new tenure. It must always be performed by an inventory specialist who is a member of the Association of Professional Inventory Providers (APIP) or the agency that manages the lease. This will enable questions or complaints to be addressed differently by the two parties involved.
What exactly is an inventory of properties?
An inventory is an exhaustively written document that outlines each space in the property, its contents, and its condition. Photos often accompany it. There are two identical reports of inventory prepared for each tenancy. One before the tenant moves in, which is typically called the inventory. Being aware of the property's condition at the beginning of the tenancy is also helpful to establish clear expectations for the level of maintenance required by the tenant.
Another inventory, known as the check-out, takes place when the tenant leaves with their belongings. The report on the check-out will include the recommended actions, if any, that are usually designated to either the landlord or tenant's responsibility. These reports are essential for both tenants and landlords as they are legally a benchmark for the standard of the property and aid in ensuring that agreements are completed quickly at the end of the tenure.
The two reports must demonstrate how the property changed throughout the tenure. If a disagreement causes a dispute regarding hygiene or any other issue, the inventory is the most important evidence. The adjudicator will look at the issue solely using the inventory to make their judgment.
The tenant may be present when checking out the inventory process; however, it is essential to examine both reports. If there is a mistake that was missed in the check-in report of the property, then the owner could end up in a tricky circumstance where they might be required to pay for damages they did not cause. So, if a tenant notices any errors or omissions on the inventory, they need to be reported immediately to the clerk of inventory, the letting agent, or the landlord. The tenant must confirm the documents so the entire community has interested to ensure that the inventory is correct.
Many tenants cannot be patient and wait for the case to be resolved since the deposit is required to secure the property to be purchased. Thus, inventories can help protect tenants from unjustly removing their deposit in the event of their departure from the property, especially when tenants are in a hurry to negotiate a deal.
Avoiding deposit disputes
Tenants are only responsible for damages, fair use, and wear and tear. Thus, occupancy figures like a big family, the length of the tenure, the condition, and the items' quality are important in determining fair wear tear.
A professional inventory can greatly assist in determining the replacement cost in that it can provide the original condition and quality of the items being sought. For instance, if glasses are chipped or missing, it must be identified if they came from crystal glasses or a glass that does not match purchased from a discount shop.
The amount of deposit that will be returned to the tenant will be calculated through inventory and check-out reports.
In the end, the following are five key reasons why tenants must ensure they have an inventory before entering a new tenancy–
- The inventory will detail the property's condition before the commencement of the tenancy. The tenant agrees to this.
- It can assist in the management of maintenance tasks during the tenure. (For example, if a malfunctioning oven door is discovered during the check-in and eventually breaks, the landlord must fix it.)
- The inventory serves as an exhaustive guideline on how to surrender the property following the expiration of the lease.
- It will reduce the chance of disagreements over who's responsible for damages and repairs after the lease and assist in determining the fairness of wear and wear and tear.
- It will secure your deposit, provided you exactly return this property should a dispute lead to the need for a formal dispute.
