When a tenant gives a deposit to a landlord, ownership of the deposit remains with the tenant and it should be returned to the tenant at the end of the tenancy. If the landlord believes that he is entitled to retain some or all of the deposit, to cover damage or cleaning for example, then he must prove that there has been a detrimental change in the state of the property during the tenancy. If the tenant does not agree with the landlords claim or, if the landlord and tenant can not agree on the landlords compensation (the amount of the deposit the landlord should retain), a formal dispute can be raised with the relevant tenancy deposit scheme [see note 1 below]. An adjudicator will be appointed and his decision will be binding upon both parties.
The adjudicative process is governed by formal rules of evidence and procedure. Its objective is to reach a reasonable settlement of the dispute at hand. It is the responsibility of the landlord to provide the evidence and he will lose the dispute if he can not prove to the adjudicator that he has a valid claim. To do this he must provide evidence of the condition of the property at the beginning (a check-in inventory) and end of the tenancy (a check-out inventory). The inventories should be thorough, accurate, clearly written and easy to read. Supporting evidence by way of photographs is also helpful and each photograph should be clearly and indisputably identified. As in any legal process, more weight is given to independent, unbiased evidence and the use of an independent inventory clerk is crucial in providing this.
If you would like to discuss your inventory requirements with us then please do not hesitate to contact us now by calling 07413 448741 or by using the link on the right hand side of this page.
Notes:
1. Any landlord or agent who takes a deposit from a tenant for an Assured Shorthold Tenancy must safeguard it in an approved tenancy deposit scheme. The deposit must be in money, and the tenant must be told in which scheme the deposit has been lodged.
The Inventory report, sometimes referred to as the “Inventory – Make” or the “Check-In Inventory”, is the most comprehensive report of all. It is the “line in the sand” against which all future reports during the tenancy life cycle will be compared. It should be completed prior to the beginning of the tenancy, when any redecorating work has been completed and the property has had its final clean. Our inventory clerk will enter the property and carry out a full and detailed inspection of all fixtures, fittings and furnishings within the property along with a description, conditional comments and photographs of each item. The report will also include location and function testing of all smoke alarms within the property and the recording of meter readings.
A check in report can be carried out on its own – a “Stand-Alone” Check-In – or in conjunction with an inventory. All meter readings would be retaken in the presence of the tenant. The tenant would be advised of the location of all smoke alarms and their working condition demonstrated. All keys would be identified, photographed and recorded within the report.
The mid-term inspection, sometimes referred to as an interim inspection, gives an overview of the property whilst the tenant is in situ. The frequency of the inspections can vary but typically would be carried at three or six monthly intervals.
Mid-term inspections are crucial to the smooth running of the tenancy and can be used to highlight maintenance issues such as the presence of mould damp or condensation. General property damage where accountability can be established at an early stage. Poor cleanliness or accumulation of rubbish, unauthorised smoking, pets or subletting off the property.
The checkout report is the last report in the life cycle of the tenancy and is a line by line comparison with the inventory report carried out at the beginning of the tenancy.
The checkout should be carried out once all of the tenants belongings have been removed from the property, all rubbish has been removed and the property has been cleaned by the outgoing tenant. All tenants keys should be returned to the landlord or agent prior to the checkout or should be handed to the clerk at the beginning of the checkout process. All items will be re inspected, and any differences noted and photographed. Action lists can be compiled and accountability for any losses or damage can be determined.