Being a landlord isn’t easy. There can be some great highs to the job but some real lows too. Landlords are often hit with unnecessary and avoidable costs. It doesn’t have to be this way. We’ve put together a few insightful tips to help you save money and keep costs down.
Choose Carefully
This is critical to landlords. In this line of work, there’ll be many important choices to make. If you make the right decision, you’ll keep costs down. If your judgement isn’t spot on, you could face financial burden. The two most important decisions to make concern your property and your tenant.
If you haven’t bought your property yet, consider the location carefully. Do as much research as you can. A few metres in the right direction and you’ll be quids-in! Think about amenities too. Where’s the local school? How far is the nearest supermarket? Put yourself in the shoes of the prospective tenant and ask the questions they would.
Now think about the tenant. You should only take on great tenants. This sounds simple but the reality is quite the opposite. As a landlord you never fully know who you’re dealing with. It doesn’t matter where you find your tenants, there’s always a risk. Ideally your tenant will pay on time, be respectful and keep the property in good shape. Be sure to properly check and reference your tenants. Keep an eye out for suspicious behaviour or circumstances.
If you have issues with tenants speak to Landlord Action they deal with problem tenants, landlord and tenants disputes, squatters, rental debt collection and other housing matters in England and Wales.
Shop Around for Your Agency
Don’t be tempted to take the easy option. Shop around and find the right agency for you. Do you need property management services? Think about this carefully. Some landlords prefer the agent to deal with everything whereas others just use them to find new tenants. Alternatively, you could opt to do it all yourself. This option is growing in popularity. If you choose this, make sure you understand the correct procedures for tenant referencing.
Insurance
Alike your agency, shop around for insurance. Ensure you know what each plan covers as well as what you’ll pay. Never let your building insurance run out. If there’s a fire or incident and your property’s uninhabitable, you may still be liable to pay the mortgage. Consider taking out a Landlord Rent Guarantee insurance too. This is especially important if dealing with new tenants. This policy is relatively cheap and will safeguard your rent if a tenant falls into arrears.
Cut Void Periods
As a landlord, you should avoid lengthy void periods at all costs. These pose a serious financial risk and could lead to a few sleepless nights. If you find yourself approaching a void period, think about how you’re marketing the property. Consider the price of rent, its visibility online, how it’s presented and your availability for viewings.
Maintenance: Tradespeople Vs DIY
So you need some maintenance done? When bringing in tradespeople, it’s important to think about costs as well as reviews. Don’t go for the first you find and don’t necessarily go for the cheapest. You need the job to be done properly, as well as cheaply. If you’re considering a DIY fix, make sure you do a good job. You don’t want to be revisiting the same issue again in a few months. Sometimes the cost of bringing in a tradesperson is better than the time expenditure of doing it yourself.
Furnishings
Furnishing your property is a great way of adding value. Check out all options for this. Sometimes bulk buying furniture from retailers will get you a better deal. Why not look for second hand options? This can add a unique character to your property but also save you money. Take a look at auctions as well as sites like Freecycle, Gumtree, Ebay and Amazon.
Review Your Mortgage and Hire an Accountant
A landlord’s main expense is their mortgage. It’s good practice to regularly review this and ensure you’re getting the best deal. This can mean saving money immediately. Search around and see if there’s a better deal out there. If you’ve got extra money hanging around, consider making an additional payment on your mortgage. This can seriously lower your interest rates.
It’s said that a good accountant will save you more than their fee. For a landlord, hiring an accountant should be a serious consideration. There are plenty of legal tax exemptions and breaks that you could qualify for. Speak to an accountant, see how they can help. Ask them about the possibility of off-setting your expenses against your tax bill.
Get Your Inventory Right
Your property is your livelihood. As a landlord you have the right to deduct money from a tenant’s deposit if your property is damaged. With recent changes to the law, it can be more difficult than ever to do this – even if you’re in the right. If you haven’t got your inventory spot on, you’ve got no chance of recuperating any costs. By using an impartial and unbiased service like ours, the decision is taken out of your hands. We’ll undertake a comprehensive report of your property in a fair and unbiased way. If you’re sick of deposit disputes with tenants or simply want peace of mind, get in touch with us here.
This week Paul Shamplina, founder of Landlord Action and celebrity in the field of property, took to the Direct Line for Business blog to discuss the importance of getting your property inventory right. In this piece Paul discusses the need for property inventory services and recommends No Letting Go, explaining that the cost of the package is easily outweighed by savings and benefits. Paul also shed some light on the need for quality inventories and outlines what a landlord really ought to know. We’ve put together a few of his key points here for you.
Paul Shamplina’s Views on Property Inventory Services
Paul Shamplina writes about how landlords can ‘save a great deal of time and hassle’ by using property inventory services like No Letting Go. The benefits put forward by Paul centre upon the professional expertise and advice as well as the protection that comes with the impartiality of our service. Paul does rightly highlight the need for landlords to be selective in their choice of services, only opting for companies that are a member of The Association of Independent Inventory Clerks or The Association of Professional Inventory Providers. Paul ends his discussion of the topic with a strong recommendation for No Letting Go (a member of The Association of Professional Inventory Providers).
65% of Landlords Do Their Own Inventories
In the video accompanying Paul’s blog, he becomes animated at the mentioning of this statistic. As a landlord carrying out your own inventory you are ‘exposed to more risk of a deposit dispute’. Paul attributes this to most landlords not putting detailed, correct or required information on the inventory. With an impartial service, this is not a problem that would be encountered.
Additionally, Paul underscores the importance of landlord insurance as a critical safeguard, which, when coupled with a professional inventory service, further reduces the likelihood of financial losses arising from property damage, legal disputes, or unpaid rent, thereby securing the landlord’s investment with an added layer of protection.
Property Inventories on Unfurnished Properties
Paul’s article highlights a topic that we’ve encountered many times. Some landlords are led to believe that an inventory is only needed for furnished properties. Paul reiterates that this is not the right view to take. Decoration and condition of the floors, walls and garden should all be noted in the inventory. Mould and discolouration can appear very quickly if your property isn’t being maintained properly, the inventory will detail this clearly. If you do not include an inventory with your property, irrelevant of furnishings, you are opening yourself up to the potential of losing any deposit costs that you may wish to hold back.
Mid-Term Inspection
Paul Shamplina goes on to highlight the importance of a mid-term property inspection. This visit is the ideal opportunity for you, as a landlord, to check that the property is being looked after in the correct way. The best time to do this is after at least three months of the tenant being in the property, though this is at your discretion. Don’t forget that by law you are required to give 24 hours written notice of any inspection. We highly recommend that you are flexible with your approach to inspections, this will help take the intimidation factor away from the process.
If you need help with difficult tenants visit Landlord Action.
Are you looking to take away the stress and hassle of writing your own inventory? Get in touch to find out more about our property inventory services.
Viewing a property can be exciting. Quite often it’s the most enjoyable part of the whole rental process. It’s very easy to get carried away by the idea of the next property being perfect while neglecting to check the things that really matter. We’ve put together a list of the top considerations to make when viewing a property, so you won’t forget to check something that could come back to haunt you.
Outside the Property
When you first get to your viewing, take a good long look at the outside of the building. Be sure to think about the following points:
- What condition is the outside of the property in? Is there any structural damage that could cause issues further down the line?
- What is the condition of other properties around?
- How secure is the property? Are the locks of a satisfactory quality?
- If you’re viewing a flat, what’s the entry system like?
- Is there a burglar alarm?
- Is there a garden? Who takes responsibility for the upkeep?
- What is the parking like?
Inside the Property
When you’re greeted by the lettings agent, be sure to take the viewing at your own pace. Ask questions, be thorough and don’t be persuaded by the smell of coffee or great interior design. When in doubt, consider the following:
- Are there any signs of damp? Any flaking paint? Any evidence of insect or vermin infestation?
- How effective is the heating? Do all radiators work?
- What is the state of insulation? Any double glazing?
- Can you see any obvious repairs that you would like carried out before you move in? Be sure the landlord puts any promises of repair work in writing for you.
- How much storage space is there? Can you imagine yourself fitting all your belongings into the storage available?
- What comes with the property? Is it furnished, part-furnished or unfurnished? Are the white goods included?
- What state are the kitchen cupboards and work surfaces in?
- Run a tap, check how hot the water is. This will give you an idea of the condition of the boiler and water pressure.
- What are the rules on decoration? Can you redecorate and give the place your own personal touch?
- What is the phone signal like? Do you really want to rent a property where you can’t be contacted whilst at home?
- Where are the electrical points? Can you spot any loose or dangerous wiring?
- Any signs of condensation on the windows? This could be a sign of poor insulation or cracking sealant. Check the sealant in the bathroom too, is it intact?
Local Area
Take a walk to the shops, keep your eyes open and take in the neighbourhood. Be sure to think about the following:
- What is the neighbourhood like? Would you feel safe walking alone after dark
- Are there amenities in close proximity to the property?
- What transport links are there?
- What is the volume of noise like? Do any train lines run close to the building? Any busy roads nearby? Any late night pubs that could cause a disturbance?
Other Considerations
- Are the burglar, smoke and carbon monoxide alarms in working order?
- Are all locks, including windows, functioning correctly?
- What does your rental payment cover? Who will take responsibility for bills and council tax?
- How much is the deposit? Where will this deposit be kept?
No matter how much you want a property to be perfect, listen to your gut. If the property isn’t right, then it simply isn’t for you. Don’t force it and never run into a decision like this without full consideration and thought. Once you’ve found your dream rental and approach the moving in process, be sure to carry out a full inventory. Whether you’re a tenant, landlord or lettings agent, take the stress out of the inventory process with No Letting Go. Find out more about our award winning services here.
With the country voting to leave the EU last week a lot of people have turned their attention to the property market, and just how Brexit might impact buying and renting. It’s still too early to make any firm statements, but some analysts are starting to make some predictions about the rental market and what we should expect over the coming years. An opinion that seems fairly common at the moment is that rental supply will remain at similar levels as Britain prepares for life outside the EU.
Brexit and Housing Supply / Demand
A report has found that two thirds of letting agents are not expecting supply, demand or rental costs to change that much in the immediate aftermath of Brexit. In the future demand may start to fall, as prospective international tenants choose to go elsewhere, but for the most part prices should stay around the same levels we’re seeing today. Elsewhere a quarter of the agents surveyed say that Brexit will cause upward pressure on rental costs, as landlords will be looking for a greater return on their investments.
Brexit and Buy-To-Let Mortgages
Buy-to-let mortgages have been getting increasingly difficult for landlords to obtain, with lenders continuing to reduce the amount that they are prepared to lend in relation to rental income. However there is some hope that Brexit may actually help the sector, as house prices could fall faster than rent and landlords’ yields would rise. That wouldn’t help their existing properties but it could provide some much-needed relief if they wanted to add to their portfolio.
Brexit and Housebuilding
Other industry experts say that housebuilding levels will take a hit, and that some property deals that were in the pipeline are now being cancelled following Brexit. If this is the case and fewer homes are built around the country then it could force landlords to continue with their current portfolio in the short term. However, overseas buyers could be tempted into the market thanks to a weaker pound, and anyone who trades in US dollars has much value to gain from capitalising on the exchange rate.
As things stand it’s too early to say for definite what kind of impact Brexit will have on property, but it will be a very interesting time for the sector. In the meantime if you’re a landlord or letting agent in need of inventory services then make sure you get in touch with No Letting Go today.
The most important thing of all to remember when it comes to deposits is that it is your money – every last penny of it. Which is why it is of such importance to ensure that your deposit is protected, which means making sure your landlord places it in an appropriate scheme. This must happen within 30 days of the deposit being given to the landlord, otherwise they may be liable for compensation payments to you worth one to three times the deposit’s total value.
Three Deposit Schemes
There are currently three qualifying deposit protection schemes in the UK, which are as follows:
- Deposit Protection Service (Custodial and Insured)
- MyDeposits – including deposits that were held by Capita
- Tenancy Deposit Scheme
At the beginning of your tenancy, it is of the utmost importance to carry out a full UK flat inventory, as a means by which to establish the basis for the deposit you’ll be handing over. While it’s perfectly possible to pay a deposit by way of other items – jewellery, a car, personal belongings etc. – these cannot be protected by any of these schemes. It is therefore recommended that only cash be used when paying deposits.
When Your Tenancy Ends
At the end of your tenancy, you landlord has 10 days within which to return your deposit, after you have come to an agreement on how much will be returned. If you do not agree to any deductions the landlord proposes, you can dispute the arrangement and your deposit will remain protected by the chosen scheme until you come to an agreement.
If Your Landlord Doesn’t Protect Your Deposit
It is a requirement for landlords to appropriately protect deposits, though research suggests this often isn’t the case. Chances are you won’t know for sure unless you carry out the required checks yourself, so it’s always worth doing exactly that. This can be done by contacting a TDP scheme directly and asking.
Deposit Protection Service (Custodial and Insured)
Telephone: 0330 303 0030
MyDeposits
Telephone: 0844 980 0290
Tenancy Deposit Scheme
[email protected]
Telephone: 0845 226 7837
If it turns out that your deposit is not being protected, your landlord is in violation of their obligations and may be liable for compensation claims. Landlords who do not protect deposits also have restricted rights when it comes to tenant eviction. If your deposit is not protected, you are not provided with the information about the scheme being used or the deposit isn’t placed in an appropriate scheme within 30 days, you may be able to file a claim against you landlord. If your claim is upheld, you may receive a compensation payment of up to three times the full deposit amount.
When it has been established that your landlord is in any way breaching their obligations, you can either write to them directly to demand the situation be rectified, or take them to court. In most instances, court proceedings involving deposits are relatively straightforward and the claimant may not be required to make an appearance in court at all.
Find the latest changes to landlord deposit protection here.
If you’re a landlord or agent looking to remove the hassle from the inventory process, find out how No Letting Go can help you here.
The buy-to-let market continues to be one of the hottest investment markets in the UK. People are purchasing properties and building portfolios in anticipation of providing the kind of retirement they would never get from a pension. But as with any other investment, becoming a landlord also means added responsibility. There are mortgages to pay, tenants to deal with, and a myriad of maintenance and upkeep issues. If you don’t know what you’re doing, being a landlord could become a nightmare.
Here are five common mistakes landlords make along with ways to avoid them:
1. Failing to Properly Screen Potential Tenants
Tenants are the lifeblood of any property portfolio. The last thing a landlord needs are tenants who do not pay their rent or who abuse property with very little discretion. A good way to end up with these kinds of tenants is to fail to screen potential candidates correctly. Screening is an absolute must.
One of the best ways to do this is to use a letting agent. Letting agents are experts at tenant screening, and they have access to certain tools that make it easier to discover questionable rental histories and other potential problems. Using a letting agent is well worth the money spent.
2. Failing to Have a Property Inventory in Place
There are companies that provide national property inventory checks for landlords at very reasonable prices. Yet some landlords fail to take advantage of this. By failing to have a property inventory in place, those landlords are taking a big risk in assuming that tenants will take good care of the property throughout their tenancy.
The solution to this mistake is very simple: work with a local or national inventory company to do a complete inventory of your property. Furthermore, utilise a check-in and check-out at both ends of the lease. There are plenty of companies offering landlord’s inventory UK-wide at excellent prices; utilise them.
3. Failing to Keep Tenants Happy
The successful landlord is a landlord able to secure and maintain long-term leases. The longer tenants can be kept in the property, the more financially secure the property becomes. On the other hand, constantly turning over unhappy tenants increases the landlord’s risk of void periods in which the mortgage still has to be paid despite no rental payments coming in. Not keeping tenants happy is a big mistake.
Landlords can avoid this mistake by doing whatever they can to make the tenant experience unforgettably pleasant. For example, you do not have to charge market value rents just because you can. If you can offer a lower rent and still cover your expenses and make a profit, you will have a happy tenant who is less likely to look around for something cheaper near the end of the tenancy.
4. Choosing Properties in the Wrong Location
Residential property is a lot like commercial property in the sense that location is crucial. The most desirable renters tend to want homes in neighbourhoods that are safe and have access to common amenities like public transportation, entertainment options, good schools, and additional opportunities for the family. Choosing properties in bad locations can turn what a landlord hoped to be a great investment into a financial disaster.
The best way to avoid this mistake is to do plenty of research before you purchase. Landlords can work with a specialist property company who deals only in buy-to-let investments; such companies are usually very good at determining which neighbourhoods are desirable and which are not.
5. Failing to Save Money
Owning rental property is essentially a business. And as with any business, there are certain capital expenses that are unavoidable. Landlords who fail to save money for such capital expenses can easily find themselves in financial trouble when things go wrong. If things get too bad, they could jeopardise the business.
Landlords should establish a savings account into which they routinely deposit a portion of every rental payment they receive. The money should not be touched for anything other than making capital improvements or emergency expenses. When money is taken out of the account, it needs to be replaced as quickly as possible.
Being a landlord is a very good way to establish a stable and comfortable income. But it is not without responsibilities. The most successful landlords know what it takes to run a property business and make every effort to avoid the most common mistakes.
The property market has become an obsessive past time in Britain. Speculative musings can be found on nearly every news source asking the question, ‘What will happen next?’Here are the 6 things every landlord should check before buying an investment home:
1. Research the local area
From local amenities to nearby parks and playgrounds, the area the property is located in can prove to be a real asset to the home, or can be a deterrent. Look into things like the ratings and ability to get into the local schools, the amount of the council tax, the ability to get a take away, and even the flight paths. If you aren’t familiar with the area it makes it hard to know if there are planes which fly overhead or if your tenant would be able to enrol their children in the local school.
2. Research the commute
A stressful commute has been known to cause all sorts of frustrations including higher blood pressure, higher cholesterol and increased anxiety. Investing in a property near public transport or a reliable trainline can increase the appeal of the home, because of the location. Having knowledge of the ease of transport from the property can be a big USP when attracting tenants or future buyers.
3. Don’t forget to think about what a tenant wants
It is imperative that you look at investing in a property which will be for the type of tenant you’d like to have. If you are interested in students consider a property near a university. If you are interested in attracting a young professional in London consider a property near a central line.
4. Mind your budget
Purchasing the property is only one financial aspect of this investment. It’s important to consider not just the price of the mortgage, but also what you plan on charging for your rents and what the annual costs of maintaining the property would cost as well.
5. Mind your time
It’s unavoidable that your tenants will need help from time to time. At the beginning there will be a large demand on your time if you plan on managing the property yourself. From marketing to potential tenants to overseeing the viewings, it can feel like a full time job. Even after the property has been rented the best appliances need repairing and tenants can lock themselves out of their home from time to time. So it’s important to consider how you value your time and if having a professional property management team take care of your investment is the best choice for you.
6. Don’t forget the little things
From flooding risks to sinkholes, not all properties are on solid ground. It’s imperative to get the necessary searches and perform your own research in order to know how at risk your investment might be. Although flood zones or sinkholes might be anomalies, it is always better to be safe than sorry.
Property Detective helps people make more informed, smarter decisions about where they want to live or invest, by giving them the complete picture about their local areas. Visit PropertyDetective.com for more info.
With house prices rising at their fastest rates since the recession, and the gap between those who can afford to buy and those who cannot widening with each passing month, now is as good a time as ever to enter the buy-to-let market and become a landlord.
The buy-to-let market is an incredibly lucrative one at the moment and, for first time landlords, a venture that can prove very financially successful. However, it is important that you approach it in the right way. Buying-to-let is very different from purchasing your own home and any mortgage taken out with the intention to let must be what is right from a business standpoint. Even if you do not intend on purchasing a property but instead wish to capitalise on demand by renting out a room in your own home, a business mentality is essential.
Legal Requirements
Whether you are renting a room in your main home or purchasing a buy-to-let property, there are certain legal responsibilities that you must adhere to in relation to tax, health and safety, and tenants. Before venturing in to the market, it is important that you are well aware of your responsibilities. Gov.uk offers this guide on being a landlord and renting out a room, which covers deposit protection schemes, tenancy agreements, possession claims, evictions, and more. Take the time to read each of the sections in the guide and familiarise yourself with what being a landlord requires.
Mortgage Advice
If you are purchasing a buy-to-let property, it is essential that you think from a business standpoint. A good rental property is not necessarily somewhere that you would like to live yourself, but somewhere that is appealing to a tenant, with good transport links and within close proximity to local amenities. When funding your buy-to-let investment, it is crucial that you seek advice from an independent mortgage advisor. While most banks and building societies offer buy-to-let mortgages, some of the best deals do not exist on the high street and can only be found through a whole-market broker. Unbiased.co.uk is a great place to find an independent financial adviser in your area.
Letting Agents
Buy-to-let can be a minefield of red tape and it is important that you do your homework before entering in to the market. From tenant deposit schemes to ensuring items of furniture comply with fire regulations, there is a lot to take in as a first time landlord, so the help of a letting agent could be vital. As well as the finer details of being a landlord, a letting agent will also be able to provide you with advice on potentially lucrative areas to rent. Find a good letting agent through the Association of Residential Letting Agents (ARLA).
Insurance
As a landlord you will need adequate insurance to cover the building and contents (if the home is furnished), and your rental income – especially in the early days. Insurance deals differ greatly depending on your preferences and your circumstances. LandlordExpert.co.uk offers a good directory of insurance brokers across all areas of the UK.
Inventory
While it is not a legal requirement, an inventory is something you should definitely not overlook as a landlord. An inventory is a listing of all the contents of a property and the condition of the property, designed to help monitor the condition of the contents/property before a tenant moves in and just before they leave. The inventory is signed by both landlord and tenant and works as an agreement between both parties, making clear what damages need to be paid out of a deposit and eliminating possible disputes. It is in the best interests of you as the landlord and your tenants that the inventory is carried out by a professional third-party inventory clerk; this ensures thorough documents, as well as photographic and video evidence.
Photo source flickr: Simon Cunningham.
There is a lot said about so-called ‘landlords from hell’; newspapers publish features of bullying landlords and television stations run shows all about the plight of tenants.
However, what about the other side of the rental agreement?
Tenants can be troublesome too; in fact, there are more disruptive tenants out there than there are bad landlords. There are dozens of articles online advising tenants of their rights and how to protect themselves from landlords, yet there is virtually nothing on how landlords can protect themselves from tenants – how a landlord inventory and insurance can be used to give a property owner protection.
In this post, we are siding with the landlord and looking at how you can protect yourself from troubling tenants.
Landlord insurance
As a landlord renting out a property to tenants is largely based upon trust. While references can be sought and background checks can be done to try to determine the history and character of a tenant, ultimately you put your trust in them to respect the property and look after it during their stay.
One of the rights that a landlord must provide a tenant is to allow them to live undisturbed in a property. Unfortunately, the tenant can often abuse this right and your property could be being dismantled without your knowledge. A tenant could be knocking down walls, selling appliances or renting out a spare room without your knowledge. To protect yourself from any such instances, it is advisable to have landlord insurance in place.
Given that you must keep a property in a good state of repair at all times, landlord insurance is pretty useful to have anyway – covering you for damages and any rent that is lost due to repairs being carried out.
In the event of a dispute with a tenant, landlord insurance will also cover legal expenses – both in the event of a tenant taking action against you and you attempting to evict a tenant.
Landlord insurance is based upon the cost of a home being rebuilt in the event that it is completely destroyed, therefore you should consider the building sum insured (BSI) factor and include the actual cost of the build, clearance costs, and surveyor fees when calculating how much insurance you need. Complete landlord insurance should include:
- building and contents insurance
- liability insurance
- alternative accommodation cover
- loss of rent cover
- emergency assistance cover
- rent guarantee cover
- legal cover.
Landlord inventory
Since the Tenancy Deposit Scheme (TDS) scheme was launched back in 2007, landlords are required to protect the deposit of a tenant through a government-backed scheme. This has meant landlords and no longer able to control a deposit and tenants have more power to challenge the withholding of their money. Backed by this scheme, more and more tenants are taking on landlords even when they know they are in the wrong – the only way to protect yourself from this is with a landlord inventory.
An inventory is a detailed report of the contents and condition of a property. This document contains written and visual evidence of everything related to a property and must be signed by both landlord and tenant, forming part of the legally binding tenancy agreement contract.
A landlord inventory should be carried out just before a tenancy starts and just before a tenancy ends and offers a hassle free way to assess any damages and decide what, if anything, should be paid for out of a deposit. If you are worried about how tenants may be treating a property, it is advisable to also carry out a landlord inventory during the tenancy.
Remember, when it comes to a tenancy, it is your property and your investment and you should do everything you can to protect it. A landlord inventory and landlord insurance are both recommended but it also helps finding the right tenants in the first place with online services such as Rentonomy and Upad helping landlords do just that.
Photo source – flickr: Chris Potter
Whether you are a landlord or a tenant, letting inventory services in the UK are an essential part of property rental. The idea of an inventory is to catalogue the contents and condition of a property recording details of the home and any items that are included in the tenancy. The compiled report is then used as part of the legally binding contract between landlord and tenant preventing disputes over possible damages between both parties and aiding in a smooth transition from one tenant to the next.
Over the years, inventory reports have traditionally been compiled in writing, text still rules the roost; however, as technology advances and many people now have access to cameras in smartphones and tablets, there are an increasing number of landlords incorporating photos into inventories. There is an old saying that ‘a picture is worth a thousand words’ and it’s hard to argue with this; but, can this saying really be applied to property inventory in the UK?
Finding the right balance
A picture can add a lot to an inventory, and photographs of large areas of damage such as holes in doors, carpet burns, and damage to worktops will go a long way in building a solid case against a tenant. However, when it comes to providing the perfect inventory report, a photo is only worth a thousand words if the right balance is found.
According to the Association of Independent Inventory Clerks (AIIC), an overseer of excellence in rental inventory services in the UK, photographs are being used more regularly in inventories. However, they are at the expense of written descriptions and this is leaving landlords exposed to costly disputes with tenants over damage.
In many reports, the AIIC has found that photos no bigger than thumbnails are being used as evidence. Naturally, with a picture being so small, detail is hard to see. Photographs of a decent size and quality though, can be very useful and many of today’s modern smartphones have the capability to produce detailed images.
Only quality photos will do
The comprehensive nature of inventories means that it photos must only be provided if they are backed up by a written presentation. The most common disputes between landlords and tenants are over small damages, such as chips in cupboard doors, scratches in sinks and baths, and knife marks on worktops. Such damages, while minor, can result in financial losses for landlords and tenants if negligence cannot be proved and a photo alone is often not sufficient evidence as details are so fine.
In order for property inventory services in the UK to help landlords win disputes for either side in a rental agreement, it is essential that photos are of a high quality and printed in A4 or even A3. In addition to this, the photo should be dated on camera and only be used to make up part of a written report.
The written inventory may still rule the roost, but the use of photos is definitely here to stay.
Photo source: Paul Reynolds