As 2024 draws to a close, landlords should prioritise thorough property inventory reports to protect their investments and plan for the year ahead. These reports document property conditions, minimise disputes, and ensure legal compliance. Here’s why they’re essential.
1. The Role of End-of-Year Reports
End-of-year reporting provides landlords with a clear overview of their property’s condition and helps address outstanding issues. A detailed property inventory report allows landlords to:
- Document Property Condition: Record wear and tear or damage, ensuring transparency.
- Plan Maintenance: Identify necessary repairs and upgrades, especially ahead of winter.
- Ensure Tenant Accountability: Clearly outline tenant responsibilities, reducing disputes.
2. Avoiding Disputes and Protecting Deposits
A property inventory report is invaluable for resolving deposit disputes, providing clear evidence of a property’s condition at the start and end of a tenancy. Professional reports ensure:
- Transparency: Reduce misunderstandings with tenants.
- Legal Compliance: Meet requirements for justifying deposit deductions.
3. Preparing for New Tenants in 2025
For properties with tenancies ending in December, an updated property inventory report ensures a smooth transition to new tenants. It helps landlords:
- Highlight Repairs: Address issues before new tenants move in.
- Maintain Tenant Satisfaction: Present a well-documented, well-maintained property.
4. Ensuring Compliance for 2025
With evolving rental regulations, a detailed property inventory report supports compliance. It helps landlords:
- Meet Standards: Document safety features and energy efficiency improvements.
- Avoid Penalties: Maintain evidence of legal compliance and proactive maintenance.
How No Letting Go Can Help
No Letting Go’s professional property inventory reports provide detailed documentation, photographic evidence, and unbiased reporting. From check-ins to check-outs, we help landlords streamline property management, reduce disputes, and protect investments.
Conclusion
A detailed property inventory report is essential for end-of-year property management. It simplifies deposit claims, supports legal compliance, and ensures your property is ready for the year ahead.
Start 2025 with confidence—schedule your property inventory reports with No Letting Go today.
You’d think that as the CEO of No Letting Go, the UK’s leading provider of inventory and property reporting inspections, and Kaptur, the provider of software for property reporting, with most of my career spent in the lettings industry, I wouldn’t be caught out by such a major issue.
I’m writing this article to highlight the pitfalls landlords can face, and to share what I’ve learned from my experience.
As a small landlord with a handful of properties in and around South London, which I’ve owned for many years, I’m just as vulnerable to the challenges any other landlord might encounter. I consider myself a meticulous landlord. I don’t cut corners: I use a well-known, reputable letting agent, ensure all properties have deposit protection (some with traditional schemes like mydeposits and others through insurance-backed deposit schemes like Flatfair), and always take out rent protection insurance through reputable companies. I make sure all mandatory compliance requirements—like electrical, gas safety, and EPC—are met, and even take care of less-known obligations, such as legionella risk assessments. Naturally, I also insist on detailed inventories, signed check-ins, quarterly property visits, and independent check-outs.
As a busy professional running another business, I want to avoid unnecessary issues that could have been prevented.
How It All Happened
Despite all my precautions, I ended up discovering a fully operational marijuana factory in one of my flats, unbeknownst to me – and worse, my letting agent had no clue either. Here’s how it unfolded, and the lessons learned.
The property in question is on the third floor of a block in Southeast London, a popular rental area. I’ve owned it for many years. Four years ago, the agent found a new tenant after the previous one moved out. The tenant was referenced, insurance was taken out, and everything seemed routine. The tenant moved in, paid rent on time, and allowed mid-term inspections, often without being present, as he gave permission for the agent to enter. Everything seemed perfect—no hassle at all.
The first sign of trouble came after a year when neighbours noticed the windows were blacked out with paper. They raised concerns, calling both the police and the agent to check. This happened several times. On each occasion, the agent conducted an inspection, and the police spoke to the tenant, but nothing seemed amiss. The tenant explained that he worked nights and blacked out the windows to sleep during the day. It seemed plausible, so no further issues were raised.
What we didn’t realise at the time was that this story was likely crafted to put the neighbours at ease, while they covertly set up a marijuana farm in the property.
Fast forward to August 2024. I received a call from the estate management company informing me that the fire brigade had been contacted because water was leaking into the flat below mine. The tenant below had called the fire brigade after being unable to reach my tenant. The fire brigade forced entry to stop the water leak and discovered the source—an irrigation system malfunctioning in my flat.
The Discovery
The fire brigade found an elaborate marijuana operation in the property. When I arrived with the letting agent, the estate management agent, the fire brigade, and the police, the property was in complete disarray. Every room was filled with marijuana plants, chemicals, grow bags, water filtration systems, and a tangle of venting and heating equipment used for growing and harvesting. No one was living there – it appeared the entire setup was being controlled remotely. The electrics had been tampered with and bypassed the meter, ceilings were damaged to install venting systems, and the property was completely uninhabitable.
The police informed me that they would secure the property, remove the plants, and then I could clear and repair it. They warned me that it was unlikely anyone would be charged, as finding the responsible individuals was low priority. We later found out the tenant claimed he had sub-let the flat and knew nothing more.
The plants were removed, and the property is now being cleared. The overall cost of repairs—including removing the equipment, fixing electrics, painting, carpets, and damage to the flats below—is expected to reach £10,000.
What Went Wrong
Naturally, my first question to the agent was: how did you miss this during your mid-term inspections? It was impossible to overlook. The agent then admitted they hadn’t been able to complete any inspections in the past year. The tenant always had an excuse, and because of his good track record, they didn’t push further. In fact, as we later discovered, the tenant had sub-let the property and was living in France. He likely didn’t want the agent to know, as he was either receiving more in rent than he paid me or was involved in the illegal activity himself. We’ll probably never know the full story.
Legal Considerations
I challenged the agent by referencing the Landlord and Tenant Act 1985, specifically Section 11, which gives landlords the right to enter the property with 24 hours’ written notice. If the tenant doesn’t respond or refuses entry, the landlord cannot legally enter. However, in cases of urgency (like a gas leak or flood), the landlord can enter without permission. Suspicion of illegal activity, however, is a grey area.
After consulting with legal experts, I learned that landlords or their representative have the right to enter for:
1. Property inspections to ensure it’s in good repair.
2. Repairs and maintenance to comply with Section 11 obligations.
3. Emergency access in cases like gas leaks or flooding.
If the tenant refuses access without a valid reason, you can serve a formal breach notice. Failing that, you can apply for a court injunction to gain access. In emergencies, landlords have the right to enter without notice but should document the situation thoroughly.
Lessons for Landlords and Lettings Agents
This case should have raised red flags. The agent should have arranged to meet me at the property if access was repeatedly denied. Had this been done earlier, we might have discovered the problem before it escalated.
Fortunately, some costs will be covered by insurance and the deposit protection scheme. Detailed inventories, mid-term inspections (up until the issues started), and an independent check-out – all logged through Kaptur software – are crucial pieces of evidence. This documentation will help in recovering costs and claiming against insurance.
The most important takeaway for landlords and agents is the value of thorough documentation. Evidence is essential, not only for deposit claims but also for insurance purposes. While I’ll recover some costs, the agent’s failure to conduct inspections has cost me thousands – not an easy conversation for any agent to have with their landlord, and one that certainly affects their reputation.
Watch the full webinar of Nick Lyons discussing the challenge he faced:
At No Letting Go, we understand how challenging it can be to manage multiple rental properties. That’s why we offer a full range of property inventory services designed to simplify the process. Our team of professional inventory clerks ensures that your properties are thoroughly documented at every stage, from check-ins to mid-term inspections and check-outs.
1. Leverage Our Inventory Expertise
No Letting Go has years of experience providing comprehensive, unbiased property reports that meet all legal requirements. Our inventory specialists create detailed, standardised reports for each property, ensuring consistency and accuracy across your entire portfolio. These reports document the condition of the property, including fixtures, fittings, and appliances, reducing the risk of disputes and protecting both landlords and tenants.
2. Consistency in Reporting
When managing multiple properties, consistency is key. We follow a structured process to document every aspect of the property, ensuring that reports across all properties are uniform and easy to compare. Whether you’re managing two properties or twenty, No Letting Go provides you with the assurance that nothing will be overlooked.
3. Schedule Regular Inspections
Keeping up with routine inspections can be overwhelming when dealing with multiple properties. We offer scheduled mid-term inspections to help you stay on top of property conditions. These regular assessments help identify issues before they escalate, saving you money on costly repairs and ensuring that your properties remain well-maintained.
Additionally, our end-of-tenancy check-outs provide a detailed comparison with the original inventory, helping to settle disputes regarding wear and tear or damages. Our reports ensure transparency and fairness in deposit deductions, protecting your interests while maintaining good tenant relations.
4. Incorporate Visual Evidence
No Letting Go integrates high-quality photographic evidence into every inventory report. This not only strengthens the documentation but also provides visual proof of the property’s condition at the start and end of a tenancy. In the event of a dispute, these date-stamped images serve as clear evidence, making it easier to resolve any issues efficiently.
5. Outsource to No Letting Go
Managing multiple properties can take up a significant amount of time, especially when dealing with the detailed work of inventory reporting. No Letting Go offers a professional solution, taking the burden off your shoulders. Our team handles everything—from check-ins to check-outs—allowing you to focus on other aspects of property management. Whether you own a few properties or a large portfolio, we are equipped to manage the documentation for you.
6. Stay Legally Compliant
Legal compliance is a top priority in property management, and at No Letting Go, we ensure that every inventory report meets the latest regulatory requirements. From Right to Rent checks to documenting safety features like fire alarms and smoke detectors, our team ensures that your properties are fully compliant with the law, reducing the risk of penalties or disputes.
Conclusion
No Letting Go is here to help landlords simplify their property inventory management process. With our expert clerks, consistent reporting standards, and commitment to thorough documentation, managing multiple properties becomes significantly easier. Let us handle your inventories, so you can focus on growing your portfolio with confidence.
For more information on how we can assist with your property inventory needs, reach out to No Letting Go today!
Research by Statista, a statistics portal for market data, found more than half of landlords who responded were in disputes with their tenants, the main reasons being arrears, cleanliness, pets, subletting and breakages. Using regular property inventories letting agents can help their landlord clients to avoid such problems.
When should you use a property inventory?
A property inventory provides a detailed report on the contents and condition of a property, listing furniture, fixtures and fittings and alongside the condition and cleanliness.
A property inspection must take place for each new tenancy to detail the condition of the property at the start; at regular intervals throughout the tenancy to record any changes and damages from the check-in inventory; and finally, at the end of the tenancy to assess the property as the tenant departs.
These regular inspections provide a full report of the property’s condition for the complete duration of the tenancy.
Why are property inspections of benefit?
Completing a property inventory might seem like a time-consuming task for a busy letting agent looking after a number of properties. However, a comprehensive inventory process can stop a landlord-tenant dispute from escalating into a legal dispute, which would be far more costly in time and money. A proper inventory system offers other benefits:
- Essential evidence about the state of the property
- Crucial evidence if you need to take the cost of a repair or replacement from a tenant’s deposit
- Claiming on insurance is much easier with inventory evidence
- A speedy inspection process to reduce the period between tenancies and maximising a property’s income potential
- Using a standard inventory process ensures that nothing is missed during a property inspection
What does an adequate property inventory look like?
To ensure that a property’s inventory and schedule of condition will be useful to avoid a dispute, it must include:
- Full contents of the property, fixtures, fittings and state of decoration
- Details of the condition for each item
- Photographic, date-stamped evidence
- A declaration page for relevant parties to indicate their agreement to the contents of the report
It must also be completed in an objective and unbiased way and enable easy comparison between reports to identify any changes in contents or condition. Ideally, a property visit should be completed every three to six months
Disputes between landlords and tenants are time-consuming, potentially costly and can affect the reputation of a landlord and their letting agent. Using an independent inventory service can help boost the credibility of an inventory for tenants because they will see it as being independent.
Discussing the tried and tested landlord inventory service we use at No Letting Go can help letting agents understand how our inventories are structured to facilitate comprehensive property inspections and designed to capture the right information to prevent disputes.
No Letting Go
If you would like to discuss how our local support or national network at No Letting Go could become your property management partner, streamline your cost, reduce workload and keep accurate property inventories the please contact us today.
Ever had your investment abused by careless tenants? Whether it’s damage to the property or a general disrespect, it’s a horrible feeling. You feel cheated by the people you trusted.
Deposits and tenant referencing companies are great ways of combating bad tenants, but there’s another step you should be taking. Regular landlord inspections are vital for ensuring your tenant is actually maintaining your property as agreed in the tenancy agreement.
Many landlords avoid checking their investment purely because there are clear regulations to follow. Don’t be one of those landlords! Here’s what you need to know about property inspections.
Why You Should Carry Out a Rental House Inspection
Not convinced about the need to inspect your property? Here are a few advantages of inspections:
- You can assess how your tenant treats the property
- You can check on any maintenance issues that need your attention, such as health and safety requirements
- You boost your reputation as a landlord and become more approachable
- You can create an open pathway of communication with your tenants
- You can take a look at the living conditions of your tenant
- You can keep an eye out for any illegal activities
- You can check that you’re still offering a safe and legal letting to the tenant
- You may not have a duty of care to neighbours, but it may avoid disputes to check in with them. They may be able to tell you information about how your tenants are behaving that you might otherwise miss
Can a Landlord Enter Without Permission To Do A Property Inspection?
When it comes to entering the property, there are rules.
You can’t just turn up and inspect the condition of the property. The landlord or agent doesn’t necessarily need permission before entering. However, there are laws you need to follow when it comes to regular inspections.
Legally, there are three main rights of entry:
The Right of Reasonable Access
As a landlord, you need to be aware of your Landlord access rights. ‘Reasonable access’ sounds like a very general term but it is simply defined. This ultimately refers to the need to access the property immediately to carry out emergency/necessary repairs.
The Right to Enter to Inspect the State of Repair of the Property
As owner of the property you can also enter to inspect the ‘state of repair’. For inspections, you aren’t granted immediate access.
You must also carry out all inspections at reasonable times of day. If someone other than yourself (or a previously agreed agent) is inspecting the property, you must give notice of inspection in writing.
The Right to Enter to Provide Room Cleaning Services
If you offer room-cleaning services to your tenant and this is stated clearly in the contract, you can access the property without permission. This is a relatively uncommon situation.
Can a Landlord Enter the Property Without the Tenant Present?
If the reason for access is one of the ones mentioned above, such as an emergency, the tenant does not need to be present during a property inspection.
However, tenants should still be informed. This is their home also, so it’s a good idea to let them know if you’ve entered, and for what reason.
A landlord entering the property without permission or reason is against the law.
How Much Notice Does a Landlord Have to Give?
Usually, you must provide at least 24 hours notice before entry. This can differ in an emergency.
Landlord Right of Entry – Try Not to Scare the Tenant
Inspections can be scary for your tenants, as they’re obligated to look after your property. As soon as you notify them of your intention to check your property, they’ll begin to sweat. Be as casual and relaxed about it as you can. Explain there’s no reason for them to be worried, it’s just a mandatory walk through.
If you’re able to, give your tenant more than the required 24 hours’ notice – a week is usually best. This gives them time to present the rental in a clean and tidy state. Be flexible about the time of your visit and offer to rearrange if it isn’t convenient.
Landlord House Inspection Checklist
So, what should you be looking for?
There are plenty of issues you might come across, some more serious than others. Your inspection can be as thorough or casual as you’d like. Having said this, keep your eyes peeled for these common problems:
- Damage beyond wear and tear (broken windows, stained carpets, etc.)
- Damp and mould
- Leaks
- Condition of furniture and white goods
- Excessive rubbish
- Poorly maintained garden
- Faulty smoke alarms/carbon monoxide detectors
- State of the loft/attic
- Signs or rodents/infestations
Periodic Inspection Report
It’s recommended to carry out a house inspection every 3 months or less. This depends on the length of the tenancy.
To help you monitor your property effectively and keep track of any recurring issues, you may want to fill out a house inspection form of some kind.
This can be particularly useful if you spot a problem on a particular visit, and find it has not been corrected next time. With all the obligations landlords have, having a record can help you stay informed about the condition of your rental property.
Can Tenants Refuse Access to a Property?
If you turn up unannounced, for example without written notice, the tenant can refuse to grant entry.
To avoid this, give plenty of warning.
What Happens If the Tenant Refuses Entry?
If a tenant refuses to grant permission for entry, you can’t go ahead without their blessing. As a landlord, you have to respect the tenant’s privacy. This can create a difficult situation where a harmonious relationship between landlord and tenant can be jeopardised.
Tenants only tend to refuse entry if they’re hiding something unsavoury from you. Unfortunately, you can’t take the issue any further.
How to End the House Inspection
Communication is key here. If there are issues you’re not happy with, explain why and discuss whose responsibility it is. If you’re coming back to complete any repairs, give full details of when this will be. Don’t forget to ask your tenant whether they know of any issues or damages that require your attention. Ultimately, thank them for their time – remember, they weren’t obliged to let you in.
How Can an Inventory for a Rental Property Help?
Want to lower the possibility of deposit disputes and damage to your investment? No Letting Go will manage the entire inventory process in a professional and open manner. This includes check ins and check outs. We’ll help you comply with your obligations, while improving the lives of tenants. Find out more about our inventory services here.