Avoiding Disputes with Proper Inventories: Essential Guidance for Landlords and Tenants.

Welcome to another episode of The All Things Property Podcast with Simon Bacon and Ian Sadler. Today, we’re diving into a topic that sits at the heart of every successful tenancy but is often misunderstood or overlooked: property inventories. Whether you’re a landlord or a tenant, understanding what a property inventory is—and what it isn’t—could be the difference between a smooth deposit return and a costly dispute.

In this episode, Simon Bacon and Ian Sadler break down what makes a thorough inventory, why detail counts, and how the right documentation protects everyone involved. They’ll reveal real-world mistakes, debate who should compile inventories, and highlight the pitfalls of cutting corners. Join us as we unpack the practical tips and hard-earned lessons that turn a property inventory from an afterthought into your tenancy’s best insurance policy.

Chapters

00:00 Understanding property inventories

06:18 Using inventory clerks for property

08:30 Inventory management mistakes

10:49 Preparing rental property documents

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Transcript

SPEAKER_00 0:00

Welcome to the All Things Property Podcast with me, Simon Bacon and me, Ian Sadler. And today Ian we're going to talk about a subject that is dear to our hearts. Yours, property inventories explained. Welcome to the All Things Property Podcast with me, Simon Bacon of Preference Properties. Every week, Ian Sadler and I will delve into All Things Property. We'll guide you through with friendly, no nonsense advice. Now this is something we've covered in various podcasts that we've done. In fact, last week's episode talked about avoiding disputes and how deposits can be returned or the issues that affect deposits. What we're going to talk about today is what actually is a property inventory, why they matter, how they protect landlords and tenants, and if there's one document that decides whether deposit dispute is won or lost, it's the inventory. And I think we've shown in previous episodes rather, most people don't give it enough attention. So what is putting you on the spot now, Ian, what is a property inventory and what isn't it?

SPEAKER_01 1:16

Remember the last bit, what isn't it? In the spirit of deja vu. A property inventory is a schedule of content and condition of a property given to tenant at the start of tenancy. Why are you looking at me? Because I know there's a punchline coming somewhere. Yeah. Keep going. So that's the why. What is it? Well it what isn't it? Yeah. It's not a tenancy agreement. Tell me. Just get the code change.

SPEAKER_00 1:44

Really? So let me put a little bit of simplicity into it.

SPEAKER_01 1:50

I'm so happy.

SPEAKER_00 1:52

What a property inventory isn't, it's not just a list of items. It is a condition record, ultimately.

SPEAKER_01 2:03

Did I not say it's a schedule of content and conditions?

SPEAKER_00 2:06

You did. You just didn't say it wasn't a list of items, so one to me. Anyway, a list of items. Why do inventory matter so much at the end of a tenancy? What's it linked to?

SPEAKER_01 2:19

They're a binding document that represents the condition of a property at the start and can provide a basis for damage, dilapidations, wear and tear at the end of a tenancy. Exactly.

SPEAKER_00 2:32

And in terms of in what should be included in a proper inventory, every room, every fixture and fitting in that room, cleanliness, condition of the walls, garden, garden, meter readings, keys.

SPEAKER_01 2:47

As many photographs as you like.

SPEAKER_00 2:49

Yeah. All of which go to make up a I suppose it's a picture, isn't it? It's a picture of the property that you've got to do. Yeah. Snapshot at a given moment in time. And that's what's relied on. So what's the importance then of detail, vague against specific description? So um if there was a take a wall that's slightly marked, how would you describe that on an inventory?

SPEAKER_01 3:21

Uh a wall, white painted, scuff marks in certain areas, see photograph. Yeah.

SPEAKER_00 3:28

So the photograph will show what the scuffs are, and the description is just setting out the the basics of it. Yeah. Correct. Okay, all right. Do you use good, fair, poor?

SPEAKER_01 3:41

Are they I do? If carpets are approaching their past their sell by date, I will put showing marks of fair wear and tear, uh, or good or fair. It's it's a loose expression, isn't it? But which means nothing when you think about it. What does fair mean? Yes, a very subjective.

SPEAKER_00 4:03

Yeah.

SPEAKER_01 4:03

Yeah.

SPEAKER_00 4:04

Yeah. Okay, photos and videos. How much would you say is enough? Uh I don't use videos.

SPEAKER_01 4:13

Photographs, you can on average two or three bed property, you can add maybe 20 or 30 photographs to any inventory at least, I would think.

SPEAKER_00 4:22

Yeah. No, I I agree with you. Do you think do you think videos will be a a way forward or I don't know many agents that use a video?

SPEAKER_01 4:31

Not for video, not for inventories. Why? No, well, uh a photograph in a way is you have to pause a video to get a specific shot. A photograph is a snapshot, you don't have to pause, it's just it is what it is.

SPEAKER_00 4:42

Yeah. But a photo on its own isn't sufficient, is it? And written on its own really doesn't do it. It's a combination of the two. Yeah, it is very much so. So in terms of in terms of inventories, why they matter, what's the again, how important is it that the tenant goes through that inventory when they first move in? Massively important.

SPEAKER_01 5:10

And what are they what are they looking to do? To make any comments or amendments they need or think are are worthy additions to it, add them to the document, sign it, send it back. Why do you think tenants sometimes struggle to sometimes 90% of my tenants do not send it back within the required seven days, no idea.

SPEAKER_00 5:29

No.

SPEAKER_01 5:30

Do you think they just don't understand the importance of it? Partly that. I think people leave busy lives and it wouldn't be high on the list of priorities. But it should be, really. Most times it wouldn't be, but if there's if there's a problem, it would would be.

SPEAKER_00 5:45

Yeah. And in terms of the move out, again, we have talked about this in previous episodes. Do you end up with a side-by-side comparison of you know, you have the ingoing inventory and you compare it to what you see?

SPEAKER_01 6:00

Uh well, I do that on the walk around and take photographs of areas I feel different from. I have the inventory with me and will take photographs of areas I feel are different, marked or damaged.

unknown 6:10

Okay.

SPEAKER_01 6:11

Lift it on a toilet, have a look inside. Oh, not been clean for a long time. Absolutely. Why'd they do that? Yes.

SPEAKER_00 6:17

So, question for you. Me? Yeah, for you. Who should prepare the inventory? The landlord, the agent, or a third party.

SPEAKER_01 6:29

Okay, if you can afford it and it works as a business model, and a third-party agent.

SPEAKER_00 6:36

Why? Why do you say that?

SPEAKER_01 6:37

Well, I use one I use one rarely, but if I've got a a four-bedroom house furnished, that's it's a pain in the backside doing an inventory for a house that big. A professional inventory clerk is used that day in, day out, and they can provide a really comprehensive, detailed inventory, whether it's a two or three or four-bed house. Um I sometimes use that if I feel as I get an instinctive feeling about areas of contention, maybe. But I'll uh have an independent inventory done. But no, um landlord definitely not. I think the agent needs to do it. Or an employee of the agency.

SPEAKER_00 7:17

Okay. And I I think you're right. I think there is there are inventory providers out there, but where does that sit then in terms of um I suppose liability? Is that if you get a third-party inventory provider to produce your inventory and the tenant then raises issues against that, where where would you sit with that?

SPEAKER_01 7:45

Well, you'd have to assume presume that the inventory clerk your company you're using is competent and not likely to be professionally negligent. So if would that's a good question? If an independent third party inventory was produced and the tenant made three or four changes to it, would you go back to the inventory company that produced it, or would you check on yourself?

SPEAKER_00 8:09

It it's difficult, isn't it, in terms of trying to get that balance right between independence, accuracy. If you do an inventory and there are issues with it or things that you've perhaps missed, then you know it's down to you, isn't it? Whereas if you have a third party do it and they miss out, then you almost feel, oh gosh, you know, I wish I'd done it myself. So it is a is a difficult one, really. I one in a hundred I give to somebody else to do. Okay. Um I think that's a discussion that we might have in a future podcast. Maybe we'll get one of our third party inventory providers in to talk through how they do it and how they would deal with some of the issues that that we've talked about. So, yeah, that's one to uh perhaps watch out for. So talk me through in okay, I and I bet again you must have loads of examples of this. Give me some examples of mistakes that have been made with inventories where a landlord has perhaps said you no no, don't worry about it, I'll save the money of getting inventory done, I'll produce it myself.

SPEAKER_01 9:25

Well, they wouldn't have a they're unlikely to have a tem a template of an inventory to use because if they're thinking of cutting costs like that, they wouldn't bother buying a template. If they're no experience in doing inventories, then they're going to be short on detail. Four walls and the ceilings, not adequate description for a living room. They're unlikely to take photographs or enough photographs, so I'm not saying they all would, but the likelihood is that if they're looking to penny pinch, then they're not going to do a proper job.

SPEAKER_00 9:59

No, I I agree. I think one of the things that I find when I'm talking to to a new landlord is you know helping them to understand the importance that the inventory has in terms of the whole tenancy process. And you know, there are some really key documents, aren't there, in terms of setting a tenancy up and an inventory. Lots of people sort of don't see it as important, but it is a fundamental document to go alongside well, it's the major bone of contention in any tenancy.

SPEAKER_01 10:40

Speed of um maintenance repairs is is one, but it's it's way, way below an inventory. Lack a lack of a good inventory, the problems, potential problems that can cause.

SPEAKER_00 10:51

How long does an inventory generally take, do you think, to do it, do it well? I don't know, let's take, for example, a two-bedroom terraced house, two bathrooms.

SPEAKER_01 11:01

Well, on average, a two-bedroom house, probably two hours, thirty minutes, and a three-bed I would say three hours. Why? Attention to detail is so important in these inventories. You're right.

SPEAKER_00 11:12

The attention to detail is actually critical in terms of delivering a report that you can hang your hat on. So if it's not clearly recorded at the start, it's very hard to argue at the end. The inventory is your evidence. Thanks for tuning in to this week's episode of the All Things Property Podcast. If you found this episode useful, don't forget to subscribe, like, and share. These things really help us reach the people who need to hear this advice. See you next week.