Inventories – Are they really worth it?

Apparently, the answer is yes, no or maybe. It simply depends upon who you are. 

The three TDP scheme members recently published a guide for Landlords and Tenants, entitled ‘A Guide To Tenancy Deposits, Disputes and Damages’ (download full document at www.thedpsblog.com). Ostensibly the document restates the lettings process fundamentals:  1. deposit monies belong to tenant  2. onus or burden of proof rests with landlord to demonstrate entitlement to retain deposit monies  3. support evidence is critical, and yes, this means an  inventory amongst other things.

The report clearly states (at Item 2 ‘Types of Evidence’)  ’The importance of a properly completed inventory cannot be underestimated. It must be robust and defensible if it is to be held up as a proper indicator of the facts and therefore viewed as acceptable by an adjudicator or Court’ ‘  Tenancy deposit protection schemes do not disregard, out of hand, inventories that are not prepared by independent companies or individuals. However, they are likely to place less weight on their contents’

Like the proverbial ‘man from Del Monte’, clearly the TDP members sound a resounding ‘yes’ to independent, well-prepared/presented inventories being really worth it.

The key role players, that is letting agents/landlords, however, fall into the ‘no or maybe’ categories. Why? Either they are (or choose to be) ignorant of the above facts or simply blase about the consequences of non-compliance. This, of course, is not true of all agents. EPI works along with many local agents in the West Midlands area who fully appreciate the true value of professional independent inventories. The challenge is convincing the doubters!

Of course, inventories are a revenue source. Many letting agents  simply, therefore, reject the idea of engaging a professional independent company purely on the ground that it is perceived as having an impact on a direct revenue stream. But does that stand scrutiny? Is it sensible, given the aforementioned report comments!

The facts are that outsourcing inventories is really a ‘win win’ package for letting agents. How so? 1. Staff released to concentrate on core business elements 2. Inventory cost known, profit guaranteed. 3. Professional quality report produced, with any future potential bias claim eliminated.

Perhaps, the time has come for those doubting letting agents to wise-up and replace their ‘no’ with a positive ‘yes’.

Landlords generally fall into the ‘maybe’ category. If they choose to engage a letting agent for their portfolio, maybe they will comply with the letting agent recommendations, but there are no guarantees. Generally driven by a money-saving (or cost cutting) mentality, it would appear that legislation will be the only method of enabling compliance and thus affording Landlords’ appropriate property protection.