Why is an Inventory so vital?

On 6th April 2007, the Department of Communities and Local Government introduced new Housing Law which has changed forever the handling of Tenants' deposits.

The change in legislation means that no Landlord is entitled to take the damage deposit for a new Assured Short hold Tenancy of his/her property without being a member of a deposit Insurance scheme, either directly or via their agent, or making use of a custodial scheme.

This change to legislation serves the purpose of safeguarding Tenant's deposits against unfair deductions made by the Landlord. The scheme administrators are responsible for resolving disputes over proposed deductions from a Tenant's deposit, and in the case of a custodial scheme holds the deposit itself only releasing it once deductions or damages have been agreed between both parties.

Potentially this leaves Landlords open to real danger. The greatest decider in any dispute over the use of deposit monies is impartial, hard evidence, whether it be photographic or written. This means that if Tenants damage a property during the Tenancy, the Landlord must be able to prove to the relevant scheme administrators that the property was in good condition at the beginning of the Tenancy.

There is only one way for this to be proven and that is with an accurate and detailed Inventory. Without an Inventory in place, how will the Landlord be protected when the Tenants move out and an accurately comparable Check-out Report is not possible?

With a professionally created inventory agreed by the Tenant at the start of the Tenancy, a Landlord can fairly claim for damage to his property, and this sort of documentation is vital now as independent adjudicators may be called upon to decide damages awarded.