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What is a Property Inventory Report?

February 27, 2019 By Pixel Leave a Comment

A Property inventory is a detailed inspection of a property describing all the contents within & their condition as seen. The details recorded in the inspection is known as the the Inventory Report. This article will help to dispel the property inventory report, the types of reports, and surrounding topics.

First let’s start by defining a Property Inventory report and who typically uses or needs a property Inventory report.

What is a Property Inventory Report?

A property inventory report is compiled from an inspection of the property resulting in a report normally performed by a trained and accredited inventory clerk. The report contains descriptions and conditions of all items in the property (fixed and movable) sometimes referred to as fixtures and fittings. The state of these are always noted as seen at the time of the appointment.

Property inventory reports are typically used as an accompanying document to short hold tenancy agreements. A property inventory report serves as a benchmark for all parties going into the tenancy agreement. It can be seen as a reference document to be used come the end of the tenancy agreement.

The lettings market has seen a relatively recent rise in the number of property inventory reports produced and related services. This can be attributed to the introduction of multiple government backed tenancy deposit protection (TDP) schemes. The schemes will provide a third party adjudicator should a disagreement arise

What is included in a property inventory report ?

All meter readings, keys, smoke and carbon monoxide detectors are detailed where possible and all descriptions are usually accompanied with dated photographs. Inspections usually include the garden and any outbuildings which will be also captured in the report. This detailed document enables accurate assessments to be made about damage and cleaning issues liable to the tenant or landlord.

A Meter Reading from an Inventory Rerport
Meter readings are captured where possible

Why have a property inventory report ?

According the the national association of inventory professionals,

“Should there be an end of tenancy dispute the inventory will be used as the primary piece of evidence by deposit scheme arbitrators or in a court of law”

A spokesperson for Arla Property mark states,

“A detailed inventory will help avoid disputes, whilst any such dispute that does arise about missing contents or condition of the property at the end of the tenancy can be more easily resolve“

In addition there has been introduction of rental legislations passed, governing multiple areas including but not limited to smoke and carbon monoxide alarm regulations and fair wear and tear.

These new  regulations extend the existing requirements for annual Gas safety, Electrical safety, Legionella safety, HMO licensing etc.

Evidence of the necessary Gas Safety certificates and other documents is often captured in the Inventory report. Therefore the inventory report demonstrates evidence of compliance and provides signed confirmation from all parties.

In short, a property inventory report signed and accepted by all parties, helps to demonstrate evidence of compliance with regards to these types of regulations. 

Check List from a Check out Report
Reports can include check lists and details of smoke alarm testing and evidence of compliance

Rental Insurance schemes

Recently we have seen emerging new rental insurance schemes offered to the tenants regarding deposit free lettings. The alternative to the security deposit is a rental insurance which can provide cover twice as high as the deposit. An inventory Report is a crucial part of the process in making a claim.

What could cause a tenancy dispute?

The possibilities to end up in a tenancy dispute are rather surprisingly high. Different views on wear and tear, unauthorised pet keeping, odours, outstanding utility bills, issues with cleanliness, vacating the property late etc. The TDS have a library of short and full length case studies on disputes handled. You can pick your read of the case studies on their website according to the relevant dispute category.

How much detail is in the Inventory Report?

Inventories vary greatly in level of detail they present, in style, in format and structure. There are tick box formats and simplified forms which omit the descriptions of items but indicate cleanliness, damage and working order. Then there are comprehensive reports. These have dedicated sections for item description, condition and photograph. They usually include the Schedule of Condition – a statement about the overall condition of the property.

schedule of condition
Reports should include a Schedule of Condition – a statement about the overall condition of the property.

What to expect from a Comprehensive inventory report?

Even comprehensive report can vary significantly in their presentation. The best way to choose is to request a Sample Report and book according to your own needs. In general there are certain things that every inventory report should have.

Some reports will just about qualify as detailed, others will be very detailed or lengthy.

Details the comprehensive reports may capture.

Hairline cracks in walls and ceilings may be noted – but it is generally hardly something that a tenant will cause. On the other hand – curtain poles should be stated if with finials or not, radiators if with controls or not etc.

Some providers refer to conditions more generically than others. It is unfortunate when pinhead chips to flooring or worktop were not spotted at Check In but are noted at Check out. This is why both parties should be allowed 5-7 days from receiving the Check In Inventory report to add comments with photographic evidence. 

The opportunity for the tenant and landlord to check the report, approve it or amend it is rather fair and what’s more it prevents disputes.

An Inventory report should be a fair and empowering tool preventing rental disputes.

Why it can be helpful to provide tenant and Landlord details ?

It is useful to provide your inventory clerk with the tenants names and details. Surely you can forward the report to them yourself, but don’t forget they have 5-7 days to approve it – from the time they receive the inventory report, not from the time it was produced. If the inventory clerks possess the tenant details, the report is delivered to all parties as soon as its produced.

Is it possible to extend details in the Inventory Report?

This varies by service provider meaning the levels of detail in your report is possible to extend. Many companies like Pixel Inventory will have extras to offer. If you have a brand new property with full on brand new appliances you may consider purchasing a Checklist noting in writing serial numbers of all appliances within your asset.

Decorating your apartment with branded vases, sculptures, canvas or presenting it with fine china dinnerware may lead you to consider discussing a quote for extra items to be noted in detail.

On the contrary some items have relatively short life span and if in use already it is unnecessary to note them in great detail.

Choosing extra property inventory report services
consider discussing a quote for extra items to be noted in detail.

What Code of ethics do trained inventory clerks follow?

Property Inventory is performed usually on the basis of a sole worker in the private space of someones home. All inventory clerks are therefore required to hold personal liability and professional indemnity insurance. Some providers will request from the clerks a criminal record check. All Pixel Inventory clerks have personal indemnity and public liability insurance. Beside this, you can find Code of Practice for Property Inventory Providers on the Arla Property Mark website

There are several association including but not limited to the AIIC and ARLA that outline standards of practice as guidelines for property inventory clerks.

The Association Of Independent Inventory Clerks AIIC logoARLA Inventories logo

Inspections are normally performed by a trained and accredited inventory clerk.

What is a Check In?

The main purpose of Check In is to inform the tenant about the Inventory Inspection which just took place and often hand them the keys to the property. Pixel Inventory will Check-in the tenants at the end of the inspection, when the clerk has become familiar with the state of the property.

What Is a Check Out Report?

Check Out Report is directly produced off the back of the Original Inventory from the start of the tenancy. The Inspector compares the conditions of the items at the Check In with their condition at the Check Out. Changes are noted and responsibilities are appointed. This is accompanied with photographic evidence. Suggestions about compensation, cleaning, replacement or maintenance may be presented.

What is a Check Out?

The main purpose of the Check Out is to inform the tenant about the changes on the premises which are being noted in the Report. There is opportunity to answer questions about wear and tear and related matters. Once the Check Out is completed, tenants hand back the keys and no longer have access to the property.

What happens after Check Out?

Usually at this stage the report has been signed and agreed by all parties. If there are points in question it is up to the parties to find an agreement. The report provides a background with evidence and suggestions to work from. Should the parties disagree, each has the right to raise a dispute with the organization holding the deposit.

What happens after a dispute is raised?

In short, once you raise a dispute, the deposit scheme you registered with will confirm the receipt of your request. The other party in dispute will be requested to respond. The amount disputed will be held by the scheme until an adjudicator decides how the money will be apportioned. It will generally take up to 28 days to decide about this.

We hope that you will never need to find out more about rental disputes.
Our mission is to bring Tenants and Landlords at the same page, empower them and prevent disagreements.

How to Make Most of Your Inventory

October 25, 2018 By Pixel Leave a Comment

Thinking about this subject takes us actually to the time before the inventory takes place.

Usually the case is such that previous tenants are moving out.

Once you accept or give your tenants notice,  it turns out to be quite important to kindly guide them in reviewing their Check In inventory along with the Tenancy agreement.

The incumbents get reminded of what condition the property needs to be in at the time they vacate. Thus you may sort out many of the potential delays and complications getting your property ready for the next incomers.

Sometimes tenants forget that it is their responsibility to ensure the end of tenancy clean before they hand back the keys. With regards to this, every inventory has tenants notes on check out. When reviewed, the occupants can appoint all areas of concern to the cleaners they employ.

Further from here, reading through the initial inventory helps to predict whether there may be any deposit deductions suggested.

Cleaning and renovations. It is vital to arrange for your inventory after all works are completed and property is just waiting for its new inhabitants.

Should any delays on renovations and cleans arise it is best to reschedule the inventory appointment.

This way you avoid the clerk either being unable to perform the inspection – which results in call out charges, or you will end up with a report highlighting all that has been not done yet and obscuring clerk’s work.

Similarly, if your new tenants already moved in, unpacked etc. it will be very hard to estimate the level of cleanliness.  What more, there will be number of areas which won’t be inspected due the circumstances. Consequently, the report is loosing on its value.

Now. Being well organised and  having done a good quality inventory is one thing, having supporting papers for it another. When it comes to compensation charges things are not so straightforward. There are multiple variables considered in order to conclude a reasonable deduction cost:

  • State & age of the item at the beginning of the tenancy
  • Price & quality of the item (for shelf life query the manufacturer)
  • Length & character of the tenancy
  • Character & use of the item (e.g. fresh paint in the bedroom will be expected to stay in good condition for longer than a paint in the hallway)

Letting a property is a business as any other so having your books in good order will help in case you need to count any deductions or go into a dispute.

Keeping and recording receipts of items you provide for your tenants should be simply part of the business you are running.

Furthermore, as cleaning issues seem to be one of the main reasons tenants and landlords end up in a dispute the best way to support your case is having receipts of purchased services in place too.

Tenancy agreements vary slightly but they should clearly state the expectations towards the tenants as well as their responsibilities.

At last…

Although proud and involved with your asset, it is important to manage your expectations with regards to the tenants. Understanding different aspects of wear and tear in a let property helps you map your ground.

The Business of a Tenancy Deposit Dispute

October 18, 2018 By Pixel Leave a Comment

In 2017 private renting sector in UK was estimated to nearly 5 million homes, over 4 million properties rented each year.

The value of protected tenancy deposits for the year 2017 crossed 3,5 million GBP.  At the same time there was almost 31 000 adjudications completed in the same year.

Tenancy Deposit Scheme (TDS) evaluated 50 percent increase in rental dispute adjudications between the years 2010 and 2017.

See the break down of the reasons for disputes in percentages:

Cleaning- 56

Damage- 51

Decoration- 28

Rent Arrears- 20

Gardening- 16

What to keep in mind when raising a dispute?

  1. The dispute will be resolved only in terms of the amounts of the deposit, never higher than the total value of the deposit. If you wish to protect your property over the limit of the deposit you will need to insure your property.
  2. The disputed amount of the deposit is held by the TDS from the point the dispute is raised until the adjudication process is completed.
  3. The Adjudicator as a part of the Tenancy Deposit Scheme can not consider cases where tenants claim damage caused by landlord (due to disrepair in the property). Neither those where occupiers withhold a portion of the rent, from which they funded the repair , which was believed to be the landlords responsibility. In these instances tenants are advised to take legal action.
  4. When raising a claim it is needed to provide evidence for the claims such as comprehensive Inventory and Check Out Report, quotes, invoices, receipts etc. The explanation of the claim should be clear, brief and factual. To find out more information about how to present a case please visit deposit disputes.
  5. Once the TDS receive a dispute application, the other party will be requested to respond. It will take up to 28 days to examine the case and make a decision about how the money should be apportioned.

Pixel Inventory works closely with the approach of TDS towards rental disputes. We are familiar with the case studies and ensure that our reports represent the best evidence in case of a rental dispute.

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Preparing Property Inventory Yourself, Cost Free

October 10, 2018 By Pixel Leave a Comment

Are you ready to compile your own inventory report?

Although there is plenty Property Inventory Providers, you can decide to handle it yourself. You are happy to invest a bit of time in order to save the money and you do well what you care about.

After all it requires mainly common sense and good attention to detail.

We have created set of questions which will lead you to assess yourself as an property inspector. What more this questionnaire will give you hints on how to improve your inventory skills.

Let’s see how prepared you are to carry out this task:

  1. Would you in your report include the general overview of the property and its state of cleanliness?
  2. Would you dedicate a section to meter readings?
  3. In your report is there a photograph of the keys handed to the tenant?
  4. Do you usually take a photograph and comment on Smoke/ Carbon monoxide detectors in the inventoried property?
  5. Does your report include items descriptions side by side with their up to date condition?
  6. Are you able to step out of your position as landlord and assess your property with an objective eye?
  7. Would you in your report include all fixtures, fittings and movable items or simply items you regard as highly valuable?
  8. Are you familiar with some wear & tear guidelines?
  9. Are you able to produce a Check Out report which compares directly the condition of the items at the beginning of the tenancy with their condition at the Check Out?
  10. Do you feel confident to appoint responsibilities with regards to the changes as per Check Out?
  11. Would you make sure that all sections in your report are numbered?

If you responded YES to all our questions we are very impressed. Congratulations, you seem to be well informed and somewhat experienced. Frankly you appear appropriately educated to carry out an inventory for your asset.

If you responded YES to at least 9 questions we regard you as Landlord who did some homework, is quite informed and would most likely prepare a decent Check In Report.

If you answered YES to less than 9 questions, you are on the right path and now you are conscious of the room for improvement.

SO IS THAT ALL IT TAKES?  Is that what Property Inventory training is about?

Well, clearly the training will cover all the topics we queried about above.

And there is more.

Trained Inventory providers follow certain working patterns in carrying out their jobs, which may seem unnecessary while compiling a report, however it becomes rather helpful when carrying out the Check Out.

With experience they become highly skilled in item descriptions and judgement for wear & tear/ damage. They are trained to appoint responsibilities and they are aware of guidelines for compensation charges.

They hold in their pockets skills and little hacks just like any other established professional.

Tenants And Inventories

October 9, 2018 By Pixel Leave a Comment

At first sight you may think that Property Inventory Services were invented to benefit Property Owners.

Clearly, landlords have understandable agenda to protect themselves against potential damages in properties they let.

True.

On the other hand, Inventories are here to protect your deposits. Up to date state of the property including the items within are noted and at the time of Check Out they will be reassessed with  an objective eye and  references to wear & tear.

How to avoid unpleasant surprises at the Check Out?

First and foremost –  as much as we appreciate that moving itself is a massive time and energy consumer,  we can’t stress enough that checking on your inventory will prevent later disappointments. Inventory clerks are surely trained, skilled and experienced professionals who  will capture a highly reflective image of your new home, however the devil never sleeps and there may be a thing or 2 they missed. Do not overestimate the human nature and its ability to concentrate.

Inventories went through a massive evolution since the first deposit was officially registered. Now You –  as a tenant have the opportunity to bring your own input to the Check In Inventory Report, should that be needed. You have the space between 5 & 7 days (depends on the provider) to gather photographic evidence with description which can be included as your observation about what was missed by the clerk, should this be the case.

Speaking of the input you may bring,  let us help you to see what you may wish to double check in the property:

  • tiny pinhead chips to the sanitary wear and tiled flooring, these may get easily missed
  • cleanliness of the curtains/blinds/lampshades
  •  tiny chips to hard worktop surfaces and tiled shelves/ window sills
  • chipped doors and frames above your eye level

It’s not so necessary to comment on hairline cracks in ceilings and walls as those are very unlikely to be caused by tenants.

In addition, your Inventory includes notes which should prepare you for the Check Out in the future. Do not forget to plan your Check Out ahead. Often tenants dismiss the fact that they Checked In to a professionally cleaned property which means they should also Check Out of the property professionally cleaned. Reviewing your original Inventory once you hand in the notice  may help you to discover what to bring into your cleaners attention.  It is generally a good idea to keep your receipt for the clean performed.

At last, should your landlord present you with an Inventory they compiled themselves and you would like to amend it, do not forget to make Dated Detailed Photographs of the issues you found. Accompany each photograph with explanation and forward it to your landlord.

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