A comprehensive inventory and condition report is a vital tool for any Landlord & Tenants, and we make it easy to create these documents. The check-in report should provide both an inventory of the property and its contents and a schedule of cleanliness and condition at the start of the tenancy. The check-out report enables all parties to identify any deterioration in the contents, cleanliness, and condition of the property during the tenancy.

In deciding any claim against a tenancy deposit for issues such as cleaning or damage, all parties to a dispute are entitled to rely upon reasonably detailed check-in and check-out reports as being key documents recording the cleanliness and condition of a property and its contents at the start and end of the tenancy.

That said, without good quality and highly detailed check-in and check-out report, it can be extremely difficult to persuade an adjudicator - as well as a tenant - that deductions from the tenancy deposit are justified. This is because it is much more difficult to prove the property’s cleanliness and condition both at the start and end of the tenancy and the extent to which these may have deteriorated. An adjudicator will consider whether the parties have put forward any other evidence to show the property’s cleanliness and condition – such as invoices to show that the property was cleaned before a tenant moved in. Advertising particulars produced to a market property will not however be sufficiently detailed to be used as an inventory; they are also not an accurate record of property on the day the tenancy actually starts.

The check-in report should describe the property and its contents in high detail. This is best achieved by providing a general description of the property and its contents, provided together with an opening summary of the overall standard of cleanliness and condition. The main body of the report should comprise a more detailed description of each room starting at the main entrance and working logically through the accommodation on each floor. A check-out report following the same format as the check-in report, or one that combines both the check-in/check-out comments on each page, provides a more straightforward means of comparing the condition of the property. Once again, an opening summary of the standard of cleanliness and condition provides a useful overview of the property at the end of the tenancy. Utility readings and oil levels should be recorded and keys checked off.

Photographs should be used to supplement the written word. Photographs are most useful as supplementary evidence when used to provide a ‘before and after’ comparison of, for instance, a garden or to show the extent of damage to a floor covering, item of furniture or kitchen worktop. Remember that photographs will be affected by the time they are taken, available lighting, and weather conditions. Consider these factors before deciding when to complete a check-in or check-out report.

Where things like appliances are mentioned, it can be useful to record makes and models (essential for checking that the same item has been left at the end of the tenancy), which will also help in assessing costs for replacement or compensation where items are damaged. The garden or outside space, including any driveway, boundary fencing, garage or outbuilding to be included in the tenancy, should also be listed and the condition noted. It is surprising how often the outside of a property seems to be overlooked or added almost as an afterthought. Utility readings should be recorded including the level of any oil tank with a photocopy or photograph of all the keys provided. Remember to record the location of utility meters – including their serial numbers – and stopcocks/isolation switches. Wording such as ‘professionally cleaned’ or ‘cleaned to domestic standard’ is preferable to coded abbreviations or a numbered scale. Descriptions such as ‘bright and breezy’ or ‘sparkle clean’ are not considered useful and are best avoided!

In deciding any claim a landlord is not entitled to betterment. This in simple terms means a landlord is not entitled to benefit from an improvement or enhancement in value of the property at the tenant’s expense unless this had been specifically agreed beforehand. Clearly a landlord would benefit if an award was made on a ‘new for old’ basis. Allowance must therefore be made for the age of an item at the start of the tenancy, the length of the tenancy and the usual life expectancy of the item. Industry guidelines normally suggest that decorations in a hall, stairs, kitchen and bathroom have a useful life of between two and three years whilst living rooms and bedrooms have between four and six years. The life expectancy of carpets will vary dependent upon the quality however for a medium quality carpet in a rental property this is up to ten years.

Fair Wear and Tear In making a claim the landlord must allow for normal fair wear and tear. It is a generally accepted principle that the level of wear and tear to be expected in a rental property will be higher than that expected in an owner occupied property. However tenants will still be liable for cleaning which is not considered to be wear and tear. The tenant has a basic duty to return the property at the end of the tenancy in a similar condition to that at the start, ‘fair wear and tear excepted’. A tenant may not therefore be held responsible for changes to the property (other than for cleaning) caused by reasonable use. Fair wear and tear can be defined as the level of deterioration that a landlord might reasonably expect a tenant to cause through their everyday normal use of the property over the period of the tenancy. Reasonable everyday usage will be determined by such factors as the length of the tenancy, the type and number of tenants, the different parts of the property and the quality of the property or contents.

For instance a greater allowance should be made for fair wear and tear if a property is let for several years to a family with young children and pets than say for a six month let to a single person. Likewise the level of wear and tear to be expected to the decorations in a hallway, kitchen or bathroom will be greater than in say a bedroom or study. The level of wear and tear to be expected to a carpet will depend both on its location and on its quality. However any damage that is deemed to be beyond the scope of the tenant’s reasonable everyday use is unlikely to be considered as fair wear and tear. Some examples might include:

• Soiling to a carpet is not wear and tear but fraying is more likely to be;
• A gouge to a wall from the handle of a door opened against it is not wear and tear;
• Limescale to a sink or dirt in a washing machine soap dispenser is not wear and tear;
• A bowing shelf in a cupboard could be wear and tear but will depend on the quality of the cupboard and what was being put in it (for example, was it overloaded).

The importance of a properly completed check-in report and check-out report cannot be understated. This guide has considered the principles of best practice in the production and use of these reports by landlords, agents and inventory clerks in the context of deposit dispute resolution.

However for further detail and a full account of the working process you may wish to refer to the following for further guidance:

• A Guide to the Tenancy Deposit Scheme’ by David Smith (available from the TDS website)
• A Guide to Deposits, Disputes and Damages’ (also available from the TDS website)
• A Guide to Best Practice for Inventory Providers’ produced in conjunction with Asset Skills, and used by The Association of Professional Inventory Providers as the basis for their training and standards on behalf of ARLA, NAEA and RICS
• The Dogs Trust provides a range of useful guidance written for landlords, tenants and agents about letting a property with pets at Lets with Pets
Reference – www.thedisputeservice.com