What is good inventory management and do I need it?

Inventory management is one of those aspects of being a landlord that might seem like extra work, but it's actually one of the most important protective measures you can take. Here's everything you need to know about inventories and why they matter.

What is an Inventory?

An inventory is a detailed record of the condition and contents of a rental property at the start of a tenancy. It includes descriptions and photographs of every room, fixture, fitting, and item included in the property. Think of it as a snapshot in time that captures exactly what state the property was in when the tenant moved in.

Why Do You Need an Inventory?

Protection Against Disputes
The main purpose of an inventory is to protect both landlord and tenant in case of disputes at the end of the tenancy. Without an inventory, it's your word against the tenant's when it comes to:

• The condition of the property when they moved in
• What was damaged during the tenancy
• Whether fair wear and tear occurred
• What deposit deductions are justified

Evidence for Deposit Protection Schemes
When you need to make deductions from a tenant's deposit, the deposit protection scheme will require evidence. A professional inventory provides this evidence. Without it, you may struggle to justify any deductions, even for clear damage.

Insurance Claims
If you need to make an insurance claim for damage to your property, an inventory can serve as valuable evidence of the property's condition and contents before the incident occurred.

What Should Be Included in an Inventory?

A comprehensive inventory should include:

Room by Room Documentation
• Detailed descriptions of floors, walls, ceilings, and windows
• Condition of all fixtures and fittings
• State of decoration
• Cleanliness levels
• Any existing damage or wear

Appliances and White Goods
• Make and model of all appliances
• Working condition
• Any marks or damage
• Serial numbers where applicable

Furniture (if furnished)
• Description of each item
• Condition notes
• Any existing marks or damage

Outdoor Areas
• Garden condition
• Outbuildings and sheds
• Fences and gates
• Paving and pathways

Utilities and Services
• Meter readings for gas, electric, and water
• Boiler condition and service date
• Heating system functionality

Photographs and Videos
Modern inventories should include extensive photographic evidence, and increasingly video walkthroughs. These provide visual proof that descriptions are accurate and make disputes much easier to resolve.

Who Should Prepare the Inventory?

While landlords can prepare their own inventories, there are significant advantages to using a professional inventory service:

Professional Inventory Services
• Trained to spot issues landlords might miss
• Provide impartial, objective reports
• More likely to be accepted as evidence in disputes
• Often include professional photography
• Can be called as witnesses if disputes go to court

DIY Inventories
If you choose to do your own inventory:

• Be extremely thorough and detailed
• Take lots of photographs
• Use consistent terminology
• Be objective and fair
• Allow plenty of time to do it properly
• Have the tenant sign it as accurate

When Should Inventories Be Done?

Check-In Inventory
This should be completed before or on the day the tenant moves in. Ideally, the tenant should be present and should sign to confirm they agree with the report. Give them a few days to raise any concerns about the accuracy.

Mid-Term Inspections
For longer tenancies, periodic inspections (typically every 6 months) help monitor the property's condition and can flag any issues before they become serious problems.

Check-Out Inventory
This is conducted when the tenant moves out and should be compared directly with the check-in inventory to identify any changes, damage, or missing items.

The Cost vs Benefit Analysis

Professional Inventory Costs
Professional inventories typically cost between £100-£300 depending on property size and location. While this might seem like an unnecessary expense, consider:

• The average deposit dispute involves £500-£1000
• Without proper evidence, you may lose the entire amount
• The cost is often a one-time expense that protects you for the entire tenancy
• It saves you time and stress

The Risk of Not Having One
Without an inventory:

• You have virtually no grounds to make deposit deductions
• Disputes are much more likely
• You'll spend more time arguing with tenants
• You may lose money you're legitimately owed
• Your professional reputation could suffer

What About Check-Out Reports?

A check-out report is just as important as the check-in inventory. This is where you'll identify:

• Any damage beyond fair wear and tear
• Missing items
• Cleaning issues
• Any changes to the property

The check-out should be conducted after the tenant has moved out and returned the keys. Compare it directly with the check-in inventory to establish what has changed.

Fair Wear and Tear vs Damage

One key aspect of inventory management is understanding the difference between fair wear and tear and damage:

Fair Wear and Tear
• Minor scuffs on walls from normal living
• Carpet wear in high-traffic areas
• Faded curtains or paintwork from sunlight
• Minor marks on worktops from normal use

Damage
• Holes in walls
• Broken fixtures or appliances
• Stained carpets from spills
• Burns or significant marks
• Broken windows or doors

A good inventory helps establish the baseline so you can fairly assess what constitutes damage at the end of the tenancy.

PropHome's Approach to Inventory Management

At PropHome, we understand that thorough inventory management is essential for protecting your investment. Our fully managed service includes:

• Professional check-in inventories with detailed photography
• Regular property inspections throughout the tenancy
• Comprehensive check-out reports
• Expert advice on deposit deductions
• Support with dispute resolution

We work with experienced inventory professionals who understand what's needed to create robust, court-ready documentation.

The Bottom Line

Good inventory management isn't just nice to have – it's essential for any landlord who wants to protect their property and their investment. The small upfront cost of a professional inventory can save you thousands in lost deposit deductions and hours of stress dealing with disputes.

Whether you manage your property yourself or use a letting agent, make sure inventories are done properly. Your future self will thank you when a tenant dispute arises and you have all the evidence you need to resolve it fairly.

For more information about our comprehensive property management services, call 0345 8686868 or email info@prophome.co.uk.