Many property investors who are buying property for investment purposes intend to rent it out, either on a short or long-term basis as renting a property can provide a good return on an investment. For anyone who’s going to have tenants living in their property, it’s essential that you produce an inventory first, before anyone moves in.

An inventory is a detailed list of everything that you supply within the property and needs to be completed by all landlords, whether you’re letting the property on a furnished, part-furnished or unfurnished basis.

The inventory is useful for tenants, as they know what is and isn’t included in the property, but it’s also very important for you, the landlord, as it helps you keep track of items that are missing, damaged or have changed when tenants are leaving. The inventory can be used as evidence for tenant deposit claim issues and a copy should be signed and kept by you, your tenants and a letting agent from the start of a letting period.

As well as details of particular items in the property, it’s also useful to use the inventory to make a note of serial numbers, models and manufacturers of electrical and household goods, plus details of any existing scrapes or damage to items.

For more details on the importance of inventories, read our previous post, on how to create an inventory for your rental property.

Check out the other posts in our A to Z of property investment:   

A is for Appreciation – http://www.investment-properties-for-sale.co.uk/2010/03/18/a-to-z-of-property-investing-a-is-for-appreciation/
B is for Buy-to-Let – http://www.investment-properties-for-sale.co.uk/2010/03/26/a-to-z-of-property-investing-b-is-for-buy-to-let/
C is for Contracts – http://www.investment-properties-for-sale.co.uk/2010/04/16/a-to-z-of-property-investing-c-is-for-contracts/
D is for Deals – http://www.investment-properties-for-sale.co.uk/2010/05/13/a-to-z-of-property-investing-d-is-for-deals/
E is for Experience – http://www.investment-properties-for-sale.co.uk/2010/05/31/a-to-z-of-property-investing-e-is-for-experience/
F is for Freehold – http://www.investment-properties-for-sale.co.uk/2010/06/28/a-to-z-of-property-investing-f-is-for-freehold/
G is for Goals – http://www.investment-properties-for-sale.co.uk/2010/07/a-to-z-of-property-investing-g-is-for-goals/
H is for Home Improvement – http://www.investment-properties-for-sale.co.uk/2010/10/a-to-z-of-property-investing-h-is-for-home-improvement/

Not only does this help give the tenants an idea as to what is included in their rental, and what isn’t, but it’s also useful to have at the end of a tenancy, so you can identify any missing items, items that have changed, any damage caused to items or any extra items left behind that don’t belong there.

Creating Your Inventory

It may seem a bit tedious having to create an inventory, but it’s a worthwhile task, especially if any disputes occur further down the line.

Go through the property room by room and make a note of everything that is included in the rental for your tenants – curtains, kitchen equipment, furniture etc.

Make a detailed list of all the items, including:

* Details of the manufacturer, model and serial numbers.
* A good description of the item.
* Details of any bumps, scraps or defects the item currently has.

Many landlords are now choosing to photograph the inventory items too, as photos can be used at a later date if any issues arise over what was included or what condition it was in.

If you are going to photograph items, it’s a good idea to date printed photos. If you have any items of particular value, or simply want to be extra careful, then you could even sign and date them and get them counter-signed by the tenant at the start of the tenancy.

In addition to photo, you could also video the property, highlighting which rooms certain items are in.

A copy of the completed inventory should be given to your tenant, as well as the original being kept by you or your letting agent. Hopefully problems won’t occur, but if there are any minor – or major – quibbles, then the inventory can be highly valuable to have.