Independent inventories are critical to successful tenancies, agents have been advised.

The Association of Independent Inventory Clerks (AIIC) emphasised that bitter court action arising from disputes between landlords and tenants can be easily avoided through a “thorough, professional” independent inventory. A qualified, impartial inventory clerk with no potential bias can offer protection and confidence to both parties at the start of a prospective tenancy, the AIIC added.

“An inventory is a vital part of the letting process because it establishes the condition of a property at the beginning and at the end of a tenancy,” said Daniel Evans, AIIC chair. Evans also pointed out that the inventory will be used as the primary piece of evidence by deposit scheme arbitrators or a court of law if there is any dispute further down the line, and it is the landlord’s responsibility to prove that the tenant has caused damage to the property and that deductions from the deposit should be made.

“If the inventory contains omissions or is lacking in the necessary detail, the landlord or agent might find it very difficult to prove that deterioration has been the fault of the tenant,” Evans said. “And the tenant is much more likely to trust the process if it can be demonstrated from the outset that the inventory clerk is independent of the landlord or agent.”

Sometimes known as a check-in report, an inventory must be agreed and signed off by the tenant and should feature detailed images demonstrating the scale of any flaws in the property before the tenant moves in, the AIIC said. The size of stains on carpets or marks on furniture can be shown by including a measuring rule or even a hand, for example.

“Without these indicators, there will be no way of knowing whether there has been further deterioration by the time the tenant comes to check out,” Evans said. “That could be caused by reasonable wear and tear, but if there has been further damage caused deliberately or by negligence, the inventory is the only means of establishing that fact.”

The AIIC pointed to figures showing that 3% of tenancies in the UK end in dispute over the return of deposits and the most common reason is lack of cleaning, followed by damage. According to The Dispute Service (TDS), its Insured Deposit Scheme received 15,116 dispute applications in 2020/21, while its Custodial Scheme adjudicated on 1,660.

However, although only a comparatively small number of tenancies end in dispute, it’s in the interest of the landlord or agent to do everything they can to reduce the chances of disagreement over deductions, the AIIC said.

“Top of the list should be an impartial inventory. If landlords and agents do this, everybody knows where they stand from day one,” Evans added. “If landlords or agents don’t have an inventory or what they do have is incomplete, they are immediately on the back foot in any negotiation when the tenancy ends,” Evans warned.