Why do I need an inventory?

From 6 April 2007, all deposits (for rent up to £25,000 per annum) taken by landlords and letting agents for Assured Shorthold Tenancies in England and Wales, must be protected by a tenancy deposit protection scheme.

The Government awarded contracts to the three companies to run the new Tenancy Deposit Protections Schemes;

The Deposit Protection Service (The DPS)

Tenancy Deposit Solutions Ltd (TDSL)

The Tenancy Deposit Scheme (TDS)

After Check-Out, landlord and tenant will be asked to agree the terms of the deposit return. If they do not agree on any deductions to be made, (ie. there is a dispute) it will be referred to the new adjudication services.

Adjudicators will review all documents (inventories, check-in schedules, check- out reports etc) before reaching judgements on disputes. It is therefore vital that all evidence is full, detailed, unbiased and preferably independent.

The new legislation is designed to protect tenants.

Landlords will now be required to ‘prove their case’ if they wish to deduct from tenants' deposits.

In short, if you have a properly compiled inventory you will be in a far stronger position to make your case for retaining all or part of the deposit in the case of a dispute.

Please remember you still need an inventory even if you are renting out unfurnished accommodation...what happens when a tenant paints your magnolia walls bright pink or tiles are found to be cracked in the bathroom or a door is broken?

Note that it is not necessary to have a fresh inventory made every time you have a new tenant.