Landlord News

Higher Deposits Reinforce the Need for Good Inventories, Insists AIIC

Em Morley - November 10, 2016

Higher deposits for private tenants are reinforcing the need for good inventories, insists the Association of Independent Inventory Clerks (AIIC).

The Deposit Protection Service (DPS) recently revealed that between April and June, the average tenant paid a deposit of £970.48 when moving into a rental property.

Higher Deposits Reinforce the Need for Good Inventories, Insists AIIC

Higher Deposits Reinforce the Need for Good Inventories, Insists AIIC

This is almost 5% higher than the average deposit amount recorded between January and March, and over 10% higher on an annual basis.

According to the DPS’ data, the average deposit cost in the capital rises to a whopping £1,800.

The AIIC warns that as the cost of deposits continues rising, landlords and tenants cannot afford to start a tenancy without an independently compiled inventory.

Inventories outline the condition and contents of a property at the start of the tenancy, and should be signed and agreed by the tenant at check-in.

This guide will help you create a professional and comprehensive inventory: /guide-compiling-good-inventory/

The Chair of the AIIC, Patricia Barber, says: “With the average renter now paying a deposit of almost £1,000 to rent a property in the UK, it’s vital that an independent inventory is carried out in order to protect both landlords and tenants.”

Now that there are hundreds, and even thousands, of pounds worth of deposits at stake in the average tenancy, deposit deductions or disputes at the end of a contract could be costly for both parties.

Good inventories can help landlords, or their letting agents, determine the condition of the rental property at the end of a tenancy, and any subsequent deposit deductions that need to be made.

Should a deposit dispute occur, a professional and thorough inventory will help the landlord’s chosen protection scheme make the correct and fairest judgement.

“Landlords who do not have a comprehensive inventory to hand at the end of a tenancy could make it extremely difficult for themselves to claim back funds for damages and lost items,” Barber explains.

She also advises tenants to take extra care when checking the inventory, to ensure that all items listed are present.

She says: “In the event items listed on the inventory are broken or lost, it can often be cheaper for the tenant to replace them, rather than waiting till the end of the tenancy.”

Landlords, always make sure that your inventory is thorough, professional, and easy to comprehend.