Posts with tag: inventories

Independent Inventories Should Back the Fitness for Habitation Bill, the AIIC Insists

Published On: January 11, 2019 at 9:00 am

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Independent inventories and the clerks that create them should back the upcoming Homes (Fitness for Human Habitation) Bill, according to Danny Zane, the Chair of the Association of Independent Inventory Clerks (AIIC).

Independent inventory reports already cover safety and compliance throughout rental properties.

Renting, in both the social and private sectors, is not fit for purpose, the AIIC claims. It has found that too many tenants live in unsafe conditions. In total, over one million private and social tenancies (home to about 2.5 to three million people, including children) have Category 1 hazards.

According to the 2015/16 English Housing Survey, the number of properties with a Category 1 hazard under the Housing Health and Safety Rating System (HHSRS), which is defined as a “serious and immediate risk to a person’s health and safety”, included:

  • 244,122 social rental homes
  • 794,600 private rental homes

Zane says: “As such, as a profession, we believe this Bill is hugely important for the future of tenancies in the UK, ensuring safety and the protection of both private and social tenants. Furthermore, we believe that we have a significant contribution to make in the implementation and enforcement of this Bill as the sector moves forward.”

At present, inventory clerks function as safety and compliance officers. At the beginning of tenancies, for instance, they:

  • Check that smoke and carbon monoxide detectors are installed where required, and power test them
  • Look for the Gas Safety Certificate and the date of such
  • Check all soft furnishings for the correct labelling
  • Assure that all pull cords meet safety criteria
  • Note any potential trip hazards
  • Note any mould issues in the property

Zane claims: “Accordingly, it is clear that our role, while enabling landlords to protect their investments and the tenancy itself, is an essential part of the safety and compliance procedures for all aspects of tenancies.

Independent Inventories Should Back the Fitness for Habitation Bill, the AIIC Insists

“As such, it would seem that the obvious next step in the rented sector and tenancy legislation would be to make sure impartial inventory reports are complied and agreed with by all parties at the start of the tenancy, and ideally are made mandatory.”

In the meantime, Zane believes that, at the very least, agents must be made to state who has compiled their reports, and be transparent about their relationship with the organisation or person, and/or the property itself.

Unfortunately, the upcoming introduction of the letting agent fee ban has left tenants vulnerable to partial reports that would not stand up in disputes, as the AIIC is now seeing agents making money through seemingly independent inventory companies that are, in reality, not independent and, instead, serve to boost the income of the agent.

Moreover, there is further discussion to be had around transparency aiding tenants’ knowledge of their rights, so that they are aware that inventory reports can be carried out by independent clerks where they may have been organised and carried out by the agent or landlord themselves, and can therefore be far from impartial and legitimate.

As an organisation, the AIIC serves the largest letting agencies in the UK, and therefore believes that it has a powerful role to play in this aspect of housing policy.

If you do not use an independent inventory clerk, then follow our comprehensive guide to compiling reports: https://www.landlordnews.co.uk/guides/a-landlords-guide-to-inventories-and-avoiding-disputes/

Are Property MOTs the Next Step for Rental Regulation?

Published On: January 9, 2019 at 10:30 am

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The introduction of MOT-style certificates would represent the next logical step towards raising overall standards in the private rental sector, according to No Letting Go, a provider of inventory services.

The suggestion for MOT reports of rental properties was put forward as part of a major review of the private rental sector conducted by Dr. Julie Rugg and David Rhodes, titled The Evolving Private Rented Sector: Its Contribution and Potential.

MOT-style reports would indicate whether a property is fit for letting and the system would ensure that all private rental housing would be required to meet a minimum standard.

It has already been confirmed that the Government will review private rental sector health and safety regulations in 2019. And the Chief Executive of industry trade body ARLA Propertymark (the Association of Residential Letting Agents), David Cox, has already called for MOT reports to be introduced as part of this review, in order to make the sector’s health and safety regulations less complicated and more practical.

Furthermore, the concept of MOT-style reports for the private rental sector also fully suits the Homes (Fitness for Human Habitation) Bill, which is set to become law this spring. The Bill will require homes to be fit for human habitation before being let, with the aim of reducing problems such as damp, mould and unsafe living conditions.

The legislation will also give tenants powers to take legal action against their landlord in the court for breach of contract if their property is not fit for human habitation.

Nick Lyons, the CEO and Founder of No Letting Go, says: “Property MOT reports are a fantastic idea. As we can see from the work the Government is doing around the private rental sector, this innovation would fit squarely with their aims and mark another step towards raising the standard of privately rented properties.

Are Property MOTs the Next Step for Rental Regulation?

“A uniform and easy-to-understand system would provide clarity for landlords and tenants, helping to eradicate poorly maintained homes with health and safety issues from the private rental sector.”

Lyons adds that property MOTs would also complement all-important inventory reports.

“An MOT report, ensuring a property meets a minimum standard, alongside an independently and professionally compiled inventory, would ensure that everything about a property’s condition and contents is suitably documented at the start of a tenancy,” he explains. “This would protect all sides of the rental transaction, and reduce the chances of either landlords or tenants being unfairly left out of pocket at the end of a contract.”

As more people rent for longer, expectations of private rental housing are on the rise, Lyons adds.

“Landlords should no longer be able to get away with letting shabby properties to tenants with no other choice,” he insists. “The vast majority of tenants are now looking for their landlords to provide accommodation that they can treat as their home, potentially for the long-term, and the Government can help to make this a reality by ensuring that all properties are let to a minimum standard.”

What it Takes to be an Inventory Clerk

Published On: December 17, 2018 at 10:00 am

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If you’re thinking of becoming an independent inventory clerk, then you must be aware of what it takes. The Association of Independent Inventory Clerks (AIIC) has spoken to its members to find out…

Being an inventory clerk goes beyond writing an impartial and detailed report; it’s about customer service, ingenuity, safety and good dose of tactfulness, according to the AIIC’s Chairman and the Managing Director of My Property Inventories, Danny Zane.

Landlords, letting agents and tenants all know that the role of an inventory clerk is to note meter readings, the condition of a property (including its walls, fixtures, fittings and furniture), whether fire safety labels on soft furnishings are present, and whether smoke and carbon monoxide alarms are in working order.

So, if you were an inventory clerk, what would you be keeping in your bag?

“I just thought about the stuff I keep in the car: replacement batteries, charging cable for my phone, a change of top and leggings, a small towel, dry shampoo and a hair brush, amongst other things,” says one AIIC member. “I could tell you the story of the fridge that meant I was very glad to have a change of clothes. And what to say of the house where the tenant left the heating on so high that, in the end, I had to reach for the towel and dry shampoo!”

Another adds: “One of our clients asked us to carry a ladder to every job in order to twist non-working light bulbs to see if they are just loose or actually blown. They also asked us if we were prepared to change the batteries of the smoke alarms whilst on the job, so we now carry spare batteries, too!”

What it Takes to be an Inventory Clerk

Properties vary in size and style, depending on the area. In some locations, buildings are more traditional, with very high ceilings and double-height stairwells. This may complicate the job of inventory clerks, who are instructed to read and note the expiry dates on smoke alarms from a sticker, which is usually on the side of the device.

Where using a ladder may not be possible, or may be deemed too risky for health and safety reasons, and insurance cover purposes, the selfie stick is invaluable – especially in unfurnished properties, where there is nothing to stand on to gain height.

“On a few occasions, alarms are situated more than four metres high, making it impossible to reach them, even with an extended pointer,” explains one member. “I say as much in my report, and add a photograph for the landlord and agent to see.”

Photographs may, however, not always show the issues that inventory clerks are reporting on, as it is difficult to show damage unless it is a major problem. When photos are used in a dispute, they must be high resolution and of a reasonable size.

Short days during the winter make the task especially troublesome, so landlords and agents should book inventory reports to be completed in daylight, for the best results.

On a positive note, photos are normally only used to back up what has been reported.

A member of the AIIC jokes: “My very best was a retro-fitted water meter under a sink. Fitted upside down, facing the back of the cupboard! I took a picture of the back of it and recommended the landlord use his spidey senses to read it.”

The good news is that there is no legal requirement to include photos in an inventory report, but AIIC members like to include them as supportive evidence. To be able to cover everything, one clerk took 346 photos of a two-bedroom furnished property, with five rooms, plus a hallway.

Meter readings are an important part of the inventory. They help new tenants and landlords of empty properties to confidently deal with discrepancies reported by utility suppliers.

However, they can be troublesome for some clerks: “I have my arachnophobia (the real thing, diagnosed and everything) under control-ish! But OMG, I hate openingwater meter covers. Gas and electricity boxes are bad enough! There is always at least one web-with-resident at the top, more below! The landlords I work for think it is funny. Landlords just look at me as though I have lost my mind (to be fair, they are probably right) and I do find it a bit daft myself.”

Another continues: “I find the only way to take a picture of a water meter is to lean completely over it, blocking the sun, then drop my arm into the recess and let the auto focus do the rest. This provided that the water meter is not covered by a HUGE ants’ nest, water, rubbish or, typically, by a car parked over it.”

The relevant water company maintains water meters on public areas, such as footpaths and highways. Inventory clerks attempting to read meters located in the pavements are responsible for any damage that they may cause to the meter itself, or injury that they may cause to other people in the process of reading the meters.

Zane observes that, when AIIC members cannot read a water meter, but can locate it, they are always advised to take a photo, so that their landlord or agent can clearly see why. Clerks should also ask their instructing principle for the exact location and the meter reference number at the time of booking. This will enable them to identify the right meter where no flat labels are applied, especially in blocks of flats.

It is surprising how many tenants go ahead with changes to their property without their landlord’s consent, even when a tenancy agreement carries a clause that the landlord’s consent must not be withheld unnecessarily.

Zane says: “The fact is, whether rented or owned, a property is a home. It is therefore understandable that tenants have a sense of ownership towards the property they live in. In reality, it is a false sense of ownership, which may cost them, and the landlord, dearly.”

However, there are times when inventory clerks must find a neutral ground that is both tactful and respectful.

An AIIC member recalls: “I have just completed a check-out where the tenants had been living for six years. They had a pet dog, which died during the tenancy, and they buried in the back garden with a small concrete marker stone with the pet’s name anddates etc. I left it as was and just commented at the end of the report that the grave was present.”

After hearing the accounts of these inventory clerks, do you believe that you have what it takes to enter the industry? Let us know!

Why Independent Inventory Clerks will be Essential Following the Lettings Fee Ban

Published On: November 26, 2018 at 11:09 am

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Categories: Tenant Fees Ban

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When the lettings fee ban comes into force for landlords and letting agents next year, independent inventory clerks may prove essential to the smoothness of managing rental properties.

News about rogue landlords and agents letting properties that are unfit for habitation, withholding money without cause, or charging extortionate fees while having little duty of care for tenants have led to a loss of confidence in the private rental sector, along with heaps of legislation.

Why Independent Inventory Clerks will be Essential Following the Lettings Fee Ban

Why Independent Inventory Clerks will be Essential Following the Lettings Fee Ban

Danny Zane, the Chairman of the Association of Independent Inventory Clerks (AIIC), believes: “A negative perception feeds into mistrust and disputes. That is why most letting agents seek out AIIC members as a quality assurance in their inventory process.”

In 2019, landlords and agents may no longer be able to charge fees to tenants under the proposed lettings fee ban. Different agents will use different strategies to deal with this; most will find ways to keep costs down. A positive perception will help them do just that, as word of mouth is a powerful tool – it means that people come to you.

Independent letting agents are already well positioned, as they are likely to live and work in the area that they let properties, so will have a deeper understanding of their communities. This allows them to sell the local amenities, as well as a home, building trust, relationships and their reputations.

“Independent agents have a lot in common with independent inventory clerks, creating a strong business alignment: our members’ independence gives the parties confidence that things are reported solely based on professional knowledge and expertise in an unbiased manner,” Zane says.

Corporate letting agents, too, have been active. The current stigma surrounding the industry has led many to self-regulate, in the hope that this will change the public’s negative perception. Another way to seed trust and enhance their reputation would be to engage with an independent inventory clerk for properties that they manage, market and/or let, even if they have an in-house inventory service.

Zane continues: “Because our members are seen in the marketplace as being fair, impartial and having no strings attached, they can help letting agents position themselves more positively in the public’s mind.”

Even landlords who manage their properties themselves cannot be sure that a positive relationship with their tenants will be as positive at the end of a tenancy.

“Our members always take the time to explain to tenants the inner working of an inventory report, and answer questions that may trouble both tenants and landlords, reflecting positively on the letting agent,” Zane adds. “A good relationship between the parties is vital and mutually beneficial, and I believe our members are part of that.”

Landlords, if you compile your own inventories, we urge you to read our guide on creating a professional report: https://www.landlordnews.co.uk/guides/a-landlords-guide-to-inventories-and-avoiding-disputes/

Inventory Clerks Subject to Abuse when Parties Do Not Agree

Published On: November 19, 2018 at 10:58 am

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Independent inventory clerks can be subject to abuse when parties within the lettings sector do not agree, according to a statement by the Association of Independent Inventory Clerks (AIIC).

The organisation reminds letting agents, landlords and tenants that one of the reasons that it engages its members is because it is independent.

Danny Zane, the Chairman of the AIIC, says: “As an association, we like to know what drives our members.

“Time and again, our members tell us that they are proud of having no direct links to the landlord, agent or tenant, because this allows them to carry out their job in the manner that is professional, impartial and fair.”

Members of the AIIC are experts in their field and know their market well. They understand that the majority of landlords are not professional landlords and use their portfolios as their pension pot, that tenants’ financial situation or personal circumstances may change, and, equally, that letting agents must make a living.

“On occasions, our members are put under pressure by one of the parties to make changes to their report, and receive verbal abuse or threats of no payment if the changes the party requests are not made,” Zane says. “Most of our members are self-employed and are well aware that their own name is at stake if they are found to be at fault.”

He explains: “As the chair of the AIIC, I would like to remind landlords, tenants and agents that they normally have seven days to bring any omission or inaccuracy to the attention of the clerk. If there is a disagreement as to why the clerk has reported damage, fair tear and wear etc., they should get in touch with the clerk in writing and ask for clarifications. Our members are independent and unbiased, but are always willing to listen.”

The AIIC insists that it is important for the parties involved to be present at check-ins and check-outs wherever possible, let the clerk do their job, then ask the clerk all of the questions that they feel they need to, to understand the what, why, who and when.

“Our members are happy to go the extra mile and spend time talking to the parties if it can help reduce, and even remove, the chance of a dispute,” Zane adds.

“The AIIC understands that, sometimes, people view things differently, and has put in place a formal complaint and redress scheme in the event the dialogue between a member clerk and one of the parties breaks down. In general, the parties involved acknowledge that the unbiased and independent inventory report produced by our members has helped them start and end the tenancy on the right foot.”

If you decide to compile your own inventory, we have a comprehensive guide that will help you provide a professional, thorough document: https://www.landlordnews.co.uk/guides/a-landlords-guide-to-inventories-and-avoiding-disputes/

Lettings Sector Warned to be Cautious of For-Profit Inventory Associations

Published On: October 2, 2018 at 8:48 am

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The lettings sector, including landlords, agents and tenants, is being warned to be cautious of a rising number of companies claiming to be independent inventory trade bodies.

The Association of Independent Inventory Clerks (AIIC) says that these new businesses have been established to make money, while the AIIC is a not-for-profit organisation.

The AIIC argues that these so-called inventory trade bodies do not offer the correct level of protection for consumers and are damaging for the professional lettings industry.

“It’s a case of wolves in sheep’s clothing,” insists Danny Zane, the Chair of the AIIC. “These companies are masquerading as industry trade bodies when they are, in fact, for-profit ventures offering additional products and software solutions.”

He adds: “Unfortunately, these companies do not protect consumers in the way they should and could leave all parties involved in a rental transaction at risk of significant issues further down the line.”

The AIIC explains that, as the private rental sector continues to grow, more companies claiming to be industry associations have sprung up, and property professionals should be cautious about which organisations they partner with.

The trade body reminds all property professionals and consumers that the presence of an independent, professionally compiled inventory could be invaluable.

An inventory report confirms the condition of a rental property at the beginning and end of a tenancy, therefore making it clear whether any deposit deductions must be made.

Landlords who don’t have a comprehensive inventory available at the end of a tenancy could find it difficult to make deductions, while tenants who rent from a private landlord who hasn’t provided an inventory could leave themselves open to unnecessary costs or disputes.

In the event of a dispute at the end of a tenancy, deposit protection schemes will use an inventory report as their primary source of evidence, further highlighting the importance of providing a detailed and impartial report from a reputable source.

Zane explains: “Letting a property is becoming increasingly expensive and the private rented sector is becoming more widely regulated. Therefore, commissioning an independently compiled inventory from a clerk who is a member of an organisation like the AIIC is vitally important to protect a landlord’s investment and provide tenants with the required level of protection.”

If you decide to compile your own inventory, we have created a comprehensive guide to help you produce a document that protects both you and your tenants: https://landlordnews.co.uk/guides/a-landlords-guide-to-inventories-and-avoiding-disputes/