Inventories – An Valuable Tool
At The End Of A Tenancy

The end of a tenancy can be a very stressful time for landlords and even more stressful for tenants without Tenants Liability insurance, as this is when the rental property is examined to check if deductions need to be made from the tenants deposit funds for damage caused to the property that cannot be put down to normal wear and tear.

The end of tenancy check out is one of the most important steps in the management of rental properties and it is essential to determine the overall condition that properties are in and identifies any maintenance, repair, cleaning or damage issues that may have arisen during the term of the tenant’s residence in a property.

If necessary, the end of tenancy check out report can be used as the basis of a proposal to appropriate deductions for damages from the tenant’s deposit funds. Without performing a detailed end of tenancy check out report it is almost impossible to determine responsibility.

The end of tenancy check out report should be compiled as soon as possible after the tenant has removed their own furniture and personal effects and they have finished cleaning the property, this is usually on the last day of the tenancy.The tenant may agree to attend the end of tenancy check out in person or return the keys to the letting agent so the inspection can be carried out without them being in attendance, however, it is always preferable for the tenant to be present, as they can often offer an explanation for any matters that may arise. The end of tenancy inspection should be carried out in the same order as listed on the check in inventory and differences should be recorded on a room-by-room basis. Even if there are no problems identified, it is good practice to include photographs of every room to show the area has been inspected.

The tenant doesn’t have to attend the end of tenancy check out inspection, but they should be offered the opportunity to be present as it can be useful to confirm certain details and inform the inspector of any maintenance issues which wouldn’t necessarily be noted on a visual inspection – e.g. a faulty central heating system.

The following information should be recorded on an end of tenancy check out report:

• Tenant contact details and forwarding address
• Final gas and electric meter readings and name of energy and utility suppliers
• Number of keys to the property returned and these should be checked against original sets issued at the start of the tenancy
• Cleaning issues – If professional cleaning has been performed the receipt should be provided
• Tenants personal belongings left behind that need to be removed
• Identify any supplied items that appear to be missing from the property
• Damage not recorded on the inventory taken at the start of the tenancy
• Previously identified issues which may have deteriorated during the term of the tenancy
• Maintenance issues which need attention
• Note if specific conditions were set out in the tenancy agreement – e.g. flea treatments due to be conducted at the end of the tenancy for tenants with pets.

Best practice recommends an independent person carries out the end of tenancy check out inspection because the value of a report carried out by the landlord or letting agent may be discounted in the event of a dispute, as they may be regarded as being biased.

Electrical appliances, plumbing or heating systems are generally not tested during the end of tenancy check out so it is possible that faults or damage caused by the outgoing tenant may not be noticed until the next tenant moves in. Additions and amendments are usually permitted up to 7 days after the original report was compiled.

The end of tenancy check out inspection report should be sent to the landlord or the letting agent so that they are aware of the findings, and it is at this point that the decision to reclaim costs from the tenant’s deposit are made to correct any issues identified. The report should also be sent to the outgoing tenant so that they have a chance to explain anything noted.

This is where specialist insurance for tenants is a good idea, as it can help to protect the tenant’s deposit funds against accidental rental property damage claims.

Accidents do happen and paying for damage to rental property can be expensive for tenants, even if the damage is accidental, it is still the tenants responsibility to pay for the repairs or the landlord will be entitled deduct the costs for repairs from the tenant’s deposit.

Tenants liability insurance covers accidental damage claims up to £2,500 (GBP) for just £60 per year.

Tenants liability insurance costs less than a night out and provides a full 12 months insurance cover against accidental damage to rental property including; furniture, fittings and fixtures.

Landlords should not encourage tenants to leave things to chance, sign them up for Tenants Liability insurance and include the cost in the monthly rental price, providing all parties with a little peace of mind, safe in the knowledge that there will be no nasty surprises at the end of the tenancy.

This was written by Mike Clarke. Posted on at 11:30 am. Filed under Insurance. Tagged accidental damage, c;leaning, central heating systems, check in inventory, check out inspection, damage, deductions, deposit, dispute, electric, electrical appliances, end of tenancy, end of tenancy check out report, explanation, fittings, fixtures, furniture, Gas, inventory, issues, keys, landlord, Legal 4 Landlords, letting agent, liability, maintenance, management, meter readings, pets, plumbing, protect tenant deposit, providers, removed, rental property, repairs, report, residence, specialist insurance, suppliers, tenancy, tenancy agreement, tenant, tenants personal belongings, term, utility, wear and tear. Bookmark the permalink. Follow comments here with the RSS feed. Both comments and trackbacks are currently closed.