3__

SECTION 1

SECTION 2

2.1

2.2

2.3

2.5

SECTION 3

3.1

3.2 3.3 3.4 3.5

lntroduction

6

What is this handbook about?

Terminology definitions Who is this handbook for?

6 6

The requirements and provisions for professional inventories

I

Learning objectives

8

WHY IS AN INVENTORY NEEDED? Legislation WHAT IS THE INVENTORY PROCESS? Consistency of personnel The importance of timing

8 o

10 11

lnventory provider and landlord ln-house or external inventory providers

11

Requirements Safety THE EXTERNAL INVENTORY PROVIDER (EIP) Terms and Conditions

12

HEALTH 8 SAFEry ISSUES

15

Answers to self check questions

16

The lnventory and Schedule of Condition

17

Learning objectives

17

WHEN IS AN INVENTORY REOUIRED? New tenants Tenant swaps AT WHAT POINT SHOULD THE INVENTORY BE TAKEN? A PROPERry NOT READY FOR TENANTS

17

THE ROLE OF THE AGENT THE RECORDING OF AN INVENTORY

COMPILING THE INVENTORY

lnitial preparation

11

13 13

14

17 17

18 18 19

20 20 21 21 21

22 23

Formatting and specific detail Phraseology and vocabulary The outside

23 23 26 26

nstruction books/ma n uals

26

FULLY FITTED ROOMS

2l

Kitchens Appliances Bathrooms Central heating boilers and hot water tanks

27 27 29 29

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3.7

I 10

THE INVENTORY PROVIDER

Voice recognition technology Photography Use of abbreviations The document The disclaimer 3.6

7

A Guideto Best Practicefor lnventory Providers OARLAAsset Skills NAEA RICS 2007 updated 2011

3.8

3.9 3.10

COMMENTS ON CONDITION Estimations and generalisations Things to look for

29

METER READINGS

31

Leaving the property

31

30

30

THE HOUSING HEALTH AND SAFEry RATING SYSTEM (HHSRS) " *Not Scotland

32

3.11

A LANDLORD AT THE INVENTORY RECORDING

3.12

OBLIGATIONS TO CHECK FURNITURE AND APPLIANCES

32 32 33

Testing electrical, heating and plumbing appliances 3.13

FURTHER CONSIDERATIONS

Photocopying of keys At the end of the process Answers to self check questions

SECTION 4

4.1

4.2 4.3

4.4 4.5

34 34 34 35

The check in

37

Learning objectives

37

THE IMPORTANCE OF THE CHECK IN How the check in helps avoid problems WHAT IS INVOLVED AND WHAT SHOULD BE DONE? Amendments

37 37 38 39

DISAGREEMENTS

A problem with the inventory A problem with the property

40 40 40

Communication with the agent

41

ATTENDANCE AT THE CHECK IN THE PROCEDURE IF NO CHECK IN IS CONDUCTED The tenant who wants to check the property

41

42 42

before starting the tenancy 4.6

SECTION 5

5.1

5.2

During the tenancy Answers to self check questions

43 43 44

The interim visit/periodic tenancy check

45

Learning objectives

45

THE PURPOSE OF THE INTERIM VISIT TIMINGS AND GAINING ACCESS Problems with gaining agreement for access Refusing access

45 46

THE CHECK IN REPORT

Unrealistic visiting times 5.3 5.4

PREPARATION FOR THE VISIT THE PROPERry VISIT

Landlord liability 5.5

SECTION 6

6.1

6.2

47

47 47 48 49

lnformation

50 50

REPORT FINDINGS

51

Answers to self check questions

52

The check out

53

Learning objectives

53

ARRANGEMENTS WITH THE TENANTS ADVISING THE TENANT OF THEIR OBLIGATIONS

53 54

A Guide to Best Practice for lnventory Providers @ ARLA Asset Skills NAEA RICS 2007 updated 2011

6.3 6.4 6.5

6.6 6.7 6.8 6.9 6.10

SECTION 7

7.1

7.2

7.3

7.4

7.5

7.6

SECTION 8

SECTION 9

RELEVANT DOCUMENTATION WHEN A TENANT IS OR ISN'T PRESENT CONDUCTING THE CHECK OUT

55

What is being looked for and how Details to look for

57

ITEMS LEFT AT THE PROPERTY THE NEED FOR TENANI IF PRESENT, TO SIGN POSSESSION AND SECURITY OF THE PROPERry COMMUNICATING PROBLEMS TO THE AGENT THE CHECK OUT REPORT

61

Answers to self check questions

65

Damages

66

Learning objectives

66

HOLDING THE DEPOSIT As stakeholder* Not Scotland As agent for the landlord

66

BETTERMENT

56 56 57

62 63 63 63

67 67 67

Betterment - landlord Betterment - tenant THE LIABILIry OF THE PARTIES THE BASIS OF FAIR WEAR AND TEAR The length of the tenancy The number and ages of the tenants Condition and age of items when the tenancy starts Expected useful lifespan of the items Work carried out during the tenancy

67 67 68 69 69 69

ACTION

71

lmmediate action Missing items Recommendations to the landlord DAMAGE BY THE TENANT - APPORTIONING COSTS Repair or cleaning Tenants offering to go back to the property to clean Professionally clean versus domestically clean Replacement of the item if it is damaged beyond repair Example of 'useful lifespan' Compensation for the reduction in value of the item A guide to costs

72 72 72

7.7

MEDIATING BETWEEN THE PARTIES

7.8

TENANT DEPOSIT PROTECTION UNDER THE HOUSING ACT 2OO4 Custodial scheme lnsurance-based scheme Answers to self check questions

70 70 71

73 73 73 74 74 74 75 75 76 77 77

78 78

A Guide to Deposits, Disputes and Damages.

Guidance Prepared by the Approved Schemes May 2011

81

Specimen inventory

90

lnterim Visit report

103 106 107

Check out report

Glossary of terms

A Guide to Best Practice for lnventory Providers @ ARLAAsset Skills NAEA HICS 2007 updated 2011

ntro uction What is this handbook about?

This handbook is intended to provide a benchmark standard for all individuals and organisations involved in the provision of 'lnventories and Schedules of Condition' in the residential lettings sector. lt is also for anyone concerned with the associated processes relating to the provision of an inventory.

The contents of this handbook will set minimum standards of service and define the parameters of what those within the lettings process should be doing for their clients and end users.

By setting this standard individuals and organisations will have a benchmark against which they will be able to judge their own and others' performances and processes.

It is intended that the set standards will enable agents and inventory providers to be able to demonstrate their commitment to best practice within the industry to both landlords and tenants.

Terminology definitions A number of terms will be used throughout this handbook and a brief explanation is provided here: This will be used as an abbreviation of the full term which is 'lnventory and

'lnventory'

Schedule of Condition' and refers to the written document detailing the condition of and contents of a property to be let

Agent'

This will be used to denote a Residential Lettings Agent

'Landlord'

The legal owner of a property to be let

'Tenant'

The person or persons occupying a property under a tenancy

Applicant'

The person or persons who have agreed to take a tenancy but are not yet bound by the tenancy agreement

'Terms of Business'

Terms under which the landlord has instructed the agent to carry out certain duties on their behalf and which impose obligations on both parties

Agreement'

The tenancy agreement between the landlord and tenant

'lnventory Provider' or'lP'

The person or organisation compiling the inventory and/or undertaking any of the other tasks in the process

'Disclaimer or terms'

Relating to the inventory or process around the inventory that infer contractual obligations.The terms need to be balanced and fair in order to comply with the Unfair Terms in Consumer Contract Regulations 1999

'External lnventory Provider' A specialist individual or organisation independent of agent or landlord

or'ElP'

to whom some or all of the inventory processes involved may be outsourced

The singular will be used in this handbook but could apply to more than one person.

A Guide to Best Practice for lnventory Providers @ ARLA Asset Skills NAEA RICS 2007 updated 2011

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Who is this handbook for?

'

Residential lettings agents who outsource part or all of the five processes outlined at the beginning of Section 2.

They may outsource to more than one inventory provider.This handbook will provide a basis and a benchmark to all their contracted providers to ensure continuity and set standards.

'

Residential lettings agents who keep all or part of the five processes outlined at the beginning of Section 2 in-house. Again this handbook will provide a basis and a benchmark to document and demonstrate best practice.

'

lndependent inventory providers who may be working for one, or a number of, agents and private landlords. This handbook will give them a benchmark for an acceptable industry standard for all the five processes outlined at the beginning of Section 2.

A Guide to Best Practice for lnventory Providers O ARLA Asset Skills NAEA RICS 2007 updated 2011

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and provisions for professional inventories The importance of a professional inventory cannot be underestimated. A poorly prepared document can cause problems and potentially damage business relationships. An inadequate inventory may result in the agent or external inventory provider having to compensate the landlord for any losses they may have suffered as a result.

ln addition, a poor inventory will not be viewed as acceptable to an adjudicator or court. The inventory must be robust and defensible if it is to be held up as a proper indicator of the facts.

The agent has an obligation to the landlord and the tenant to provide a thorough and workable document

which shall be looked at in this section.

Learning objectives Having completed this section you will know and understand:

. why an inventory is needed . the processes involved for the duration of the tenancy . who can provide the inventory . the qualities needed to provide a professional inventory . the equipment needed to provide a professional inventory . the relationship between the agent and the independent inventory provider . the importance of terms and conditions . health and safety issues 2,1 WHY IS AN INVENTORY NEEDED? However well the tenant looks after the property it stands to reason that the condition will not be the same at the end of the tenancy as it was at the start.

The tenant is allowed to live peacefully without interference in the premises. By mere occupation this will cause wear and tear to flooring and carpets and other fixtures, fittings and decorations.

However, the property may suffer further because of the tenant's

. carelessness . negligence . misuse . deliberate damage Any tenancy agreement will provide for fair wear and tear during the tenancy and will also make the tenant liable for any breakages, missing items or damage to the property which are in excess of fair wear and tear (see Section 7).

A Guide to Best Practice for lnventory Providers O ARLAAsset Skills NAEA RICS 2007 updated 2011

The inventory process helps determine what changes have taken place during the timescale of the tenancy and to who or what those changes are attributable.

The inventory process comprises:

. recording the state of the property prior to the start of the tenancy . obtaining the tenant's agreement to the condition at the start of the tenancy . recording the condition at the end of the tenancy This information must be gathered in a standard and consistent way. This will allow a direct and valid comparison acceptable to all parties regarding the state of a rented property at the beginning and end of a tenancy. lt will also help the agent assess what changes have taken place and where responsibility lies.

Legislation The Tenants Deposit Scheme under the Housing Act 2004 came into being on 6th April 2007. lts implementation has changed the way deposits are held and the manner in which disputes are assessed and resolved. This will be covered in more detail later in this handbook.

Self check question 1

A landlord telephones you to say he has decided he does not want to pay for an inventory to be done. He says the property is unfurnished and he plans to use the details provided to hirn by the estate agents he purchased the property from. What advice would you give?

Compare your answer with that given at the end of this section.

2,ZWHAT IS THE INVENTORY PROCESS? There are various stages relating to the inventory provider's role. These stages are covered in more details in Sections 3-6, however a brief overview is given below: a) A visit to the rental property immediately before the start of the tenancy to record its condition, together with fixtures, fittings and contents and with relevant meter readings (the inventory).

b Attending the property with the new tenants at the start of the tenancy in order to make sure that they agree with the findings in (a) (the check in).

c) Visiting the property at the end of the tenancy or as soon as possible afterwards to compile another report comparing differences between the state of the property at that point with the original inventory (the check out).

d) Analysing the differences between the two reports (the check in and check out).

e) ln addition the inventory provider, agent or landlord may undertake one or more visits to the property during the tenancy to satisfy themselves the property is being looked after in an acceptable way and the terms of the tenancy agreement are being adhered to.These visits are not to be considered further inventory checks (interim visiVperiodic tenancy check).

A Guide to Best Practice for lnventory Providers O ARLA Asset Skills NAEA BICS 2007 updated 2011

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Consistency of personnel There are advantages and disadvantages in having the same person carrying out all the processes related to the tenancy - preparing the inventory, the check in, the interim visit and the check out.

The advantages are that at the interim visit and/or the check out the person who prepared the inventory is fully aware of what the standard of the property was at the start of the tenancy.

However, the inventory should be detailed enough to stand on its own without relying on the inventory provider's memory.

The advantage of having a separate person conducting the check in is they can act as a'second check' and monitor the standard of the original inventory preparation.

The importance of timing Timings are essential to ensure this process is as effective as possible. This requires the co-operation of both the landlord and the tenant.

As mentioned above, the inventory should be prepared as near to the start of the tenancy as possible (allowing time for printing). The landlord or agent has a responsibility to ensure the property is prepared for the inventory to be compiled.

This means the property should be in the state at which it is ready to be handed over to the tenants (this is covered in more detail in Section 3). So all outstanding work and repairs should have been completed.

It is not possible to construct an accurate inventory if work is still outstanding.

The agent has a duty to ensure that they manage the landlord's expectations regarding this.

a) Firstly, the agent should stress the importance of allowing sufficient time between tenancies for any work to be done. While landlords are keen to leave as little time as possible between tenancies they must be made aware that it is impractical to have tenancies 'back to back'.

b) Secondly, if the deposit is held by the agent as 'stakeholder' (see Section 7), then the tenant's deposit cannot be used without the consent of the tenant. lf there is a dispute regarding the costs following a check out then the landlord must be made aware that they would have to pay for the work required in order to facilitate the incoming tenant.

The landlord would then have to pursue their claim against the outgoing tenant as a separate issue.

Self check question 2

Explain the possible disadvantages in having different people carry out the inventory preparation, the check in and the check out.

Compare your answer with that given at the end of this section.

A Guide to Best Practice for lnventory Providers @ ARLA Asset Skills NAEA RICS 2007 updated 2011

2.3 THE INVENTORY PROVIDER ln theory any party should be able to provide an inventory.

HoweveL it must be kept in mind that at the end of the process the inventory may have to be used to settle a dispute between a landlord and tenant.

While there is no reason why a landlord cannot produce a completely fair and accurate inventory it does leave room for the argument of bias. Therefore it is best practice for the inventory to be produced by a

third party. ln this context there may also be an argument for the agent not producing the inventory at all. The agent, while having a duty of care to the tenant, is after all, working for the landlord. lf the agent is going to produce the inventory it makes sense for it to be produced by a person within the

organisation detached from the actual lettings service. (Many larger agents have dedicated inventory providers or property inspectors.)

The relationship between the inventory provider and the Iandlord The inventory provider has to be seen as independent from all parties.Whether they are directly employed by the landlord or are working for the agent (either as an employee or an independent) the system can only work if the inventory provider maintains a professional independence in matters pertaining to the state of the property and its contents.

However, this does not mean that the inventory provider cannot also assist the landlord by acting as their

eyes. At any stage of the process they may be able to spot problems with the property (not necessarily the responsibility of the tenant) which will help the landlord present the property to a tenant in a proper manner or may allow the landlord to undertake maintenance to prevent more permanent problems.

Examples of this would be noting that further cleaning or gardening was required because of an extended

time period between tenancies. Or at a check out noting the paint on the window frames was badly peeling. This would not be the liability of the tenant but would enable the landlord to ensure their property was maintained.

Advantages and disadvantages of in-house or external inventory providers The decision whether to outsource the inventory process will be up to the agent and there are considerations to be made for both. Some of these are listed below: External provider

. generally considered by the parties to be unbiased . they can be held liable for errors . it is their occupation and they are considered specialists . they are useful court witnesses . they can be expensive . they have other clients therefore other commitments ln-house provider

. they probably have a good knowledge of the property itself . they would be aware of how the tenancy progressed and whether there were problems . they could be more flexible with times . it can be more cost effective . any costs relating to errors would have to be borne by the agent . they could be accused of not being impartial

A Guide to Best Practice for lnventory Providers O ARLA Asset Skills NAEA RICS 2007 updated 201 1

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Requirements We will now look at what is needed to be a successful inventory provider whether in-house or independent, including personal qualities, insurance and equipment.

Oualities ln order to be a successful inventory provider certain qualities are required, including:

. an ability to be methodical - consistency can only be achieved with a structured and standard approach to the way in which inventories are recorded

. an eye for detail - it is the detail that makes an inventory comprehensive . independence of mind and the ability not to be browbeaten or swayed by any party to change their opinion lnsurance

An external inventory provider must be fully insured for all eventualities including . public liability insurance - in case they cause any damage to the property or injury to another by their actions or inactions . professional indemnity insurance - to protect themselves against errors that they could be sued for . car insurance that provides for the vehicle to be used in the course of business -driving to a property counts as work Equipment

. identification/business cards . an electronic recording device such as a voice recorder or handheld computer to record the inventory (methods or recording are discussed more fully in Section 3.5)

. a digital camera (if not an integral part of the electronic device as above) . a folder or clipboard as a base for writing . a supply of different coloured pens . a writing pad . a torch . spare batteries, tapes or memory cards for all electronic devices . small tape measure . standard keys:gas/electric meter key; T Bar key; Chubb star key; Fire Brigade Keys FB1 I 2 as a . . . . . . .

minimum and other FB keys as required (for opening meter cabinets or communal cupboards containing meters in blocks of flats) portable multi tool/Swiss army knife (for emergencies) a (digital) camera a hand cleaning method (wet wipes or cleaning gel) for cleaning hands after touching greasy cookers or dirty surfaces flea spray (on the basis of better to have and not use, no-one wants to bring fleas into their car or office) mobile telephone long stick or extendable pointer for checking battery operated smoke alarms shoe covers for use when carpets have been cleaned

A Guide to Best Practice for Inventory Providers @ ABLA Asset Skills NAEA RICS 2007 updated 201'l

Safety Whichever service the inventory provider is carrying out they will be meeting with people at empty properties or spending time alone in an empty property and every consideration should be given to personal safety.

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The guidelines and advice issued in the Lone Worker handbook produced by the Suzy Lamplugh Trust covers just such circumstances and can be obtained from www.suzylamplugh.org. ln addition company policy regarding personal safety should be strictly followed.

Self check question 3

Explain to a landlord who wants to prepare their own inventory why it is better to have someone else do this.

Compare your answer with that given at the end of this section.

2.4THE EXTERNAL INVENTORY PROVIDER (EIP} What is the relationship between the agent and the EIP?

. The EIP is usually appointed by, and works for, the agent and is contracted to perform various tasks relating to the inventory process.

. The cost of the EIP can either be borne by the agent (included in their fee) or is directly recovered in whole or in part from either the landlord or the tenant or a combination of the two.

. lt is important that if the costs are being charged separately to the landlord or tenant that the agent makes provision for the EIP to be paid. For example, a tenant might refuse to pay for the cost of the check out or the landlord might refuse to pay for an inventory if he withdrew his instructions at the last minute. lf the EIP has carried out the work under the instruction of the agent they are entitled to expect to be paid for this.

Generally an agent and an EIP build up an understanding and a useful working relationship that is of mutual benefit. ln particular when an EIP is working regularly for an agent they get to know how that agent works and what procedures they use and can often assist the whole process in various ways.

Most importantly the EIP should act as the eyes and ears of the agent. When an agent markets a properry often the last time they see it is when they took the applicant on the viewing. This could be as much as two months before the start of the tenancy. During that time the landlord may have undertaken various works. Furniture may have been added or removed or damage caused by damp or a leak.

Some other matters that should be reported back to the agent are:

. if the property is not clean . gardening work . safety issues like cracked or broken electric sockets . any issues surrounding security like broken/cracked glass in windows or doors Sometimes at the check in tenants are more open with an EIP and may let it slip that they intend to have pets or a further person living with them. The EIP can report back to the agent to make them aware the tenants may be, knowingly or unknowingly, about to breach their tenancy. The inventory provider should not enter into a discussion with the tenant concerning such matters, but merely report to their client, the agent or landlord. See CD photo 001.

A Guide to Best Practice for lnventory Providers @ ARLA Asset Skills NAEA RICS 2007 updated 2011

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Terms and Conditions As with any business relationship it is important that the EIP and the agent have an agreed set of Terms and Conditions (T8C). ldeally the EIP should hold a signed copy of the T&C for each of their clients and if the T&C are amended in any way the EIP should get either an addendum or a new version signed.

The TEC should set out clear criteria relating to the services offered so that all parties have no doubt what

the EIP will and will not do.

The basic points that should be covered are:

the services that can be provided - this would outline the scope and extent of what the inventory provider can do and also the limit of their duties or services. There may be restrictions on distance travelled and these should be clearly set out. Similarly there may be restrictions on what hours they are prepared to work (for example, Sundays, bank holidays or evenings) cost - there should be a clear pricing structure relating to the services offered based on the size of the property and whether it is furnished or unfurnished. There should be provision for individual quotes for heavily furnished or unusual properties payment terms -this should cover when the invoice will be raised and how long a period of credit they will require the timescales involved - what notice is required to book a job in and what amount of time it will take to provide printed reports? exclusions -a list of items that an EIP will not undertake (eg, roof spaces or areas not to be included in the tenancy) or circumstances in which they will not undertake a visit (eg, an interim visit to a property when the tenants are not at home but there is a dog in the property). Particular attention should be given to health and safety matters (see next heading) a clearly laid out policy regarding missed or delayed appointments by a tenant and what charging policy there is in place for this

a clearly laid out policy for dealing with disputes and complaints (eg, a landlord challenging the contents of a check out report) On the other side of the relationship the agent should also lay down certain conditions, which should include:

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their timescale relating to booking in jobs and a standard method for booking those jobs (eg, by email, telephone and written confirmation via a works order or the requirement for the maintenance of an updated job list etc.) their policy on keeping the EIP informed of changes or cancelled appointments what timescale they are prepared to accept for the return of completed reports

their requirements for collecting and returning keys

Self check question 4

Without referring back to the text, list four things that should be covered by the external inventory provider's terms and conditions of business. Explain why the agent should have sight of and agree to these terms.

Compare your answer with that given at the end of this section.

A Guide to Best Practice for lnventory Providers O ARLA Asset Skills NAEA RICS 2007 updated 2011

2.5 HEALTH AND SAFETY ISSUES The agent should understand what duties the inventory provider can or cannot undertake bearing in mind

the implications of safety in potentially hazardous situations. These could include:

. no requirement to inspect loft areas . no requirement to inspect cellars, unless they are accessible by a staircase, properly lit and . .

constitute a proper room included in the tenancy no requirement to move heavy items of furniture including appliances, beds and sofas (unless easily moved on castors and are in a room of sufficient size to comfortably move them) limitations placed on the size/weight of a mattress that should be lifted to inspect underneath. This would obviously depend on the size, strength and fitness of the inventory provider

. no requirement to inspect any cupboard or storage area above reasonable head height . no requirement to read meters above head height unless a fully functional set of stepladders is present and there is a safe area in which to set them up

. no requirement to read meters in a cellar or in areas under steps where it would be required to climb over rubbish or stored items to reach them

. no requirement to enter a property with a dog or any other animal present unless the owner is also present and the inventory provider is satisfied the animal is completely under control

. risks relating to goods falling out of overfilled cupboards . not to test electrical or gas appliances There should be a caveat on the inventory relating to these issues and the landlord client should also be made aware of this at the start of the relationship via the Terms and Conditions of Business.

There is a duty of care on all parties to provide a safe environment for the inventory provider to undertake their duties.

. The landlord has a duty to make sure the property is safe, not only for the inventory provider but for the tenant

. The agent has a duty to warn the inventory provider of any potential hazards in or around the property that should be avoided

. The tenant has a duty to advise any visitor to their property, including the inventory provider and agent, of any hazards or potential hazards, like a wet floor, broken glass in a window or door, or items left around that could be tripped over.

Self check question 5 Give an example of a potential hazard that an agent could advise the inventory provider of before they conduct a check-out.

Compare your answer with that given at the end of this section.

A Guide to Best Practice for lnventory Providers @ ARLA Asset Skills NAEA RICS 2007 updated 2011

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ANSWERS TO SELF CHECK OUESTIONS Self check question 1

. You would probably advise the landlord that an inventory is not just about the furniture in the . . .

property it is also a record of the condition of the decorations, fixtures and fittings.

You would have to point out that the estate agent's sale particulars would not be anywhere detailed enough to use as an inventory You should advise the landlord that he should regard the inventory as an investment and a protection for both the landlord and the tenant You should also point out that if there isn't an inventory or if the inventory was insufficient to provide a measure of what the property was like at the beginning of the tenancy he would be in a very weak position to defend any claim for damages he may want to make at the end of the tenancy

Self check question 2 The disadvantage could be that different inventory providers may have different views on the condition of a property and could conflict with the original inventory provider regarding terminology.

Self check question 3 Reasons why a landlord should not be encouraged to compile their own inventory could include the following: . compiling an inventory is a specialist job and unless the landlord is experienced in this field the inventory is not likely to be complete . the landlord may not see certain defects or items to be noted because they are too familiar with the property

o even if a landlord is being completely fair and unbiased when compiling the inventory the other parties may not perceive this to be the case

. a judge is unlikely to consider a document prepared by the landlord to be impartial Self check question 4 The items that should be included with an external inventory provider's terms of business are:

. the scope and extent of the services that can be provided . a clear pricing structure . what items or tasks may incur extra costs . payment terms . what timescales are required for instructions to be turned around . what areas the inventory provider will not include . safety issues The agent should be made aware of the terms that the inventory provider is working under so they can instruct them accordingly. ln addition they must know the pricing structure so this can be budgeted for.

Self check question 5 There are several potential hazards that could face the inventory provider at a check out and your answer may have included one of the following:

. the tenancy has not gone well and the tenants may be aggressive . the tenants turn out to be drug users and there is a possibility needles might be left lying around .

the propefi just before the end of the tenancy the tenants called to say the stair carpet was loose and could present a tripping hazard

A Guide to Best Practice for lnventory Providers O ARLAAsset Skills NAEA RICS 2007 updated 2011

e inventory an Schedule of Condition The previous section looked at the reasons for having an inventory and who can create one. This section will focus on the compilation of the inventory itself and the factors that can affect the timings and the way the inventory is drawn up.

Learning objectives Having completed this section you will know and understand: . when an inventory should be provided

. the optimum timings to prepare the inventory . potential problems that could delay the preparation . the recording of the document, abbreviations and disclaimers . the level of detail that is required . why a consistent formula is needed . the need for a high level of detail in specific areas . the necessity for meter readings . the potential impact of the Housing Health and Safety Rating System (HHSRS) legislation* *Does not apply in Scotland

3.1 WHEN IS AN INVENTORY REOUIRED? New tenants An inventory is necessary whenever a property is let out to tenants for the first time or when the property is let to different tenants. lt is not necessary to provide a new or updated inventory if an existing tenancy is renewed by a further fixed term contract or by reversion to a periodic tenancy.

Tenant swaps ln some cases, especially with student lets, a landlord or agent will allow one tenant to vacate and be replaced by a new tenant while the other original tenants remain in place. ln such a circumstance, and unless provision is made in the new tenancy agreement regarding liability for damages, it is advisable to provide an updated inventory. The inventory work should be undertaken as far as possible given the existing tenants will still be in residence. lt should include a full update and detail

on the room(s) to be occupied by the new tenant and all common areas. ln this way the outgoing and incoming tenant can decide between themselves about damages using the updated inventory as a guide to changes made against the original inventory. The cost of the updated inventory would be met by the tenants.

A Guide to Best Practice for lnventory Providers O ARLA Asset Skills NAEA RICS 2007 updated 2011

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3.2 AT WHAT POINT SHOULD THE INVENTORY BE TAKEN? An inventory is, in effect, a snapshot of the property at the time it is compiled and as such it should be undertaken as close as possible to the beginning of the tenancy.

However, as the finished printed version must be available for the beginning of the tenancy, time must be allowed for the typing of the document and the downloading of any photographs.

The inventory should be recorded when the property is in the state at which the tenant is able to move in.

. This means all repairs, renovations, decorations, cleaning and gardening should have been completed.

. All safety checks including gas and electricity should have taken place. . All furniture and other items should be in the property and in place. All items not to be included should be removed from the site.

The agent must make the landlord aware of the importance of having an accurate inventory. The landlord should also understand the significance of having everything ready.

However, if a property is ready for a new tenant several weeks before the start of the tenancy, the temptation to undertake an inventory too far in advance should be avoided as things can change:

. the property can become dusty . the garden can become unkempt . mould can start appearing (especially in newly plastered properties that have been closed up for a few weeks) see CD photo 002

. the landlord or their relatives or friends may decide to stay for a while at the property knowing it is empty

Self check question 1 Why is it better for the gas safety check to have been carried out prior to the inventory being prepared?

Compare your answer with that given at the end of this section.

3.3 A PROPERTY NOT READY FOR TENANTS lf the inventory provider attends the property as requested to take the inventory and finds the property is not ready, the inventory should be delayed until the property is ready. For example, the agent was told by the landlord the property has been cleaned but it has either not been done or has been done to an

unacceptable standard.

However, it may well be that despite all best intentions and advice to the contrary an inventory has to be done when the property is not in the state it should be for the commencement of the tenancy.

This may be because of a short turnaround between tenancies or routine maintenance or decoration has taken much longer than expected. ln such circumstances the inventory taker must record exactly what is seen or in certain circumstances must state when things cannot be seen.

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For example:

. if a sink is marked with paint because decorators are using it to clean their brushes then it must be recorded as such, even though it may reasonably be assumed that it will be cleaned properly when decorations are finished

. if a carpet is covered with a dust sheet while the walls are being painted the inventory should state that it is impossible to comment on the state of the carpet

. if window blinds are still in their original wrappings waiting to be fixed, the inventory should state that they are present, unfitted and unseen

. these things can be formally updated at the time of the check in See CD photos 003 and 020

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Self check question 2 Write down how you would explain to a landlord why the inventory provider cannot record new curtains are in situ if they are not hung at the time of the inventory being prepared.

Compare your answer with that given at the end of this section.

3.4 THE ROLE OF THE AGENT With regard to the above the agent can greatly assist the smooth operation of the whole procedure.

It is the agent who is aware of the timescale and best practice would be:

. to inform the inventory provider of the potential start date of the contract as soon as a tenancy is agreed. The agent should inform them of the date the inventory is needed and whether they should attend the check in. They will also need to let the inventory provider know when keys will be available and the property will be ready for the recording of the inventory.

. this last date should be after all cleaning and repairs have been done, including the gas safety check . the agent should also make sure that by this date the landlord would have done any jobs in the house they intended to do and have moved inlout all furniture and possessions that they intended to

. by ensuring the above, not only can the inventory be carried out on a property which is completely .

ready for tenancy but a conflict of demands for keys can be avoided. (For example, the plumber has the keys to do a gas safety check and is undertaking another job 20 miles away) the inventory provider should understand that any tenancy is 'subject to contract' and may be cancelled before the inventory is drawn up. The external inventory provider (ElP) could incorporate into their terms of business the right to make a reasonable charge for a late cancellation. ln practice the EIP would use their judgement to ascertain whether, under certain circumstances, it is better for customer relations to absorb the charge

When instructing an EIP an agent can provide valuable and helpful information, including:

. the approximate size of the property (eg, one bedroom flat, four bedroom house) . whether it is larger than a normal sized property (eg, more than two reception rooms, outbuildings, annexe, pool)

. whether it is lightly furnished, heavily furnished or unfurnished This information will give the EIP a rough idea of the time the job will take.

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At the time of handing over the keys further action or information can be provided which may be of help: . ensuring a full set of keys is provided so that access is available to the whole property (eg, back door keys, garage keys)

. if applicable the alarm code and position of alarm key pad . the existence of and location of the garage if in a separate block . which section of garden is attached to the flat in a house converted into separate units . the whereabouts of utility meters if not obvious, particularly in blocks of flats . the key to the meter cupboard if in a specially locked room in a block of flats . the plot number of the property - as meters in new build blocks of flats are numbered by their original building plot number which will not correspond to the postal number of the flat

Self check question 3 What are the advantages of advising the inventory provider as far in advance as possible of a

potential tenancy?

Compare your answer with that given at the end of this section.

3.5 THE RECORDING OF AN INVENTORY The inventory needs to be recorded by the inventory provider physically going around the property and making a detailed record.

There are various methods and equipment that can be used to achieve this. There is no right or wrong

method as long as the end result is a thorough and detailed document and in line with all the requirements of best practice. However in reality there are some methods that are more efficient and time consuming than others but it is for the individual to determine which method suits them best.

Handwriting This can be done simply by writing a record on paper, or possibly into a pre-prepared form. The disadvantage of this method is that it is very time-consuming.

Voice Recording The LP records the inventory onto a small cassette recording machine. This resulting recording can then be available to be transcribed by a typist.

Voice recognition technology The inventory can be recorded as above and downloaded directly to computer as text. Software is now available that will transcribe the recording directly into an inventory style template.

Electronic Templates There are now many software programmes available which allow an inventory provider to key in all the necessary information for an inventory on to one of a number of electronic devices including personal digital assistants (PDA), tablets and i-phones. This information is set into an inventory format and can be uploaded to a server and be available for printing as a hard-copy document almost immediately.

The technology available in this area is being constantly updated and improved, Almost all of these devices are equipped with integral cameras.

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It is possible to buy or obtain the licence to us these software programmes from a number of commercial organisations. lt is equally possible for an individual or company to design or commission their own bespoke versions. Most commercial versions come fully equipped with templates and many various drop down menus of phrases and vocabulary which can usually be personalised by the individual user.

The advantage of using such a device is the speed of turn-around that can be achieved.

Photography Photographs are now considered to be an essential and integral part of any inventory.

However, they should only be used as an addition to, and not as a substitute for, the written word.

They are very useful for giving an overview of the general condition and layout of the rooms in a propefi and for showing the extent of specific damage such as broken items. ln addition they are an excellent indicator of garden conditions and should always be taken if a garden is part of the property. However photographs are not particularly useful for showing some aspects of dirt such as dust. They are also an excellent indicator of garden conditions. Photographs should be attached to, and become part of, the inventory. They can be grouped together at the end of the inventory providing it is clearly stated under each picture what and where it relates to. ln this way there can never be any doubt over whether the photographs are of the property in question and were taken at the time of the existing inventory. Although photographs can be digitally dated it must always be remembered that this is not foolproof evidence of time as the dates can be altered.

When photographs are provided care must be taken:

. to make sure the photo can be matched with the appropriate room when back at the office . to provide a scale - for example, by placing a small ruler or pen alongside a stain on a carpet or scratch on a wall.

See CD photos 004 and 005 Examples of good and bad photographs are shown in CD photos 006 and 007.

Video Recording A video record of a property cannot replace a written inventory and cannot provide the detail required.

Even if a video recording is provided as an addition to a printed inventory it must, by nature, always be a separate item and therefore difficult to prove that it is a true reflection of the property described in the

printed document

Use of abbreviations It is tempting to use a large number of abbreviations particularly when describing the condition or an aspect of a room or an item. lt can however cause confusion. lf abbreviations are used there needs to be an index of these attached to the inventory for reference.

However, to the inexperienced user of the inventory (ie, the landlords and the tenant) this can mean an aMul lot of referring back and forth. lt is worth considering: . the advantage of using abbreviations is that of speed for the recorder and typist . the disadvantage is a lack of clarity for the end user Examples of typical abbreviations are shown on the CD.

The document The document should consist of the following sections and information:

. a title page giving -the full address of the property

-the date of recording -the name of the person and /or company responsible for the recording -the name of the agent

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. a disclaimer and, if appropriate, the list of abbreviations (see above) . a short general description of the property overall . a room by room detailed description of the property . a list of instruction books/manuals for appliances . a list of keys given to the tenant or space to list them at the check in . meter readings . space for the inventory to be signed and dated by tenant and the person conducting the check in The document also needs to have space for comments at both check in and future check out. Examples of the format are provided in Section 8.

We will now look at some of the above items in more detail.

The disclaimer This is a brief statement explaining to all users of the document what it does and does not purport to do and what the inventory should and should not be used for. lt should include the following information and advice, which should be reflected in the Terms of Business of the compiler:

All items listed in this lnventory are considered to be in good and clean condition unless otherwise stated. (This is important so that there can be no confusion at the end of the tenancy about the condition of any item which has no added comment attached) . that the document is not a building survey and will not comment upon the basic fabric of the building . that the compiler is not an expert in decorations, furnishings, fabrics etc. and is presenting only a layman's description of these items o '! that the compiler will not check contents of lofts, cellars etc. . that the compiler will not test any utility, appliance or electrical appliance and will not know whether any of these items are in working order or comply with safety regulations The general description This will consist of one or two sentences giving a brief overall description of the property and condition.

For example, 'one bedroom purpose built flat in a reasonable state of decoration unless stated in the body of the inventory to the contrary'.

Any general observations such as 'in need of cleaning' or'newly carpeted throughout'should also be made here.

ln addition this is also the place for comments that would not show up in the detailed description. For instance, smell -'smells of cigarette smoke/animals etc.'

It is also useful to insert in this space a general comment about whether light switches, power points and telephone points are white plastic, unless otherwise stated. This saves the description being used throughout the inventory.

This could also be applied to uniform doors or door handles.

Self check question 4 List the advantages and disadvantages of using photographs in an inventory.

Compare your answer with that given at the end of this section.

Self check question 5 Why should a disclaimer be included in the inventory?

Compare your answer with that given at the end of this section.

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3.6 COMPILING THE INVENTORY lnitial preparation The inventory provider should always knock before entering a property, even if they have been told it is uninhabited.

Once inside the property the inventory provider should check that the property is unoccupied and that the lights are working (for winter months and for dark inner hallways etc.) Then it is a good idea to shut and if necessary lock the front door so nobody else can gain access.

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It is sensible for the inventory taker to keep the keys of the property on their person. ln this way it will be impossible to get locked out of the property by a door slamming shut when working in the garden for example.

It is useful for the inventory taker to set themselves up in a convenient position which, in an unfurnished property, is almost always in the kitchen. Here paperwork can be laid out and/or filled in.

It is sensible to have an initial look around the whole property to begin with to get a general idea of the layout and condition of the property for the general comment at the beginning of the inventory. lt is also possible at this point to decide if the comment at the beginning of the document concerning electrical fittings needs to be changed ie, if all or nearly all the light switches and sockets are chrome effect and not

white plastic.

Formatting and specific detail The recording should always take place in a methodical way and each company should adopt a standardised method of doing things so all inventories follow the same format.

The inventory provider should work logically around a property and in general should start at the front door, then the room or area leading from the front door which is usually the hall. After this the route should follow logically in a clockwise manner.

After the completion of one storey the inventory provider should move to the next floor and work logically around that.

So a typical inventory on a non-basement house may have the following subsections:

. hall . cloakroom . kitchen . utility room . lounge . stairs and landing . bedroom . bedroom 2 . en-suite . bathroom 1

The naming of similar rooms When there is more than one of the same type of room to be recorded (typically bedrooms) they should be numbered in the order in which they are recorded. Therefore if you are working in a clockwise direction around the first floor of a property the first bedroom recorded will be noted as 'Bedroom 1'even if it is the smallest of them.

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For the avoidance of doubt additional information should be provided, for example,'Bedroom 1 (rear right)'.

Again there has to be a clear policy about whether left and right are used while looking at the front of the house or while looking out of the front of the house'

Through rooms This will generally be a lounge/diner or kitchen/breakfast room. These can be recorded individually or together. Together is easier if it is unfurnished and if the d6cor is the same for both parts. lf decorated differently or if furnished, treating them separately is advised (this may have implications for the final cost of the inventory).

The format for rooms or areas Again this should be prepared in a methodical manner when recording an individual room or area.

The compiler should start with their back to the door and work in a logical manner around the room clockwise starting first with the basic structure of the room including: . floor covering detail - this should mention the colour and pattern of the flooring, whether it is fitted carpets, vinyl lay, floorboards or laminate wood flooring . walls - it should be stated whether they are painted or wallpapered, the colour and patterns and whether there is a frieze or dado rail . ceilings - it should be noted whether the ceilings are artex or plaster and whether there is coving

. woodwork - (skirting boards, doors and doorframes etc.) . doors - are they wooden, wood painted, part glazed, panelled or flush? Details of the door furniture .

should be added, including the handles, locks, keys and fingerplates windows - window type should be noted ie, sash, transom or side opening. Are they double glazed and is the frame painted wood, upvc or metal? The glass should note where it is opaque. The window fittings ie, handles and catches, should be noted, including their colour. lt is important to record whether key locks are present or not

lf in doubt about any of the descriptions use a qualifying adverb, eg, 'of plastic appearance' or 'wood effect'.

Fittings

No hard and fast rules can be made about the correct order but any sensible, logical and consistent approach will be acceptable.

A format could be in the following order:

o permanent fixtures of the room like a fireplace . radiators . electrical fittings (lights, switches, power points etc.) . removable fittings (curtain tracks, curtains etc.) . furniture . removable items (ornaments, telephone handsets, crockery, cutlery etc.)

Light fittings - detail should include a description of the shades and whether any bulbs are missing.

Radiators - it should be noted whether there are fitted thermostat controls and whether any end caps are missing.

Curtains - the length should be stated; whether sill or floor length, together with a description of the fabric including colours and patterns and whether they are lined. The description should also note if they are

A Guide to Best Practice for lnventory Providers O ARLA Asset Skills NAEA RICS 2007 updated 2011

tab-topped curtains. Any tiebacks should also be described and listed.

Cuftain tracks or poles - details should include what they are made from ie, plastic, wood or metal and whether there are finials attached. ln the case of tracks with rings, the number of rings should be noted.

Furniture - as much detail as possible should be noted, for example: . sofas - the description should list the fabric (leather or cloth), colour and pattern. Are there wooden arms or legs and are the cushions loose? lf there are additional cushions these should also be listed (for information on the fire safety regulations see point 3.12 of this section)

. tables -describe whether they are glass, wood or laminate-topped, whether the bases are metal, .

wooden or laminate. The detail should state if they are dining tables, side, occasional, coffee or a nest of tables wardrobes - list whether they are fitted or free standing. lnclude what material they are made of, what handles they have, whether they have inset mirrors and hanging rails, shelves and internal hooks

Removable items -although this can be extremely time consuming it is important that this is done as thoroughly as possible. Crockery should be counted and listed in full, including colou; pattern, whether there are matching sets or not and their usage (eg, vegetable dish, cereaUsoup bowl, ramekin dish etc.)

The same detail would apply to cutlery and all kitchen utensils.

Pictures should either note the title (if stated) or otherwise a general description including the type of frame and whether there is a glass covering.

All ornaments and other removable items should be described and listed.

General contents - it is not necessary to itemise collections of books or CDs. lt is merely sufficient to state that for example, 'there is a quantity of hardback and paperback books'.

While it is not necessary to individually itemise trivial household items that have been left, such as decorating materials left for touch-up purposes, the inventory provider should be aware that there are an increasing number of commercially available cleaning products that should not be used in the home and of garden chemical products such as pesticides that it is illegal to sell. Therefore best practice should be that any such items should be itemised in the inventory. ln addition it is recommended that the inventory provider telephones the agent to report this. Even if the agent advises they will remove they should be listed. The inventory can be amended at check -in.

Beware of omitting relatively cheap items especially in the kitchen. The landlord may have provided certain items to prevent wear and tear to the property. Typically this could be a plastic washing up bowl (to avoid chipping a ceramic sink) or a plastic chopping board (to prevent knife cut marks in a work top).

While exercising a degree of common sense the best advice is, if in doubt include it.

Beware

of using words like gold, chrome, brass etc. when describing the colour of an item as it may give the impression that the item is actually constructed of such a material. lt is better to use phrases like'gold coloured' or'gold effect' of using incorrect proper names like Hoover instead of vacuum cleaner (or even worse, a Dyson hoover)

Self check question 6 Look at the CD photographs 008a 008b and 008c and compile a sample inventory of that room.

Compare your inventory with that given on the CD.

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Phraseology and vocabulary Where possible the document should express items in plain English and not become over technical.

However, aspects of building construction have specific words to describe items and features. For the avoidance of doubt every effort should be made to apply the correct name.

So for example an inventory provider ought to know the difference between a transom window and a casement window and should familiarise themselves with the proper vocabulary for various items.

This is not a highly specialised skill and does not mean that a degree of technical knowledge is required.

By paying careful attention when walking around any high street 'do-it-yourself' retailer, the inventory provider will be able to acquire most of the knowledge that is required.

The outside Less detail is required compared with the inside of the property (unless specifically requested). Split the

outside up into logical sections, typically garage, front garden, side garden and rear garden. Usually the following will suffice:

. for a garage - a brief description of its construction, its doors and if applicable windows - the flooring, noting any heavy oil staining

- a list of its fittings (electrical fittings, shelving etc.)

- a list of contents, if any

. for gardens - a brief description of the walls or fencing

- a brief summary of the layout ie, 'paved patio leading to lawn area surrounded by raised flower beds filled with mature shrubs' - a summary of garden furniture like patio chairs and tables, garden ornaments including bird-baths, statues, etc.

. a list of fittings on the outside of the house, for example, taps, meter cabinets, light fittings etc. . for sheds and similar non-permanent structures - a brief description of the construction and condition ie,'wooden shed with door with hasp and padlock' or'door in a poor condition' - a list of fittings and the contents, if any

lnstruction books/manuals A list of all instruction books that refer to any fixture, fitting or appliance should be included and information given on where they can be found in the property. The make and model should also be listed.

Typically these will refer to kitchen appliances and the central heating system and/or other heating systems.

There may be additional instruction books for alarm systems, televisions, videos etc.

It is important that these are included so the agent and landlord can ensure the safe use of the appliances

in line with electrical safety requirements. Additionally, in the event of any future dispute over broken appliances a tenant cannot argue that it was broken in ignorance because of the lack of available instructions on how to operate it.

A copy of all instruction books should be held on file by the landlord or agent.

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Self check question 7 Other than the items listed under the paragraph Tittings on the outside of the house', list at least four other fittings or fixtures that may be found on the outside of a propefi.

Compare your answer with that given at the end of this section.

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3.7 FULLY FITTED ROOMS

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Kitchens It is easy to just write 'kitchen units' or 'range of kitchen base and wall units'. This is not sufficient for the inventory, as it does not accurately describe what is in the kitchen.

All kitchen units need to be listed separately and again a logical approach is required. For example, start with base units and list them in a clockwise manneL next note the units at eye level and then move on to the built-in appliances.

The initial overall description of the units should contain the detail of their exterior finish together with the handles or drawer pulls and the interior finish. For example, 'all unit drawer and door fronts are pine effect laminate with chrome effect T-shaped handles. The interior is of a light brown/grey mottle pattern laminate'.

Care should be taken to check the interior of all cupboards and drawers, listing the shelves together with

a note if there are sticky patches in the cupboards or crumbs left in the drawers.

Sink units should note what they are made of eg, metal, white preformed plastic or ceramic together with detail of whether it is a single, one-and-a-half or twin bowl unit with single or double drainers.

The type of taps and what they are made of should be listed eg, monobloc tap, mixer tap, separate pillar taps in chrome, brass or gold effect, etc.

The inventory should list the chain and plug and if it is attached or whether there is a plunge plug. lnset drainers or sink tidies should be noted.

Work tops should be listed noting their colour and pattern and whether they are roll-edged, square-edged

or trimmed. Again if the tops are granite, tiled, wooden or laminate this should be recorded.

Appliances The inventory should detail the make and model of all appliances. lt should record the condition and cleanliness of the inside and outside of each appliance and list its particular items.

Fridge details should include: . glass or plastic covered wire shelving

. salad trays . egg trays . compartments with plastic lifting lids . retainer bars . internal lights and covers

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Freezer details should include:

. the number of drawers, whether they are fixed or sliding . whether the drawers have drop down fronts . whether the baskets are plastic coated wire Hob details should include: . the make, material and colour . the type (gas, electric, halogen) . the condition of the hob generally, including damaged control knobs . the number of rings or plates and their condition

. for gas rings, how many pot stands there are Oven details should include: . whether it is in-built or free standing . the make, colour and material

. the type (gas or electric) . each section dealt with separately (eg, grill and main oven) . the door material (eg, semi-glazed) and how it opens (eg, drop down) . a list of contents including shelves, grill pans, racks and handles (note if separate) . the condition of the inside . control knobs

Cooker hood details should include: . the make and material, including attached flues . how it is fixed (eg, wall mounted or ceiling mounted) . does it have removable panels and if so how many (please note, it is not necessary to remove them) . does it have in-built lights? lf so, how many and are the covers present? . if it is the sort that has a filter blanket, is there one present?

. control knobs or switches . the condition of all the above

Washing machine details should include: . the make, model and general appearance/colour . is it a washing machine or a washer dryer? . the general condition

. the condition of the soap dish . the condition of the rubber sealing ring inside the door . whether it is built-in and does the front of it part or fully match the kitchen units?

Microwave oven details should include: . whether the door is free from corrosion . whether the internal light fitting is intact . all integral dishes or trays . the general condition internally Dishwasher details should include: . whether it is built-in and does the front of it part or fully match the kitchen units? . the general condition inside (look at the filter at the bottom) . the removable items (trays, cutlery holders)

A Guide to Best Practice for lnventory Providers O ARLA Asset Skills NAEA RICS 2007 updated 2011

Bathrooms The inventory should be equally as detailed when listing all sanitary fittings.

The bathroom suite lf it is a matching suite it must be stated along with the manufacturer's name, if shown. lt is important to ascertain whether the suite is an expensive named one or a DIY high street suite. What material is the suite made from (cast iron, plastic, ceramic, gold effect, brass effect, chrome etc.)? List all fittings like hand grips, taps (mixel pillar etc.) and are there shower attachments?

List the make and model of the shower apparatus and whether they are mains or electric showers. The inventory should include information on the riser rod, the shower head, shower hose etc. lt should be noted whether plugs and chains are attached, whether there are bath panels and whether the wash handbasin is pedestal or wall mounted.

The toilet There should be details on the toilet seat and lid like whether it is wood or plastic or whether it is close coupled or has a wall mounted cistern. The inventory should also include the style of the flush handle or button(s).

The shower cubicle

With shower cubicles the inventory should note the material it is made from, details on its framework, how the door opens and the condition of the panels. lt should also give information on the state of the shower tray and the sealant surround.

Central heating boilers and hot water tanks Central heating boilers

The entry should detail the make and model of the appliance and a general description of its casing. lt should state if it has an opening flap to controls and if the controls include the timer. There should be information on the condition of the casing and it should also state if it is wired into a socket or if it has a cord and a plug.

Hot water cylinders The inventory should state if and how they are lagged. lt will either be self (or factory) lagged or have a lagging jacket. The condition of that lagging must be noted. lnformation should also be given as to what they are wired into. Please note, do not refer to an 'lmmersion heater' but to an 'lmmersion tank'.

Self check question 8 Explain why it is important to list the make and model of appliances.

Compare your answer with that given at the end of this section.

3.8 COMMENTS ON CONDITION Adding comments against the items noted in the inventory is among the most important aspect of the inventory provider's work. lt is essential the comments made are accurate, factual, consistent and unbiased.

All scuffs, dirty marks, scratches, dents, chips and any damage to the surface of the fabric of the property or its contents, fixtures and fittings must be noted.

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The inventory provider must be clear about where the mark or damage is, especially when relating to walls or flooring.

For example, if the hallway carpet is marked it should state where, ie, by the front dooL under the radiator,

by the back door, etc.

For walls it should mention specifically where, ie, the wall opposite the door or the wall beneath the window or above the radiaton etc.

Estimations and generalisations It is best practice not to put'few' or 'many' scuffs or marks as this is quite subjective and dependent upon the size of the room. For example, a small rug with five cigarette burns is likely to be considered much

more damaged than a carpet in a large through room with the same number of burns. The same would apply to nail or screw holes or to marks on the walls or carpets.

lf it is impractical to count the marks then the inventory should give a figure giving an approximation of the numbers, for example, 'in excess of 20 black scuff marks averaging approx 5cm long'. ln this way there is no leeway for either party to argue whether this means a few or many.

'New' is also a term that can be misused. The item is only new once and although it may be nearly new and in good condition it should not state 'ne\ /'. lt is acceptable to put 'as new' as an indicator of the condition. lf an item is new then the date on the front page of the inventory will determine its age at the time of the check out.

It is acceptable to use 'slightly worn' or'very worn' providing the inventory provider applies the same standard throughout the document.

Again it is not acceptable for the inventory provider to mark one room as 'dirty' and another as 'grubby' if they are both of the same poor standard. The assessment of the definitions of 'dirty', 'grubby', '\A/orn', etc. should be agreed between the agent and the inventory provider at the start of the relationship so that both parties have a clear understanding of the terms.

Things to look for There are certain things the inventory provider should always check and these include: . all glass in windows and doors, for cracks or damage . bathroom tiles, bathroom suites and showers should be checked for limescale

. baths and shower seals should be noted if poor or damaged . roller blinds should be unrolled and shower curtains extended to check for condensation spores . checks for dust, cobwebs and dirt above eye level . cooker hoods and extractor fans should be looked at for grease/dust o rugs should be moved to ascertain whether they are covering stains ' any peeling paintwork should be noted . care should be taken when looking at walls in a room as sometimes the wrong angle or light can disguise poorly filled in and painted over screw holes mafiresses should be checked for stains

. . missing end caps to radiators should be noted . dripping taps should be noted . scratches to stainless steel surfaces on hobs, refrigerators etc. . 'silvering' to mirrors and scratches or marks to the frame See CD photo 009

A Guide to Best Practice for lnventory Providers @ ARLA Asset Skills NAEA RICS 2007 updated 2011

Self check question 9 How would you define a carpet that is described as 'grubby' compared to one described as 'dirty'?

Compare your answer with that given at the end of this section.

3.9 METER READINGS

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Gas and electricity meters should be read and recorded and thefollowing information noted:

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. the position of the meter . the reading(s) - it should be remembered that an electricity meter may have two readings for peak and off-peak and both should be taken

. in addition both electric and gas meters may be credit meters that show a reading of units used and monetary credit available: both should be included. A letter 'E' after an electric meter monetary reading stands for'emergency' and it means the credit is 'overdrawn' by that amount

. the meter serial number (usually recorded below the reading) . the presence, or lack of, an electric electronic credit key or a gas credit card (for credit meters only) . it is not necessary to record water meter readings unless they are sited on the property. Most water meters are situated below ground on public land (eg, in pavements) and cannot reasonably be read

Leaving the property On completion of the inventory recording, the inventory provider should leave the property as found and this will include:

. leaving curtains as they were - open or closed . ensuring all lights are turned off, unless some were originally left on for security purposes . ensuring that if a main fuse has been turned on to provide adequate lighting to undertake the inventory, it is turned off before leaving

. setting the alarm if it was set on arriving at the property . locking all doors as originally found . leaving items in the position they were found with the following proviso: - a furnished property with bedding should initially have the beds provided unmade so the mattress

can be checked. Therefore there is no point in remaking the bed as it will have to be unmade again for the purpose of the check in

Self check question 10 Why is it important that meter readings are recorded and the serial numbers noted?

Compare your answer with that given at the end of this section.

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3.10 THE HOUSING HEALTH AND SAFETY RATING SYSTEM (HHSRS) This Part of the Section does not apply in Scotland. See Appendix for the equivalent legislation.

This legislation has an impact on items that should be noted by the inventory taker.

The HHSRS is part of the Housing Act 2004 and came into operation on 6th April 2006.

It is a new way in which local authorities will assess housing conditions and uses a risk assessment approach. The aim is to provide a system (not a standard) to minimise health and safety risks and hazards in dwellings. lt replaces the old fitness standard introduced in the early 20th century which did not deal with many of the hazards that affect health and safety today.

There are now 29 listed possible hazards grouped into four categories: . physiological requirements (heat, cold, damp and pollutants like lead or asbestos etc.)

. psychological requirements (light, space, security and noise) . protection against infection (hygiene, sanitation etc.) . protection against accidents (falls, burns, electric shocks etc.)

The inventory provider should be checking for the sort of hazards that can be easily seen like torn stair carpets or broken electrical sockets. For more detail refer to wwwassetskills.org

3.11 A LANDLORD WHO ATTENDS THE INVENTORY RECORDING A landlord may choose to be present during the recording of an inventory. This may be because the landlord is still moving out or preparing the property for the tenancy. This causes problems like those outlined in Section 3.3, A property not ready for tenants'.

A landlord may choose to be present however in order to check that the inventory is being recorded properly. This need not be a problem if the landlord is being helpful and remains silent if a voice recording is being made (it is very difficult for an audio-typist if there is a second voice in the background).

Howeveq the landlord may offer a number of unhelpful comments in the following areas: . disagreeing with the descriptions (eg,'it is not magnolia it is antique cream')

. disagreeing with the comments on condition (eg, 'l don't agree that the carpet is worn, it is only .

twelve months old') providing information that is unverifiable (eg,'that is a solid oak antique dining room table')

ln all the above cases the inventory provider must make it clear they are operating according to standard procedures and terminology. They must insist they are applying accepted and well-formed opinions of the state of the property and only in this way can the inventory be considered to be fair and objective.

The inventory providers can only record what they can see and while the information provided may well be true it cannot be verified.

A further problem may arise if, for example, a landlord picks up on a comment such as 'the oven is dirty', They say they agree and will get it cleaned and ask the inventory taker to note it as clean.

The inventory provider must refuse to do this as they are obliged to record the information as it is seen at the time. The landlord should be advised that if the oven is subsequently cleaned then it will be picked up at the check in and the inventory will be amended accordingly.

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3.12 OBLIGATIONS TO CHECK FURNITURE AND APPLIANCES Softfurnishings in a property must conform to the Furniture I Furnishings (Fire) (Safety) Regulations 1988 as amended in 1993.This relates to upholstered items manufactured after 1st March 1989 or sold after 1st March 1990.

It is not the job of the inventory compiler to verify if furniture and furnishings comply with the regulations

but what they should do is check to see if the various items have a fire safety label attached and record this on the inventory. The inventory provider should also note as a comment on condition if a label has not been seen'. However the words ' not seen ' or 'not found' should be used rather than 'not present' (in case the label was present but obscured).

Items to which this refers include bed bases, fabric headboards, mattresses, sofas and sofa beds, loose cushions, seat pads, pillows, loose and stretch covers. lt also applies to garden furniture that could be used inside.

Testing of electrical, heating and plumbing appliances It is not the responsibility of the inventory provider to test electrical, heating or plumbing appliances and this should be made clear on the typed inventory (see disclaimer).

However, it is the job of the inventory recorder to visually check all such items and record defects in their physical appearance as a routine part of the description in the inventory. lf electrical appliances have been professionally tested as part of a Portable Appliance Test programme it is likely that they will bear labels attesting to this fact. The presence of such a label on an appliance together with the date of testing should be included in the inventory.

Things to check would include:

. battery operated smoke alarms and carbon monoxide alarms . that microwave doors are free from corrosion and are close fitting . noting visible electrical leads that are joined, taped or frayed . noting broken plugs on portable appliances . noting any broken switches or sockets . noting drips from or puddles of water under central heating boilers

Self check question 11 What requirements would/could you impose on the inventory provider regarding the noting of

furniture in relation to the fire safety regulations?

Compare your answer with that given at the end of this section.

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3.1 3 FURTHER CONSIDERATIONS

Photocopying of keys It is sometimes considered to be good practice to photocopy the bunch of keys that are given to a tenant and include this as part of the inventory to aid identification.

At the end of the process The inventory provider should inform the agent of anything that requires attention immediately, especially if this involves a safety issue.

The more time an agent or landlord has to deal with problems the better' The keys should be returned to the agent as soon as possible' The inventory should be prepared in the preferred format and printed off ready for the check in.

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ANSWERS TO SELF CHECK OUESTIONS Self check question 1

There are a few reasons why it is better to have the check carried out prior to the inventory and your answer may have included: . there is no likelihood of the keys being booked out elsewhere . the contractor may have had to do some work and left some mess or debris . the contractor may have found a problem that requires work that could impact on the fabric or decorations of the ProPerty (Y)

Self check question 2 . you would probably advise your landlord that the inventory has to be a snapshot of the property at the time it is compiled . it may be that the landlord didn't get round to hanging the curtains before the start of the tenancy

. once installed the inventory provider would then be able to make a detailed comment on the .

pattern, fabric, tape headings, linings, length etc. if there was a dispute at the end of the tenancy and it could be proven that the inventory provider made various assumptions the whole document could be called into question

Self check question 3 The advantage of advising the inventory provider in advance of a potential tenancy is that they will be

able to schedule this into their diary together with the check in to avoid last minute problems about availability.

Self check question 4 The advantages of using photographs would include: . they can provide an excellent overview of the condition of a property . they can provide excellent evidence of the seasonal condition of a garden . they can highlight any antiques, photographs or unusual ornaments

. if used well, they can highlight marks, scratches, damage etc.

The disadvantages of using photographs would include: . it is not possible to photograph every bit of wall or surface so cannot be a substitute for a written

inventory

. if not photographed properly there is no reference for scale or perspective . digital photographs can easily be altered and may be questionable in court Self check question 5

The inventory should always have a disclaimer so all parties are quite clear about what the inventory provider is checking. This will help avoid the assumption that they are experts in antiques, types of wood or veneer, etc.

Self check question 6 Refer to CD photos 008a 008b 008c and sample inventory.

Self check question 7 Other items fitted or fixed to the outside of a property could include letter boxes, house numerals or name plaque, door bells, door knockers, satellite dishes, retractable washing lines or brackets for hanging baskets and troughs.

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Self check question 8 Not only do you need the make and model of appliances on the inventory to ensure the same items have been left at the end, you will also be able to use this information to assess costs for replacement or compensation if damaged.

An additional advantage is that the property manager can ensure they call out the right engineer in the event of a problem with the appliance during the tenancy.

Self check question 9 A'grubby' carpet is likely to be assessed as one which has not been vacuumed and has minor marks and some discolouration to the walkways.

A'dirty' carpet is likely to be one that has noticeable discolouration to walkways or other areas and/or many marks or stains.

Self check question 10 Generally the tenant is responsible for the utilities once the tenancy has started and it is important to ensure that they pay for what they have used rather than having to pay for usage before the commencement of the term.

The serial number identifies the meter as belonging to that particular property. This can be important if the meter is situated alongside a number of other meters for several properties.

Self check question 11 It would not be correct to place the burden of ascertaining whether the furniture was compliant upon the inventory provider. However, they should be requested to look for labels attached to the furniture and record whether or not safety labels are attached. lt would be the responsibility of the agent to ensure that the furniture complies and to have the landlord remove it prior to the start of the tenancy if it did not.

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EG While some agents do not conduct a check in with their tenants there are various reasons why a check in is considered best practice within the industry. This section will look at the advantages and the processes connected to the check in. We will also consider and look at the practicalities if a check in is not possible.

Learning objectives Having completed this section you will know and understand: . the importance of undertaking a check in

. why a check in is considered best practice . the procedures relating to the check in . problems that may occur during the check in a o a

who can attend the check in the procedure in the event of a check in not being possible the check in report

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a 4.1 THE IMPORTANCE OF THE CHECK IN The importance of having an accurate inventory at the beginning of the tenancy has already been covered in the earlier sections.

To summarise: it is to reduce the risk of any dispute about damages to the property or the contents between the landlord and the tenant at the end of the tenancy.

However,this will only be the case if the tenant agrees the content of the inventory at the very beginning of the tenancy. The tenant, or tenants, by signing and dating the inventory, demonstrate their agreement to the condition of the property.

lf the tenant is not given the opportunity to agree to the contents of the inventory or to make agreed amendments to accurately reflect the state of the property, then it could be argued the inventory is devalued, if not made worthless.

Certainly in the case of a dispute at the end of the tenancy it would be harder for the landlord to rely on the inventory as evidence.

The check in procedure is therefore a protection for the landlord and the tenant as it is then clear to all parties that the tenant has been given the opportunity to accept or amend the inventory and has confirmed a valid snapshot of the property at the beginning of the tenancy' It is also a reassurance for the tenant that they will not be held responsible for faults with the property that have already been identified and agreed at the check in.

How the check in helps avoid problems Some agents do not have the resources to conduct a check in and ask the tenant at the start of the tenancy to take the inventory and return it within a stated time frame, making any amendments they feel necessary and then sign and date it. This can cause problems.

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. Sometimes the tenants fail to return the inventory and the agent isn't always robust about chasing for its return. As a result, at the end of the tenancy, there is no signed inventory. The tenant could argue that some damage was already done when they moved in and there is no evidence to the contrary, other than the original inventory - which the tenants could claim was incorrect.

. lt is also worth considering that damage can be caused by the tenants moving their furniture and belongings into the property. They might then alter the inventory to reflect this and sign and date it with their own amendments as if the damage had been done before they moved in.

. A major issue when tenants are not checked into a property is one regarding cleanliness. lf, at the check out, the report states that the property is in need of cleaning it is easy for the tenant to claim that they left the property in a better condition than the way they found it at the start of the tenancy. lf it is pointed out that the inventory stated the property was clean and made no mention of it being dirty, the tenants could claim the original inventory was incorrect and that they had telephoned the office and reported this to 'someone'.

The point being that, the more documentary evidence you have regarding the tenant's acceptance of the condition of the property, the better.

Self check question 1 Your landlord client doesnt want to pay for a check in as they feel the professional inventory they have paid for is sufficient. What reaEons would you give to your client to explain the importance of the check in?

Compare your answer with that given at the end of this section.

4.2 WHAT IS INVOLVED AND WHAT SHOULD BE DONE? The check in should be conducted with the tenant or their representative at the start of the tenancy and before any items are moved into the property.

A pre-agreed time should be set for the tenants to meet with the agent or inventory provider at the property following the completion of all the paperwork and finances necessary for the tenancy. ldeally the agent or inventory provider conducting the check in should have the keys rather than the tenants, to prevent the tenants having access and moving in before they have been checked in.

Giving the tenant the keys before the check in can potentially create problems:

. the tenant may feel they have more important things to do now that they have the keys, and not turn up for the appointment

. the tenant may start to move in and, as a result, puts furniture or possessions in the way of items which need to be pointed out

. the tenant may cause damage while moving in furniture eg, chip some paintwork but then insist the damage was there already Generally speaking tenants are quite excited by the prospect of moving into their new home and are

impatient for the check in to be finished quickly. The agent or inventory provider has a duty of care to explain to the tenant the purpose of the check in and how it is in their best interests to spend time on the process.

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The agent and tenant should systematically go round the property in the same order as the inventory is

compiled and check each inventory entry against the actual property.A tick should be placed in the appropriate column to demonstrate mutual agreement.

Amendments The inventory provider should have two copies of the inventory for the Check ln. Both should be amended identically and at the end of the process one can be taken away and one left with the tenant.

It is quite possible that some minor amendments will need to be made because:

. the agent picks up something they or a colleague missed earlier . the tenant picks up something that had been missed . the landlord has made some minor changes (eg, cleaning an oven or putting up a curtain track) .

since the recording of the inventory a contractor has been into the property and done some work

ln these instances the amendment should be written in the comments column and the incorrect comment

(if any) crossed out. lf a new item is to be added this should be listed at the end of the section on the particular room or area in question. Changes and amendments should be initialled by the agent or the inventory provider.

There may be the need to make major changes if, for example, work had been undertaken at the last minute. This could include: . decoration of a complete room or rooms

. extensive cleaning . arrival of furniture The same procedure should be followed as with minor amendments but obviously a more extensive annotation on the printed inventory will have to take place. ln addition when this occurs a general note should be added, perhaps on the front page, stating that maior

amendments have been made and briefly explaining why.

For example, 'it should be noted that both bedrooms were completely redecorated over the weekend immediately prior to check in and amendments have been made accordingly.'

. Meters should be re-read and confirmed as correct by the tenant. ln the event that units have been . .

used since the inventory was taken adjustments should be made accordingly.

The keys handed over to the tenant (either by the office or at the check in) should be individually identified and listed on the inventory.

When the tenant or tenants are happy to confirm they agree to the inventory the documents should be signed by all parties and then dated.

Self check question 2 You are about to conduct the check in on a large furnished propefi. The tenants say that they

dont have the time to go through the process and state that they will sign the inventory as being correct and then let you know if there are any problems. How do you respond?

Compare your answer with that given at the end of this section.

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4.3 DISAGREEMENTS On occasion at the check in the tenant may be unwilling to sign the inventory or indeed they may state they no longer want to take the property because of a problem. The problem may be due to:

. the inventory or

. the property A problem with the inventory It should be very rare that a tenant has major disagreements over the contents of an inventory if the original was recorded properly.

It is only reasonable that a tenant should point out problems with the property and if they are reasonable and have not already been recorded they should be added.

There is a point however where it is possible for a tenant to become too fussy eg, pointing out the most miniscule chip on a skirting board. ln these circumstances the agent would have to think about whether this was a reasonable comment to make. A good yardstick is to consider whether the agent or inventory provider would have picked up the item at the check out (see Section 6). lf it is the case then it needs to be included.

Generally, disagreements take place over the level of cleanliness and the words used to describe it in the

inventory.

The inventory may describe a carpet as 'grubby' and the tenant insists that it is 'dirty'. It is at this point that the importance of a standard and consistent set of descriptions comes into play. The agent or the inventory provider should be able to demonstrate this to the tenant.

A problem with the property Sometimes a tenant will not wish to sign an inventory check in or want to move in if they are not happy with the property for some reason. Such reasons could include:

. certain works had been promised (eg, decoration, cleaning, gardening, etc.) . the tenants were expecting furniture to have been replaced or removed . the tenant is unable to get appliances working immediately (especially central heating boilers) ln this instance the agent can take some action but this should not affect the signing of the inventory or the status of the tenancy.

The agent should point out disclaimers on the inventory such as ones that state that no appliances are tested.

The tenants should be advised that they are only signing the inventory to agree to what is stated about the property. lt should be made clear this does not mean they can not pursue any issues with the landlord or agent as a separate matter. lf the check in is being conducted by an external inventory provider and the problem is not connected to

the wording or preparation of the inventory they should encourage the tenant to contact either the landlord or agent directly (depending on whether the property is managed or not) so the matter can hopefully be rectified quickly.

The EIP should avoid becoming involved in the tenant's complaint about any negotiated terms as they will not be aware of what was agreed during the pre-tenancy negotiations. They will also be unaware of any additional clauses which might have been added to the tenancy regarding works or other related issues.

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Communication with the agent lf the person conducting the check in is aware of concerns the tenant has over certain issues or they themselves discover issues which require attention they should immediately make these known to the agent so they can be dealt with as soon as possible.

The most common problems noticed at check in are: . there are not enough sets of keys (each tenant should have a set) or certain keys are missing (often the garage key or window lock keYs) . there are no instruction books for appliances and it may not be possible to get central heating boilers working . works agreed pre-tenancy have not been carried out or completed

Self check question 3 You are conducting the check in and one of the tenants is trying to get the central heating boiler to work. There isnt an instruction manual in the propefi. How do you advise them/what action would you take?

Compare your answer with that given at the end of this section.

4.4 AfiENDANCE AT THE CHECK IN Best practice dictates all tenants should be present at the check in. However, it is worth noting that there is no statutory right for the tenancy to demand they attend. lf all tenants are present they should all be included in the check in procedure and agree to the contents of the inventory. lf there are a number of sharers it is often easier for one or perhaps two of the tenants to go through with the procedure acting as the eyes of their fellow tenants. lt is acceptable for the tenant(s) present to sign the inventory on behalf of those missing, providing the whole of the property has been checked.

It is not uncommon for tenants to be accompanied by friends and particularly in the case of younger tenants, by parents. Often it is these parties who are the most fussy.

While it is quite acceptable for anybody to make representations on the tenant's behalf, the agent or inventory provider must remember that it is only the tenant who ultimately can be responsible for agreeing and signing the inventory.

However, the agent or inventory provider must treat accompanying people with sensitivity. lt may well be that the concerned parent has provided the deposit and is acting as guarantor.

ln the event of a tenant not being able to attend the check in, they should try to appoint a representative to go through the check in procedure on their behalf.

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Self check question 4 You are going through the check in and the tenant's parents are becoming very unhappy about the condition and cleanliness of the property. They say they don't want their child to sign the inventory no longer want them to continue with the tenancy and want their money back. How do you respond if (a) you feel they do have a point and (b) you feel they dont have a point and are just being unreasonable?

Compare your answer with that given at the end of this section.

4.5 THE PROCEDURE IF NO CHECK IN IS CONDUCTED lf an agency doesn't have a policy of checking the tenants into a property then alternative procedures must be put in place to try to protect the interests of all the parties.

As with conducting the check in the agent has a duty of care to ensure that the tenant fully understands the importance of carefully checking the inventory and returning it to the agent.

The agent should have a covering letter or advice sheet to give to the tenant setting out the reasons and making suggestions for how best to go about checking the documents against the property.

The agent should require that the inventory is signed and returned to them ideally within 48 hours of the start of the tenancy and in no circumstances later than seven days.

Any delay longer than this may result in the tenants postponing the check and then forgetting about it.

Also, the longer the delay the more likely the chance the tenant might damage the property but add it to the inventory under the guise it was there when they moved in.

The agent should add a stipulation in the advice sheet that in the event the inventory is not returned, signed and dated within a specified time the tenants will be bound by the original inventory. However, in practice it is not likely that the courts will find this completely acceptable. ln the event of a dispute at the end of the tenancy a court or Alternative Dispute Resolution service will most likely interpret the nonreturn, as acceptable.

The agent must be diligent to ensure that the inventory is returned in the required time frame. lt may be that they make an arrangement with the tenant to call round to the property later that day or the following day to collect the document. The agent should make it clear to the tenant that the inventory must be checked as soon as they arrive before they start moving their possessions in.

The practice of having the tenants sign and agree the inventory in the agent's office before they have been to the property would be considered unfair and would almost certainly not stand up in court.

The tenant who wants to check the property before starting the tenancy lf a potential tenant is uncertain whether the property will be ready before the tenancy starts or if there is to be a quantity of furniture added that the tenant wants to approve, it is possible to conduct the check in before the tenancy begins.

However, at no point should the future tenant be given the keys or allowed access to the property unaccompanied.

The procedure would follow the same lines at the formal check in but the agent or inventory provider must then show the tenant out of the property and ensure that it is secured before returning the keys to the agent's office. Once the paperwork has been completed the keys will then be given to the tenant to move into the property.

This would only be feasible if it is carried out no more than 24 hours before the start of the actual tenancy.

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Self check question 5 Your agency doesnt have a process of checking tenants into the propertY. Ten days after the start of a tenancy you finatly receive the inventory back from the tenants. However, on reading through the document you find that they have added a red wine stain to the living room carpet and scratches to the wattpaper in the hallway. What action do you take?

Compare your answer with that given at the end of this section-

4.6 THE CHECK IN REPORT As mentioned earlier the signed inventory should be returned to the agent as soon as possible for them to keep on file until the end of the tenancy.

The inventory should be accompanied by a brief check in report. This should state:

. the address of the property . the date of the check in . who prepared the inventory and on what date . the names of the tenants present o a comment space to record anything unusual about the check in (like if the tenants complained about the state of cleanliness or if they were left without a full sets of keys, etc.)

A copy of both the inventory and check in report should be sent to the tenants as quickly as possible.

During the tenancy As the check in report and inventory will be used for the check out (see Section 6) it is important that anything that occurs during the tenancy which impacts on the property must be recorded and kept for use after the contract ends.

Relevant information in this context would cover anything that affects the condition of the property or its fixtures and fittings and may include: . details of reported damage(eg, a leak through the ceiling from a flat above or burst water tank) together with details of rePairs . a copy of an addendum giving written permission to tenants to redecorate (including details of what room or area, permitted colours and materials etc.) or to permission to undertake DIY projects like putting up shelves or hanging pictures . details of replacement appliances or carpets provided during the tenancy . permission to erect a satellite dish or put in further phone lines

Self check question 6 Why is a check in report needed in addition to the signed inventory?

Compare your answer with that given at the end of this section.

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ANSWERS TO SELF CHECK OUESTIONS Self check question 1 You would probably have covered the following points with your landlord:

. without a check in the original inventory could be disputed by the tenants and may weaken the landlord's case if the matter went to court

. the tenants should have the opportunity to question any of the comments or contents listed in the inventory

. the landlord has the security of knowing that the tenants have agreed the condition of the property .

formally at the start of the tenancy a formal check in generally reduces disputes at the end of the tenancy regarding damages etc.

Self check question 2 You would probably have advised the tenant of the following points:

. once the inventory has been signed and dated it cannot then be subsequently altered, and they should therefore not sign it without checking first

. to ring the agent and explain the situation and take their instructions . it is in their best interests to have a formal check in Self check question 3

. You would be aware that the landlord has a duty provide the tenants with instruction manuals for all appliances to ensure safe usage.

. You would explain to the tenants that you are not qualified to try and get the boiler to work. . Depending on your role or relationship with the agent you would telephone the agent to take action.

Alternatively you could advise the tenant to call the landlord or agent directly.

Self check question 4

a) Whether or not you feel they have a point you have a duty to advise them that their child had signed the agreement and therefore they were bound to the contract. You could also say that by the same token the landlord has certain statutory and contractual duties and obligations to the tenant. You must advise the tenants and their parents that they will need to contact the agent who agreed the let in the first instance and who will be aware of any negotiations regarding any work to be done.

You should explain that the inventory reflects the current condition of the property and that by signing this they are demonstrating their agreement to that condition. You must point out that if the landlord agrees to cleaning or work then details of this work would be attached to the inventory to ensure that it is used as a measure of the standard at the time of the check out.

b) lf you feel the parents have unrealistic expectations you should again point out that their child is bound by the agreement they signed. lf you are aware of the rent being paid and know that it is in line with market values you could also point out that the standard of the property is commensurate with the rent being charged. You should also state that the tenants had viewed the property and agreed to take this as seen.

Self check question 5 You should make urgent arrangements to visit the property as soon as possible taking with you the person who drew up the inventory. You will then have to discuss the matter with the tenants and the inventory provider to establish whether or not it is likely that the damage was there and missed by the inventory provider or done by the tenants. ln any event there is no absolute proof either way and must be handled with diplomacy.

Self check question 6 You may have said that the benefit of a check in is to have a written statement as evidence that the check in was conducted at the stated time and with all the relevant parties present.

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nterim visit r periodic tenancy check The visiting of the property during the tenancy is a service offered to a landlord generally as part of the agent's management Package.

However, it is very often something that is treated casually and not perhaps with as much importance as it should be. lf the agent has undertaken to visit the property it is not unreasonable for the landlord to assume that this will be more than just a cursory visit with hardly any notes taken. lf it forms part of the service offered to

the landlord it must be carried out professionally in a pre-determined format, in the required time frame and be of value.

Learning obiectives Having completed this section you will know and understand about:

. the reasons for the interim visit . timings and gaining access . preparation for the visit . the property visit . reporting findings 5.1 THE PURPOSE OF THE INTERIM VISIT The interim visit is when the agent, their representative or a landlord conducts a visit or visits to the property during the course of the tenancy.

The purpose is to satisfy the following criteria: . that the property is generally being looked after

. that there are no particular problems with the propefty . that the tenant is not breaching any terms of the tenancy And to alert the attention of : . the landlord or agent to works that may need to be carried out . the tenant to any matters that may lead to their being in breach of their tenancy agreement, on which may lead to their forfeiting part of their deposit if not rectified There are times when visits are conducted as a direct result of a complaint from neighbours or there have been reports of the tenants breaching their agreement.

A visit may be arranged at the instigation of the tenant who may be worried about some aspect of the property and wants the agent to see the problem themselves.

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An interim visit is not:

. a check against the inventory . a survey of the property . a check upon the living habits of the occupants As stated above the agent or inventory provider is not there to pass comment on the housekeeping standards of the tenant or tenants unless this impacts negatively on the property itself.

For example, the tenants not having done the washing up from the night before is one thing but leaving dirty and greasy items standing for long periods of time in a plastic sink could result in permanent staining. Again, if the carpets were being vacuumed so rarely that it was causing grit and debris to be trodden into the fabric thereby causing damage then this would have to be addressed.

5.2 TIMINGS AND GAINING ACCESS The frequency and timing of the property visits should be conducted in line with the agent's terms of business with the landlord and the relevant clause in the tenancy agreement. These visits may be brought forward if there are problems during the tenancy.

It is quite usual for the agent's terms to specify that they will conduct a visit once per tenancy or once per annum whichever is the sooner. The terms will probably include a provision to conduct further visits if required at a pre-agreed fee.

It must be borne in mind that while the landlord may wish to have the agent visit the property frequently the tenant is allowed quiet enjoyment of the property. The agent going round to the property every few weeks could be regarded as harassment.

This juncture is useful in determining how the tenants are keeping the property and this could influence whether the landlord will wish to offer the tenant the opportunity to stay at the end of the initial tenancy or whether they may wish to find alternative tenants.

Gaining access The tenancy agreement should specify that the tenant has an obligation to allow the landlord or the agent

to visit the property, providing reasonable notice is given. Most tenancy agreements will specify a minimum notice period of either 24 or 48 hours. Unless there is an emergency situation 24 hours is the legal minimum notice period that can be given.

The request to visit the property should be made in writing and best practice would dictate that sufficient notice should be given, taking into account the terms in the tenancy agreement and the Royal lnstitution of Chartered Surveyors' (RICS) guide to 'reasonable notice'.

The tenancy agreement should require the tenant to advise the agent or landlord if they are to be away for long periods. Generally the requirement relates to periods of more than 14 days. Therefore the letter requesting the visit should be made at least 14 days in advance so that there is no argument that the tenant didn't get the letter because they were away.

The agent should advise the tenant of the date and approximate time they intend to visit and that if the tenant is not able to attend then the management set of keys would be used.The letter should contain a request that the tenant contact them in the event the timing is not acceptable to them.

lf the tenants ring to confirm or change the appointment then a file note with the date and time of the conversation should be made.

The tenant can be present during the visit and this generally is desirable as it gives all parties the opportunity to ask any questions or for the tenant to point out any areas that they wish to draw the agent's attention to. ln all circumstances the agent/clerk should knock first before gaining access.

A Guide to Best Practice for lnventory Providers O ARLA Asset Skills NAEA RICS 2007 updated 2011

lf the tenant cannot be present they can either elect a representative to attend on their behalf or they may

agree that the agent or inventory provider can enter using the management set of keys.

The agent should be sensitive to the working arrangements of the tenant - they may find it difficult to get time off to attend the visit or they may be working shifts which could leave very little opportunity during the working day to visit.

Writing in advance to the tenant to advise when they are intending to visit and taking the stance that the tenant only needs to contact if it is not convenient does make the agent's life easier rather than having to chase for a response.

However, there may be problems with this method in that the agent or inventory provider may find they are physically denied access when they arrive at the property. lf this happens, then under no circumstances should the agent or inventory provider try to force entry into the property. ln addition, entering into a property without the express consent of the tenant could mean that the agent or inventory provider may find themselves the subject of accusations of theft or damage to the property.

The agent/inventory provider should check around briefly after entering an 'empty property'to ascertain whether a sleeping tenant did not hear the doorbell. lf this happens, the agent/inventory provider should

immediately withdraw and attempt to rouse the tenant by persistent ringing/knocking on the door or telephoning the property.

Problems with gaining agreement for access Generally speaking with co-operation from both sides an agreement can be made. However, there are times when the tenant either:

. refuses access . will only allow the agent around at unrealistic times in the evening Refusing access The agent should ascertain the reason why the tenant does not want a visit to the property and then attempt to overcome the objections raised. The agent should point out that by refusing access, the tenant is in breach of the tenancy agreement and that the landlord would be within their rights to charge the tenant for any loss that incurred as a result of the access refusal.

lf the tenant is steadfast in their refusal to grant access the agent should not attempt to go into the property.

Unrealistic visiting times Sometimes a tenant will have genuine reasons for it being difficult to allow access during the day.

HoweveL at other times tenants may be unhappy with the tenancy and are deliberately making it awkward for the agent to go round.

Again, the agent should point out the obligations of the tenant under the agreement and the fact that they can have a representative there if they were not comfortable with the agent going around alone. This should be followed up in writing. lf the tenant refuses access then the agent should not attempt to go round. ln all instances where access is denied or unrealistically delayed the agent should ensure that the landlord

is kept fully informed of developments and extensive file notes should be made with all conversations confirmed in writing.

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Self check question 1

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Your landlord contacts you to say that he has had reports from the neighbours that the tenants are not property tooking after the property and he tells you that he wants you to make regular visits to ensure they are complying with the tenancy. He says that he wants you to go round every fortnight for the next tvvo months and then he wilt review the situation. How would tackle

you

this?

Compare your answer with that given at the end of this

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5.3 PREPARATION FOR THE VISIT The agent should have a template report which sets out what the agent or inventory provider should be checking for with space for comments and findings (see sample template in Section 8 of this handbook).

The agent should review the file and take a copy of the last interim visit so that they can be aware of what issues were raised last time. ln addition, the agent should check the file documents to ascertain:

. how many tenants and permitted occupiers are listed . whether there are separately negotiated clauses such as allowing pets,smokers or the installation of a satellite dish,etc.

. whether any addenda are on file giving other consents or obligations . whether any work has been undertaken at the property that would require checking . whether the tenant has reported problems with the property since the check in or last visit lf the agent is using an external clerk, they should provide the information as above for their use.

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Self check question 2 Why is it considered best practice to have a template report for property visits?

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Compare your answer with that given at the end of this section.

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A Guide to Best Practice for lnventory Providers @ ARLA Asset Skills NAEA RICS 2007 updated 201'l

5.4 THE PROPERTY VISIT The agent should always knock at the property before entering even if they have been advised that no one *ill be present. lt is common courtesy and the tenants may have changed their plans.

The agent should always be mindful that it is the tenant's home and they should act accordingly' lf when the agent arrives there is no one present but there is a dog at the property then the agent should be mindful of health and safety and not take the risk. The visit should be abandoned' When the agent visits the property they will not need to have a copy of the inventory with them (as stated earlier it is not intended to be a check against the inventory).

The visit need not be long but the agent should be thorough and look into all rooms and outbuildings,

especially remote garages together with the outside areas.They should use the template report to make notes. lf the tenant is present the first thing is to ask them if they are aware of any problems, even if they have already reported them to the agency.

This is a good way of checking that matters already notified have been dealt with or are in hand.

It is also a way of finding out about problems that are affecting the tenant and may lead to future disputes (physicalthings like electricalfuses constantly blowing or social problems like noisy people in an upstairs

flat).

When going around the agent should be looking for the following things:

. how many bedrooms are occupied - giving a clue to the likely number of occupants . are there pets or evidence of pets? (this could be a general smell, a pet flap in a door, animal hair on the carpet etc.)

. if not permitted by the tenancy is there evidence of smoking? (the smell, ashtrays, cigarette burns on carpets)

. evidence of abuse of the property eg, the storing of bicycles in hallways or plant pots without drip

trays on carpets or furniture. (Basically, the agent or inventory provider should be on the look out for things which could cause damage. However no attention should be taken of minor blemishes as without the original inventory there is no way of knowing if they were already present)

. evidence of faulty plumbing like stains on ceilings or swelling of flooring in the kitchen or bathroom . evidence of damp caused by condensation and any evidence that this is the fault of the tenant eg, . . .

wet washing left to dry on radiators the state of smoke detectors; are they emitting a low battery warning noise? are the battery compartments open? evidence of tampering with any fire safety factors such as the detaching of self-closers on doors (or the removal of doors into a kitchen for example) evidence of failure to remove rubbish on a regular basis or of disposal of rubbish in a thoughtless manner that may lead to complaints from neighbours or, in the case of flats, from managing agents

. evidence that the garden is being maintained in a seasonal condition . the agent/clerk should not look into cupboards or drawers used by the tenants

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Landlord liability ln addition the agent should be looking for work that may be required to maintain the standard of the property. This would include the deterioration of items because of reasonable wear and tear and would be the liability of the landlord.

These could include:

. evidence of damp on outside walls suggesting an external problem with the walls . evidence of damp on upstairs ceilings possibly indicating a problem with the roof . weeds growing out of gufiering, which could lead to overflowing gutters and damp . evidence of wearing or fraying carpet, especially on stairs, which could become a safety issue . evidence of damage to electrical fixtures and fittings: frayed cables, cracked power points etc. . evidence of poor grouting to tiles or to gaps in the bath sealants, etc. . the window frames, fascia boards and external doors should be looked at to see whether repainting is required

. driveways and paths should be checked to see whether there is evidence of cracking that should be attended to or uneven paving slabs which should also be noted

. on new build properties evidence of excessive settlement cracking, floorboards lifting, etc. lf, on the visit, the agent or inventory provider feels that the tenant could do some work to bring the standard of the property up to a more acceptable level they should diplomatically point this out to the tenant at the time if they are present. There is no point in saying to the tenant that everything is fine and then writing to them to tell them to clean the limescale from the bathroom fittings.

Again, if there are suspicions that the tenants may be subletting the property, the agent/clerk should point out the extra beds or other evidence of additional occupation and ask them whether they are subletting.

Any issue that is raised should be done diplomatically and with an understanding for the tenant's feelings.

lnformation ln most cases an interim visit is more of a chance for any minor issues that may have potential for becoming bigger issues in the future, to be sorted out.

A visit conducted well can have various advantages:

. The tenant feels that interest is being taken in their occupation and any problems they may have. . The landlord can feel secure about the state of their property and those who occupy it. . The landlord can have an updated view of the condition of the property and be aware of any works that need carrying out or be more prepared for works that will have to be carried out in the future (including making any financial contingency plans).

Self check question 3 You write to a tenant advising them that you want to visit the property. The tenant calls you to say that they have no objection to the visit and that they will have a friend let you into the property. On the visit you get the feeling that the Triend' is a lodger and has been there for some time. What action do you take?

Compare your answer with that given at the end of this section.

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5.5 REPORT FINDINGS Following the visit the agent or inventory provider should prepare a report in a prepared standard format that itemises the findings of the visit and should include the following information:

. the address of the property . the date and time of the visit . the name(s) of any tenants present . the number of bedrooms occupied and, if ascertained, the number of persons residing . any matters to note regarding the internal state of the property . any matters to note regarding the external state of the property . the status of smoke detectors . evidence of pets (if applicable) . evidence of smoking (if applicable) . matters raised by the tenant . any other general comments . requests by the tenant . recommendations for action categorised into urgent or non-urgent lf the person compiling the report has neat and legible handwriting then this could be used without having

to re-type another version. ro

A letter should then be written to the landlord enclosing the report for their attention together with a summary of the findings. lf relevant the agent should ask for the landlord's instructions regarding any maintenance work. lf the report shows that the tenants are in breach of their tenancy or are not looking after the property well

enough, the agent should also advise the landlord of this together with the action that will be taken. This is likely to be in the form of a letter to the tenants and, possibly, a re-visit to the property.

File notes should be made and diary dates entered for any items that may need to be followed up.

Self check question 4 You have visited the property and advised the landlord that the tenants are not adequately ventitating the property and as a result there are high levels of condensation. What are Your next steps?

Compare your answer with that given at the end of this section.

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ANSWERS TO SELF CHECK OUESTIONS Self check question 1 You would explain to your landlord that the tenants have the right of quiet enjoyment and that, while you

accept his concerns, you are not able to comply with his request.You would point out that visiting the property so often could be taken as harassment.

It would be prudent to make arrangements to visit the property as soon as possible in order to report formally to the landlord. You could suggest to the landlord that you will speak to the neighbours before the visit in order to obtain a full report of the alleged actions' Self check question 2 Having a standard template for the property visit is beneficial as it ensures continuity each time the visit is undertaken. lt can act as a prompt for the person conducting the visit to ensure nothing is forgotten.

The landlord will know what to expect from each visit.

Self check question 3 You should try and note any evidence of your suspicions.You may notice post addressed to the 'friend' (although you should not under any circumstances go through someone's personal possessions); there may be no evidence of a suitcase in the spare room, which is often an indication of a short stay; there may be many toiletries in the bathroom that clearly belong to more than one person.

You should speak to the tenant regarding your concerns and you could suggest that you will speak to the

landlord to see whether they may be happy to add the other person onto the tenancy, subject to

satisfactory references. lf the tenant denies that there is a lodger it would be prudent to book a further visit, although this may not definitely confirm the situation one way or another.

Any conversation should be followed up in writing.

The landlord should be contacted and notified about the situation. lf applicable the agent should approach the landlord about adding the occupier to the tenancy.

Self check question 4 Having written to the landlord you should then write to the tenants pointing out the issues and bringing to their attention any relevant clauses in the tenancy agreement regarding maintaining the property. An advice sheet on how to prevent condensation would be useful to include. The tenants should be made aware that any damage caused to the property or the landlord's contents as a result of condensation will be their liability. A further visit should be scheduled.

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The check out is an extremely important part of the lettings procedure and failure to provide a professional and thorough check out could result in disputes between the tenant and landlord that cannot be resolved due to lack of accurate evidence.

The purpose of the check out procedure is to produce an accurate assessment of the state and condition of the property at the end of the tenancy. This can then be compared with the written assessment of the condition of the property at the beginning of the tenancy, as shown by the inventory, together with the check in documents.

This comparison will then show up any differences between the two and this will form the basis of any claim the landlord may have against the tenant for damages and or cleaning.

Learning obiectives Having completed this section you will know and understand about:

. making arrangements with the tenant . the need to make the tenant aware of their obligations . relevant documentation . when a tenant is or isn't present at the check out . conducting the check out . things to look for . items Ieft at the property . the landlord present at the check out . the landlord entering into the property prior to the check out @

6.1 ARRANGEMENTS WITH THE TENANTS

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The agent or inventory checker should undertake the check out of the property and this should be done as soon as possible either at or after the end of the tenancy. lt is important that the check out is conducted either on the day the tenancy ends or as soon as possible thereafter. Landlords should be advised not to enter the property until check out has been completed.

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Any delay in conducting the check out could leave room for doubt if the tenant claims the property was entered into between their leaving and the check out' The check out may or may not be in the presence of the tenant but in either case must only take place when the property has been fully vacated.

There is no requirement in law for the tenant to be present at the check out but by the same token they should not be discouraged or prevented from attending if they wish to do so.

The tenants are within their rights to appoint a representative to attend on their behalf if they are unable to be present. lf the tenant, or representative, is to be present it should ideally take place on the last day of the tenancy with the tenant or representative handing over the keys at the end of the process.

lf it takes place with the tenant present after the end of the tenancy (with the agreement of the agent or landlord) then the tenant should have previously handed over the keys (on the last day of the tenancy).

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ln either event the agent should make arrangements to agree a mutually acceptable appointment with the tenant and whoever would be conducting the check out.

It is perfectly acceptable for the agent to allow an inventory checker to make the appointment direct with the tenant as long as the agent has informed the tenant in writing that this is what will happen.

A less efficient method for arranging the check out is for the agent to ask the tenant to make the

appointment directly with the inventory checker. There are potential problems with this procedure as there are often no checks in place to ensure that arrangements have been made. The tenant may not see why they should have to bother to do this and just leave the property. There is the danger that the check out date could pass with no arrangements having been made.

Sometimes a check out will take place without the tenant present. This may be for a variety of reasons:

. the tenant has work or other commitments . the tenant vacated over a weekend or has moved away from the area . the tenant does not want to be present . the tenant does not wish to have a representative present This is an acceptable procedure but must only be undertaken when the tenant has relinquished possession of the property by returning the keys and/or surrendering the tenancy.

Until the keys are returned or the tenant has surrendered the tenancy, the tenant is still deemed to be in possession of the property even if it is empty. This can apply even if this is after the end of the tenancy or notice period.

(The question of whether a property has been abandoned or where there is doubt about the tenancy

having been surrendered is a complex one and does not fall within the remit of this handbook and is therefore not covered here.)

Self check question 1 Explain what you think are the advantages and disadvantages of a representative attending the check out if a tenant was not able to be there.

Compare your answer with that given at the end of this section.

6.2 ADVISING THE TENANT OF THEIR OBLIGATIONS An agent has a duty of care to the tenant to ensure that they are fully aware of what the check out entails and what their obligations are in the matter.

When assessing a dispute over a deposit claim, the appropriate Tenancy Deposit Protection Scheme will look to see what information and guidelines the tenants were provided with before the check out (more on this in Section 7).

Best practice would dictate that the tenant is sent a comprehensive letter a few weeks before the check out advising them that they are required to ensure that they have complied with the obligations of the tenancy relating to how the property should be left at the end of the tenancy.

It is acceptable to give the tenant some examples of what they should do. However, the agent should be aware that if they provide a list of examples they should also advise the tenant that the list is not necessarily exhaustive. Otherwise the tenant could claim that they reasonably relied upon the list given by the agent and could not be held liable for something not listed.

A Guide to Best Practice for lnventory Providers O ARLA Asset Skills NAEA RICS 2007 updated 2011

The agent should also advise the tenant in the letter that at the check out they will be expected to: . have the property vacated and ready for inspection

. hand over the keys and not be able to return to the property The advisory letter could also contain information about the potential costs that the tenant could be liable for if they have not complied with the tenancy requirements.

For example, costs relating to:

. an aborted appointment . cleaning the property . spot cleaning or fully cleaning the carpet . gardening . extra time the inventory checker spends tracking down items that were not put back in the rooms stated in the inventorY

. replacement of broken or missing items . removal of rubbish or other items left at the property An agent could provide the tenants with the names and numbers of cleaners and gardeners they could employ to help them prepare the property for the check out.

Self check question 2

ffthe agent provided the detaits of a cteaning or gardening contractor to the tenant, why should they avoid recommending them?

Compare your answer with that given at the end of this section.

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6.3 RELEVANT DOCUMENTATION For a check out to be conducted properly the person undertaking it should have with them:

. the original annotated and signed inventory . any document relating to works carried out during the tenancy (eg, a copy of an addendum to the .

tenancy agreement which allows the tenant to redecorate, hang pictures or erect shelves etc.) documentation of any reported damage to the property (eg, a leak through the ceiling) and any remedial work undertaken by whatever party

. documentation relating to permission granted to the tenant to remove or dispose of items belonging to the landlord

. details of any items replaced by the landlord (eg, a new washing machine) With this documentary evidence the person conducting the check out will have the complete picture not only of what the property was like at the beginning of the tenancy but also of what changes have been permitted or what remedial action has taken place during the tenancy' This will save a lot of time during the next procedure. For example, if it is documented that the tenant was given permission to paint the bathroom walls in primrose as a change from their original colour of blue, then the check out report will not need to point out that the walls have been repainted a different colour

(although it will still need to note if the painting has not been done properly).

To have all the documents to hand is considered best practice but in reality it is not unusual to conduct the check out with only the original inventory'

A Guide to Best Practice for lnventory Providers @ ARLA Asset Skills NAEA RICS 2007 updated 2011

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have to be This is not a big problem. lt just means that the final comments in the check out report will property managers by the property file in the cross referenced with all paperwork and documentation before damages can be assessed.

6.4 WHEN A TENANT IS OR ISN',T PRESEILT AT THE CHECK OUT There are not many differences between conducting a check out with or without the tenant. The process is the same. However there are benefits of having the tenant there, including: . the tenant can be asked if there are any problems that they are aware of. This may provide details of something the inventory provider may not easily spot

. the tenant may be able to provide an explanation of something that may not be obvious oL in a

furnished property, be able to point to the whereabouts of various items not in their original position as detailed on the inventory, thereby saving a lot of time . the tenant can provide a forwarding address . the tenant can explain what the state of the heating system is - has the heating been turned off or, if winter, has it been left on a frost protect? . the tenant can sign a confirmation of the check out findings . the tenant could carry out small jobs that need to be done while the check out is being conducted (eg, re-hanging curtains that were taken down at the start of the tenancy). This will save the tenant some money and will save the agent time having to instruct a contractor to visit the property . if items have been packed in error but cannot be immediately retrieved arrangements can be made for the tenant to drop these into the agent's office . the tenant can provide details of the utility suppliers . the tenant can explain any extra keys they are handing back that were not on the original inventory at the start

Self check question 3 Give funher examples of smatt jobs a tenant could do while the check out was being conducted.

Compare your answer with that given at the end of this section.

6.5 CONDUCTING THE CHECK OUT Below is a brief and basic list of the procedure to be undertaken:

. the check out should be undertaken with the original signed inventory being used as a basic guidebook to the property

. the inventory checker should go around the property in the same way as the inventory was .

recorded (ie, by following the inventory item by item) a sensibly designed inventory should have space to write in comments and a way to indicate that they relate to a check out (such as a column that can be ticked). ln any event it makes sense to write in comments in a different coloured pen to those added at the check in any differences from the original inventory should be noted (see below for what is being looked for)

. . as when compiling the inventory, all areas should be looked at including gardens, garages and outbuildings . meters should be read . a forwarding address should be collected from the tenant . keys should be collected from the tenant . the property should be secured . utility providers should be noted if possible A Guide to Best Practice for Inventory Providers @ ARLA Asset Skills NAEA RICS 2007 updated 2011

What to look for and how The check out procedure will detail all changes that have taken place since the start of the tenancy and provide some evidence as to whether these changes are due to fair wear and tear or to damage.

It is not the purpose of the check out report to differentiate between the two.

The check out should merely record and reflect the changes to the property.The issue of whether it is wear and tear or damage will be assessed at a later stage.

Before conducting an item-by-item check there should be a brief walk around the property to gain an initial impression and to check who might be on the premises. During this initial check the inventory provider should use their eyes and nose.

This quick visual inspection will provide:

. an indication of whether the property is completely empty and ready for the tenants' departure (especially if the tenants are still loading a van or if there are still cleaning materials lying around) o a general indication of how well the property has been looked after. (lf a property looks spotlessly clean on the first impression it is likely few problems will be found. However, there are always exceptions to the rule)

The sense of smell may indicate: . if there is damp in the property . if there has been a pet in the property . if there has been a smoker in the property (at least to a non-smoker)

Following this exercise the inventory provider can start the in-depth check out. Generally they will be looking at: How clean the property is: . is the dirt superficial? ie, can it be dusted or vacuumed away? . is it ingrained? . it is important to look above the eye line and behind things . be aware of health and safety issues on moving heavy items See CD photo 010

Details to Iook for FIoors . excessive wear . general grubbiness, especially to main walkways

. spots or stains . cigarette burns, iron burns, candle wax . small tears and snags . furniture stand marks . pet scratching or staining

The inventory checker should be aware, in a furnished property, if there are clear furniture stand marks on the carpet with the actual furniture placed in different positions. It may be that this is deliberately done to hide damage. The same would apply to rugs being placed in unusual areas.

The rugs and, if possible, the furniture should be moved to properly check the flooring.

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Walls

. dirty marks . furniture rub or scuff marks and scratches/gouges in furniture o picture hooks, screw fittings or holes and damage from their removal . sticky tape, blu-tack or marks left from their removal . blemishes that have been touched up leaving obvious over-painted patches . decoration in a different colour or redecoration in a matching colour that has been poorly done . . .

(leaving marks on ceiling or woodwork) dents from door handles children's scribbles holes from additional aerial or satellite leads

See CD photo 01 1

Ceilings . stains from leaks above . carbon marks from candles or light bulbs which are too powerful . pins, pinholes or tape marks from decorations . dust to lamp shades and light fittings

Woodwork

. chips and marks o pins and nails . damage to window sills . damage to built-in shelves especially cup heat rings or water marks . telephone extension leads or similar pinned to skirtings

See CD photos 014 and 015

Doors

. chips to paintwork, especially around handles and particularly on front doors . holes from hooks etc. which have been added . holes from hooks etc. which were present but are now missing . broken handles, latches and catches . disconnected or removed self-closers . broken outside door items including letter-boxes or pet flaps . damage to locks, lock areas and surrounding door jambs on front doors . finger marks . keys broken in locks

Windows

. cracked glass . mould around the frame . rotting frames . broken locks . broken sash cords . missing window lock keys . holes from additional blinds or curtain rails

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Light, electrical and communication fittings . cracked or broken power points, light switches etc. . no bulbs or bulbs not working . missing or broken light shades . extra telephone points . junction boxes for cable or aerial connection leads for satellite dishes are added or missing . grubby finger marks Other fittings

. Fireplaces - chips, marks, burns or heat damage to mantelpieces - cracked tiles to fireplace surrounds or hearths - wood burner doors intact - fireplaces not cJeaned out

. Fitted cupboards or wardrobes - doors open and hinges work - broken handles and catches - dirty shelves - back panels to wardrobes are not broken - drawer bases not broken - sliding doors still on their runners

- cracks or flaws to mirrored doors

Kitchens . Worktops - knife cut marks - from chopping or slicing bread - burn or scorch marks - greasy surfaces - water damage or mildew to wooden work surfaces

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- chips or dents

. Cupboards and drawers - inner cleanliness - cleanliness of outside, particularly eye level cupboards

. Sinks - water marks or limescale

- staining in plastic sinks

- burning or melting to plastic sinks - scratching - plug or inset items in place

. Cooker hood - greasy panels or filters - fabric blanket style filters missing

- knobs, covers and light bulbs broken or missing

A Guide to Best practice for lnventory Providers @ ARLA Asset Skills NAEA RICS

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Cookers

- carbon marking/burnt on grease around gas burners and in the oven including removable shelves and grill Pan - burn or scorch marks to the casing - scratch marks to stainless steel or enamel - control buttons and knobs intact and in place - grill pan and inset rack and separate handle all present Fridge/freezers - defrosted and clean including the bottom of door shelves and dry (ie, no standing defrosted water)

- crumbs/dirt in door seals

- broken door shelves, edges, fittings or salad bowls - scratches and dents to the casing - interior odour free

. Washing machines - is the door catch broken?

- cleanliness of soap dish - state and cleanliness of inner rubber ring

. Microwave ovens - clean inside - turntable plate intact

Useful tips: be tactile. Lightly running fingers over a worktop will show up faint cut marks and unfortunately the best way to check if an extractor is dirty is to touch it.

Move innocent items on a worktop like a chopping board or a pile of telephone directories.

See CD photo 012.

Bathrooms/shower rooms/cloakrooms . Bath/shower - state of outlet and taps, shower hoses etc.

- scratches or chips to bath or shower surface - shower cubicle panels for limescale or watermarking - shower hoses for stretching/unravelling - shower riser rails, clips or fittings broken - sliding cubicle doors still slide - bath side panels for cracking - mastic around baths and shower cubicles for mould/mildew - plug holes free from hair and other debris - plugs and chains intact or as original inventory

. Basins - as above and cracks to basins or pedestals

. Toilets - cleanliness of bowl

- condition of seat and cover and seat fixings (including seat feet) - cracks to bowl including underside and fittings

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Fittings - rails pulling out of walls - toilet roll holder inserts broken or missing Extra bathroom checks - state of shower curtain and fittings - inside of bathroom cabinet See CD photo 013

Furniture . cushions and mattresses need to be checked on both sides (assuming that a mattress can be lifted) . check table tops by lifting table cloths and mats if necessary . glass table tops for scratches . dining room chair seats . sofas for wear, stains, dirt under cushions . wooden furniture for scratches, chips and heat marks (hot cup rings) . kitchen equipment, crockery etc. for breakages or chips, broken glasses etc. . all furniture for animal damage, including banisters and rails See CD photos 016 and 017

Utility meters

All meters should be read, preferably in the presence of the tenant. With 'key' meters the inventory checker should check whether there is any credit left in the meter. The tenant should leave credit equivalent to the amount that was on the meter when they moved in.

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Self check question 4 You are conducting the check out and the tenant is impatient for you to finish. lt is a large

furnished property and willtake some time. What do you saY to the tenant?

Compare your answer with that given at the end of this section.

6.6 ITEMS LEFT AT THE PROPERTY ln addition, the check out must list items which are in the property but were not included in the original inventory. Ouite often these will be things deliberately left by the outgoing tenant because 'they might come in useful for the new tenant'.

The problem with this situation is that the landlord who started off with an unfurnished or orderly furnished property ends up after a while with a property full of cast off furniture, which will then cost money to remove.

However, if goods are left in the property and the agent took no steps to ascertain whether the landlord wanted them then the agent would be liable for the cost of removing them.

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The agent should take care of the situation before the start of the next tenancy and ensure that the outgoing tenants pay for all the associated removal costs. aware of with comply and safe be must items All furnishings. goods soft and the liability around electrical of an safety the checking pay of cost for the to happy be would landlord legislation. lt is unlikely that the move. to be bothered not could tenant old automatic washing machine which the Even if the landlord was content to allow the goods to remain in the property the agent must be

lf the items are safe and the landlord is prepared to have them in the property and accept liability for them

then these should be added to the update inventory' lf the items are clearly left over rubbish then it is acceptable to just record (room by room) that 'a

quantity

of rubbish/pact<agingTdiscarded personal items' has been left. However, it is important for the avoidance of doubt to specify *h"r" the rubbish has been left for example, 'to the left hand side of main window'.

Again the tenant would be liable for the cost of removing and disposing of these items. See CD photos 018 and 019.

Self check question 5 What are the points a landlord would have to consider when deciding whether to agree to keep a fridge at the propefi by the outgoing tenant?

Compare your answer with that given at the end of this section.

6.7 THE NEED FOR THE TENANT IF PRESENT TO SIGN ldeally if a tenant is present at the check out they should be asked to sign a document stating that they agree with the findings of the check out.

However, in practice this is not straightforward as the check out report is a document that will be constructed after the event back at the office of the person who undertook the check out procedure.

The notes for the basis of the check out report will be annotations on the original signed inventory. lt would be unreasonable however to expect a tenant to sign a document like this because it could easily be added to after they have left.

Again it is quite possible that a tenant will not agree to the findings of the check out and will refuse to sign such a document.

Therefore what is suggested is that the agent has with them a standard form (which could be pre-printed with the address of the property) that states that a check out was conducted at the above property at a specified time and date and that the specified tenant was present.

The document can state that the tenant agreed that the person conducting the check out had carried it out across the whole property and that they have handed over all keys, provided a forwarding address and agreed with the meter readings.

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6.8 POSSESSION AND SECURITY OF THE PROPERTY Once the check out has been done and the formalities as mentioned above have been completed with the tenant (if applicable) the property should be secured in the following way: o make sure all windows are shut and, if applicable, locked

. make sure all back, side patio doors, garage doors etc. are locked . make sure any side or back garden gates are secured . make sure central heating/hot water programme is switched off and/or thermostat turned down (if the tenant is present elicit their help in this) and report all action taken to the office

. make sure all lights are switched off . set alarm code if applicable . lock front door ensuring all locks are secured . return keys to agent ensuring they are either coded with the agent's own code or tagged to ensure identification (but not in a way that will comprise security)

. tenants, if present, should be advised of the next steps in the process 6.9 THE IMPORTANCE OF COMMUNICATING PROBLEMS TO THE AGENT The check out report should be provided to the agent within 48 hours.

However, the keys should be returned to the agent as soon as possible, which may be immediately after the check out is finished but, if not, within a few hours and always on the same day.

Urgent problems with the property should be brought to the attention of the agent when the keys are returned. lf there is a delay in returning the keys the agent should be telephoned as soon as possible. lt is not acceptable to just note the problems on the check out report.

Urgent problems generally fall into two categories: . those which require an urgent solution -usually plumbing problems that involve water leaks which will cause damage if left unchecked

. non-urgent problems which require immediate attention because of the short turnaround between the departure of one tenant and the arrival of the next This would include cleaning, gardening, the removal of rubbish and all maintenance issues.

Although not a requirement of the check out report it would also be useful, and would foster good will, if the inventory provider communicated to the agent or landlord items that may require maintenance like broken guttering, dripping overflows etc.

6.10 THE CHECK OUT REPORT The check out report should be completed within 48 hours of the visit and sent to the agent or landlord within that time.

It should include:

. the address of the property . the date of the check out . the name of the tenant present if applicable

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. the name of the company responsible for the recording of the inventory and the date of recording . the tenant(s) who signed it and the date of signing . the keys taken from the tenant (if applicable) and what was done with them . a general description of the property in relation to the original inventory. This is a relative

deicription. lt is acceptable to state that a property was left in a good condition as long as it was good in relation to the original condition. lf the tenants have looked after a property in poor iondition well this should be recognised. Similarly, a very good condition new property can still be described as being presented in a poor condition if this accurately describes the lack of care taken by the tenants

. a line by line description of any discrepancies between the original inventory and the state of the property at check out, including: - differences in the condition of items - items missing - items present that were not listed on the inventory

All descriptions should be relative to the original description eg, a carpet that was well worn on the original inventory but now has a noticeable stain should only be recorded as having a stain.

The check out report should include no attempt at blame or explanation. lt should merely record discrepancies. lt is the next stage at which responsibility and blame should be apportioned (see Section 7).

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Self check question 6 Why is it important that the agent has the completed check out report as soon as possible?

Compare your answer with that given at the end of this section.

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ANSWERS TO SELF CHECK OUESTIONS Self check question 1 Advantages of having a representative attend:

. they can have any items of damage pointed out to them . they can be shown the comparison against the original inventory . they can then relay this information to the tenants having seen it for themselves Disadvantages of having a representative attend:

. they may not be familiar with the property . they may disagree with the inventory checker's findings Self check question 2 Agents should always try to avoid recommending any contractor. lf the contractor who is usually reliable then fails to carry out a proper job the tenants could claim that they relied upon your recommendation so therefore the job should be acceptable.

Self check question 3 Small jobs that a tenant could carry out while the check out was being conducted could include: . finding missing items that may have been inadvertently packed

. cleaning a kitchen work surface . cleaning finger marks off a light switch Larger jobs could not be done as this would delay the check out process.

Self check question 4 You should explain to the tenant that the check out is an important part of the procedure and needs to be done properly to protect the interests of all parties. You would probably go on to state that you cannot be rushed and that if they wish to return at a later specified time then they are welcome to do so. lf this was

agreed then you would ask the tenant to ensure that they had given you all the keys in the event the tenants decide not to come back.

(The inventory checker should not be intimidated by the tenant as they may miss something of importance. The tenant may deliberately try to hassle the inventory checker in order distract them from some damage or missing items.)

Self check question 5 Before agreeing to keep the fridge the landlord needs to decide whether any increased value would be negated by the cost of a safety check. The tenancy agreement is likely to state that the landlord will be responsible for the repair and maintenance of electrical goods, so keeping such an item could actually be more of a burden than a benefit. lf the landlord said that he would give/sell the fridge to the next tenants he would still have to have the electrical check done as legislation states that any electrical goods supplied must be safe.

Self check question 6

1. Because the agent (and landlord) need to be aware of any work that needs doing to the property as soon as possible so that they can start organising it especially if there is a new tenancy commencing shortly.

2. lf it is a protected deposit (ie an Assured Shorthold Tenancy) there are strict time scales at the end of the tenancy for informing the tenant of any proposed deductions from the deposit and for returning the deposit if there are no such proposed deductions.

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amages Although it is not the external inventory provider's role to assess the amount of damages and the liability, this section is important to all those whose job it is to evaluate and advise on claims for damages at the end of the tenancY. It is not unusual for the claim for damages to be contentious with neither party happy with the outcome.

However, this can be greatly reduced if a consistent formula can be applied and the agent can demonstrate how the figures have been arrived at.

Learning obiectives Having completed this section you will know and understand about: . the obligations relating to how the deposit is held

. the meaning of betterment . the liability of the parties . the basis of fair wear and tear o compensation, repair or replacement . assessing and apportioning costs . mediating between the parties . Alternative Dispute Resolution . Tenancy Deposit Protection under the Housing Act2004 7.1 HOLDING THE DEPOSIT All client money must be held in a designated client account and must not, under any circumstances, be used for the agency business or for another landlord or tenant.

The money held must be logged and should be able to be readily reconciled as required.

The tenancy agreement should detail who is holding the deposit, how it is held, whether interest will be payable to the tenant or not and it should also provide details of the provisions for the return of the money at the end of the tenancy.

The landlord should understand that the deposit money is the tenant's and remains so for the duration of the tenancy. The deposit will be returned to the tenant at the end of the tenancy unless any damage was incurred which the landlord is able to claim for under the terms of the tenancy agreement.

There are currently two ways in which an agent can hold the tenant's deposit:

. as stakeholder . as agent for the landlord The Tenancy Agreement may indicate which scheme is protecting the tenant's deposit.

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As stakeholder *Not Scotland see appendix Holding the deposit as stakeholder effectively means that the agent is holding the money in trust for both parties.

Therefore if the agent is contracted to hold the deposit in this way they cannot distribute any of the deposit at the end of the tenancy without the written agreement and consent of both parties' It is the one time that the agent cannot act on their client's instructions alone.

As agent for the landlord This method of holding the deposit means the agent must act on their landlord client's instructions regarding the disposal of the deposit at the end of the tenancy.

The agent has a duty to pay the deposit in line with the landlord's request even if they feel that the landlord's claim is unreasonable. lf the tenant believes that the landlord's claim for damages is unreasonable they would have to pursue the matter through the courts or the relevant tenancy deposit protection scheme if applicable. There are rare occasions where this may be the case.

Self check question I

lf an agent hetd the deposit as stakeholder but decided to pay out the deposit without the

consent of either the tandlord or the agent, what recourse would the landlord and/or tenant have against the agent?

Compare your answer with that given at the end of this section.

7.2 BETTERMENT The term betterment (improving something) can be applicable to both the landlord and tenant.

Betterment - landlord lf, for example, during a tenancy the small fridge broke down and needed to be replaced, the landlord only has an obligation to replace like for like and so the tenant cannot demand a new large fridgeltreezer instead. (This also works on the principle that the tenant took the property as seen.)

Betterment - tenant With regard to assessing damages at the end of the tenancy betterment is applicable to the tenant. lt is a principle of law that there is no requirement for the tenant to leave the property or its contents in a better condition than it was at the start of the tenancy. There is also no need for the tenant to replace any missing or broken items with articles of a higher value.

An exception would be if the tenant and landlord had agreed to the tenant carrying out improvements to the property and this was reflected in the terms of the tenancy agreement.

It is important that the landlord understands there is no requirement for betterment and that they must

also take fair wear and tear into account when considering any claim. (The basis of fair wear and tear will be covered later in this section.)

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It is considered good practice to remind the landlord of the basis of making claims against a deposit at the the time of the check out. ln this way they are prepared before the end of the tenancy and can avoid a claim' making before lapse problems which could arise by allowing time to

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The tenant should also be aware that they cannot use betterment to offset other damage. For example, the tenant improved and looked after the garden, leaving it in a better condition than when the tenancy started, they can't claim that would compensate for a ruined carpet.

Self check question 2 Give a brief explanation of what it meant by the phrase, the landlord has no entitlement to

betterment'.

Compare your answer with that given at the end of this section.

7.3 THE LIABILITY OF THE PARTIES It is important that the agent dealing with the assessment of damages is fully aware of who is liable for what.

The agent must use the documentary evidence to hand, namely: . tenancy agreement

. the inventory . the check in report . the check out report The liability of the parties should be set out clearly in the tenancy agreement and include: . the tenant's liability for damages or breakages . the tenant's liability for costs incurred by the landlord or agent . the tenant's liability to remove their possessions and all rubbish at the end of the tenancy

. the requirement to allow for fair wear and tear . the requirement for the costs to be reasonable . the ability for the landlord to claim compensation . that the deposit held can be used for such claims . any agreement for the tenant to undertake decoration or works . aflv agreement for the tenant to remove and dispose of any of the landlord's contents . if agreed, the tenant's liability to remove their satellite dish or other fixtures and to make good The landlord cannot claim against the tenant for compensation or for costs if there is no provision in the tenancy agreement for this.

However, even in the event that there is an oral contract and no tenancy agreement, the landlord cannot claim for betterment and must make allowances for fair wear and tear.

The landlord is liable for all repairs or works which: . are due to fair wear and tear . there is a statutory obligation to repair or maintain

. they have undertaken liability of in the tenancy agreement

A Guide to Best Practice for lnventory Providers @ ARLA Asset Skills NAEA RICS 2007 updated 2011

Therefore the agent needs to have a good understanding of: . the statutory obligations that are placed on the landlord

. the fact that there is no liability on the tenant regarding betterment . that the tenant is allowed fair wear and tear . the terms in the tenancy agreement that is being used

Self check question 3 Give at least three examples of a tenant's liability that may be found in a tenancY agreement.

Compare your answer with that given at the end of this section.

7.4THE BASIS OF FAIR WEAR AND TEAR ln order to apply a consistent approach to assessing compensation for damages or apportionment for replacement, the agent needs to understand the meaning of fair wear and tear' This is based on the following criteria: . the length of the tenancy

. the number and ages of the tenants . the condition and age of the item or items at the start of the tenancy . the expected useful lifespan of the item or items and the expected appropriate use of such an item or items

. whether any work or repairs were carried out during the tenancy The landlord and the agent must take these criteria into account.

The length of the tenancy lf a tenant has occupied a property for,say,two years there will naturally be more wear and tear than if the

tenancy lasted just six months.

The number and ages of the tenants

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A greater degree of wear and tear must be allowed if there are children or a number of sharers in the property.

There is no point in a landlord demanding a larger deposit at the start of the tenancy because he has agreed to take a family with three children under the age of eight with a dog. By accepting the family he is accepting that there is likely to be a greater degree of fair wear and tear than if he let the property to a working couple with no children or pets. He could, however, have negotiated a slightly higher rent to compensate him for the greater amount of fair wear and tear. lf a family had young children it would be reasonable to expect there to be wear marks on the wall down the stairs, as a child would not be able to reach the banisters. However, crayon marks on the wall would be considered damage and not wear and tear.

Similarly a landlord must accept that if he is renting to four sharers then it is likely there will be four separate sets of friends visiting the property and making use of the facilities.There will be a high level of fair wear and tear to the property but any damage over and above the consideration of wear and tear will be treated and charged as such.

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The condition and age of the item or items at the start of the tenancy the When assessing damages or replacement value the agent will need to know how old the item was at start of the tenancy ,nd th"n add the length of the tenancy to assess the current age of the item'

For example, if the living room was decorated two and a half years before the start of an 18 month tenancy, the decorations would be four years old at the time of the assessment. The same would apply to carpets, appliances, furniture, fixtures and fittings, etc.

The expected useful lifespan of the item or items and the expected appropriate use of such an item or items Decorations, carpets, furniture, fixtures and fittings all have an assessable lifespan beyond which they have no value even if they are still in place and serviceable' For example, an automatic washing machine for the average household is expected to last approximately three to five years. However, if the property is rented to a single person the use will be considerably less than for a family with several young children where it may be used most days of the week. As a result the machine with a heavy usage is likely to break down because of fair wear and tear sooner than the machine used by the single person.

It may be that there is a washing machine in a property that is eight years old and still functioning perfectly well.However, due to its age it is not considered to have a value. lf someone tried to sell a machine that old they will probably find if,at tf,ey eventually have to pay someone just to take it away as it has no worth.

Listed below is a guide of useful Iifespans of room decorations and various fittings and fixtures.

These are guidelines only and the schemes may not use these if a dispute is referred'

The gauge is approximate and is assuming an average size property with average use. Decoration lifespan depends on the size of the rooms and areas. For example, if a living room was very small and the occupants had to squeeze between the sofa and the wall every time they needed to draw the curtains then the decorations could not be expected to last as long as those in a large reception area with plenty of walk through space.

Decorations Hall, landing, stairs between 2 to 3 years Living rooms approximately 4 years Dining rooms approximately 6 years Kitchen I bathrooms between 2 to 3 years Bedrooms approximately 5 years Carpets Budget quality between 3 to 5 years Medium quality between 5 to 10 years Top quality up to 20 years Consideration must be given as to whether the carpet is suitable for the area it is in. For example, you could have a medium quality carpet laid in the hallway that is deemed suitable for only bedroom use' Therefore it would not be unreasonable for the carpet to wear out very quickly in a high footfall area. ln these instances the carpet should be regarded as being 'budget quality' as it was not suitable for the use.

The quality of 'wood block'flooring will vary enormously from a thin veneer type of flooring to a good quality timber floor. The length of use would very much depend on the quality and could be regarded in the same way as carpets.

1t is worth the agent thinking about adding a specific clause at the start of the tenancy requiring the occupiers to ensure that their furniture or footwear is not likely to cause damage to the wooden flooring'l A Guide to Best Practice for lnventory Providers @ ARLAAsset Skills NAEA RICS 2007 updated 2011

White goods Washing machines between 3 to 5 years Cookers/ovens/hobs between 4 to 6 years Fridges between 5 to 8 years

Whether any work or repairs were carried out during the tenancy Consideration must be given to any repairs, alterations or work carried out at the property during the tenancy.

For example, the parties may have agreed at the start of the tenancy that the property was not sufficiently

clean and that the landlord would pay to have it professional cleaned. Therefore it is not acceptable for the property to be left in a dirty state at the end of the tenancy even though the original inventory and check in report would have noted that the property was dirty.The receipt for the cleaning would be used to demonstrate that the work had been done'

Another example would be if a leak in the roof caused staining and damage to the bedroom carpet, the tenant could not be responsible for this.

Self check question 4 You have received a check out report with the following comments:

Hallway carpet is:

(a) grubby to walkway areas and (b) fraying there are chip marks on the paintwork to the stairs the radiator has rust marks on the base the wall behind the front door has a deep gouge from the handle

Kitchen:

the sink has limescale marks the washing machine soap dispenser is difi the grouting is loose and flaking around some tiles the shelf in the wall cupboard is bowed and loose

The property was let unfurnished for l2 months to three young professional sharers.

Note which items you feel are due to fair wear and tear and what are not.

Compare your answer with that given at the end of this section.

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7.5 ACTION Once the agent has received the check out report and compared this to the inventory they must then decide what needs to be done.

Any work generally falls into one of five categories:

. immediate action . missing items . recommendations to the landlord . damage by the tenant (covered in the next section) . maintenance - this would be the responsibility of the landlord

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lmmediate action

. lf any issues present a risk to health and safety for example, cracked electrical sockets or loose stair carpet, the agent must make arrangements to get these fixed as soon as possible.

. lf items need work because of wear and tear the landlord should provide funds for the agent to instruct the appropriate contractors.

. lf the problem is the liability of the tenant, then action will depend on how the deposit is held ie, as stakeholder or agent for the landlord.

. A further consideration is if the property is about to be let again. The agent must ensure the

landlord understands that they have a duty to the incoming tenant to have the property ready for occupation. Again the works will depend on whose liabiliV it is and how the agent is holding the deposit.

Stakeholder deposit - if it is a stakeholder deposit the agent is unable to use it without the consent of both parties. lf the tenant does not agree to the repairs at the outset the agent must ask the landlord to provide the funds. They can then make a claim against the tenant for the costs' Agent for the landlord - when holding the deposit this way the landlord would have already authorised the agent in the terms of business to make the necessary deductions from the deposit' Therefore the ugeni"un take the deposit money to pay for required works. However, the agent must be able to prove to ttre tenant that it was their liability and they also have a duty to ensure that they do not recklessly spend the money.

Missing items It is not unusual for tenants to inadvertently pack some items that belong to the landlord. This is especially

common if they have friends helping or a removal company packing for them.

Time should be allowed for the tenant to return the items to the agent. The given time will depend on various factors such as whether the property is about to be re-let, the necessity of the item to the property etc. However, it should not be allowed to drift on for too long as the matter is likely to get forgotten' The tenant should be clearly advised that if they are not returned in the specified time frame they will become liable to pay a proportion of the cost of the replacement item or compensation to that amount. lf the tenant has broken or lost something in the property and not replaced it then the landlord is entitled to seek compensation to assist towards replacing the item.

The landlord cannot expect the tenant to pay the full amount towards the cost of replacing the item,as this would be considered betterment. Even if the item was new at the start of the tenancy, the tenant had use of it for the equivalent time of the tenancy so therefore they should pay a proportion of the cost.

The question of calculating compensation is covered in the next section. lf the tenant offers to buy the replacement item then the agent should take their client's instructions, as the landlord may wish to take some financial compensation in lieu of receiving replacement goods.

(Please note, the landlord can only do this if the tenancy agreement provides for this')

Recommendations to the landlord The managing agent is, as mentioned in earlier sections, the 'eyes of the landlord' and should therefore point out to them repairs or maintenance to the property that is their liability.

Failure to mention these may result in the landlord's property deteriorating without their knowledge.

A well maintained property is likely to be let more easily, for a better rent and will attract the more discerning applicant.

ln addition the landlord is ensuring that his investment or future home is protected and retains its maximum value.

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Self check question 5 You receive the check out report and it sfafes that the lawnmower is missing.You telephone the

tenant who says that he got rid of it during the tenancy as it never worked and he bought himseff one that he used. How do you respond?

Compare your answer with that given at the end of this section.

7.6 DAMAGE BY THE TENANT . APPORTIONING COSTS Damages by the tenant Where the property or contents have been damaged by the tenant,the agent has to consider what is the most appropriate course of action:

. repair or cleaning . replacement of the item if it is damaged beyond repair . compensation for the reduction in value of the item Repair or cleaning The agent should wherever possible promote repairs or cleaning rather than the replacement of an item.

For example, the agent should attempt to have a stained carpet spot cleaned first to see whether the stains come out.

Dirt is not fair wear and tear under any circumstances and the tenants would be expected to pay the cost of having the property cleaned if they did not leave it in a clean condition. ln the case of repairs it may be necessary to obtain estimates for work. For example, French polishing of furniture with bad water marks. Other repairs may involve replacing broken catches on a washing machine door etc.

Tenants offering to go back to the property to clean The tenant may argue it is unfair to have to pay the cost of a professional clean. However, they must be made aware that they had the opportunity to clean the property while they were in residence, failed to do so and therefore should be expected to pay someone to do this.

The agent should be able to draw the tenant's attention to the letter that was sent to them prior to the check out which outlined their liability and responsibility regarding the handing back of the propefi. lf the former tenant offers to go back into the property to clean they must be made aware they cannot do this. The tenancy has ended and they have no more right to enter the property than a stranger walking

down the street.

Other than the fact that they have no right to enter the property, there are further issues that would prevent this from being a sensible solution.

. lf they were allowed into the property the agent or inventory provider would have to make a further visit to the property to check that the work was done to an acceptable standard and the cost of the visit would have to be paid by the former tenant.

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. There is no reason to suppose that if they left the property in an unacceptable condition at the end of the tenancy that they would clean it to an acceptable standard later.This could result in still property' having to instruct cleaners after the former tenants have been back and 'cleaned' the

Professionally clean versus domestically clean The tenant is expected to hand the property back in a clean condition. However, there are some landlords who expect the tenant to have the property professionally cleaned.

The only times a tenant would be expected to have the property professionally cleaned would be if there were a separately agreed and negotiated clause contained within the tenancy agreement providing for the tenant to do this or if the tenant caused a problem that could only be rectified by a professional clean.

The landlord must accept that there is a difference between domestically clean and professionally clean.

However, domestically clean should include for example, the cleaning of all kitchen cupboards and units inside and out, and the removal of soap deposits and limescale in bathroom fitments, etc.

A professional clean may entail steam cleaning of carpets and the washing of walls and skirting boards, steam cleaning tiles, etc.

Replacement of the item if it is damaged beyond repair There are times when an item is so badly damaged that it is not economical to repair it or so badly marked that it cannot be properly cleaned. The tenant therefore is liable for a percentage of the costs to replace these items.

As mentioned throughout this section the landlord is not entitled to betterment and therefore if any item is to be replaced or if the property needs re-decorating then the agent must work out the proportion that the tenant is liable for. The tenant's liability will extend to the residue of the 'life expectancy' of the item.

The approximate'useful life span'of items was covered in the last section.

Example of 'useful lifespan' A living room has been covered with posters using sticking tape and,as a result,all the walls are left with patchei where the tape has taken the paint off. The room was decorated six months before the tenancy started and the tenants stayed just six months.

This is damage and under no circumstances could this be regarded as fair wear and tear no matter how old the occupiers were or how many tenants were living there.

The calculation may be assessed in the following manner: useful lifespan of the decorations to that room

the age of the decorations at the end of the tenancy potential remaining lifespan for the decorations (a minus b) cost of redecorating the room

depreciation of value (d divided by a) liability for tenant (e multiplied by c) Remember it was mentioned earlier in this handbook that the 'useful lifespan'for decorations will depend on the size of the room.

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However, it is important that whatever yardstick you use regarding the 'useful lifespan' of an item, it is essential the agent is able to demonstrate to a landlord and/or tenant that they do have a method of calculating liability amounts and that it is applied consistently and without bias to all tenancies.

Compensation for the reduction in value of the item There are times when a tenant has caused damage to the property or the contents but it doesn't warrant complete replacement. For example, a cigarette or candle burn on the living room carpet or a scorch mark to a work surface in the kitchen.

A landlord may say that as a result of one of the above examples the whole item is ruined and that the tenant must pay for the cost of replacement. However, a landlord cannot lawfully charge for the full cost of replacement. lf the landlord has an 'executive' property at the top end of the market where the tenants are paying a very high rent they may be able to claim that the single burn or scorch mark has rendered the item ruined as it would not be acceptable to rent out such a property with damage.

Or if the cigarette burns completely spoil the appearance of a carpet and the damage cannot be hidden under a rug, the landlord could justify the replacement of the carpet.

However, in neither case would the landlord be able to claim for the full replacement costs.

lf the stains or marks are not so great as to qualify for replacement,the landlord must be prepared to accept compensation for the reduction in value of the item. lf the landlord has insurance or the tenant has taken out insurance to cover for damage to the landlord's goods, the tenant would only be liable to pay for the excess. lf it is the landlord's insurance they may be liable for any increase in the insurance premium because of the insurance claim.

As with the 'useful lifespan' of items and decorations the agent should have a list of charges that they would make for such things as: . cigarette burns to surfaces, carpets or furniture

. candle burns to surfaces, carpets or furniture . stains to carpets . iron burns on surfaces . stains to mattresses . scratches to kitchen work surfaces . scorch marks to kitchen work surfaces An agent should compile their own list of costs so that they can apply these consistently in every case and be able to demonstrate that they do so.

A guide to costs that may be aPPlied It is worth the agent either having copies of catalogues or the website address of various retailers like Argos, House of Fraser, Peter Jones, lkea, etc.These can be used to look at prices of contents, fittings and possibly fixtures.

Once all the figures are worked out the agent should compile a schedule of costs listing each item individually with the appropriate compensation/repairs costs noted beside each. lf there is an item like an ornament that the agent cannot price they should list it on the schedule but leave the price area blank for the landlord to complete. ln this instance the landlord should be able to back up his claim in the form of a receipt or estimate that can be qualified.

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Self check question 6 you are managing a two bedroom terraced house. The entire property was decorated one year before the stirt of tne bnancy. There are medium quality carpets which are now six years old and a washing machine which is two years old.

The tenants are a husband and wife and one four-year-old child. The tenancy lasted one Year.

On the check out it was found that the washing machine was hroken beyond repair due to the tenants' negligence*.

The carpet in bedroom 2 was ruined and will cost f2OO to replace and there was one candle burn to the living room carpet by the fireplace. You have sourced a new washing machine of a similar standard priced at f350. * For the purpose of this question the washing machine is broken beyond repair.

How much would the tenant be liable to pay?

Compare your answer with that given at the end of this section.

7.7 MEDIATING BETWEEN THE PARTIES It is important that throughout this process the agent remains strictly neutral having arrived at figures based on fact and standard processes. lf the agent is holding the deposit as 'agent for the landlord'then they would obtain the landlord's consent

to the deductions and then dispose of the deposit in accordance with those instructions. Even if the deposit is held in this way the agent should still draw up a schedule of costs and arrive at the figures in a formal manner. This may be needed as evidence in the event the tenant disagrees with the deductions and seeks compensation through the courts.

The process below assumes the agent is holding the deposit as stakeholder.

The schedule of costs should be sent to the landlord with the check out report. The agent should also send a letter requesting the landlord's confirmation that he agrees with the figures provided. The letter should also state that if the landlord does not agree with the figures he should provide alternative costs for the agent to pass onto the tenant.

The tenant can be sent a copy of the check out report at the same time, together with the advice that the agent is awaiting their client's instructions regarding the disposal of the deposit.

Once the agent has heard back from the landlord they should check through the schedule of costs to ascertain whether the landlord is in agreement.

lf the landlord responds with a demand for a much higher level of costs that the agent feels is

unreasonable they should contact the landlord to discuss their reasons for the request. lt may be that the agent will have to reiterate to the client that they are not able to claim for full costs and explain how the figures have been arrived at and to remind the tandlord about the obligations of holding the deposit as a stakeholder.

The agent should also explain to the landlord that if their claim is unrealistic it could delby matters, cause friction and perhaps even end up in court where it is likely the judge would agree with the tenant or at least with the agent's findings.

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lf the landlord still insists that they want to continue with the high claim then the revised schedule of costs should be sent to the tenant for their comments.

lf the landlord is happy with the costs or has made minor adjustments the schedule should be forwarded to the tenant for their consent or comments. The tenant should be advised that if they wish to disagree with the findings they must provide documentary evidence to support their claim. (For example, receipts for cleaning or gardening, etc.)

lf both parties are in agreement the deposit can be distributed as directed.

If there is a dispute about the amount of deductions then the agent should send the non-disputed amount

of the deposit to the relevant parties.

For example, the deposit may be f 1,000 with the landlord claiming f500. lf the tenant says they are willing to agree only to f250 then the non-disputed f500 should be returned to the tenant, the non-disputed f250 sent to the landlord and the agent should retain the other f250.

Sometimes a landlord will state that they will not allow the agent to give any of the deposit back to the tenant until the matter is settled. The agent must point out to the landlord that the deposit is the tenant's money and they have the right to have all non-disputed money returned to them as soon as possible. ln the case of a dispute the agent should demonstrate to both parties the method that they used to arrive at the figures. They should remain neutral at all times and attempt where possible to mediate and

negotiate between the parties.

ln the event that, despite the agent's attempts to negotiate a settlement, neither side are in agreement then the agent must advise them that the matter should go to independent arbitration.

NB if the deposit is held in the custodial scheme the agent should endeavour to negotiate but the funds

will be distributed by the scheme.

Self check question 7 You are dealing with a disputed deposit with the tenant refusing to accept any of the f250 claim against his deposit of f800.Your landlord client has told you that you are not to return any of the deposit to the tenant until he sees reason and agrees to the claim. What do you say to your client?

Compare your answer with that given at the end of this section.

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ao 7.8 TENANT DEPOSIT PROTECTION UNDER THE HOUSING ACT 2OO4 Does not apply in Scotland. See separate section.

Tenancy Deposit protection schemes were introduced in April 2007 and apply to all ASTs created after that date or where a formal extension was prepared, after that date, for an AST which existed prior to 6th

April 2007.

There are two insurance backed schemes and one Custodial scheme, each having its own Alternative Dispute Resolution although in 2011 they provided some common guidance around the practice of ADR. This is contained as Section 8.

Custodial scheme lf the agent or a landlord is not part of an insurance-based scheme then the deposit must be paid into a custodial scheme.

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This scheme will hold the deposit independently of the landlord, tenant and agent until the end of the tenancy.

lf all parties agree to the disposal of the deposit then they should confirm the arrangements in writing to the custodial scheme and they will forward the money on accordingly.

lf there is a dispute then the mafier will be referred to the custodial scheme's Alternative Dispute Resolution (ADR).

The parties will have to submit their evidence to the ADR who will then review the documentary evidence and make their decision. The parties will be bound to accept the decision of the ADR.

lnsurance-based scheme Under this scheme a landlord or agent will hold the deposit. lf the landlord or agent fails to abide by the terms of the scheme or abscond with the money, the deposit will be covered by the scheme's insurance.

SUGGESTED ANSWERS TO SELF CHECK OUESTIONS Self check question 1 Either party could sue the agent if the money was disposed of without their consent.

Self check question 2

The landlord cannot expect the tenant to replace broken or missing items with something that is of a higher standard than the original. In addition the landlord must accept that even if an item was new at the stJrt of the tenancy he has to take the length of the tenancy into account when looking at how new or old it was. The tenant only has to pay a proportion of the cost of replacing the item.

Self check question 3 There will be many tenant obligations in the tenancy agreement for which they are liable. Some examples are:

' to pay the utility bills . to maintain the garden . to keep the property clean . to prevent the sinks and pipework from becoming blocked . to report any faults . not to decorate without consent . not to alter the layout of the garden . not to sublet without consent . not to keep a pet without consent . not to install a satellite dish without consent Self check question 4 Hallway:

carpet is (a) grubby to walkway areas and (b) fraying (a) not fair wear and tear (b) probably wear and tear The stairs have some chip marks to the paintwork With three sharers in residence for a year this is probably wear and tear The radiator has rust marks to the base Wear and tear The wall behind the front door has a deep gouge from the handle Care should have been taken when opening the front door. The gouge is deep so it must have occurred on more than one occasion. Not wear and tear

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The sink has limescale marks Not wear and tear The washing machine soap dispenser is dirty Not wear and tear The grouting is loose and flaking around some tiles Wear and tear The shelf in the wall cupboard is bowed and loose

This would depend upon the quality of the cupboard, the amount of other available storage and whether the cupboard was carelessly overloaded Self check question 5 The agent would have to point out to the tenant that they have an obligation under the tenancy to report any problems with the property and they failed to do this, putting them in breach of their tenancy. lt may have been that the mower could have been repaired. The tenant had no right to dispose of the landlord's property without their consent. The tenant would be liable for a percentage of the cost for replacing the mower.

Self check question 6 You would calculate in the following manner. You may have decided the lifespan for the medium quality carpets and washing machine was slightly different to these calculations. These would not be wrong if they are within the guidelines.

Washing machine useful lifespan of the washing machine age of washing machine at end of tenancy

potential remaining lifespan for the machine (a minus b) cost of replacing the machine depreciation of value (d divided by a)

f87.50 per year

liability for tenant (e multiplied by c)

useful lifespan of the carpet age of carpet at end of tenancy

potential remaining lifespan for the carpet (a minus b) cost of replacing the carpet depreciation of value (d divided by a) liability for tenant (e multiplied by c) Candle burn f20 Therefore the tenant is liable lo pay f245

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Self check question 7 you need to explain to the Iandlord that the deposit is the tenant's money and they are entitled to receive and force the tenant the undisputed amount back.The landlord cannot hold the money to ransom to try to agree to the claim.

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eto eposits,

disputes and damages

Guidance prepared by The Approved Schemes (May 20111

Since the introduction of tenancy deposit protection legislation in 2007, millions of deposits totalling billions of pounds have been protected via the three government approved deposit protection schemes.

Each scheme has worked hard to enhance and augment the service it provides to tenants, letting agents and landlords, helping to meet the original aim of the legislation: to raise the standards in the letting industry. These guidelines for dispute resolution are yet another milestone along that path - providing a transparent and consistent approach to dispute resolution by all three schemes, for the benefit of everyone in the private rented sector.

All three deposit protection providers have signed up to the guidelines in this document, and will continue to operate their dispute resolution services using these principles. They will be reviewed and updated as necessary, to reflect current methodology and best practice.

8.1 Introduction For many years, residential landlords have taken a financial deposit from a prospective tenant to protect

against breaches of the tenancy agreement. These breaches could be for things like cleaning, damage/loss of property, unpaid rent or bills.

The deposit remains the property of the tenant at all times. lt is held by the landlord or his agent until the end of the tenancy. The deposit should not be used to subsidise the outgoings or expenditure of the landlord or his agent unless the parties specifically agree to this or the tenancy agreement allows it.

The deposit is regarded as the tenant's money. This means that it should be returned to the tenant at the end of the tenancy, if they have honoured the terms of the tenancy agreement. Since April 2007 tenancy deposits for Assured Shonhold Tenancies in England and Wales have to be protected by an authorised tenancy deposit protection scheme. lf the tenant has broken the terms of the tenancy agreement, then at tenancy end the landlord and tenant

should agree on the return of the deposit and any deductions from it. lf the tenant is unhappy with the amount the landlord wishes to deduct from the deposit or the landlord/agent refuses to engage in the deposit return process, the tenant is entitled to raise their dispute with the relevant tenancy deposit protection scheme. They will need to check which scheme protects their deposit.

The procedures that the tenant or landlord/agent need to take when dealing with a specific tenancy deposit dispute differ slightly depending on the Scheme protecting the deposit. For example, the Deposit Protection Service (The DPS) operates a custodial scheme. This means that the DPS holds the deposit throughout the tenancy agreement so there is no need to send the disputed amount to them when a dispute is raised. TDS and mydeposits are insurance-backed schemes where the disputed amount of the deposit has to be sent to the scheme for the duration of the dispute.

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resolution However, the principles of dealing with a dispute and how the schemes operate their dispute guidance provide to is designed document This service, including the adjudication service, are common. protects scheme which to as regardless a dispute, by to landlords, tenants ,nd ug"nt. when confronted and each to is unique nature, very its by resolution, the deposit. lt should, how&er, be noted that dispute as way same the in governed by'precedent' not every case. Unlike the formal legal system, schemes are are probability'.

Decisions of principle 'balance of the Courts. Decisions are madeLy the Schemes on the made based on the submission of evidence from both parties'

8.2 What is Alternative Dispute Resolution (ADR)?

ADR is an alternative way of resolving disputes, other than by using the traditional route of the Courts' It is an evidence based pio"""", where the outcome is decided by an impartial and qualified adjudicator.

It is not a process of mediation, arbitration, or counselling and the parties will never be required to meet with the adjudicator. Nor will the adjudicator visit the property subject to the tenancy agreement

or dispute. All tenancy deposit protection schemes use the 'adjudication' method to deal with deposit disputes.

The parties in dispute are required to submit their evidence to the adjudicator. They will need to do this within specified timescales laid down by the individual deposit protection scheme. You should check the processes you are required to follow with your particular scheme. The adjudicator will analyse and consider the evidence and make a binding decision as to how the disputed amount of the deposit should be distributed.

Remember that the tenant has no obligation to prove his argument, because the deposit remains his property until successfully claimed for by the landlord. A landlord must prove that he has, on the'balance of probability', a legitimate claim to retain all or part of the deposit. lf he can't, the adjudicator must return the disputed amount to the tenant.

Because participation in this ADR process requires consent by both parties, the final decision of the adjudicator is binding on both the landlord and tenant. lt cannot be challenged except through a Court of Law - although the [arties should seek their own independent legal advice first. The Schemes are NOT permitted to re-open cases unless it can be shown that the Scheme did not follow the processes laid down in its own rules, or did not take into account all the evidence submitted by the parties. ln extreme circumstances adjudicators may ask for further evidence or clarification on a particular matter from either party. ln some cases, the adjudicator may decide that the case would be better dealt with through a formal court process. However, in the majority of cases the adjudicator will make a decision based on the evidence he has in front of him. So: . make sure you submit the evidence you want taken into account

. make sure you send it to the Scheme within the specified timescales 8.3 Who are the Ad udicators?

All three tenancy deposit protection schemes use adjudicators to make binding decisions on the return of the disputed deposit amount. These adjudicators are sometimes employed directly by the Scheme or are independent individuals under contract to the Scheme. Regardless of their employment status, the Schemes are contractually bound to ensure that adjudicators are appropriately qualified and have the skills necessary to make fair and reasoned decisions. lt is not compulsory for a Scheme to state the name of a particular adjudicator or to disclose their identity to either the landlord or tenant'

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All Schemes have found that most disputes are resolved simply by the landlord and tenant getting

involved in a discussion about the deposit at the end of the tenancy, whether this is through their agent or otherwise. Disputes can also avoided by both parties - but especially the landlord - having a realistic expectation about what condition the property should be returned in at the end of the tenancy. The most common causes of deposit disputes are, unsurprisingly, cleaning charges and wear and tear.

Adjudicators use established legal principles when considering disputes. Sometimes, these principles do not meet the parties' expectations. And of course, many disputes are unavoidable simply because the tenancy agreement or pre-tenancy procedures were not set up or followed correctly to begin with.

We recommend that in the first instance, landlords and agents take these steps at the end of the tenancy:

. Remind the tenant of their obligations under the tenancy agreement before it ends, preferably in

writing. Many tenants stay in the property for a considerable amount of time and may not be familiar with the terms of their original agreement. A gentle reminder about what is expected of them can make discussions over deductions from the deposit easier to bear. . Wherever possible, ensure that the tenant(s) attend the 'check-out' process. Ensure that their comments are noted if they disagree with anything during the process, and make reference to these comments when responding over deductions. . The landlord should take into account betterment and fair wear and tear; this will help manage their expectations of what they can claim from the deposit. . The landlord should talk to the tenant about whether they want to claim anything from the deposit.

Communication at an early stage is important when trying to resolve issues. . lf the deposit is protected by an insurance based scheme, the landlord should return to the tenant any portion of the deposit that is not subject to a dispute, immediately. ln the case where the deposit is held by the custodial scheme, please refer to their procedures for releasing undisputed amounts.

8.5 What evidence will an adiudicator be looking for when considerinq a dispute?

A common misconception is that the tenancy deposit protection schemes are biased toward either the landlord or the tenant. When a dispute reaches adjudication, an adjudicator's starting position mirrors that of the courts. The deposit is first and foremost the tenant's money; this remains the case until the landlord can justify their claim to it. The onus is on the landlord to show why they are entitled to claim money from the deposit.

The adjudicator must make a binding decision on the basis of the information provided by both tenant and landlord. This process is evidence based. The landlord must support their claim with evidence to show that the tenant has broken the tenancy agreement, and that the landlord has suffered, or is likely to suffer, a loss as a result. The landlord needs to act realistically when assessing the amount they want to claim.

The adjudicator cannot make any assumptions, or construct a claim on behalf of the landlord or tenant.

The adjudicator's decision will be based on the evidence presented. The evidence provided should be both robust and reliable in order to support a claim. lf a landlord makes submissions which are not supported by evidence the adjudicator may have no option but to disregard them. As a result, when the

deposit is returned to the tenant in deposit disputes this is primarily because the landlord has not provided a strong enough case to keep it.

You only need to submit evidence in support of a dispute where you consider it is directly relevant to the

dispute. For example, evidence of unpaid utility bills is not required where the dispute concerns the cleanliness of the property at the end of the tenancy. Similarly, where the dispute is in relation to damaged contents, photographic evidence is only needed if it shows the contents affected.

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An adjudicator will take into account any admissions of liability by the tenant; however evidence should as a still be- provided to show how the tenant has broken the tenancy agreement, and the loss suffered of amount the keep to or compromise, a reach to result. Evidence which shows that the landlord tried their claim to a minimum, is helpfultoo'

1.

The Tenancy Agreement

This is a necessity for all disputes. The adjudicator needs to establish the contractual obligations that apply to the landlord and tenant. lf this document is not provided it is likely that the landlord's claim will fail because the adjudicator will be unable to establish the obligations agreed between the parties.

2.

lnventory Reports & Check'in/Check'out lnspections The importance of a properly completed inventory cannot be underestimated' lt must be robust and deiensible if it is to be held up as a proper indicator of the facts and therefore viewed as acceptable by an adjudicator or court' Tenancy deposit protection schemes do not disregard, out of hand, inventories that are not prepared by independent companies or individuals. However, they are likely to place less weight on their contents. lt may also be necessary for a landlord to provide more corroborating evidence to show the condition of the property than would normally be required if the process was carried out by qualified and independent inventory clerks. For example, dated photographic evidence is usefui to show any change in the property's condition. This is also true of any check-in/check-out document and process.

Many landlords use their agents to conduct their check-in and check-out inspections. Again these will not be disregarded. However there is an added need to show that the process, and the person undertaking the inspection, was impartial. Adjudicators will take into consideration the general circumstances and relationship between the parties in determining what weight to put on the evidence.

Some agents provide "in-house" services to remedy the potential breach (for example cleaning or repairs). Again, care needs to be taken to show that this process is open and transparent and that the costs incurred are justified. lf these documents have not been independently completed a tenant may be sceptical about them;

it is beneficial therefore for the tenant to have been offered the opportunity to view, amend, and sign the documents. lf they are not signed by the tenant you should explain why. The tenant does not have to be present at the check-out inspection, and mostly they do not attend. However they are entitled to attend if they want to; if they ask to attend the landlord/agent should take reasonable steps to meet this request. lt may be helpful to provide evidence to show that the tenant was provided with details of the check out appointment and invited to attend, but that they did not do so.

Note that where a landlord puts the onus on the tenant to complete their own check in inspection, this type of check in is far less robust than a 'full' check in. Just providing an inventory to the tenant and expecting them to note any discrepancies, or relying on a document that has not been signed, will not be sufficient to convince an adjudicator; the landlord will need to provide other evidence to show that their expectations and the tenant's obligations were fully explained to the tenant.

Where a check-in is challenged by the tenant, a full audit trail of what remedial action has occurred should be provided and a revised check-in agreed and signed'

It is preferable if check-in and check-out inspections are produced in a similar format - where possible by the same person. To enable meaningful comparisons to be made, it is also important that the same measurements of the property's condition are used in both reports.

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Many check-out clerks hand write amendments on a copy of the check-in report. This often shows that the check-out was conducted in conjunction with the original. lt is however always sensible to provide a separate typed report in addition to the handwritten notes. Remember that handwriting varies and that the adjudicator may not be aware of abbreviations, annotations and acronyms' The onus is on you to ensure that the adjudicator can establish by whom and when the handwritten notes were added. lf standard descriptions and grades are used, these should be clearly explained. These should b e consistent and concise. Terms such as "fair" and "OK' should be avoided and any term used to denote condition qualified and defined.

Avoid relying on standard clauses such as if an item is not mentioned or its condition not commented on then it is assumed to be in good condition. Whilst it need not be possible to note and comment on every item in a property it will be very difficult for an adjudicator to determine between subjective statements by the parties.

It is sensible to carry out periodic inspections of the property during the tenancy. Please note

however that these may not be as detailed as check-in and check-out inspections at the start and end of the tenancy.

3. Photographic/Video evidence Photographic evidence can be used to support, or defend claim against a deposit. Only photos that are relevant should be submitted. ldeally, 'before and after' photos should be submitted with a clear narrative as to what the photo is showing e.g. colours, item description, marks on surfaces etc.

Do not assume that the adjudicator is seeing the same image as you - draw the adjudicator to the part of the photo you want him to focus on. Photos should, ideally, be dated and signed by both parties, or alternatively digitally dated (preferably visible on the photograph). Photographs need to be of a good quality to show clearly the condition of the property at any given time. Photographs are useful as supporting evidence in addition to a check-out inspection'

Video evidence can also be useful where photographic evidence is unclear or unavailable. Again, only submit the relevant part of the video, or direct the adjudicator to view a certain point in the video itself. Support the video with a written explanation to ensure that the adjudicator is drawn to the important points. There is nothing worse for an adjudicator to have to sit through hours of video to get the problem area or to miss the issue entirely.

4. Invoices/receipts/estimates/quotations These are necessary to illustrate any costs incurred in respect of repair/replacement work being carried out. This evidence should be itemised fully, to enable an accurate breakdown of the costs being charged for each type of work undertaken. Only receipts or invoices corresponding to claims being made against the deposit are necessary. lf these cannot be provided, an explanation should be provided indicating why this evidence is not available. Estimates and quotations will not be afforded the same weight as invoices or receipts as they do not demonstrate a cost actually incurred; however they are useful in providing an indication of the extent of charges necessary to rectify any damage or deterioration.

ln rare cases, a breach of the contract by the tenant may lead to loss that may be difficult or impossible to rectify by pure replacement or repair. ln such cases an adjudicator can assess a compensatory sum, if they are provided with the correct supporting evidence.

It is not usually supportable to claim for the landlord's time and inconvenience however a reasonable claim can be considered if proportionate and supported by comparable examples.

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i. Cleaning Charges Deductions made by landlords in relation to cleaning charges are regularly disputed by tenants' Many claim that the cleanliness of the property at the start of the tenancy was not clear, or that the tenancy agreement did not make clear wl'rat was expected of them. Where landlords wish to make property deductions for cleaning costs, they will need to be careful to record the cleanliness of the charges any ensure need to will also They in sufficient detail, at the start and end of the tenancy. the tenancy. of the start they claim are a fair reflection of the property's condition at The type and size of the property is an important factor when deciding whether cleaning costs are reasonable. For example, a 5 bedroom house would take longer to clean than a 1 bedroom flat' Similarly, the cleaning of a bathroom mirror would not require an equal amount of cleaning as a

bath or shower. For this reason 'standard Charges' are often considered unreasonable by an adjudicator, unless these are specifically explained to the tenant in writing at the start of the tenancy and agreed to by the tenant in writing.

A landlord can also support their claim by producing invoices or receipts for work carried out by a professional cleaning contractor, as costs are usually balanced against market rates and geographical location. Where landlords charge an hourly rate to clean the property themselves, this ian bu -ore problematic for adjudicators because it is harder to justify the rate against the time spent cleaning. Tenants also complain that regardless of their efforts to clean the property themselves deductions are made no matter what the state of the property at the end of the tenancy' It is important to remember that the tenant is only obliged to return the property in the same state of cleanliness as at the start of the tenancy, after allowing for fair wear and tear.

6. Rent Account statements Where the dispute concerns rent arrears, account statements and/or bank statements which show

arrears outstanding are importan! without this sort of evidence the adjudicator will struggle to confirm whether there were any arrears. These should clearly show the property and person to whom the account relates. Where arrears have arisen, it is also useful for the adjudicator to see evidence that the tenant has been told about them, and has been given the chance to comment on them.

7. Standard Agency Charges While it is accepted that agents can insert standard fees into their Terms of Business, tenants can challenge these. lf they are considered to be unreasonable, it may not be possible to claim them' Landlords and agents should be aware that the deposit should only be retained for breaches of the tenancy agreement causing a financial loss and not a failure to pay standard agency fees.

However, standard agency fees can be inserted into the agent's own terms and conditions which accompany the signing of the tenancy agreement, on the agent's website and, increasingly, in the tenancy agreement itself.

We accept that these standard fees are put in place to deter tenants from breaking the terms of their contract. But if the agent seeks to retain these fees without question, then it is arguable that they

should be kept distinct from the deposit and separate invoices raised to the tenant. Alternatively, the fees would have to be explicitly explained to, and agreed by, the tenant when he signs the contract. lf a tenant disputes the fees deducted from his deposit, an adjudicator will consider several factors.

For example, the Office of Fair Trading provides guidance on unfair terms in tenancy agreements (Unfair Contract Terms Act 1977). A clause which is inserted into a contract will not automatically

be deemed to be fair clause just by virtue of its presence. The adjudicator needs to consider the merits of each case in order to decide whether the clause is reasonable.

An adjudicator can also consider when and how the tenant was made aware of his potential liability.

For example, it could be considered unreasonable for a tenant to have to read a website to

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understand further costs which are applicable at the end of the tenancy without assessing whether the tenant has access to the internet or not. A further example could be where an agent expects a potential tenant to sign an agreement containing the charges without explanation, where their first language is not English.

Where a fee has not been paid, the adjudicator will also want to see evidence to confirm this, and to show the extent of any loss to an agent. For example, an adjudicator will often find against a standard fee for a check-in process if the tenant never moved into the property and the check-in appointment was not required.

ln summary, standard agency fees that are automatically deducted from the deposit should be reasonable and fully explained to the tenant' 8.

Utility bills/Council Tax Tenancy agreements often require the tenant to pay the charges they incur when they live in the property. For example, tenants are often required to register their details with the local authority or utility provider, and bills are therefore issued in the tenant's name. Where these bills are unpaid at the end of the tenancy, the adjudicator is likely to take the view that the liability for the outstanding accounts is between the tenant and the local authority/utility provider, rather than with the landlord.

Therefore, unless the landlord can show that the bills were not transferred into the tenant's name, or that the landlord has been required to pay any outstanding accounts, the adjudicator is unlikely to make an award to the landlord.

It is acknowledged that some utility companies do attempt to pursue landlords for "outstanding" bills and those clauses are written into many ASTs to "protect" the landlord. However there is no liability on the landlord especially if they can ensure that they have informed the utility provider that the tenant has vacated the property, they have provided the company with the final meter reading and a forwarding address for the tenant has been supplied.

9.

Witness statements/other evidence Sometimes the parties to a dispute feel that there are other witnesses to the case who may have useful information for the adjudicator to consider (such as neighbours, friends/associates who visited the property, or independent contractors). Witness statements, or letters in support, can be obtained from those individuals and provided for the adjudicator's consideration. The adjudicator will not contact such potential witnesses to obtain further evidence. The adjudicator will not cross-examine witnesses, or take evidence under oath. Similarly, submissions such as "l have other evidence which I can provide if it is needed" are not helpful to the adjudicator. The parties must themselves submit all evidence which they wish to be considered by the adjudicator.

8.7 Wear & Tear Many landlords believe that the property should be returned to them in the same condition as at the start of the tenancy. Deductions are often claimed from the deposit for minor damage that should be expected in any normal use of the property. Similarly, some landlords seize the opportunity to 'replace' items in the

property which are coming to the end of their natural life e.g. redecorating an entire room when minor scuff marks have been caused by the tenant.

The House of Lords defined fair wear and tear as "reasonable use of the premises by the tenant and the ordinary operation of natural forces". The word 'reasonable' can be interpreted differently, depending on the type of property and who occupies it. ln addition, it is an established legal principle that a landlord is not entitled to charge his tenants the full cost for having any part of his property, or any fixture or fitting, ".....put back to the condition it was at the start of the tenancy." Landlords should therefore keep in mind that the tenant's deposit is not to be used like an insurance policy where you might get "full replacement

value" or "new for old",

A Guide to Best Practice for lnventory Providers O ARLA Asset Skills NAEA RICS 2007 updated 2011

@

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good any The landlord also has a duty to act reasonably and not claim more than is necessary to make loss. For example: . Replacement of a damaged item may be justified where it is either severely and extensively damaged beyond economic repair or, its condition makes it unusable; . Repair or cleaning is a more likely award where replacement cannot be iustified; . ln cases where an item has had its value reduced or its lifespan shortened, for example by damage, an award of compensation may be appropriate; ln addition to seeking the most appropriate remedy, the landlord should not end up, either financially or materially, in a better position than he was at start of the tenancy, or than he would have otherwise been at the end of the tenancy after having allowed for fair wear and tear.

ln order to avoid allegations of betterment by the tenant, any award for damage must take into account fair wear and tear, the'most appropriate remedy, and that the landlord should not end up either financially or materially in a better position than he was at commencement of the tenancy or as he would expect to be at the end of the tenancy having considered (a) and exercised (b).

It is very difficult for tenancy deposit protection schemes to provide guidance on the levels of deductions landlords and agents expect to be able to claim from the deposit. The nature of adjudication is that each

case is considered on its own merits and no two cases are ever the same. However, adjudicators will consider the following factors when coming to a particular decision:

. Length of tenancy - the longer the tenancy, the more natural wear. Common sense, but think, for example, how much wear a carpet in your own home shows after one, two or three years. Also consider what the item's condition was when the tenancy started; was it brand new or has it already seen a few tenancies come and go?

. Number and age of occupiers - the more bedrooms and occupants, the higher the wear and tear that should be expected in all the common parts e.g. sitting room, passages, stairs, bathrooms and

kitchen. lf you are letting to a family with children, factor that in too. Scuffs and scrapes are unavoidable in normalfamily life. A property occupied by a single person should see far less wear than a family of four, so bear this in mind when it's time for tenants to check out.

. Wear and tear vs. actual damage - when is it no longer normal wear? Damage i.e. breaking

something is not wear and tear - meaning either replacement or repair. Light marks on a carpet might havL to be viewed as unavoidable. On the other hand, damage such as nail varnish spills on the floor or iron burns that have occurred due to negligence could see the tenant liable for repair.

Consider whether the item has been damaged or worn out through natural use versus negligence when making a judgement call.

. Ouality and Condition - consider the original quality of the item at the start of the tenancy and what

it originally cost to provide. lt would unreasonable for a landlord to provide a cheap and flimsy set of bedroom furniture and then blame the tenant if the items are damaged through normal usage.

Adjudicators may expect to see receipts or other evidence to confirm an item's age, or its cost and quality when new Another consideration is the quality or fabric of the property itself' Many new

builds tend not to be quite as robust as older properties or conversions. Walls, partitions and internal painted surfaces tend to be thinner and therefore likely to suffer more stress, particularly in higher fbotfall areas of the property. This inevitably means that there is a greater need for redecoration at the end of the tenancy period. An adjudicator may therefore consider more than a simple contribution to the cost of redecoration from the tenant to be unreasonable.

ln considering whether cleaning/repair is necessary versus complete replacement at the end of the tenancy, an ailrdicator will examine the check-in/out reports, any statements of condition and any photosivideos in order to compare the condition of the property at the start and end of the tenancy. ln some cases, the damage may not be so extensive as to require the complete replacement of an item at the tenant's expense (zuch as a kitchen worktop or carpet); however the adjudicator will award sums in recognition of any damage which has occurred. Whilst the landlord may wish to replace a damaged item,

A Guide to Best Practice for lnventory Providers @ ARLAAsset Skills NAEA RICS 2007 updated 2011

it is not always the case, even where the damage is admitted by the tenant, that the extent of the damage is such that the tenant should automatically bear the full replacement cost.

ln the rare circumstances where damage (to the worktop/carpeVmattress/item etc) is so extensive or severe as to affect the achievable rent level or market quality of the property, the most appropriate remedy might be replacement and to apportion costs according to the age and useful lifespan of the item.

An example of how this might be calculated is set out below: Cost of similar replacement carpeVitem Actual age of existing carpeVitem Average useful lifespan of that type of carpeVitem Residual lifespan of carpet/item calculated as (c less b) Depreciation of value rate calculated as (a divided by c) Reasonable apportionment cost to tenant calculated as (d times e

8.8 ln Summarv It is impossible for any guide to guarantee what the outcome to a tenancy deposit dispute might be. By their very nature, disputes are contentious and one party is likely to feel aggrieved at the end of the process. Adjudicators are looking for a fair and reasonable outcome.

Follow this simple step by step guide:

. When taking a deposit, landlords should protect it within 14 days from receipt from the tenant either lodge it with the custodial scheme or arrange protection through an insurance scheme.

. Landlords need to consider carefully any deductions they wish to make from the deposit and ask themselves 'is this fair?' or 'how would I feel if I was the tenant?'. Landlords should discuss their concerns with the tenant. Open communication prevents a large number of potential disputes. . When dealing with a tenancy deposit scheme, familiarise yourself with their processes and follow them. Schemes are allowed to make awards to tenants where landlords break their scheme rules.

. Try to view the evidence you are submitting from the point of view an independent third party who does not know the property. Will your evidence convince them of your case?

. lf you agree to adjudication then remember that you cannot appeal against the final decision unless you challenge it through the courts.

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A Guide to Best Practice for lnventory Providers O ARLA Asset Skills NAEA RICS 2007 updated 2O11

pecimen inventory Company name

Picture of property

123 Any Street

AnyTown Any County

lnventsry and Schedule of Condition 1 bedroom unfurnished 3'd floor flat

Date prepared' *'f Ref: Any Clerk/Any Agent :t'l'

Pages: 13

A Guide to Best Practice for lnventory Providers @ ARLA Asset Skills NAEA RICS 2007 updated 2011

NOTES

NOTE

Oigit"t Bttotographs of the interior of the poperty have been taken at the time of making the inventory for future use. These can be viewed lf requested

1.

D6cor

This property is decorated to a good standard except where not€d

2.

Gleaning: housa

This property is cleaned to a good standard except where noted

Carpets

The carpets are cleaned to a good standard except where noted

Curtains

The curtains are all clean except where note

Appliances

The appliances were all clean except where noted

Wndows

The windows are clean except where noted

3

Garden

Please note that the property must be left in like condition on departure.

Appliances must be cleaned thoroughly, including defrosting freezer, All rubbish and non-inventory items must be removed from the premises.

The garden, if applicable, should also be left in like condition'

4

Light Bulbs and

It is the Tenant's responsibility to supply replacement light bulbs and batteries, when necessary

SmokelCarbon Monoxide Alarms

L

Flre Salcty

Eouioment 6.

General

7.

Checkout

Note: The following fire safety items are present at this prope*y: l smoke alarm - hallwav All sockets and switches are white plastic and intact unless otherwise noted' Permission must be sought for installation of any further TV/satellite services or telephone lines' Tenants are advised that inventory checkout will take place within 48 hours oftheir departure and that it is in their best interest to be present. At this time, the property must be ready to be handed back and the keys returned. Please se€ attached letter.

Durinp winter months. heatinE should be left on low. on vacation.

On vacation of the prope*y, all items musl be returned to the same position that they were at the outset in order to facilitate an easy check and avoid delays in the checking procedure

o, L

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a 123 Any St, Any Town, Any County

Tenants' lnitials

A Guide to Best Practice for lnventory Providers @ ARLA Asset Skills NAEA RICS 2007 updated 2011

1.

Working order and condltlon

@furnishingsandallLandlord,sequipmentandcontentsinthe equipment or

2.

Structural

@iuteastructuralsurveyandanystrUctUralfaultsdonotappear.Fixtures

3.

Description

property. lt is no guarantee of, or reports on, the adequacy of, or safety of any such contents, merely a record that such items exist at the property as at the date of the Inventory and a superficial condition of the same.

Where an lnventory is compiled at an old property, it is understood that the condition of the fabric and contents are normallv age worn and age marked unless otherwise noted and fittinss are listed and described only and are not a report a! to the working cond Wh*" th. *"rdr tilrr"/, '.hroma, 'oat', 'pine' etc are used, it is understood that this is a description of

the colour and type of the item and not the actual fabric, unless documentary evidence is available.

The description of the listed items is for identification purposes only and we do not attempt to determine or pass an opinion on whether an article is genuine or reproduction.

New items will only be described as such when they are in a new building, still in their wrappings, or with a receipt.

Reference to wall numbers i,e, wall #1, will always be the wall that the door or entrance way is situated in and then round in a clockwork motion from there.

4.

Maintenance

@thecommencementofthetenancyorduringthetermofthe lnventory clerk'

5.

Furnishings

@seen,,thisistakenthatlabelsarepresentonitemsoffurniturethatas amended L993' lt

5.

Fire Safety

@noxidemonitors,areplesentandreplacementbatteriesareneeded

same, should be reported promptly and directly to the Agent,/owner' not the

indicates these items comply with the Furniture and Furnishings (Fire) (Safety) Regulatlons 1988 is however not the responsibility of the lnventory clerk to state thdt these ltcms do comply wlth these regulatlons.

Curtains are described with an approxlmation of length i.e. Slll/skirtin&/floor length. Responsibility is not tak€n for noticins minor shrinkage caused bv cleaning or washing.

7.

General

8.

Loft & Cellars

9.

Locked rooms

between maintenance visits 6r periodic tenancy checks, it is the Tenant's responsibility to replace and frequently check the working order of the same. Any faults should be reported immediately to the Apent/owner.

Thls ,r,ventory t as been prepared on the accepted principle that a ll items are free from any obvious soilins. fault or damase except where stated, The term 'good' is noted as a guideline for this. l-otts A Ceitars are not covered on this lnventory unless they are converted and safely accessible' Contents will therefore not be noted or checked at commencement or check out.

Belongings left by the owner ln a locked room or outbuildlngs, will not be lnventoried and are the sole

10.

Windows and doors

All latches and fittings will be checked but windows are not all opened to test if they are operational' lf they are not; this should be reported as a maintenance fault. Doors are checked where keys are provided.

11.

Heavy ltems

Heavy iterls of furniture such as kitchen appliances, wardrobes and beds, will not be moved and the Inventory clerk will not be responsible for the condition of any flooring underneath, or areas surrounding

12.

Ownership

Equlpment

resoonsibilitv of the Landlord

such items that cannot be seen.

Note. fnis t*entory remains the property of lnventories lnc and shall not be used or copied without their written permission

123 Any St, Any Town, Any County

Tenants' lnitials

A Guide to Best Practice for lnventory Providers O ARLA Asset Skills NAEA RICS 2007 updated 2011

whit€ Painted frame Wooden Threshold Pale Wood veneer flush door

1" scratch to low level. 1" scratch & tiny nick below handle

Chrome colour door furniture comprising Numerals 115 Spy hole Lever handle with integral lock Brushed metal lettetbox flap with black surround

2

Door

Reverse of door to match Chrome colour door furniture comprising: Reverse of spy hole Reverce of handle with swivel bolt fitting security chain & keep Brushed m€tal ietterbox flap with black surround White painted frame

3

Wall

Painted cream

4

Ceiling

Painted white

5

Woodwork

Painted white

6

Laid to pale beige fleck carpet

Some wear to tread areas

White Panel radiator

Light marks to top edge

8

Floor Heating Lighting

9

Additional

7

Slightly rubbed to ongled edge RHs on entry Sliaht scuffs obove liaht switch on entry

2 ceiling mounted chrome colour light fittinBs, each with circular glass plate, 3 arms, 3 holders, 3 bulbs & 3 clearffrosted glass shad Chrome colour electrical fittings comprising: 3 single light switches 1 double electric socket

10

Wall mounted entryphone

11

LZ

Wall mounted Danfoss thermostat/oroErammer Wall mounted wood-effect hook track with 5

13

chrome colour swivel hooks Skirting mounted chrome colour doorstop

Dusty

with

L4

black rubber end Ceiling mounted smoke alarm

Not tested

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o o o (n 123 Any St, Any Town, Any County

Tenants' lnitials

A Guide to Best Practice for Inventory Providers O ARLA Asset Skills NAEA RICS 2007 updated 2011

15

White painted frame Metal divider strip Pale wood veneer flush door

Door

Couple oJ slight chips to veneer at bose

Chrome colour lever handle & swivel bolt

fitting Reverse of door, handle, swivel bolt & frame

Scull to bose of door

to match Chrome colour double hook mounted to

door

15

Walls

Part-painted cream Part white ceramic tiles with mid level green Blass border tile

L7

Ceiline

Painted white

l8 19

Floor Heating

Wall mounted chrome colour ladder-style

20

Lighting

Laid to white ceramic floor tiles

Couple of sllght sculfs obove bathroom mbinet

5" sffatch to 1* tile on entry

radiator Ceiling mounted grey circular light fitting

with 21"

Suite

22 27

24

Additional

holder, bulb & frosted shade White china pedestal wash hand basin Chrome colour waste & PoP-uP Plug Chrome colour lntegrated mixer tap White china low level WC & clBtem Chrcme colour double push flush White seat & lid White bath Pair of chrome colour handles Chrome colour waste & chain Blaek rubber plug Chrom6 colour inteorated mixer tap Ghrome colour shower hose, head & retainer White plastie bath side panel

Couole of lieht scuffs to the base

Chrome coiour shavers only socket

25

Ceiling-inset air vent

26

Walt mounted chrome colour z-tier tidy unit

2t

Wall mounted chrome colour WC role holder

28

Wall mounted chro ne colour towel ring

29

Wall mounted chrorne colour bracket with opaque glass WC brush holder & chrome colour handled WC brush Wall mounted white finish bathroom cabinet Minored door with chrorre colour knob 2 open shelves either side wilh minored back 2 whfte finish shelves to inter

30

Hard water mark around waste

Dusty

loose

with inset

123 Any St, Any Town, Any GountY

Ring marks to shelves

Tenants' lnitials

A Guide to Best Practice for Inventory Providers O ARLA Asset Skills NAEA RICS 2007 updated 20'11

44

White plastic single telephone socket

45

White plasiic mulli-aerial socket wlth integral bh6ne socket 1 short length of aerial cable

45 47

Skirting mounted chrome colour doorslop with black rubber end

48

WALTS

Painted Cream

49

Ceiling

Painted white

Small black spot marks to centre of room

50

Woodwork

Painted white

Dust top edge of skirting boards

51 52

Floor

Laid to brown marble-effect tiles

Glazing

White UPVC double glazed unlt I trickle veflt 2 white integraled lever locklng handles White bainted sill Cream, herb/script patterned roller blind with associated white plastic beaded pull

53

Blind

Couple of light scuffs low level LH wall Discoloured mafu above skirting to LHS of wlndow. 3 smatl brcwn drtp mdi(s RHS af window at lotrt/ level. Black smudge mark to LtlS of window. Graase sp/ash ma*s behind hab area. Splash marks behind sink area

Few light scu{fs

cord

54

Lighting

5 ceiling-inset $potlights, each with white

surround & halogen bulb

55 56

Units

2 under unit strip lights, each with tube and indeDend€nt switch Range of wall & floor units in pele wood-erect laminate with maEhing comice, pelmet &

kickboard Brushed melal bar handles

Wall unik: 1 single unit

Marks to top shelf

2 shelYes 1 single comer unit 2 shelves 1 single unit 2 shelves 2 brushed metal framed, obscure glass lift up doors to single unils above sink 1 single unit

2 shelYes 1 single unit

2 shelves Door concealing integrated fridge

123 Any St, Any Town, AnY CountY

Tenants' lnitials-

A Guide to Best Practice for lnventory Providers O ARLA Asset Skills NAEA RICS 2007 updated 2011

44

White plastic single telephone socket

45

White plasiic mulli-aerial socket wlth integral bh6ne socket 1 short length of aerial cable

45 47

Skirting mounted chrome colour doorslop with black rubber end

48

WALTS

Painted Cream

49

Ceiling

Painted white

Small black spot marks to centre of room

50

Woodwork

Painted white

Dust top edge of skirting boards

51 52

Floor

Laid to brown marble-effect tiles

Glazing

White UPVC double glazed unlt I trickle veflt 2 white integraled lever locklng handles White bainted sill Cream, herb/script patterned roller blind with associated white plastic beaded pull

53

Blind

Couple of light scuffs low level LH wall Discoloured mafu above skirting to LHS of wlndow. 3 smatl brcwn drtp mdi(s RHS af window at lotrt/ level. Black smudge mark to LtlS of window. Graase sp/ash ma*s behind hab area. Splash marks behind sink area

Few light scu{fs

cord

54

Lighting

5 ceiling-inset $potlights, each with white

surround & halogen bulb

55 56

Units

2 under unit strip lights, each with tube and indeDend€nt switch Range of wall & floor units in pele wood-erect laminate with maEhing comice, pelmet &

kickboard Brushed melal bar handles

Wall unik: 1 single unit

Marks to top shelf

2 shelYes 1 single comer unit 2 shelves 1 single unit 2 shelves 2 brushed metal framed, obscure glass lift up doors to single unils above sink 1 single unit

2 shelYes 1 single unit

2 shelves Door concealing integrated fridge

123 Any St, Any Town, AnY CountY

Tenants' lnitials-

A Guide to Best Practice for lnventory Providers O ARLA Asset Skills NAEA RICS 2007 updated 2011

57

units Cont'd

Floor unlB: Bank of 4 drawers Housing for oven with dummy panel under 1 single unil 1 shelf I single under sink unit

Sorne waler marks, back ol cupboad coming

away

I shelf

Plumbing for appliance Door concealing integrated dish washer Door concealing integrated washe/dryer 1 single unit 1 shelf Door concealino inteorated freezer 1% bo|l single drainer slainless steel sink 2 chrome colour wastes 2 black plastic plugs Chrome colour inteorated mixor tap

58

Sink

59

Surface

Brown/black granite-effecl laminate

60

Appliances

Whirlpool brushed metal integrated extractor

61

62

63

hood 2 removable grilles 2 built-in liqhts, each with bulb & plastic shade Whirlpool brushed meial integrated gas nob 4 burners, 4 chrome colour oollars 4 black bumercaps, 2 black pan rests 4 control dials Large brushed meta! splash back to rear of hob

Handle detached & tap not wofi<ing at time of inventoty Feint cut ma*s to lafi of hob, circutar bum md* ioht af hob Sfrbky to louch, rcquires cleaning

Some old bum marks Io ool/ars

Whirlpool brushed metal integrated electric single oven LCD limer, 1 push control button 2 conhol dials Brushed metal bar handle to glass fronted pull down door2 chrome colour shelves Grill Dan. rack & handle Whirlpool integrated tridge treezer lnside fddge: Light & cohtrol 5 glass shelves with plastic trim 2 clear plastic crisper boxes 4 clear plastic door retainers 2 metal restraining bars Blue plastic bottle separator Blue plastic egg tray lnside freezer: 3 clear plastic freezer drawers 1 wfiite Dlastic ice cube tray

o)

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ao 123 Any St, Any Town, Any County

Tenants' lnitials

A Guide to Best Practice for lnventory Providers O ARLA Asset Skills NAEA RICS 2007 updated 201 1

Whirlpod integrated dish washer

64 55 56

2 grey plastic coated pull-out basket drawers

Grev nlrqlic cr dlEru baskel with handle Whirlpool AWZ51 4D integrated washer/dryer

ADDITIONAL

57 58 69

Chrome colour eleclrical fittingB comprising: 2 double elect.ic sockets Cook€r switch with socket Panel of 5 fused switches Ceiling-inset extractor

Dusty

Quantily ot spare ltgnt DulD$ Quantity ol spare chrome oolour electrical face Dlates David Wilson Homes folder

70

White plasiic David Wilson Homes Iolder containino Drooertv information & manuals

7l

72

Door

73

Walls

White paintsd frame Metal divider strip Pale wood veneer flush door Chrome colour lever handle Reverse of door, handle & frame to match Ghrome colour double hook mounted to door Painted Cream

74

Ceiling

Painted white

75 76

Woodwork

Fainted White

Large chip to RH corner on entry

FIoor

Laid to pele b€lge fleck carpet

Slight wear to tread areas. Furniture indentation

77

Glazing

78

Curtalns

White UPVC double glazed unit 'l tdckle vent 4 rvftite integrated lever locking handles White oainted sill Brushed metal cu{ain pole with matching iinials & rings Pair below sill length, cream satin-effect, leaf nailemed. lined curteins White panel radldor with themostauc vave

80

Heating Lighting

81

Additional

79

FEw small grey malr(s & exposed screw hedd between sackets on walll+3

marks

Spot marks to lining of left hand curtain

C€iling mountsd chmme colour light fitting with circularglass plate, 3 arms, 3 holders, 3 bulbs & 3 claadfrosted dlass shade3 Double dimmer switch

123 Any St, Any Town, Any Gounty

Tenants' lnitials

A Guide to Best Practice for lnventory Providers O ARLA Asset Skills NAEA RICS 2OO7 updated 2011

single light switch double electric sockots single aerial socket single telephone socket

High level wall mounted Honeywell carbon

1 grey metal framed sliding mirrored door 1 grey meial framed grey glass sliding door

Light scuffs to the interior

lnterior deoorated as room Wood-effect laminate shelf

Boiler/meter cupboard

Metal divider stdp Pale wood veneer flush door Chrome colour lever handle Reverse of door, handle & ft'ame lo match lnterior decorated as room

Cream painled boxed-in section Top forms shelf White plastic access panel with yellow plaque above reading: 'Gas Shut Off Ceiling mounted light rose, holder & bulb Wall mounted ldeal isar HE30 boiler Brass colour 'Gold Water Shut Off tap Chrome colour single fused switch Well mounted fuse box & main switch

a7

Door

Dusfy. Sorrre drF marks & scraiches

White painted frame Metal divider srip Pale wood veneer flush door Chrome colour lever handle & swivel bolt litting Reverse of daor, handle, swivel bolt & frame to match

88

Walls

Chrdm€ colour double hook mounted to door Parl-paanted cream Part white ceramic tiles wilh mid level green olass mosaic border til6

89 90

1 small scratch & 1 tirry blua spot to RH wall

on entry

Ceiling

Painted white

Floor

Laid to white ceramic floor tiles

2tillad raw plug hotres,h sl,owercubicle

Floor-inset chrome colour & black rubber

91

doorstoo

92

Heating

Wall mounted chrome colour ladder-style

radiator

o)

o a o

123 Any St, Any Town, Any CountY

Tenants' lnitials_

A Guide to Best Practice for lnventory Providers @ ARLA Asset Skills NAEA RICS 2007 updated 2011

a

93

Lighting

94

Suite

95

96

97 98

Additlonal

Ceiling mounted grey circutar light fitting with holder, bulb & frosied shade White china pedestal wash hand basin Chrome colourwasie & pop-up plug Chrome colour inteorated mixer tap White china low level WC & cistem Chrome colour double push flush While seat & lid White shower tray Chrome colourwaste Wall mounted chrorne colour sho\ rer conbol Plastic coated chrome colour shower hose Chrome colour shower head, retainer, riser bar Wall mounted chrorne colour z-tier tidy unit Brushed melal framed bi-fold sliding clea. olass door with matchino static Danel Chrome colour shavers onlY socket Ceiling-inset air vent

Hard water marks to door

Dusty

Wall mounted chrome colour WC roll holder with insert Wall mounted chrome colour towel ring

99 1(x)

Wall mounted chrome colour bracket with opaque glass WC brush holder & chrome colour handled We brush Wall mounted white finish bathroom cabinet Minored door with chrome colour knob 2 open shelves either side with minored back 2 white finish shelves to interior

t0r 102

white painted Irsme

103

Door

r04

Walls

Met6l divider strip Pale wood veneerflush door Chrome colour lever handle Reverse of door, handle & lrame to match Chrome colour double hook mounted to door Painted cream

105 106

Ceilins

Painted White

Woodwork

Painted white

to7

Floor

Laid to pale beige fleck carpet

108

Glazing

White UPVC doubl€ glazed unit 1 trickle vent 4 white iitegrated l€ver locking handles

Setdement elack above entrance door. Caupl' of lbht ma*s to RH comer on entrance. Few light scuffs low level walt#l Sd/ras of brack sc.rffs low level wall#2

Slight wear to tread areas. Furniture indentation

marks

1 key

Circular ma* rightsida

White oainted sill

Tenants' lnitials-

A Guide to Best Practice for lnventory Providers O ARLA Asset Skills NAEA RICS 2007 updated 2011

109

Curtains

110

Heatlng

111

Lighting

t12

Additional

4 chrome colour double electric sockets

113 114 115

Brushed metal curlain pole with matchlng finials & rings Pair below sill length, cream satin-effect, leaf oattemed. lined curtains White panel radiator with thermostatic value Geiling mounted chrome colour light fitting with circular glass Sate, 3 arms, 3 holders, 3 bulbs & 3 dP-er/fmstod oless shades Single simmer switch Skiding mounted c,hrome colour doorstop rrri*t

Wardrobe

bleck rubbor end White finish frame 1 grey metal framed sliding mirrored door 1 grey metal framed grey glass sliding door lnterlor decoraled as room Wood-effeci laminata shelf 2 brushed metal hanoinq rails

Couple of light scuffs

Whirlpool washer/dryer Whirlpool fildge freezer Whirlpool hob Whiilpool exlractor hood whirlpool oven Danfoss programmer ldeal boiler Entry phone

o)

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@

123 Any St, Any Town, Any County

Tenants' lnitials_

A Guide to Best Practice for lnventory Providers O ARLA Asset Skills NAEA RICS 2007 updated 2011

It is -dd"',sed that the i.nants take the responsibility of notifying all the relevant authorities of the meter readings at the commencement and end ol their tenancy, along wlt

l/We the undersigned, affirm that ll llwe do not comment on th€ lnventory in writing within seven days of receipt of this lnventory thon l/we accept the lnventory as boing an accurats record of thE conionts and condition of the property.

Signed

Name:

Dat€

Slgned

Name

Date

123 Any St, Any Town, Any County

Tenants' lnitials-

A Guide to Best Practice for lnventory Providers O ARLA Asset Skills NAEA RICS 2007 updated 2011

lnterim Visit Report Property Date

lnternal Condition This is not a check against the inventory. The notes will comment on any obvious defects and general standards of housekeeping. The following items will be ehecked assuming access is not restricted' Cupboards, drawers etc. will not be opened without the express consent of the tenant Flooring/carpets.

Major kitchen items including work surfaces.

Windows and frames.

D6cor to walls and ceilings.

Bathroom appliances and fittings.

Furniture.

Curtains or roller blinds.

Faults noted may not necessarily be the responsibility or liability of the tenant as they may be considered fair wear and tear or come under the landlord's repairing and/or safety regulation obligations providing there is no evidence of neglect or misuse by the tenant.

Where necessary faults or damages may be photographed.

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A Guide to Best Practice for lnventory Providers O ARLA Asset Skills NAEA RICS 2007 updated 2011

lnterim Visit Report Property Date

External Condition (For landlord information and possible action) It must be noted that all comments are made on the basis of items that are clearly visible from the ground and must not be considered to be a surveyor's report in any way. Please be aware that the maintaining of the fabric and structure of the building is the responsibility of the landlord.

Drives and pathways

Walls - cracks to rendering - poor pointing to brickwork.

Signs of damp Window frames Woodwork generally Gutters, drains and down pipes

Roof and tiles

Front garden

Back garden

0utbuildings or sheds

0ther

0verall comment

A Guide to Best Practice for lnventory Providers @ ARLA Asset Skills NAEA RICS 2007 updated 2011

Tenant Comments

GENERAL ls there any evidence of unauthorised pets? ls there any evidence of unauthorised occupiers? ls there any evidence of unauthorised smoking?

Are there any breakages or damages that you are aware of?

General comments.

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Conclusion:

A Guide to Best Practice for lnventory Providers @ ARLAAsset Skills NAEA RICS 2007 updated 2011

Checkout Report Property address:

72 Mountstevens Street, Brighton

Date:

xx/xx/xx

Tenant present:

No

lnventory used:

As prepared by ourselves dated 31st August 2005

Signed by tenant: Five front door keys received from tenants and returned to XYZ Letting Company

Keys:

Missing

Comments The property has been left in a grubby condition and is in need of cleaning

General

condition Hall and stairs

Bedroom 1

Carpet replaced with beige coloured carpet.

Dirty marks by front door. Wear to treads.

Wall paintwork grubby and scuff marked

Bulb from ceiling rose

Severalfilled nail holes in wall opposite window.

Hook broken behind door. Shelf in wardrobe scratched, Canvas cover of bookcase grubby

Broadband box

Bedroom 2

2 picture hooks and several nail holes on all walls. Fitted wardrobe interior paint grubby and chipped. Chipped and grubby skirting

Low wood square occasional table, black computer desk

Bathroom

Heavily peeling paint to walls and mould marks.

Tiles grubby. Door grubby by handle.

Toilet seat loose and grubby

Toilet brush and holder; chrome coloured pedal bin

Sitting room

Four overpainted patches to ceiling.

Paintwork to window and door frames grubby.

Dining table scratched and grease marked.

Futon mattress torn and buttons missing

Blue plastic waste bin

Kitchen

Floor greasy. Freezer not defrosted and dirty.

Woodwork paint grubby throughout.

All cabinetry grubby inside and out

Flower beds overgrown. Rubbish left around garden 3 various trays, white ceramic serving dish, raffia table mats, cutting board, 1 wooden dish, white rectangular serving dish, 2 egg cups, yellow/ green deep dish, 7 glasses, brown casserole dish, white/blue pepper pot, stainless steel tray,

stainless steel tea pot,stainless steel water jug,stainless steel milk jug, wood handled cheese knife, 3 tin openers, red handled kitchen knife Flower beds overgrown, Rubbish left around garden

Rear garden

Two white plastic chairs

Meter readings

Electricity

Reading: 38734 Serial No: S7910497

Gas Reading: 5885 Serial No: E0671755

Forwarding Address:

A Guide to Best Practice for lnventory Providers O ARLA Asset Skills NAEA RICS 2007 updated 2011

Glossarv of terms These are precise terms relating to aspects of a property that provide an accurate description of a feature without the need for long explanations, followed by a layman's explanation' This list is not intended to be exhaustive.

Architrave

The moulded border around an opening covering the junction between wall plaster and frame or lining

Baluster

One of the posts supporting a stair handrail

Balustrade

A handrail with its supporting posts or pillars

Banister

(s) as Baluster (pl) as Balustrade

Bay window

A projection in a wall to form a window

Bow window

A window projecting in a curve without increasing the floor area

Carpet bar

A metal bar in doorway floors hiding carpet joins

Casement window

A window opening on side or top hinges

Ceiling rose

An ornate plasterwork (or imitation) surrounding a light fitting

Corbel

Bracket jutting from a wall space as support for some object, often decorative

Cornice

A moulded strip junction of the wall and ceiling in a room

Coir matting

Fibrous coconut matting (or imitation) usually used to make up doormats, often fixed for the first 3 or 4 feet inside an exterior door or for loose mats

Coving

Moulded section between wall and ceiling

Cylinder lock

A latch type lock with a barrel inserted through the door

Dado rail

An artificial rail around a room approximately half way up a wall acting as a dividing line for decoration.The section below originally often panelled is known as the dado

Deadlock

A lock on one side of a door which only works with a key and not self-latching

Dormer window

A vertical window that projects from a sloping roof

Double glazed

Two sheets of glass sealed with a vacuum in between

Fanlight

A window over a door, often semi-circular

Finger plate

A plate fixed to a door to prevent finger marks

Finger pull

Fixings on sash windows to enable their opening

Fireplace

Opening in a room for a fire with a flue above

Fire safety strip

A strip embedded in modern doors to increase fire resistance

Fixed pane

A window that does not open

Flush door

A door with flat panels

Framed door

A door with a pronounced frame with recessed panels in between

Free standing

A moveable item not attached to the building structure

French casement

Casement windows extended to the floor

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French door

As French casement

A Guide to Best Practice for lnventory Providers O ARLA Asset Skills NAEA RICS 2007 updated 2011

Frieze

An ornamental band of paint or paper at the top of a wall below the ceiling or cornice

Furniture

When applied to a door or window is a general term referring to allfixings (handles, locks etc.)

Glazing bars

Bars dividing window sashes into smaller panes

Hasp and chain

Metalflap, often hinged, used to secure doors

Jamb

The side of a door or window oPening

Juliet balcony

A metal framework in front of opening balcony doors but with no balcony extension

Laminate

Layering of material pressed and glued together such as kitchen worktops

Laminate flooring

Thin panels of wood veneer laid over the base structure, often designed to look like wood block (see below)

Leaded lights

A windowpane subdivided into small sections by lead strip.

Often replicated in double glazed doors or windows by stick on dividing strips

Lever lock

A lock inset into the leading edge of a door operated only by a key from either side and not self-latching

Lintel

Horizontal beam spanning a door or window opening

Louvre

A swivelling section of glass in a window or fixed in doors to cupboards requiring ventilation

Mezzanine

An extra floor in between two floors often as just an extra portion of floor

Mullion

A vertical division in the window frame

Muntin

Vertical division of doors and other framing

Newel

The post supporting stair handrail at top and bottom

Picture rail

A rail around a room near to the ceiling originally used for hanging pictures

Pilaster

A half column fixed against a wall often framing a passageway

Pelmet

A strip of material or wood etc. concealing curtain track

PVCU

Modern plastic style of double glazed window or door

Register grate

Victorian cast iron fireplace

Register plate

The opening flap at the rear of a register grate

Riser

The vertical part of the stair step

Sash

The moving part of the window containing the glass

Sash cord

The cords supporting a vertically sliding sash window

Secondary double

An additional section of glazing mounted inside the Glazing structural windows at a later date to provide draught proofing or heat loss

Self closer

A device fixed on doors as a fire safety measure to close them automatically

Skirting board

The wooden board around a wall at floor level

Transom

An intermediate horizontal member of a frame used when a fanlight occurs over a door or a casement window

A Guide to Best Practice for lnventory Providers O ARLA Asset Skills NAEA RICS 2007 updated 2011

Tread

The horizontal part of the stair step

UPVC

See PVCU

Vinyl

Plastic/rubberised material frequently laid in kitchens and bathrooms

Wood block flooring

Wooden blocks laid above the base structure, often laid to a pattern such as herringbone. Often described as parquet

Plumbing, heating and electrics Blank plate

An electric plate with no switches

Gylinder jacket

A padded sleeve tied round a hot water cylinder

Consumer unit

Mains control box containing fuses and main switch

Batten holder

A light fitting and bulbholder combined (no flex)

Factory Iagged

A polystyrene style covering of a hot water cylinder

Fuse box

See Consumer unit

Fused switch

A switch with a built in removable switch

lmmersion tank

Hot water tank with a connected immersion heater

Isolator switch

Control switch often found outside bathrooms isolating shower of extractor electrics

Rose

Light fitting attached to ceiling or wall supporting flex

Self-lagged

See Factory lagged

Stop tap

Water or gas taps on mains supply pipes

Thermostatic valves

Temperature controls on radiator connections

Uplighter

Wall mounted shades casting light upwards

Kitchens, bathrooms/cloakrooms etc.

Bath Panel

The panel on the side or end of the bath

Close coupled toilet

A WC and cistern connected together

Grout

The infill in between ceramic tiles

Halogen

A ceramic radiated heat hob with no separate rings

Hob

Gas or electric rings inset in a worktop

Mastic

Flexible filler in gaps between walls and worktops or sanitary fittings

Mixer taps

A tap where hot and cold water come out of the same nozzle

Plunger plug

A plug in situ that is operated by a lever or handle

Riser plug

see Plunger plug

Riser rod

Pole on which movable shower head is mounted

Roll edged worktop

Kitchen worktop with a rounded (as opposed to square) edge

A Guide to Best Practice for lnventory Providers @ ARLA Asset Skills NAEA RICS 2007 updated 2011

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Saniflow toilet

A toilet with an attached unit to break up waste as it is flushed away.

Used where there is no great water pressure

Sealing strip

Plasticised stick on strip sealing a gap between tiles and worktop

or sanitarY fittings Semi-glazed

An oven door with inset glass Panel

Splashback

A specific area designed to wipe off splashes which could be tiled in a bathroom or tiled or stainless steel in a kitchen

Upstand

A section of worktop that has a vertical return against the wall

Furniture and furnishings Fire-safety label

Label on soft furnishings to show that it complies with fire safety regulations

Roman blind

A blind that folds in sections as it is pulled up

Swag

Decorative fabric usually at sides of curtains or over pelmets

Veneer

A thin covering,usually over bare wood for kitchen cupboard doors or items of furniture such as table tops

Venetian blind

A series of slats which open or close and can all be rolled up

Descriptives All of the following can either be quantified precisely by number or by a general term of quantity or by adding a precise location.

Chip

A small abrasion to the surface

Dent

A depression in the surface

Fixing holes

Large holes left by wall fixings, often with plugs inserted

Furniture stand marks Depressions made by the weight or movement of furniture in floors or floor coverings Gouge

A deep scratch or mark in a surface that would require some form of repair

Limescale

White deposits left by standing water

Mark

A small discolouration to the surface

Nail holes

Holes caused by large nails or picture hooks

Pin hole

Hole caused by pins or small picture hooks

Scrape

A medium rubbing of a surface

Scratch

A long and narrow abrasion to the surface

Scuff

A light rubbing of a surface

Spot

A very small mark or discolouration

Stain

A larger discolouration to a surface

Water marked

Dried water drops or rivulets

A Guide to Best Practice for lnventory Providers O ARLA Asset Skills NAEA RICS 2007 updated 2011

All of the following can have a quantifiable adjective attached such as slightly, lightly, fairly, very, well or highly appended to them

Dirty

ln need of cleaning above that required for grubby and requiring much cleaning involving cleaning materials

Dusty

A covering of dust removable with a vacuum or duster

Filthy

Extremely dirty and requiring major cleaning to a professional standard and in a state that may not be restorable to an acceptable standard

Greasy

Greasy to the touch

Grubby

ln need of cleaning above that required for dusty and requiring cleaning materials

Soiled

Badly stained and marked

Stained

Discoloured sections

Worn

Showing signs of undamaged usage

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A Guide to Best Practice for lnventory Providers O ARLA Asset Skills NAEA RICS 2007 updated 2011

Notes

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a A Guide to Best Practice for lnventory Providers @ ARLA Asset Skills NAEA RICS 2007 updated 2011

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a A Guide to Best Practice for lnventory Providers O ARLA Asset Skills NAEA RICS 2007 updated 2011