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(Article updated July 2025)
Inventory reports for landlords provide an assessment of the property’s condition. It’s a crucial document that contains a detailed description of the property’s contents and structural integrity, covering every room and item within and around the premises.
This document should be impartial and accurate, as it may be required as evidence in the event of a dispute with the tenant after the tenancy ends.
In this article, you’ll learn more about inventory reports and why London landlords need these. You’ll understand the components of an inventory report and when you need to schedule it.
What Are Inventory Reports for Landlords?
There are two main types of inventory reports for landlords.
The first is the check-in report, which is completed before the tenant moves in. The second is the check-out report, which is completed upon the end of the tenancy agreement. The second report is compared with the first report to see which parts of the property and items have changed. It will also distinguish between what is considered wear and tear and what constitutes damage.
Inventory reports serve to protect both landlords and tenants. It’s used as evidence for deductions from the tenancy deposit and to settle disputes, if any arise.
These inventory reports come with a schedule of condition. While the inventory lists items, the schedule of condition reports the condition of each item at a specific point in time during the tenancy (e.g., at the start of the tenancy or upon the tenants’ move-out).
An inventory report is a landlord’s responsibility. They can choose to do it themselves, but the deposit protection scheme might not deem it as reliable and valid as when an independent inventory clerk does it. These independent third-party inventory clerks are better equipped to provide unbiased reports..
Once completed, the landlord signs the inventory and sends a copy to the tenant before the tenant moves in. The tenant will then inspect the property themselves. If they agree with the report, the tenant will also sign the inventory. Both the landlord and tenant should keep the signed copies until the next scheduled inventory.
What’s In an Inventory Report?
Inventory reports for landlords should include the following:
- Detailed descriptions of each room. This includes the paint or wallpaper on the walls, the condition of the ceiling, the type of flooring, doors, windows, furniture, and fixtures, among others. It should also accurately describe the room’s condition.
- Photo evidence. While descriptions go a long way, there’s nothing like photographic evidence to seal it. Use high-quality photos (time-stamped) to document the rental property condition visually.
- External condition report. Apart from the inner rooms, include a general description of the property’s exterior. This could include the garden or yard, outdoor furniture, rooftops, and other outdoor spaces.
- Appliances and equipment functionality. This may be part of the list in each room, but you should also include the working conditions of every appliance and piece of equipment in the property. This includes lighting, bathroom fixtures, electrical appliances, and other similar items.
- Alarms and meter readings. Include a report of alarm tests (smoke and CO alarms) as well as electric and gas meter readings. These should include photos taken immediately before the tenant moved in.
- Access details. If the property uses keys, the inventory report should include a list of the keys provided. This isn’t just for the main door, but also the bedroom doors and other areas in the property that require physical keys.
The more detailed the inventory report is, the better it will be for both the landlord and the tenant.
Here’s an example of an inventory report.
Why Do London Landlords Need an Inventory Report?
There are three reasons why landlords need an inventory report. The first is to protect the tenant’s deposit. The second is to serve as evidence for disputes. The third is for any landlord insurance claims.
Let’s take a look at these in detail.
To protect the tenancy deposit
At the end of the tenancy agreement, landlords have the right to deduct the cost of repairs and maintenance from the tenant’s deposit. Under the law, the tenant has the right to dispute these deductions.
This is where the inventory report comes in. The check-in and check-out reports can be used to compare the property and its items. It will help justify the deductions.
To serve as evidence during disputes
If a tenant chooses to dispute the list of damages and deductions, they can use their copy of the inventory report as evidence. The dispute resolution service provided by the TDP scheme will review this evidence to determine if the deductions are valid. If the landlord used an independent inventory service, it would carry more weight compared to landlord-prepared reports.
To support insurance claims
Landlord insurance claims can also benefit from inventory reports. It will support claims for damage and help justify the request. If it aligns with the insurance policy and coverage, the landlord can receive financial support to repair the damage.
The inventory reports for landlords also serve as a benchmark for when insurance assessments are done.
When Is A Property Inventory Report Needed?
An inventory report is not just done before a tenant moves in. It’s also necessary after the tenancy period ends.
This inventory report will prove helpful when the tenancy ends. It will show the landlord what damage is beyond the wear and tear or if items are missing from the property.
Landlords should get an independent inventory clerk to do a check-in or check-out report. If landlords do it themselves, it may be open to interpretation, so its validity may be compromised.
To ensure you understand the process, here are the steps to efficiently generate check-in and check-out reports for your rental property.
Check-in inventory
This should be done right before the tenant moves in. When conducting the check-in inventory, start at the front door and proceed through each room one at a time. Note the condition of the handle, locks, and other components. Then check the hallway from the door and go through the nearest room. Check the doors, windows, ceilings, floor, walls, fixtures, fittings and furniture (if any). Take photos and close-ups of details when necessary.
Once you’re finished with the inside, go around the exterior of the property. Document the garden, outbuildings and check the gas and electricity meters. Make sure the photos are time-stamped.
Check-out inventory
This inventory report should be completed after the tenant has vacated the premises. However, schedule it so that the tenant is present when the inventory is completed.
Try to use the same format you did when conducting the check-in inventory. Go through the front door, then the hallway and the rooms in the same sequence you previously did. Get the final reading of the electricity and gas meters. Everything in the check-in inventory report should be listed and photographed in the check-out inventory. Don’t forget the timestamp. Then both the landlord and the tenant should sign the inventory to make it valid.
You can also conduct a pre-check-out inventory, allowing the tenant the opportunity to clean or make repairs to the property, particularly for any damages they may have caused. This will help protect their deposit from deductions.
Periodic inspections
Inventories can also be done mid-term. These periodic inspections can help identify deterioration or damage to the property. Schedule this inspection when the tenant is available so they can verify the accuracy of the inventory report. File this report along with the check-in inventory report.
These inspections can also serve as a monitoring report of the property’s condition. It can also help landlords gauge how tenants are caring for and maintaining the property. It’ll be one way to check if they are holding up to their responsibilities towards the property.
Not only that, these reports can identify what needs immediate repair and maintenance. Through proactive maintenance, landlords can avoid costly repairs in the future.
How Much Do Inventory Reports Cost?
While landlords can conduct inventory reports, hiring an independent inventory clerk will make the process more accurate and reliable. The cost of professional inventory reports varies depending on the specific requirements and conditions (e.g. property size, furnishing and complexity).
- Studio: £85 to £125
- 1 Bedroom: £95 to £140
- 2 Bedroom: £100 to £150
- 3 Bedroom: £110 to £160
- 4 Bedroom: £125 to £190
- 5 Bedroom: £140 to £200
As per the Tenant Fees Act, this cost should be covered by the landlord.
When looking for an independent inventory clerk, scrutinise what is included in the charges. Ask if it already includes VAT. Typically, the charges vary depending on whether the property is furnished or unfurnished, so ensure this is clear when you receive a quote.
Keep Your Property Secure with Inventory Reports
Inventory reports for landlords play a crucial role in protecting the property and the rights of the tenants. It helps with dispute resolution, protects tenancy deposits, supports insurance claims, and facilitates compliance.
Select a third-party inventory service to enhance the credibility of the report. It ensures a neutral and accurate report that tenants, adjudicators, and maybe even courts can accept.
If you’re working with a property management company like City Relay, you can request an inventory service. We can refer you to our partners, Home Inventories and MOT Inventories. Discover the cost and receive a complimentary rental income estimate to learn more about our service offerings.