Investing in UK property to rent is a lucrative business – providing you’ve got good knowledge of what it takes to be a landlord. Although most UK property investors enjoy a great ROI from renting their houses, there are a few common pitfalls that can put a dent in your profit.
Most mistakes are made when landlords fail to prepare effectively for tenants. This is particularly the case with creating inventories – after all, how can you prove your tenant has damaged or stolen something, if you had no evidence of it having existed in the first place?
Creating a rock-solid inventory is a vital part of the rental process. If you’re not sure how to make an inventory that covers you for all eventualities, here’s a brief guide.
Property Seminar Tip – Why You Need an Inventory
Most tenants will treat your buy-to-let property with the respect it deserves. However, on rare occasions, tenants may damage items in your house or apartment, or even steal them. Under the Tenancy Deposit Scheme, if you want to make a claim to cover lost or damaged goods, you’ll need to prove that a) the items were there in the first place, and b) they’re in a considerably worse state than they were before.
This is where a good inventory comes in. This detailed document outlines all the items that come with the tenancy, including furniture, appliances, fixtures and fittings. It should be completed before the tenant moves in, and should be signed by both the landlord and the tenant, to ensure that it’s legally standing.
How to Create an Inventory
Whilst you can certainly be a part of the process, it’s unwise to rely on an inventory you’ve created yourself, as it’s unlikely to be regarded as an official legal document.
However, you can certainly prepare the inventory document yourself, by listing all items within the property. Some landlords even take photos of furniture, appliances and fittings before the tenant moves in, which provides additional legal back-up if anything should get damaged.
If you prepare the inventory on your own, it’s a wise idea to get it signed off by a professional third party, to ensure it holds up in court if required.
Checking After Tenancy
Once your tenant has handed in their notice, it’s necessary to perform another check – this time to see whether any of your furniture, fittings, fixtures or appliances have been damaged during the course of their tenancy.
If they have, and you’re able to prove it (using the inventory), you’re legally within your rights to withhold part / all of their deposit to cover the cost of mending or replacing the item in question.
The Buy2Let Shop Limited
If you’re looking for a buy-to-let property for sale, but you’re not sure where to start searching, talk to The Buy2Let Shop. Our team of specialist property investment agents are on hand to help you find the ideal UK property investment, at a price that suits.
We also host regular property investment seminars, designed to boost your knowledge of the current market and provide insight into what it’s like to be a successful landlord. For more information, visit The Buy2Let Shop website today.