Taking stock of the state of a property and the items contained within it is one of the essential chores associated with letting out the property.
Both the landlord and tenant stand to gain with this activity because it prevents disputes when the tenancy comes to a close.
The inventory of property becomes an integral part of the tenancy agreement.
Inventories are necessary, irrespective of the property's nature.
They can become the basis for insurance claims.
An inventory entails recording all the fixtures and fittings in the rented or insured premises.
It includes both temporary and permanent fixtures and fittings.
Usually, people are under the impression that the word property implies all the contents in it, but this is not true.
In common parlance, property means the structure made from cement, mortar, bricks, steel, and wood, apart from appurtenant land and trees.
Fixtures and fittings in the property may belong either to the landlord, or the tenant.
Therefore, it is necessary to differentiate between the tenant's assets and landlord's assets.
Effectively, it is the document which distinguishes between the landlord's and tenant's property.
Commissioning professionals is the best way to go about it.
Either the tenant or the landlord and more often these days - both, will commission the services of a professional clerk who will act on behalf of their client to record every detail and item which could come under scrutiny at the end of the tenancy.
While preparing any property inventory, it is necessary to record the condition of each item, and note the model number, if any.
The tenant is liable to surrender the listed items, in the same condition as they were when he or she took the possession, subject to normal wear and tear.
It should also mention the number of each item present in the premises at the beginning of the rental period.
Therefore, when the tenant is vacating the premises, the landlord cannot insist on five fans when he provided only four in the beginning.
Effectively, property inventory is a tool that prevents tenants and landlords from forgetting the content in the premises that is let out and allows them to part amicably at the end of tenancy.
Such fixtures are fittings may include several electrical and electronic objects.
Classifying them separately helps to assess their depreciated values faster.
Recording relevant information such as date of purchase, cost, model number, serial number, and period of warranty applicable on each object is also a good habit.
It is now possible to keep property inventories in digital formats.
Images of contents in the room can be taken with the help of a camera or any other video recording equipment.
Relevant files can be stored on computer systems.
They can be furnished to insurance companies at the time of insuring the property.
Many people try to avoid this because they feel that the insurance premium will increase based on the contents in their home.
But it is advisable to maintain at least a property inventory in contemporary file formats such as spreadsheets and digital images.
A spreadsheet format is one way of keeping track of the inventory value.
The final document will contain everything relevant to the commencement of a property let.
It will usually be in an electronic format and will include several images.
As a tenant, it is advisable for you to pay close attention to the contents of the document and the assets listed therein.
It is quite common to find the same clerk attending the property at the end of the let period.
They will conduct the same procedure and will compare the before and after state of the property and contents.
Their report will include the cleanliness of the property.
Hiring professional cleaners is a good idea but only if they are thorough, otherwise you may find yourself paying for the landlord's team of cleaners as well as your own.
The property inventory safeguards the interests of both the tenant and landlord.
It's importance cannot be over emphasised.