Why an Inventory Is Not an Expense – It’s Your Protection as a Landlord
Inventory’s
It’s a minor investment that acts as major protection for your asset.
In my experience, I have come across many landlords who say they do not want to complete a check-in report or inventory at the start of a tenancy.
Usually, this comes down to cost.
For example, on a one-bedroom property, you might be looking at approximately £130 to conduct a full professional inventory. On the face of it, that can feel like an unnecessary expense.
But let me reframe that.
An inventory should never be viewed as a cost. It should be viewed as a form of insurance - protection that ensures your property is returned in the same or similar condition as it was when let. Anything that differs from that report is then identified during the checkout process, giving you the evidence required to make a legitimate claim against the tenant’s deposit if necessary.
Let me walk you through a real example from my own portfolio, if you would rather watch, I created a short video for one of my properties, go to my Whats App Business Channel to view.
The Property – Brand New Condition at Letting
Three years ago, I fully refurbished one of my properties from top to bottom.
We installed:
Insulated walls
A new heating system
A brand new kitchen
A new bathroom
A dehumidifier system to prevent any future damp issues
Everything was freshly decorated and presented in excellent condition.
You can see this clearly in the video which shows a full walk-through of the property immediately after refurbishment. It demonstrates the calibre of property I rent out and why I am selective about the tenants I move forward with. When you provide a high-standard home, you naturally want it treated with care and respect.
Of course, I fully accept that during a tenancy there will be fair wear and tear. That is normal and expected.
Fast Forward Three Years
After three years, the tenant served notice as she wanted to move into a larger property. During the tenancy, I had conducted regular inspections and, overall, I was happy with how the property had been maintained.
This is important:
This is not a story about a “bad tenant.” In general, the property had been looked after.
However, when a tenancy ends, what matters is evidence and process and this is where professional management makes all the difference.
The Pre-Checkout Strategy
Before the tenant vacated, I attended the property to carry out a thorough inspection. This allowed us to have an open and amicable discussion about what would need addressing before she moved out. Difficult conversations but necessary.
One major issue was the carpets.
They had been brand new at the start of the tenancy. Over the three years, pets had caused significant damage - tearing, staining and general deterioration beyond fair wear and tear.
We agreed that the carpets would need replacing before the tenancy ended.
I followed this up with a formal, date, time-stamped email outlining:
Our discussion
The agreement regarding carpet replacement
The requirement for a professional deep clean due to pets - and that I would require receipts as proof.
Filling of holes and redecoration where necessary
More importantly I supplied a copy of the check in report so there was no confusion as to how the property needed to be returned.
This documentation is critical. Conversations alone are not enough - everything must be recorded.
The Checkout – What the Video Shows (and Doesn’t Show)
By the checkout date:
The carpets had been replaced
The property had been professionally cleaned (receipt provided)
That alone saved me from having to recover a large sum from the deposit.
BUT…..When I first walked into the property, I’ll admit I felt disappointed. It did not reflect the condition it was in at the start of the tenancy.
But after reviewing it carefully and objectively, I broke it down logically. What actually needed doing?
Cleaning mould that had formed behind a large sofa
One coat of paint throughout
Minor cosmetic repairs
That was it.
And I know with certainty that once completed, the property will return to a near-new condition.
You can see this in the second part of the video, which shows the checkout condition. It’s cosmetic, it’s not structural, not catastrophic more importantly it’s manageable because of the groundwork that was done at the beginning of the tenancy and in the lead up to check out.
Why the Inventory Matters
Both the check-in and checkout reports will cost approximately £130 each — £260 in total.
Some landlords hesitate at that figure.
But here is the reality:
I now have:
Clear evidence of the condition at move-in
Clear evidence of the condition at move-out
Photographic documentation prepared by an impartial party
A documented paper trail of agreements
If this were to go to adjudication through the deposit scheme, the decision will be based purely on evidence.
And the evidence will show that the property was not returned in the same condition as it was let (allowing for fair wear and tear).
Once I obtain quotes for redecoration and minor repairs, I am confident the deposit will cover those costs. In fact, it is likely the tenant will still receive a portion of her deposit back.
That is how it should work.
Without an inventory, I would have no leverage. No evidence. No protection. I would then be bearing the cost of the repairs and redecoration.
Why Property Management Is More Than “Collecting Rent”
There is a common misconception that property management simply involves collecting rent and passing it on.
It doesn’t.
Effective property management means:
Ensuring professional inventories are completed
Conducting regular inspections
Providing photographic evidence
Advising tenants during the tenancy if issues arise
Documenting conversations properly
Managing the checkout process strategically
Protecting your financial position
Difficult conversations about damage and responsibility are far easier when you handle them regularly and professionally.
As a landlord myself, this is the strategy I use within my own portfolio. It protects my assets, minimises my financial exposure, and ultimately maximises my returns.
Bringing this property back to a rentable condition is unlikely to cost me anything. While we would all hope a property is returned in the exact condition it was let, in reality, even with excellent tenants, this is rarely the case.
Final Thought
An inventory is not an expense.
It is protection.
It is leverage.
It is evidence.
It is peace of mind.
And as this real example shows, spending £130 at the start of a tenancy can save you money at the end.
If you would like advice on how to better protect your investment property, or to discuss professional management, feel free to get in touch.