Why Have an Inventory & Condition Report?

Tenancy Deposit Protection (TDP) was introduced in the Housing Act 2004, amended by statutory instruments in March 2007 and came into effect on 6th April 2007. It applies to all Assured Shorthold Tenancies in England and Wales.

The main aims of Tenancy Deposit Protection are:

1. To ensure good practice in deposit handling so that when a tenant is entitled to have a deposit returned he or she can be assured that this will happen.
2. To help resolve disputes by having an Alternative Dispute Resolution service. It was hoped that it would encourage tenants and landlords to agree – at the start of the tenancy – the condition and contents of the property.

The fact that an inventory and condition report has been prepared by an independent third party and agreed by the landlord (or their agent) and the tenant will make it less likely that any dispute concerning deposits will arise. It will help to make sure there are no misunderstandings, make it more likely that differences can be resolved amicably and if necessary provide sound evidence for the Alternative Dispute Resolution (ADR) service.

Without evidence landlords will have little hope of succeeding in a dispute even when significant damage or loss has occurred.

The cost of the report may well be covered by saving the landlord the costs incurred for cleaning, replacement or repair at the end of a tenancy and also time spent on lengthy disputes.

A detailed, professional, independent report is essential to enable a responsible agent to manage a property acting in the landlord’s best interest.