Running a Business from Home | Home Business Magazine

One of the most time-consuming jobs that a managing agent ever has to do is carry out inventories. If you only look after half a dozen properties that is not so hard, but if you look after 100 or 200 you will spend a lot of time looking around properties and checking on their condition.

Some managing agents employ outside inventory clerks in order to get the job done and also in order to avoid any conflict of interest if there is a dilapidations dispute. However, even though a third party may carry out an inventory, it is still possible for a third party report to be questioned on the basis that the agent instructed and paid a preferred third party to carry out the inventory!

Since the introduction of the Tenant Deposit Scheme a few years ago, there has been quite a rise in disputes, and this has largely been caused by the fact that tenants have realised that the adjudication process is free and it is worth their while to argue and delay the process on the basis that the result may be in their favour.

Whether you carry out the inventories yourself or have a third party do it, the TDS adjudicators are not concerned with who created the report, only with the evidence that is presented to them in the case of a disputed compensation claim. Furthermore, third party inventory clerks’ terms and conditions are full of disclaimers, and in particular a disclaimer regarding responsibility for accuracy which at the end of the day is the responsibility of the landlord anyway. If they were to admit any liability for an error, it would probably largely depend on how much business they get from the agent who appointed them, and this would call into question just how independent their reports are.

What a lot of agents are doing today is improving the accuracy of their inventories by using a free inventory app which can be downloaded on to a mobile or tablet. These apps can be used in audio mode or text mode so that when you get to the site you work through each room either typing your comments or speaking them into the app. The app will guide you through the process, making suggestions such as checking the ceiling, the door, the windows, and so on. As you go, it is a simple matter to add photos to the app so that they can be included in the report.

When you have finished working on the site, the app will provide you with a checklist to make certain that you have covered everything. All this helps to ensure that your inventory is as accurate as it can be.

When you get back to the office, you simply upload from the app to your portal account on the app provider’s server, and if you used text mode your report will be available a few minutes later. In audio mode you would then have to type it up yourself, although some providers will type your report up for you for a small fee.

Another advantage of using a free inventory app is the fact that landlords are more ready to accept fair wear and tear when they can see it for themselves when you send them reports from mid-term inspections.

Of course, one big advantage of using an app is that it takes you less time to complete an inventory. This is especially useful if you are an inventory clerk working for several agents because you can complete more inventories in a day.

Some managing agents are now including pre-checkout visits to tenants about a month or so before they are due to leave. This enables them to show the tenant the check-in report and to point out any dilapidations. This is proving very useful, since those who are doing this are finding far fewer issues when they undertake the final check-out inspection, so it is beneficial for both the tenants and the landlord since there are obviously far fewer disputes. Combining this with using one of the free apps to improve the quality of inventories and adding more photos as you go would seem to be the way forward.