If you are new to the property rental industry, then you won’t have any idea about the term inventory. But you don’t need to worry about it. In this article, we have not only explained the term inventory but have also discussed the role of the inventory management company in managing the renting of properties. So, let’s start with the definition of inventory, in the context of the property industry. Inventory includes the items that are required to keep the property in the properly maintained position. It can include nuts, bolts, fittings, and fixtures, along with the curtains and carpets. You can also consider furniture as the part of the inventory, but for that, the house, flat or office that is being rented must be furnished.
With the list of inventory, you can get a clear picture of the things that are present in the place being let. You can also use the report with digital photography to provide the tenants with the proof of the items that are present in your premises. One of the important things here is that you need to rely upon the third party for conducting the process of inventory count whether it is quantitative or qualitative, do that this inventory list or report can have a legal standing when it comes to the court of law. The court recognizes the third party to be unbiased; however, the selected third party must be a specialist in work and must show an equal treatment for both the parties, not favoring any one of them.
It is not necessary that you and your tenants will definitely end up in court, but the probability of such a possibility cannot be out ruled especially with the alarming statics that we are going to discuss here. Around 50% of the tenancy cases end up in court, which is quite high, isn’t it? Another important statics here is that in 18% of these cases, property owners were awarded 100% deposit amount. For the rest of the 82% cases, either there were some deductions in the total deposit amount or the property owners were simply denied the deposit amount because of no evidence. We are sure that in case you face any problem, you’ll be able to fall in the 18% of the cases rather than not getting anything for the loss your borne or maybe getting a non-equitable amount. In this situation, the independent inventory businesses have an important role.
Tips For Renting PropertyBelow are some of the advantages that you should expect from a professional inventory management company.
1. Generation Of ReportsLegally, there is no requirement for the professional inventory management company to carry out a physical inspection if the property being rented. However, the report regarding the condition of the property at the time of initiation of tenancy is a vital element when it comes to legal support. The inventory and schedule of condition and cleanliness of property have to be professional, unbiased and accurate. Because the two documents, one created at the start of the tenancy and the other created at the end, provides the comparison of the condition of the property before and after the occupancy, thus helping the landlord in claiming deposits if something is not accurate.
2. Reports Must Be ObjectiveAs the owner of the property, you’ll probably have an emotional attachment associated with it. In such a condition, the creation of a fair report stating everything as it really is before and after the tenancy agreement becomes a bit difficult. However, it is not necessary that you as a property owner will produce biased report only, it can be unbiased too. However, to avoid such an impression using the professional inventory company can yield more benefits along with the impression of objectivity associated with the generated report.
3. Role Of AgentsThe property agents sometimes help in this situation of creating reports and managing the element of condition and cleanliness of property reports. But in that case, both the tenants and the landlords are the owner of the agent, so the generation of an objective report again becomes difficult. Additionally, sending your own business staff for managing the inventory is also not a cost-effective solution for securing your interest. You can probably use these resources in generating more income from your business rather than using them for such unproductive tasks.
4. Professionalism Of Inventory Management CompaniesHiring the professional inventory management companies allows you to limit the chances of risk involved in inventory management. They are professional people with a complete understanding of how to analyze the situation and how to report things. It actually helps in the creation of an objective report, which does not favor a particular party rather states the facts as they are. This is why the risk involved for the tenant, landlord and the other stakeholders can be lowered. So, hiring a professional inventory management company can provide you with an overall solution for your problem associated with inventory and the hassle involved in it.
Do You Rent Out Your Property? You’ll probably have collected the deposit to secure you from the unpaid monthly rents or damage caused to property. Then you’ll have to conduct an inventory analysis to be on the safe side. With a professional inventory management company, you can generate the inventory reports at the time of initiation of tenancy contracts and it’s ending. Additionally, you should also inspect interim inspections of your property, so you won’t have to risk any of the property damage.