How to make a property inventory

Creating a comprehensive property inventory is one of the most important tasks for landlords and HMO owners. Whether you're managing a single rental property or an entire portfolio, a detailed inventory protects both you and your tenants by documenting the condition of your property at the start and end of each tenancy.

In this article, we'll walk you through everything you need to know about property inventory management, from understanding what to include to choosing the right tools and systems to streamline the process.

What is a property inventory?

A property inventory is a detailed record that documents the condition, contents, and features of a rental property at a specific point in time. It typically includes descriptions, photographs, and notes about every room, fixture, fitting, and furnishing in the property.

The property condition report serves as evidence of the property's state at the beginning of a tenancy, making it essential for deposit protection and resolving disputes about damage or wear and tear at the end of the tenancy.

Why property inventory matters for landlords

The importance of property inventory cannot be overstated. According to the UK Government's tenancy deposit protection guidelines, having thorough documentation is crucial when making deductions from tenant deposits.

A professional property inventory report provides:

• Legal protection - Clear evidence in case of disputes or tribunal hearings

• Financial security - Documentation to justify deposit deductions for damage beyond normal wear and tear

• Professional standards - Demonstrates your commitment to proper property management

• Tenant transparency - Helps tenants understand their responsibilities and the property's condition

Without a detailed inventory, landlords often struggle to prove pre-existing damage or justify deposit deductions, potentially losing thousands of pounds in damages they should rightfully claim.

Essential components of a property inventory checklist

Before we explore the process, let's understand what a comprehensive property inventory checklist should include:

Room by room documentation

Start with a systematic approach, documenting each room thoroughly:

• Living areas - Walls, ceilings, flooring, windows, doors, light fixtures, sockets, radiators, curtains, blinds, and any furniture provided

• Kitchen - All appliances (model numbers and condition), cupboards, worktops, sinks, tiling, extractor fans

• Bathrooms -Sanitaryware, tiling, grouting condition, shower screens, mirrors, extractor fans, storage units

• Bedrooms - Wardrobe condition, flooring, window treatments, any furnished items

• Outdoor spaces - Garden condition, fencing, gates, outdoor furniture, sheds, parking areas

Utilities and systems

Your property inventory template should include checks on:

• Heating systems and thermostats

• Electrical installations and circuit breakers

• Plumbing and water pressure

• Smoke alarms and carbon monoxide detectors

• Security systems and entry methods

• Broadband and telecommunications setup

Meter readings

Record all utility meter readings at check-in and check-out to ensure accurate billing. This is a crucial part of the tenant check-in process.

Keys and access

Document all keys provided, including:

• Main door keys (quantity)

• Window keys

• Outbuilding keys

• Mailbox keys

• Alarm codes and fobs

How to create a property inventory: step-by-step guide

Step 1: Prepare before the inspection

Schedule your inventory inspection before the tenant moves in, ideally shortly after the previous tenant vacates and after any necessary cleaning or repairs. Give yourself adequate time—a thorough inventory for a two-bedroom flat typically takes 2-3 hours.

Gather your equipment:

• Camera or smartphone with good quality camera

• Measuring tape

• Notepad or digital device for notes

• Torch for inspecting darker areas

• Your property inventory checklist

Step 2: Work systematically through each room

Begin at the entrance and work through the property room by room. The National Approved Lettings Scheme (NALS) recommends a consistent approach to property inspections to ensure nothing is missed.

For each room:

1. Take overall photographs from multiple angles

2. Describe the general condition using specific terminology (excellent, good, fair, poor)

3. Document every fixture and fitting, noting any marks, scratches, stains, or damage

4. Photograph all defects with close-up shots, using a reference point (like a coin) to show scale

5. Note cleanliness levels including carpets, windows, and surfaces

6. Record any odours that may indicate issues

Step 3: Detail specific items and conditions

Be precise in your descriptions. Instead of noting "some marks on wall," specify "two pencil marks approximately 3cm long on wall adjacent to light switch, 80cm from floor." This level of detail prevents disputes later.

Pay special attention to:

• Appliance conditions - Test everything and note model numbers

• Decorative condition - Note paint chips, wallpaper bubbles, scuff marks

• Flooring - Document stains, worn patches, loose tiles, carpet conditions

• Window treatments - Check operation and note any damage to blinds or curtains

Step 4: Document the exterior

Don't neglect outdoor areas in your property condition inventory. Document:

• Garden conditions and maintenance levels

• Boundaries and fencing condition

• Paths and driveways

• External lighting

• Rubbish bins and storage areas

• Building exterior including guttering and downpipes

Step 5: Complete the paperwork

Once your physical inspection is complete:

1. Organise all photographs with clear labelling

2. Compile your notes into your property inventory report format

3. Include the date, time, and weather conditions during the inspection

4. Sign and date the document

5. Arrange for the tenant to review and sign the inventory at check-in

Property software & apps vs. traditional methods

While traditional property inventory reports using paper forms and separate photos remain common, modern property inventory software offers significant advantages for efficiency and organisation.

Benefits of using landlord apps

Best property inventory apps provide:

• Templates that ensure consistency across all your properties

• Photos that keeps images organised with their relevant room descriptions

• Cloud storage for secure, accessible records

• Reports in professional formats

• Easy sharing with tenants, agents, and deposit protection schemes

• Version tracking to monitor changes between inspections

Choosing the right landlord app or software

When evaluating property inventory services or software, consider:

• Ease of use and learning curve

• Report output quality and customisation

• Storage capacity and security

• Mobile accessibility for in property inspections

• Other features in the property management app

• Cost effectiveness for your portfolio size

According to research by Propertymark, landlords using digital inventory systems report 40% fewer deposit disputes than those using paper based methods.

Property inventory examples and best practices

Let's look at some property inventory examples to understand what good documentation looks like:

Example 1: Kitchen documentation

Poor inventory entry - "Kitchen in good condition. All appliances working."

Good inventory entry - "Kitchen: Walls painted white throughout, good condition with minor scuff mark 5cm x 2cm on wall behind door. Ceiling white, excellent condition. Floor: laminate effect vinyl in light oak colour, good condition with no visible damage. Oven: Miele model H2465B, stainless steel, good working order with minor grease marks on glass door. Extractor fan working, slight grease build-up on filter. All cupboard doors opening/closing correctly, minor scratch on lower left door 3cm long. Worktop: Black granite effect, excellent condition throughout."

Example 2: Describing damage levels

Use standardised terminology for consistency:

• Excellent - As new condition, no marks or damage

• Good - Normal minor wear, clean and functional

• Fair - Noticeable wear but acceptable condition, may need attention in next 12 months

• Poor - Significant wear or damage, requires attention or replacement

This terminology, recommended by the Association of Independent Inventory Clerks, provides clear standards that deposit protection schemes recognise.

Property inventory tips for different property types

Property inventory for landlords managing HMOs

House in Multiple Occupation properties require additional attention:

• Document common areas in detail, noting shared responsibilities

• Create individual inventory sections for each tenant's private room

• Clearly mark which items are communal versus private

• Schedule regular interim inspections every 3-4 months

• Consider using a landlord inventory checklist specific to HMO requirements

Online property inventory for remote landlords

If you're managing properties remotely or have a geographically dispersed portfolio:

• Use cloud-based property inventory tools for accessibility from anywhere

• Consider hiring professional inventory clerks for initial reports

• Implement video walkthroughs as supplementary documentation

• Ensure tenants can access and review inventories digitally

• Use property management apps with built-in inventory features

Property inventory for renters, transparency matters

Being transparent with your tenants about the inventory process builds trust and reduces disputes. The Tenant Fees Act 2019 emphasises transparency in all tenancy matters.

Best practices:

• Provide tenants with the inventory report at least 24 hours before check-in

• Allow tenants to note disagreements or additional damage

• Give tenants a reasonable period (typically 7 days) to provide feedback

• Make yourself available to discuss any concerns

• Provide a final agreed version that both parties sign

Conducting check-out inspections and the property condition inventory

The property condition inventory at check-out is equally important as the initial inventory. This is where your thorough initial documentation proves its worth.

Check-out inspection process

When a tenancy ends:

1. Schedule the inspection ideally after the tenant has removed all belongings but before they return keys

2. Bring your original inventory for direct comparison

3. Photograph everything using the same angles as the initial inventory

4. Note all changes, whether improvements, damage, or deterioration

5. Distinguish between fair wear and tear and damage requiring compensation

6. Document meter readings for utility handover

According to MyDeposits, having comparative photographs from check-in and check-out reduces dispute resolution time by up to 60%.

Fair wear and tear considerations

The concept of fair wear and tear is crucial in deposit disputes. It refers to deterioration that occurs naturally over time through ordinary use. We have created an article to provide useful guidance on distinguishing between acceptable wear, tear and damage.

Examples of fair wear and tear:

• Faded curtains or carpets from sunlight exposure (after several years)

• Minor scuffs on walls from normal furniture placement

• Loose door handles from regular use

• Slight carpet wear in high-traffic areas

Examples of damage beyond fair wear and tear:

• Red wine stains on carpets

• Holes in walls from picture hanging

• Broken tiles or fixtures

• Cracked windows or damaged doors

• Burns on worktops or carpets

Using property inventory management for portfolio growth

As your portfolio grows, efficient property inventory management becomes increasingly important. Implementing consistent systems saves time and reduces risk across all your properties.

Standardisation across your portfolio

Create standardised property inventory report templates for different property types in your portfolio:

• Studio apartment inventory template

• Two-bedroom flat checklist

• Three-bedroom house format

• HMO specific template

This standardization ensures nothing is missed and makes training any staff or contractors much easier. Your property portfolio management becomes more efficient when processes are consistent.

Training and delegation

If you're growing your portfolio, you may need to delegate inventory work:

• Train assistants or property managers on your inventory standards

• Consider professional inventory services for initial reports

• Use quality control checks to ensure consistency

• Implement regular reviews of your inventory process

• Utilise property inventory software that maintains standards across users

Common property inventory mistakes to avoid

Even experienced landlords make inventory mistakes that can be costly:

Insufficient detail

Vague descriptions like "carpet stained" without specifying location, size, and type of stain make it difficult to determine if damage is new at check-out. Always be specific.

Missing photographs

A property inventory without adequate photographs is significantly weakened. Every room should have multiple photos, and every defect should have a close-up image.

Delayed inventory completion

Conducting the inventory weeks after a tenant moves in allows time for damage to occur that you cannot prove wasn't pre-existing. Complete inventories before or during check-in only.

Failing to update inventories

If you make improvements or changes to the property during a tenancy, update the inventory accordingly. Your records should always reflect the current state of the property.

Not getting tenant agreement

An inventory that the tenant hasn't seen or agreed to has limited value in disputes. Always ensure tenants review and sign the inventory, noting any disagreements they have.

Legal considerations for property inventories

While property inventories aren't legally required in England and Wales, they're essential for protecting your deposit deductions. Understanding the legal framework helps you create inventories that stand up to scrutiny.

Deposit protection requirements

All deposits for assured shorthold tenancies must be protected in a government-approved scheme within 30 days. When making deductions, you must provide evidence justifying the deduction. Your property inventory serves as this evidence.

The three approved schemes:

• Tenancy Deposit Scheme (TDS)

• MyDeposits

• Deposit Protection Service (DPS)

All three schemes require evidence when adjudicating disputes, and detailed inventories significantly improve your chances of success in these proceedings.

Data protection

Your property inventory will contain personal information and images of tenants' homes. Under UK GDPR regulations, you must:

• Store inventory data securely

• Only retain it for as long as necessary

• Explain to tenants how their data will be used and stored

• Ensure any property inventory services you use comply with data protection laws

The future of property inventory: emerging technologies

The property inventory sector is evolving with new technologies that make the process faster and more accurate:

360-degree photography

Some landlords are adopting 360-degree cameras that capture entire rooms in single shots, providing comprehensive visual records that tenants can virtually walk through.

AI-assisted inventories

Emerging property inventory software uses artificial intelligence to:

• Automatically identify and categorise items in photos

• Suggest standardised condition descriptions

• Flag potential issues for human review

• Compare check-in and check-out photos to highlight changes

Mobile-first solutions

Modern inventory systems prioritise mobile functionality, allowing landlords to complete entire inventories on tablets or smartphones while on-site, with automatic photo organization and cloud syncing.

Making property inventory work for you

Creating comprehensive property inventories might seem time-consuming initially, but it's an investment that pays dividends throughout every tenancy. A thorough property inventory report protects your property, safeguards your income, and provides the documentation needed to resolve disputes fairly and quickly.

Whether you manage one property or a hundred, implementing a systematic approach to property inventory management, supported by the right property inventory tools and software, will save you time, money, and stress in the long run.

Start with a reliable property inventory template, develop consistent habits, and consider using specialised property inventory apps to streamline your process. Your future self will thank you when you have the documentation needed to justify legitimate deposit deductions or demonstrate your property's condition to prospective tenants.

For landlords looking to professionalise their property management while saving time, August's property management platform includes integrated inventory management tools designed specifically for modern landlords. With digital templates, cloud storage, and seamless integration with other landlord tasks, you can manage inventories alongside rent collection, maintenance tracking, and compliance management, all in one place.

Remember, a property inventory is a professional standard that protects your investment and maintains positive relationships with your tenants built on transparency and clear expectations.

Disclaimer: This article is a guide, and not intended to be relied upon as legal or professional advice, or as a substitute for it. August does not accept any liability for any errors, omissions or misstatements contained in this article. Always speak to a suitably qualified professional if you require specific advice or information.