Providing Furniture, Fixtures, Appliances and Inventories

Providing Furniture, Appliances and Fixtures

Property is let in many ways, furnished, unfurnished or semi-furnished (an old-fashioned term which means carpets and curtains).

There's no rule of law which says what furniture, fixtures, or appliances must or must not be provided. Contrary to popular belief, no legislation requires a cooker or a fridge.

Most rented properties would include floor coverings, curtain poles, window coverings, cooker and fridge.

What to provide depends on the market you're aiming for or local customs.

For example, student lettings would generally only let if they are fully furnished. However, a small family house will often be let unfurnished with just carpets, curtains and kitchen appliances (cooker, fridge and washing machine).

Which is worth more rent — furnished or unfurnished? There are arguments both ways to this question. On the one hand, you might think that if it were fully furnished, that extra expense by the landlord should be worth more in rent. However, that's not always the case because if the prospective tenant has their furniture (which is common), they would have to pay to store their own, and as such, the rental value to them is lower.

There is, therefore, no particular answer to the question. The ideal is to be as flexible as you can, and if the tenant would prefer unfurnished, be able to offer that.

As a general rule, unfurnished is easier from a management perspective:

• There's less to get damaged or wear down.
• It's easier if work is needed, such as decorating in-between lets, because the furniture doesn't require moving.
• An inventory is quicker and easier to produce because there's less to go through.

But, as mentioned earlier, if your particular market would let easier with furniture, that's the way to go.

Making an Inventory / Schedule of Condition

Having an inventory (sometimes also called a statement of condition) is essential if the property is furnished and an excellent idea even if it is unfurnished. An accurate and current inventory will help protect the position of both parties and provide evidence to prove the condition of the property when you let it.

For occupation contracts, there is a legally required term that must be inserted and requires the landlord to provide an inventory. However, the term is supplementary, which means it can be modified with the agreement of the contract-holder (even if the modification does not benefit the contract-holder). Therefore, the term can be changed by agreement so that providing an inventory is optional and not mandatory.

If the term is included without modification, it consists of a procedure for the contract-holder to comment on the inventory within 14 days and the landlord to deal with those comments.

Care should be taken when preparing an inventory and making a detailed list of all the belongings and furniture provided when a tenant first moves in. It is also essential to record the condition of such things as walls, doors, windows, carpets etc.

If the inventory records' four chairs', that says nothing about whether they match, their quality or condition. The condition of the furniture, including existing damage to the furniture and fittings, decorations and other contents, should be noted on the inventory and agreed with the tenant.

Photographs are a good idea, particularly with high-value furnishings. With some properties, landlords and agents are now also taking videos.

When taking photographs, ensure not just the mark or stain being complained about is photographed close up. It would help if you took a different picture at a distance to show the mark or stain showing context and size.

A thorough and detailed inventory will help avoid disputes, particularly those involving the return of a deposit. It is advisable to keep all receipts and record the meter readings in the inventory. Remember that if there is a dispute over the property's condition and this goes to court or a deposit scheme adjudicator, it will generally be for the landlord to prove the claim.

The tenancy deposit schemes have produced practical joint guidance titled Tenancy Deposits, Disputes and Damages.

Taking an inventory is a long job, and many landlords now use professional inventory clerks to do this for them. The advantage of this is that if a dispute over the condition of the property ever happens, they will be able to give independent evidence to the judge.

Inventory clerks can be found via the Association of Independent Inventory Clerks website.