Improving the Property Inventory Industry Through Proper Clerk Training
By: Fabiola Grosshan
Submitted: 2010-05-21 05:53:57 | Word Count: 764
The revised terms covered by the Housing Act 2004 state that all the deposits taken by landlords under Assured Shorthold Tenancies are required to be fully protected by tenancy deposit plans. This translates into the fact that right from the very time a rental agreement is signed, both tenants and landlords are advised to create accurate and clear inventories covering the state of the rented property and all the contents found there. These revisions place a strong importance on inventory and deem them important evidence that is to be used in settling deposit disputes.
As APIP (Association Professional Inventory Providers) states “if an inventory is inadequate, out of date, non-existent or if it cannot be proven to have been given to the tenant then the adjudicators are likely to award the deposit to the tenant unless the tenant admits to damage or losses. After a period of time operating the schemes, this message is being reflected in the ADR (Alternative Dispute Resolution) outcomes, with many inventories being found to be either inadequate at the outset, or failing to make the correct substantiated observations at the check – out”.
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But despite the weighty implications of an inferior inventory report to both landlord and tenant, the industry is shirking the responsibility to introduce more stringent regulations and that there is a need for tighter controls on the training of inventory clerks operating in the field.
Many letting agents operate an in-house inventory management service but it is estimated that as many as 70% of in-house clerks have not undertaken any professional training. And it is not just the in-house departments that are guilty of failing to invest in the appropriate training – there are plenty of independent inventory management businesses operating in the sector that regularly undertake inventories and check-ins on behalf of landlords or letting agents – who have never undergone any professional training. With APIP currently suggesting that there are around 6,000 letting agents in place in the UK but records showing that only about 135 have undergone any formal APIP training (AIIC claims a further 450 members), there is clearly a worrying shortfall in the number of inventory clerks who have undergone the specialist training designed to ensure the delivery of a professional inventory capable of standing up to the court’s scrutiny. Whilst the most common defence for failing to offer training is usually the cost (in financial terms as well as time), which is a short-sighted approach to business.
Since the new legislation came into force, the number of deposit disputes going to Alternative Dispute Resolution has risen and with the ARLA (Assciation Residential Letting Agents) dispute service currently handling around 1,000 tenancy deposit disputes a month, the demand for detailed, consistent and well documented inventories remains high. But unlike other professional sectors, it appears that little is being done to monitor the standards of the inventory management industry. Even if an inventory clerk does attend a dedicated training course, once they are out in the field there is no requirement to attend a ‘refresher course’ to update skills / knowledge as part of their continuous professional development. Given that a significant proportion of disputes which are settled in the landlord’s favour are those where a well written inventory is in place, surely it should be mandatory for inventory management businesses to be able to demonstrate an adherence to the strictest code of practice as recognised by AIIC or APIP?
The letting industry has a responsibility to protect the property investments of its clients. This fundamental duty should surely incorporate a requirement from anyone providing an inventory management service to be able to demonstrate suitability and possession of the correct skills and training to undertake a professional inventory?
Landlords looking to appoint a letting agent / inventory management business should ask to see training credentials as part of the natural recruitment criteria employed during the appointment process. We would also urge all landlords to request proof of indemnity / public liability insurance prior to commissioning any inventory management services. Most importantly, the lettings industry needs to raise its game in terms of being seen to not only encourage professional training for anyone involved in the inventory management sector, but also to actively discourage clients from seeking out the services of companies which have failed to invest in any formal, professional training. After all, appointing an insufficiently qualified inventory management business could prove a very expensive mistake in the long run.
