The Association of Independent Inventory Clerks (AIIC) says the topic of inventories in the real estate industry is one that needs more attention.
Although the rental industry is renowned for being financially rewarding in the long run, those who don’t have the right processes in place could actually end up with unnecessary costs.
AIIC argues that although inventories are not yet mandatory in the real estate industry, they are a necessary safeguard that the rental industry should rely on and be carried out in a professional manner.
The False Narrative Surrounding Inventories
Inventories allow rental agents and owners to keep a close eye on all aspects of their real estate investment.
These detailed records have long-term value as they are an essential preventative measure that prevents money from being wasted later.
Daniel Evans, CNA president and recently re-elected to serve again, explains:
“One of the most damaging and prevalent narratives in the real estate industry is that by not taking inventory, you will save money.
In reality, no inventory means no financial security. Without this essential record of the condition of the property and its contents, owners put themselves at risk of losing large sums of money.
He added: “In the real estate industry, the way to save money is not to be frugal, but to understand the legal requirements needed to rent a home and to ensure that they are covered in the most appropriate way. safe as possible.
Inventories provide exactly that to all parties.
Of course, not paying for a service means saving some change in the short term, but this decision may harm the future of the rental in the long term.
Save money with professional help
Landlords and rental agents have a range of responsibilities they must adhere to.
Therefore, those who make the decision to conduct inventories themselves are less likely to produce a meaningful inventory.
Evans continues: “Too often, owners underestimate the skills required to carry out an inventory.
They end up missing vital details and the inventory doesn’t protect them.
The fact is, agents and owners without the essential inventory training and experience are unable to conduct an accurate and thorough inventory.
Large sums of money can be saved with the help of a vigilant and diligent inventory clerk.
On the other hand, doing the inventory yourself may cost more in the future.
It can even be as bad as not taking any at all, because an inaccurate inventory is unlikely to protect a party in a court decision.
When you have a solid inventory, you will know exactly what the property was like at the start of the rental and an unbiased comparison of its condition at the end can be made.
When deposit disputes arise, owners must successfully prove that loss and damage occurred during the rental to recover costs.
A qualified inventory clerk will provide accurate descriptions and supporting time-stamped photographs.
The registration of walls, floor, fixtures, accessories and elements of the house will be so detailed that it can only lead to an unbiased result.
Plus, at a time when rent reform is a top priority, landlords and leasing agents need more than ever to make sure their homes meet industry standards.
Professional inventories can allow rental agents and owners to remain confident even in the event of a deposit dispute.
It is the only evidence presented to adjudicators that ensures that they award funds fairly and impartially.