Tenancy Deposit Protection Schemes Overview:

The Housing Act 2004 brought the TDPS into play enabling tenants to retrieve all or part of their deposits back form their landlord or letting agent, where they are entitled to it.

It is now legally compulsory for all deposits between landlords/letting agents and tenants to be held under a Tenancy Deposit Protection Scheme. Deposits are generally defined as any money received by the landlord/letting agent that is not for payment of rent. Assured Tenancies and company lettings are not covered by the Tenancy Deposit Protection Scheme however all Assured Shorthold Tenancy agreements are.
The Tenancy Deposit Protection Scheme ensures that all landlords and letting agents treat their tenants fairly, and when entitled to the tenant receives their deposit back at the end of the tenancy.

There are 2 schemes namely (1) The Custodial Protection Scheme and (2) The Insurance Based Protection Scheme and are run by government appointed service providers.

Custodial Protection Scheme

• The Deposit Protection Service (run by The DPS) Insurance Based Protection Schemes


• My Deposits (Run by Tenancy Deposit Solutions Ltd)


• The Tenancy Deposit Scheme (Run by The Dispute Service) All 3 service providers are accessible to all letting agents and landlords. Should disputes arise, an Alternative Dispute Resolution (ADR) Service is afforded by all 3 service providers.

Currently, disputes are referred to these schemes in fewer than 2% of tenancies.

Advantages

• The cost of dispute resolution is free to tenants but cost to landlords/letting agents via membership fees.


• They ensure that an impartial decision is made one way or the other


• They are quick - disputes are nearly always resolved in less than a month


• They give access to an independent adjudicator


• There is provision to resolve a claim from either the landlord or the tenant if the other party is absent or uncooperative


• Once the dispute is decided by the adjudicator, the schemes ensure that the deposit is paid


• It is highly unusual for the whole deposit to be either retained by the landlord, or returned to the tenant.

Disadvantages

• It is the responsibility of the landlord, the agent and the parties concerned to provide all the relevant information - the adjudicator will not investigate the problem


• The decision is binding on both parties, so if you are not happy with the decision you can't then take the dispute to court


• If there is a dispute, the agreement of both landlord and tenant is needed to use the adjudication scheme. If one refuses, then the case has to go to the small claims court


• Although the schemes are free to tenants, they have to be paid for somehow. One is funded by the interest on the deposits which are held by the scheme, and the other two by landlord membership fees. This cost may well be passed on to tenants in higher rents.

iAssist Property Inventory Software - Innovation in Inventories

In this document PC, Tablet, Tablet PC, Laptop are used interchangeable as a PC Platform.

The changing dynamics of the property market requires lettings agents, clerks and landlords to keep their focus on the ball. Maintaining a qualitative service and competitive edge is of the up most importance as well keeping costs down.

The past decade has shown the Inventory niche explode into a lucrative industry because of the Tenant Deposit Scheme aimed at protecting the Tenants.

Accurate reports in concise formats with a higher level of quality and detail are needed. On top of this Inventory Clerks are expected to deliver the reports at a quicker turnaround.

Now is the time to make the transition from manual, audio and PDA based systems to tablet, and laptop based solutions. None of the others can really compete with the power of the PC platforms. With the latest technology on tablet PCs weighing less than half a kilogram the property inventory software applications of today deliver great performance. Screen sizes are larger, the software is faster and the data is centralised on your PC.

This article key focus is on iAssist.

Advantages

iAssist is a Property Inventory Software website platform which has been develop with the expert in the property inventory market using the most streamlined process for completing an inventory ensuring that anyone completing inventories can increase productivity while maintaining quality.

Free Software

iAssist is FREE - it comes with a FREE invoice, client and property manager. Is that all? No, it also comes with a FREE book keeping tool. Anything else? It also has a FREE diary tool. WOW, essentially iAssist is a one stop shop (mind you - a FREE shop) for inventory clerks or anyone wanting to do inventories. However, the only cost to the users are on a 'report production basis' and these are highly competitive and I'd like to say even cheaper than costs charged by property inventory software on PDAs. FREE Property Inventory Software.

Increasing speed with templates

Imagine entering a property and knowing certain details before even entering that property. It has 4 bedrooms, semi detached with modern decor and furnishings - iAssist can automatically generate a property with modern decor, furnishings and bathroom, bedrooms, kitchen, etc even before you've entered the property. What's that? You want to customise these templates... Well iAssist comes with a library of templates to speed things up, but of course they're all customisable.

Easy to use and Intuitive

The human eye picks up and recognises colours and images faster than text. The user interface has been designed to be intuitive to the eye as a result every item in the library (e.g. handle, toilet, lock, etc) has an icon with specific colours to represent them.

Reports

The report shows as much relevant info per screen as necessary so that you don't have to jump from one step to the next - as is common in PDA based software. PDAs have a lack of screen space which limits the information they can provide the user with. Through streamlining the inventory process, clerks can complete inventories up to 50% faster when compared to manual inventory services. Once an inventory is completed, any follow on jobs on that property can be completed 50% faster than the initial job carried out.

Unique Customisable Report Templates

iAssist has the newest report standard and sets the new benchmark for inventory reports. It has eliminated the need for appendices, with a row of photo's shown and referenced coherently beside each photo. Reading the report doesn't require page turning any more it's simply clearer and insightful. The report is customisable; allowing you to control branding, colour, font and textual decoration. You can control or customise your disclaimer, license, and terms & conditions agreements and enable and disable certain aspects like key information according to your template specification. With iAssist you have full control over the software.

Control your own data

One of the problems with other property inventory software providers is that the user doesn't have control over the inventory data. iAssist saves all your data on your PC, so you are 100% in control. Be in control!

Team based and powerful web portal

iAssist has been designed for inventory groups, allowing multiple tablet pcs to operate under a single iAssist account. This allows groups to share various reports with controlled allocated to the account manager.

Conclusion

iAssist is simply cutting edge and if nothing else go to their website www.iassist-online.co.uk and try it out - after all it's free software. iAssist is designed to streamline your business assist you in performance and productivity. Lastly, iAssist is user driven, the web portal has a development section which allows you to suggest and vote for iAssist updates. The software is developed with the user in mind and user consultation. So take advantage of this new innovative FREE software.

Landlord Property Inventory

Landlord Property Inventory Part 1

The secret to a good inventory is accuracy and adopting a thorough and methodical process. Most landlords undertake their own inventories and likewise manage their own properties. For those that choose to have their properties managed, the agents will organise or instruct property inventory clerks to carry this out on their behalf.

Allocating ample amount of time to a property (the bigger the property, of course the more time is needed to complete the task) is imperative. Rushing through things will lead to silly mistakes and sometimes gross errors. Remember that this report is a crucial part of a tenancy especially in cases where it is relied upon as evidence in legal proceedings.

Having a comprehensive well set out form goes a long way. It will avoid you missing out points or remind you of things that you may not have thought of.

Investing in a management system or inventory system is ideal. These systems will normally have all the forms that you will ever need and also has the capability of storing the data you input for when the check in or check outs are done then the inventory can simply be referred to at a click of a button. This is also a great idea when doing the inventory again and again per tenancy. You can simply update or amend the original inventory after every tenancy.

Benefits of doing a property inventory yourself:

• Minimal cost


• Takes less time as the Landlord knows the property contents and condition of items/furnishings/property itself.


• Amendments will be minimal but if there are any, this can be done immediately to the report.


• There is no need to make arrangements, stick to appointments and liaise with agents/tenants

Benefits of getting a property inventory outsourced:

• The report will be impartial.


• No conflict of interest should the report be relied on as evidence during legal proceedings.


• Less hassle as the work will be done on your behalf


• The report should be more qualified as professional clerks would have undertaken it.

To be Continued...

Outsourcing Property Inventories

Having your property managed by an agent can be hassle free. The agent would carry out the property inventory and the subsequent ‘check out’ as part of their management duties. This of course saves time and arguably cost (if the agent can command competitive cost - which they are willing to pass onto the Landlord) to the Landlord as well. It will also mean that if there are problems with the condition or cleanliness of the property; the agent should rectify these and use the deposit monies to cover this expense before handing the balance back to the tenant.

It must be noted that when employing an agent, the agent becomes the Landlord’s representative in all legal respects (meaning they can legally act behalf of the Landlord). Tenants decide to pursue legal action to recover their monies have been directed to take it against the Landlord because the courts have ruled in numerous precedents that there is no privity of contract between the agent and tenant. This means that whilst the agents may hold the deposit monies, legally it is still the responsibility of the Landlord and if the agent goes insolvent or runs off with the money, the Landlord still has to repay the tenant their deposit back.

It is therefore imperative that landlords choose their agents wisely and choose ones that have their own trust accounts and/or are a member of the appropriate governing body for which they can be regulated such as the Association of Residential Letting Agents (ARLA).

Another way to avoid undertaking an inventory is to delegate the task to an inventory company where highly qualified inventory clerks will do the job for you at set fees depending on the no of rooms in the property, whether the property is furnished or not and in the location of the property.

For a list of inventory clerks visit the Association of Independant Inventory Clerks (AIIC). Often the method in which the inventory is taken can impact quality of inventory or the turnaround of the property inventory report. There are a number of software, audio and photographic tools which assist inventory clerks in taking effective and detailed inventories. Don't be afraid to investigate and enquire.

In fact in some cases the these tools can be utilised by the Landlord if he decides against doing the property inventory. For example property inventory software such as iassist is freely downloadable and provides an excellent set of tools to manage and conduct a property inventory. There are many other PDA technologies such iSurvey, Bellweather or TIM which are also available although a little more costly.

However in both options (agent or inventory clerk), there is less hassle and better peace of mind for the landlord. Whether the landlord goes direct to an inventory company or goes via an agent, the cost of the inventory etc can be passed on to the tenant if part of the tenancy agreement or any collateral agreement with the tenant.

Guide to Setting up an Inventory Business

Setting up an inventory business involves all of the normal challenges that face any business start up. For all the necessary assistance in starting up a business, go to Business Link.

As with all businesses, it is imperative that you focus on the selling points that appeal to your target audience i.e. landlords and estate agents. This will help you stand out from your competitors.

Here are some key points to consider for an inventory business. This list is not exhaustive.

• Invest in your relationship with Property Managers as they will be key to smooth scheduling and ensure on time payments

• Suppliers Commission: consider a competitive rate to secure the coveted estate agents in your area.

• It is imperative to have a decent operating system. Things to look out for: appointment scheduler so you don't double book, an accounting system, a diary, a report creator/database, client database, letter creators (for marketing to clients) etc

• Services: If you have the manpower and resources and want to bring in even more capital consider expanding your services to include floor plans, inspection reports, snag reports and energy efficiency reports.

• Report Delivery Time: Getting the report to the agent as soon as possible can be a selling point. There are a number of systems which guarantee less than 24 hours turnaround. Assuming you produce a comprehensive report in the property it is likely that your inventory / check-in / check-out report will get to the office on the same day. Of course you may want to check spelling and grammar before you do this. Also before you get the report off to them you will want to get the invoice out. It is important to choose a solution which works for you, but more importantly will generate reports and invoices simultaneously.

• Reports: Detailed, high quality well branded reports is the way forward. Also consider a 4 column report which includes the previous job data, making it easier for the client to analyse the information.

• Payment Terms: decide on a strategy to ensure that your instructors pay you. Ensure you include payment terms with all invoices, the last thing you want to is to take a client/agent to a small claims court to resolve payment issues. When dealing with agents find out how they operate and process payments. In my experience larger agents can follow a certain process and if you don't fit in with their process (that all of their contractors adopt) you may end up not getting paid on time or at all.

For example once a job is complete some agents put physical invoices that they receive into a property pack which represents the property. If some agents only receive their invoices by email, they don't print it, the invoice doesn't get filed and hence doesn't get paid. Maintain a good relationship with property managers so that nudging them for payments isn't a problem.

• Data: however you decide to undertake your Inventories it is important that you maintain your own database, or file a system of reports. Don't adopt a system where your reports are stored independently of your business. This leaves you with less control and a greater dependency on another company. Service providers that control your data may go bankrupt or decide they want to use information without consent that should be owned by you. More importantly you should always keep a backup of all of your data separately of the tablet / laptop / computer which stores the data. Ideally, storing your data offsite in a data centre protects your business in the event of theft, fire or an unpredictable event that may occur.

• Quality Control with Multiple Clerks: as your business expands you may wish to take on additional clerks or out source some work. Ensuring that you maintain the high quality that you have established with your clients is important, otherwise you may find yourself leading into disputes with the very clients that instructed you.

In the case of having multiple clerks in the business, this can be achieved by employing meticulous clerks (do a few test inventories with them) and providing them with the proper training. Second, you can provide them with a checklist of common considerations on the job that you have built over your experience as a clerk. If your clerks achieve a 0%-3% dispute rate (i.e. in every 33 jobs they carry out at a maximum they have 1 dispute) you may want to offer them a financial bonus incentive.

In the case of having outsourced work, primarily ensure that the inventory clerk is someone who you are prepared to have or already have a long standing relationship with. Ensure that they are properly trained and check their reports on a regular basis to ensure consistent quality. Consider selecting the people who use the same inventory methodology (Property Inventory Software or Dictaphone etc) so that you can obtain the source of the inventory for your library of reports. Get references from their current clients to check their punctuality and quality of inventory reports.

Accreditation in Property Inventory Reports

While the property inventory bodies are private enterprises, they by no means lack quality in their training and accreditation is highly respected in the absence of any governmental regulatory bodies.

Once trained by these bodies they provide you with their stamp of approval, but as with many of these bodies they do not provide on going audits to ensure standards are maintained. This means that a clerk can be accredited but can loose the quality that the self appointed regulators expect.

These regulated groups deliver a number of benefits which include:

• A set of guidelines which assists the clerk to achieve consistency between Property inventory reports.


• Acceptance of an appointment to produce a Property Inventory Report if there is no conflict of interest.


• Compliance and support to assist the parties involved in the legal process if a dispute occurs.


• Places the decision of the regulated group above their own in a dispute regarding guidelines and code of conduct.


• Qualitative training which can lead to qualitative property inventory reports.


• Fulfilment of all legal requirements such as Professional Indemnity

Accreditation doesn't always equal quality; there are a number of high quality trainers out there who can provide high quality courses. Many of these trainers are themselves accredited from the larger respected lettings groups such as ARLA and NAEA.

• The Association of Residential Lettings Agents (ARLA)


• The National Association of Estate Agents (NAEA)

However as prescribed above it is likely that you would be a preferred supplier for a lettings agent if you are accredited so it is well worth considering the investment.

Self appointed regulatory bodies include:

AIIC APIP LIS/IPL ARIC ICUK

IMA EIS ICA LIAS

Training Only: Lettings Training Centre First Inventories Quidos Active Inventories Home Inventories ISUK

Franchises: Lets Go Inventory Clerk.com No Letting Go Property Inventories UK Ltd.

Even More Profits for Letting Agents / Estate Agents? (Property Inventory)

Since the Tenant Deposit Scheme (TDS) came into play, inventories have become more instrumental within the industry. With this shift of necessity the property inventory market has boomed and opportunities have grown for those who know where to look for them. Even despite the recent recession that has hit globally, lettings have stayed stable leaving the property inventory market widely unaffected.

A lettings agent can either do the inventories within their company or create a second company. Both options have benefits. Keeping inventories inside your property lettings company allows you to consolidate your accounts and make business accounting more manageable. Creating a second company allows you to advertise your services to your competitors (tapping into their cash flow) without implying a conflict of interest which might stop them from using your company. It is also beneficial for estate agents who are part of a franchise. A separate company allows them to separate the profits accrued from inventories into a separate account, which remains separate from any franchisee fees.

Again if you choose open a second company, there are even more opportunities to further expand into other related services such as managing maintenance, providing photos, floor plans and any other service which is required by the estate agent themselves.

This allows them to reduce the cost in their own company or maximise the profit in the second company and maximise their success and profits by doing jobs for other companies (your competitors).

It is however always recommended to do a business plan and investigate how the latest technology can help achieve the right business goals.

For the latest technology platforms for inventory software:

(I am slightly bias toward tablets, because I prefer having the power of my PC wherever I go).

Tablet software:

Property Inventory Tablet Hardware Pros:

• It provides the beauty and power of a pc, has a rich user interface.


• Providing you're using the leading technologies shown in the links below you have highly intuitive graphical interfaces in the property inventory software.


• You can also run all your normal applications i.e. email editor, ms word, excel etc.


• You can use touch screen technology if you purchase tablet enabled units.


• You can use GRPS dongles for email on the move.

Property Inventory Tablet Hardware Cons:

• Heavier than their competitors. However the latest technology delivers units which weigh less than 1 KG.

Useful Links:

• Touch Screen Inventories: Property Inventory Software TSi


• iAssist: Property Inventory Software iAssist

PDA software:

Property Inventory PDA Pros:

• The technology lightweight and more mobile.


• GPRS SIM technology built into some units so you can send emails on the move.

Property Inventory PDA Cons:

• Limit to power and functionality, small screen, slow speed.


• User Interface is much more limited than tablet laptops.

Useful Links:

• TIM: www.theinventorymanager.co.uk


• Mobile Agent: www.themobileagents.co.uk


• iSurvey: www.isurvey-inventory.co.uk


• Bellweather Inventories: www.bellwethersoftware.com

Dictaphone recorder:

Dictaphone Recorder Pros:

• The technology is lightweight.


• Inventories are dictated on a Dictaphone and the tape or file is sent off for typing, larger companies outsource the typing to countries such as Australia,. The idea being, while the UK sleeps, Australia works or types and the reports are ready the next day.


• If geared correctly the Dictaphone approach can minimise your time in the property but overall turnaround times are similar to the above solutions.

Dictaphone Recorder Cons:

• No integrated photographs or plans can be attached.


• Editing reports are a hassle.


• Consistent formatting can be an issue.


• No continuity between reports by comparison to systems that use databases that can retrieve information from previous reports etc.

Useful Links:

• Dragon Dictaphone: www.nuance.co.uk


• Typing Services: www.probiztype.com

We will be doing an in depth blog on these technologies this month.

Useful link Property Inventory Reports 101

Property Inventory Reports 101

Property Inventory Report

An Inventory Report is a complete record of the physical internal condition of the property to include all fixtures, fittings and décor of the property at the time of the inventory. Photographs are also taken and attached to the report.

The aim of this report is to accurately describe every item in the property, although there will at times be a difference in opinion. Most clerks are highly trained and can deliver an adequate property inventory however differences in opinion should be straightened out before the report is accepted, signed and dated.

The need for an inventory arises, in most cases, to avoid litigation and or landlord / tenant disputes as the tenancy term ends and there is disagreement as to the condition of the property with regards to cleanliness, disrepair, damage and missing furniture / other household items. The inventory can be referred to and ultimately used in court as evidence should matters proceed down that route.

It should be noted that items that are out of sight or inaccessible to the clerks (items in the lofts, cellars or locked rooms, garages and sheds) will of course not be recorded in the inventory report.

In general, clerks will not move furniture or look under furniture. Clerks will not test any electric or gas appliance or equipment. They will not test fire alarms, house alarms etc. unless specific instructions have been given to do so.

Inventories can be carried out by the Landlord themselves but most opt to hire professional clerks to do the job for them at a competitive rate. Also clerks take an impartial approach to producing the report.

Property Check-In Report

A Check-In Report provides a schedule of the condition of the property and sets the benchmark at which the property should be maintained and returned at the termination of the tenancy.

Together with the Inventory Report, the Check In creates a report specific to a particular tenancy.

When new tenants move in, the Inventory is examined in detail with the incoming tenants to note any disagreements, if any. Meter readings are noted and generally photographed. Keys are signed for and handed over.

Property Check-Out Report

A Check-Out Report takes place upon the termination of a tenancy. This report is compared to the Inventory and Check In reports taken at the beginning of the tenancy and any discrepancies i.e. damage, state of cleanliness, state of disrepair, general wear and tear will be assessed. Meter reading will again be taken and keys will be returned.

In an ideal situation, all 3 reports (Inventory, Check In and Check Out) should be undertaken by the same Inventory company for ease of comparison and reference.

Snagging Report

A Snagging Report; this report is commonplace when purchasing a new build property or newly refurbished property.

This report compiles a list of any issues regarding the décor, finish, fixtures and fittings, appliances, furniture (if included) etc. This report will then serve as a check list to be handed to the vendor who should then act upon the report prior to the sale of the property.

Useful link Even More Profits For Letting Agents