Steps to Take If You Find Issues During Check-Out

Steps to Take If You Find Issues During Check-Out

The end of a tenancy is a critical time for landlords and tenants alike. A smooth check-out process ensures that both parties part on good terms, but discrepancies in the inventory report can throw a wrench into the proceedings. Whether it’s damage to the property, missing items, or excessive wear and tear, handling these discrepancies properly is essential to avoid disputes and financial losses.

In this guide, we’ll walk you through the steps to take when inventory discrepancies arise during the check-out process.

1. Stay Calm and Objective

Finding issues during a check-out inspection can be frustrating, but it’s crucial to remain calm and professional. Approach the situation with an open mind, as some discrepancies may have reasonable explanations.

Pro tip: Avoid making accusations or jumping to conclusions before gathering all the facts.

2. Refer to the Initial Inventory Report

The first step is to compare the condition of the property at check-out to the original inventory report created at the start of the tenancy. This report serves as the baseline for determining what, if anything, has changed.

Why it matters: A well-documented inventory report with photos and detailed descriptions is your best defence in resolving disputes.

3. Determine the Nature of the Discrepancy

Not all discrepancies are equal. It’s important to categorise the issue to decide on the next steps:

• Damage: Look for evidence of intentional or accidental harm to the property.
• Wear and tear: Determine if the issue falls under normal usage over time, which cannot be charged to the tenant.
• Missing items: Check if any landlord-owned furnishings or appliances are missing.
• Cleaning issues: Assess whether the property has been returned in an acceptable state of cleanliness. You can learn more about tenancy cleaning.

Pro tip: Familiarise yourself with local regulations regarding what constitutes wear and tear versus tenant-caused damage.

4. Document Everything Thoroughly

If you notice any discrepancies, take detailed notes and photographs. Your documentation should include:

• Clear images of the issue, with close-ups for clarity.
• Date-stamped photographs for authenticity.
• Notes referencing the specific items or areas in the initial inventory report.

Why it’s important: This evidence will support your claim if the tenant disputes the findings or if the case escalates to a deposit protection scheme.

5. Communicate with the Tenant

Once you’ve identified discrepancies, inform the tenant promptly and professionally. Share the evidence you’ve gathered and give them an opportunity to explain or rectify the issue.

Example: “During the check-out inspection, we noticed a discrepancy regarding [specific issue]. Please find attached photos and references to the initial inventory report. Could you provide your perspective on this matter?”

6. Consider Offering a Resolution

In some cases, it may be beneficial to offer a solution that avoids escalating the issue. For example, you could:

• Agree on a deduction from the deposit to cover the cost of repairs or replacements.
• Allow the tenant to rectify the issue themselves (e.g., hiring cleaners to address cleanliness problems).

Why it works: Resolving the matter amicably can save time, money, and stress for both parties.

7. Use a Deposit Protection Scheme for Disputes

If you and the tenant cannot agree on the resolution, you can escalate the matter to your deposit protection scheme. These schemes offer an impartial dispute resolution service to decide on the fair outcome.

Steps to take:

• Submit your evidence, including the inventory reports, photographs, and correspondence with the tenant.
• Be prepared to explain your position and justify any deductions from the deposit.

8. Learn from the Experience

Even if the discrepancy is resolved successfully, take the opportunity to improve your processes for future tenancies.

• Conduct thorough check-in and check-out inspections: Use professional inventory services to ensure detailed documentation.
• Set clear expectations: Outline tenant responsibilities regarding property care in the tenancy agreement.
• Schedule mid-tenancy inspections: Regular check-ups can help identify issues early and prevent surprises at check-out.

Remember, a well-prepared inventory report is your greatest ally in these situations. If you’re not already using professional inventory services, consider investing in them to ensure accuracy and impartiality from the start.

Looking for more tips? Browse our blog for expert advice on managing your rental properties with confidence and ease.