Learn all about the inventory

For this new article we were able to welcome Audrey Deceuleneer, project leader and rental manager at OP, to talk about the inventory.

What is an inventory?

First of all we should make it clear that there are different types of inventories: the initial inventory, the final inventory and the inventory for works.

The main purpose of an inventory is to make a record on paper of everything that is in a property.

If the property is unfurnished, it is essential that it should be completely empty before carrying out the inventory. The expert will then be able to detail the contents of the property in the initial inventory. Everything to do with woodwork, lighting, paintwork etc. should all be recorded in this document.

A complete description will make the process of carrying out the final inventory much easier. As Audrey Deceuleneer explains, when the lease agreement comes to an end, if the initial inventory was performed correctly, it is easy to calculate the cost of rental damage. For example, if it is found that a hole has been made in a wall, or a nail has been put up that was not present on the initial inventory, this will be considered as rental damage. These weightings are used by the Chamber of Experts and make it possible to calculate the amount to be charged to the tenant as rental damage.

As the lease stipulates, the tenant must provide proof that the boiler has been maintained every two years. This means that when the property is re-let, the owner will be able to provide the new tenant with evidence that this maintenance has taken place. If this has not been done, the new tenant will be entitled to require the owner to carry out this maintenance, which must then be done at the owner’s expense.

When a tenant takes possession of a property, they are asked to make a payment equivalent to two months’ rent as a rental deposit. If there is rental damage, the owner will withhold part of this deposit to settle the tenant’s debt. The deposit can only be used in this situation. For example, the owner cannot use it to offset unpaid rent or charges.

If the cost of the damage is greater than the amount of the deposit, the tenant will have to pay the difference. This may happen, for example, if the property has been completely repainted. The lease agreement states that the tenant is free to change the colour of the walls, but they are obliged to return them to their initial condition before leaving. If this is not done, the cost will be calculated to include both the cost of painting and also the involvement of the tradespeople who repaint the building. Depending on the number of rooms that have to be repainted, and also the size of the property, this can easily exceed the amount of the rental deposit.

If the property is furnished, an inventory has to be taken of everything: tableware, the contents of items of furniture etc. Everything in the property must be mentioned in the inventory. Photographs of every item are also used to determine whether the wear and tear on the items provided is abnormal, which then constitutes rental damage.

Who carries out the inventory?

An inventory can be done by just the owner and the tenant, without involving a professional. This may be more risky, however, if any disagreement arises between the two parties. Another advantage of having an expert present is that they can take into account both the purchase cost of the damaged item and also what constitutes normal wear and tear. It can be difficult for an owner to assess the rental damage if they do not have detailed knowledge of the real estate business. It must also be remembered that the expert is neutral, and can therefore act as an excellent intermediary, free of any emotional involvement.

There is, of course, a charge for an inventory carried out by an expert, and the cost of this is shared between the two parties: the owner and the tenant. The cost can be expected to be 150 to 250 euros for a property of a normal size. The larger the property, the higher the cost.

What is the legal situation?

If a legal dispute is brought before the courts because the parties cannot reach an agreement, it is always preferable for the inventory to have been carried out by an expert.

Audrey Deceuleneer also points out that the inventory is then valued much more highly from a legal perspective because it has been done by a real estate professional. An inventory carried out by a landlord on an amicable basis does not have the same weight. For example, if it fails to provide evidence of costs that are being claimed from the tenant, it may be more difficult for the average owner to recoup these than if they are accompanied by a professional who has drawn up the inventory.

If something was not noticed in the initial inventory, the tenant has one month after receipt of the document to give notification of this. In that situation a rider to the initial inventory is produced. Otherwise, if the owner becomes aware that something was missed in the final inventory, it is no longer possible to do anything about it once the inventory has been signed.

What happens if work has been carried out during the course of a lease?

In the case of minor works, these will not affect the inventory at all.

If, however, major works have been carried out on the property, resulting in a fundamental change in its nature, it is compulsory to carry out another inventory. It is important to know that in this case the first inventory no longer has any validity, because it no longer matches the type of property being occupied.

As we stated previously, there is also an inventory for works. This may be requested by an owner who is letting out the property or a neighbour who may be affected by the work.

For example, if the neighbouring owner wishes to carry out major works, it is possible that there will be an impact on our property. Work done on the external walls or roof can cause cracks in the neighbouring properties, or drilling in a room with a party wall between the two properties may lead to accidentally drilling through to the other side. It is therefore possible to carry out an inventory for works to make sure recourse is available against a third party, in this case the owner of the property in which the works are carried out, if complications do arise. In this case, the cost of the procedure is payable by the owner who carries out the works.

Whichever type of inventory is used, it is therefore a key element in the process of letting a property. It allows both the owner and the tenant to avoid possible disagreements and unnecessary costs. Although there is a charge for an inventory carried out by real estate professionals, this is the ideal option.

OP has been a specialist in real estate for more than 145 years and can take care of everything involved in rental management.

Do not hesitate to contact us for more information about our services.

If you have any questions about this article, please contact us by e-mail at the following address: bde@op.be