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Inventory Checklists Essential for Rental Real Estate

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By Helene Lesel
Q: My tenant moved out and left a dime-sized chip in the kitchen sink. The tenant says the chip was there when she moved in, and I can't recall. Any suggestions?

A: I'm assuming you didn't fill in an inventory checklist at move-in, or this problem would not have surfaced. Without some proof or evidence of the pre-existing condition, it will be your word against the tenant's if you deduct the cost from the deposit. Hopefully, the two of you can work out a compromise or at best split the cost if neither party can remember or provide compelling evidence.

It's not surprising that a checklist wasn't employed. Back when hardwood and charm were the main features of a rental unit, the concept of an inventory checklist was unheard of. But as housing features have become more complex and items more expensive to replace, the need to keep track of such details is vital.

As a matter of fact, about a dozen states now require a move-in and/or move-out checklist for rentals. Not surprising, since checking for smoke alarms and window-bar releases in sleeping areas is legally required in most states.

Laws of the land notwithstanding, wherever your rental may reside, always employ a well-written move-in/move-out checklist, which is invaluable for any rental situation.

Where should an inventory checklist begin? Several types are available, including a basic version available for no charge through the California Department of Consumer Affairs at www.dca.ca.gov/legal/landlordbook. The list examines areas, including the kitchen, living room, bedrooms, baths and hallways. Items such as floor coverings, walls, counter surfaces, and ceiling and light fixtures are sub-listed for each room or area. Three columns follow, with "condition upon arrival" to start. "Note condition, including existing damage and wear and tear," are part of the move-in category.

Since one of the greatest disputes is over wear and tear, the checklist is essential for establishing a "baseline." For example, is the place mainly carpet? Is it discolored or stained? Check for frays or sign of wear, especially in the main traffic areas. Hardwood floors should be checked for scratches or stains.

Don't forget paint. Not just the condition but the color of each and every room should be written down, including gloss, semi gloss or flat. Antique White or Eggshell? Expensive disputes have stirred over paint changes, with both sides scratching their heads over original color and condition years later.

Moving on to moving out, "Condition upon initial inspection" covers the pre-move-out requirement for some areas, which is done two weeks prior to move-out. The list suggests, "Note deterioration beyond reasonable use and wear for which tenant is alleged to be responsible." Paralleling the same items, space is available for comments.

The California Association of Realtors Inspection Form, available only to their professional members, goes into further detail. This five-page list is particularly useful when leasing a rental home or condominium, since greater detail is found. Starting with the front yard and exterior, then noting condition of the landscaping, fencing, sprinklers, timers, walks, driveways, porches, stairs, mailbox, light fixtures and general building exterior gets the ink rolling.

Moving on to the entry, such details as "entry security, screen doors, knobs, locks, switches and outlets," are just a few of the listed items. In the living room, checking for fireplace equipment is suggested, along with the usual systems.

Bathroom items include shower door, rail and curtain, and include checking the exhaust fan. In the kitchen, the list includes giving the garbage disposal a spin, always a good idea, as well as checking all major appliances inside and out.

Especially handy are the move-in choices of "new," "satisfactory/clean," and "other" (with comments to be provided). In your case, the line for sink/faucets would have noted the problem.

Move-out, in a different column, provides the choices of "satisfactory," "other," or "D," ironically for deposit deduction. Comments are to be included in the space provided.

Whichever list you have handy, having a camera ready is vital for documenting condition, and using a coin, such as a dime, is great to provide scale.

Best time to bring out the list? "I usually give the tenants a few days to settle in," remarks Bernard Mittleman of Mittleman Management. Items that need to be repaired should be put on a different list, or noted as repaired on the walk-through.
Copyright 2005-2006 Helene Lesel. Distributed by Inman News.
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