Propertymark L3 Residential Inventory Management cheat sheet

Inventory for sales records condition, cleanliness, fixtures, fittings and meter readings at the point of marketing; it is evidence of the property's state, not a warranty of quality.

Gross internal area (GIA) is measured to the internal face of external walls, including internal partitions and columns; it excludes external walls, open balconies and voids.

Gross external area (GEA) is measured to the external face of external walls; it is the usual basis for commercial and some older residential descriptions.

Net internal area (NIA) excludes internal walls, columns, stairwells and plant rooms; it is the standard basis for lettable office and retail space.

Fixtures normally pass with the freehold unless expressly excluded; fittings (freestanding items) pass only if listed in the inventory or contract.

A schedule of condition agreed and signed by both parties before marketing reduces later disputes about damage or missing items.

Meter readings (gas, electricity, water) should be photographed with serial numbers visible and recorded with date and time.

Smoke and heat alarms, CO alarms and carbon monoxide detection are legal safety points to record where present, with test status noted.

Defects must be described factually and located precisely (room, elevation, position); opinion-based wording such as 'in good order' is not evidence.

A tenancy deposit in England and Wales must be protected in a government-approved scheme within 30 days of receipt; the prescribed information must be served on the tenant within the same 30 days.

At check-in, the inventory plus signed schedule of condition forms the baseline; at check-out, comparison is made against that baseline, allowing for fair wear and tear.

Fair wear and tear is deterioration from normal use over time; it is not damage, and the tenant is not liable for it.

Betterment is not permitted: a landlord cannot recover new-for-old replacement value where the item had already depreciated.

Apportionment for damage considers the item's age, expected lifespan, original quality and condition at check-in.

The deposit scheme's dispute process relies on documentary evidence: dated photographs, signed inventories, receipts and correspondence.

Utility meter readings at check-in and check-out allocate consumption correctly between landlord and tenant.

Keys must be counted and identified at check-in and check-out; missing keys are a legitimate deposit deduction where replacement cost is evidenced.

Smoke and CO alarm testing should be recorded at check-in, with the result and date noted in the inventory.

Commercial areas are quoted on a defined basis: NIA for lettable space, GIA/GEA for whole buildings; the basis must be stated with the figure.

The IPMS (International Property Measurement Standards) suite provides consistent measurement definitions for offices and other asset classes.

A schedule of condition annexed to a lease limits the tenant's repairing obligation to the state recorded at lease commencement.

Dilapidations are claims for breach of lease covenants to repair, decorate, reinstate or yield up; they are assessed against the lease terms, not general fairness.

Reinstatement obligations cover removal of tenant alterations and making good to the original specification where the lease requires it.

Service charge budgets and apportionment percentages should be recorded with the inventory so the tenant can verify future demands.

Where the lease is contracted out of security of tenure, the correct procedure and notices must be completed before the tenant occupies.

Fire risk, asbestos register and statutory compliance certificates (gas safety, EICR, EPC) are recorded at handover for commercial premises.

Plant, machinery and M&E assets should be listed with make, model, serial number and service history at handover.