What is a check-out report?

The end of a tenancy can turn sour, as the tenant and landlord have to agree on whether there are any costs to meet for damage. So what is a check-out report, and how can it help the landlord or lettings agent to avoid unnecessary problems?

Creating a complete record of the property's condition

Once the tenant is ready to leave, the check-out report captures the property's condition as they are leaving it. To complete the check-out report, you'll want to carry out a careful inspection allowing you to produce a detailed description and photography of the property's condition, room by room, cross-referencing the information against the original inventory's Schedule of Condition. For this reason, it's essential to have an accurate and detailed inventory to refer back to, and the tenant must also have access to this. Read our blog post What is a property inventory report? for more on that.

Once you've finished the check-out inspection, you can finalise the check-out report stating the current state of the property. 

What does the check-out report include?

The report should provide a complete list of the property's condition and photographs for each item. It should also capture meter readings taken on the day, the stopcock location, a list of appliance manuals, alarm testing and a Fit For Human Habitation (FFHH) report. 

Why is the check-out report so important?

Essentially, the purpose of the check-out report is to identify any damage beyond fair wear and tear, for which you may need to make deductions from the tenant's deposit. For example, you can claim repair, replacement or extra cleaning costs.

From the tenant's perspective, it's a good idea for them to be present while the property is being assessed, as their deposit is at stake. The check-out report should be created within 48 hours

Using a professional inventory clerk 

Yes, you can create the check-out report yourself, but getting a third party involved can be a better idea if you want to avoid problems. You can use a specialist inventory clerk to perform the inspection and report creation – this has the advantage of helping the whole process to be as objective as possible. Remember that if you need to make any deductions, you'll be on firmer footing with an impartial report created independently. 

If you decide to use an inventory clerk, it's still a good idea to attend the check-out if you can, as it's a lot easier to resolve any problems face to face.

Dealing with damage

If the tenant has left the property clean and in the same condition as at the start of the tenancy, you can both sign and date the form, confirming that there will be no deductions. But if there are any issues with damage, the check-out report allows you to identify them and decide on reasonable deductions to put the problem right.

The tenant may accept, reject and appeal, or negotiate the proposed deduction. The more thorough your initial inventory and check-out report, the better your evidence, which improves the likelihood of bringing matters to a speedy conclusion without the need for dispute resolution.

Want to brush up on your admin? Read our blog post 10 legal documents landlords need to get right!