A YEAR after the introduction of the statutory Tenancy Deposit Scheme (TDS), the creation of an up-to-date inventory remains an essential document between landlords and tenants.

Although the TDS does not make inventories compulsory, they are regarded as highly important when it comes to property rental.

The inventory, often referred to as a schedule, details the condition of a property's fixtures and fittings and general state of the building, acting as a written benchmark for both landlord and tenant to live by.

Not only will the inventory need to include a list of items included in the tenancy, such as beds and curtains, but it will also have to record any damage or the condition of each item and any existing defects at the beginning of the tenancy.

It should be amended, updated and recreated at the beginning of each tenancy, with costs usually being shared between the two parties.

David Tickner of David James Letting and Property Management in Southborough Lane, Bromley, said: "The majority of landlords appreciate the need for an inventory.

"However, what they often don't realise is it's very important to list the condition of items and fittings such as carpets, curtains and furniture generally.

"It is also vital updates are made to the inventory throughout the year and relevant parties communicate any big issues otherwise it risks becoming out of date."

An inventory benefits both the tenant and landlord and is a vital document if the two come to blows over deposit disputes as a result of damage to the property.

It is important for the landlord as it is evidence of the state of the property, signed by the tenant before the move in, meaning if any damage occurs during the tenant's period of stay, the landlord has grounds to withhold some or all of the deposit.

Likewise, tenants have the security of knowing the landlord can not refuse to return a deposit if no harm has come to the property.

David said: "The time when an inventory becomes most valuable is obvious, when there is a dispute between the landlord and tenant.

"At this stage, the documentation will be central to a resolution.

"It's a sad fact the majority of people only truly recognise the value of inventories when it is too late."

David James Letting and Property Management is working with the National Approved Letting Scheme, urging landlords to prepare a comprehensive inven-tory to save disputes when it comes to refunding a tenants' deposit.

The property lettings and sale management company is offering free advisory leaflets giving guidance and support on how to set out an inventory to make it as easy as possible for all parties involved.

David said: "A detailed and accurate inventory will not only be used as evidence should a dispute arise when the time comes to agree the amount of the deposit returnable - it will also speed up the process and provide priceless peace of mind."

If you would like to receive the free Why is an inventory required guide, visit the office in Southborough Lane, send a stamped-addressed envelope to the offices or call 020 8467 8304.