What is a condition report?

Before renting your property out, it is essential that you know and understand your rights and landlord responsibilities to adhere to legislation requirements, and ensure you protect your asset.

As a landlord, do you know what a condition report is and why it is so important for your tenancy agreement? Watch this video as Joanne Danckwardt explains what the purpose of a condition report is and why it is a critical part of the property management process and NSW Tenancy Residential Legislation.

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What is a condition report?

A condition report records the condition of the rental property, room by room, including fixtures and fittings. It is prepared at the beginning of each tenancy, prior to the tenant moving in. Two copies are prepared, with one copy given to the tenant before or at the time the agreement is signed. An inspection is conducted of the property, with all damage described, noted, and photographed (no matter how minor – often minor damage is what causes issues in the future). Thorough time and detail should be spend on creating the condition report.

Tenants are required to complete their section of the condition report, by agreeing or disagreeing, and adding their own comments, and return to the agent/landlord within seven days of moving in. It is in the tenants’ best interest to be thorough and detailed on the report. If they do not agree with what has been documented by the agent/landlord, the tenant must make their own comments in the section provided. Should a tenant not return the report to the agent/landlord, the report is deemed to be accurate as at the agent/landlord completion. Tenants should keep their own copy of their detailed condition report.

The condition report is kept for the duration of the tenancy, and is used as a reference point when the tenants move out. This will help to ascertain if the property is in the same condition as it was at the beginning of tenancy, fair wear and tear excepted. The report will highlight any damage that occurred to the property while it was tenanted. The agent/landlord will refer to the condition report and check off each item listed in it to make certain that the property is in the same condition as when the tenant first took possession.

How important is a condition report?

The condition report is a key piece of evidence at the end of the tenancy should there be a dispute about damage, cleaning, or missing items. It is critical that the condition report is detailed, and that time is spent on it to ensure that it accurately reflects the state of the property. It can be used in a tribunal hearing if required. We recommend taking photos of the property in conjunction with preparing the condition report as the visual verification will strengthen the report.

Condition reports and renewed tenancy agreements

If the tenant renews their lease agreement, the new agreement will record the date the condition report was originally carried out.  A new condition report is not required.

If you're ready to discover how you can rent out your property with confidence, download our free Step By Step Checklist to Renting Your Property with Confidence.

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