A Condition Report is a document given to your tenants at the beginning of their tenancy that records the general state of the condition of your property on a room-by-room basis, including fittings and fixtures and must be completed within the first seven days of the tenancy.

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A Condition Report outlines the current state of the building or furnishings and forms an agreement between the landlord and tenant on what they can expect when they enter into a residential tenancy agreement. This means less uncertainty and confusion down the line, as any disputes surrounding what is considered normal wear and tear on a rental property will likely be resolved before any issues arise. 

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With a clear record of any damages that occurred during the tenant's lease, landlords are able to easily recoup their costs through the landlord insurance policy, if applicable. For landlords wanting to make sure their investment is protected - a Condition Report is essential.

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The report is also used as a reference point when tenants move out of your property to determine if there was any damage caused in the property while they were living there.

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Completing a Condition Report can feel difficult and very time-consuming but a comprehensive property Condition Report protects both you and your tenant in the event of a dispute over damage or items missing from the property.

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Imagine you’ve ready to put your house back on the market after your latest tenants have moved out and you notice some major damage. Now, you have a potential dispute on your hands, but how do you work out who is responsible?

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That’s where the Condition Report comes in! It’s a simple solution that solves a lot of headaches when the time comes.

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A Condition Report is essentially a report card for the property. It lets you know what condition your rental is and whether there are any issues that could affect tenants' safety or comfort. 

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It can give you an overview of any problems they need to address before making your property available for rent. This ensures you’re up-to-date on general health and safety regulations and anything specific that might be required by local laws or landlord’s insurance policies. 

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Generally speaking, most states require you to complete the report at both the beginning and end of each tenancy however we also recommend that you complete them throughout the tenancy through Routine Inspections.

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A Routine Inspection is an inspection that is carried out at intervals throughout the tenancy to ensure that the property is being looked after. A condition report for these inspections should also be generated and kept on file to refer to.

The Condition Report should cover all the areas and rooms in your property no matter how small. There are standard report forms in each state you can follow.

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When completing the Condition Report, you need to include accurate details and descriptions of the property, common areas, and anything else included in the rental agreement like appliances or furniture. 

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You should also document any damage with photos indicating preexisting conditions and verify how much of the security deposit will be returned after moving out. You also ask tenants to sign off on the Condition Report so everyone is on the same page as far as expectations for cleanliness upon move-out. 

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Remember, it’s important to be comprehensive and detailed when completing these reports.

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See the links below to access the relevant forms for each Australian state.

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‍NSW

• NSW law requires a Condition Report to be completed by the tenant and landlord at the beginning and end of the tenancy.
• The standard Condition Report form is provided by NSW Fair Trading.

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QLD

• QLD law requires a Condition Report to be completed by the tenant and landlord at the beginning and end of the tenancy.
• The standard Condition Report form is provided by the Queensland Residential Tenancies Authority.

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VIC

• VIC law requires a Condition Report to be completed by the tenant and landlord at the beginning and end of the tenancy if the tenant pays a Rental Bond.
• The standard Condition Report form is provided by Consumer Affairs Victoria.

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ACT

• ACT law requires a Condition Report to be completed by the tenant and landlord at the beginning of the tenancy.
• The standard Condition Report form is provided by the ACT Tenants Union.

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SA

• Condition Reports are called ‘Inspection Sheets’ in South Australia. The landlord and tenant are required by law to complete the Inspection Sheet at the beginning and end of the tenancy.
• The standard Condition Report form is provided by South Australia Consumer and Business Services.

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WA‍

• WA law requires a Condition Report to be completed by the tenant and landlord at the beginning and end of the tenancy.
• The standard Condition Report form is provided by the WA Department of Commerce.

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NT

• NT Law requires a Condition Report to be completed by the tenant and landlord at the beginning and end of the tenancy.
• There is no standard form provided.

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TAS

• TAS law requires a Condition Report to be completed by the tenant and landlord at the beginning and end of the tenancy if the tenant pays a Bond or Security Deposit.
• The standard Condition Report form is provided by Tasmanian Consumer Affairs and Fair Trading.

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Not completing a Condition Report properly can be a costly mistake. If you fail to fill one out completely and accurately, then chances are you won't be able to receive the full reimbursements for any damages that may have occurred after moving in. 

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When filing, make sure that all areas of the residence have been documented and existing damages have been noted - even if they seem insignificant. This way, if the damage is found later on down the road, it can be properly evaluated to determine whether or not it happened while living in the space. 

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It's also important to remember that Condition Reports act as legal documents and both parties need to sign off on them. As always, double-check your work before signing off - there's no room for error here!

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