As the name suggests, a condition report records the state and condition of the entire property, both inside and outside the property. From recording the state of door frames and skirting boards, to walls and light fittings, it should detail the exact condition of each room. It even includes the condition of fixtures and fittings, such as clothes lines, toilet roll holders, ceiling fans and even the inside of ovens.

As additional evidence of what state the property is in, photographs are also usually included.

Generally, a condition report is completed at three points in the tenancy:

• At the start of the tenancy

Often referred to as the Entry Report, this condition report serves as a record of the state of the property is before the tenant moves in; that way there are no discrepancies on the condition of the property when the tenant moves out. For instance, if there is damage caused by picture hooks.

The report acts as a reference point in determining whether the Bond should be paid out, or if there is any damage and compensation is due to the property owner.

This report is an essential part of the lease agreement and should be given to tenants at the beginning of their tenancy.

• Routine inspections

To ensure the property is maintained to an acceptable level throughout the tenancy, a condition report is completed at every inspection. The main purpose of this is to highlight any potential repairs which may need doing; these should be attended to promptly by the landlord to prevent conditions from worsening. For example, leaky taps or gutters.

It will also note general wear and tear on the property, and if it’s been a long tenancy, the landlord may consider upgrading their property, such as by redecorating a room.

• At the end of the tenancy

Known as an Exit Report, as the name suggest, this report serves as a reference for when tenants move out of your property. Comparing it to the Entry Report, it will show if there is any damage caused in the property while the tenant is living there, and in doing so, is essential in determining whether the Bond should be paid out, or if a compensation is due to the property owner.

Is a Condition Report required as part of a tenancy renewal?

In NSW, a new Condition Report is not required if a tenancy agreement is renewed for the same property, and the tenants and landlord remain the same.

Instead, the original Entry Condition Report from the first tenancy agreement is transferred to the renewed tenancy. However, an Exit Condition Report will still need to be completed at the end of the second tenancy, if it is not renewed again.

How a property manager can help with condition reports

Having been property managers for nearly 50 years, we know exactly what should be included, what to look for when reviewing the property, and what tricks and hacks some tenants do to try to conceal damage. That said, because we screen prospective tenants, generally, they leave the property in near-perfect condition, and in some cases, tenants have even left the property in a better state than when they moved in.

(NB it should be noted, generally a landlord cannot withhold a Bond for general wear and tear, such as a worn carpet.)

From finding tenants, screening them, ensuring they pay the rent on time and are properly looking after your property, to arranging tradespeople to carry out essential repairs and maintenance, we manage every aspect of your property. Plus our detailed monthly and end-of-year financial reports help with budgeting and end of year tax returns.

Our experienced team will also suggest ways in which you can improve your property; that way you can maximise rental return and get the best return of investment from your property.

We’d love you to get in touch to tell you more, and demonstrate how our property management services can make your landlord experience easy.

Drop into the Cardiff office or give us a call on 02 4956 9777. Or send us an email at mail@newcastlepropertymanagement.com.au – we’ve helped many people realise their financial dreams through property and we’re keen to help you.