An entry condition report is a document that outlines the condition of a property at the beginning of a new tenancy (i.e. once a tenant enters the property).
In this guide, we cover everything you need to know about condition reports, how to do them and what you should expect.
What is an Entry Condition Report in Property Management?
A condition report is a document that records the condition of a rental property at the beginning of a residential tenancy agreement. The report typically includes a checklist to check in each area of the home with space to state or indicate the condition of the area, including whether or not it’s dirty or damaged. It is then used at the end of a tenancy to check the property is in a similar condition, to assess issues of wear and tear, as well as bond.
The condition report is a detailed record of the condition of the property, including fixtures, fittings, and appliances. It should include a description of any existing damage or wear and tear, such as scratches, dents, or stains. It should also include photographs of each room and any damage or issues that are identified.
The report should be completed based on a physical inspection of the property at the beginning of the tenancy agreement. In NSW, it is a legal requirement for the property manager or property owner (depending on whether you are renting privately or through a real estate) to provide a completed condition report to the tenant before they move in. The tenant will then need to carefully review the report and ensure that they agree with its contents before signing it. If they disagree with any of the information in the report, they should make a note of it and provide a copy to the landlord or agent.
According to NSW Fair Trading, tenants have 7 days from the move-in date to complete the condition report and return it to the real estate agency or landlord (who will make a copy for their records).
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Importance of Entry Condition Reports
This completed report is a crucial document for both the landlord and the tenant as it helps to avoid disputes over the condition of the property at the end of the tenancy. The report should be completed by the landlord or their agent and given to the tenant before they move in.
Having a condition report is essential for protecting the interests of both landlords and tenants. For landlords, an entry condition report provides evidence of the state of the property at the start of the tenancy. This helps to avoid disputes over damage to the property that may have occurred during the tenancy. For tenants, an entry condition report provides evidence that they are not responsible for any pre-existing damage to the property.
It is important to note that entry condition reports are not just a legal requirement, but also an important tool for property managers to ensure that properties are maintained to a high standard. By keeping detailed reports of each inspection, property managers can identify any issues that need to be addressed and take appropriate action to rectify them.
Components of an Entry Condition Report
An Entry Condition Report contains the following details:
The report must include the full name and contact information of the tenant(s) moving into the property, including the date the tenancy begins and ends. This information is necessary to identify the tenant(s) responsible for any damage to the property during the tenancy.
The report must include a detailed description of the property, including the address, type of property (e.g. house, unit, etc.), number of bedrooms, bathrooms, and other relevant details.
The report must include an inventory checklist of all the fixtures, fittings, and appliances in the property. This checklist should include items such as light fixtures, curtains, carpets, and kitchen appliances.
The report must include a detailed assessment of any existing damage to the property. This assessment should include details of the location and severity of the damage and whether it affects the functionality of any fixtures, fittings, or appliances. The assessment should also include details of any repairs or maintenance required to rectify the damage.
The report must include photographic evidence of the condition of the property at the beginning of the tenancy, including in the appendix to the report. This photographic evidence should be detailed and clear, showing any existing damage to the property and the condition of all fixtures, fittings, and appliances.
Procedure for Completing an Entry Condition Report
The process for completing a condition report involves:
The first step in completing a condition report is for the agent or owner to conduct an initial inspection of the property and document any existing damage, wear and tear, or other issues. The inspection should be conducted in a methodical and thorough manner, covering all areas of the property, including walls, floors, ceilings, doors, windows, and fixtures.
Once the initial inspection is complete, the landlord or agent will hand the report over to the tenant, who has a week from the move-in date to complete their own inspection of the property. It is essential to be as thorough as possible when documenting the property’s condition to ensure that there is no dispute over the condition of the property at the end of the tenancy.
Review and Signature
Once the condition report is complete, the landlord or agent should review the report with the tenant. Both parties should sign the report to acknowledge that they agree on the property’s condition. The landlord or agent should provide a copy of the report to the tenant, and both parties should keep a copy of the report for their records.
Common Mistakes to Avoid
When filling out an entry condition report, there are several common mistakes that can be made. These mistakes can lead to issues down the line, such as disputes between the tenant and landlord over damage to the property. Here are some of the most common mistakes to avoid:
Not Reviewing the Report
One of the biggest mistakes that can be made when filling out an entry condition report is not reviewing the report in detail. It’s important to take the time to inspect every part of the property, compare against the condition report as you do, and document any damage or issues that are present.
Not Taking Photos
Photos are an important part of the entry condition report, as they provide visual evidence of the property’s condition at the time of move-in. Not taking enough photos or not taking photos of all areas of the property can lead to disputes down the line. It is important to take photos of every room and every part of the property, including any damage or issues that are present.
Another common mistake is being too vague when describing an issue or damage – it’s important to be accurate when filling out the condition report. It is important to be as accurate as possible when filling out the report, as any inaccuracies can lead to disputes down the line.
Not Getting Signatures
Finally, not getting signatures from both the tenant and landlord can be a big mistake. Signatures are important because they show that both parties agree to the condition of the property at the time of move-in. Without signatures, there is no proof that the report was completed or that both parties agreed to the condition of the property.