What should your ingoing condition report look like?
What should your property condition report look like?
Property condition reports are an important part of keeping accurate records about your investment properties. These reports are important as, while allowing for fair wear and tear, it provides all parties with a record of the property’s condition to make property maintenance and dispute resolution more straightforward. This article outlines what should be included in your property condition report to ensure it covers everything.
Start with the entry condition report
An entry condition report should include the working condition of all appliances, flooring, walls, doors, windows, and other parts of the property. Any existing damage should be noted so it’s clear that the new tenants did not cause it. This may include things such as marks and dents on walls, carpet, kitchen benches and other surfaces. Once the landlord or property manager has completed the entry condition report, the tenant will then need to complete the document by comparing the condition of the property when they move into the landlord’s or property manager’s notes on the entry condition report.
When new tenants move into a property, they have 14 days to complete and return the entry condition report.
Complete an exit condition report at the end of each tenancy agreement
As the name implies, the exit condition report is completed when the tenant vacates the rental property. The exit condition report compares the property's condition at the end of the tenancy agreement to when the tenant moved in. Any new damage that hasn’t been documented on the entry condition report is deemed damage that happened in the most recent tenancy.
Items to include in property condition reports
It’s important to be thorough in property condition reports by following a list of all items to check room by room. Your property condition report should include a space to check and comment on the condition of all surfaces, fixtures and fittings. This is done most efficiently by splitting the report into rooms, including the property entry, loungeroom and living areas, kitchen, bedrooms, ensuite bathrooms, toilet, laundry, and outdoor areas. Other general items that should be included are smoke alarms, security systems, hot water systems, and air conditioning units or heaters.
Establishing a thorough property condition reporting process provides documentation to determine who is liable for damage if it occurs. An experienced property manager knows how to ensure your property condition reports are thorough, your property remains in good condition throughout the tenancy, and any potential disputes are resolved efficiently.
Remember, this article is general in nature and is not financial or legal advice. Please consult your professional financial and legal advisors before making any decisions for yourself.