A property condition report catalogues the state of a building at a given time - whether it's prior to new tenants inhabiting the premises or before a major construction project commences.
Not just restricted to your rental property, a property condition report must also be conducted on adjacent properties before undertaking any building work to protect all relevant parties in the event damage is done.
A property condition report is intended to reduce the risk of conflict between you, your tenants, and your neighbours. Conflicts that, without the report, could easily escalate to expensive legal proceedings.
Many professional property consultants offer condition report services. Typically this includes:
A written and photographic report
Issuing the report on the landlord's behalf to tenants and/or neighbours
Liaising with relevant parties before and after and work takes place as and when required
If you do opt to outsource the report, costs will vary depending on the size of your rental property, location, and the complexity of any construction projects.
For new leases, most Australian states and territories offer a standard condition report template. The relevant authorities may also stipulate the time frame in which the landlord or tenant must lodge the form after a new lease commences in order to claim the full bond back at the end of the tenancy.
If a bond is taken, it's compulsory to complete a condition report. In cases when a bond it not taken, completing a condition report is still advisable.
Photographs are an excellent way to document the condition of the property when a tenant first moves in. It's worthwhile ensuring all involved parties have signed copies of the photos from the outset. In the event an issue arises, they won't be able to plead ignorance or question the authenticity of the images.
The information contained in TenancyCheck.com.au website is general information only and does not constitute legal, financial or compliance advice. As the laws relating to tenancy agreements may have changed we recommend you check with the relevant State or Territory government department. We also recommend that you obtain your own independent legal advice about matters relating to landlord obligations, tenant rights and any legal disputes you may have with a tenant(s).