Last updated September 1, 2022
What is a Condition Report?
A Condition Report records a rental property's condition at the start and end of a tenancy. Condition Reports help track property damage, ensuring tenants aren’t blamed for pre-existing damage and are only held responsible for the issues they cause.
In all Australian states and territories, Condition Reports are required by law for most circumstances. Therefore, landlords and property managers must initiate the use of Condition Reports every time they begin a Tenancy Agreement with a new tenant.
A Condition Report may also be known as an:
- Entry Condition Report
- Exit Condition Report
- Property Condition Report
- Rental Condition Report
- Ingoing or outgoing Condition Report
- Rental inspection report
- Inspection sheet
What is the purpose of Condition Reports?
The purpose of a Condition Report is to create a written record of any property damage before a tenant moves in and again when they move out so the landlord can track any tenant-caused damage. Using a Condition Report guarantees that tenants are only held responsible for any damage they cause.
If a legal dispute arises between a landlord and their tenant regarding property damage, Condition Reports may be used as evidence by a state or territorial court to determine liability. Liability affects whether a landlord can use a tenant’s security deposit (bond) or demand further compensation from the tenant.
Who benefits from Condition Reports?
Condition Reports are required by Australian law because they are beneficial tools that protect both landlords and tenants.
Landlords can benefit from Condition Reports because, when used properly, they can help justify using the tenant’s security deposit to cover repair costs. To use a security deposit to cover tenant-caused damage, a landlord must prove the rental property’s state before the tenant moves in and after they leave. The best way to prove this is by using a Condition Report.
A Condition Report can also benefit a tenant because it helps ensure that they are not held responsible for pre-existing damage they did not cause.
Are Condition Reports legally required?
In Australia, states and territories require Condition Reports by law. The mandatory use of Condition Reports is governed by the residential tenancy acts of each state and territory. The only exception to this requirement is Tasmania which does not require a Condition Report if there isn’t a security deposit (bond).
Therefore, to ensure they are complying with regulations, landlords must use Condition Reports when a tenant moves in and out of a rental property.
Does a tenant need to be involved with the Condition Report?
Yes. Both landlords and tenants fill out Condition Reports by assessing the state of their rental property. The participation of both parties ensures that the assessment of the rental property’s state is accurate and fair.
Generally, a landlord fills out the form first. After the landlord completes the report, the tenant will receive one or two copies and be able to dispute any item and include additional concerns.
How to complete Condition Reports
To complete a Condition Report, landlords inspect a property and record its condition by indicating whether each room feature is clean, undamaged, and working by placing "yes" or "no" in the appropriate column. Property damage may include things like:
- Scratches, holes, chipped paint, and marks on walls and ceilings
- Damaged windowsills, doors, or frames
- Stained or marked floors, including carpets
- Broken or poorly functioning appliances or fixtures
Where necessary, landlords can write additional comments. The landlord keeps one copy of the completed Condition Report and gives the other(s) to the tenant.
Next, the tenant inspects the property and indicates their agreement or disagreement with the landlord’s evaluations. Where necessary, tenants can write additional comments. The tenant keeps one copy of the completed Condition Report and returns the other to the landlord.
At the end of a tenancy, both the landlord and tenant complete the copy of the report that they retained by indicating the condition of the premises. This should be done in the presence of the other party unless the other party has been given a reasonable opportunity to be present and has not attended the inspection.
When it comes to the number of copies that have to be used, Australian states and territories have different requirements.
Condition Reports by state and territory
Australian Capital Territory (ACT)
In the Australian Capital Territory (ACT), a landlord must provide their tenant with a Condition Report within one day of the tenant taking possession of a rental property. Within two weeks of moving in, the tenant should inspect the property, fill in their part of the form, and return a copy to the landlord or agent.
New South Wales (NSW)
In New South Wales, the landlord must provide the tenant with two copies of the entry Condition Report prior to the tenant signing the Tenancy Agreement. The tenant must return one copy of the completed Condition Report to the landlord within seven days after receiving it. When the tenancy is ending, the Condition Report must be filled out in the presence of both the landlord and the tenant.
Northern Territory
In the Northern Territory, landlords should give their tenants a copy of the completed and signed Condition Report within three business days of starting their tenancy. Tenants must complete the Condition Report and return a copy to their landlord within five business days of moving in.
Queensland
We do not offer a Condition Report for Queensland because the Residential Tenancies Authority (RTA) requires the use of their form. If you need to create a Condition Report in Queensland, use the entry or exit Condition Reports provided by the RTA.
South Australia
In South Australia, landlords should give their tenants two copies of the completed and signed Condition Report as soon as possible after the start of the tenancy. There is no time specified in which the tenant must complete the Condition Report and return one of the copies to their landlord. That being said, it is best to complete it as soon as possible.
Tasmania
In Tasmania, if there is a security deposit (bond), landlords must give their tenants two copies of the completed Condition Report before or when the tenant moves in. The tenant can complete and sign one copy of the Condition Report and return it to the landlord within two days of receiving it.
If there is no security deposit, there is no requirement for a Condition Report. However, it is still advisable to use one.
Victoria
In Victoria, landlords must give their tenants two copies of the completed and signed Condition Report before the start of the tenancy. Tenants must complete the Condition Report and return a copy to their landlord within five business days of moving in.
Western Australia
In Western Australia, landlords must provide tenants with two copies of the completed Condition Report within seven days of the tenant moving into the rental property. Tenants must complete the Condition Report and return a copy to their landlord within seven days after receiving the two copies.
There is an additional requirement to complete a Condition Report at the end of a tenancy. It must be done as soon as practicable, to a maximum of 14 days after the termination of the tenancy. In addition, the tenant must be given a reasonable opportunity to be present for the inspection.
What is included in a Condition Report?
Condition Reports include various sections for you to inspect the following spaces and features of a rental property:
- Entry area
- Lounge room
- Dining room
- Kitchen
- Bedroom(s)
- Bathroom(s)
- Laundry room
- Exterior features
- Security features
You can specify the condition of doors, doorway frames, door locks, smoke alarms, walls, windows, window screens, ceilings, lights, blinds, curtains, skirting boards, floor coverings, electrical power points, and more.
In the kitchen section, you can specify the condition of cupboards, bench tops, tiling, sinks, taps, stove tops, ovens, exhaust fans, dishwashers, and more.
For bathrooms, you can specify the condition of showers, bathtubs, wash basins, mirrors, vanities, towel rails, and more.
You can also specify the condition of miscellaneous features, such as heating and air conditioning systems, staircases, balconies, porches, swimming pools, gates, fences, lawns, and more.
