What Is a Property Condition Report & Why Does It Matter?

What Is a Property Condition Report & Why Does It Matter?

Did you know?

The majority of renter complaints are lodged when renters are moving out.

And a lot of the time it comes down to something that could have easily been avoided.

When renters move into a rental property, it’s easy for them to get caught up in the excitement of it all. They can’t wait to unpack all their boxes and start making memories in this new space.

But before any of that, there’s one thing they absolutely need to do: complete the in-going condition report – something a surprising number of renters put off or forget (up to 60%)! Other than the lease, it is the single most important document for renters & residential rental providers as it’s a legal agreement on the condition of the property.

What does a condition report consist of?

A condition report is a record of a property’s condition when a rental agreement (lease) is signed.

Anything dirty, damaged, or not working should be in the condition report. It should include every room, its fittings and fixtures and everything indoors and outdoors. Text, images, and sometimes videos too are used for this report.

What are the rules?

Legally, property managers need to give copies of the condition report to the renter within seven days of them taking possession of the rental property.

The renter is allowed 5 business days to check the details completed by the property manager on the report to confirm or disagree with those details. The renter should note any areas of disagreement with the condition report in the appropriate section of the document. If not completed by the renter, the property’s condition will be deemed to be accurate at the time of the property manager’s completion.

When a renter moves out, an end of lease inspection is conducted, and the condition of the property will be compared to that of the original condition report. Property managers will check for any damage (aside from fair wear and tear) and if nothing major is found, return the bond to the renter.

Why is a condition report essential if you’re a renter?

By taking the time to walk around your new rental and document any damages or issues prior to signing a rental agreement, you can avoid disputes over the condition of a property when you move out.

It might feel like a chore, but it’s an essential part of protecting yourself as a renter. You don’t want to be held responsible for fixing issues at the end of your lease that you were not responsible for. Going over everything with a fine-tooth comb means that both you and your rental provider are on the same page when it comes to the property’s starting condition, and ensures there won’t be any disputes later down the line.

Why is a condition report essential if you’re a residential rental provider?

As the owner, condition reports help you see exactly where your property stands—what’s in good shape and what’s damaged. They can be the deciding factor in your being able to claim any damages or cleaning at the end of the rental period.

Property managers can also use it to identify what improvements you need to keep your property in top shape, maintain or increase its value, and outshine its competitors in the rental market.