Property condition reports

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Property condition reports are an important element of any residential tenancy, as they outline the current condition of the property at the start and end of a tenancy. A property condition report can also assist in resolving disputes about damage.

The mandatory Form 1 Property Condition Report sets out the MINIMUM content to be included in each report.

The reports set down, on a room-by-room basis, the exact contents and condition of the property, and should state if anything in/on/around the property is broken or in poor condition, (e.g. a torn flyscreen in bedroom one; crack along left side of northern wall in kitchen; circular brown stain on carpet in the lounge; broken door handle in the bathroom).

The process for completing a property condition report and some tips for lessors and tenants, are outlined below.

Required steps for property condition reports

  1. The lessor inspects the property, prepares a property condition report and provides the tenant with two copies of the report within seven days of the tenant moving into the property.
  2. If the tenant disagrees with the condition stated within the property condition report, they have seven days from receiving the report to note their changes or additions within both copies of the report, and return one copy to the lessor.
  3. If the tenant does not provide the lessor with an amended copy of the property condition report within the seven days, the tenant is taken to agree with the condition of the property stated within the report.
  4. As soon as possible, but no later than 14 days after a tenancy has been terminated, the lessor must inspect the property, prepare a property condition report and provide a copy to the tenant.
  5. A lessor must provide a tenant with a reasonable opportunity to be present at the final inspection. 

Tips for lessors

  • Inspect the property as close to the start date of the tenancy as possible when preparing the initial property condition report. This will mean the report contains the most accurate description and information.
  • Take photographs of everything and everywhere at the property and include them as part of the property condition report.    
  • Sign and date both copies of the property condition report.
  • Provide the ingoing and outgoing property condition reports within the respective timeframes. Failing to meet those timeframes can be a breach of your legal obligations.
  • Review any amendments your tenant makes when they return the property condition report. Some of the changes may require you to carry out maintenance or repairs – e.g. kitchen tap drips, pool gate does not lock into place etc.
  • If your tenant makes amendments that you do not agree with or understand, consider contacting them to arrange a meeting at the property to go through those areas of the report together. It is better to resolve any areas of contention sooner rather than later.  

Tips for tenants

  • Stick to the timeframe for amending and returning a property condition report to your lessor.  A lessor is not required to accept an amended report if you return it outside the seven day period.
  • Start comparing the property’s condition stated within the property condition report to the condition you received the property in, as soon as you receive the report.
  • Inspect everything at the property and all areas of the property. If the property includes appliances or furnishings that you were not intending to use, you should still check their visual and functional condition – e.g. does the dishwasher/oven work? Are there any stains on or under a provided bed/couch?
  • If you are making amendments to the property condition report, take photographs and include them as part of the amended report you return to your lessor.
  • While you should note any items that need to be fixed on the property condition report, you should also advise your lessor of the issue separately, so they can arrange any necessary maintenance or repairs.
  • Sign and date both copies of the property condition report.
  • If you do not receive the opening or closing property condition reports, contact Consumer Protection on 1300 304 054 for guidance on your options. 
  • You have the right to be present at the final inspection. Try to attend the inspection if you can.

The proper procedures for providing the property condition reports must be followed to avoid any dispute about the reports not being received or timeframes not being followed.  How to serve notice correctly is covered in more detail in using rental notices and counting days.

It is important to be aware of what is a tenant's or lessor's responsibility for any maintenance and repairs.  

Property condition report

This is a mandatory form. The information within this standard form is not to be deleted, however items or information may be added.  A word version is available. 

Property  condition report 

 

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