just how important are condition reports?

Condition reports, and in the context of this blog post, entry condition reports, are a tool used by owners and property managers alike to outline the condition of a property at the time in which a tenant takes occupation.

However, despite being such an important document, all too often these reports are left incomplete, unthorough, and lacking in important detail such as photos.

You’ve worked hard to purchase your investment property, and naturally preserving its good condition should be a priority for your property manager.

A condition report is critical in acting as an accurate representation of the condition of your property at the time in which a tenant takes occupation.

When a tenant moves out, and in the event that there is a dispute as to damage of the property, removal of fixtures/fittings, and the condition of items that would fall outside of general wear and tear, then it is necessary to have a document to rely upon that will substantiate your claim against the tenant’s bond.

From experience, it can be difficult to prove a claim against a tenant if there is insufficient detail contained within the entry condition report. All too often we come across an entry condition report that is heavily text-based, vague and without any specific comment on items of importance such as ovens, cooktops, range-hoods, showers (in particular areas where mould/soap scum can build up), and garages (where oil can leak from a car and damage the flooring).

In order to prudently prepare an entry condition report, it is necessary for a property manager to dedicate some time to undertaking it. At Banksia Property Agency, our reports are very thorough. A good report ranges anywhere between 70-100 pages, containing detailed notes of every room, its fixtures/fittings, and photos of every single nook and cranny to provide a comprehensive record as to the property’s condition.

Once the report is undertaken, it is very important to ensure the tenant is provided a copy, and signs each page in acceptance.

These types of detailed reports hold up well when making a claim against a tenant’s bond, as it is easy to provide a current image of the area under contention, and compare it against what was recorded at move-in. This can be seen as irrefutable evidence and more likely to deliver a favourable outcome should the case go to VCAT.

In our agency, we are empowered by great technology that allows our team to attend a property and prepare a detailed entry condition report with an easy-to-use app on our phones.