Property Condition Reports

Is a Property Condition Report a Legal Requirement?

YES! It is a legal requirement for a real estate agent/landlord to complete this report and provide the tenant/s TWO copies of the Property Condition Report within 7 days of the tenant moving into the property.

What is Fair Wear & Tear?

Fair wear and tear is a general term for anything that occurs through ordinary use such as the carpet becoming worn in frequently used areas. Wilful and intentional damage, or damage caused by negligence, is not fair wear and tear.

How can I make sure I leave the property in the same condition to get my bond back?

Keep a copy of the Property Condition Report for your records and when you are getting ready to move/vacate, go through the report again to see what requires cleaning or weeding or repairing. Use the report as a guide. If there is any damage eg. Large chip to wall - patch and paint it! If the property looks better than when you moved in, it’s great for your future rental references.

Security Bonds

When a bond is paid for a property, it is a legal requirement for an agent or landlord to lodge the funds with the Bonds Administration. The Bonds Administration hold the money in trust until a request for disposal is submitted. By law, ALL bonds MUST be lodged with Bonds Administration.

What is a Property Condition Report?

A Property Condition Report (or what you will hear your property manager refer to as a ‘PCR’) is a detailed report on the condition of a particular property. This report covers the WHOLE premises including the house (room by room), the shed, gardens, and exterior of the property. It details the condition, cleanliness and working order of everything from light switches, floor coverings and walls to plants and pathways (and SO much more).

This Property Condition Report is given to tenants at the beginning of the tenancy AND is also used when a tenant vacates (at a Final Inspection) to ensure the premises is left in the same condition.

Usually, photos will also be taken at the same time the report is completed as a reference but cannot be substituted for an accurate description of the condition of the property. Photos are taken both with the original report and at the Final inspection and should be kept on file/record.

I received my Property Condition Report, now what do I do?

Once you have received your two copies, you have 7 days to go through the report and make any amendments (keep one copy for yourself and one to return to the landlord/agent). For example, the lounge room walls have the following comments: Walls painted cream, 1 x black scuff mark under light switch. But you have noticed a small chip under the window – WRITE IT DOWN! There is a section allocated for tenant comments. Be sure to return your amended copy back to the landlord/property manager within the 7 days! If your report isn’t returned within the 7 days, any comments added will be disregarded and your vacate (Final Inspection) will be completed against the original Property Condition Report (report provided when you moved in without tenants comments).

Why is a Property Condition Report so important?

A Property Condition Report is important because the original report is used to conduct a Final Inspection when the tenant vacates (to ensure the property is left in the same condition as per when the tenant moved in) and this determines if the whole bond is refunded to the tenant or further cleaning/repairs are required. It also covers the tenant to prove if any items were previously in poor or dirty condition when they moved into the property. It’s important because it is a safeguard for both parties involved!

 Below is an example of a Property Condition Report page for a Kitchen.