Property Condition Report: What It Is and Why It Matters for Landlords and Tenants

A property condition report document is an essential written record that details the general state and condition of a rental property at the beginning of a residential tenancy agreement. It lists the condition of each room, surface, fixture, and fitting, so there is a clear reference point before a tenant moves in under the tenancy agreement. In most Australian states, this report is a legal requirement.

For property owners and landlords, a rental property condition report helps protect the investment property and reduce the risk of bond disputes. For tenants, it safeguards their bond and ensures they are not held responsible for pre-existing damage. Without a detailed and accurate report, disputes at the end of a lease can become stressful, costly, and complicated.

This guide explains what a condition report document includes, why it matters under Australian residential tenancies laws, how to complete one properly with as much detail as possible, and how it supports bond and landlord insurance claims.

What Is a Property Condition Report Document?

A property condition report document is a written record of the physical condition and general state of a rental property at the start of a tenancy. It describes each room, fixture, fitting, and appliance in simple and clear terms. The report creates the official record that both the landlord or property manager and the tenant rely on when the tenancy begins and when the lease ends.

In all states and territories of Australia, the property owner or managing agent must provide an entry condition report at the beginning of the tenancy. The tenant reviews the report, adds notes if needed, and returns one completed copy signed within the required timeframe, often seven days. This step gives both you and the tenant a clear agreement on the property’s condition from day one.

However, the exact rules can vary by state. In NSW, QLD and VIC, tenants generally have seven days to review and return the report after moving in or receiving it. In WA, the landlord or property manager must provide the property condition report within seven days of the tenant moving in. In SA, the landlord must provide two copies, or one electronic copy if signed and delivered electronically, before or at the start of the tenancy.

An entry condition report is not the same as a routine inspection or periodic property inspection. The entry report sets the starting condition. Routine inspections take place during the tenancy and check the general condition and care of the property. They do not replace the entry report.

At the end of the lease, an exit condition report is completed and compared to the original entry condition report. Any differences may affect how the bond is handled.

A strong condition report should:

• Use clear and simple language
• Avoid vague terms
• Note any minor damage, marks, stains, or faults
• Include dated photographs

When done properly, a residential property condition report protects both sides and reduces the risk of disputes over missing items or damage caused during the tenancy.

State or Territory	When the Report Is Provided	Tenant Review Timeframe	Key Note
NSW	At the start of the tenancy	Usually 7 days	Tenant should review, amend and return the report
QLD	At the start of the tenancy	Usually 7 days	Report is compared with the exit condition report
VIC	At the start of the tenancy	Usually 7 days	Photos can help support the written record
WA	Within 7 days of the tenant moving in	Timeframe varies by process	Landlord or agent must provide the report
SA	Before or at the start of the tenancy	As required under local rules	Two copies, or one electronic copy if signed electronically

Why Is a Property Condition Report Important?

A property condition report document helps manage risk in a rental property. It protects the landlord and tenant alike by reducing conflict by removing any doubt as to the pre and post-rental condition of the property, and supports compliance with tenancy laws.

Why It Matters for Landlords

For landlords and property managers, a rental property condition report protects the investment property. It shows the state of the property before the tenant moves in. If damage beyond normal wear and tear occurs, the landlord can compare the exit report with the entry report to see what changed.

This report also supports bond claims. If damage goes beyond fair wear and tear, evidence is needed to show it was not there at the start of the tenancy and happened during the lease.

This includes showing what the property looked like before, what has changed, and how serious the damage is. The condition report, along with clear notes and dated photos, provides this proof and helps decide if money can be claimed from the bond.

It can also support landlord insurance claims. Insurers often ask for evidence of the property’s condition at the start of the tenancy. A clear entry report with dated photos strengthens the claim.

In simple terms, the report protects income and reduces legal risk for the property owner.

Why It Matters for Tenants

For tenants, the condition report protects their bond. A property may already have small marks, minor damage, or signs of normal wear. If these are not recorded, the tenant may be blamed later.

By checking and updating the report within the allowed timeframe, tenants can make sure it reflects the true condition of the property.

The report also builds trust. Both parties rely on the same record, which reduces confusion at the end of the lease.

Is a Condition Report Legally Required in Australia?

In all Australian states and territories, a property condition report document is required at the start of a residential tenancy agreement. While rules vary slightly, the main idea is the same. The landlord or property manager must provide a written entry report when the tenant moves in.

The tenant usually has a specified number of days, often seven days, to review and return the report. If the tenant does not respond in time, the original report may stand as the agreed record.

Tenancy laws treat the condition report as important evidence in bond disputes. At the end of the tenancy, the entry report is compared to the exit report. If the landlord claims part of the bond for damage, they must show that the issue was not present at the start.

If a landlord does not provide a proper entry report, it may weaken their position in a dispute.

The report does not replace other landlords’ responsibilities. Landlords must still keep the property in good condition and repair. Tenants must still take reasonable care. The condition report simply records facts so they can be checked later.

What Should Be Included in a Property Condition Report Checklist?

A condition report document should give a clear, room-by-room record of the property’s condition and property details. The more detail included, the more useful the report will be later.

Area	Items to Check	Examples of Notes to Include
Living areas and bedrooms	Walls, floors, carpets, windows, blinds, doors and light fittings	Marks, dents, stains, loose handles, cracked glass
Kitchen	Benchtops, cupboards, oven, cooktop, sink, taps and dishwasher	Burns, chips, rust, leaks, broken seals
Bathroom and toilet	Shower, tiles, grout, vanity, mirror, exhaust fan and leaks	Mould, cracked tiles, water damage, loose fittings
Laundry	Taps, trough, cupboards, flooring and ventilation	Leaks, rust, stains, damaged flooring
Exterior areas	Garage, gates, fences, lawns, gardens, outdoor taps and storage	Broken locks, damaged fencing, overgrown areas

Interior Areas

For each room, record the condition of:

• Walls and ceilings
• Floors and carpets
• Doors and locks
• Windows and blinds
• Light fittings and power points

Use simple and specific descriptions. For example, write “small scratch near window” instead of “wall good”.

Poor Wording	Better Wording
Wall good	Small paint chip near bedroom window
Carpet okay	Light stain near wardrobe door
Bathroom clean	Minor mould in shower grout near drain
Kitchen fine	Scratch on benchtop beside sink
Door damaged	Dent on lower section of internal bedroom door

Kitchen and Laundry

Include:

• Benchtops and cupboards
• Oven and cooktop
• Dishwasher
• Sink and taps
• Laundry fittings

Note any stains, rust, faults, or minor damage.

Bathrooms and Toilets

Record:

• Shower and tiles
• Grout condition
• Vanity and mirror
• Exhaust fan
• Any leaks

Exterior and Outdoor Areas

Do not forget:

• Garage or carport
• Fences and gates
• Gardens and lawns
• Outdoor taps
• Storage areas

Photos and Supporting Evidence

A strong rental property condition report should include dated photographs. Photos should clearly show any existing damage, marks, or minor damage. Digital reports make it easier to store and manage these records.

Clear photos help support bond and insurance claims if damage occurs.

Clarity and Consistency

Avoid vague wording. Use clear and consistent terms throughout the report. This makes comparisons easier at the end of the tenancy.

How to Complete a Property Condition Report Properly

A property condition report document should be completed with care and a high level of detail, as an incomplete or unclear report can lead to disputes later.

1. Inspect the Property Carefully Work through the property in a logical order. Each room should be checked thoroughly, including fixtures, fittings, and appliances, during the inspection.

2. Use Clear and Specific Descriptions Avoid vague or general wording. Each item should be described accurately to reflect its actual condition.

3. Take Dated Photographs Include both wide-angle and close-up images. Photographs should be clear, well-lit, and dated to support the written report.

4. Provide the Report Promptly The report should be issued at the start of the tenancy. A copy is typically reviewed, completed if required, and returned within the applicable legal timeframe, which is often around seven days.

5. Keep Copies Secure Signed copies should be retained by all relevant parties. Storing digital backups is recommended to ensure the document remains accessible if needed later.

Common Mistakes to Avoid in a Property Condition Report Document

Several common errors can reduce the effectiveness of a condition report and increase the risk of disputes.

These include:

• Using unclear or vague language that does not accurately describe the condition
• Failing to include supporting photographs as evidence
• Rushing the inspection process and missing important details
• Overlooking additional comments or amendments made during the review process
• Confusing routine inspections with entry condition reports
• Misplacing or failing to retain the signed document

Avoiding these issues helps ensure the report remains accurate, reliable, and suitable as evidence if required.

Property Condition Report vs Routine Inspection: What Is the Difference?

A condition report records the property’s condition at the start and end of a tenancy. A routine inspection checks the property during the lease.

The entry report sets the baseline. Routine inspections monitor care and maintenance.

Only the condition report is used to compare the start and end condition for bond purposes. A routine inspection cannot replace it.

Feature	Condition Report	Routine Inspection
Main purpose	Records the property’s condition at the start and end of a tenancy	Checks how the property is being maintained during the tenancy
Timing	Completed at entry and exit	Completed during the lease
Used for bond disputes	Yes	Usually not as the main evidence
Focus	Existing condition, damage, fixtures and fittings	Cleanliness, maintenance issues and general care
Replaces the other?	No	No

How Condition Reports Support Bond and Insurance Claims

At the end of the tenancy, the exit report is compared with the entry condition report. If damage is found, the landlord must show it was not present at the start. The condition report document provides that important evidence.

If the damage is serious, landlord insurance may be triggered and your policy may depending on the circumstances of the claim respond, depending on the policy. Insurers often ask for proof of the property’s condition at the start of the tenancy. A clear report with dated photos supports the claim.

A common condition of most if not all, Landlord’s Insurance policies is that incoming and outgoing inspection reports are provided to the insurer in order for them to assess the claim; failure to provide these will more often than not result in your claim being reduced or denied.

Good records reduce risk and protect financial outcomes.