What is a Property Condition Report

A property condition report is a very important step towards renting a home in Australia and must be completed before paying the bond amount. It’s a document that notes the condition of the property before it is let out and is compared directly with inspection and leaving reports (when vacating the property).

Property condition report is usually signed by both the reaelstate agent and the tenant or their representatives and may be used as evidence in any dispute about cleaning, damage, safety or missing items.

The property condition report contains, on a room-by-room basis, the exact contents and condition of the premises before being let out. The report also states if anything in/on/around the property damaged, broken or in poor condition, (eg. a cracked tile in the living room, visible cracks in the bathroom ceiling, stained carpets etc).

If possible, prospective tenants should take photos of the property before moving in to record its condition and send it as an email to the agent as a dated evidence before moving in.

Contents of a Property Condition Report

• Room-by-room assessment: The report typically includes a room-by-room breakdown, detailing the condition of each area, such as the kitchen, bathrooms, living spaces, bedrooms, and outdoor areas (e.g., garden, garage).
• Fixtures and fittings: It also notes the condition of appliances (e.g., fridge, oven), light fittings, windows, doors, plumbing fixtures, and flooring.
• Damage and wear: Any existing damage, stains, or wear-and-tear (such as scuff marks on walls, cracked tiles, or faulty plumbing) is noted in detail.
• Cleanliness: The cleanliness of the property at the time of the inspection is also documented, including whether the property was professionally cleaned or if certain areas require cleaning.
• Photographic Evidence: Many reports include photographs to document the condition of the property. These images provide clear evidence of the property’s state at the time of inspection and help avoid disputes about damage when the tenant moves out.

What Each Party must do:

In the context of a Property Condition Report (PCR), the roles of the real estate agent, landlord, and tenant are all important in ensuring that the report is accurate, fair, and comprehensive. Each party has different responsibilities when it comes to creating, reviewing, and acting upon the Property Condition Report.

Role of the Real Estate Agent

A real estate agent is typically appointed by the landlord to manage the rental property on their behalf. In relation to the Property Condition Report, the agent’s role includes the following responsibilities:

• Conducting Inspections
• Preparing the Report
• Coordinating with Both Parties
• Ensuring Compliance:
• Mediating Disputes

Role of the Landlord:

The landlord owns the property and has a vested interest in ensuring it is maintained in good condition. In relation to the Property Condition Report, the landlord’s role involves the following:

• Providing Instructions in completion of the initial report
• Reviewing the Report
• Addressing Damage
• Claiming Bond Deductions

Role of the Tenant:

The tenant occupies the property and is responsible for its care during the tenancy. Regarding the Property Condition Report, the tenant’s role includes:

• Reviewing the Report
• Signing the Report
• Maintaining the Property
• Return the Property in Similar Condition
• Lodging any disputes with the Report

The Property Condition Report protects both the landlord and the tenant. For the landlord, it ensures that any damage caused during the tenancy can be identified and potentially claimed against the security deposit. For the tenant, it provides evidence that the property was handed back in the same condition as it was received, aside from normal wear and tear.