Purpose of Condition Reports
Condition Reports document the state of repair and condition of the rental premises at the beginning and end of the tenancy. If disputes arise regarding damage or disrepair, these reports serve as evidence for the Tribunal or Court to determine liability, which is crucial for resolving issues related to the Rental Bond or compensation to the landlord.
Completion of Condition Reports
The tenant and landlord must complete a Condition Report immediately before and after the tenancy agreement. Both parties should retain at least one copy of the report during the tenancy. The standard form from NSW Fair Trading can be downloaded for free and must be signed by both the tenant and landlord at the start and end of the tenancy. Although required by law, the tenancy agreement remains valid even if the report is not completed.
Ingoing Condition Report
The landlord must complete this report before or when the residential tenancy agreement is given to the tenant for signing. The landlord should thoroughly inspect the premises to ensure accuracy. The tenant should receive two copies of the report before signing the agreement. The tenant must then review, sign, and return one copy to the landlord within seven days. Both parties should keep a copy for their records. It is crucial that this report be completed as close to the beginning of the tenancy as possible for it to hold weight in any disputes.
Outgoing Condition Report
This report is completed at the end of the tenancy or shortly thereafter. Both the tenant and landlord should be present at the premises for the inspection. The same standard form is used for both ingoing and outgoing reports. The tenant should carefully review the report and note any disagreements. If the tenant disagrees with parts of the landlord's assessment, the Tribunal or Court will not automatically consider the report accurate in those areas. If the tenant is given a reasonable opportunity to attend but does not, the landlord may complete the report alone. However, it is in both parties' best interest to be present to avoid confusion and expedite dispute resolution.
Additional Information and Modifications
Both tenants and landlords can attach additional information to the standard form Condition Report to provide a more detailed account of the premises' condition. Photos of the premises at the beginning and end of the tenancy are a good practice. Any additional documentation should be agreed upon by both parties as an accurate record.
Condition Reports in Co-tenancies
In co-tenancy arrangements, Condition Reports help attribute liability for any damage to individual tenants. A new report should be completed whenever there is a change in co-tenants to accurately assign responsibility for any damage.
Condition Report for Renewed Tenancies
If a tenancy agreement is renewed for the same property with the same tenants and landlord, a new Condition Report is not necessary. The original Ingoing Condition Report applies to the renewed agreement. However, an Outgoing Condition Report will still be required at the end of the renewed tenancy.