Ask any property manager what document causes the most disputes at end of tenancy and they'll all give you the same answer: the condition report. Done well, it's a quiet, boring piece of paperwork that nobody ever needs to look at again. Done poorly, it's the source of months of NCAT applications and bond disputes.
Here's how to make sure yours falls in the first category.
What condition reports are
In NSW, two condition reports bookend every tenancy:
- Entry condition report — completed at the start of the tenancy, documenting the state of the property when the tenant moves in
- Exit condition report — completed at the end, comparing the state at handback against the entry report
The agent or landlord prepares the entry report. The tenant has a right to add comments, mark disagreements, and sign off on it. The exit report is then matched against it to determine whether anything has changed beyond fair wear and tear.
Why the entry report is the one that matters
By far the most important of the two. Six, twelve, twenty-four months after move-in, nobody remembers if that scuff on the skirting was already there. The entry report does. It's the baseline that every claim is measured against.
If the entry report says "small chip on bench" and the exit report says "large chip on bench", the difference is what's claimable. If the entry report doesn't mention the chip at all, you've got a problem.
Tips for tenants filling it out
- Don't rush. Take your time on move-in day. Walk every room with the report in hand.
- Photograph everything. Date-stamped photos beat written descriptions every time. Get them off your phone and into cloud storage so they don't disappear.
- Be specific. "Mark on wall" is useless. "20cm scuff on east wall of bedroom 2, near light switch, 1.2m up" is what you want.
- Cover the obvious things. Carpets, bench tops, window screens, door handles, light fittings, blinds, taps, paint condition.
- Submit it back within the deadline. In NSW that's seven days from move-in. Late doesn't necessarily disqualify it but it weakens your position.
Tips for landlords / agents preparing it
- Make it thorough. A two-page entry report on a four-bedroom home isn't going to hold up at NCAT.
- Include photos. Many of us run digital condition reports now — they're far better than paper.
- Don't gloss over existing issues. Recording an existing crack in the cornice protects everyone. Pretending it's not there until it expands later doesn't.
At the exit
The exit report is essentially "did anything change beyond fair wear and tear?" The answer depends entirely on how good the entry report was. Tenants who took the entry report seriously sail through their bond return. Tenants who didn't get into long arguments about who caused what.
A note from the management side
At Hunter PM, we treat condition reports as the foundation of every tenancy. Our entry reports are detailed and photo-rich. We strongly encourage tenants to engage properly with them on the way in — it's the easiest investment you'll ever make in your bond.