The entry condition report is one of the most important documents you’ll encounter when entering into a new tenancy agreement.
The document aims to protect two things:
- The landlord’s property
- The tenant’s security deposit
But how does the document achieve this? Understanding what an entry condition report is, how it should be completed, and why it’s essential can help ensure a smooth tenancy experience. Let’s explore:
Entry Condition Reports Explained
An entry condition report is a document that records the condition of the property before a tenant moves in.
It includes detailed reports on the state of things like:
- The walls
- The floors
- The ceilings
- The windows
- The fixtures and fittings
- Any other distinctive features of each room
This report is vital as it sets the benchmark against which the property’s condition will be compared when the tenancy ends. It is the reference point both parties will refer back to.
- For landlords or property managers -This report provides evidence of the property’s condition at the start of the lease.
- For tenants – It ensures they are not held responsible for any damage that existed before they moved in.
In this way, the signed and completed report acts as a protective measure for both parties. In theory, it makes it easier to resolve disputes about property damage or repairs when the lease ends. Instead of arguing over the condition of the property at the start of the lease, they have an official document to refer to.
Components of an Entry Condition Report
The report is split into different sections. Each section addressed different elements of the property for a thorough itemisation.
- Room-by-room condition—This section provides what we already mentioned about each room—a detailed description of each room’s condition, including the state of the walls, floors, ceilings, doors, windows, and fixtures. It is important to make special note of any existing damage. For example, if there’s a crack or a stain somewhere, it should be noted. When we speak of fixtures and fittings, we are speaking of light fixtures, appliances, and any plumbing. Again, any damage or wear and tear should be carefully recorded.
- Outside areas—The condition of outdoor spaces like gardens, balconies, and garages should also be documented in the report.
- Photographic evidence – It’s crucial to include photos as part of the completed report. Photographs provide a visual record that complements the written descriptions. Again, where words can be subjective, the accompanying photos make it easier to verify the property’s condition at a later date.
- Tenant’s comments -Tenants can add their own comments to the report if they disagree with any of the landlord’s or property manager’s observations. This is crucial for ensuring the report accurately reflects the property’s condition. For example, the property manager may report the bathroom as having no issues to comment on. However, the tenant disagrees because they notice an area of mould. It’s important for the tenant to register this within the report so they don’t get blamed for this later on.
The Process of Completing an Entry Condition Report
So, who actually creates the report? It is a collaborative process between the property manager and the tenant. But how does this back-and-forth happen in practice?
- Initial inspection – The property manager does their thorough inspection of the property. They note the condition of each room, fixture, and fitting (as discussed). This initial inspection forms the foundation of the report.
- Tenant’s review – After the property manager completes the report, the tenant has a reasonable opportunity to review it. The tenant should walk through the property and compare it with the report, noting any discrepancies or areas of concern. The tenant needs to be on the lookout as this is their chance to add comments.
- Signing the report – Once both parties are happy with the report, they can sign it. This signed report becomes an official record of the property’s condition at the start of the tenancy.
- Distribution of copies – The tenant and the landlord (or property manager) each keep a copy of the completed report. This ensures that both parties have access to the document throughout the tenancy (they can refer to it if an issue arises).
What to Do If a Tenant Disagrees with the Entry Condition Report
We’ve suggested a couple of times that a tenant may disagree with what the landlord or property manager writes. So, what actually happens in those scenarios? These disagreements don’t have to escalate into major disputes if handled properly.
The tenant should raise their concerns with the property manager as soon as possible. This open communication can often resolve issues before they become problematic. After all, there’s no reason to assume anything nefarious, and both parties want the process to go smoothly.
As mentioned, the tenant does need to document these discrepancies, though.
Then, there are different ways to proceed depending on the situation:
- If the property manager acknowledges the oversight, they can simply amend the report. Both the tenant and the property manager would then initial or sign the amendment to confirm the changes.
- If the mistake is significant but the property manager/landlord agrees, they may need to reissue the report. The property manager would correct the errors, and a new report would be provided to the tenant for review and signature.
- In some cases, a reinspection of the property may be necessary. This allows both parties to reassess the condition of the disputed areas.
- If they can’t reach an agreement, a third-party service can mediate. This can help resolve disputes without the need for legal action.
The Significance of an Entry Condition Report in Dispute Resolution
A signed and completed entry condition report is a critical document in resolving disputes about the condition of rental properties at the end of a tenancy.
It serves as the vital evidence of the property’s state before the tenant moved in. This makes it easier to determine whether any damage occurred during the tenancy (and who may be to blame). In this way, it’s a fundamental part of the rental process, providing protection and peace of mind for both landlords and tenants.
Whether you’re a landlord looking to protect your property or a tenant wanting to ensure you’re not unfairly charged for damages, understanding the importance of the entry condition report is essential.
Whichever side of the rental agreement you’re on, our team in Innisfail is ready to help. We can help with all aspects of property management, including preparing and maintaining your property for tenancy. We also provide comprehensive advice for tenants looking to rent residential or commercial real estate.
Submit a query today. Alternatively, reach out to us at 0439 451 915 or email us at info@ohpg.com.au to learn how we can help make your rental experience hassle-free.