Success is the sum of details: Property condition reports
Property condition reports are designed to protect the landlord and their investment as well as the tenant. But what exactly should be included in the report?
A property condition report should be completed at the start of every tenancy to record the condition of the premises, and signed by both the tenant and landlord (or the property manager if one has been engaged).
While it might not be the most exciting part of property investment, it’s important to conduct a thorough inspection to ensure you have proof of the state of the property as well as a full list of the inventory included in the lease.
So what exactly should the property condition report include?
- A full description of the window treatments (i.e. wooden venetians, vertical blinds etc) in every room
- A full description of the light fittings in every room
- The colour of carpets and walls, outlining any marks or damage
- A list of appliances included in the lease as well as the make and model and their working order
- Any furniture included and its condition
- General condition of each room
- Any noticeable damage inside and outside the house
When it comes to property condition reports, the more detail the better as this will help to avoid or overcome any disputes.
It’s also advised to take plenty of photographs as these can be used as evidence.
Failing to adequately describe the inclusions, fixtures and fittings can cause unnecessary disputes at the end of the tenancy or lead to a possible financial loss for the property owner.
As well as detailing the condition of the property, it’s important that the premise is presented in a clean and safe condition from the outset.
At the end of the lease when the tenant is vacating, they are required to leave the premise in the same condition as it was found, allowing for fair wear and tear.
If the property was not initially presented well then the tenant can leave the property in the same state and condition.
If you’ve engaged a property manager they will take care of the property condition report on your behalf, and a good property management firm will have thorough processes in place to protect the landlord.