Two of the most important documents in any tenancy are the entry and exit condition reports.
In the vast majority of cases, a significant majority of tenancies end on positive note with no disputes or issues. These end of tenancies are clear cut enough that bond deductions are agreed upon without the need to escalate the matter to the Residential Tenancies Authority (QLD) or legal body, such as the Queensland Civil Administrative Tribunal (QCAT).
However, sometimes disagreements do occur. In these instances, the situation may sometimes become problematic. In these situations, it is best to have an experienced and communication-centric Property Manager to assist. This is where the importance of a good Entry and Exit Condition Report will come into play.
The entry condition report is a snapshot of the condition of the property, and any inclusions, at the start of the tenancy. It can sometimes be challenging for an owner to review an entry condition report for their investment property. A well drafted and considered Entry Condition Report should be thorough, while noting all of the issues with the condition of the property no matter how small. It is important that these reports do not try to minimise or overlook small issues. From an owners’ perspective, a blank Entry Condition Report could be more reason to be concerned than one with a number of notes and comments.
The Exit Condition Report should be completed in the same way as the Entry Report. The two reports are then compared to each other to help determine if any issues that now are new or occurred during the tenancy or if they may require further investigation, taking into account fair wear and tear (see our article of Fair Wear & Tear).
There is an important consideration to make regarding whom the different reports are completed by and within what convention. The Property Manager/owner completes the entry condition report at the beginning of each tenancy and provides a copy to the incoming tenant. The reverse is true of the Exit Condition Report, with the onus being upon the tenant to complete the report initially and provide it to the Property Manager/owner for comment and review against the report completed at the beginning of the tenancy.
The key here is to ensure that your Property Manager has completed a detailed report at the beginning of for each new set of tenants prior to moving into the property. A detailed report will include many photos, showing the full and accurate condition of the property prior to move in.
A well drafted Entry and Exit Condition Report will assist in protecting your asset in the long term.
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