Property Condition Report (New Zealand)

A Property Condition Report in New Zealand grants a tenant the right to occupy residential premises and records the rent, bond, term, and the repair and notice obligations of landlord and tenant under the Property Law Act 2007.

The Residential Tenancies Act 1986 requires landlords to carry out a property inspection and provide the tenant with a written record of the property's condition before or at the commencement of every residential tenancy. This ingoing condition report must cover all areas of the premises — including the living areas, kitchen, bedrooms, bathrooms, laundry, external areas, and any garage or outbuildings — and should record the condition of all chattels (moveable items) provided by the landlord, such as whiteware (fridge, washing machine, dryer), curtains, blinds, and any furniture. The tenant should have the opportunity to review and sign the report and note any disagreements with the landlord's assessment, typically within 3 working days of receiving the completed ingoing report.

New Zealand's Property Condition Report has a unique and important addition compared to Australian equivalents: the Healthy Homes Standards compliance section. Under the Healthy Homes Guarantee Act 2017 and the Residential Tenancies (Healthy Homes Standards) Regulations 2019, all private rental properties must comply with five minimum standards covering heating, insulation, ventilation, moisture ingress and drainage, and draught stopping. The condition report should record the compliance status of each standard at the start of the tenancy, confirming that the property meets these requirements. This protects the landlord from claims of non-compliance during the tenancy, and assures the tenant that the property meets the minimum health and safety standards required by New Zealand law.

The importance of the condition report in New Zealand cannot be overstated. Without a signed ingoing condition report, a landlord who wishes to claim against the bond at the end of the tenancy faces a significant evidential challenge — the Tenancy Tribunal will find it very difficult to assess whether damage existed before the tenancy commenced, or whether deterioration has occurred beyond fair wear and tear. The signed ingoing report is the 'baseline' against which the outgoing condition is measured, and the Tribunal will compare the two documents when determining any bond dispute. Photographs taken at the ingoing inspection are strongly recommended as supplementary evidence.

The condition report should also record all keys and access devices provided to the tenant at the commencement of the tenancy — door keys, letterbox keys, garage remotes, swipe cards, and any other access devices. All listed items must be returned at the end of the tenancy, and failure to return them is a breach of the tenancy agreement that the landlord can claim for against the bond. The bond amount and lodgement requirements should also be noted — in New Zealand, the bond must be lodged with Tenancy Services (MBIE) within 23 working days of receipt, and the bond lodgement confirmation from Tenancy Services should be retained as evidence.

At the end of the tenancy, an outgoing condition report should be completed, ideally with the tenant present, to document the property's condition at the time of vacating. The outgoing report is compared against the ingoing report to identify any changes beyond fair wear and tear. If both parties agree on the bond refund, a joint application can be submitted to Tenancy Services online. If there is a dispute, either party may apply to the Tenancy Tribunal, which provides an accessible and affordable forum for resolving tenancy disputes in New Zealand.

A Property Condition Report is needed at two key stages of every residential tenancy in New Zealand: at the commencement of the tenancy (ingoing report) and at the end of the tenancy (outgoing report).

The ingoing condition report should be completed before the tenant takes possession of the property or on the day of move-in. Under standard industry practice endorsed by Tenancy Services (MBIE), the landlord or property manager completes the report, provides a copy to the tenant, and gives the tenant 3 working days to review the report and add any comments or notes about items they disagree with. Both parties should sign the completed report (including any tenant comments) and retain a copy for the duration of the tenancy and for at least 6 years after the tenancy ends.

A property condition report is needed for every residential tenancy in New Zealand governed by the Residential Tenancies Act 1986, regardless of the type of property. This includes houses, flats, apartments, units, townhouses, and any other residential dwelling rented to a private tenant. Boarding house operators should also prepare condition reports for each room at the commencement of a boarding house tenancy under Part 2A of the RTA, though the report format may be adapted for the room-only context.

The outgoing condition report should be completed at the end of the tenancy, when the tenant is vacating the property. The tenant is entitled to be present at the outgoing inspection if they request to attend. The outgoing report should document the condition of every area of the property and every chattel provided by the landlord at the start of the tenancy. The outgoing report is then compared against the ingoing report to identify any damage beyond fair wear and tear.

For properties with Healthy Homes Standards installations — including heat pumps, insulation, extractor fans, ground moisture barriers, and draught-stopping features — the outgoing report should also check that these items are still intact and in working order. Damage to Healthy Homes installations by the tenant may be claimed against the bond.

Property condition reports are also useful mid-tenancy, as documentation for any routine inspection carried out by the landlord or property manager. Under the RTA, landlords may carry out periodic inspections on at least 48 hours' written notice, and documenting the property's condition at each inspection creates a record that may be useful if damage is discovered at the end of the tenancy. However, the ingoing and outgoing reports remain the primary documents for bond purposes.

A well-prepared New Zealand Property Condition Report must cover all areas of the rental property and include several elements that are specific to New Zealand tenancy law.

The report header must clearly state whether this is an ingoing (start of tenancy) or outgoing (end of tenancy) report, the date of inspection, the full address of the property (including suburb and postcode), and the New Zealand region. These details confirm the context and jurisdiction of the report.

The parties and tenancy details section must identify the landlord or managing agent (with contact details), all tenants by their full legal names, the tenancy commencement date, and the bond amount. The bond amount is important for the report because it establishes the financial context for any potential bond deduction claims at the end of the tenancy, and confirms the maximum amount that can be deducted (the lesser of the bond or the actual damage claimed).

The room-by-room condition assessment must cover all areas of the property using a consistent rating system — typically Good/Clean, Fair, Poor, or N/A. Each area should include a written notes field for specific observations, including any pre-existing damage, marks, or items of note. Critical areas include the entry and hallway (walls, floors, light fittings), the living and dining room (noting the fixed heating device required by the Healthy Homes heating standard), the kitchen (chattels, extractor fan, appliances), the laundry, the bedrooms (noting openable windows for the Healthy Homes ventilation standard), and the bathrooms (noting extractor fans for the Healthy Homes ventilation standard).

The Healthy Homes Standards section is unique to New Zealand property condition reports and records the compliance status of each of the five standards: heating (fixed heater in main living room capable of heating to 18°C), insulation (ceiling and underfloor R-values), ventilation (openable windows in habitable rooms, extractor fans in kitchen and bathroom), moisture and drainage (efficient drainage and ground moisture barrier), and draught stopping (gaps wider than 3mm sealed). Each standard should be recorded as compliant, non-compliant (action required), or not applicable.

The external areas and keys section documents the condition of the garden, decks, balconies, driveways, fencing, letterbox, and any garage or outbuildings. The keys and access devices section lists every key, remote, swipe card, and access device provided to the tenant at the commencement — this is the record against which returned keys will be checked at the end of the tenancy.

The bond information section should remind the landlord of their obligation to lodge the bond with Tenancy Services (a division of the Ministry of Business, Innovation and Employment, MBIE) within 23 working days, and explain the bond refund process for both agreed and disputed refunds. Under Section 19 of the Residential Tenancies Act 1986, the maximum bond is four weeks' rent for standard tenancies. The Tenancy Tribunal bond dispute process should be noted, including that applications can be filed online at tenancy.govt.nz with a filing fee of NZD $20.44.

Finally, the signatures section confirms that both the landlord and tenant have reviewed the report, noted any disagreements, and acknowledged receipt of a signed copy. The tenant's right to add comments within three working days of receiving the ingoing report should be stated. The Limitation Act 2010 requires both parties to retain signed copies for at least six years after the tenancy ends, reflecting the six-year limitation period for contractual claims before the District Court of New Zealand or the High Court of New Zealand. Regulatory oversight falls under Tenancy Services, the Ministry of Business Innovation and Employment, and the Tenancy Tribunal, with appeals to the District Court of New Zealand. The forms-legal.com Property Condition Report (New Zealand) provides a ready-to-use template that meets all applicable New Zealand legal requirements under the Residential Tenancies Act 1986 and the Residential Tenancies Healthy Homes Standards Regulations 2019.