Property Condition Report (Australia)
What Is a Property Condition Report (Australia)?
A Property Condition Report in Australia 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 Real Property Act 1900 (NSW).
In Australian residential tenancy law, the condition report is not merely a good practice document — it is a legal requirement. The obligation to provide a condition report to the tenant at the commencement of the tenancy is imposed by statute in New South Wales (section 29, Residential Tenancies Act 2010), Victoria (section 35, Residential Tenancies Act 1997), Queensland (section 65, Residential Tenancies and Rooming Accommodation Act 2008), Western Australia (Residential Tenancies Act 1987), South Australia (Residential Tenancies Act 1995), Tasmania (Residential Tenancy Act 1997), the ACT (Residential Tenancies Act 1997), and the Northern Territory (Residential Tenancies Act 1999).
The report works in conjunction with the security bond. The landlord collects the bond at the start of the tenancy and lodges it with the relevant state bond authority. The bond is held in trust until the end of the tenancy. When the tenancy ends, the parties use the ingoing condition report to compare the starting and ending condition of the property. If the landlord claims a bond deduction for damage, the ingoing condition report is the critical evidence establishing what the property's condition was at the start of the tenancy.
A well-prepared condition report protects both parties. For the landlord, it provides documentary evidence of the property's condition at the commencement of the tenancy, which is essential for recovering the cost of damage from the bond at the end. For the tenant, the condition report protects them from being held responsible for damage that was already present when they moved in. Tenants have the right to add their own comments to the ingoing condition report within the prescribed period after receiving it, and to note any pre-existing marks, damage, or items they disagree with.
The legal framework governing the Property Condition Report (Australia) in Australia draws on several key statutes and regulatory bodies. Under state and territory residential tenancies legislation, including the Residential Tenancies Act 1997 (Vic), Residential Tenancies Act 2010 (NSW), and equivalent Acts in other jurisdictions, tenancy tribunals (NCAT in NSW, VCAT in Victoria) adjudicate disputes. The Real Property Act 1900 (NSW) and Transfer of Land Act 1958 (Vic) govern property registration through state land registries. Section 52 of the Australian Consumer Law (Schedule 2, Competition and Consumer Act 2010) prohibits misleading conduct in property transactions. The Foreign Acquisitions and Takeovers Act 1975 (Cth) requires FIRB approval for foreign purchasers. Parties executing a Property Condition Report (Australia) in Australia should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Real Property Act 1900 (NSW) sets the foundational requirements.
When Do You Need a Property Condition Report (Australia)?
A Property Condition Report is required at the commencement of every residential tenancy in Australia, regardless of whether the property is managed by a real estate agent or directly by the landlord. It is also completed at the end of the tenancy for the outgoing inspection.
The ingoing condition report must be completed before or at the time the tenant is given access to the premises. The landlord must provide a copy of the completed report to the tenant. The tenant then has a set period (commonly three to seven business days depending on the state) to review the report, make comments, sign, and return a copy to the landlord.
An outgoing condition report is completed after the tenant vacates the property and returns all keys. The outgoing report is compared against the ingoing report to identify any deterioration in condition that exceeds fair wear and tear. The tenant is entitled to attend the outgoing inspection if they request to be present.
You should use a condition report template in the following situations: when a new tenancy is commencing and you need to document the property's condition before handing over keys; when a tenancy is ending and you need to conduct a thorough outgoing inspection and compare the property's condition against the ingoing report; when a tenant has been in possession for an extended period and you want to document the current condition for mid-tenancy purposes; and when a property changes management agent and you need to document the condition at the time of handover.
For landlords who manage multiple properties, maintaining a consistent and thorough condition report process is one of the most effective ways to protect the value of their investment and resolve any bond disputes efficiently and without going to tribunal.
What to Include in Your Property Condition Report (Australia)
A thorough Australian Property Condition Report should address the following key elements to be effective as a legal document in the event of a bond dispute.
The report header must record the type of report (ingoing or outgoing), the inspection date, the full address of the property, and the names of the landlord and tenant. This information establishes the context for the condition assessments and confirms the report can be clearly linked to the relevant tenancy agreement and bond lodgement.
The room-by-room condition assessments are the core of the report. Each area of the property should be assessed individually, using a consistent condition rating (such as Good / Clean, Fair, Poor, or N/A). For each area, the assessor should note specific observations about the condition of walls, ceilings, floors, windows, blinds and curtains, light fittings, power points, and any fixtures or appliances in that area. The notes should be specific enough to describe the exact nature and location of any existing marks or defects.
The kitchen and bathroom assessments are particularly important because these areas are the most prone to damage disputes. The report should note the condition of all appliances (oven, cooktop, dishwasher, rangehood, washing machine trough), the state of grouting and tile surfaces in bathrooms, the condition of shower screens, and the operation of all taps and fixtures.
The keys and access devices section must list every key, remote control, swipe card, and access device provided to the tenant at the commencement of the tenancy. At the end of the tenancy, all listed items must be returned. Failure to return keys can result in a bond deduction for rekeying costs.
For ingoing reports, the bond lodgement information section reminds the landlord of their legal obligation to lodge the bond with the relevant state bond authority within the prescribed period. This is a non-negotiable obligation — a landlord who retains the bond in their own account rather than lodging it with the bond authority commits a criminal offence under the applicable Residential Tenancies Act.
The signature section should include spaces for both the landlord (or agent) and the tenant to sign and date the report. Where the tenant makes comments or amendments to the report, these should be clearly recorded and both parties should initial any changes. The landlord must provide the tenant with a signed copy of the completed report (including any tenant comments) and must retain the original for the duration of the tenancy.
Additional compliance elements for a Property Condition Report (Australia) used in Australia include: Under state and territory residential tenancies legislation, including the Residential Tenancies Act 1997 (Vic), Residential Tenancies Act 2010 (NSW), and equivalent Acts in other jurisdictions, tenancy tribunals (NCAT in NSW, VCAT in Victoria) adjudicate disputes. The Real Property Act 1900 (NSW) and Transfer of Land Act 1958 (Vic) govern property registration through state land registries. Section 52 of the Australian Consumer Law (Schedule 2, Competition and Consumer Act 2010) prohibits misleading conduct in property transactions. The Foreign Acquisitions and Takeovers Act 1975 (Cth) requires FIRB approval for foreign purchasers. Forms-legal.com provides this template as a starting point for Australia-compliant documentation.
Also available for these jurisdictions:
Frequently Asked Questions
Yes. A property condition report is required by law in all major Australian states and territories for residential tenancies. In New South Wales, the requirement is set out in section 29 of the Residential Tenancies Act 2010 (NSW), which requires the landlord to give the tenant a written condition report documenting the state of repair and general condition of the premises at the commencement of the tenancy. In Victoria, section 35 of the Residential Tenancies Act 1997 (VIC) imposes the equivalent obligation, with Consumer Affairs Victoria providing a prescribed form. In Queensland, section 65 of the Residential Tenancies and Rooming Accommodation Act 2008 (QLD) requires the lessor to provide a general condition report. Failure to provide a condition report does not affect the validity of the tenancy but can significantly undermine the landlord's ability to make deductions from the bond at the end of the tenancy, because without a documented ingoing condition report, the landlord cannot prove what condition the property was in at the start.
Fair wear and tear refers to the natural and reasonable deterioration of a property resulting from ordinary everyday use by the tenant and their household. Examples of fair wear and tear include minor scuff marks on walls from everyday living, slight fading of paintwork or curtains from sunlight, carpet flattening from normal foot traffic, and small chips on benchtops or fixtures resulting from normal use. Tenant damage, by contrast, is deterioration or destruction caused by the tenant's careless, negligent, or deliberate conduct beyond the scope of ordinary use. Examples include holes in walls, burns on carpet or benchtops, broken windows, graffiti, pet damage, and staining caused by failure to clean up spills. A landlord is entitled to claim bond deductions for tenant damage but cannot claim for fair wear and tear. The distinction is assessed case by case, taking into account the age of the property, the length of the tenancy, and the nature of the item damaged. The relevant tenancy tribunal will use the ingoing and outgoing condition reports (and any accompanying photographs) to assess whether claimed damage goes beyond fair wear and tear.
Under Australian residential tenancies legislation, the landlord or agent must lodge the bond with the applicable state bond authority within the period prescribed by the relevant Act — not hold it privately. In New South Wales, bonds must be lodged with NSW Fair Trading within ten days of collection under the Residential Tenancies Act 2010 (NSW). In Victoria, bonds must be lodged with the Residential Tenancies Bond Authority (RTBA) within ten business days under the Residential Tenancies Act 1997 (VIC). In Queensland, bonds must be lodged with the Residential Tenancies Authority (RTA) within ten days under the RTRA Act 2008 (QLD). In Western Australia, bonds must be lodged with the Bond Administrator (Department of Mines, Industry Regulation and Safety) within 14 days. The bond authority holds the bond on trust for both the landlord and the tenant. At the end of the tenancy, the bond can only be released with the written agreement of both parties or pursuant to an order of the applicable tenancy tribunal (NCAT in NSW, VCAT in VIC, QCAT in QLD). A landlord who fails to lodge the bond within the prescribed period commits an offence under the applicable Act.
The outgoing inspection (also called an end-of-tenancy inspection or vacate inspection) is conducted after the tenant has moved out of the property to assess its condition and compare it against the ingoing condition report. The tenant is entitled to be present at the outgoing inspection in all Australian states if they request to attend. The landlord or property manager inspects every room and area of the property, noting any damage or deterioration beyond fair wear and tear. If damage is identified, the landlord must itemise the cost of repair and notify the tenant of any proposed bond deductions. If the tenant agrees to the deductions, the bond authority can release the relevant amount to the landlord and return the balance to the tenant without the need for a tribunal hearing. If the tenant disputes the deductions, either party may apply to the applicable tenancy tribunal for a bond claim order. The tribunal will consider the ingoing condition report, the outgoing inspection findings, any photographs, quotes for repairs, and other evidence when making its determination.
Yes, and in some states photographs are now required. In New South Wales, the Residential Tenancies Regulation 2019 (NSW) requires landlords to provide photographs documenting the condition of the premises as part of the condition report given to the tenant at the commencement of the tenancy. Photographs provide an objective visual record that supplements the written condition assessments and is often the most persuasive evidence in a bond dispute. established standards for landlords and property managers is to take date-stamped photographs of every room, all fixtures and fittings, and any existing damage or marks at both the ingoing and outgoing inspections, and to retain these photographs for the duration of the limitation period for tenancy disputes. Tenants should also photograph the property at the time they conduct their own review of the ingoing condition report, to protect themselves against unfair bond claims for pre-existing damage.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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