In the realm of securing new tenants for your investment property, or as a tenant, preparing to move home you may feel distracted and devote the time to devote attention and care to a very important document – the Ingoing Condition Report
In our opinion this document is a critical part of setting up for a successful tenancy for both Landlords and Tenants alike.
What is an Ingoing Condition Report?
The ingoing condition report serves as a comprehensive snapshot of the property’s state at the beginning of a tenancy. It’s a document that outlines the condition of various elements within the premises, ranging from walls, skirting boards and floors to appliances and fixtures and more. It may contain numerous photos and possibly videos documenting the condition of each aspect of the property at the start of the tenancy.
In NSW for residential tenancies this document must be prepared and provided to the tenants at or before the lease agreement is signed.
Who prepares the Ingoing Condition Report?
Typically, your Property Manager (a specialist real estate agent) will prepare this report. It can (and in our opinion should) be an extremely detailed document. It is important that all aspects of the property are examined and commented on. At Rightside we always include numerous photographs into the report and in some cases video footage may also be included.
It is important to note that this document is a collaborative effort between the real estate agent (on behalf of the landlord) and the tenant. While the Property Manager prepares the report and details their opinion on the condition of all aspects of the property, the tenant is provided with the opportunity to review the report in detail during the first 7 days of their lease and note any differences of opinion.
There is a limit of 7 days for a tenant to raise any issues or proposed amendments to the Ingoing Condition Report and it is important that these timelines are observed, at the end of the seven day period if the tenant has not raised any objections, the report prepared will stand as the Property Manager prepared it and it is taken that the Tenant agrees with the report as it is.
So why is this report so important?
One might wonder, why is this report so vital? The answer lies in its power to protect both landlords and tenants alike.
Landlords benefit from the ingoing condition report by having a clear baseline for the property’s condition. This documentation can be crucial in resolving disputes regarding bond claims for repairs at the end of the tenancy. It establishes a fair and transparent foundation for assessing any changes to the property during the lease period.
For tenants, the ingoing condition report is a shield against unjust claims of property damage when they eventually move out. By meticulously documenting the existing condition of the property, mis-understandings and conflict in the future can be avoided.
What happens if my Tenant does not agree with the report prepared by my Property Manager?
It is not necessarily something to be alarmed about that your tenants would like to make adjustments to the Ingoing Condition Report. Nor is it necessarily an indication that your new tenants are quarrelsome or your Property Manager lacking.
The Property Manager who prepared the report may have taken between 4-8+hours in the property inspecting and documenting the condition, while your tenant will have 7 whole days (and nights!) to examine and review this report. It may be possible that the tenants notice something obscure that your Property Manager overlooked.
It is also possible that there is a difference on opinion on what is ‘reasonably’ clean. These sorts of things can be prone to ‘interpretation’ and not everyone’s standards of cleanliness are the same. Our agents have high standards, so if your tenants standards are even higher this may be an indicator that that they will keep the property to excellent standards throughout their tenancy which is pleasing.
Your Property Manager is there to provide advice and guidance about the appropriate way to prepare your property for rent, and in our opinion this advice should be provided to you prior to sending the Ingoing Inspection Report to your tenants. Dissatisfaction over issues such as cleanliness at the beginning of a new tenancy can start the relationship off on the wrong foot.
For all adjustments to the report that your tenant suggests, your Property Manager will review come to a mutually agreeable position with the Tenant and the Landlord before finalising the report.
Conclusion
In the dynamic landscape of residential tenancies in NSW, the Ingoing Condition Report emerges as a silent guardian, ensuring a fair and transparent rental experience for both tenants and landlords. Meticulous preparation of this report serves as a cornerstone for resolving disputes and fostering a harmonious landlord-tenant relationship.
By respecting the importance of the ingoing condition report and giving it the attention that it deserves, this can pave the way for a stress-free tenancy.
