Accurate entry and exit condition reports are central to good property management and risk management. Spending time on getting them right will save you trouble in the future and the possibility of any disputes.
Entry Condition Report
An entry condition report is required by law under section 65 of the Residential Tenancies and Rooming Accommodation Act 2008 (Qld) (RTRA Act). Section 65(2) specifically requires that on or before the day the tenant occupies the premises under the agreement:
- the lessor or property manager prepare and sign (in the approved form) an entry condition report (ECR) for the premises and any inclusions; and
- give a copy of the signed ECR to the tenant.
Section 65(3) provides that the tenant must, within three days after the tenant occupies the premises under the agreement:
- sign a copy of the ECR; and
- return the signed copy of the ECR to the lessor or property manager, marked in an appropriate way showing the parts of the report the tenant disagrees with.
Section 188(4) provides that at the end of a tenancy, the tenant must leave the premises and inclusions, as far as possible, in the same condition they were in at the start of the tenancy, fair wear and tear excepted.
This is why it’s crucial you, as Landlord or Property Manager, ensure that the entry condition inspection is as detailed and as thorough as possible. Aside from indicating whether an item is ‘clean, undamaged and working’ in the ECR, you should include specific comments about the general condition of items.
Exit Condition Report
According to the RTRA Act, the tenant must prepare and sign an exit condition report (in the approved form), which must be given to the lessor or property manager as soon as practicable after the agreement ends.
Section 66(2) provides that the lessor or property manager must, within three business days after receiving the exit condition report, sign and return a copy of the exit condition report to the tenant’s forwarding address, marked in an appropriate way showing the parts of the report the lessor or property manager disagrees with. The Landlord or Property Manager must also keep a copy of the exit condition report for at least one year after the agreement ends.
Landlords and Property Managers must remember that thorough inspections are not only essential for complying with legislative requirements, they may also prove an invaluable risk management tool for determining disputes which might arise regarding the condition of the property.
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