Add
Add

Page Feature Image 

Set a good foundation for a tenancy – start with the condition report

As Property Managers it is essential that we maintain accurate records. One of the most critical is the Ingoing Inspection.  This inspection sets the foundation for the remainder of the tenancy.  We rely on this inspection at the end of the tenancy, so it is vitally important that we get this right from the beginning, even when the tenant is sprouting those immortal words that we are all so familiar; “It was better when I move out than what it was when I moved in”.  Initial inspections poorly done can contribute to the property deteriorating as tenancies change over the years impairing the capital growth of the property for the Landlord.

To complete your inspection the property needs to be empty, cleaned, gardens mown & tided.  The way in which a property is presented to the new tenant is how you can expect it returned.  Ensure you can keys for all locks both doors & window locks and all remotes or security swipes for the property.

Keys

We always take a photocopy of the keys provided to a tenant at lease commencement, this will include any remotes or security devices too.  But at the inspection take note of any window lock keys left at the premises, note lock numbers on the keys, make & number.

Appliances

Ensure you check, wherever possible, the operation of an appliance i.e. test smoke alarm, ensure the a/c turns on & cools/heats, ovens switch on, hot water gets hot.  Record make, model, serial numbers for all appliances - take a photo of all appliances including the model/serial number panels for easy reference.  New SA Legislation states that written instructions need to be provided for all appliances at a rented property.  For newer properties this can be as easy as photocopy appliance manuals but always leave the originals in your file or better still return the originals to the landlord for safe keeping.  For older properties where manuals can't be easily sourced online the instructions can be written instructions by someone familiar with the appliance.  We would encourage landlords to prepare these instructions.

Furnished Properties

With a furnished property I would request a detailed list from the owner of what they believe to be at the property including brands.  I would then go thru the property and complete my own list and ensure that the two match taking care to make clear descriptions of colour, brand, number etc so that a reasonable person reading your notes could understand.  Resolve any anomalies with the owner immediately before the tenancy commences.

Description and Details

Throughout your report you need to ensure that you include ample details.  Clearly indicate any pre-existing damage i.e. size of any scuffs on walls, stains on carpet.  Use items for size indications - as simple as a pen or car key for scale can help.  When describing any item ensure you list the cleanliness, general condition and working status.  Photos are a great way of recording without misinterpretation of the state of a property, you cannot have too many photos of the property!

The Report

The report needs to be given to the tenant at the commencement of the lease.  You need to ensure that the tenant understands that they have the option to write any note son the inspection sheets if they feel your assessment isn't accurate or they disagree with your assessment.  Make their notes on the report and return this to the agent/owner writing 14 days of lease commencement.  A tenant shouldn't be given access to the property before they are in possession of the condition report.  have the tenant sign off, acknowledging receipt of the report and any other documents they receive, this can be done simply on the tenancy agreement.

Diarise or use an automated contact system to follow up the tenant within 14 days after lease commencement for their returned, signed report and make comparisons to the report completed by you. Promptly follow up if there are any discrepancies and address any repairs and maintenance reported.  Where a tenant has made large amounts of significant changes to the report a site meeting may be necessary to resolve discrepancies, better to do this at commencement instead of at the end of lease arguing over a bond refund.

To make this process easier there are a great range of inspection aps available in the market today.  Many of these integrate with your property management software making accurate, easy to read notes many including photographs integrated into the report simple.  Photographs can even be date & time stamped for ease in a dispute.  If you're not already using an app you should definitely consider them, they can save hours of your time from re-typing hand written reports.


Our aim as property managers is to protect our Landlords interests and provide good service to tenants.  A professionally prepared Condition Report will protect both the Landlord and the Tenant against unreasonable claims for cleaning and or property damage at the end of the lease.  This means less stress for a property manager

About post tab group

Latest Articles

Landlord Insurance, what to look for.

A recent survey carried out by Insurance Australia found that 35% of property Investors did not have specific landlord insurance on their tenanted properties. For an outlay of a few hundred dollars a...

Read more
9 tips to creating the best LinkedIn profile

9 tips to creating the best LinkedIn profile

Here's my top 9 tips for creating the best LinkedIn Sales profile. Learn better by video? Check out the video below.

Read more
Periodic Inspections Explained

Periodic Inspections Explained

So you’ve moved into your rental property and are getting settled in. You’ve received an email or letter from your property manager or your landlord advising of a periodic inspection, you’ve been...

Read more
Michael McDonald March Property Market Update

Hows the market March 2016

The Latest Property Market Update for South Australia from Raine & Horne South Australia's CEO Michael McDonald. Would you like to know more? Contact Michael using the details provided at the end...

Read more
Is an extension really extending?

Is an extension extending?

It is a common issue for home owners to spend large amounts of money on their home and not see a return on their investment. Location is crucial but there are many factors that minimise the risk of...

Read more
Maximising your investment property returns

Maximising your investment property returns

As property investors a common objective is to maximise our returns.  By increasing returns helps to ensure the longevity of the investment and increase the possibility that we can purchase...

Read more
Making the move from home

Making the move from home

Moving out of home for the first time can be an exciting adventure but moving into the rental market for the first time can be tricky.  Here are a few tips to help you into the market safely.

Read more
10 Questions to ask your property manager - Amber Drummond

10 Questions to ask your property manager

When you are looking around at property managers it is a good idea to meet a few to find someone that you are comfortable with. After all they are going to be looking after a valuable asset for you....

Read more
Property Valuation Vs Appraisal - Michael Mcdonald

Property Valuation Vs Appraisal

When you want to sell your property you are likely to come across two terms – Valuation and Appraisal. Whilst the outcome is similar, there is difference between valuation and appraisal.

Read more
Set a good foundation for a tenancy – start with the condition report

Set a good foundation for a tenancy – start with the condition report

As Property Managers it is essential that we maintain accurate records. One of the most critical is the Ingoing Inspection which sets the foundation for the remainder of the tenancy.

Read more
Parting is such sweet sorrow…. What happens when a tenant breaks lease?

Parting is such sweet sorrow…. What happens when a tenant breaks lease?

The reasons why a tenant may have to break lease vary greatly, some of the usual reasons are: relocation due to work, a change in family circumstances...

Read more
Michael McDonald, CEO of Raine & Horne South Australia

Pricing your property

Hi I’m Michael McDonald, CEO of Raine & Horne South Australia. I have been in the real estate industry for nearly 20 years as a salesperson, property manager, and agency principal. I have also...

Read more

Buy Your Home or Rent Someone Else’s?

With the recent movement in the market, I am seeing more and more articles in the media that are arguing the point that we would be better off to rent than buy our principal place of residence. They...

Read more
Major Google change will punish outdated PM websites

Major Google change will punish outdated PM websites

More than 40 per cent of industry websites are unprepared for an imminent change to the Google rankings, a real estate website developer has revealed. Google has announced that from 21 April mobile-...

Read more
Keep an Apple Watch on the rental market

Keep an Apple Watch on the rental market

REA Group and Domain Group have each created a property app for the highly anticipated release of the Apple Watch.  Potential tenants who use realestate.com.au and domain.com.au will be able to house...

Read more
Andrew Brockhoff in the kitchen of a Coober Pedy dugout he’s renovated. Picture: Tom Huntley

Coober Pedy dugouts are a renovator’s delight

IF someone’s a bit behind the times we ask if they’ve been living under a rock. But Coober Pedy residents say living underground is the way of the future. Andrew Brockhoff and his partner, Sandy...

Read more
Tips to staging your home like a pro (outside)

Tips to staging your home like a pro (outside)

Want to sell your house quick? So you are looking at selling your home? Ideally you want to sell it fast and for the best price you can right? Try ‘staging’ your home to be at its best starting with...

Read more
DIY or use a professional to manage your investment?

DIY or use a professional to manage your investment?

Many landlords see property management as a simple job and so some landlords are tempted to do it themselves.  While the property is sailing along smoothly it can appear this is the case however, the...

Read more

Thinking of selling? – Three early steps to start you on the right path.

If you are contemplating selling your property at any time in the next twelve months, there are a few key steps you can take now to make the whole journey a lot easier, and a lot of it is about...

Read more
Honesty When Selling

Honesty When Selling

Often when I was assisting people in getting ready to sell, the property seller would ask “Should I do anything about the minor cracks on the walls?”, or “Do you think it would be worthwhile to give...

Read more
When does regular follow up turn into harassment?

When does regular follow up turn into harassment?

The issue of rent arrears has recently been raised by real estate’s industry body the Real Estate Institute of South Australia.  Concerns have been raised about the strategies some agencies are...

Read more
Angus Raine, Executive Chairman and CEO of Raine & Horne

Raine & Horne says rate cut will be good news for regional Australia

This week’s decision by the Reserve Bank to trim interest rates by 25 basis points will provide some incentives for first home buyers and investors in regional Australia, according to leading real...

Read more
Graham & Desleigh Burow receive their You're A Winner prize

Raine & Horne delivers happy New Year to winning homeowners and agents

Raine & Horne has launched into 2015 by giving away almost $100,000 in prizes to lucky vendors who listed their home with the national real estate group in the fourth quarter of 2014. The prize...

Read more
Michael McDonald CEO Raine & Horne real estate South Australia

Selecting an Agent

Hi I’m Michael McDonald, CEO of Raine & Horne South Australia. I have been in the real estate industry for nearly 20 years as a salesperson, property manager, and agency principal. I have also...

Read more