Avoid Trouble And Damages With An Ingoing Inspection

Have your tenants set their own crystal clear expectations for property condition.

An in-going condition(move in/move out inspection) report can change everything for your tenancy and what’s more – if you explain it right, your tenants will be more than keen to help you draw this up. Aside from picking the right tenant, this is the best thing you can do to protect yourself and property against damage and miscommunication down the line.

A condition report states very clearly the exact condition of the property in great detail at the beginning of a tenancy. This is the same state, less fair wear and tear that the property should be in at the end of the tenancy.

You cannot make things any clearer to a tenant what your expectations are for the property, than with a condition report.

Your condition report should be comprised of 2 parts. To be done one after the other, not at the same time.

Part one: Condition report of the property

Part two: chattels report, if any

For your condition report you want a detailed spreadsheet you can work through.

Slowly make your way through the property noting down every little nick, scrape or stain. Ignore chattels for now, you will tend to those later.

Work room by room. Pick a starting point in each (doorway works well)and go clockwise around it.

Next up are chattels. Again work through room by room, make sure everything on the chattels list is in the property and in working condition. Any nicks or missing items should be recorded, replaced or struck off.

This is a long process that will take time but you will thank yourself at the end of the tenancy exit when it is all a breeze with no room for error in who caused what damage.

When pitching to tenants use similar wording to: Make sure you note down every little nick and scratch as we don’t want you being blamed and charged for repair of those at the end of the tenancy.

At the end of the tenancy –

When either party gives notice, as part of an exit pack you should send a remaining rent statement, cleaning schedule and the initial condition report. Remind the tenant that the ingoing condition report is the state of the property when they moved in and should be the state of the property, less fair wear and tear, when they leave to get back their full bond. This might mean they need to arrange repairs for damage they caused and/or get professional cleaners in order to leave the property in a reasonably clean and tidy state as it was handed over.

To further protect yourself and avoid issues with bonds, depending on the condition of the property in your most recent inspection you may decide to do a pre vacate inspection. This would be more akin to a routine inspection than condition report.

This is where you make sure the tenant understands how you expect the property to be presented at the end of the inspection. You can point out what needs to be done – stain in carpet, picture hook repairs etc – setting up for a positive final condition report inspection.

This is all done as a walk through the property with the tenant a few weeks before vacate date – give them plenty of time to get the cleaning and repairs managed. Make sure they know if this is not all done to a reasonable standard by them, you be forced to withhold some bond for professional cleaning and repairs. Follow up in writing – you always want a record of contact with tenants.

If you have explained your expectation, supplied them with a copy of the ingoing condition report, you should be able to turn up to your property confident it will be ready for your next tenants in no time. In cases where cleaning or damage has been missed your tenant should have no issues with costs being deducted from the bond as they have a copy of the report they helped to create, they can’t argue that it wasn’t them. If you have also done a pre vacate inspection you are super in the clear.

Don’t have time for inspections? Not sure what you are looking for? Too far away or too busy?

Tenant Source can do one off inspections for you. Get in touch for more info@tenantsource.co.nz

Disclaimer: The information contained in this publication is exclusively for promotional purposes and is not to be relied upon for legal or contractual dealings. Tenant Source recommends you seek independent legal advice, and that you may need to seek technical or other advice and information prior to making any actions in regards to tenancies in your investment properties. Tenant Source Ltd including its staff and directors accepts no responsibility for any issues arising as a result of taking advice from this publication.