When a tenant moves into your investment property they are given a Property Condition Report (PCR) by the Property Manager. This is the document that outlines exactly the state your property is in when the tenant takes over the lease.
The Property Manager completes this document and gives it to the tenant to read and sign on the day they move in. The tenant is required to check everything on the form is acceptable to them, or make notes or comments if they do not agree, and to return the form in seven days.
If they do not complete it, it is taken as acceptance of the report as is.
The condition report is one of the most important documents for a landlord.
Our comprehensive Property Condition Reports include numerous photographs and specific details about the property.
PCR’s are vital because:
It is a checklist at inspections and at vacate:
The PCR becomes the master sheet for the Property Manager to check upon a tenant’s leaving the home. It determines what is and isn’t in the correct condition.
It also allows for fairness with a tenant as it indicates any damage that already existed in a property and helps resolve disputes upfront. This check-list can be used for property managers to cross reference things they see at the property during general inspections that they weren’t sure existed initially and to take appropriate action. A tenant can also use a copy of the PCR to make sure they are leaving the property in the correct manner.
It is a critical tool for efficiently returning the bond:
At the end of a tenancy, all tenants want their bond back as quickly as possible.
To facilitate an efficient process in checking the premises and returning the funds, the PCR allows the property manager to thoroughly and efficiently check the premises.
This is especially critical in furnished rentals, where each item needs to be accounted for to allow a bond to be returned.
The PCR doesn’t just cover off on damages, it also considers what is intact and functioning, what is reasonable wear and tear and whether areas of the home need to be cleaned further.
It can be used as evidence:
If a dispute does arise between the tenant and landlord, particularly surrounding the bond, the PCR is a powerful piece of evidence for proving the truth of the situation.
In these instances, visual imagery of the property can be powerful.
A PCR that shows damage did not exist when a tenant commenced a lease agreement, but exists when they vacated, clearly indicates that the issue took place during their tenancy. The condition report allows a landlord to ensure their property will be returned to the state it was in prior to the tenancy.
Tenants can also use the condition report to prove when aspects of the home have not been adequately maintained or issues have arisen outside of their control.