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Exit Condition Report

An Exit Condition Report is a formal record of a property's state when a tenant leaves. It is compared to the entry report to assess bond claims for damage or cleaning, governed by state Residential Tenancies Acts.

A detailed record of a property's condition at the end of a lease or tenancy. It helps landlords and tenants agree on bond refunds and cleaning responsibilities.

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An Exit Condition Report is a vital document used in Australian residential and commercial property management. It records the state of a property when a tenant moves out. This report compares the current condition against the Entry Condition Report completed at the start of the tenancy. The main purpose of this document is to determine if the property has suffered damage beyond fair wear and tear. It helps calculate any deductions from the security bond or rental bond. It also clarifies cleaning obligations for both the landlord and the tenant. In Australia, each state and territory has specific laws regarding condition reports. For example, the Residential Tenancies Act 1995 applies in South Australia while the Residential Tenancies and Rooming Accommodation Act 2008 applies in Queensland. Landlords and property managers must issue these reports within strict timeframes. Failing to provide a proper report can limit a landlords ability to claim bond money. This guide explains everything you need to know about creating, completing, and processing an Exit Condition Report. It focuses on Australian trade businesses like cleaners, builders, and property maintenance experts who often prepare these reports. It covers legal requirements under various state Residential Tenancies Acts and the Australian Consumer Law. It also references standards set by bodies like Fair Trading NSW and Consumer Affairs Victoria. You must understand the difference between fair wear and tear and actual damage. Fair wear and tear refers to the gradual deterioration of a property due to normal use. This includes scuff marks on floors, fading paint due to sunlight, or worn carpet. Tenants are generally not responsible for these costs. Actual damage refers to harm caused by negligence, misuse, or intentional acts. This includes broken windows, large stains on carpets, or holes in walls. Tenants are liable for these repairs. The Exit Condition Report provides the evidence needed to make this distinction. It serves as a safeguard for both parties. It prevents disputes over unfair bond deductions. It also ensures landlords maintain their property value. This guide outlines the step by step process of conducting the final inspection. It explains how to document evidence using photos and detailed notes. It details how to compare the exit condition with the initial entry report. It highlights common mistakes people make during this process. These include failing to check behind furniture, ignoring minor appliance issues, or not signing the report promptly. We also discuss the role of tradespeople in this process. Cleaners often rely on the report to understand their scope of work. Builders and handymen use it to quote for necessary repairs. Accurate reporting ensures these professionals can do their job correctly. The legal framework for these reports is strict. For instance, under the Residential Tenancies Act 2010 in New South Wales, a landlord must prepare a condition report at the end of the tenancy if they intend to claim a bond. The tenant has the right to contest the findings within a specific period, usually 14 days. If a dispute arises, the matter may go to the state Civil and Administrative Tribunal. The report acts as the primary evidence in these hearings. Therefore accuracy and objectivity are critical. Vague descriptions like 'dirty kitchen' are not helpful. You must write specific notes like 'grease inside oven and on stovetop elements'. This guide provides a overview of these requirements. It helps you navigate the legal in New South Wales, Victoria, Queensland, Western Australia, South Australia, Tasmania, the Australian Capital Territory, and the Northern Territory. While specific laws differ slightly, the principles remain consistent. You must document the condition thoroughly. You must give the tenant a chance to review and disagree. You must use the report to settle the bond fairly. We also look at digital solutions. Many property managers now use apps and cloud based software to generate these reports. These tools allow for instant photo uploads and digital signatures. They can speed up the process and reduce errors. However, paper forms remain legally valid and are still widely used. We will cover the pros and cons of both methods. , we discuss the specific items that need inspection. This includes walls, ceilings, floors, windows, doors, fixtures, fittings, and appliances. We provide checklists for outdoor areas like gardens, balconies, and driveways. We also cover specific health and safety issues. For example, checking smoke alarm compliance is mandatory in many states. A tenant must leave smoke alarms in working order. The Exit Condition Report must verify this. Failure to check smoke alarms can result in fines for the landlord. This guide is written in plain English. It avoids legal jargon where possible. It uses simple verbs and clear instructions. It is designed for Australian tradespeople and small business owners who need practical advice. It ensures you understand your rights and responsibilities. It helps you avoid costly disputes. It ensures you comply with the Fair Work Act 2009 if you employ staff to conduct inspections. It also touches on Work Health and Safety (WHS) obligations. Inspectors must not put themselves at risk during an inspection. This includes checking for asbestos or electrical hazards before entering roof spaces or subfloors. By following this guide, you will be able to complete an Exit Condition Report that is legally sound and practically useful. You will protect your business interests and maintain good relationships with clients. This document is more than just a form. It is a legal record that can determine financial outcomes. Treat it with the care and attention it deserves.

Key Facts

  • Landlords must complete an exit report to claim against the security bond for damages or cleaning.Residential Tenancies Act 2010 (NSW) s. 176
  • Tenants are not liable for 'fair wear and tear' which results from normal daily use.Residential Tenancies Act 1997 (Vic) s. 244
  • Disputes over condition reports are usually resolved by the state's Civil and Administrative Tribunal.Queensland Civil and Administrative Tribunal Act 2009 (Qld)
  • Smoke alarms must be checked and recorded as functional in the exit report in most states.Environmental Planning and Assessment Act 1979 (NSW)
  • Tenants typically have 7 to 14 days to dispute the findings of an Exit Condition Report.Residential Tenancies Act 1987 (WA)

Sources

Required Sections

Property Overview

Basic details of the property and parties involved.

Property Overview

Full Address Enter the complete street address, suburb, state, and postcode exactly as it appears on the lease agreement. Do not use abbreviations for street types like 'St' or 'Rd'. Accuracy here ensures the report matches the specific tenancy agreement and the bond claim submitted to the relevant state residential tenancies authority. If the property is a unit or lot, include the unit or lot number clearly at the start of the address field.

Landlord Details Record the full legal name of the landlord or the property manager acting on their behalf. If you are a property manager completing this report for a landlord, enter your agency name and your specific contact details. This establishes the authorised party responsible for the property condition. Ensure the name matches the information held by the residential tenancy bond authority to prevent delays in bond processing.

Tenant Details Write the full name of the vacating tenant as listed on the lease agreement. If multiple tenants are on the lease, include all names. This identifies the parties responsible for the return of the bond money. Incorrect tenant details can lead to disputes or rejected claims from the bond board.

Date of Inspection Record the specific date and time the physical inspection took place. This date is critical for evidence. In most Australian states and territories, including New South Wales, Victoria, and Queensland, the final inspection must occur on or before the handover date. Under residential tenancy legislation, such as the Residential Tenancies Act 1997 (VIC) or the Residential Tenancies and Rooming Accommodation Act 2008 (QLD), the condition of the property is assessed against the original ingoing condition report based on this timeline.

Date of Vacancy Enter the date the tenant handed back possession of the keys and vacated the premises. This date officially ends the tenancy liability for the tenant regarding rent. It also marks the start of the landlord's responsibility to mitigate loss by re-letting the property. Discrepancies between the inspection date and vacancy date often cause confusion over who is responsible for damage or cleaning, so ensure both dates are accurate and clearly visible.

Required

Condition Checklist

Detailed itemized list of rooms and fixtures.

Condition Checklist

Use this section to record the state of specific rooms and fixtures. Inspect every item listed and compare it against the entry condition report. Australian tenancy law requires a property to be returned in reasonably clean condition, allowing for fair wear and tear. Mark the condition of each item.

Item / AreaCondition (Good / Fair / Poor / Damaged)NotesAction Required
Kitchen
Benchtops and Cupboards
Sink and Taps
Oven and Stove Top
Rangehood and Filters
Dishwasher (if installed)
Floors and Walls
Bathroom / Laundry
Shower Base and Screens
Toilet and Cistern
Vanity and Sink
Taps and Plumbing Fixtures
Tiles and Grouting
Mould and Ventilation
Bedrooms and Living
Carpet and Floorboards
Walls and Paintwork
Windows and Blinds
Doors and Handles
Built-in Wardrobes

Guide to Filling Out This Checklist

Be precise when documenting the condition of the property. Under the Condition column, state if the item is clean, dirty, or scuffed. Do not leave any row blank. If an item is missing, write "N/A" in the notes.

Notes Record specific details in this column. Use measurements for damage. Write "2 cm scratch on timber floor near door" rather than "damaged floor". This detail is vital if a dispute arises. Note any accumulation of grime or soap scum that exceeds standard cleaning expectations. Under residential tenancy law, "fair wear and tear" refers to the gradual deterioration of a property due to normal use. You cannot claim for this. You can claim for damage or negligence.

Action Required List the steps needed to fix the identified issue. Write "Professional carpet cleaning required" or "Replace cracked window pane". Distinguish between a cleaning task and a repair. If the tenant breached the lease agreement, list the specific remedy needed here. This section acts as a clear directive for the tenant or contractor.

Legislative Reference Ensure the findings in this report align with the residential tenancy legislation relevant to the state or territory. In New South Wales, this refers to the Residential Tenancies Act 2010. In Victoria, refer to the Residential Tenancies Act 1997. In Queensland, follow the Residential Tenancies and Rooming Accommodation Act 2008. These acts set the legal standard for property condition and bond disputes. Specific cleaning standards outlined in these regulations may override general opinions on cleanliness. If the property is professionally managed, refer to the agency's internal policy on standard wear.

Required

Cleaning Assessment

Evaluation of cleanliness standards.

Cleaning Assessment

General Condition and Legislation Inspect the property to determine if it has been left in a reasonably clean condition. The standard for cleanliness is defined by the residential tenancy agreement. In New South Wales, the Residential Tenancies Act 2010 requires the tenant to leave the premises in a reasonable state of cleanliness, considering the condition of the premises at the start of the tenancy. In Queensland, the Residential Tenancies and Rooming Accommodation Act 2008 sets out specific obligations regarding cleanliness. Check the original Entry Condition Report to compare the current state against the initial condition.

Grease and Grime Pay close attention to the kitchen and cooking areas. Inspect the stovetop, range hood filters, oven interior, and splashbacks. Grease accumulation often builds up behind appliances and inside extraction fans. Wipe surfaces with a cloth to check for sticky residues. If the grease is thick or requires heavy-duty industrial chemicals to remove, record this as a specific deficiency. Ovens must be clean of carbon buildup and food debris. Check inside the microwave and the dishwasher filter for trapped food particles or mould.

Dust and Cobwebs Dust is easily visible on skirting boards, architraves, door frames, and window sills. Run a finger along these high surfaces. Examine ceiling corners and light fittings for cobwebs. Dust accumulation indicates a lack of detailed preparation for the final inspection. Air conditioning vents and ceiling fans should be free of dust buildup. Check the tops of wardrobes and kitchen cupboards, which are frequently missed during standard cleaning routines.

Mould and Mildew Look for mould in high moisture areas including bathrooms, laundries, and silicon sealant around showers and baths. Mould appears as black, white, or speckled discolouration on grout, ceilings, and walls. Refer to the Australian Standard AS 4321.2-2001 (Guide to hazardous building materials) regarding safe identification if necessary. While tenants are generally responsible for cleaning normal mould, they are not liable for mould caused by structural faults. Document the location and extent of the mould clearly. Note if the mould is on the ceiling, which may indicate a ventilation or leak issue, versus on the grout, which is usually a cleaning failure.

Waste Removal Check all rooms, including the garage, garden shed, and under the house. The property must be completely vacant of personal goods and rubbish. Remove items left in cupboards or on the floor. Inspect the exterior for green waste, building materials, or general refuse. Bins must be empty and returned to the correct designated position. Ensure no hazardous waste or chemicals have been abandoned on the site. Record any waste that requires removal or disposal costs.

Required

Damage Summary

List of physical damages beyond wear and tear.

Damage Summary

Record all specific damage to the property here. This section is for documenting issues that go beyond Fair Wear and Tear. It is critical to distinguish between the gradual deterioration of a property due to normal use and actual damage caused by negligence, misuse, or accidents.

Fair Wear and Tear Under residential tenancy laws across Australia, including the Residential Tenancies Act 1997 (Vic), Residential Tenancies Act 2010 (NSW), and the Residential Tenancies and Rooming Accommodation Act 2008 (Qld), tenants are not liable for reasonable wear and tear. This includes scuff marks on floors, fading paint due to sunlight, or carpet wear in high-traffic areas. Do not list these items in the Damage Summary if they are solely the result of ageing and normal living.

Identifying Damage List items here only if they are the result of negligence, abuse, or deliberate acts by the tenant or their guests. This includes physical damage that affects the function or appearance of the property beyond what is expected over time.

Common Examples of Reportable Damage

  • Walls and Ceilings: Holes from excessive picture hanging, large dents from moving furniture, or unauthorized paint colours that require repainting.
  • Floors: Deep scratches, burns in carpet or floorboards, or missing tiles caused by impact or neglect.
  • Glass and Fixtures: Cracked window panes, shattered shower screens, or broken light globes.
  • Fixtures and Fittings: Missing door handles, bent curtain rods, or blinds that have been ripped from the wall.
  • Stains and Spills: Significant carpet stains from wine, pet urine, or other substances that cannot be removed through standard cleaning.

Evidence and Standards To claim compensation for these items, you must provide clear evidence. This section should be supported by photographs, video evidence, and detailed written descriptions. The cleaning or repair required must restore the item to a condition consistent with its age and value, not necessarily to brand new condition. However, for severe damage like broken glass, the standard generally requires full replacement.

Dispute Resolution If a tenant disputes the items listed in this section, you may need to rely on this report during tribunal hearings. Be precise. Instead of writing "dirty carpet," specify "large red wine stain on lounge room carpet." This specificity helps the relevant state civil and administrative tribunal determine if the damage constitutes a breach of the tenancy agreement or if it falls under legitimate Fair Wear and Tear.

Required

Signatures and Declarations

Legal acknowledgment of the report.

Landlord or Agent Declaration

I declare that the information recorded in this Exit Condition Report is true and correct to the best of my knowledge and belief. I have completed this report in good faith, assessing the property against the condition recorded in the ingoing report. I acknowledge that this report forms part of the tenancy agreement and may be used as evidence in a dispute regarding the bond refund. By signing below, I accept that the tenant has returned the keys and possession of the premises, subject to the condition noted herein.

Landlord or Agent Signature: __________________________

Print Name: __________________________

Date: ____ / ____ / ________


Tenant Declaration

I declare that the information recorded in this Exit Condition Report is true and correct to the best of my knowledge and belief. I acknowledge that I have been given a reasonable opportunity to inspect the property and add my comments to this document. I understand that failing to return this signed document to the landlord or agent within the timeframe required by the relevant Residential Tenancies Act may result in the landlord or agent’s assessment of the property being accepted as accurate.

I understand that under the Residential Tenancies Act 1997 (Victoria), Residential Tenancies Act 2010 (NSW), or the relevant Act for my state or territory, the bond refund relies on the agreement of both parties regarding the condition of the property. If I disagree with the content of this report, I must detail my specific disagreements in the space provided or attach a separate written statement before signing.

Tenant Signature: __________________________

Print Name: __________________________

Date: ____ / ____ / ________


Practical Guidance for Signatures

This section is the final step in your dispute prevention process. Accurate dates and clear signatures are vital.

Under Australian state and territory legislation, such as the Residential Tenancies and Rooming Accommodation Act 2008 (QLD) or the Residential Tenancies Act 1995 (SA), the tenant usually has a specific period to review and dispute the Exit Condition Report. For example, in many jurisdictions, tenants have between 3 and 14 days to return their signed copy. If they fail to do so, you generally have the right to rely on your own assessment of the property.

Ensure the date fields are filled out immediately upon signing. The date establishes the timeline for the return of the bond money. It is common practice to provide two copies of the report. One copy is for the landlord records and the other is for the tenant. If the tenant refuses to sign, you should note the date you provided the report to them on your copy and keep proof of delivery, such as an email receipt or recorded delivery post.

Do not leave the signature line blank if you are acting as an agent. You must clearly print your name and the agency name to identify who is accepting the report. This clarity is required if the matter proceeds to a tribunal hearing, such as the Victorian Civil and Administrative Tribunal (VCAT) or the NSW Civil and Administrative Tribunal (NCAT), to prove the validity of the document.

Required

Frequently Asked Questions

What is a Exit Condition Report?
An Exit Condition Report is a document that records the state of a rental property when a tenant moves out. It compares the current condition to the initial entry report to identify damage or cleaning issues.
When do I need a Exit Condition Report?
You need this report immediately after a tenant vacates the premises and hands back the keys. It must be done before any bond money is released or deducted.
Is a Exit Condition Report legally required in Australia?
Yes, most state Residential Tenancies Acts require a landlord or agent to provide a condition report to support any claim against the security bond. It is the primary evidence in tribunal disputes.
Who pays for the Exit Condition Report?
Usually the landlord or property manager prepares and pays for the report. If a private tenant wants an independent report, they would pay for it themselves.
What happens if I disagree with the report?
If you disagree with the report, you can note your disputes on the document and sign it. If the landlord claims bond money based on those items, you can apply to the state tribunal for a hearing.
Can I charge a tenant for fair wear and tear?
No. Australian tenancy laws state that landlords cannot charge tenants for fair wear and tear. This includes things like fading paint or carpet wear from walking.
What should I do if the tenant refuses to sign?
If the tenant refuses to sign, you should note this on the report and send them a copy via registered post. The report remains valid evidence of the property condition.
How long does a tenant have to respond to the report?
Timeframes vary by state but generally tenants have between 7 and 14 days to review the report and return their comments.

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