Monday, April 1, 2013

How to Create a Fool-Proof Condition Report.


Do you have a comprehensive, clear and fool-proof Condition Report (otherwise known as a walkthrough Checklist)? 

The walk-through checklist is very important, as it can be used as evidence at a later date if there is a dispute between tenants and landlords when the property is vacated.  It also can clear up any misunderstandings at the end of the tenancy as to who is responsible for cleaning, what items are required to be returned, replaced or left with the property.

It is vital that this report is thoroughly gone through and both owner (property manager) and tenants agree on the contents of the Condition Report BEFORE signing it.

Here is an example for you to look at. You will notice a few key features:

  • The checklist is divided into rooms
  • There is an area for landlord comments and an area for tenant comments
  • Each room has a comprehensive list of items plus space for items that may need to be written in.
Tips for the walk through:
  • Consider taking a camera, or a video camera with you. Take photos of damage. Make sure both parties have a copy.
  • It's easier to start from the ground up. Look at the flooring first - stains, marks, worn areas, chips, cracks - depending on the flooring material.
  • Move up to the walls. Look for cracks, chips, marks and holes - look closely for nail holes.
  • Woodwork. Look at cabinets and door jambs , are there any chips or marks? Are they all in good working condition? Don't forget to took at the hardware. Look inside cabinets and closets to inspect flooring and internal condition also.
  • Fixtures. Look at sinks, taps, light switches light shades. Is everything working as expected?
  • Appliances. If you are providing appliances, such as a dishwasher or a waste disposal, make sure it is working properly. Any air-conditioning units need to be inspected.
  • Garden. Look at the landscaping and see if there are large holes in the ground, holes in fences etc.
Going through this check serves another purpose also. Not only is it delegating responsibility but also lets you know what will need to be worked on before a new tenant moves in.

What do you use as a condition report? Have you used this to your advantage?

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