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tenancy

How to properly document a property condition report

Key Takeaway

In New Zealand, property condition reports are mandatory documents detailing the state of a rental property at the start and end of a tenancy. Landlords must provide them, and tenants have an opportunity to review and agree to them. These reports serve as crucial evidence in case of disputes over property damage or cleanliness during the tenancy, ensuring clarity and fairness for both parties.

Understanding Property Condition Reports in New Zealand

A property condition report is a written record that describes the state of a rental property, including any fixtures and chattels (movable items not permanently attached to the property, like furniture or appliances), at the beginning and end of a tenancy. Its primary purpose is to provide clear evidence of the property's condition to help resolve potential disputes between a landlord and a tenant regarding damage or cleanliness.

A landlord is the owner of a property who leases it to a tenant, and a tenant is an individual who rents a property from a landlord.

Obligation to Provide a Property Condition Report

Landlords in New Zealand have a legal obligation to prepare and provide property condition reports to their tenants:

  • At the start of the tenancy: The landlord must provide the tenant with a property condition report for the premises. This report must be given to the tenant at the start of the tenancy or as soon as practicable afterwards [Source: Residential Tenancies Act 1986, s 66L(1)].
  • At the end of the tenancy: The landlord must also provide a property condition report to the tenant for the premises at the end of the tenancy or as soon as practicable afterwards [Source: Residential Tenancies Act 1986, s 66L(2)]. This allows for a comparison between the property's state at the beginning and end of the rental period.

Contents of a Property Condition Report

To be effective, a property condition report must be comprehensive and detailed. It should clearly describe the state of the premises, including [Source: Residential Tenancies Act 1986, s 66L(3)]:

  • The description of the premises.
  • Any fixtures (items permanently attached to the property, such as built-in wardrobes or light fittings).
  • Any chattels that the landlord provides with the premises.
  • The general state of repair and cleanliness of the premises, fixtures, and chattels.
  • Any damage to the premises, fixtures, or chattels.

While the Residential Tenancies Act 1986 specifies written details, including photographic or video evidence is highly recommended as best practice. These visual records provide undeniable proof of the property's condition, supplementing the written descriptions and significantly strengthening any future claims or defences regarding damage.

Process of Completing and Agreeing to the Report

The process for finalising a property condition report involves both the landlord and the tenant:

  1. Landlord provides the report: The landlord prepares the report and provides it to the tenant [Source: Residential Tenancies Act 1986, s 66M(1)].
  2. Tenant reviews and signs: The tenant must review the report and, if they agree with its contents, sign it and return it to the landlord within 7 days of receiving it [Source: Residential Tenancies Act 1986, s 66M(2)].
  3. Disagreement or non-return: If the tenant does not agree with any part of the report, they must note their disagreement on the report, sign it, and return it to the landlord within 7 days [Source: Residential Tenancies Act 1986, s 66M(3)]. If the tenant does not return the report within 7 days, it is considered that they have agreed to the report as provided by the landlord [Source: Residential Tenancies Act 1986, s 66M(4)].
  4. Landlord's response to disagreement: If the tenant notes a disagreement, the landlord must attempt to reach an agreement with the tenant on the disputed items and amend the report accordingly [Source: Residential Tenancies Act 1986, s 66M(5)].

Importance of the Property Condition Report

A well-documented and agreed-upon property condition report is crucial evidence for both landlords and tenants. It acts as the benchmark against which the property's condition at the end of the tenancy is compared. Without a detailed report, it can be very difficult for a landlord to claim for damage beyond normal wear and tear, or for a tenant to dispute a landlord's claim for damages.

Disputes Regarding Property Condition Reports

If the landlord and tenant cannot agree on the contents of a property condition report, or if there is a dispute about the condition of the premises at the end of the tenancy, either party may apply to the Tenancy Tribunal for a resolution. The Tenancy Tribunal is a judicial body that resolves disputes between landlords and tenants. The Tribunal will consider all available evidence, including the property condition reports, photographs, and witness testimonies, to make a decision [Source: Residential Tenancies Act 1986, s 66N and s 66P].

When to Seek Independent Legal Advice

If you have specific concerns about a property condition report, are unsure about your obligations, or are involved in a dispute with a landlord or tenant, it is advisable to seek independent legal advice. Information can be obtained from Tenancy Services, or you may contact Community Law Centres throughout New Zealand for free legal assistance on tenancy matters.

Key Resources