Condition Report NSW — Complete Guide for Self-Managing Landlords

If you’re a self-managing landlord in New South Wales, the condition report is one of the most important documents you’ll complete. It records the state of your property at the start and end of every tenancy, and it is your primary evidence in any bond dispute. Get it wrong — or skip it — and you may have no grounds to claim for damage, no matter how obvious it is.

Under the Residential Tenancies Act 2010 (NSW), every residential tenancy requires a condition report in the prescribed form. This isn’t optional. It must be completed whether or not a rental bond is paid, and there are penalties for landlords who fail to provide it.

In this guide, we’ll cover what the law requires, how the prescribed form works, what each section means, common mistakes that cost landlords money, how the condition report connects to bond disputes at the end of the tenancy, and how Landlord Wise helps turn inspection photos and notes into written condition descriptions you can review.

Landlord Wise is opening NSW condition reports during early access. Self-managing landlords can register free, capture room-by-room photos, generate AI-assisted written descriptions, and keep the written report and supporting photo evidence together in one workflow.

If you’re setting up a new tenancy, read this alongside our NSW lease agreement guide and NSW rental bond guide. For the broader tenancy law framework behind the paperwork, see our NSW residential tenancies act guide.

What Is the Condition Report?

The condition report is a prescribed form that records the condition of a rental property at the start and end of a tenancy. In NSW, the official form is the “Residential tenancy condition report” set out in Schedule 2 of the Residential Tenancies Regulation 2019.

It is not a generic checklist you download from the internet. The prescribed form has a specific structure with room-by-room sections, compliance checklists for minimum standards, health issues, smoke alarms, safety, communications, and water efficiency — all of which the landlord is required to complete.

The condition report serves two core purposes. First, it establishes a baseline record of the property’s condition when the tenant moves in. Second, it provides the evidentiary foundation for any bond claim at the end of the tenancy. Under Section 30 of the Act, a condition report signed by both the landlord and the tenant is presumed to be a correct statement of the property’s condition on the day it was completed — unless there is evidence to the contrary, or the tenant noted a written disagreement on their copy.

Without a properly completed condition report, you are in a significantly weaker position in any bond dispute at NCAT (the NSW Civil and Administrative Tribunal). This is the single most common reason landlords lose bond claims.

Your Legal Obligations as a Landlord

Section 29 of the Residential Tenancies Act 2010 sets out the condition report obligations. Here’s what you are required to do at each stage.

Before the Tenancy Starts

There are two distinct obligations under Section 29, each with slightly different timing.

Under Section 29(1), the condition report must be completed before or when the tenancy agreement is given to the tenant for signing. This means physically going through the property room by room, recording whether each item is clean, undamaged, and working, and completing the compliance sections covering minimum standards, health issues, smoke alarms, safety, communications, and water efficiency.

Under Section 29(2), you must give the tenant two copies, or one electronic copy, of the completed report before or at the time the tenant signs the tenancy agreement. You keep a third copy (or your own electronic copy). The maximum penalty for failing to provide the condition report is 20 penalty units.

Within 7 Days of the Tenant Moving In

After taking possession, the tenant must inspect the property and complete their section of the condition report. The tenant marks whether they agree or disagree with your assessment of each item by placing “Y” or “N” in the tenant column, and adds any comments where they disagree.

The tenant must return one completed copy to you within 7 days of taking possession and keep the other copy. However — and this is important — the tenant is not required to do this if you failed to provide them with the condition report in the first place. If you didn’t meet your obligation under Section 29(2), the tenant has no obligation under Section 29(3).

If the Tenant Doesn’t Return It

If the tenant does not return the condition report within 7 days and you did provide it correctly, the report is presumed to be a correct statement of the property’s condition under Section 30 — but this is a rebuttable presumption, not deemed acceptance. The tenant can still challenge the report’s accuracy with other evidence. However, without written comments on record, their position is significantly weaker.

This sounds like it works in your favour, and it generally does — but it only applies if you provided the report properly in the first place. Document when you gave it to the tenant and keep proof of delivery.

At the End of the Tenancy

At, or as soon as reasonably practicable after, the termination of the tenancy, both parties must complete the end-of-tenancy section of the condition report. This should be done in the presence of the other party.

It is not a breach of this requirement to complete the report without the other party present — but only if you gave them a reasonable opportunity to attend. In practice, this means offering at least one or two proposed inspection times and keeping a record of the communication. If you complete it without giving the tenant a chance to be there, the report carries less weight in any subsequent dispute.

What the Prescribed Form Covers

The NSW condition report is more than a room-by-room checklist. It includes several compliance sections that many self-managing landlords overlook. Here’s what the form covers and why each section matters.

Room-by-Room Condition Assessment

The main body of the form lists rooms and items within each room. For every item, you indicate whether it is clean, undamaged, and working by marking “Y” (yes) or “N” (no) in the appropriate column. Where you mark “N” for anything, you should add a written comment describing the issue.

The form covers the entrance/hall, lounge room, dining room, kitchen, bedrooms, bathroom, toilet, laundry, and general/external areas. Each room lists common items like walls, doors, windows, ceiling, light fittings, floor coverings, blinds, power points, and skirting boards.

If your property has rooms or features not listed on the form — such as a study, rumpus room, or granny flat — you can attach additional pages. All attachments should be signed and dated by both parties.

Minimum Standards

This section requires you to confirm whether the property meets minimum habitability standards. It covers structural soundness (floors, walls, ceilings, foundations, doors, windows, roof, stairs, balconies — all in reasonable repair and not liable to collapse), adequate lighting and ventilation, electricity and gas supply, plumbing and drainage, water supply capable of providing hot and cold water for drinking, ablution (personal hygiene such as bathing), and cleaning activities, and bathroom facilities with privacy.

These are not optional extras — they are legal requirements. If the property does not meet minimum standards, the tenancy agreement may still be valid, but you are in breach of your obligations and the tenant can apply to NCAT for orders requiring you to bring the property up to standard.

Health Issues

You must indicate whether there are any signs of mould and dampness, pests and vermin, rubbish left on the premises, or whether the premises are listed on the Loose-Fill Asbestos Insulation Register.

The asbestos question is particularly important. If your property is listed on the register, you have separate disclosure obligations under the tenancy agreement and the Act. Answering “no” when the property is listed exposes you to serious consequences.

Smoke Alarms

You must confirm whether smoke alarms are installed in accordance with the Environmental Planning and Assessment Act 1979, whether they have been checked and found to be in working order (with the date last checked), whether removable batteries have been replaced within the last 12 months (excluding lithium batteries), and whether lithium battery replacements are current per the manufacturer’s specifications.

Under Section 64A of the Residential Tenancies Act 2010, “repairs” to a smoke alarm (which includes a heat alarm) includes maintaining it in working order by installing or replacing a battery. The landlord is responsible for ensuring smoke alarms are compliant at the start of the tenancy and for ongoing maintenance, including annual replacement of removable batteries (clause 42.3 of the standard agreement and clause 20 of the Regulation). The tenant may choose to replace a removable battery if needed, but this is optional — the obligation sits with the landlord. If your property is part of a strata scheme where the owners corporation is responsible for smoke alarm maintenance, these landlord obligations may not apply to you (clause 21 of the Regulation).

Other Safety Issues

You must report any visible signs of damaged appliances (if appliances are included in the tenancy), visible electrical hazards such as loose or damaged outlet sockets, loose wiring, or sparking power points, and visible gas hazards such as loose or damaged gas outlets or open-ended gas pipes or valves.

Communications Facilities

You must indicate whether a telephone line and internet line are connected to the premises. This is a factual record — it does not create an obligation for you to provide these services, but it documents what is available at the start of the tenancy.

Water Usage Charging and Efficiency Devices

This section only applies if the tenant is required to pay water usage charges under the tenancy agreement. If it applies, you must confirm whether the premises are separately metered and whether the property meets the required water efficiency standards: all showerheads have a maximum flow rate of 9 litres per minute, all toilets are dual flush with a minimum 3-star WELS rating (required from 23 March 2025), all internal cold water taps and single mixer taps in kitchen sinks or bathroom hand basins have a maximum flow rate of 9 litres per minute, and the premises have been checked for leaking taps or toilets.

This matters because you can only charge the tenant for water usage if the property meets these efficiency requirements. If you tick “yes” to water charges in the tenancy agreement but the property doesn’t comply with the water efficiency measures, the tenant can challenge the charges.

The form also records the water meter reading at the start and end of the tenancy.

Photographs and Video Recordings

The form includes a section for attaching photographs or video recordings. While these are recommended, the form makes an important point: photographs and video recordings are not a substitute for accurate written descriptions of the condition of the premises.

If you take photos or videos, they should be verified and dated by both parties. Photographs can be attached in hard copy or electronically. Video recordings should be attached electronically.

In practice, photographs are extremely valuable evidence in bond disputes — but they must supplement the written report, not replace it. A photo of a clean kitchen with no written description won’t help you if the dispute is about whether the oven was working.

Landlord Wise keeps that distinction clear. The app helps you take or upload photos room by room, then uses AI to draft specific written descriptions based on those photos. You review and edit every description before relying on it, and the photos remain supporting evidence rather than a replacement for the prescribed written report.

Approximate Dates of Previous Work

The form asks for approximate dates of when work was last done on the property, covering smoke alarm installation, repair, or maintenance, external painting, internal painting, and flooring being laid, replaced, or cleaned.

This information helps establish context. If you record that the carpet was replaced six months ago and the tenant returns the property with significant carpet damage after a 12-month tenancy, the dates support your claim. If the carpet was 15 years old, a claim for full replacement cost will be reduced by depreciation.

Landlord’s Promise to Undertake Work

If there is any cleaning, repairs, additions, or other work you have agreed to complete during the tenancy, it should be recorded here with a completion date and your signature. This creates a binding commitment — if you promise to fix the leaking tap by a certain date and don’t, the tenant has a documented basis for complaint.

Only include work you are genuinely committed to completing. Do not use this section to make vague promises you don’t intend to keep.

Furniture

If the tenancy includes furniture or furnishings, the form has a section for attaching a furniture list. If your property is furnished or partly furnished, you should list every item of furniture included in the tenancy and note its condition. This list, attached to the condition report, becomes part of the evidentiary record — and is essential if you need to claim for damage to furnishings at the end of the tenancy.

Additional Comments

The form includes a section for additional comments on minimum standards, health issues, smoke alarms, other safety issues, communications facilities, and water usage charging and efficiency devices. Either party — landlord or tenant — can add further comments here. This is a useful space for recording anything that doesn’t fit neatly into the structured sections of the form, or for expanding on a “no” answer in the compliance sections.

Tenant Review of Compliance Sections

Each compliance section of the form — minimum standards, health issues, smoke alarms, and other safety issues — includes a question asking whether the tenant agrees with the landlord’s responses. This means these sections are not landlord-only: the tenant also reviews and can disagree with your compliance answers, not just the room-by-room condition entries. Make sure you present the full form to the tenant for review, including these sections.

Fair Wear and Tear — What It Means for Your Condition Report

One of the most misunderstood concepts in tenancy law is fair wear and tear. Getting it wrong leads to failed bond claims and unnecessary disputes.

Fair wear and tear is the gradual deterioration that occurs from normal, reasonable use of the property over time — even when the property receives reasonable care and maintenance. It is not the tenant’s responsibility, and you cannot claim from the bond for it.

Examples of fair wear and tear: faded curtains from sun exposure, minor scuffs on walls from normal movement through the property, worn carpet in high-traffic areas like hallways, small marks around light switches, slight discolouration of grout in bathrooms, and minor scratches on floorboards from everyday furniture use.

Examples of damage beyond fair wear and tear: holes punched or kicked in walls, burns on carpet or benchtops, broken window glass, stained carpet from spilled paint or dye, doors ripped off hinges, mould caused by the tenant failing to ventilate properly, and pet damage to floors or gardens.

The condition report is how you distinguish between the two. At the end of the tenancy, you compare the property’s current condition to what was recorded at the start. If an item was marked as clean, undamaged, and working at the start and is now damaged beyond what normal use would produce, you have a basis for a bond claim. If the item was already damaged at the start or the deterioration is consistent with normal use over the tenancy period, you don’t.

Depreciation matters. Even when damage is clearly the tenant’s fault, you cannot claim “new for old.” If a 10-year-old carpet needs replacing because of tenant damage, the claim must account for the carpet’s age and remaining useful life. NCAT will apply depreciation to damage claims.

How the Condition Report Connects to Bond Disputes

The condition report is the foundation of the bond claim process in NSW. Here’s how it works.

At the end of the tenancy, the landlord compares the property’s condition to the start-of-tenancy condition report. Under Section 166(1) of the Act, a landlord can claim from the bond for the reasonable cost of repairs for damage beyond fair wear and tear, any rent or other charges owing, the reasonable cost of cleaning any part of the premises not left reasonably clean (having regard to its condition at the start), the reasonable cost of replacing locks or security devices altered without consent, and any other amounts prescribed by the regulations.

Under Section 30 of the Act, the condition report signed by both parties is presumed to be a correct statement of the property’s condition at the start. This presumption does not apply to matters that could not have reasonably been discovered on a reasonable inspection, or to any item where the tenant made a written disagreement on their copy of the report.

This is why accuracy at the start matters so much. If you mark every item as “clean, undamaged, working” without actually checking, and the property already had a cracked window or stained carpet, you’ve created a baseline that works against you. The tenant can point to your own report and say: “the landlord confirmed this was fine at the start.”

If you and the tenant cannot agree on the bond, either party can apply to NCAT for a decision. The condition report, along with photographs and any other evidence, is the primary material NCAT will consider. A landlord with a thorough, accurate condition report and supporting photographs is in a fundamentally stronger position than one with a hastily completed checklist and no photos.

For more detail on the bond claim process, see our Rental Bond NSW guide.

Step-by-Step: How to Complete the Condition Report

Here’s how to complete the condition report properly, from start to finish.

Step 1: Inspect the Property Before or When the Agreement Is Given for Signing

Walk through every room of the property with the prescribed form. For each item listed in the form, assess whether it is clean, undamaged, and working. Mark “Y” or “N” in the appropriate columns.

Where you mark “N” — or where there is any notable feature or issue — write a clear, specific comment. “Some wear” is not useful. “Two small nail holes above the window, approximately 5mm each” is useful. “Carpet stain near the door, roughly 15cm diameter, light brown” is useful.

Be honest. Marking everything as perfect when it isn’t sets you up for problems at the end of the tenancy.

Step 2: Complete the Compliance Sections

Work through the minimum standards, health issues, smoke alarms, other safety issues, communications facilities, and water usage sections. These require “yes” or “no” answers — do not skip them. If any answer is “no,” add a comment explaining the situation.

Step 3: Take Photographs

Photograph every room from multiple angles. Photograph any specific damage, wear, or notable features close up. Include wide shots that show the overall condition and detail shots that show specific items.

Ensure photographs are dated. If possible, have the tenant verify the photos. Attach them to the condition report — in hard copy or electronically — under the photographs section of the form.

Remember: photographs supplement the written descriptions, they do not replace them.

In Landlord Wise, the AI can use your room-by-room photos and quick notes to draft the written comments faster. You still make the final call before the report is finalised, which keeps the record practical for NCAT-style evidence while saving the most time-consuming part of the inspection.

Step 4: Sign and Provide Copies to the Tenant

Sign the condition report and provide the tenant with two copies or one electronic copy before or at the time they sign the tenancy agreement. Keep your own copy.

Step 5: Wait for the Tenant’s Response

The tenant has 7 days after taking possession to inspect the property, complete their section of the condition report, and return one copy to you. The tenant may agree with your assessment, disagree and add comments, or note items you missed.

If the tenant disagrees with anything, their written comments become part of the record. Under Section 30(2)(b), the evidentiary presumption that the report is correct does not apply to any statement about which the tenant has made a written dissenting comment.

If the tenant does not return the report within 7 days and you provided it correctly, the report is presumed to be accepted.

Step 6: Complete the End-of-Tenancy Report

At, or as soon as practicable after, the termination of the tenancy, go through the property again using the retained copy of the condition report. Complete the end-of-tenancy columns, noting the current condition of each item.

Give the tenant a reasonable opportunity to be present. Document your attempts to arrange the inspection — this protects you if the tenant doesn’t attend.

Compare the start-of-tenancy and end-of-tenancy entries. Any deterioration beyond fair wear and tear, supported by your original documentation and photographs, forms the basis of a bond claim.

If the tenancy continues and the rent changes later, see our NSW rent increase guide guide. Where the tenancy ends because of a notice or early departure, pair this page with our NSW eviction notice guide and NSW break lease guide guides.

Common Mistakes Landlords Make with the Condition Report

These are the errors that cost self-managing landlords the most — in bond disputes, at NCAT, and in their ongoing relationship with tenants.

Not Completing a Condition Report at All

Some landlords, particularly those who are self-managing for the first time, assume the condition report is optional or only necessary if there’s a bond. It is required for every residential tenancy in NSW — whether or not a bond is paid. Failing to provide it carries a penalty of up to 20 penalty units and leaves you with no documented baseline for the property’s condition.

Providing the Report After the Tenant Signs

The Act requires you to give the condition report to the tenant before or at the time the tenant signs the tenancy agreement. If you provide it after signing, you’ve breached Section 29(2). This may not invalidate the tenancy, but it weakens your position if the tenant later challenges the report’s accuracy and it can attract penalties.

Rushing the Inspection

Marking every item as “Y, Y, Y” (clean, undamaged, working) without actually inspecting properly is one of the most damaging shortcuts a landlord can take. At the end of the tenancy, when you want to claim for a cracked tile or a stained benchtop, the tenant will point to your own report showing everything was apparently perfect at the start. Take the time to inspect carefully and describe what you actually see.

Vague or Missing Comments

“Some damage” or “general wear” tells nobody anything useful. Be specific: describe the type of damage, its location, its size, and any other detail that would allow someone who wasn’t there to understand what the item looked like. Specific descriptions hold up at NCAT. Vague ones don’t.

Not Taking Photographs

While photographs are recommended rather than mandatory, a condition report without photographs is significantly weaker evidence in a bond dispute. Photographs corroborate your written descriptions and make it much harder for a tenant to dispute your account of the property’s condition at the start.

Skipping the Compliance Sections

The minimum standards, health issues, smoke alarms, safety, communications, and water efficiency sections are part of the prescribed form for a reason. Skipping them doesn’t just leave gaps in your report — it can create legal problems. If you didn’t check and record the smoke alarm status, and there’s later an incident, you have no documentation that you met your obligations.

Not Completing the End-of-Tenancy Report

Some landlords complete the start-of-tenancy report diligently but then skip the end-of-tenancy process. Without the end-of-tenancy report, you have no documented comparison between the property’s condition at the start and end of the tenancy. This makes bond claims much harder to support at NCAT.

Not Giving the Tenant a Chance to Attend the Final Inspection

If you complete the end-of-tenancy report without giving the tenant a reasonable opportunity to be present, the report carries less weight. Always offer at least one proposed time, preferably two, and keep a written record of the communication.

Resolving Disputes About the Condition Report

If you and the tenant disagree about what the condition report should say — at the start or end of the tenancy — either party can apply to NCAT for an order under Section 31 of the Act.

NCAT can order that the condition report must be amended, or that it is not required to be amended. This provides a formal resolution process, though in practice most disagreements are resolved through direct communication between the parties rather than a tribunal application.

If the dispute is ultimately about the bond rather than the report itself, the bond claim process under Part 4 of the Act applies. For that process, see our Rental Bond NSW guide.

Frequently Asked Questions About Condition Reports in NSW

Do I need to complete a condition report in NSW? Yes. Under Section 29 of the Residential Tenancies Act 2010, a condition report must be completed for every residential tenancy in NSW. This applies whether or not a rental bond is paid. The report must use the prescribed form set out in Schedule 2 of the Residential Tenancies Regulation 2019.

When do I need to give the condition report to the tenant? You must give the tenant two copies, or one electronic copy, of the completed condition report before or at the time the tenant signs the tenancy agreement. The maximum penalty for failing to do so is 20 penalty units.

How long does the tenant have to return the condition report? The tenant has 7 days after taking possession of the property to complete their section and return one copy to you. If the tenant doesn’t return it within 7 days and you provided it correctly, the report is presumed to be correct under Section 30 — though this is a rebuttable presumption and the tenant can still challenge it with other evidence.

What happens if I don’t provide the condition report? You face a penalty of up to 20 penalty units. More practically, without a condition report the tenant has no obligation to complete and return one, and you lose your primary evidence for any bond claim at the end of the tenancy.

Can I use my own template instead of the prescribed form? No. The condition report must be in the form prescribed by the regulations — the Schedule 2 form under the Residential Tenancies Regulation 2019. A generic template or your own checklist is not legally sufficient. You can download the prescribed form from the NSW Fair Trading website.

Are photographs required? Photographs are recommended but not mandatory. However, the prescribed form explicitly states that photographs and video recordings are not a substitute for accurate written descriptions. In practice, photographs significantly strengthen your position in any bond dispute and should always be taken.

Can I use AI-generated descriptions on a NSW condition report? Yes. NSW law requires a prescribed condition report with accurate written descriptions where needed; it does not prescribe who or what drafts those words. Landlord Wise uses AI to analyse your inspection photos and suggest specific written descriptions, then you review and approve the wording before finalising the report.

What is fair wear and tear? Fair wear and tear is the gradual deterioration that occurs from normal, reasonable use of the property over time. Faded curtains, minor wall scuffs, and worn carpet in high-traffic areas are typical examples. You cannot claim from the bond for fair wear and tear — only for damage that goes beyond normal use. The condition report is the key document for distinguishing between the two.

What if the tenant disagrees with the condition report? The tenant can note their disagreement in the tenant comments section of the report. Under Section 30(2)(b) of the Act, the presumption that the report is correct does not apply to any item where the tenant has made a written dissenting comment. If the disagreement can’t be resolved directly, either party can apply to NCAT under Section 31 for an order.

Do I need to do a final inspection at the end of the tenancy? Yes. Under Section 29(4), both the landlord and the tenant must complete the end-of-tenancy section of the condition report at, or as soon as reasonably practicable after, the termination of the tenancy. This should be done in the presence of the other party. It is not a breach to complete it without the other party present, but only if you gave them a reasonable opportunity to attend.

How does the condition report connect to bond disputes? The condition report is your primary evidence in any bond claim. At the end of the tenancy, you compare the property’s current condition to what was recorded at the start. Any damage beyond fair wear and tear, supported by the condition report and photographs, forms the basis of a claim against the bond. Under Section 30, a condition report signed by both parties is presumed correct — making it the most important document in a bond dispute. For the full bond process, see our Rental Bond NSW guide.

Where can I get help with the condition report? Contact NSW Fair Trading on 13 32 20 or visit fairtrading.nsw.gov.au for more information about condition reports and your rights and obligations as a landlord. For tenancy disputes, you can apply to NCAT.

Summary

The condition report is not just a form to fill out — it is the evidentiary foundation of your tenancy. Every bond claim, every damage dispute, every disagreement about the property’s condition comes back to this document. A thorough, accurate condition report completed at the start of the tenancy, supported by photographs and completed again at the end, puts you in the strongest possible position to protect your property and recover costs where a tenant has caused damage beyond fair wear and tear.

Take the time to do it properly. Be honest. Be specific. Take photos. And keep your copies safe — you may need them months or years later.

For more on how the condition report connects to the broader tenancy framework, see our Lease Agreement NSW guide and Rental Bond NSW guide.

Related guides for NSW landlords

If you are building out the full landlord workflow for this state, these guides connect this page to the rest of the tenancy process.

Same-state guides

• NSW lease agreement guide
• NSW rental bond guide
• NSW eviction notice guide
• NSW break lease guide
• NSW residential tenancies act guide

Compare condition report guides in other states

• WA property condition report guide
• QLD condition report guide
• VIC condition report guide