Rental Condition Report VIC: Guide for Landlords

This guide is about residential rental condition reports in Victoria for rental providers, landlords, and renters. It does not cover building condition reports, pre-purchase inspection reports, commercial property reports, or general property management inspections.

If you’re a self-managing landlord in Victoria, the condition report is the single most important document you’ll rely on when your tenancy ends. It’s the foundation of every bond claim, every cleaning dispute, and every damage argument at VCAT. Get it wrong — or skip it — and you’ll have almost no evidence to support a claim against the bond, no matter how obvious the damage is.

Under the Residential Tenancies Act 1997, every residential rental agreement in Victoria must have a condition report completed in the prescribed form before the renter moves in. This isn’t optional. Failing to provide one carries a penalty of up to 25 penalty units, and more importantly, it undermines your ability to recover costs at the end of the tenancy.

In this guide, we’ll cover what a condition report is, exactly when and how it must be completed, what the prescribed template requires, how to handle the exit inspection, the rules around fair wear and tear and professional cleaning, how to use the report in bond claims, and the mistakes that cost landlords the most at VCAT.

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

What Is a Condition Report?

A condition report is a formal record of a property’s condition at the start of a residential rental agreement. It documents whether each room, fixture, fitting, and area of the property — inside and outside — is clean, undamaged, and working. The same report is then updated at the end of the tenancy to record the exit condition, creating a before-and-after comparison that forms the basis of any bond claim.

Under Section 35(1B) of the Residential Tenancies Act 1997, the condition report must be completed using the prescribed Form 4, which is set out in Schedule 1 of the Residential Tenancies Regulations 2021 (Regulation 18). You cannot use a generic template, your own spreadsheet, or an app that doesn’t follow the prescribed format.

The legal weight of the condition report is significant. Under Section 36(1) of the Act, a statement in a condition report that is signed by both the rental provider and the renter is conclusive evidence of the property’s condition on the day specified in the report. That means if both parties signed it, neither can later argue in a VCAT hearing that the report was wrong — unless the defect couldn’t reasonably have been discovered during a reasonable inspection (Section 36(2)(a)).

This is why the condition report matters more than photos alone. Photos are helpful supporting evidence, but a signed condition report is legally conclusive.

This guide covers standard residential rental agreements. Condition reports are also required for rooming houses (Section 97), caravan parks (Section 148), and Part 4A sites (Section 206O) under separate sections of the Act.

The Prescribed Form (Form 4)

The condition report template is officially called Form 4 and is published by Consumer Affairs Victoria. It is structured in three parts.

Part A contains the party details: the date of the report, the property address, the rental provider’s name, the agent’s name (if applicable), and the renter’s name(s). It also includes the important notes about how to complete the report and how to take and attach photographs.

Part B is the start-of-tenancy condition report. This is the main body of the document and is structured as a room-by-room checklist. For each room and item, the rental provider ticks whether the item is clean, undamaged, and working (or marks it N/A), and adds comments describing any issues. The renter then reviews each item, indicates whether they agree or disagree, and adds their own comments and photos.

The rooms and categories covered in Form 4 include: entrance hall, lounge/dining room, kitchen, bedroom (repeated for each bedroom), bathroom (repeated for each bathroom), toilet, laundry, stairs/hallway, general inside items (keys, power points, phone/internet connections, heating, air conditioning, smoke detectors, hot water service), general outside items (balcony/porch, garage/carport, gates/fences, letterbox, hot water system, clothesline, front garden, back and side garden, pool fence and gate, spa fence and gate, water tanks, rubbish bins, recycling bins, storage shed, storage cage, car park), and additional supplied items (such as fridge and microwave).

Part C is the exit condition report, completed at the end of the tenancy. It uses the same room-by-room structure but records the condition when the renter moves out, again with columns for the rental provider’s and renter’s assessments.

The signatures section at the end covers both the start-of-tenancy and end-of-tenancy sign-offs, with fields for dates and signatures from the rental provider (or agent) and each renter.

Completing the Condition Report at the Start of a Tenancy

Your Obligations as Rental Provider

Before the renter moves into the property, you must complete the condition report and give it to the renter. The Act is explicit about the sequence: it must happen before they enter into occupation, not on the day they move in, not the day after, and not “when you get around to it.”

Under Section 35(1), you must give the renter two copies of the signed condition report. If you send it electronically — by email, for example — one electronic copy is deemed to satisfy the two-copy requirement (Section 35(1A)).

For each room and item in the report, you should tick the relevant boxes (Clean, Undamaged, Working, or N/A) and add descriptive comments for anything that is not in perfect condition. The more specific your comments, the stronger your position will be at the end of the tenancy. “Some marks on wall” is weak. “Three scuff marks on south wall near light switch, approximately 10cm each” is strong.

You must also retain your copy of the completed condition report for the duration of the tenancy (Section 35(4)). You’ll need it for the exit inspection and any bond dispute — if you can’t produce your copy, you’ve undermined your own evidence.

What the Renter Must Do

Once the renter receives the condition report, they have 5 business days after moving in to return a signed copy to you. Business days exclude weekends and public holidays, so the actual calendar time may be longer.

The renter can either sign the report to indicate they agree with your assessment, or add their own comments against specific items where they disagree. They can also note anything they consider unsafe, insecurely fixed, or in need of repair.

If you fail to provide a condition report before the renter moves in, the renter has the right to complete their own condition report and give it to you during the period between inspecting the property and 5 business days after moving in (Section 35(3)). This is not a situation you want — a renter-completed report will naturally describe your property’s condition from their perspective, not yours.

Taking Photographs

Both the condition report template and Consumer Affairs Victoria strongly recommend that both parties take photographs of the property. The prescribed form includes a “Photos” column next to each item specifically for this purpose.

Photographs should be taken close-up to show detail of the specific fixture, fitting, or surface being documented, and also at a distance to provide perspective and context for the room. Every photograph should be dated, labelled with the room and item it relates to, and attached to the condition report — either as hard copies or electronically.

Photos are particularly important for pre-existing damage. If there are scuff marks, stains, chips, cracks, or wear on any surface, photograph them and reference the photo number in your written comments. At VCAT, a condition report that says “minor stain on carpet near door” with an attached dated photograph is significantly more persuasive than the same words without one.

Electronic Condition Reports

You can complete and send the condition report electronically. Section 35(1A) confirms that giving the renter one electronic copy satisfies the legal requirement to provide two copies. This means you can email a completed PDF or Word document, or use a digital platform that generates the report in the prescribed form.

However, the report must still follow the prescribed Form 4 structure. A set of photos emailed without the formal checklist is not a valid condition report.

Correcting the Condition Report

A renter may not be able to test every appliance and check every fitting on their first walk-through. If they later discover that something listed as “working” is actually broken, or that damage was missed, either party can apply to VCAT to amend the condition report. This must be done within 30 days of the start of the rental agreement (Section 35A).

VCAT can order that the report be amended, or decide that no amendment is necessary. This 30-day window exists to protect both parties — it gives the renter time to discover hidden issues, and it gives the process finality so the condition report can’t be challenged indefinitely.

As a rental provider, this means you should also pay attention to anything the renter flags in their returned copy. If the renter’s comments identify legitimate issues you missed, it’s better to acknowledge them early than to have them raised at VCAT later.

There is also an important legal consequence to be aware of: under Section 36(1A), a condition report that is given to you is taken to be notice of any defects or outstanding repairs stated in the report. This means that once you receive a condition report flagging a repair issue — whether from your own inspection or the renter’s comments — you are on notice and must carry out the repairs within a reasonable period. If you don’t, the renter can apply to VCAT for an order requiring you to do so.

The Exit Condition Report

When the rental agreement ends, you must complete the exit section of the original condition report within 10 days after the end date of the agreement (Section 35(5)).

The renter must be present during the exit inspection, or you must have given them a reasonable opportunity to be present. “Reasonable” is not defined in the Act, but Consumer Affairs Victoria interprets it as what most people would consider fair — meaning adequate notice of the inspection time, and a willingness to accommodate reasonable scheduling requests.

The exit report uses the same room-by-room structure as the entry report. You go through each item and record its current condition, comparing it to the start-of-tenancy assessment. This comparison is the backbone of any bond claim.

What You Can Claim For

The exit condition report can support a bond claim where there is new damage that isn’t fair wear and tear, where repairs are needed that weren’t needed at the start, where the property requires additional cleaning, or where items are missing.

One exception to be aware of: where a renter is a victim of family or personal violence, VCAT may order that they are not to be held liable for any loss or damage caused by the alleged perpetrator of that violence. This can affect bond claim outcomes even where damage is clearly documented in the exit report.

What You Cannot Claim For

You cannot claim against the bond for fair wear and tear. This is a critical concept and one of the most common sources of disputes at VCAT. Fair wear and tear is the gradual deterioration of the property that occurs through normal, everyday use. Faded paint from sunlight, minor scuff marks on floors from furniture, and slight wear on carpet in high-traffic areas are all examples of fair wear and tear.

The distinction matters because if you record something as damage in the exit report that VCAT considers fair wear and tear, your claim will fail — and it may undermine the credibility of your other claims.

Fair Wear and Tear vs. Damage

This is the area where more bond disputes are won and lost than any other. There is no exhaustive statutory definition of fair wear and tear, but the general principle is well established: it is the natural and expected deterioration that results from ordinary use of the property over time.

Some practical examples to guide your assessment:

Fair wear and tear (you cannot claim): faded curtains or blinds from sun exposure, minor scuffs on walls from normal living, slight wear on carpet in hallways and doorways, small nail holes from hanging pictures, gradual yellowing of paint, loose door handles from regular use, minor marks on benchtops from everyday kitchen use.

Damage (you can claim): large holes in walls, burns or stains on carpet, broken windows, smashed tiles, doors ripped off hinges, gouges in timber floors, graffiti or unauthorised painting, broken blinds or curtain rods, missing fixtures or fittings.

The condition report is your evidence for this distinction. If the entry report says “carpet in good condition, no stains” and the exit report says “large red wine stain on carpet in lounge room, approximately 30cm diameter,” that’s a clear claim. If the entry report says “carpet in good condition” and the exit report says “carpet shows wear in hallway,” that’s likely fair wear and tear — and VCAT will probably agree with the renter.

Professional Cleaning Rules

Since the 2021 reforms, there are specific rules about when you can require professional cleaning at the end of a tenancy. For rental agreements signed on or after 29 March 2021, you cannot require the renter to arrange professional cleaning unless one of two conditions is met.

First, if professional cleaning was carried out immediately before the start of the tenancy and the renter was advised of this at the time. The condition report is your evidence — if you note “property professionally cleaned prior to tenancy commencement” in the entry report, you have a basis to require the same standard on exit.

Second, if professional cleaning is required to restore the property to the condition it was in immediately before the start of the tenancy, having regard to the condition report and taking into account fair wear and tear. This applies regardless of whether professional cleaning was done before the tenancy — if the property is left in a state that genuinely requires professional intervention to meet the entry standard as documented in the condition report, you can require it.

The condition report is central to both scenarios. Without a detailed entry report documenting the cleaning standard at the start, you have no benchmark to measure the exit condition against.

The general standard is that renters must leave the property reasonably clean and in the same condition as when they moved in, allowing for fair wear and tear. “Reasonably clean” does not mean “spotless” — it means a standard that most people would consider acceptable. Consumer Affairs Victoria publishes Guideline 2 — Cleanliness which sets out the expected standards in more detail.

Using the Condition Report in Bond Claims

When the tenancy ends and you believe there are grounds to claim against the bond, the condition report is your primary piece of evidence. The process works as follows.

Before the renter moves out, you and the renter should try to agree on how the bond will be divided. If you agree, you submit a bond claim form to the Residential Tenancies Bond Authority (RTBA) reflecting the agreed split.

If you cannot agree, either party can submit a claim to the RTBA. The other party then has 14 days to dispute the claim. If the claim is disputed, either party can apply to the Rental Dispute Resolution Victoria (RDRV) service for assistance. RDRV will review the evidence — including the condition report — and try to help both parties reach a fair outcome. If no agreement is reached, the matter can proceed to a VCAT hearing.

At VCAT, the condition report carries significant weight. Under Section 36(1), a signed condition report is conclusive evidence of the property’s condition at the relevant time. This means if both parties signed the entry and exit reports, the comparison between them is treated as established fact — the tribunal does not need to determine what the condition actually was, because the signed report already settles it.

This is why thoroughness at both the entry and exit stages is so important. A vague entry report (“property in good condition”) gives you almost nothing to work with if you need to make a claim. A detailed entry report (“kitchen benchtop has two small chips on front edge near sink, each approximately 5mm; all other surfaces clean and undamaged”) gives you a precise baseline.

VCAT bond claims for amounts less than the bond paid are free to lodge.

How Landlord Wise Handles Condition Reports

Completing the prescribed Form 4 by hand is tedious. It’s a multi-page document with dozens of line items, and you need to go through every room methodically, tick boxes, write comments, attach photos, and ensure both the start and exit sections are properly filled out and signed.

Landlord Wise digitises this process. You walk through your property room by room using the app, and for each item you can tick the condition, type or dictate your comments, and attach photos directly from your phone. The app generates the report in the prescribed Form 4 format, so it meets the legal requirements without you needing to wrangle a Word document.

At the end of the tenancy, you complete the exit inspection in the same app. Landlord Wise shows you the entry condition alongside each item so you can immediately compare and flag any changes. The completed report — entry and exit — is available as a single document you can download, print, or send electronically.

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

Common Mistakes Landlords Make with Condition Reports

These are the errors that cost landlords the most — either directly in failed bond claims, or indirectly by undermining their credibility at VCAT.

Not Completing the Report Before the Renter Moves In

This is the most fundamental mistake and it’s surprisingly common, particularly among self-managing landlords who are juggling settlement dates, key handovers, and utility connections. The Act requires the condition report to be given to the renter before they enter into occupation. If you hand it over on the same day they move in — or worse, a few days later — you’ve technically breached Section 35(1), which carries a penalty of up to 25 penalty units. More practically, if you don’t have a pre-occupation report, you have no baseline for the property’s condition, and any bond claim becomes an uphill battle.

Being Vague in Your Descriptions

“Walls — good condition” tells VCAT nothing. If the renter later puts a fist-sized hole in the wall, you need the entry report to specify that the wall was undamaged. And if there were pre-existing marks, you need those documented too — otherwise the renter can argue the damage was already there. Be specific: describe the location, size, and nature of any marks, stains, chips, or defects. If something is genuinely in perfect condition, say “no marks, stains, or damage visible.”

Skipping the Outside Areas

The prescribed template includes sections for balcony/porch, garage/carport, gates/fences, letterbox, gardens, pool and spa fencing, water tanks, storage areas, and car parks. Many landlords rush through the report and skip or gloss over these outdoor areas. But damage to fences, gardens, and outdoor structures is a common bond dispute item — and without an entry-level baseline, you cannot claim for it.

Not Taking Photographs

The condition report template has a dedicated “Photos” column for a reason. Written descriptions are useful, but photographs provide visual evidence that is much harder to dispute. Take photos of every room from multiple angles, and close-up photos of any specific items or areas of concern. Date and label every image. Attach them to the report — either physically or electronically.

Not Completing the Exit Report Within 10 Days

You have 10 days after the end of the rental agreement to complete the exit section of the condition report. If you miss this deadline, you weaken your position in any bond dispute. The exit inspection should be thorough, systematic, and ideally conducted with the renter present — or after giving them a reasonable opportunity to attend.

Claiming Fair Wear and Tear as Damage

Trying to claim against the bond for normal wear is the fastest way to lose credibility at VCAT. If your exit report lists “faded paint in living room” as damage, VCAT will reject that item — and it may make the tribunal more sceptical of your other claims. Be honest in your assessment: document genuine damage, and accept that some deterioration is a normal cost of renting out a property.

Requiring Professional Cleaning Without Grounds

For agreements signed on or after 29 March 2021, you cannot require professional cleaning unless it was done before the tenancy started (and the renter was told), or the property genuinely requires professional cleaning to be restored to its entry condition. If your entry condition report doesn’t mention professional cleaning, and the property is returned in a reasonably clean state, you don’t have grounds to require or claim for professional cleaning.

Frequently Asked Questions About Condition Reports in VIC

Do I have to use the prescribed form for the condition report? Yes. Section 35(1B) of the Residential Tenancies Act 1997 requires the condition report to be in the prescribed form. The prescribed form is Form 4, set out in Schedule 1 of the Residential Tenancies Regulations 2021 (Regulation 18). You can download the template from Consumer Affairs Victoria. Landlord Wise generates the report in the prescribed format automatically.

When must the condition report be given to the renter? Before the renter enters into occupation of the property. You must give them two signed copies, or one electronic copy. In practice, this typically means the report should be completed and delivered before the renter collects the keys or moves any belongings in.

What happens if I don’t provide a condition report? You face a penalty of up to 25 penalty units under Section 35(1). More significantly, the renter can complete their own condition report and give it to you during the period between inspecting the property and 5 business days after moving in (Section 35(3)). And without a condition report you’ve prepared, you have limited evidence to support bond claims for damage or cleaning at the end of the tenancy.

How long does the renter have to return the condition report? The renter must return a signed copy within 5 business days after moving in. “Business days” excludes weekends and public holidays. If the renter doesn’t return it, they haven’t breached the Act — but there’s an important consequence for evidence. Under Section 36(1), a condition report is only conclusive evidence if it is signed by both the rental provider and the renter. An unsigned report is still admissible evidence at VCAT, but it is not conclusive — meaning VCAT can weigh it alongside other evidence, and the renter can challenge your descriptions. This is why it’s worth following up to get the signed copy back.

Can the condition report be completed and sent electronically? Yes. Section 35(1A) confirms that giving the renter one electronic copy is deemed to satisfy the two-copy requirement. You can email a PDF, send it through a property management platform, or use a digital tool like Landlord Wise. The report must still follow the prescribed Form 4 format.

What if the renter disagrees with my condition report? The renter can add their own comments against any item they disagree with and return the annotated report. If either party believes the report is inaccurate or incomplete, they can apply to VCAT to have it amended — but this must be done within 30 days of the rental agreement starting (Section 35A).

What is the difference between the condition report and photos? The condition report is the legally prescribed document that records the property’s condition in a structured format. Under Section 36(1), a signed condition report is conclusive evidence of the property’s condition. Photos are supporting evidence — they’re valuable and recommended, but they don’t carry the same legal weight as the signed report itself. Ideally, you use both: the formal report for the legal record, and photos to illustrate and support the written descriptions.

Can I claim against the bond without a condition report? Technically yes, but practically it’s very difficult. Without a condition report, you have no formal baseline to compare the exit condition against. VCAT will have limited evidence to determine what condition the property was in at the start, making it much harder to prove that specific damage was caused by the renter during the tenancy.

What counts as fair wear and tear? Fair wear and tear is the natural deterioration that occurs from ordinary, everyday use of the property. Examples include faded curtains from sunlight, minor scuffs on floors from furniture, slight carpet wear in high-traffic areas, and small nail holes from hanging pictures. Damage — such as large holes in walls, burns on carpet, broken windows, or missing fixtures — is not fair wear and tear and can be claimed against the bond.

Do I have to let the renter attend the exit inspection? Yes. Under Section 35(5), the exit condition report must be completed either in the renter’s presence or after you’ve given them a reasonable opportunity to attend. You cannot conduct the exit inspection without offering the renter a chance to be there.

What is the penalty for not providing a condition report? Section 35(1) specifies a penalty of 25 penalty units. The current value of a penalty unit in Victoria is set by the Monetary Units Act 2004 and is updated annually by the Treasurer.

Summary

The condition report is not just paperwork — it’s the legal foundation of your bond protection. A thorough, detailed report completed before the renter moves in gives you conclusive evidence of the property’s condition. A vague or late report — or no report at all — leaves you exposed in every bond dispute.

Complete the prescribed Form 4 for every room and every item. Take dated, labelled photographs. Provide the report to your renter before they move in. Complete the exit inspection within 10 days. And be honest about fair wear and tear — it makes your legitimate claims stronger, not weaker.

Landlord Wise handles the entire process digitally: prescribed Form 4 format, room-by-room photo capture, side-by-side entry and exit comparison, and a downloadable report ready for RTBA and VCAT.

Related guides for VIC 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

• VIC lease agreement guide
• VIC rental bond guide
• VIC notice to vacate guide
• VIC break lease guide
• VIC residential tenancies act guide

Compare condition report guides in other states

• WA property condition report guide
• NSW condition report guide
• QLD condition report guide