It is very important that regular building condition reports are undertaken and documented. The building condition report allows a landlord to be up to date on the condition of their building, as well as maintaining a relationship between the landlord and the tenant. In addition to this, the document allows a tenant and landlord to agree on the initial state of the building prior to leasing, which can prevent further issues in terms of disputes between the landlord and tenant.
What does a building condition report contain?
The building condition report should contain the textures and fittings of a building. This includes the colour of the interior (walls, carpets), extensive information on appliances (make, model etc.), photos of the interior and any repairs or defects in the building. Some regular building condition reports contain extensive and detailed information about the state of repair that the building is currently in, and the facts of this document should be agreed on by both the tenant and the landlord prior to leasing. Failure to do so can lead to disputes about the state a house was in before leasing, and disagreement on both sides.
Reasons why a building condition report is important
It can be used as a checklist during inspections
The building condition report can be used as a checklist for the building manager to utilise, upon a tenant ending their lease and leaving the premises. This is because the building condition report will state any upfront damage that the building already contained, and compare this to the current state of building, which can easily identify new damage that has occurred during the tenant’s lease. As a result, disputes are avoided as there is clear proof to compare the states of the building from previous, to present.
It is important for the tenant for their bond to be returned
The bond a tenant initially deposits when first leasing the building is only returned if it is in the same state of repair that it was in prior to leasing. Often times, this bond is not returned citing reasons to do with damage, which can lead to conflict between the tenant and the landlord. The building condition report allows the building manager to efficiently and effectively check the building for damage, by going through the itemized checklist in order to determine this. Thus, the building condition report is a critical tool in the return of a bond to the tenant.
The landlord is able to see that their building is not being damaged
For many landlords, a building is an investment. By investing in a building and renting out to tenant(s), the landlord is putting their trust in them that they will not damage the building. Damage to the building can severely affect their investment, and their livelihood. Routine and regular inspections allow the building manager to show the landlord that the tenant is taking care of the building, and that the lease terms are being honoured. Furthermore, it allows them to see that the building is being maintained and clean, it is not damaged, maintenance issues can be identified and attended to and that there are no pets on the premises unless explicitly agreed to.
In conclusion, routine inspections of the building allow the landlord to be satisfied that the tenant is keeping the state of the building maintained and in a good state, as well as being able to have evidence of the initial state of repair the building was in prior to leasing. This ensures that disputes between returning of the bond can be resolved quickly, and protects the landlord’s investment.