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Do I Need a Property Condition Report When Renting out My Property?

February 11, 2022

Yes, You Need a Property Condition Report

If you’re new to renting out your property, you may be wondering if you really need a property condition report. According to the property management experts at Locations, the answer is: Yes! You really do need to document the condition of your property before your tenants move in if you want to spare yourself time and expense down the road.


A property condition report can help to identify items that require repairs or improvements prior to tenant occupancy. Showing your property in its best light can help you to charge higher rental rates and secure longer-term tenants. Thorough documentation of your property’s condition will also help to minimize disputes over security deposits or damages with tenants.



What is a property condition report?

A property condition report is simply an inventory of your rental property’s condition before your tenants move in. Locations Property Management makes the process easy by providing a standardized property condition report .


How to write a property condition report

An in-depth property inspection should take place when the property is vacant. Using the standard property condition report , you’ll state the condition of the property’s features, including flooring, windows, window coverings and more. You’ll want to identify items that require repairs or improvements prior to placing a tenant. When writing your property condition report, be as detailed as possible in your descriptions, and don’t leave any fields blank.

In addition to a written description of the home’s features, you’ll also want to take photographs of every item included in your report. Photos will help to further describe the condition of your home’s features.


Pro-Tip:


Use the same property condition report at your annual property inspection to compare the property’s condition at the beginning and end of the lease period. Ideally, the property’s condition should be the same, with the exception of normal wear and tear or improvements made during tenancy. Repeat this same process with every set of new tenants.


Don’t forget appliances and furnishings!


In addition to taking inventory of your property’s features, you’ll also want to document the condition of its appliances. Be sure to take photos of all appliances and record the make and model of each item. Display appliance tags, which show their make and model, near the appliance (such as under the kitchen sink for the dishwasher). Having the appliance tag handy will make it easier to repair or replace the item if needed. When your tenants move out, you can also use the appliance tags to verify that the appliances you purchased are the ones in the unit—unfortunately, some unscrupulous tenants have tried to replace original appliances with cheaper appliances in hopes that the owner or property manager won’t notice.


If you’ll be including furnishings with your rental property, be sure to document and photograph the condition of all items you’ll be including, such as beds, tables, chairs and couches.


The final walk-through

Once you’ve completed a property condition report for your vacant unit, you’ll want to conduct a walk-through with your tenant on their move-in date. If it’s not possible to schedule a walk-through, the tenants should be allowed seven days to report any discrepancies in the property condition report. Finally, make sure that your tenant signs the property condition report to acknowledge that they agree with the descriptions included in the report.


Leave it to the pros

If taking a detailed inventory of your property’s condition sounds like a lot of work—or you’re not based in Hawaii—contact the property management experts at Locations! Our experienced property managers can inspect your property, thoroughly document its condition, suggest and coordinate repairs and improvements, and conduct a final walk-through with your tenants. Our property managers can handle all of the related paperwork, too.


Remember, it’s well worth your time to record the condition of your rental property before your tenants move in; you’ll save yourself more time (and money) in the long run.

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Do you need a property Manager?

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There are several benefits to hiring a professional property manager to oversee your rental property. A property manager acts as a buffer between the property owner and tenants—taking the headache out of owning and operating a rental property.  Furthermore, if you do not live in Hawaii, you will need to retain a property manager, since Hawaii law requires landlords who do not reside in Hawaii (or who reside on a different island than their rental property) to hire a property manager on the same island as the property. What does a Property Manager do? A property manager can help to find qualified tenants, collect rent payments, ensure that the property is well-maintained, and handle maintenance requests and other tenant issues. Property managers can also help to oversee evictions and other legal processes. Assess the property A property manager will visit the property to determine if any repairs or upgrades are needed before you can list the property for rent. Your property manager will also help you to determine market rent for your property, so that you can maximize your profit. Get a free rent analysis Market the property A property manager will also take photos of your property and advertise it where the most potential renters will see it. When you list your rental property with Locations, we’ll ensure that it’s advertised on our website and Oahu’s Multiple Listing Service (MLS), as well as various property rental websites, like Rentals.com and apartments.com, rental publications and our own network of real estate agents. The result: Minimal vacancy time and the maximum rental income that the market will allow. Screen prospective tenants A property manager will process rental applications to identify qualified tenants for your property. This includes running credit checks, national background checks and verifying prospective tenants’ income. By properly screening prospective tenants, a property manager can help you to avoid many potential issues down the road, like tenants who have a history of failing to pay rent or have left previous rental properties in poor condition. Manage paperwork and collect rent A property manager will ensure that the rental agreement is signed by both parties, and that the tenants understand and agree to adhere to all the terms of the contract. A property manager will also ensure that your tenants pay their rent in a timely manner, so that it can be distributed to you on a reliable schedule each month. If a tenant fails to pay their rent on time, a property manager is able to enforce rent collection, including collecting late fees and, if necessary, initiate the eviction process. Handle maintenance requests When tenants encounter a maintenance issue, such as a broken refrigerator or a leaky faucet, a property manager will coordinate repairs, including letting maintenance personnel into the property and determining which party is responsible for repair or replacement costs. A property manager will also conduct routine periodic property inspections to ensure that your property is maintained properly. Deal with legal issues Property managers are well-versed in landlord-tenant laws, so if issues arise with your tenants, they are able to resolve them in a manner that can help you, the landlord, to avoid a costly lawsuit. Some of the legal issues that property managers handle include lease negotiations and terminations, rent collection and evictions. Property managers will also ensure that your rental complies with property codes and safety laws, such as disclosing lead-based paint and making sure there is a working smoke detector in the home. How much does it cost to hire a property manager? Property management fees vary, but the industry standard is 10 percent of the property’s gross annual rent. This fee structure incentivizes property managers to find (and keep!) qualified tenants. To learn how Locations Property Management can help you to manage your rental property, please contact us at (808) 738-3100.
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