Condition Report Victoria Rental: What Landlords Need to Get Right

A condition report filled out carelessly before the renter moves in is the single biggest reason landlords lose bond claims at VCAT. The report is your legal baseline — every deduction you try to make at the end of the tenancy gets measured against what you documented on day one.

The Legal Requirements

Under Section 35 of the Residential Tenancies Act 1997, if you require a bond, you must complete a prescribed condition report using Form 2 (set out in the Residential Tenancies Regulations 2021, as amended).

The sequence is strict:

1. Before the renter moves in, inspect the property, complete all landlord sections of Form 2, sign it, and deliver two copies to the renter (or one electronic copy by mutual consent).
2. Within 5 business days of moving in, the renter inspects the property, adds their own comments noting pre-existing damage or cleanliness issues, signs the report, and returns one copy to you.
3. If the renter returns the report with amendments, those amendments become the agreed baseline unless you formally dispute them.

If the renter doesn't return their copy within 5 business days, your initial assessment stands as the primary record. But don't rely on this as a strategy — a renter who later produces photos of pre-existing damage at VCAT can still undermine your original report.

How to Fill Out Form 2 Effectively

The standard form lists rooms and areas with columns for condition ratings. Generic entries like "good condition" or "clean" are nearly worthless at a tribunal hearing. Be specific:

• Name the material and its state. "Timber floorboards, two light scratches near kitchen entry, each approximately 15 cm" beats "minor floor marks."
• Note existing wear. "Carpet, medium pile, slight flattening in hallway traffic path" establishes that the wear was already there.
• Record fixtures and fittings. Count light globes, note which ones work, describe the condition of blinds, fly screens, and door handles.
• Document cleanliness room by room. "Oven interior — professional clean standard, no residue" sets a clear benchmark for end-of-tenancy comparison.

Photographic Evidence

Photos transform a condition report from a paper exercise into a defensible record. Time-stamped photos support condition reports, and VCAT and RDRV consider them when resolving disputes.

Best practice:

• Time-stamped, high-resolution photos of every room, taken the same day you complete Form 2.
• Wide shots plus close-ups — a wide shot shows the overall room, close-ups capture specific marks, stains, or damage.
• Include ceilings, inside cupboards, window tracks, and outdoor areas — anywhere a deduction claim might arise later.
• Never photograph the renter's personal belongings. Capturing personal items during an inspection breaches privacy protections under the RTA.

Store the photos linked to the property address and the tenancy start date. If a dispute reaches VCAT two years later, you need to locate them quickly.

The Exit Condition Report

When the renter vacates and returns the keys, conduct a final inspection using the original Form 2 as your comparison document. Walk through each room with the entry report in hand and note every difference.

The renter must be invited and given a reasonable opportunity to attend this walkthrough. Refusing to let them participate weakens your position in any subsequent dispute.

Compare the exit state to the entry baseline, item by item. Differences fall into two categories: damage the renter is liable for, and fair wear and tear they aren't (see fair wear and tear vs damage in Victoria).

The Rental Bonds in Victoria guide includes a side-by-side entry/exit inspection audit template built around Form 2, with photographic logging prompts for every room.

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