For many new property managers, the early focus is often on leasing property, learning legislation and handling the day-to-day pace of the role. But according to Chantelle Collin, one of the most critical skills a PM can develop starts long before a tenant moves in and sits inside one deceptively simple document: the inspection report.
“The ingoing or outgoing inspection report is probably one of the most important documents aside from the tenancy agreement,” said Ms Collin, Head of Property Management at BresicWhitney.
“It references the condition of the property, so it’s a really important document from both an owner and a tenant’s perspective.”
An inspection report, (also referred to as an ingoing or outgoing condition report), is the detailed record of a property’s condition before a tenant moves in and after they vacate. It documents everything from marks on walls and floor condition through to water damage, mould, appliances, lighting and maintenance concerns.
The report becomes the benchmark against which the property is later assessed, particularly at the end of a tenancy when questions around damage, bond claims or wear and tear can arise.
“From the owner’s point of view, it needs to be really clearly documented to protect their asset,” Ms Collin said.
“Then from a tenant’s point of view, they want to make sure it’s equally well documented so they’ve got safeguards in place when they vacate.”
That balance is why experienced PMs place so much importance on accuracy, detail and consistency; a rushed or incomplete report can create major issues months or years later.
For context, at BresicWhitney, new property managers are not immediately handed responsibility for entry and exit reports. Instead, cadets begin with routine inspections before progressing into ingoings and later outgoing inspections as their experience develops.
“That’s why we make sure this is not something they start with,” she said.
“We normally start with routine inspections first, and they’ll do a number of those before they progress to doing an entry inspection.”
The reason, she explained, is because inspection reports carry significant legal and financial weight. They directly compare the condition of the property at the beginning and end of the tenancy, helping determine what falls under fair wear and tear and what may require rectification before bond money is returned.
The process itself has also evolved significantly through technology. Rather than relying solely on standard photographs, many agencies now use 360-degree inspection cameras to create virtual walkthroughs of properties.
BresicWhitney was among the earlier adopters of the technology, which Ms Collin said has improved both transparency and accuracy.
The cameras create an interactive virtual tour, allowing owners, tenants and PMs to digitally walk through the property room by room and inspect details from every angle.
“It’s very clear and very detailed what the condition is like before someone moves in and when they exit as well, which just reduces disputes,” Ms Collin said.
The reports can also assist landlords who may not physically visit the property often themselves.
“An owner can walk through their property if they don’t live here,” she said.
“They get a really good feel for the condition themselves, which is really helpful when having conversations around maintenance and preventative maintenance.”
But while the technology has improved, Ms Collin said the fundamentals still come down to training people properly to know what they’re looking for.
For new PMs, inspections are not simply about taking photographs of visible damage; they involve carefully assessing the property for any maintenance concerns.
“Evreything has to be documented,” she said. “You’re looking for water leaks, water ingress, obviously mould. That type of thing is really important that we make sure we get before someone moves into a property.”
PMs are also expected to check that the property is operational and safe.
“Detailing that everything works, everything’s in working condition, lights are working, and it’s all sound for a tenant to move in,” she said.
One of the more difficult concepts for new PMs to learn is how to assess fair wear and tear, an area that often becomes contentious between owners and tenants.
“Wear and tear is a very hard one to define,” Ms Collin said. “The general rule of thumb is what a property would withstand through normal living.”
Minor scuffs on walls, small marks on floors and gradual ageing are typically considered part of ordinary use. But disputes often arise because owners and tenants naturally view property conditions differently.
“This is where a lot of issues arise,” she said.
“An owner has their view of wear and tear and then a tenant has their view of wear and tear.”
Over time, PMs develop judgement through experience, tribunal matters and understanding how NCAT interprets these situations. But in the early stages of a PM’s career, detailed documentation remains the strongest protection.
For that reason, Ms Collin believes rushing inspections is one of the biggest mistakes newcomers can make.
“One thing that we say is take your time. It’s that old saying: slow down to speed up,” she said.
“It’s such an important document. You really don’t want to miss anything.”
She also believes the broader responsibility attached to PM documentation is sometimes underestimated by newer entrants to the industry.
“It’s really important that people have read it and understand it,” she said.
“I think in some businesses they’re really quick to have people doing leases, so it’s really important that everyone has thorough training and understands they are legal documents.”
Ultimately, Ms Collin said property managers need to remember that every report, lease and inspection relates to something deeply personal for both landlords and tenants.
“You’re handling someone’s home,” she said.
And despite changing technology and systems, the core lesson she learned early in her career still applies today.
“One of my really early mentors drilled it into me: cross your t’s, dot your i’s, check, double check, triple check,” she said.
“These are really important documents, and it’s important that you don’t rush them.”