NSW Exit Condition Report: Property Manager's Step-by-Step Guide (2026)

The exit condition report is the document that records the condition of a rental property at the end of a tenancy, after the tenant has vacated and returned the keys. In New South Wales, it is not a separate standalone form but the exit section of the same Schedule 2 document prescribed under the Residential Tenancies Regulation 2019 — the same form completed at the start of the tenancy, designed so that entry and exit conditions are recorded side by side for direct item-by-item comparison.

The purpose of the exit condition report is to establish what changed during the tenancy. Where the exit condition of an item is materially worse than the entry condition — taking fair wear and tear into account — the landlord or agent has the basis for a bond deduction. Where the exit condition matches entry, the bond should be returned in full.

For NSW property managers, the exit condition report is the primary evidentiary document in any bond dispute at the NSW Civil and Administrative Tribunal (NCAT). A thorough exit report, supported by timestamped photographs, is the foundation of a defensible bond claim. An incomplete or undated report significantly weakens the landlord's position and has been noted in NCAT decisions as a reason to reduce or reject claims.

This guide covers the specific NSW requirements: the section 29 obligations, the Y/N rating methodology at exit, the impact of the Bond Online mandatory framework on exit inspection timing, and the most common avoidable mistakes.

The exit condition report obligation in NSW is set out in section 29 of the Residential Tenancies Act 2010 (NSW) — the same section that governs the entry condition report at the start of the tenancy.

Section 29 requires that at, or as soon as reasonably practicable after, the termination of a residential tenancy agreement, the landlord or landlord's agent and the tenant must complete the copy of the condition report retained by either party — in the presence of the other party.

Two aspects of this requirement matter for NSW property managers.

The standard is "as soon as reasonably practicable." Unlike Victoria, which imposes a 10-day mandatory window under section 35 of the Residential Tenancies Act 1997 (VIC), or Queensland, which imposes a 3-business-day response deadline under section 66 of the RTRAA 2008, NSW does not specify a fixed number of days for completing the exit condition report. "As soon as reasonably practicable" means promptly. In the context of the Bond Online mandatory framework (see Section 9), promptly in practice means the day of vacancy or the next morning — not several days later.

The joint inspection requirement. Section 29 requires the exit section to be completed in the presence of the other party — unless the other party has been given a reasonable opportunity to be present. This means the tenant must be offered a genuine chance to attend the exit inspection. The agent can proceed independently if the tenant declines or does not respond, provided the invitation was communicated and documented. Excluding the tenant without giving them a reasonable opportunity to attend, and then pursuing a contested bond claim, is a procedural weakness that NCAT can take into account.

NSW Fair Trading administers the Residential Tenancies Act 2010 and provides the prescribed Schedule 2 condition report form at fairtrading.nsw.gov.au. NCAT's Consumer and Commercial Division handles any bond dispute that cannot be resolved through Bond Online.

NSW differs from Queensland in a fundamental respect: section 29 of the Residential Tenancies Act 2010 places the exit condition report obligation on both the landlord or agent and the tenant jointly — not on the tenant alone.

In Queensland, the tenant is responsible for preparing Form 14a under section 66(2) of the RTRAA 2008, and the agent responds within 3 business days. In NSW, both parties are expected to complete the exit section together, ideally during a joint walkthrough of the property at the time of key handover.

In practice, the property manager takes the lead in completing the exit section of the Schedule 2 form. The agent assesses each item, applies the Y/N rating, and adds comments for any N response. The tenant participates in the inspection, can note any disagreements, and should be given a copy of the completed exit section.

NSW does not use a separate exit form. The Schedule 2 form — the document created at the start of the tenancy — includes columns for both the entry condition and the exit condition for every item. This parallel structure is what makes the item-by-item comparison clear: the agent and tenant, and any NCAT member if a dispute arises, can see the entry rating and the exit rating for every room and item in a single document.

For self-managing landlords, the same obligations apply. The landlord completes the exit section, offers the tenant a reasonable opportunity to be present, and retains the completed document alongside the entry section.

The most important operational rule for NSW exit condition reports is: inspect before any cleaning, repairs, or trades access the property.

The exit condition report must document the property as the tenant left it. Once a professional cleaning company, carpet cleaner, or any other tradesperson has attended, the evidence of how the tenant vacated is gone and cannot be recovered. An exit condition report completed after professional cleaning cannot support a cleaning claim because the original state of the oven, grout, or carpets is no longer visible. Photograph the exit condition first — every time, without exception.

The ideal sequence:

Step 1 — Tenant returns keys on the agreed vacate date. The property must be fully vacated. All the tenant's belongings must be removed and all sets of keys returned. Inspecting while any of the tenant's possessions are still present makes accurate assessment of floors, storage areas, and other surfaces impossible.

Step 2 — Exit inspection conducted the same day or next morning. The property manager enters the empty property, conducts the inspection, completes the exit section of the Schedule 2 form, and takes all exit photographs — before any tradespeople, cleaners, or other parties attend.

Step 3 — Cleaning and trades organised after documentation is complete. Once the exit condition is fully documented in writing and photographs, the agent can arrange rectification work.

This sequence also matters because of Bond Online. From July 2025, when a tenant submits a bond refund request through NSW Bond Online, the agent has 14 calendar days to respond with evidence. The tenant can submit that request on the day they return the keys. A property manager who delays the exit inspection by several days, then needs additional time to obtain quotes, can easily miss the 14-day window — and lose the bond by default. Completing the exit condition report on the day of vacancy is the only reliable way to operate safely within this framework.

The NSW Schedule 2 condition report uses a Y/N rating system across three dimensions for every item: clean, undamaged, and working. At exit, the property manager returns to each item in the entry section and applies the same Y/N assessment in the exit columns of the same form.

This Y/N methodology is specific to NSW and differs from how exit condition reports work in other states. Queensland's Form 14a uses written condition descriptions. Victoria's Form 4 uses a similar structure but different terminology. The NSW binary system is quick to apply and unambiguous — but it only works as evidence when N responses are accompanied by specific, detailed comments.

A bare N response is not useful at NCAT. "N — kitchen: not clean" tells NCAT nothing specific. "N — kitchen oven interior: heavy grease accumulation on base, sides, and door glass; oven racks have baked-on food residue; rangehood filter coated in cooking grease" is the level of specificity that supports a claim. For every N response at exit, the comment must describe the deficiency precisely enough that its extent and location are clear.

The Schedule 2 form also includes sections beyond the room-by-room assessment that require attention at exit:

Smoke alarms — NSW requires smoke alarm status to be recorded on the condition report, including whether alarms are installed and the dates they were last tested and had batteries replaced. At exit, check and document each smoke alarm's status. If alarms have been removed, damaged, or have expired batteries, note this clearly.

Minimum standards — The prescribed minimum standards for NSW rental properties apply throughout the tenancy. At exit, note any condition relevant to minimum standards — such as whether heating, weatherproofing, or plumbing fixtures are working.

Health issues and other safety issues — These sections prompt the agent to document any conditions that may pose a safety or health risk. Mould, pest evidence, or structural issues observed at exit should be recorded here as well as in the relevant room section.

A reliable exit inspection requires three things to be in hand before entering the property.

The entry condition report. Bring the completed Schedule 2 entry section — printed or on a device — so every item can be compared against the recorded entry condition in real time. The entry report is the baseline: every exit assessment is made by reference to what was documented at entry. Comparing from memory is unreliable and difficult to defend at NCAT if a specific item is disputed.

The entry photographs. Entry photographs, loaded on the same device or accessible immediately, allow a visual comparison between the property's condition at the start of the tenancy and its current state. Where an item appears worse at exit than at entry, having the entry photograph available during the inspection makes the comparison immediate. An entry photograph showing a clean oven alongside an exit photograph of the same oven with heavy grease is a clearer evidence package than written descriptions alone.

The tenancy agreement inclusions list. The tenancy agreement records every item provided as part of the tenancy — specific appliances, furniture, remote controls, keys, garden equipment. The exit inspection should verify that every inclusion is present and in an appropriate condition. Missing inclusions are a legitimate bond claim category, but only where the entry documentation confirms the item was provided at the start of the tenancy.

Notify the tenant of the exit inspection date and time in writing with enough notice to allow attendance. Document the notification. If the tenant confirms they will attend, conduct the inspection with them present. If the tenant declines or does not respond, proceed with the inspection and document that the opportunity to attend was offered. This procedural record matters if the process is later questioned at NCAT.

Work through the property using the Schedule 2 form's structure as a guide, completing the exit column for every item. For each room, apply the Y/N rating and add a specific comment wherever the answer is N or where the exit condition differs from entry.

Living and dining areas: Walls at full height — particularly around power points, light switches, and door edges — ceilings, floor coverings, windows and window tracks, doors and doorframes, light fittings, and any inclusions such as curtains, blinds, or wall-mounted shelving.

Bedrooms: All four walls, ceiling, floor covering, built-in wardrobes inside (shelves, hanging rails, and interior floor surface) and outside (door face, handles, sliding mechanism), windows, ceiling fans, and wall-mounted air conditioning units.

Kitchen: Oven interior (base, side walls, door glass, and oven racks individually), oven exterior, cooktop and elements or gas burners, rangehood and rangehood filter, dishwasher interior if included, all benchtop surfaces, splashbacks, sink and tapware, and every cupboard inside and out — including the base of lower cupboards and the area beneath the sink. The kitchen is the most frequently claimed area in NSW exit reports. Describe each sub-item specifically: "oven base: clean" and "oven door glass: light residue near bottom seal" give NCAT far more to work with than "oven: N.""

Bathrooms and toilets: Tiles and grout across all surfaces noting location and extent of any mould, staining, or cracking; shower screen and door seals; bath and surrounds; toilet bowl and cistern; vanity surface and mirror; exhaust fan (clean or blocked); and tapware. In a combined bathroom and laundry, check the tub and tapware separately.

Laundry: Tub, tapware, and the appliance cavity condition. If a washing machine or dryer is included in the tenancy, assess and document its interior and exterior condition.

Outdoor areas: Lawns (mowed and edged, or not), garden beds (weeded or overgrown), hard surfaces (swept or with debris, oil stains in carports), patios and balconies, clothesline, letterbox, fencing within the property boundary, and any sheds or outdoor storage. Garage and carport floors should be assessed for stains or damage.

Throughout: Assess wall damage from fixings. Small nail holes from picture-hanging are widely accepted as fair wear and tear in NSW. Larger anchor holes, bolts, or multiple closely-spaced fixings that cause visible surface disruption are assessed differently. For any N response, describe the room, the specific surface (which wall, at what height), and the nature and approximate size of the deficiency.

Photographs are the most persuasive evidence in an NSW bond dispute at NCAT. The Schedule 2 form directs that photographs and video recordings should be dated and attached to the condition report. NCAT consistently expects photographic evidence, and its absence is treated as a significant weakness.

Photograph every room from at least two angles. A wide shot that establishes the overall room condition, and close-up shots of any area where the exit condition differs from entry or where a bond claim is contemplated. For areas of concern, take multiple photographs from different angles to show the extent and nature of the issue.

Replicate entry photograph angles. If the entry report includes a front-on photograph of the oven interior, the exit photograph of the same oven should match that angle. Side-by-side comparison of entry and exit photographs at the same angle makes deterioration immediately apparent and leaves little room for dispute.

Verify timestamp accuracy before starting. Digital photographs embed date and time metadata automatically. Inspection software that overlays timestamps directly on images provides an even cleaner record. Check that the date and time on your device are correct before the inspection begins.

Photograph before any cleaning or repairs. Exit photographs must capture the condition the tenant left the property in. Once a cleaning company or tradesperson has attended, the original condition cannot be recovered for evidence purposes. Complete all exit photography before any contractors are engaged.

Link photographs explicitly to report items. Whether through inspection software that attaches photos to specific items, or through a clear labelling convention, the connection between each photograph and the corresponding item in the exit condition report must be traceable. An unlinked photograph of grease in an oven is less useful than a photograph embedded in the report against the oven item with a clear label.

NSW's Residential Tenancies Act 2010 does not define fair wear and tear in a prescribed list. NSW Fair Trading describes it as the normal deterioration that occurs through ordinary use of a property over time. NCAT applies a practical assessment based on what a reasonable person would expect from the type of use over the length of the tenancy.

What is generally fair wear and tear in NSW: Minor scuff marks on walls in high-traffic areas such as corridors and near doorways; gradual fading of paintwork after several years of normal occupancy; light carpet compression where furniture has stood throughout the tenancy; small marks around light switches and door handles from regular use; and slight surface dulling of benchtops or floor coverings from routine cleaning.

What is damage and claimable: Holes or significant indentation in walls from improper anchoring or large fixings beyond standard picture-hanging; carpet stains from spills, pet accidents, burns, or heavy soiling; broken tiles, cracked fittings, or smashed glass; heavy grease accumulation in the oven or rangehood from inadequate cleaning throughout the tenancy; mould on walls or ceilings resulting from the tenant's failure to adequately ventilate the property — where a building defect is not the cause; and pet damage to flyscreen material, carpet, or timber surfaces.

The length of the tenancy matters. NCAT considers how long the property was occupied when assessing what level of deterioration is expected from normal use. A scuff mark at skirting board height after a twelve-month tenancy may be assessed differently from the same mark after a five-year occupancy, where considerably more wear is expected. The age and condition of each item at entry is also relevant: an item already near the end of its serviceable life at entry cannot support a full replacement claim at exit.

For each item where a bond deduction is contemplated, the property manager must be able to articulate why the exit condition falls outside fair wear and tear, with reference to the entry condition report and the tenancy length. See the fair wear and tear vs damage guide for practical examples across common rental property items.

NSW Bond Online became mandatory for all residential bond transactions from July 2025, under amendments to the Residential Tenancies Act 2010. This has fundamentally changed the operational timeline for exit condition report documentation.

The critical change: when a tenant submits a bond refund request through NSW Bond Online, the landlord or agent has 14 calendar days to respond. If no response is lodged within 14 days, the bond is automatically released to the tenant in full.

The 14-day window starts the moment the tenant submits their request. The tenant can do this the same day they return the keys. A property manager who delays the exit inspection by several days, then needs further time to gather quotes, routinely risks missing this window entirely — and losing the bond by default on a legitimate claim.

From July 2025, landlords and agents must also complete a mandatory end-of-tenancy survey in Bond Online when claiming or releasing a bond. The survey asks how the tenancy ended and, where the landlord initiated the ending, the reason why. This must be completed when making or finalising any bond transaction.

The practical end-of-tenancy workflow for a NSW property manager operating within Bond Online:

Day 0 (vacancy day): Conduct exit inspection. Complete exit section of Schedule 2. Take all exit photographs. Note every item where a claim may be warranted.

Days 1–3: Compare entry and exit reports item by item. Identify all changes beyond fair wear and tear. Contact cleaners and tradespeople for itemised written quotes.

Days 4–6: Compile the evidence package — entry report, exit report, entry photographs, exit photographs, quotes and invoices — in an organised, clearly labelled format.

Day 7 at the latest: Submit your response through Bond Online, or lodge your own claim if the tenant has not yet submitted a refund request. Build in buffer days for complications.

For a full breakdown of the Bond Online changes and their implications for condition reports, see the NSW rental law changes guide.

Where a bond cannot be resolved through Bond Online — because the tenant disputes the claim — either party can apply to the NSW Civil and Administrative Tribunal (NCAT), Consumer and Commercial Division, for a determination.

The NCAT process for a bond dispute:

Either party applies to NCAT via the online portal, in person at an NCAT registry, or by post. A filing fee applies; check the current fee schedule at ncat.nsw.gov.au as fees are updated periodically.

NCAT lists the matter and notifies both parties. In the Consumer and Commercial Division, bond disputes are generally listed within a few weeks of application, though this depends on caseload at the time.

Evidence must be lodged with NCAT and served on the other party at least 7 days before the hearing. Late evidence may be excluded or given reduced weight. Prepare and organise your evidence package well in advance of the hearing date.

NCAT hearings for residential bond disputes are relatively brief — typically 30 minutes to an hour for a standard matter. A NCAT member hears from both parties, reviews the evidence, and makes a binding determination. Legal representation is not required but is permitted.

What NCAT expects to see: The entry condition report (Schedule 2 entry section, both the agent's completed part and the tenant's response if it was returned), the exit condition report (exit section of the same form), timestamped photographs from both the entry and exit inspections that correspond to the items claimed, itemised quotes or invoices for all claimed rectification work, the tenancy agreement, and — where rent arrears or other financial claims are included — a rent ledger or relevant financial records.

NCAT's burden of proof: The landlord must demonstrate that the damage or deterioration claimed occurred during the tenancy and exceeds fair wear and tear. A thorough entry condition report with photographs establishing the property's baseline condition, paired with a thorough exit condition report showing the change, is the structure NCAT needs. NCAT members have stated in decisions that condition reports that are incomplete, not supported by photographs, or prepared after entry was taken rather than before, significantly weaken a landlord's ability to prove their claim.

For the full NCAT process including the application form, fees, and hearing preparation, see the NCAT bond dispute guide for NSW.

The following mistakes are responsible for most legitimate NSW bond claims that fail or are reduced at NCAT, and all are preventable with a structured exit process.

Not inspecting promptly. Delays between the tenant vacating and the exit inspection create gaps in the evidentiary chain. Any party who accesses the property — tradespeople, cleaners, other agents — before the exit inspection was conducted can complicate claims about the cause of a given deficiency. Inspect on the day of vacancy.

Inspecting before the property is fully vacated. Conducting the exit inspection while the tenant's belongings are still in the property makes accurate assessment of floors, storage areas, and other surfaces impossible. Wait until the property is completely empty and all keys have been returned.

Photographing after cleaning or repairs. Exit photographs must document the condition the tenant left the property in. Once a cleaner has attended, the original condition of the oven, bathrooms, or carpets is gone and cannot be recovered for evidence. Complete all exit photography before any contractors are engaged — every time.

Not offering the tenant a reasonable opportunity to attend. Section 29 requires that the exit condition report be completed in the presence of the other party, or that the other party be given a reasonable opportunity to be present. Failing to invite the tenant, or scheduling the inspection at a time that makes attendance practically impossible, is a procedural weakness that NCAT can note. Invite the tenant in writing, with enough notice to attend, and document the communication.

Bare N responses without comments. Marking N with no explanation provides nothing useful at NCAT. Every N response at exit requires a specific comment — what the deficiency is, where it is, and what makes it different from the entry condition.

Not having the entry report during the inspection. Without the entry condition report to refer to during the walkthrough, the exit assessment relies on memory. Bring the entry report, and check each item against the documented entry condition in real time.

Missing the Bond Online response window. The 14-day response window starts when the tenant submits their Bond Online refund request — which can be the same day they return the keys. Building the end-of-tenancy workflow around completing the exit condition report on the day of vacancy is the only reliable way to avoid missing this deadline.

Not retaining documentation. NCAT applications can be made after the tenancy has ended. Property managers who delete inspection records shortly after the tenancy concludes may be unable to defend a delayed claim. Retain all condition reports, photographs, and supporting documents for a minimum of 12 months after the tenancy ends, and longer where a dispute is known to be pending or ongoing.

Digital inspection tools are now standard in NSW property management for practical reasons: they attach photographs directly to specific items in the report, create automatic timestamps, enable cloud storage and backup, and allow the entry and exit sections of the same Schedule 2 condition report to be managed within a single workflow.

When evaluating a digital tool specifically for NSW exit condition reports, four things matter:

Schedule 2-compliant output. The tool must generate a report that mirrors the structure of the NSW prescribed form — Y/N columns for clean, undamaged, and working; comment fields for every N response; the specific additional sections for smoke alarms, minimum standards, health issues, and other safety matters. A generic multi-state checklist that does not replicate the Schedule 2 structure is not compliant.

Entry-to-exit comparison within the same document. The exit workflow should pull through the entry ratings for each item, enabling direct comparison without re-entering entry data. The side-by-side structure of Schedule 2 — where entry and exit conditions appear in parallel columns — is best served by software that preserves the entry data and presents it alongside the exit assessment during the inspection.

Photo attachment with timestamping. Exit photographs should attach to the specific item and room in the condition report, with timestamps recorded automatically. When the Bond Online response is assembled, the linkage between each photograph and its corresponding report item should be immediately apparent.

Rapid report generation. The NSW Bond Online 14-day response window requires a complete, photo-documented report to be ready on the day of vacancy. Software that generates the complete report during or immediately after the inspection — not through a lengthy back-office process — is what makes this timeline achievable.

ConditionHQ generates AI-assisted condition descriptions from photographs and inspection notes, produces NSW-compliant Schedule 2 report outputs, and maintains a timestamped audit trail suitable for NCAT submissions. The free tier covers three full reports per month — enough to conduct a real NSW exit inspection and evaluate whether the report output meets Bond Online and NCAT evidence standards before committing to a paid plan.