Victoria Condition Report Requirements: A Property Manager's Compliance Guide (2026)
Complete guide to VIC condition report obligations under Section 35 of the Residential Tenancies Act 1997. Covers Form 4, the 5-business-day rule, Section 35A VCAT challenges, exit reports, and bond claims.

Quick Answer
In Victoria, property managers must give renters two copies of a completed and signed condition report (or an electronic copy) before they enter occupation, using the prescribed form — Form 4 of the Residential Tenancies Regulations 2021 — under Section 35 of the Residential Tenancies Act 1997. Renters have 5 business days from move-in to complete and return their section. The same report is used at exit, with the end-of-tenancy section completed within 10 days of the agreement ending. A signed condition report is conclusive evidence of the property's condition, making accuracy at entry critical for any bond claim at VCAT.
Why VIC Condition Reports Carry More Legal Weight
Victoria's residential tenancy framework treats condition reports with a level of legal formality that sets it apart from most other states. Under Section 35 of the Residential Tenancies Act 1997 (Vic), a condition report signed by both parties is not merely useful supporting evidence — it is "conclusive evidence" of the state of repair and general condition of the premises on the day it was prepared.
In practical terms, this means that if your entry condition report records a wall as being in good repair and the renter does not dispute that assessment in writing within 5 business days of moving in, that becomes the legally established baseline for the entire tenancy. At the Victorian Civil and Administrative Tribunal (VCAT), property managers who present a well-documented, accurately completed entry condition report consistently have their bond claims upheld. Those who present a vague, incomplete, or improperly completed report — or whose report was never properly signed and returned — often do not, regardless of the actual state of the property at exit.
The March 2021 reforms under the Residential Tenancies Amendment Act 2018 strengthened the condition report framework significantly. They introduced a new prescribed form, updated the regulations, and created a formal mechanism for either party to challenge an inaccurate condition report at VCAT within 30 days of the rental agreement commencing. If your practice hasn't been reviewed since before March 2021, several requirements have changed.
The Legal Obligation — Section 35 of the Residential Tenancies Act 1997
The core entry condition report obligation sits in Section 35 of the Residential Tenancies Act 1997 (Vic). That section requires the residential rental provider — the landlord or, in practice, the property manager acting as their agent — to give the renter two copies of a completed and signed condition report, or an electronic copy, before the renter enters occupation of the premises.
The report must be in the prescribed form. Since the March 2021 reforms, the prescribed form is Form 4 of the Residential Tenancies Regulations 2021 (Vic). You cannot use a generic inspection checklist, a form from another state, or an unapproved template and have it carry the same legal weight under the Act. Consumer Affairs Victoria provides the current prescribed form as a downloadable Word document from their website.
Section 35 also governs what happens after the renter receives the report. The renter must complete their section, sign the report, and return one copy to the rental provider within 5 business days of their move-in date as stated in the rental agreement. The renter can add comments to any item they disagree with. If the renter does not return the report within that period, the report as completed and signed by the rental provider stands.
At the end of the tenancy, the same condition report is used again — the rental provider or agent completes the "End of rental agreement condition report" section within 10 days of the tenancy ending. The entry and exit sections of the same document are then compared for bond purposes. This single-document approach is one of the features of Victoria's system that makes it relatively clear-cut at tribunal, provided the entry section was completed properly.
The Prescribed Form — What Form 4 Requires
Consumer Affairs Victoria's prescribed condition report form must be completed in full. The form works in two stages: the rental provider's section (completed before the renter enters occupation) and the renter's section (completed within 5 business days of move-in).
The rental provider's section requires documentation of every significant area and item in the property. This includes the condition of floors, walls, ceiling, windows, and doors in each room; fixed appliances such as cooktops, ovens, and rangehoods; heating and cooling units; bathroom fixtures and fittings; outdoor areas including gardens, fencing, and letterbox; the garage or car park where applicable; and the condition of all inclusions listed in the tenancy agreement such as blinds, curtains, and light fittings.
The form uses a rating system (typically good, fair, or poor) for each item, with space for written comments. Critically, the form also includes a section for photos. While photographs are not explicitly required by the Residential Tenancies Act 1997 itself, Consumer Affairs Victoria strongly recommends them, and VCAT will consistently give more weight to condition reports supported by timestamped photographs tied to specific items.
The prescribed form is the minimum requirement. You may supplement it with additional pages, extended descriptions, or a photo schedule — the Act permits this. What you cannot do is substitute an entirely different form and claim it satisfies the Section 35 obligation. Agencies using inspection software should confirm that their software generates a report that satisfies Form 4 requirements, not merely a generic inspection template that happens to cover similar ground.
The Entry Process — A Step-by-Step Guide for Property Managers
A compliant VIC entry condition report requires preparation before the handover, not during it. The Act is clear that the report must be given to the renter before they enter occupation — not simultaneously with the keys, and not the morning after. Here is the standard compliant sequence:
Step 1: Complete the rental provider's section during your pre-lease inspection. Walk the property room by room using the Form 4 prescribed template. Rate every item, add written comments for anything that is not in good condition, and photograph every room and every item that shows any wear, marking, or defect. Ensure your photos are timestamped — either through your phone's native camera metadata or through inspection software that captures this automatically.
Step 2: Sign the completed entry section before handover. The rental provider or their authorised agent must sign the condition report before it is given to the renter. An unsigned report does not satisfy the Section 35 obligation.
Step 3: Provide two copies (or an electronic equivalent) at or before handover. For paper copies, give the renter two: one to retain and one to complete and return. If you use inspection software that delivers the report electronically, ensure the renter has access to their copy before or at the moment keys are handed over — not after.
Step 4: Follow up at 5 business days. The renter has 5 business days from their move-in date to complete their section and return a copy to you. Note the date and set a calendar reminder. If they have not returned the report by the deadline, record that fact and retain your original signed copy.
Step 5: Retain the report for the duration of the tenancy and beyond. Consumer Affairs Victoria recommends retaining condition reports for at least two years after the tenancy ends. VCAT bond disputes can and do arise many months after the tenancy has concluded.
The Renter's Section — What Property Managers Need to Understand
The renter's section of the condition report is their formal opportunity to record any disagreement with the rental provider's assessment. Common scenarios: the entry report rates carpet as "fair" but the renter believes it is closer to poor condition, or a wall that the rental provider has marked as good has a mark the renter wants documented.
The renter adds their comments to the relevant items in the renter's section and returns the signed report within 5 business days. Once both sections are completed and signed, that combined document becomes the conclusive evidence of the property's condition at the start of the tenancy.
If the renter returns the report with comments you believe are inaccurate — for example, they rate an item as "poor" when you have photographic evidence showing it was in good condition at entry — you have a formal avenue to address this under Section 35A (covered in the next section).
If the renter does not return the report within 5 business days, this does not automatically resolve the tenancy in the rental provider's favour. It means the rental provider's section stands as the record. Renters who later dispute items at VCAT may argue they were not given a proper opportunity to complete their section — so ensuring the report was properly provided and that the renter was informed of the 5-business-day deadline is important for the rental provider's procedural position.
For property managers, the practical rule is this: document that you provided the report before occupation, document when the renter's copy was due, and note whether it was returned. These procedural facts matter at tribunal.
Section 35A — Challenging an Inaccurate Condition Report at VCAT
One of the most practically significant changes from the March 2021 rental law reforms is Section 35A of the Residential Tenancies Act 1997 (Vic). This section gives either the rental provider or the renter the right to apply to VCAT to amend a condition report they believe is inaccurate or incomplete.
The application must be made within 30 days of the rental agreement commencing. This is a tight window, and it applies to agreements entered into from 29 March 2021 onwards.
For property managers, Section 35A is most relevant when a renter has returned their section of the condition report with comments that are, in your view, not accurate — and where you have photographic evidence supporting your original assessment. Rather than carrying an inaccurate item description into the tenancy record (which could complicate a future bond claim), a Section 35A application asks VCAT to review the disputed item and make a determination.
VCAT's approach to these applications is evidence-based. The Tribunal will consider timestamped photographs taken at entry, any written communications about the disputed items, the renter's comments, and if necessary, testimony from each party. A rental provider with clear, dated photographs showing the item in good condition has a strong position. A rental provider without photographs has a harder case.
In practice, most experienced property managers resolve these disagreements directly with the renter without proceeding to VCAT. But it is important to know that the formal mechanism exists, and that it has a strict 30-day window. If you receive a renter's condition report comments that concern you, assess them promptly.
The Exit Condition Report — Completing the End-of-Tenancy Section
Victoria's approach to exit condition reports is distinct from some other states. Rather than requiring a separate exit form, the Act provides that the same condition report prepared at entry is used at exit — the form includes an "End of rental agreement condition report" section that the rental provider or agent completes.
The rental provider or agent must complete this exit section within 10 days of the end of the rental agreement. Consumer Affairs Victoria also recommends giving the renter a reasonable opportunity to be present for the exit inspection, or at minimum informing them of when it will take place. Excluding the renter from the exit inspection without good reason and then making contested bond claims is a position VCAT tends to view unfavourably if the renter raises it.
The exit inspection should work through the same items covered in the entry report, noting the condition of each at the end of the tenancy. Any deterioration beyond fair wear and tear that was not present at entry is the basis for a bond claim. Where exit condition equals or is better than entry condition, the item should be rated accordingly — do not overstate deterioration.
Fair wear and tear is not defined in the Residential Tenancies Act 1997 directly, but Consumer Affairs Victoria describes it as the normal deterioration of a property from ordinary use over time: minor scuffing on walls in high-traffic areas, light traffic marks on carpet in corridors and living spaces, fading of paintwork over several years of tenancy. Damage — holes in walls, stains on carpet, broken fixtures, burn marks — is distinct from fair wear and tear and is the appropriate basis for a bond claim. See our guide on fair wear and tear vs damage for the practical distinctions with examples.
The comparison between the entry and exit sections of the same condition report is the primary evidence at any VCAT bond hearing. A well-completed entry report makes the exit comparison straightforward. A vague or incomplete entry report makes it almost impossible to establish what changed during the tenancy.
Bond Claims and VCAT — How Condition Reports Are Used
The condition report is the centrepiece of any bond dispute in Victoria. The bond — held by the Residential Tenancies Bond Authority (RTBA) — can only be claimed by a rental provider for unpaid rent, damage to the property beyond fair wear and tear, cleaning costs attributable to the renter, or unreturned keys and property.
When the rental provider or their agent lodges a bond claim through RTBA Online at the end of a tenancy, the renter has 10 business days to object. If they object within that period, the RTBA cannot release the disputed amount, and the matter is referred to VCAT for a hearing.
At a VCAT hearing for a bond dispute, the rental provider will typically need to demonstrate four things:
1. A completed and signed entry condition report — establishing the condition of every relevant item at the start of the tenancy.
2. A completed and signed exit section — showing the condition of the same items at the end of the tenancy and identifying the deterioration claimed.
3. Photographic evidence — timestamped photos cross-referenced to specific items in the report, showing both entry and exit condition where available.
4. Invoices or quotes — for repairs, cleaning, or replacement, showing the cost actually incurred or reasonably expected.
VCAT gives substantially more weight to condition reports with attached photographs referenced to specific items. A report that says "carpet — fair" with an accompanying timestamped photo of the carpet at entry is far stronger evidence than the same words alone.
The most common reason legitimate bond claims fail at VCAT is not an absence of damage — it is an inability to demonstrate what the property looked like at entry. A strong, complete, and well-photographed entry condition report is the single most important document in any Victorian tenancy.
Minimum Standards and Their Connection to Condition Reports
Victoria's minimum standards requirements — introduced in stages from March 2021 under Section 65A of the Residential Tenancies Act 1997 — require that rental properties meet specific habitability standards before being advertised and at the time the tenancy commences. See our VIC rental minimum standards checklist for a full breakdown of what those standards require.
The connection to condition reports is practical and important. If a property is not meeting a minimum standard at the start of a tenancy — for example, the fixed heater in the main living area is not working — that fact should be noted in the entry condition report. Documenting a defect at entry creates a clear record that it was a pre-existing condition rather than damage caused by the renter. This matters for two reasons: it correctly allocates repair responsibility to the rental provider, and it prevents a situation where the renter is later blamed for a defect they did not cause.
Conversely, if a minimum standard item deteriorates or breaks during the tenancy and the entry condition report does not mention it at all, questions arise about whether the defect was pre-existing or caused by the renter. Thorough entry documentation protects both parties: the rental provider can make a legitimate bond claim if the renter damaged an appliance, and the renter is protected from being blamed for a fault that existed before they moved in.
For property managers, the practical rule is to document the working status of every appliance, heater, and fixture included in the minimum standards during the entry inspection. "Fixed heater in living room — tested and working" is a useful entry in the condition report. "Fixed heater — good" without a note that it was tested tells VCAT much less.
Common Mistakes Victorian Property Managers Make
In practice, most condition report problems in Victoria come down to five recurring issues that are straightforward to avoid once you know them:
Using a non-prescribed form. Some agencies use their own templates, general inspection software outputs, or forms from previous years that do not satisfy the Form 4 requirement. Supplementary documentation is fine and often valuable, but the prescribed form must form the basis of the report. Consumer Affairs Victoria takes complaints about non-compliant condition reports seriously.
Not providing the report before the renter enters occupation. The Section 35 obligation is clear: the report must be given before occupation, not at the same time as the keys, and not afterward. Handing the form to a renter as they're already walking through the door is technically non-compliant. Prepare and sign the report at your pre-lease inspection so it is ready before handover day.
Vague or incomplete item descriptions. Entries like "good" or "fair" with no comment or photo are the weakest form of condition documentation. When a renter disputes the condition of an item six months later, a two-word rating with no supporting detail will not hold up against their contrary evidence. Detailed comments and photographs cost two minutes per item at the entry inspection and save several hours at tribunal.
Not completing or retaining the exit section. The exit section of the condition report must be completed within 10 days of the tenancy ending, whether or not there is a bond claim anticipated. Losing or failing to complete the exit section is the fastest way to undermine an otherwise legitimate bond claim at VCAT.
Skipping photographs. They are not explicitly required by the Act but are effectively necessary in practice. VCAT expects them, the renter's legal advisor will ask for them, and any claim that cannot be supported with visual documentation will carry significantly less weight. Photograph every room, every item of concern, and every inclusion listed in the tenancy agreement at both entry and exit.
Inspection Software and the VIC Condition Report Workflow
Completing a compliant VIC condition report — with the prescribed form, per-item ratings, written comments, and timestamped photographs — takes time. Purpose-built inspection software reduces the time per inspection while improving the quality and defensibility of the output.
When evaluating software for Victorian compliance, check four things specifically:
Prescribed form compliance. The software should generate a report that satisfies Form 4 of the Residential Tenancies Regulations 2021, not just a generic inspection output. If the vendor cannot confirm this, request a sample VIC report and compare it against the Consumer Affairs Victoria template.
Per-item photo attachment. Photos should be attached to specific items in specific rooms, not uploaded as an unstructured gallery. When you present your condition report at VCAT, the assessor needs to link "carpet — fair, slight traffic marking at entry" to a photograph of that carpet — not scroll through 90 unorganised images looking for it.
Electronic delivery before handover. The software should be able to deliver the completed and signed report to the renter before they take possession, confirm delivery with a timestamp, and capture their renter's section electronically with a date record.
Entry-to-exit comparison workflow. The exit section should pull through the entry ratings for direct item-by-item comparison, not require you to re-enter all the entry data a second time. The single-document approach required by Victorian law is made much more practical when software handles the continuity.
ConditionHQ generates AI-assisted condition descriptions, exports PDF reports formatted for Australian state requirements including Victoria, and maintains a timestamped audit trail suitable for VCAT submissions. The free tier covers three full reports per month with no credit card required — enough to run a real VIC inspection and assess whether the output meets your compliance needs before committing.
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