Property condition reports explained: which kind you need and what it costs
A property condition report is a snapshot of selected parts of a property at a particular time. The name can refer to a tenancy report, pre-purchase inspection, insurer survey, desktop review or dilapidation report. Its usefulness depends on why it was prepared, who commissioned it, what the author could access and who is allowed to rely on it.
- 01TenancyThe bond’s evidence: condition at entry and exit
- 02PurchaseThe buyer’s read: a pre-purchase building and pest inspection
- 03Other usesDesktop reads, insurer surveys, dilapidation records
One label, several documents. Purpose is how you tell them apart.
One name, several documents
In Australia the same five words cover a tenancy form, a pre-purchase inspection, an insurer’s survey, a desktop read and a dilapidation record. Before comparing reports or prices, work out who ordered it, why, what it could reach, and who is allowed to rely on it.
| Report | Who commissions it | The question it answers | Typical cost |
|---|---|---|---|
| Rental condition report | Landlord/agent and tenant, at entry and exit | What state was the property in when the tenancy started and ended? | Free, part of the tenancy process |
| Pre-purchase building inspection | The buyer | What visible defects and risks does this building have right now? | Roughly $400–$800 combined with pest, for a standard home |
| Desktop condition read | A buyer or owner | What is this building likely to need, and where should I look? | A fraction of a physical inspection |
| Insurance condition survey | The insurer, or the owner | What property information does this insurer require for underwriting or risk review? | Varies, confirm the insurer’s required scope |
| Dilapidation report | A developer or a neighbouring owner, before nearby works | What condition was this property in before construction started next door? | Quoted per property |
| Property condition assessment (commercial) | An investor or lender | What capital will this asset need over the holding period? | Scoped and quoted per asset |
If you are renting: the report that protects your bond
For tenants, an entry condition report records the premises at the start of a tenancy under the applicable state or territory process. Review it by the deadline, add missing items, use clear dated photographs where permitted and keep a copy. At exit, it helps distinguish pre-existing condition, fair wear and tenant-caused damage. Follow the current tenancy authority instructions for the property's jurisdiction.
If you are buying: the inspection kind
For a buyer, the relevant document is commonly a pre-purchase building inspection: an on-site, usually visual and non-invasive assessment of the agreed, safely accessible areas. The engagement should state timber-pest scope, the Australian Standard used, limitations and reliance rights. The inspection quote guide explains how to compare live, itemised quotes.
A desktop condition read uses era, construction, documents and public signals to triage a shortlist and direct later questions. A physical inspection then examines accessible conditions at the property. Read how the two work in sequence.
Insurance condition surveys
An insurer may request property information or its own survey before offering or renewing cover. Ask what document and evidence it requires before commissioning one. The home condition and insurance guide covers underwriting, rebuild cost, exclusions, maintenance and evidence.
Dilapidation reports: before the neighbours dig
A dilapidation report creates a dated baseline before nearby construction, demolition or excavation begins. It records existing cracks, paths and other relevant conditions for later comparison. Arrange it before work starts and pair it with the wall-crack guide.
Property condition assessments: the commercial cousin
A property condition assessment is more common in commercial property, where investors and lenders assess an asset and its likely capital needs. For a home, maintain the equivalent evidence through a current property record.
Which one do you need?
- Starting or ending a lease: the rental condition report, done thoroughly, with photos.
- Serious about buying a specific property: the pre-purchase building and pest inspection.
- Weighing several properties, or wanting an independent early read: the desktop condition read.
- Insurer asking questions, or an older home being priced for cover: the insurance condition survey, plus a current condition record of your own.
- Major construction starting next door: the dilapidation report, arranged before the works begin.
Frequently asked questions
What is a property condition report?
A written record of the condition of a property at a point in time. In Australia the term covers several different documents: the free rental condition report completed at the start and end of a tenancy, the pre-purchase building inspection a buyer commissions, a desktop condition read, an insurance condition survey, and a dilapidation report made before nearby construction. Which one you need depends on the decision it has to support.
Is a property condition report the same as a building inspection?
For buyers, the phrase often means a pre-purchase building inspection. It also names rental entry and exit forms, insurance surveys and dilapidation reports, so confirm the purpose and scope.
How much does a property condition report cost?
It depends entirely on which kind: the rental condition report is free as part of the tenancy process; a combined pre-purchase building and pest inspection runs roughly $400–$800 for a standard home; a desktop condition read costs a fraction of a physical inspection; insurance condition surveys and dilapidation reports are scoped and quoted, and insurance surveys are often arranged by the insurer.
What is an insurance condition survey?
A property assessment requested or accepted for underwriting or risk review. Confirm the required scope with the insurer first. Policy wording and insurer assessment control the outcome.
What is a property condition assessment?
Mostly a commercial-property term: an assessment, commissioned by an investor or lender, of an asset’s condition and the capital it is likely to need over a holding period. The residential equivalent of the habit is a current condition read of your home, kept up to date over time.
Do I need a dilapidation report if construction is starting next door?
It creates a dated baseline for later comparison. Arrange it before excavation, demolition or construction begins.
How this guide was researched
We sorted the reports by purpose, commissioning party, reach and the decision each one supports.
Limits: General Australian guidance only. Contracts, statutes, policies, site conditions and professional scopes vary; obtain advice for the property and decision in front of you.
Sources
- Inspection reports before buying propertyNSW Government · accessed 2026-07-19
- Choosing home insuranceMoneysmart, Australian Securities and Investments Commission · accessed 2026-07-19
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