What is a PCR, and why are they important?

Perth Real Estate Property Management News & Market Insights  |  2 June 2021

A PCR, or Property Condition Report, is prepared by a property manager prior to a tenant occupying a property, as close as possible to the move-in date.

The comprehensive report documents the property's overall condition (including an inventory of contents, if applicable), considers any pre-existing damage or faults - ideally accompanied by photos - and is legally binding. Its purpose is to compare a property's condition at the commencement of a lease with that at the end of the lease, taking into account fair wear and tear.

The incoming tenant must receive a copy of the PCR within 7 days of the lease commencing, check every item listed, make comments and submit photos if they disagree with anything stated in the report. The PCR must be returned to the managing agent within 7 days; otherwise, it is assumed the tenant accepts that all information contained within it is accurate.  Consequently, a tenant will be deemed liable for any damage not listed on the PCR, for example, a carpet stain or damage to window treatments.

It's important to note that the PCR is not to be used for reporting maintenance items, such as a faulty hot water system or oven, but for superficial items, including chips in paintwork, condition of carpet etc.

A qualified property manager must complete the report so that legal requirements are met. The preparation of PCRs is a high priority and time-consuming task, and as such, owners should be wary of agencies that do not charge a fee to prepare it.  Xceed Real Estate believes that a picture paints a thousand words and ensures hundreds of photos are taken to support each PCR, protecting both owners and tenants best interests.