Ingoing Inspections and Property Condition Reports

1. What is the difference between an Ingoing Inspection (II) and a Property Condition Report (PCR)?

Both an II and a PCR are legally required in terms of the new Property Practitioners Act. 
The II is done by the tenant and landlord prior to the tenant taking occupation of a property. It documents the condition of the property and is compared to the Outgoing Inspection (done in the last three days of the lease) in order to determine any damages caused by the tenant. It is not a snag list as some tenants think, but merely records the condition of the property at that moment.

The PCR is a document completed by the landlord at the time of signing a mandate with an agent. It is a declaration by the landlord as to the condition of the property to the best of his knowledge. It is not a guarantee.

2. What happens if they are not completed?

If these reports are not done and not signed by the relevant parties there are consequences. In both cases the property is deemed to have been in perfect condition and any subsequent claims will have to be based on that premise.

An II is vital if the landlord wants to hold the tenant liable for any damages which may occur during the lease. Without an II the landlord will not be able to make any deductions from the deposit.

If the PCR is not completed and signed by the landlord, the agent may not claim any commission when she causes a lease agreement to be concluded. Any agent who is legally compliant will therefore not accept a mandate without a PCR. The landlord may later be held liable for a defect in the property he was aware of at the start of the lease, but did not declare.

3. Why is the new mandate so much more complicated than the old mandate?

At Seeff we pride ourselves on being fully legally compliant and up to date. The new mandate complies with the latest legislation which came into effect on 1 February 2022. The new mandate protects the landlord by making the terms of the agreement very clear and comprehensive. As a landlord you will know upfront exactly what you can expect your agent to do as well as what the costs will be for those services.

None of us likes change, but some change is unavoidable and is often for the better. We believe the new legislation and the new requirements it has resulted in are better for the industry. Both landlord and tenant are more well protected by the II and PCR.