A property inspection and condition report template that documents the state of a rental at move-in, move-out, and routine inspections. It captures the condition of every room, a photo log, a damage and deduction schedule, and signatures from both the tenant and the inspector — the record you need to justify a security-deposit deduction or defend one. Use the same document at move-in and move-out so the before-and-after is undeniable.
Who needs this
Landlords, property managers, and leasing teams who need a defensible record of a unit's condition. The move-in and move-out condition report is the single most useful document in a security-deposit dispute, and most disputes are lost because there was no dated, signed, photographed baseline. This template gives you one. It suits single-family rentals, apartments, and small commercial spaces, whether you inspect on paper, on a tablet, or feed the photos into an AI inspection tool.
What's inside
- Inspection header — property, unit, inspection type, date, and inspector
- Room-by-room condition grid — rate walls, floors, fixtures, and appliances
- Standard condition ratings and a legend everyone reads the same way
- Photo log — numbered placeholders tied to each noted issue
- Damage and deduction schedule — item, cause, and estimated cost
- Utilities, keys, and safety-device check (smoke and CO detectors)
- Tenant and inspector sign-off with date lines
- Move-in versus move-out comparison guidance
Preview
Property Inspection & Condition Report
Inspection type: [MOVE-IN / MOVE-OUT / ROUTINE] · Date: [DATE] · Inspector: [NAME] · Tenant: [NAME]
1. Inspection Details
Capture who inspected, what, and when. These fields are what make the report admissible evidence rather than a loose note.
2. Condition Rating Legend
Everyone should read a rating the same way. Use this legend consistently across move-in and move-out so the comparison is fair.
The full template continues with 7 sections. Grab the editable Word file using the form, then customize the bracketed [PLACEHOLDERS] for your business.
How to use it
- Choose the inspection type at the top — move-in, move-out, routine, or drive-by — and fill in the property, unit, and date.
- Walk the unit room by room and rate each surface and fixture using the condition legend, noting anything below 'good' in the notes column.
- Photograph every issue you note and record the photo number next to it, so the picture and the note are linked.
- At move-out, compare against the signed move-in report and record only new damage beyond normal wear and tear on the deduction schedule.
- Have the tenant and inspector both sign and date. Give the tenant a copy and keep the signed original with the lease file.
- To scale this across a portfolio, feed inspection photos into an AI tool that flags damage and drafts the report — see our AI for property management page.
Frequently asked questions
- A property inspection report documents the condition of a rental at a point in time — most importantly at move-in and move-out. It is the primary evidence in a security-deposit dispute: a dated, signed, photographed move-in report establishes the baseline, and the move-out report shows what changed beyond normal wear. Managers also use routine inspections to catch maintenance issues early and confirm lease compliance.
- Yes. It is a free, editable Microsoft Word (.docx) file. Enter your email to receive it, then add your logo, adjust the room list to match your units, and reuse it for every inspection. There is no charge and no watermark.
- Normal wear and tear is the expected decline from ordinary use — faded paint, minor carpet wear, small nail holes — and you generally cannot deduct for it. Damage is harm beyond ordinary use, such as large stains, holes in walls, broken fixtures, or filth requiring extra cleaning, and it is deductible. The condition grid and deduction schedule in this template help you separate the two and tie each deduction to a photo.
- You should. A report signed by both the tenant and the inspector is much stronger evidence than an unsigned one. If the tenant is not present or refuses to sign at move-out, note that on the form, take thorough dated photos, and send the tenant a copy — many states require you to give the tenant a chance to be present. Check your local rules.
- AI can speed up inspections and reporting. Tools now let an inspector photograph each room while AI flags likely damage, drafts the condition notes, and assembles the report against the move-in baseline. It does not replace a human walkthrough or legal judgment about what is deductible, but it cuts the write-up time sharply. See our AI for property management page for how teams set this up on their portfolio.
This template is provided by Layer3 Labs for general informational purposes only and is not legal advice. Security-deposit deductions, inspection notice, and what counts as normal wear and tear are governed by state and local law, which varies widely. Confirm your jurisdiction's requirements — and consult a qualified attorney for any contested deposit — before relying on this report.