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When conducting a condition inspection report for a new tenant, it's vital to complete this before handing over the keys. This is important because any pre-existing damage needs to be documented; otherwise, proving that the tenant caused it may be difficult. Without proper documentation, you won't be able to pursue compensation through the tenancy tribunal or court for damages. Additionally, this report is essential for adjusting the security deposit or damage deposit. Each location has specific regulations and courts for tenant matters, so it's best to use a condition inspection report template suitable for your province or state.