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To conduct a condition inspection report before a new tenant moves in, it's crucial to perform this inspection prior to handing over the keys. This is important because if any damage exists prior to the inspection, it will be challenging to prove the tenant's responsibility for it later, which could prevent you from recovering repair costs or adjusting their security deposit. Ensure all information is filled out accurately. The speaker refers to a condition inspection report specific to British Columbia, noting that each province or state has designated courts dealing with tenant issues.