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When a new tenant enters a rental unit, conducting a condition inspection report is essential before handing over the keys. This is crucial to document any pre-existing damage, as failing to do so makes it difficult to prove if the tenant caused it later, hindering your ability to claim damages in tribunal or court. Without the report, you also risk losing the security deposit or damage fund. It's important to accurately complete the report, as specific regulations may vary by province or state. In British Columbia, for instance, there is a designated court for tenant disputes.