What document is required if an owner requests a security deposit from tenants?

The required document when an owner requests a security deposit from tenants is the Condition Report. This report serves a specific function in the rental process; it outlines the state of the rental property before the tenant moves in. By documenting the condition of the property, it provides a baseline that can be referenced when the tenant moves out. This helps to identify any damage or necessary repairs that may occur during the tenant's occupancy.

The Condition Report protects both the landlord and the tenant. For the landlord, it ensures that they have documentation to support any claims regarding the return of the security deposit, particularly if there is damage beyond normal wear and tear. For the tenant, it provides a safeguard against unfair deductions from the security deposit since the condition of the property at the start of the lease is clearly outlined.

Other documents such as the Tenancy Agreement outline the terms of the lease, but they do not provide a record of the property's condition. The Agency Agreement is related to the relationship between a realtor and their client, and the Tenant Application Form is primarily used to gather information about prospective tenants. While these documents are important in the rental process, they do not fulfill the specific requirement for documenting the condition of the property regarding a security deposit request.