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When a rental agreement ends, renters (tenants) and rental providers (landlords) make a bond claim to the Rental Dispute Resolution Victoria (RDRV) to repay the bond.
A bond claim is a form which tells the RTBA how a bond should be repaid. Bond money is returned to renters when they move out at the end of the agreement, unless there is a reason for the rental provider to claim some or all of the bond.
The RTBA only repays the bond when everyone listed on the bond agrees on how it should be repaid or has been ordered by the Victorian Civil and Administrative Tribunal (VCAT).
If you can't agree on the bond, either the renter or the rental provider can apply to Rental Dispute Resolution Victoria (RDRV). Find out more about going to RDRV.
If the dispute is not resolved by RDRV, the RDRV can help you go to the VCAT for a decision. Find out more about going to VCAT.
Bonds cannot be claimed to pay rent in an ongoing rental agreement.
Reasons for claiming bond
The rental provider might claim a bond for compensation. This might be because the renter:
- damaged the property
- owes the rental provider for rent or charges
- has not left the property reasonably clean
- is missing items, for example, locks
- made certain changes to the property without asking.
Rental providers cannot claim bond for fair wear and tear or for damage which was the rental provider’s responsibility to repair.
Final inspections
A rental provider, property manager or agent will do a final inspection at the end of the rental agreement. The condition report should be used to compare any changes to the property during the agreement.
The renter must be present during the final inspection, or have been given a reasonable opportunity to be there.
Damage and changes to the property
The condition report records the condition of the property at the start of the tenancy. It is used to compare the condition of the property at the beginning of the rental agreement to the end.
If renters and rental providers take photos at the beginning of the rental agreement, these can act as a record of the state of the property at the start of an agreement. This may help identify any damage during the agreement.
Unpaid rent or charges
If the renter owes rent after the rental agreement has ended, the rental provider may claim the owed amount from the bond.
Fair wear and tear
Rental providers cannot claim bond to cover fair wear and tear.
Fair wear and tear is deterioration because of:
- reasonable use of the property
- natural environmental forces.
Examples of fair wear and tear might be faded curtains or worn kitchen bench tops. Ripped curtains or broken bench tops might be considered damage.
Reasonable use of the property means use that most people would think is fair. The law does not define ‘reasonable use’. This is why renters and rental providers are encouraged to discuss the state of the property and come to a mutual agreement before making a claim to the RTBA. If people cannot agree what is reasonable, they can apply to RDRV or VCAT to make the decision for them.
Bond disputes and problems
Sometimes renters and rental providers disagree on what might be claimed on the bond. For example, a renter might believe they are not responsible for damage, or that the damage is due to fair wear and tear. Renters and rental providers are encouraged to negotiate and come to a mutual agreement on the distribution of a claim repayment.
If everyone on the bond cannot come to a mutual agreement, any party can apply to VCAT or RDRV, who will hear the reasoning of each party and make the decision for them. VCAT or RDRV will provide a legally binding order which can be submitted to the RTBA. The RTBA will distribute the bond in accordance with the order.
A renter can also start a renter-initiated claim without the agreement of the rental provider.
Sometimes, no agreement can be made for other reasons, including when the renter or rental provider is not contactable. The remaining party can seek an order from VCAT or RDRV to repay the bond in these situations.
Find out more about resolving bond disputes and other problems claiming a bond.
How to claim a bond with the RTBA
Bonds are claimed using the RTBA website.
Rental providers must start a claim with the RTBA within 10 business days of the rental agreement ending, unless a renter initiates a claim first.
Rental provider-initiated claims with agreement
Rental providers must be registered with the RTBA to start the claim. Usually, rental providers will only start the claim after everyone has agreed on how it should be repaid.
When the rental provider submits the claim, every renter on the bond receives an email notification with a link to review and accept the claim. Renters must accept the claim within 14 days or the claim will no longer be available to complete. The rental provider will have the option to restart the transaction with the previous details pre-filled.
Renters can request a change to the claim if they think something is wrong.
Once everyone has accepted, the RTBA will usually repay the bond within one business day.
Claims which the RTBA reviews
Sometimes a party needs to attach supporting documentation to their bond claim when they make a submission. This typically occurs when a VCAT order cannot be validated, or a court other than VCAT has made an order. The party can attach a copy of the order to the claim to be reviewed by the RTBA instead.
The RTBA receives and reviews the transaction and supporting documentation. If the supporting documentation is satisfactory, the RTBA repays the claim and closes the bond.
The transaction will remain pending until the RTBA complete their review.
Parties to the bond can also attach documentation for review in situations where agreement cannot be reached, but an order is not required. An example of this is when a sole renter has died.
Bond claims for Homes Victoria loans
Bonds funded by Homes Victoria are returned in full to Homes Victoria at the end of a rental agreement, unless the rental provider wants to claim any or all of the bond. The rental provider must obtain an order from VCAT if they want to claim a Homes Victoria funded bond. Learn more about Homes Victoria bond loans.
How the RTBA repays a bond
The RTBA repays bonds to the nominated bank account During a claim, parties who are receiving a repayment will provide their bank account details. The RTBA pays bonds to both Australian and international bank accounts.
It is important that you double check that the banking account details you provide to the RTBA during your claim are correct. For privacy reasons the RTBA does not keep renter’s banking details on record and cannot double check your details on your behalf.
If you have not provided valid account details, the RTBA will retain the repayment until you provide a valid payment option.
International bank deposit
If you are nominating an international bank account, you may be required to provide extra information:
- an IBAN or SWIFT number
- a forwarding address
If you are overseas and need advice on getting your bond back, submit an enquiry to the RTBA.
Sections of the Act
If you want to know what the law says about bond claims and refunds, you can read these sections of the Residential Tenancies Act 1997:
- Section 411AB – Matters that may be subject of bond claim
- Section 411AD – Disputed bond claims