Bonds

You should only pay the bond after:

• You’ve signed the lease (officially called a rental agreement)
• Your landlord (officially called the rental provider) or their agent has given you their completed and signed condition report

If you pay any money before these things happen, put in writing that it’s a ‘holding deposit’, not a bond. This means the landlord or agent has to give it back to you on the next business day after you tell them you don’t want to rent the property, or after 14 days if you don’t sign the lease (whichever is sooner). If you sign the lease, the holding deposit is generally taken out of your first month’s rent.

In most cases, the landlord or their agent cannot ask you for both a bond and a ‘guarantee’. If they do, this page has information on where to get help.

When you pay the bond, your landlord (officially called the rental provider) or their agent must lodge it electronically with the Residential Tenancies Bond Authority (RTBA). The RTBA holds your money until you move out.

Steps for paying and lodging the bond:

1. You pay the landlord or their agent. Make sure you get a receipt, especially if you pay cash.
2. Within 10 business days, the landlord or agent completes the RTBA online bond-lodgement form.
3. The RTBA sends you an email (and a text if you gave a mobile number) with a link to review the bond lodgement details. If you don’t respond within 14 days, the lodgement is cancelled.
4. You review the details. If something is wrong, you can update it. If you update anything except your contact details, the changes are sent to the landlord or agent for review. You then get another email with a link to the updated bond lodgement details.
5. If all the details are correct, you accept the lodgement and get a transaction number.
6. The RTBA emails you a receipt. If you don’t get a receipt, contact the RTBA on 1300 137 164.

The Consumer Affairs Victoria website has more about lodging the bond with the RTBA.

If you pay a bond and the landlord or agent does not lodge it with the RTBA within 10 business days of receiving it, you can report them to Consumer Affairs Victoria. If you want to send them a letter first, Tenants Victoria has a template letter you can use to tell the landlord or agent that you will take further action if they do not follow the law and lodge your bond with the RTBA.

Download our template letter: Letter to landlord about lodging bond [Word].

If you need assistance, this page has information on how to get help.

The condition report says what your place was like when you moved in. Your landlord (officially called the rental provider) or their agent must give the report to you before you move in, either as an electronic copy or 2 paper copies.

A detailed condition report with photos can help protect your bond if the landlord or agent says things have been damaged when you move out.

You have 5 business days from the move-in date on your lease (officially called a rental agreement) to check the property and return your signed report. Store your copy safely in case you need it when you move out.

You don’t have to agree with what the landlord or agent says in the condition report. If you don’t comment, it’s assumed you agree with what they say.

You can protect your bond by:

• Having a good look around the property and adding plenty of detail to the report
• Making notes in the report if you disagree with what the landlord or agent has written
• Taking lots of photos (both when you move in and when you move out)
• Sending photos to the landlord or agent if you think there are big differences between what they say in the report and what you say

This short video from the Redfern Legal Centre has tips on completing your condition report.

Find out more on our page about condition reports.

Some landlords (officially called rental providers) or their agents ask renters to pay a ‘pet bond’ if they have a pet. They may say that this is to cover costs if the pet damages the property.

There is nothing in the law requiring you to pay an extra ‘pet bond’ if you have a pet. The maximum bond amount of one month’s rent (if your rent is $900 a week or less) applies whether you have a pet or not.

If you pay a bond at the start of your tenancy, it covers any damage caused by your pet. Your landlord cannot ask you for a second ‘pet bond’. If they believe they are entitled to any of your bond when you move out, and you disagree with them, they can apply to Rental Dispute Resolution Victoria (RDRV). Find out more on this page about what to do if your bond is disputed.

You can claim for your bond to be:

• Paid to you
• Paid to someone else, either partly or fully
• Divided between you and landlord (officially called the rental provider)
• Paid in full to the landlord

You can make your claim online on the RTBA website.

You can also update your contact details, such as your email address, on the RTBA online form.

When you make a claim:

1. The RTBA lets the landlord or their agent know, as well as anyone else on your lease (officially called a rental agreement) not included in your claim. If someone wants to stop the bond being paid out, they need to apply to Rental Dispute Resolution Victoria (RDRV).
2. If, after 14 days, no-one has told the RTBA they have applied to RDRV, or everyone has said they are fine for it to be paid out, the RTBA pays out your bond.

If you and your landlord (officially called the rental provider) agree about how the bond should be repaid, you can put in a joint claim. You can do this at any time, even before your tenancy ends. But if the landlord is getting any of your bond as part of the claim, it cannot be made earlier than 14 days before the end of your tenancy.

It’s against the law for the landlord or their agent to ask you to sign a bond claim form that doesn’t say how the bond is to be repaid.

The only claim the landlord (officially called the rental provider) or their agent can make to the RTBA without you is one that says all of the bond is to be paid to you. They can make this sort of claim at any time, even before your tenancy ends.

If the landlord wants any of your bond, and you don’t agree with them, they will need to apply to Rental Dispute Resolution Victoria (RDRV) to resolve the dispute. Find out more on this page about what to do if your bond is disputed.

Your landlord (officially called the rental provider) may apply to Rental Dispute Resolution Victoria (RDRV) if they want part, or all, of your bond for things like:

• Cleaning, if you haven’t left the place reasonably clean. But they cannot expect you to leave it cleaner than when you moved in
• Repairs, if you or your visitors have caused any damage. This doesn’t include everyday wear and tear
• Rent or other costs that are your responsibility
• Replacing locks if you changed or installed any without asking them
• Removing any other modifications to the property that you made without asking the landlord or agent, or that you did not remove when you moved out, after you had agreed to do so

If your landlord (officially called the rental provider) wants any of your bond, and you disagree, they can apply to RDRV to help resolve the dispute. They must apply to RDRV within 14 days of your bond claim to the Residential Tenancies Bond Authority (RTBA) – this stops the RTBA from paying out your bond until the dispute is resolved.

Once your landlord has applied to RDRV, they must give you a copy of their application and any documents or evidence they have attached to it.

An RDRV resolution coordinator will contact you to find out your perspective on the dispute, and may then invite you to participate in dispute resolution at RDRV. For more on the RDRV process, see our page about going to RDRV (Rental Dispute Resolution Victoria).

If you think further negotiation won’t help or that your landlord is being unreasonable, you can choose not to participate in RDRV. You can tell the resolution coordinator that you want the dispute to go straight to a formal VCAT hearing.

Find out more about defending your bond at RDRV and VCAT on our page on disputing bond and compensation claims.

If you reach an agreement at RDRV

If you and your landlord participate in RDRV and reach an agreement on how the bond is to be paid out, make sure you get it in writing.

You can ask for your written agreement to be formalised in a consent order issued by VCAT, which is a legal document to confirm an agreement between parties.

The written agreement or VCAT consent order can be given to the Residential Tenancies Bond Authority (RTBA) to pay out the bond.

For more on what to do if you reach an agreement and tips for drafting agreements, see our page about going to RDRV (Rental Dispute Resolution Victoria).

If you do not reach an agreement at RDRV

You do not have to reach an agreement at RDRV. If you and your landlord cannot resolve all the issues through RDRV, or if either side does not wish to continue with RDRV, you can ask the resolution coordinator to refer the dispute to VCAT for a formal hearing at any time.

When there is a dispute between a renter and a landlord (officially called the rental provider), VCAT can make the final decision. It is not a court but its decision must be followed.

If your bond dispute is not resolved at Rental Dispute Resolution Victoria (RDRV), it may go to a formal hearing at VCAT. The resolution coordinator will help you understand what to expect and get yourself organised.

VCAT will let you know the time, date and location of the hearing. The hearing may take place in person, by phone (teleconference) or by videoconference. Hearings about bond claims are usually held within 4 weeks of the landlord applying to RDRV.

Your landlord must have applied to RDRV no later than 14 days after your lease (officially called a rental agreement) ended. If they applied any later, you can ask VCAT to dismiss their application. However, your landlord can also ask VCAT to allow the delay, and VCAT may grant them the extension. If VCAT does not grant an extension on their bond claim, the landlord can still make a new application to RDRV for compensation.

If you reach an agreement before the hearing

Before the VCAT hearing, you and your landlord can continue trying to reach an agreement, even outside of RDRV. If you reach an agreement, the hearing will not go ahead.

Make sure you get any agreement in writing. You can also ask the resolution coordinator to organise for your agreement to be formalised in a consent order issued by VCAT, which is a legal document to confirm an agreement between parties. For tips for drafting agreements, see our page about going to RDRV (Rental Dispute Resolution Victoria).

You or the landlord can give the written agreement or VCAT consent order to the Residential Tenancies Bond Authority (RTBA) to pay out the bond.

The landlord must prove to VCAT why they should get any of your bond

If the dispute goes to a formal VCAT hearing, your landlord must prove to VCAT why they should get any of your bond. They must show that:

• They have suffered financial loss or property damage
• The loss or damage happened because you breached your lease or Victoria’s rental laws, the Residential Tenancies Act 1997
• The amount they are claiming is reasonable

Defending your bond at VCAT

At the hearing, you can tell your side of the story and present your own evidence. For more on preparing for a hearing and defending your bond at VCAT, see our page on disputing bond and compensation claims.

While you may feel stressed about the hearing, VCAT is less formal than a court and you can get help from Tenants Victoria and other organisations. This page has information on getting help.

You can also find out more on our page about going to VCAT.

VCAT usually decides on the day of the hearing how the bond is to be paid.

If you don’t go to the hearing, VCAT can still make a decision about your bond. For this reason, it is good to attend the hearing if you can. If you are there to tell your side of the dispute, you may get a better result.

After the hearing

If VCAT agrees that you should get your full bond back, it will make an order authorising the RTBA to release it. You can then give this order to the RTBA to get your money.

If VCAT decides someone else is entitled to all or part of your bond, it will order the RTBA to pay the amount to that person. Any remaining bond money will go back to you. You, and anyone getting a share of your bond, can use this order to claim the money from the RTBA.

If you are co-renting, make sure everyone who paid money towards the bond has their name and the amount they paid on the Residential Tenancies Bond Authority (RTBA) bond lodgement form.

If you are sub-renting, the head renter must lodge your bond with the RTBA, naming themselves as the landlord (officially called the rental provider) on the bond lodgement form. When there is a head renter, more than one bond will be lodged with the RTBA for the property – the bond that the head renter has paid the landlord and the bond that each sub-renter has paid the head renter. Make sure you get a receipt when you pay your bond and check with the RTBA to confirm that it has been lodged.

Find out more on this page about paying the bond when you move in.

It’s common in share houses for people to move in and out while the same tenancy continues.

If you want to change who is on the lease (officially called a rental agreement), your landlord (officially called the rental provider) or their agent needs to agree in writing. If they don’t, you can apply to VCAT for permission. Changing a name on a lease is called a ‘transfer’ because you’re transferring the lease, or part of it, to someone else.

If you’re moving out, as well as getting your name taken off the lease, it’s important you get the bond updated to the new renter’s name, if someone else is moving in. They should pay the bond money directly to you in exchange for having your part of the bond transferred to them.

Find out more on our page about lease transfers and subletting.

Updating the names on the bond

If names are changed on the lease, they also need to be changed on the bond held by the Residential Tenancies Bond Authority (RTBA).

Your landlord or agent should start the process of updating the renters on the bond with the RTBA within 5 days of the change to the lease.

The Consumer Affairs Victoria website has the steps the landlord or agent should follow for transferring renters on a bond.

Co-renters, sub-renters and head renters can make an online claim to the Residential Tenancies Bond Authority (RTBA) to have the bond refunded at the end of a tenancy.

If you make a claim to the RTBA that excludes any co-renters listed on the lease (officially called a rental agreement), the RTBA will let them know, including past co-renters if they’re still named on the bond.

If a co-renter has paid part of the bond but has not been included in a claim, they can make their own claim to the RTBA or apply to Rental Dispute Resolution Victoria (RDRV) to resolve the issue, as long as the lease has ended and the RTBA has not yet released the bond.

Find out more on this page about:

• Getting the bond back when you move out
• What to do if your bond is disputed

Tenants Victoria cannot advise in disputes about share houses because many situations are not covered by the Residential Tenancies Act 1997, and we cannot take sides between renters. The only exception is when a renter in a share house is experiencing family or personal violence. Find out more on our page about family violence.

Co-renters can dispute a landlord’s bond claim at Rental Dispute Resolution Victoria (RDRV), but if one renter is participating at RDRV on behalf of the others, they will need the written authorisation of the other renters to reach an agreement on their behalf. Find out more about reaching an agreement at RDRV on our page about going to RDRV (Rental Dispute Resolution Victoria).

For more on your legal rights when you share a house or flat, see our page about private rentals.

If you are approved for a bond loan, DFFH will tell you when your loan is approved and email the bond loan voucher directly to the landlord (officially called the rental provider) or their agent. They will then use the voucher to lodge the bond with the Residential Tenancies Bond Authority (RTBA).

If the loan covers some of the bond money and you pay the rest, your landlord or agent must lodge the amounts as 2 separate bonds with the RTBA, even though they are for the same property. See more on this page about the steps for paying your part of the bond.

We recommend you do not inform the landlord or agent that you intend to use a bond loan until you have been accepted for the lease (officially called a rental agreement).

If your landlord (officially called the rental provider) doesn’t want any of the bond when you move out, you, the landlord or their agent can make a claim to the Residential Tenancies Bond Authority (RTBA) for the bond loan to go back to DFFH, and a second claim for any bond money you paid to be returned to you.

If the landlord wants part, or all, of the bond when you move out, and you agree with them, you can make a joint claim to the RTBA for the money to go from the bond loan or from an amount you paid, or both. If the landlord gets any of the bond loan money, you will need to repay that amount to DFFH. In some situations, DFFH may make an exemption and waive your debt. Or it may offer another bond loan, allowing you to pay your debt for the first bond loan at a later date. The HousingVic website has more on repaying a RentAssist bond loan.

If no claim is lodged with the RTBA, DFFH will not know the lease (officially called a rental agreement) has ended and the loan will remain against your name.

Find out more on this page about getting the bond back when you move out.

If your landlord wants any of your bond and you disagree

If your landlord wants part, or all, of your bond when you move out, and you disagree, they can apply to Rental Dispute Resolution Victoria (RDRV) to stop the RTBA paying out your bond until the dispute is resolved. RDRV is a free service that helps resolve rental disputes without needing to go to a formal hearing at VCAT.

If you and your landlord cannot reach an agreement at RDRV, you may need to go to a formal VCAT hearing. At the hearing, VCAT will decide how the bond is to be paid out.

If you paid part of the bond, VCAT will generally deduct the money for the landlord from the part of the bond that you paid before deducting any money from the bond loan amount.

If your landlord gets any of the bond money, you may still need to repay the bond loan to DFFH at some point in the future.

Find out more on this page about what to do if your bond is disputed.

If you need support in dealing with bonds, help is available.

There are step-by-step guides, self-help tools and other resources to assist you with bonds.

The Residential Tenancies Act 1997 is Victoria’s main law for renting. It describes the rights and duties of renters and landlords in numbered sections.

The sections in this list relate to bonds in private rentals. Click on a link to see the section in the Act.

• Section 406 – Bond must be lodged by landlord
• Section 419A – Application to VCAT for bond
• Section 411 – Claims for rental bonds
• Section 411A – Notice of claim by RTBA
• Section 411AB – Rental providers claims
• Section 411AC – Bond refunds – no disputes
• Section 411AD – Disputed claims
• Section 411AE – Repayments to other persons
• Section 425 – Notice must be given to RTBA of tenant transfer

The Residential Tenancies Regulations 2021 provide more detail and definitions, and specify updates to the Residential Tenancies Act.

These other Acts and regulations also apply to bonds in private rentals:

• Victorian Civil and Administrative Tribunal Act 1998: Section 120 – Re-opening an order on substantive grounds
• Victorian Civil and Administrative Tribunal Rules 2018: Reg 8.07 – Documents required to be included with certain applications