Bonds

You should only pay the bond after:

• You have an agreement with the rooming house operator
• The rooming house operator 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 rooming house operator has to give it back to you on the next business day after you tell them you don’t want to rent the room.

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

The rooming house operator must lodge your bond with the Residential Tenancies Bond Authority (RTBA). The RTBA holds your money until you move out.

You have 2 options for paying the bond. You can:

• Pay the bond to the rooming house operator so they can transfer it to the RTBA, or
• Pay the bond directly to the RTBA

If you have to pay extra bond money for modifications to your room that must be removed when you move out, this will need to be paid and lodged as a separate bond.

Paying the bond to the rooming house operator

If you choose to pay your bond to the rooming house operator so they can transfer it to the RTBA, follow these steps:

1. You pay the rooming house operator. Make sure you get a receipt, especially if you pay cash.
2. The rooming house operator lodges your bond with the RTBA within 10 business days of receiving it.
3. The RTBA sends you an email and text 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 bond lodgement details. If something is wrong, you can update it. If you update anything other than your contact details, the changes are sent to the rooming house operator for review. You then get another email and text with a link to the updated bond lodgement details.
5. If all the details are correct, you can accept the bond lodgement.
6. The RTBA emails you a receipt. If you don’t receive a receipt within 15 days of accepting the bond lodgement, contact the RTBA on 1300 137 164.

If the rooming house operator does not lodge your bond 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 rooming house operator 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].

Paying the bond directly to the RTBA

If you choose to pay your bond directly to the RTBA, follow these steps:

1. Tell the rooming house operator that you want to pay the bond directly to the RTBA.
2. The rooming house operator starts the bond lodgement process with the RTBA.
3. The RTBA sends you an email and text 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 bond lodgement details. If something is wrong, you can update it. If you update anything other than your contact details, the changes are sent to the rooming house operator for review. You then get another email and text with a link to the updated bond lodgement details.
5. If all the details are correct, you can accept the bond lodgement.
6. You receive a second email with a link to the payment page. This link will expire 48 hours after you accepted the bond lodgement.
7. You can pay by BPAY, debit card or credit card. If you are paying by debit card or credit card, you must pay the bond within 48 hours, before the link to the payment page expires. If you are paying with BPAY, you have 8 days to pay the bond and can pay after the link to the payment page has expired.
8. The RTBA emails you a receipt. If you don’t receive a receipt within 15 days of lodging the bond, contact the RTBA on 1300 137 164.

Your bond number

When you accept the bond lodgement, the RTBA sends you a receipt with your bond number. Keep your bond number somewhere safe in case you need it to change your contact details on the bond or to claim your bond back at a later date. You can go to the RTBA website to look up your bond.

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

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

The condition report says what your room was like when you moved in.

The rooming house operator has to give the report to you by the date you move in. It can either be an electronic copy or 2 paper copies.

A detailed condition report with photos can help protect your bond if the rooming house operator says there is damage when you move out.

You have 5 business days from your agreed move-in date to check the room 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 rooming house operator 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 room and adding extra detail to the report if needed
• Making notes in the report if you disagree with what the rooming house operator has written
• Taking photos (both when you move in and when you move out)
• Giving photos to the rooming house operator if you think there are big differences between what they say in the report and what you say

If the rooming house operator does not give you a condition report, you can complete your own and give it to them within 5 days of moving in. Consumer Affairs Victoria has a template for creating a condition report.

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

Find out more on our page about condition reports.

Some rooming house operators ask residents 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.

If you pay a bond when you move in, it covers any damage caused by your pet. The rooming house operator 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 in full
• Divided between you and the rooming house operator
• Paid in full to the rooming house operator

To start your claim, go to the RTBA website and look up your bond.

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 rooming house operator know. If they want 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, the RTBA pays out your bond.

If you and the rooming house operator agree about how the bond should be repaid, you can put in a joint claim. You can do this at any time, even before you move out. But if the rooming house operator 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.

The only claim the rooming house operator 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 you move out.

If the rooming house operator 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.

The rooming house operator 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 room 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 you made to the room without asking the rooming house operator, or that you did not remove when you moved out, after you had agreed to do so

If your rooming house operator 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 the rooming house operator 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 the rooming house operator 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 the rooming house operator 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 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 the rooming house operator 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 rental provider (like a rooming house operator), 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. You will not have to pay any fees to go to this hearing. 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 rooming house operator applying to RDRV.

The rooming house operator must have applied to RDRV no later than 10 business days after your residency at the rooming house ended. If they applied any later, you can ask VCAT to dismiss their application. However, the rooming house operator 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 rooming house operator can still make a new application to RDRV for compensation.

If you reach an agreement before the hearing

Before the VCAT hearing, you and the rooming house operator 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 rooming house operator can give the written agreement or VCAT consent order to the Residential Tenancies Bond Authority (RTBA) to pay out the bond.

The rooming house operator must prove to VCAT why they should get any of your bond

If the dispute goes to a formal VCAT hearing, the rooming house operator 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 rooming house agreement 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 the rooming house operator is entitled to all or part of your bond, it will order the RTBA to pay the amount to them. Any remaining bond money will go back to you. You and the rooming house operator can use this order to claim the money from the RTBA.

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 rooming house operator. 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, the rooming house operator must lodge the amounts as 2 separate bonds with the RTBA, even though they are for the same room. See more on this page about the steps for paying your part of the bond.

We recommend you do not inform the rooming house operator that you intend to use a bond loan until they accept you for the rooming house agreement.

If the rooming house operator doesn’t want any of the bond when you move out, you or the rooming house operator 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 rooming house operator 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 rooming house operator 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-one makes a claim to the RTBA, DFFH will not know you have moved out and the loan will remain against your name.

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

If the rooming house operator wants any of your bond and you disagree

If the rooming house operator 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 the rooming house operator 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 and a bond loan covered the rest, VCAT will generally deduct money for the rooming house operator from the part of the bond you paid before deducting any money from the bond loan amount.

If the rooming house operator gets any of the bond loan money, you may still need to repay the 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 rental providers (such as rooming house operators) in numbered sections.

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

• Section 95 – Payment of bond
• Section 96 – Maximum bond limits
• Section 99A – Rent payment
• Section 405 – Bond lodgment form
• Section 406 – Duty to pay bond to RTBA
• Section 409 – What if the rental provider is late in lodging the bond
• Section 411 – Bond claims
• Section 419A – Application to VCAT for bond

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

The Residential Tenancies (Rooming House Standards) Regulations 2023 set out the privacy, safety, security and amenity standards in rooming houses.

These other Acts and regulations also apply to bonds in rooming houses:

• 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