Disputing bond and compensation claims
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This information is a guide and should not be used as a substitute for professional legal advice.
Rental Dispute Resolution Victoria (RDRV) now handles some rental disputes instead of VCAT. Until we roll out more information, see our RDRV overview: tenantsvic.org.au/rdrv/
Summary
If the park or caravan owner wants any of your bond, or compensation, for things like damage or cleaning, and you disagree, they can apply to the Victorian Civil and Administrative Tribunal (VCAT) for an order requiring you to pay. You only have to pay if VCAT makes the order.
VCAT is similar to a court and hears many disputes in Victoria between renters and rental providers (such as park and caravan owners), who must follow its decisions.
The park or caravan owner will need to prove to VCAT why they should get your money. You can go to the VCAT hearing and say why you should not have to pay or why the amount should be less. We can help you do this.
What does ‘caravan park resident’ mean?
If a caravan in a caravan park has been your main home for at least 60 days in a row or you have signed a residency agreement with the park or caravan owner, you are likely a resident and have legal rights that don’t apply to holidaymakers. Find out more on our page about caravan parks.
Stages of bond and compensation claims
The law says you are responsible for keeping your rented home reasonably clean and not causing damage. This includes keeping your caravan and site clean and tidy and getting written permission from the park or caravan owner if you want to install something extra, like a fixed annex. If you own your caravan, you need to make sure it is safe to live in and kept in good repair.
If the park or caravan owner wants you to pay for cleaning, damage or anything else that wasn’t your fault, you can dispute this at VCAT.
Find out on this page what cleaning and damage claims the park or caravan owner can make, and what happens next if you agree, or don’t agree, to pay.
If you are affected by family or personal violence and the park or caravan owner wants you to pay for something caused by the perpetrator, see our page about family violence
The park or caravan owner says you are responsible for costs
The most common bond and compensation claims made by park and caravan owners are for:
- Cleaning
- Damage to the caravan or site, or to fixtures or structures on them
Another common claim is for costs or lost rent if you leave without giving proper notice under the law. For information on disputing this type of claim, see our page about ending or breaking your lease.
Find out what cleaning and damage claims the park or caravan owner can make and what happens next if you agree, or don’t agree, to pay.
The park and caravan owner should make sure your rented home is reasonably clean on the day you move in. You are then expected to keep it reasonably clean.
When you move out, you should leave the caravan and site in the same condition as when you moved in. You cannot be expected to leave them cleaner than when you moved in.
You are not responsible for fair wear and tear, like traffic marks on the caravan floor or on the site. If the park or caravan owner wants these cleaned, they have to pay for the cleaning work.
It is a good idea to take photos when you move in and when you move out, so you have evidence of the condition of the caravan and site. Also look at the condition reports from when you moved in and when you moved out. Find out more on our page about condition reports.
For more on cleanliness, including what ‘reasonably clean’ means, see our page on the Consumer Affairs Victoria guidelines. These are official guidelines that set out how renters and rental providers (such as park and caravan owners) must follow the rental laws.
Professional cleaning
If the park or caravan owner insists you use professional cleaners or get carpets steam cleaned, you don’t necessarily have to, even if your residency agreement says so.
You only have to arrange and pay for professional cleaning, or cleaning to a professional standard, if it is required to restore the caravan or site to the same condition as when you moved in, taking into account fair wear and tear.
If your residency agreement says anything else about professional cleaning, like having to get carpets steam cleaned, you can argue that this is not valid under the law. The law says you must leave the property reasonably clean, and you cannot be asked to do more than the law requires.
Amount claimed for cleaning
If you agree that you didn’t do all the cleaning you should have done, but think the park or caravan owner is claiming too much to get it done, get evidence to show this. For example, contact cleaning companies to see how their rates compare with what the park or caravan owner is claiming.
The park or caravan owner can only claim costs for damage if you or a visitor damage the park or caravan either intentionally or through negligence.
If damage is due to fair wear and tear from everyday use, it is not your responsibility. For example, if a cupboard door has become loose on its hinges due to daily opening and shutting, this may be considered fair wear and tear. If the park or caravan owner wants to replace anything that has worn out, they have to pay for it themselves.
You also don’t have to pay for damage caused before you moved in or after you moved out and returned the keys. You can use condition reports, photos and witness statements as evidence of what the caravan and site were like when you moved in and when you moved out.
For more on the difference between damage and fair wear and tear, see our page on the Consumer Affairs Victoria guidelines. These are official guidelines that set out how renters and rental providers (such as park and caravan owners) must follow the rental laws.
Amount claimed for damage
If you agree you caused damage but think the amount the park or caravan owner is claiming is too high, get evidence to show this. For example, if they want to repair or replace something, get your own quotes from shops or tradespeople to show that they are trying to claim too much.
The park or caravan owner’s claim must be in proportion to the damage caused. For example, they cannot claim the cost of replacing the entire kitchenette and cabinetry, if only one part of the bench has a burn mark from a hot saucepan being placed on it.
Their claim must also allow for ‘depreciation’, which means the older something gets, the less it is worth. The Australian Taxation Office (ATO) has a rental properties depreciation guide with information on depreciation over time, including a table of common household items. While this guide refers mainly to rental properties, the same principles apply to caravans and caravan parks, and VCAT uses the guide when looking at claims.
For example, new flooring installed in your caravan may be expected to have a life span of 10 years, meaning it declines in value by 10% every year. If it was installed 7 years ago and the caravan owner wants you to replace it, you would only be responsible for $300, which is the remaining 3 years of value left in the flooring. If the flooring is more than 10 years old, the value is zero.
For bond applications to VCAT, the most the park or caravan owner can claim is the amount of your bond.
If they want more than your bond, they can make a claim against your bond plus a compensation claim.
VCAT decides on rental compensation claims in caravan parks up to $20,000.
If the park or caravan owner makes a large claim, this page has information on where to get help.
You should not agree to pay just because the park or caravan owner is pressuring you.
If you agree that you are responsible for damage or cleaning costs, and you and the park or caravan owner agree on the amount, make sure you get it in writing.
The agreement should clearly say:
- What you have agreed to pay for – specifically, the extent of damage or cleaning you agree you are responsible for
- How much you have agreed to pay
- How it will be paid, such as through a joint bond claim to the Residential Tenancies Bond Authority (RTBA)
- That the park or caravan owner will not make any further claim against you for this issue in the future
You should also get a receipt for any payment you make to the park or caravan owner.
If you agree you are responsible for damage or cleaning costs but disagree on the scale of the damage or cleaning, or how much they want you to pay, the park or caravan owner will need to apply to VCAT. They will need to prove to VCAT that their claim is reasonable. You can go to the VCAT hearing and say why it is too much.
If you do not agree that you should pay cleaning or damage costs, or do not agree on the amount of the claim, the park or caravan owner will need to apply to VCAT and prove why they should get compensation or any part of your bond.
You can go to the VCAT hearing and dispute their claim. This page has more on disputing a claim at VCAT.
Here’s what you can do next
- See definitions and examples of cleanliness, damage and fair wear and tear on our page about the Consumer Affairs Victoria guidelines
- Get quotes to compare the amounts with what the park or caravan owner wants you to pay for damage or cleaning
- Read more on this page about disputing a claim at VCAT and start preparing
- If you need assistance, see the information on this page about getting help
The park or caravan owner applies to VCAT
If the park or caravan owner thinks you should pay for cleaning, damage or something else, and you disagree, they can apply to VCAT for compensation or your bond money.
If they apply to VCAT, they need to prove that:
- They have suffered financial loss or property damage
- The loss or damage happened because you breached your residency agreement or Victoria’s rental laws, the Residential Tenancies Act 1997
- The amount they are claiming is reasonable
For bond claims, they have 14 days from the time you move out to apply. However, if they apply after 14 days, they can ask VCAT at the hearing to allow the delay. You can ask VCAT at the hearing to not accept the reasons for the delay and to dismiss the application.
For compensation claims, they can apply before or after you move out. They have up to 6 years to do this after the loss or damage occurred. If they apply while you are still living at the property, they must give you a ‘notice of breach of duty’ first. Find out more on our page about renter breaches.
If the park or caravan owner applies to VCAT, they must give you a copy of the application. This must say how much they want and why they are claiming it.
They must also give you any evidence they are using to support their application. This may include proof that they spent the amount of money they are claiming for on something they say was your responsibility.
If you don’t get all their evidence with the application, ask for it in writing before the hearing. If they present evidence you haven’t seen at the hearing, you can ask VCAT to reschedule (adjourn) the hearing so you have time to look at the new evidence.
VCAT will let you know the time and place of the hearing, usually by email or text if they have an email address or mobile phone number for you.
If you don’t agree with the park or caravan owner’s claim, you should attend and tell your side of the story. VCAT can make a decision even if you are not there, and this might not get the best result for you.
If you cannot go to the hearing, you may be able to change the date or attend by phone or video. Call VCAT on 1300 018 228. Or use VCAT’s application form to change a hearing date.
Because applications to VCAT can be made after you have moved out, it is a good idea to give the park or caravan owner a forwarding address. Otherwise, you could find out about an application after the hearing. This page has more on what to do if a VCAT hearing happens without you.
Here’s what you can do next
- Check the park or caravan owner’s application and evidence carefully
- If you disagree, read more on this page about disputing their claim and start preparing for the hearing
- If you need assistance, see the information on this page about getting help
You can dispute the claim at VCAT
When there is a dispute between a caravan park resident and a park or caravan owner, VCAT can make the final decision. It is not a court but its decision has to be followed.
At the VCAT hearing, you can tell your side of the story. If you disagree with what the park or caravan owner is claiming, or you think the claim is for too much money, you can say why and give any evidence to support your reasons.
If the park or caravan owner is applying for compensation, VCAT will also consider the Consumer Affairs Victoria guidelines relating to maintenance, cleanliness, damage and fair wear and tear. These are official guidelines that set out how renters and rental providers (such as park and caravan owners) must follow the rental laws. Find out more on our page about the Consumer Affairs Victoria guidelines.
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. If you need assistance, this page has information on how to get help.
You can also watch our video about going to VCAT.
Get together any evidence that will help you dispute the park or caravan owner’s claim.
This may include:
- Condition reports from when you moved in and when you moved out
- Photos of the property at the time you moved in and, if you have moved out, at the time you left
- Receipts for any cleaning you may have done, or arranged to be done
- Your own quotes for cleaning, repairing or replacing items, if you want to show that the amount the park or caravan owner is asking for is unreasonable
- Any statements from witnesses that support what you are saying
- Any communication you have had with the park or caravan owner about the claim
VCAT has more tips on preparing your evidence.
Any evidence you want to show VCAT at the hearing will also need to be shown to the park or caravan owner. Make sure you have 3 copies of all the evidence – one for you, one for VCAT and one for the park or caravan owner.
Make sure your copies can be read clearly and are clearly labelled. Labelling makes it easy to refer to specific documents during your hearing and prevents confusion. This is especially important if your hearing is held online or by phone.
If your hearing is going to be online or by phone, contact VCAT beforehand on 1300 018 228 to discuss how you can provide your evidence. Or simply email your evidence to VCAT at renting@vcat.vic.gov.au and copy in the park or caravan owner. If the files are large, you may need to send more than one email. In any emails to VCAT, make sure you include the VCAT reference number (which VCAT will send you with the hearing details).
If you are concerned about sharing personal information relating to issues like trauma or your mental or physical health, you can raise this with VCAT and ask that the information be restricted under the Open Courts Act 2013. This usually means that your personal information will be anonymous and not made public. It will be up to VCAT to decide if this is appropriate.
To prepare for the hearing, make a few brief notes outlining what you want to say and get all your evidence together. Being organised is the key to presenting a good case.
Make sure you take to the hearing:
- The park or caravan owner’s application, including their evidence
- Your own evidence, and a copy each for VCAT and the park or caravan owner
- Your notes
For more information on getting ready, see our page about dealing with VCAT.
This example about a claim for damage to flooring shows how you can approach collecting evidence to dispute a claim.
The caravan owner’s claim
The caravan owner makes a claim for the full replacement cost of new flooring, curtains and upholstery throughout the caravan because there are small marks and dints in the flooring, which they say happened while you were living there. They say that if they have to replace the flooring, it won’t match the rest of the interior, so the curtains and upholstery also need to be replaced to match.
At the time you moved in:
- The caravan appeared to have the original flooring from when it was built 25 years ago
- The flooring showed clear signs of wear and was already marked and dinted
- The condition report when you moved in noted marks and dints on the flooring due to wear
- Photos you took show that the marks and dints were there before you moved in
At the time of the caravan owner’s application:
- The original floor had not been replaced or repaired, and the curtains and upholstery had not been changed
- You had moved out and the caravan had been hired out again at the same price
The caravan owner needs to prove to VCAT that:
- They have suffered financial loss or property damage
- The loss or damage happened because you breached your residency agreement or Victoria’s rental laws, the Residential Tenancies Act 1997
- The amount they are claiming is reasonable
Has the caravan owner suffered property damage?
Small marks and dints might be considered property damage, but VCAT may view them as minor or not enough to justify replacing the entire flooring. VCAT may also decide they are normal wear and tear.
Has the caravan owner suffered financial loss?
Even if there is property damage, you can argue that the caravan owner has not suffered financial loss because:
- The flooring has no financial value as its age means it has fully depreciated according to the ATO’s rental properties depreciation guide. Note that while VCAT uses this guide when looking at claims, it is a guide only, and more specific to rental properties
- They have not spent any money changing the flooring
- They have been able to rent the caravan out again for the same price
Is the amount reasonable?
You can also argue that the caravan owner’s claim is not reasonable because:
- Asking for the entire flooring, curtains and upholstery to be replaced throughout the caravan because of marks and dints on the floor is disproportionate to the damage caused. It is generally accepted that flooring does not need to match other décor
- There may be more cost-effective methods of dealing with the marks and dints than replacing the entire flooring
- The flooring was significantly aged and worn before you moved in, and likely needs to be replaced as part of the owner’s obligation to maintain the caravan in good repair, regardless of any marks or minor dints
Your evidence for VCAT
Your evidence to VCAT could include:
- Condition reports from when you moved in and when you moved out
- Photos of the caravan and site from when you moved in and when you moved out
- Quotes for cleaning or repairing the flooring
- Quotes for new flooring of a similar quality to the existing flooring to show that what the caravan owner is asking for is excessive and not reasonable
- Any communication you have had with the caravan owner about the damage
It will be up to VCAT to decide if you have to pay anything to the park or caravan owner. Even if VCAT decides that the damage was your fault, well-prepared evidence can help ensure you are not required to pay more than you should.
If the park or caravan owner delayed repairs or caused you loss or damage in some other way while you were living at the property, you may be able to make your own compensation claim to VCAT. This can assist with negotiations with the park or caravan owner.
If you do not reach an agreement with the park or caravan owner, VCAT should hear both claims at the same time and decide on an overall outcome.
Find out more on our page about claiming compensation.
Here’s what you can do next
- Collect your evidence and make copies for VCAT and the park or caravan owner
- Make notes about what you want to say at the hearing
- Consider if you could make a counter claim for compensation. If you decide to do this, make sure VCAT and the park or caravan owner get a copy of your compensation application – it could help resolve the dispute before the VCAT hearing
- If you need assistance, see the information on this page about getting help
What VCAT decides
VCAT usually makes a decision, called an order, on the day of the hearing. You get this verbally on the day and in writing either on the day or soon afterwards. If you don’t understand the order on the day, ask the person who heard the case and made the decision (called the VCAT Member) to explain it to you again.
For bond applications, VCAT makes an order about how the bond is to be paid out by the Residential Tenancies Bond Authority (RTBA). If VCAT decides the park or caravan owner 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 anyone getting a share of your bond, can use the VCAT order to claim the money from the RTBA. Find out more on our page about bonds.
For compensation applications, if VCAT makes an order that you have to pay compensation to the park or caravan owner, you will need to consider how you will pay it. You could try to negotiate a payment plan with the park or caravan owner after the hearing – make sure you get any agreement in writing.
If you are experiencing financial hardship or have any concerns about negotiating payment with the park or caravan owner, seek financial advice before entering into a payment plan. Find out about free financial counselling on our page on financial hardship.
If a hearing happens without you
If a VCAT hearing happens without your knowledge, and orders are made, you can apply to VCAT to reopen the order. You need to do this within 14 days of finding out about the order.
If the application was for your bond, and this has already been paid to the park or caravan owner, you can ask VCAT to make an order that the park or caravan owner repay you.
Here’s what you can do next
- Find out about free financial counselling on our page on financial hardship
- If you need legal advice, see the information on this page about getting help
Get help and other resources
If you need support in disputing bond and compensation claims, help is available.
Tenants Victoria services
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Renter Support Line
For all Victorian renters.
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Financial counselling
Other organisations
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Victoria Legal Aid
For all Victorians.
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Housing for the Aged Action Group (HAAG)
For Victorians aged 50 and older.
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Community Connection Program
For Victorians who are homeless or live in low-cost accommodation.
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Federation of Community Legal Centres
For all Victorians.
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Tenancy Assistance and Advocacy Program (TAAP)
For Victorian renters in private rentals, rooming houses and caravan parks who are in financial hardship or affected by family violence.
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Rental Dispute Resolution Victoria (RDRV)
For all Victorians.
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Victorian Civil and Administrative Tribunal (VCAT)
For all Victorians.
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Consumer Affairs Victoria
For all Victorians.
There are step-by-step guides and other resources to assist you with disputing bond and compensation claims.
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Step-by-step video on going to VCAT
This Tenants Victoria video walks you through the entire VCAT process – from gathering the necessary documents to understanding what happens during a hearing.
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Going to VCAT infographic
Tenants Victoria has a one-page infographic with tips on applying and preparing for VCAT and going to the hearing.
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How household fixtures and items decrease in value as they age
The Australian Taxation Office produces an annual guide to help you work out how much a fixture or other item in your rental property is worth.
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Guidelines on cleanliness, damage and fair wear and tear
Consumer Affairs Victoria has guidelines to make it easier for renters and rental providers (such as park and caravan owners) to follow the law. See our page about these guidelines.
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 park and caravan owners) in numbered sections.
The sections in this list relate to bond and compensation claims in caravan parks. Click on a link to see the section in the Act.
- Section 143 – Residency right
- Section 144 – Agreements
- Section 144AA – Prohibited terms – general
- Section 144AB – Prohibited terms – professional cleaning
- Section 148 – Condition report
- Section 148A – Caravan park owner, caravan owner or caravan park resident may apply to VCAT to amend inaccurate or incomplete condition report
- Section 149 – Condition report is evidence of state of repair
- Section 159 – Rent must be reduced if services are reduced
- Section 160 – Resident’s goods not to be taken for rent or hiring charges
- Section 167 – Resident’s use of site
- Section 171 – Resident must keep and leave site reasonably clean
- Section 171A – Resident must keep caravan in good repair
- Section 171B – Resident must not make site or caravan modifications without consent
- Section 173 – Resident must notify owner of and compensate for damage
- Section 174 – Number of persons residing on site
- Section 175 – Resident must observe caravan park rules
- Section 180 – Maintenance and repair of caravans
- Section 183 – Statement of scale of certain charges, fees and commissions
- Section 208 – Breach of duty notice
- Section 209 – Application for compensation or compliance order for a breach of duty notice
- Section 210 – Application for compensation order on other grounds
- Section 211A – Matters to be considered by VCAT in a compensation matter
- Section 211B – Director’s guidelines to be considered by VCAT in a compensation matter
- Section 419A – Applying to VCAT for bond repayment
- Section 447 – Limits of jurisdiction of VCAT
The Residential Tenancies Regulations 2021 provide more detail and definitions, and specify updates to the Residential Tenancies Act.
The Residential Tenancies (Caravan Parks and Movable Dwellings Registration and Standards) Regulations 2024 set out the requirements and standards of structures, facilities and services in caravan parks.
The Limitation of Actions Act 1958 also applies to bond and compensation claims in caravan parks: Section 5 – Contracts and torts.