Disputing bond and compensation claims

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.

The park or caravan owner can apply to Rental Dispute Resolution Victoria (RDRV) to claim some or all of your bond. If they want more than your bond amount, they can make a claim for your bond plus compensation.

Under Victoria’s rental laws, park and caravan owners can claim up to $20,000 in a single bond and compensation application.

It is important to remember that a large claim does not mean the park or caravan owner will succeed. If you do not reach an agreement at RDRV, they must prove their losses at a formal VCAT hearing. For example, if they claim $20,000 but cannot provide proper evidence of their losses, VCAT could reject their claim entirely or reduce it to a much smaller amount.

Some park and caravan owners make large or exaggerated claims in an attempt to get residents to settle. If the park or caravan owners is being unreasonable and you cannot reach an agreement at RDRV, it is okay to let the dispute go to a formal VCAT hearing so that an independent decision can be made on what is fair.

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 have agreed 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 Rental Dispute Resolution Victoria (RDRV) to resolve the dispute. Find out more on this page about next steps if you do not agree you are responsible for costs.

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 Rental Dispute Resolution Victoria (RDRV) to resolve the dispute. Find out more on this page about next steps if you do not agree you are responsible for costs.

If the park or caravan owner applies 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 park or caravan owner 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.

If the park or caravan owner wants your bond after you applied to get it back from the RTBA

If you apply to the Residential Tenancies Bond Authority (RTBA) to get your bond back, and the park or caravan owner applies to RDRV for part or all of your bond within 14 days of your RTBA application, the RTBA will hold your bond until you and the park or caravan owner reach an agreement at RDRV, or VCAT makes an order about how the bond should be paid. Find out more on our page about bonds.

If you have experienced family or personal violence

If the park or caravan owner applies to RDRV for compensation and you have experienced family or personal violence during your stay, tell the resolution coordinator as soon as possible. They should refer the application directly to VCAT for a formal hearing.

Generally, the RDRV process of discussion or mediation is not considered appropriate in circumstances of family or personal violence.

Family violence is committed by a relative, partner or former partner, or someone who is like family. Personal violence is committed by someone who is not family. Violence may also include financial, emotional and other types of coercive control.

If the matter goes to VCAT, the VCAT family violence team can support you. Find out more on the VCAT website about family violence support.

There is also more information on our page about family violence.

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

The resolution coordinator will let you know if you need to provide further documents or evidence at Rental Dispute Resolution Victoria (RDRV). The park or caravan owner may also ask you to provide evidence during an RDRV session, and you can ask them to do the same.

For more on providing documents and evidence at RDRV, see our page about going to RDRV (Rental Dispute Resolution Victoria).

This example about a claim for damage to flooring shows how you can approach collecting evidence for Rental Dispute Resolution Victoria (RDRV) or a formal VCAT hearing.

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 to RDRV:

• 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 show 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 they may also be seen as minor or not enough to justify replacing the entire flooring. They could also fall under 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 Australian Taxation Office’s (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 RDRV or VCAT

Your evidence for RDRV or 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

Even if VCAT decides that the damage was your fault and you have to pay, well-prepared evidence can help ensure you are not required to pay more than you should.

If the park or caravan owner applies to Rental Dispute Resolution Victoria (RDRV) for compensation or your bond, you can also apply to RDRV with your own compensation claim. Make sure you give the park or caravan owner a copy of your application and any supporting evidence.

Making a counter claim can give you leverage in negotiations and help encourage the park or caravan owner to reach an agreement.

If you don’t reach an agreement through RDRV, VCAT will be able to hear both claims together and make one decision. This may involve VCAT ‘offsetting’ the claims. For example, if the park or caravan owner owes you $800 but you caused $1200 in damage, only $400 may be taken from your bond.

Find out more on our page about claiming compensation.

After the resolution coordinator has spoken separately with you and the park or caravan owner, they may organise a facilitated discussion through Rental Dispute Resolution Victoria (RDRV), where you can both try to negotiate an agreement.

The facilitated discussion usually takes place by phone, videoconference or email. The resolution coordinator may bring you and the park or caravan owner together to talk, or they may act as a go-between, passing on claims, offers and options so you don’t need to speak to each other directly.

If the resolution coordinator believes a more structured, face-to-face meeting might be the best option to resolve the dispute, they may invite you both to a formal mediation session.

Because the resolution coordinator cannot give legal advice, it is important that you understand your legal rights before going into a discussion or mediation session at RDRV. You can also organise for a lawyer or advocate to represent you. Find out more on this page about getting help.

For more on what happens at RDRV and tips for participating in dispute resolution, see our page about going to RDRV (Rental Dispute Resolution Victoria).

If you reach an agreement at RDRV

If you and the park or caravan owner reach an agreement at RDRV, you should put it in writing to make sure everyone follows through on their commitments.

You can ask for your written agreement to be formalised in a VCAT consent order, which is a legal document issued by VCAT to confirm an agreement between parties. Or you can write a private settlement agreement, which is a contract between yourselves.

If the written agreement or VCAT consent order says how your bond is to be paid out, it 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 agreement at RDRV. If you and the park or caravan owner cannot resolve all the issues through RDRV, or if either party 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.

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 and compensation claims are usually held within 4 weeks of the park or caravan owner applying to Rental Dispute Resolution Victoria (RDRV).

If you don’t go to the hearing, VCAT can still make a decision about the claim. 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.

Request to change the hearing date

If you cannot attend the hearing, you may be able to change the date. Call VCAT on 1300 018 228 or use VCAT’s application form to change a hearing date.

Request to attend the hearing by phone or video

If the hearing is going to be in person but you would prefer to attend by phone or video, you can request this using VCAT’s:

• Telephone attendance request form – for requesting a phone hearing
• Application to use technology – for requesting either a phone or video hearing

You will need to provide reasons for your request. Make sure you submit the request form several days before the hearing date, otherwise VCAT may reject your request.

If you and the park or caravan owner tried to resolve the dispute at Rental Dispute Resolution Victoria (RDRV) before going to VCAT, anything that was said or done at RDRV cannot be used as evidence at VCAT unless everyone agrees in writing. For example, if you admit during an RDRV discussion that you caused a problem, or if the park or caravan owner admits that a charge is too high, these statements cannot be used as evidence at VCAT.

Anything said or done during an RDRV session can be used as evidence at the VCAT hearing if all parties agree to this in writing.

If you submitted documents, photos or videos as part of your evidence for RDRV, you will not need to submit these again to VCAT. However, you may need to provide further documents or evidence for the hearing.

Before the hearing, the park or caravan owner must make sure you have a copy of any documents or evidence they will be using. If they present evidence at the hearing that you have not seen, you can ask VCAT to reschedule (adjourn) the hearing so you have time to look at the new evidence.

You should also make sure the park or caravan owner and VCAT have a copy of any documents or evidence you will be using at the hearing. In some situations, the resolution coordinator may provide basic support to ensure your documents are ready for the hearing.

See more on this page about the types of documents and evidence you might use to dispute a bond or compensation claim. You can also see our example of evidence for disputing a damage claim. The VCAT website has more tips on preparing evidence.

To prepare for the hearing, get all your evidence together and make a few brief notes outlining what you want to say. Being organised is the key to presenting a good case. For more information on getting ready, see our page about going to VCAT.

Protecting your personal information

In some circumstances, it may be necessary to share personal information relating to issues like trauma, family violence or your mental or physical health, or that of another household member. If this applies to you, 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.

If you have any concerns about providing personal information to VCAT after going through RDRV, raise them with the resolution coordinator.

At the hearing, the park or caravan owner must prove to VCAT why they should get compensation or any part of your bond. They must show 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

You can tell VCAT 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.

VCAT may consider:

• Whether you took all reasonable steps to meet your duties under Victoria’s rental laws and your residency agreement
• Whether the park or caravan owner consented to, or contributed to, any failure to meet your duties
• What the park or caravan owner did to minimise their losses or stop things from getting worse. For example, if you reported damage but the park or caravan owner did nothing to prevent further loss
• What you did to fix things. For example, repainting a marked wall or patching a damaged wall. Even if the work is not perfect, VCAT can consider these efforts when deciding if the amount claimed by the park or caravan owner is reasonable
• Whether you have already given the park or caravan owner money or any other form of compensation to resolve the issue
• Whether the park or caravan owner refused any fair offers from you to resolve the issue
• Whether the damage was caused by an accident or actions that could not be reasonably prevented – for example, you (or a member of your household) have a disability or mental health condition or are experiencing family violence
• The Consumer Affairs Victoria guidelines on 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. See our page on the Consumer Affairs Victoria guidelines

For bond claims, the park or caravan owner must have applied to Rental Dispute Resolution Victoria (RDRV) no later than 14 days after your residency agreement ended. If they applied  any later, you can ask VCAT to dismiss their application. However, the park or caravan owner can also ask VCAT to allow the delay, and VCAT may grant them the extension.

For compensation claims, the park or caravan owner can apply to RDRV 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 should give you a ‘notice of breach of duty’ first. Find out more about duties and breaches on our page about caravan parks.

VCAT usually makes a decision, called an order, on the day of the hearing. At VCAT the person who hears and decides the case is called a member. The member will give the order 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 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 counselling before entering into any repayment plan. Find out about free financial counselling on our page on financial hardship.

If a VCAT hearing happens without your knowledge, and orders are made, you can apply to VCAT to reopen the order. You generally 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 hear the matter again. If VCAT allows the matter to be reopened, and decides you are entitled to all or part of your bond, it can order the park or caravan owner to repay you.

Because applications to Rental Dispute Resolution Victoria (RDRV) and VCAT can be made after you have moved out, it is a good idea to give the park or caravan owner your forwarding address or contact information. Otherwise, you could find out about a bond or compensation claim after it has gone to VCAT.

Tenant databases, sometimes referred to as ‘blacklists’, are run by private companies that collect information about renters and make it available to rental providers (such as park and caravan owners), real estate agents and renters, usually for a fee.

When you apply for a rental property, rental providers and agents are not allowed to ask about your bond history or past legal disputes. But they may check tenant databases to see if you have been ‘blacklisted’ as a renter by previous rental providers or agents.

There are strict rules about when you can be listed on a tenant database, and when you must be removed from the database.

You cannot be listed on a tenant database just for challenging a park or caravan owner’s bond or compensation claim at Rental Dispute Resolution Victoria (RDRV) or VCAT.

You can only be listed if VCAT makes a compensation order against you for more than your bond.

If you reach an agreement with the park or caravan owner at RDRV about bond or compensation money, you should ask them to include a term that says they will not list you on a tenant database.

Find out more on our page about tenant databases or ‘blacklists’.

If you need support disputing a bond and compensation claim, help is available.

There are step-by-step guides and other resources to assist you with disputing bond and compensation claims.

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.