Disputing bond and compensation claims

The community housing provider must 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 property in the same condition as when you moved in. The community housing provider cannot ask you to leave it cleaner than when you moved in.

You are not responsible for fair wear and tear, like traffic marks on the carpet. If the community housing provider wants these removed, it has 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 property. Also look at the condition report from when you moved in and when you moved out. Find out more on this website 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 (like community housing providers) must follow the rental laws.

Professional cleaning

If the community housing provider insists you use professional cleaners or get the carpets steam cleaned, you don’t necessarily have to, even if your lease (officially called a rental agreement) says so.

Some leases dated after 29 March 2021 include a term about professional cleaning, or cleaning to a professional standard. This only applies if:

• The property was professionally cleaned, or cleaned to a professional standard, immediately before you moved in, and the community housing provider told you this had been done, or
• Professional cleaning, or cleaning to a professional standard, is needed to restore the property to the same condition as when you moved in, taking into account fair wear and tear

If your lease says anything else about professional cleaning, like having to get the 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. Find out more about what can be included in leases on our page about rental agreements (leases).

Amount claimed for cleaning

If you agree that you didn’t do all the cleaning you should have done, but think the community housing provider is claiming too much to get it done professionally, get evidence to show this. For example, contact cleaning companies to see how their rates compare with what the community housing provider is claiming.

Your community housing provider can only claim costs for damage if you or a visitor damaged your home either intentionally or through negligence. The community housing provider should give you the opportunity to explain how the damage happened. If needed, you can back up your explanation with statements from support workers, medical practitioners, witnesses, the police and others.

If damage is due to fair wear and tear from everyday use, it is not your responsibility. For example, if the carpet has become worn over time by people walking on it, this is fair wear and tear. If the community housing provider wants to replace anything that has worn out, it has to cover the cost.

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 statements from witnesses as evidence of what the property was like when you moved in and when you moved out. As a precaution, you could ask someone you know to check the property when you move in and again when you move out, in case you need a witness statement

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 (like community housing providers) must follow the rental laws.

Amount claimed for damage

If you agree you caused damage but think the amount the community housing provider is claiming is too high, get evidence to show this. For example, if the claim is to repair or replace something, get your own quotes from shops or tradespeople to show that the claim is for too much.

The community housing provider’s claim must be in proportion to the damage caused. For example, it cannot claim for the cost of repainting the entire house if paintwork is damaged in just one room.

The 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. VCAT uses this guide when looking at claims.

For example, carpets installed before 1 July 2019 have a life span of 10 years, meaning they decline in value by 10% every year. If your loungeroom carpet was installed 7 years ago at a cost of $1000, and the community housing provider wants you to replace it, you would only be responsible for $300, which is the remaining 3 years of value left in the carpet. If the carpet is more than 10 years old, the value is zero.

In some situations, you may be exempt from a community housing provider claim. Exemptions can be based on Victoria’s rental laws or on the community housing provider’s own policies (rules).

The law will reject your community housing provider’s damage claim if:

• The damage is considered fair wear and tear. For more about fair wear and tear, see our page on the Consumer Affairs Victoria guidelines
• Previous repairs completed by the community housing provider did not meet the required standards
• The damage was caused by someone else’s criminal actions, and it was beyond your control to stop it happening
• The damage was caused by natural disasters, such as storms or floods
• The property is vacant and it is not clear who is responsible for the damage

The community housing provider will also consider your individual and household’s circumstances when assessing whether to make a claim. Some circumstances may reduce the amount you are asked to pay or may mean a claim is not made at all. These circumstances include:

• Family violence – for example, you had to leave the property at short notice because of family violence and were unable to clean before you left or to take all of your belongings
• Disability or health conditions – for example, you have a physical disability that made it difficult for you to scrub the bathroom, or your wheelchair damaged the floor
• Mental health conditions – for example, you had an acute psychotic episode during which you damaged the property
• Children with a disability such as difficulty with mobility or emotional regulation

Your community housing provider may meet with you to develop a plan to minimise the risk of damage or uncleanliness happening again.

Each community housing provider has its own policies on bond and compensation claims. We recommend you check your community housing provider’s website for its policies or ask for a copy to be sent to you. If you are not satisfied with your community housing provider’s decision, you can make an appeal or a complaint.

For bond applications to VCAT, the most your community housing provider can claim is the amount of your bond.

If your community housing provider wants more than your bond, it can make a claim against your bond plus a compensation claim.

VCAT decides on rental compensation claims up to $40,000.

If your community housing provider makes a large claim, this page has information on where to get help.

You do not need to agree to pay just because the community housing provider wants you to.

If you accept that you are responsible for damage or cleaning costs and agree on the amount with your community housing provider, make sure you get the agreement 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 community housing provider will not make any further claim against you for this issue in the future

You have 2 payment options:

• Pay the amount in full, or
• Enter into a payment agreement to pay the amount off in weekly or fortnightly instalments that you can afford

You should get a receipt for any payment you make to the community housing provider.

If you are experiencing financial hardship, seek financial advice before entering into any payment agreement. Find out about free financial counselling on our page on financial hardship.

If you do not agree you are responsible for any of the claim, or do not agree on the amount of the claim, the community housing provider will need to apply to VCAT and prove why you should pay it. You can go to the VCAT hearing and dispute the claim. This page has more on disputing a claim at VCAT.

VCAT makes decisions based on Victoria’s rental laws. It doesn’t take into account your community housing provider’s internal policies (rules), including those about exemptions due to personal circumstances.

Because of this, you may want to request an ‘internal appeal’ or make a complaint against your community housing provider. Community housing providers are required as part of their registration to have processes for internal appeals and complaints. To find out how to appeal against a decision or make a complaint, check your community housing provider’s policies.

Generally, if you request an internal appeal, your community housing provider should not apply to VCAT until after it has made a decision about your request.

If you need legal advice or are having difficulty getting your community housing provider’s policies, see the information on this page about how to get help.

If your community housing provider applies to VCAT, it must give you a copy of the application. This must say how much it wants and why it is claiming it.

The community housing provider must also give you any evidence it is using to support its application. This includes proof that it spent the amount of money it is claiming for on something it says was your responsibility.

If the community housing provider doesn’t give you all the evidence with the application, ask for it in writing before the hearing. If it presents 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 if they have an email address for you.

If you don’t agree with the community housing provider’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 your community housing provider 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.

Get together any evidence that will help you dispute your community housing provider’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 community housing provider is asking for is unreasonable
• Any statements from witnesses that support what you are saying
• Any communication you have had with the community housing provider 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 your community housing provider. Make sure you have 3 copies of all the evidence – one for you, one for VCAT and one for the community housing provider. Make sure everything can be read clearly.

If the 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 your community housing provider. 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 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:

• Your community housing provider’s application, including the evidence provided
• Your own evidence, and a copy each for VCAT and the community housing provider
• Your notes

For more information on getting ready, see our page about dealing with VCAT.

This example about a claim for damage to a carpet shows how you can approach collecting evidence to dispute a claim.

The community housing provider’s claim

After you move out, your community housing provider makes a claim for the full replacement cost of new, high-quality carpet throughout the property because there is a small stain on the carpet in one of the rooms, caused while you were living there. It says that if the carpet is replaced in that room, it won’t match the carpet in the other rooms, so the entire place needs to be re-carpeted.

At the time you moved in:

• The property had the original carpet from when it was built 20 years ago
• The carpet did not appear to be of high quality as it showed signs of wear in high-traffic areas and was worn through in some places
• There were several small pre-existing stains on the carpet throughout the property
• The condition report when you moved in noted stains and marks on the carpet due to wear
• Photos you and the community housing provider took show that the stains and marks were there before you moved in

Your community housing provider needs to prove to VCAT that:

• It has suffered financial loss or property damage
• The loss or damage happened because you breached your lease (officially called a rental agreement) or Victoria’s rental laws, the Residential Tenancies Act 1997
• The amount it is claiming is reasonable

Has the community housing provider suffered property damage?

A small stain might be considered property damage, but VCAT may view it as minor or not enough to justify replacing the carpet. VCAT may also decide it is normal wear and tear, especially if it is a worn patch rather than a stain.

Has the community housing provider suffered financial loss?

Even if there is property damage, you can argue that the community housing provider has not suffered financial loss because:

• The carpet has no financial value as its age means it has fully depreciated according to the ATO’s rental properties depreciation guide
• It has not spent any money changing the carpet

Is the amount reasonable?

You can also argue that the community housing provider’s claim is not reasonable because:

• Asking for the carpet to be replaced throughout the entire property because of a small stain in one room is not in proportion to the damage caused
• There are methods other than replacing the carpet that could deal with the stain, such as cleaning or repairing the existing carpet, which cost less
• The replacement quality of the carpet the community housing provider is claiming for is not reasonable compared to the lower-quality carpet that is there now
• The carpet was old, stained and worn before you moved in, and should be replaced as part of the community housing provider’s duty to maintain the property in good repair, regardless of any stain caused while you were living there

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 property from when you moved in and when you moved out
• Quotes for cleaning or repairing the carpet
• Quotes for new carpet of a similar quality to the existing carpet to show that what your community housing provider is asking for is excessive and not reasonable
• Any communication you have had with the community housing provider about the damage

VCAT will also consider:

• Any efforts you made to repair the damage at your own expense, and any compensation you have already offered, or given, to the community housing provider
• Whether the community housing provider did anything to contribute to the damage, or to it worsening, such as not arranging repairs when you reported the damage
• 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

It will be up to VCAT to decide if you have to pay anything to your community housing provider. Even if VCAT decides that the damage was your fault and you have to pay, well-prepared evidence can help reduce the amount to a cost that is reasonable.

If the community housing provider 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 community housing provider.

If you do not reach an agreement with the community housing provider, VCAT should hear both claims at the same time and decide on an overall outcome.

Find out more on our page about claiming compensation.

If you need support in disputing bond and compensation claims, 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 (like community housing providers) in numbered sections.

The sections in this list relate to bond and compensation claims in community housing. Click on a link to see more about the section.

• Section 27C – Professional cleaning
• Section 61 – Renter and visitor must not damage premises or common areas
• Section 62 – Renter must notify of damage
• Section 63 – Renter must keep and leave property reasonably clean
• Section 64 – Modifications to rented premises
• Section 72AA – Renter must report damage or breakdown of facilities
• Section 78 – Rental provider may give repair notice
• Section 79 – Rental provider may do repairs and renter liable for costs
• Section 208 – Breach of duty notice
• Section 209 – Application for compensation or compliance order for a breach of duty
• 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 – Application to VCAT for bond
• 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 Limitation of Actions Act 1958 also applies to bond and compensation claims in community housing: Section 5 – Contracts and torts.