Disputing bond and compensation claims

The landlord or their agent must make sure your rented property 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 landlord or agent cannot ask you to leave the property cleaner than when you moved in.

You are not responsible for fair wear and tear, like traffic marks on the carpet. If the landlord 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 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 landlords must follow the rental laws.

Professional cleaning

If the landlord or agent 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 landlord or their agent 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 landlord 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 landlord is claiming.

The landlord can only claim costs for damage if you or a visitor damage the property 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 the carpet has become worn over time by people walking on it, this is fair wear and tear. If the landlord 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 property was 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 landlords must follow the rental laws.

Amount claimed for damage

If you agree you caused damage but think the amount the landlord 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 landlord’s claim must be in proportion to the damage caused. For example, they cannot claim for the cost of repainting the entire house if paintwork is damaged in just one room.

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. 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 landlord 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.

For bond applications to VCAT, the most the landlord 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 landlord compensation claims up to $40,000.

If the landlord makes a large claim, this page has information on where to get help.

You should not agree to pay just because the landlord or their agent is pressuring you.

If you agree that you are responsible for damage or cleaning costs, and you and the landlord 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 landlord 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 landlord.

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 landlord 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 landlord 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.

If your landlord or their agent 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 includes 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 if they have an email address for you.

If you don’t agree with the landlord’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 landlord or their agent 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 the landlord’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 landlord is asking for is unreasonable
• Any statements from witnesses that support what you are saying
• Any communication you have had with the landlord or their agent 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 landlord or their agent. Make sure you have 3 copies of all the evidence – one for you, one for VCAT and one for the landlord or their agent. 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 the landlord or their agent. 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 landlord’s application, including their evidence
• Your own evidence, and a copy each for VCAT and the landlord
• 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 landlord’s claim

Your landlord makes a claim for the full replacement cost of new, high-quality carpet throughout the house because there is a small stain on the carpet in one of the rooms, caused while you were living there. They say that if they have to replace the carpet in that room, it won’t match the carpet in the rest of the house, so the entire house 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 house
• The condition report when you moved in noted stains and marks on the carpet due to wear
• Photos you and the agent took show that the stains and marks were there before you moved in

At the time of the landlord’s application:

• The original carpet was still in the property – nothing had been replaced
• You had moved out and the property had been rented out again at the same price

The landlord needs to prove to VCAT that:

• They have 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 they are claiming is reasonable

Has the landlord 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 landlord suffered financial loss?

Even if there is property damage, you can argue that the landlord 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
• They have not spent any money changing the carpet
• They have been able to rent the property out again for the same price

Is the amount reasonable?

You can also argue that the landlord’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 landlord 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 landlord’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 the landlord is asking for is excessive and not reasonable
• Any communication you have had with the landlord or their agent about the damage

It will be up to VCAT to decide if you have to pay anything to the landlord. 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 landlord or their agent 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 landlord.

If you do not reach an agreement with the landlord, 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 landlords in numbered sections.

The sections in this list relate to bond and compensation claims in private rentals. 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 63 – Renter must keep and leave property reasonably clean
• 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 Limitation of Actions Act 1958 also applies to bond and compensation claims in private rentals: Section 5 – Contracts and torts.