Disputing bond and compensation claims

The landlord (officially called the rental provider) 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 (officially called the rental provider) 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.

Your landlord (officially called the rental provider) 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, landlords can claim up to $40,000 in a single bond and compensation application.

It is important to remember that a large claim does not mean your landlord 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 $30,000 but cannot provide proper evidence of their losses, VCAT could reject their claim entirely or reduce it to a much smaller amount.

Some landlords make large or exaggerated claims in an attempt to get renters to settle. If your landlord 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 landlord makes a large claim, this page has information on where to get help.

You should not agree to pay just because the landlord (officially called the rental provider) 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 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 landlord (officially called the rental provider) 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 your landlord (officially called the rental provider) 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 your landlord 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 landlord 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 your landlord 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 your landlord 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 you have experienced family or personal violence and the landlord applied to RDRV because of something caused by the perpetrator, let the resolution coordinator know as soon as possible. They should refer the application directly to VCAT for a formal hearing.

Generally, the RDRV process of facilitated 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 what your landlord (officially called the rental provider) is claiming.

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

The resolution coordinator will let you know if you need to provide further documents or evidence at Rental Dispute Resolution Victoria (RDRV). Your landlord 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 carpet shows how you can approach collecting evidence for Rental Dispute Resolution Victoria (RDRV) or a formal VCAT hearing.

The landlord’s claim

Your landlord (officially called the rental provider) 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 to RDRV:

• 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 show to 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 it may also be seen as minor or not enough to justify replacing all the carpet in the house. It could also fall under 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 Australian Taxation Office’s (ATO’s) depreciation guide for rental properties
• 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 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 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 not reasonable
• Any communication you have had with the landlord or their agent about the damage

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 your landlord (officially called the rental provider) 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 your landlord a copy of your application and any supporting evidence.

Making a counter claim can give you leverage in negotiations and help encourage the landlord 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 landlord 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 your landlord (officially called the rental provider), 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. Depending on the situation, you and your landlord may speak directly to each other, or the resolution coordinator may pass claims, offers and options back and forth between you.

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 your landlord 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 your landlord 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 landlord (officially called the rental provider) 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.

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.

If you and your landlord (officially called the rental provider) 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 landlord 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 landlord 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 landlord 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.

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.

At the hearing, your landlord (officially called the rental provider) 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 lease (officially called a rental 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 your landlord 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 lease
• Whether the landlord consented to, or contributed to, any failure to meet your duties
• What the landlord did to minimise their losses or stop things from getting worse. For example, if you reported damage but the landlord did nothing to prevent further loss
• What you did to fix things. For example, repainting a marked wall or patching a damaged plaster wall. Even if the work is not perfect, VCAT can consider these efforts when deciding if the amount claimed by the landlord is reasonable
• Whether you have already given the landlord money or any other form of compensation to resolve the issue
• Whether the landlord refused any fair offers from you to resolve the issue
• The Consumer Affairs Victoria guidelines on maintenance, cleanliness, damage and fair wear and tear. These are official guidelines that set out how renters and landlords must follow the rental laws. See our page on the Consumer Affairs Victoria guidelines

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. For more information on getting ready, see our page about going to VCAT.

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

For compensation claims, the landlord 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 must give you a ‘notice of breach of duty’ first. Find out more on our page about renter breaches.

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, you can 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). Find out more about the RTBA on our page about bonds.

For compensation applications, if VCAT makes an order that you have to pay compensation to the landlord (officially called the rental provider), you will need to consider how you will pay it. You could try to negotiate a payment plan with the landlord after the hearing – make sure you get any agreement in writing.

If you are experiencing financial hardship, 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 it has already been paid to the landlord (officially called the rental provider), 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 landlord 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 landlord or their agent 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 landlords (officially called rental providers), real estate agents and renters, usually for a fee.

When you apply for a rental property, landlords 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 landlords 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 landlord’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 your landlord 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 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.