Disputing bond and compensation claims

Homes Victoria can only claim costs for damage if you or a visitor damage your home or common areas either intentionally or through negligence.

If damage is due to fair wear and tear from normal 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 Homes Victoria 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 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 rental providers (like Homes Victoria) must follow the rental laws.

Amount claimed for damage

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

Homes Victoria’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.

Homes Victoria’s 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 Homes Victoria 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.

Homes Victoria 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. Homes Victoria 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 Homes Victoria wants these removed, it has to pay for the cleaning work.

If Homes Victoria assesses that a ‘heavy clean’ is needed before the next person moves in, it may make a maintenance claim against you. A heavy clean means scrubbing to remove heavy build ups of grime, stains, grease, dirt, marks and dust from floors (including carpets), surfaces and fittings.

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.

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 Homes Victoria) must follow the rental laws.

Professional cleaning

If Homes Victoria 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 Homes Victoria 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 Homes Victoria 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 to what Homes Victoria is claiming.

Homes Victoria cannot make a maintenance claim against you if:

• The repairs are considered fair wear and tear. For more about fair wear and tear, see our page on the Consumer Affairs Victoria guidelines
• 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
• Previous repairs completed by Homes Victoria 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 the result of police intervention at the property
• 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

Homes Victoria will also consider your individual and household’s circumstances. Some circumstances may reduce the amount you are asked to pay or may mean a maintenance 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 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

In these circumstances, Homes Victoria may meet with you to develop a plan to minimise the risk of damage or uncleanliness happening again.

If you report that repairs are needed or there is damage to your home, Homes Victoria will visit to inspect the property. It is important that you let Homes Victoria know about repairs or damage as soon as possible, especially if not fixing the issue could make it worse.

Homes Victoria may also identify damage or other maintenance issues during a routine inspection or when inspecting the property after you have moved out.

Homes Victoria will discuss the damage or other maintenance issues with you and you can explain how they happened. If needed, you can back up your explanation with statements from support workers, medical practitioners, witnesses, the police and others.

If Homes Victoria decides you are responsible for the damage or maintenance issues, and exemptions do not apply, it may send you a:

• Notice of repairs
• Notice of cost of repairs
• Notice of breach of duty

Notice of repairs

Homes Victoria will send a notice of repairs to you by regular mail (and if possible by email). This notice says:

• What damage was caused intentionally or negligently
• That if you don’t arrange for the repairs to be done within 14 days, Homes Victoria will arrange for them to be done
• That you may be liable for the reasonable cost of the repairs

If you disagree that you caused the damage, it may be best to allow the repairs to be done and wait for Homes Victoria to apply to VCAT.

You can also talk to Homes Victoria to see if you can reach an agreement that is acceptable to you.

If you cannot reach an agreement and Homes Victoria applies to VCAT, you will be able to tell your side of the story at the hearing. VCAT will decide if, and how much, you need to pay. If you go to VCAT, help is available. See more on this page about disputing a claim at VCAT.

If you have moved out, you will receive a ‘notice of repairs letter’ instead of a notice of repairs. The letter will say what damage Homes Victoria believes you are responsible for and will ask for your response.

Notice of cost of repairs

Homes Victoria will send a notice of cost of repairs to you by registered post (and if possible, by email). This is sent regardless of whether you are living at the property or have moved out. The notice says:

• When the repairs were done and how much they cost
• That Homes Victoria will be arranging a negotiation meeting with you
• If you don’t want to negotiate, Homes Victoria may apply to VCAT for an order requiring you to pay for the repairs

Homes Victoria will attach to this notice:

• Photos of any damage
• A copy of the exit condition report, if you have moved out
• A copy of the notice of repair sent to you, or the notice of repair letter if you have moved out
• An ‘acceptance of liability form’ for your consideration

Do not sign the acceptance of liability form if you do not think you are responsible for the damage, if you believe the amount of the claim is unreasonable, or if you think an exemption applies. Find out more on this page about exemptions to Homes Victoria maintenance claims.

Notice of breach of duty

Instead of sending you a notice of repairs or a notice of cost or repairs, Homes Victoria may send you a notice of breach of duty if you are still living at the property and have breached your duties relating to cleanliness and damage. This includes:

• Causing damage
• Not keeping the property reasonably clean
• Installing a fixture without permission from Homes Victoria – where permission is required

If you receive this notice, see our page on renter breaches.

After sending you a notice, Homes Victoria will contact you to arrange a negotiation meeting. This may be face-to-face or by phone. The meeting is to discuss whether you accept responsibility for the damage, and the next steps if you do accept responsibility, or if you don’t.

You can get someone to speak on your behalf at the negotiation meeting. See the information on this page about getting help.

At the meeting, you should check that Homes Victoria has taken into account the age and condition of the damaged item and applied depreciation to the costs it is claiming.

Homes Victoria also has policies that outline exemptions to maintenance claims. You can discuss your individual and household’s circumstances at the meeting if you think there should be an exemption. Find out more on this page about exemptions to Homes Victoria maintenance claims.

If you accept that you are responsible for damage or cleaning costs and agree on the amount with Homes Victoria, 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
• That Homes Victoria 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 maintenance payment agreement to pay the amount off in weekly or fortnightly instalments

If you are experiencing financial hardship, we recommend you pay the amount off in instalments that you can afford. The minimum amount payable under a payment agreement is $5 a week or $10 a fortnight.

You should get a receipt for any payment you make to Homes Victoria.

You do not need to agree to pay just because Homes Victoria wants you to.

If you agree you are responsible for some of the damage or cleaning, but not all of it, you can try to negotiate a smaller amount to pay.

If you do not agree you are responsible for any of the damage or cleaning, Homes Victoria must review its decision to make a claim against you.

After it has reviewed its decision, you will receive a letter saying whether or not the claim has been changed. If it has not been changed, Homes Victoria will continue to negotiate with you.

If you still don’t agree you are responsible for any of the claim, or you don’t agree on the amount of the claim, Homes Victoria 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 Homes Victoria policies, including those about exemptions due to personal circumstances.

Because of this, you may want to request an ‘internal appeal’ against Homes Victoria’s decision. The HousingVic website has information on how to appeal a decision. If you lodge an appeal, Homes Victoria cannot apply to VCAT until the appeal process has finished. If Homes Victoria has already applied to VCAT, you can ask VCAT to reschedule (adjourn) the hearing until the appeal has been decided. See VCAT’s adjournment application.

The Victorian Ombudsman can also help resolve complaints about repairs and maintenance in public housing. If you are not happy with Homes Victoria’s decision, you can make a complaint to the Victorian Ombudsman.

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

Homes Victoria 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 that it says was your responsibility.

If Homes Victoria doesn’t give you all the evidence with the application, ask for it in writing before the hearing. If Homes Victoria 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 Homes Victoria’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 Homes Victoria 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 Homes Victoria’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 Homes Victoria is asking for is unreasonable
• Any statements from witnesses that support what you are saying
• Any communication you have had with Homes Victoria 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 Homes Victoria. Make sure you have 3 copies of all the evidence – one for you, one for VCAT and one for Homes Victoria. 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 Homes Victoria. 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:

• Homes Victoria’s application, including the evidence provided
• Your own evidence, and a copy each for VCAT and Homes Victoria
• 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.

Homes Victoria’s claim

Homes Victoria 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 Homes Victoria took show that the stains and marks were there before you moved in

Homes Victoria 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 Homes Victoria 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 Homes Victoria suffered financial loss?

Even if there is property damage, you can argue that Homes Victoria 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 Homes Victoria’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 Homes Victoria 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 Homes Victoria’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 Homes Victoria is asking for is excessive and not reasonable
• Any communication you have had with Homes Victoria about the damage

VCAT will consider any efforts you made to repair the damage at your own expense, and any compensation you have already offered, or given, to Homes Victoria. It will also look at whether Homes Victoria did anything to contribute to the damage, or to it worsening, such as not arranging repairs when you reported the damage.

It will be up to VCAT to decide if you have to pay anything to Homes Victoria. 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 Homes Victoria 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 Homes Victoria.

If you do not reach an agreement with Homes Victoria, 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 Homes Victoria) in numbered sections.

The sections in this list relate to maintenance and compensation claims in public 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 maintenance and compensation claims in public housing: Section 5 – Contracts and torts.

Homes Victoria policies

Homes Victoria also has policies (rules) that set out its obligations to assess issues and communicate respectfully with you to try to resolve them. It must follow these policies.

These Homes Victoria manuals contain staff guidelines for dealing with maintenance and compensation claims:

• Business practice manual – includes policies and procedures for dealing with housing appeals and managing claims
• Maintenance manual – includes policies and procedures for dealing with property damage
• Tenancy management manual – includes policies and procedures for dealing with condition reports, tenancy breaches, vacated tenant accounts, bankruptcy, and tenancy terminations and deceased estates

If you wish to make a complaint about Homes Victoria, see our page about public housing.