Disputing bond and compensation claims

The rooming house operator must make sure your room 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 room in the same condition as when you moved in. The rooming house operator cannot ask you to leave the room cleaner than when you moved in.

You are not responsible for fair wear and tear, like traffic marks on the carpet. If the rooming house operator 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 room. 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 rooming house operators) must follow the rental laws.

Professional cleaning

If the rooming house operator insists you use professional cleaners or get the carpet steam cleaned, you don’t necessarily have to, even if your rooming house agreement says so.

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

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

If your rooming house agreement says anything else about professional cleaning, like having to get the carpet steam cleaned, you can argue that this is not valid under the law. The law says you must leave the room reasonably clean, and you cannot be asked to do more than the law requires. Read more about what can be included in a rooming house agreement on our page about moving into a rooming house.

Amount claimed for cleaning

If you agree that you didn’t do all the cleaning you should have done, but think the rooming house operator 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 rooming house operator is claiming.

The rooming house operator can only claim costs for damage if you or your visitor damage your room or another part of the rooming house 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 in your room has become worn over time by people walking on it, this is fair wear and tear. If the rooming house operator 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.

Make sure you report any breakdowns or damage, including damage caused by you or someone visiting you, to the rooming house operator.

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 rooming house operators) must follow the rental laws.

Amount claimed for damage

If you agree you caused damage but think the amount the rooming house operator 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 rooming house operator’s claim must be in proportion to the damage caused. For example, if they want to claim the cost of repainting your entire room after repairing a small hole you made in the wall, you could argue that their claim is unnecessary and unreasonable.

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 carpet was installed in your room 7 years ago at a cost of $1000, and the rooming house operator 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.

The rooming house operator 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, rental providers (like rooming house operators) 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 rooming house operator 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 rooming house operators make large or exaggerated claims in an attempt to get residents to settle. If the rooming house operator is being unreasonable and you cannot reach an agreement at RDRV, it is okay to let the dispute go to a formal VCAT hearing for an independent decision on what is fair.

If the rooming house operator makes a large claim, seek legal advice. This page has information on where to get help.

You should not agree to pay just because the rooming house operator is pressuring you.

If you agree that you are responsible for damage or cleaning costs, and you and the rooming house operator 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 rooming house operator 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 rooming house operator.

If you agree you are responsible for damage or cleaning costs but disagree on the scale of the damage or cleaning, or on how much they want you to pay, the rooming house operator 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, do not pay anything to the rooming house operator. They 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 are living in a rooming house operated by a community housing provider, the provider may have appeals and complaints policies (rules) that apply to your situation.

If the rooming house operator 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 rooming house operator 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 rooming house operator 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 rooming house operator 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 rooming house operator 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 rooming house operator 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 may 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 rooming house operator’s claim.

This may include:

• Condition reports from when you moved in and when you moved out
• Photos of your room 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 rooming house operator is asking for is unreasonable
• Any statements from witnesses that support what you are saying
• Any communication you have had with the rooming house operator about their claim

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

The rooming house operator’s claim

The rooming house operator makes a claim for the full replacement cost of new, high-quality carpet throughout the rooming house because there is a small stain on the carpet in your room, caused while you were living there. They say that if they have to replace the carpet in your 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 rooming house 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 rooming house
• The condition report when you moved in noted stains and marks on the carpet in your room due to wear
• Photos you and the rooming house operator took show that the stains and marks were there before you moved in

At the time of the rooming house operator’s application to RDRV:

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

The rooming house operator needs to show that:

• They have suffered financial loss or property damage
• The loss or damage happened because you breached your rooming house agreement or Victoria’s rental laws, the Residential Tenancies Act 1997
• The amount they are claiming is reasonable

Has the rooming house operator 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 rooming house. It could also fall under normal wear and tear, especially if it is a worn patch rather than a stain.

Has the rooming house operator suffered financial loss?

Even if there is property damage, you can argue that the rooming house operator 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) rental properties depreciation guide
• They have not spent any money changing the carpet
• They have been able to rent the room out again for the same price

Is the amount reasonable?

You can also argue that the rooming house operator’s claim is not reasonable because:

• Asking for the carpet to be replaced throughout the entire property because of a small stain in your 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 rooming house operator 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 rooming house operator’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 room 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 rooming house operator is asking for is excessive and not reasonable
• Any communication you have had with the rooming house operator 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 the rooming house operator 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 rooming house operator a copy of your application and any supporting evidence.

Making a counter claim can give you leverage in negotiations and help encourage the rooming house operator 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 rooming house operator 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 rooming house operator, 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 rooming house operator 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 rooming house operator 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 rooming house operator 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 rooming house operator 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 rooming house operator 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 rooming house operator 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 rooming house operator 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 rooming house operator 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 rooming house operator 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 rooming house 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 rooming house operator 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 rooming house agreement
• Whether the rooming house operator consented to, or contributed to, any failure to meet your duties
• What the rooming house operator did to minimise their losses or stop things from getting worse. For example, if you reported damage but the rooming house operator 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 rooming house operator is reasonable
• Whether you have already given the rooming house operator money or any other form of compensation to resolve the issue
• Whether the rooming house operator 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 (like rooming house operators) must follow the rental laws. See our page on the Consumer Affairs Victoria guidelines

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

For compensation claims, the rooming house operator 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 rooming house, they should give you a ‘notice of breach of duty’ first. Find out more about duties and breaches on our page about rooming houses.

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 in writing either on the day or soon afterwards. If you don’t understand the order on the day, you can 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). 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 rooming house operator, you will need to consider how you will pay it. You could try to negotiate a payment plan with the rooming house operator 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 rooming house operator, 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 rooming house operator 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 rooming house operator 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 (like rooming house operators), 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 rooming house operator’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 rooming house operator 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 rental providers (like rooming house operators) in numbered sections.

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

• Section 94A – Harsh and unconscionable terms
• Section 94AB – Additional terms for fixed term rooming house agreements
• Section 94AC – Invalid terms
• Section 94AD – Prohibited terms – general
• Section 94AE – Prescribed terms – professional cleaning
• Section 110 – Resident’s use of room
• Section 111 – Resident must not use room for illegal purposes
• Section 112 – Resident’s duty to pay rent
• Section 113 – Quiet enjoyment – resident’s duty
• Section 114 – Resident must keep and leave room reasonably clean
• Section 114A – Resident must not interfere with prescribed safety device
• Section 115 – Resident must not make modifications without consent
• Section 116 – Resident must notify rooming house operator of and compensate for damage
• Section 117 – Resident must not keep pet without consent
• Section 118 – Resident must give key to rooming house operator
• Section 120 – Rooming house operator must keep room and house in good repair
• Section 120A – Rooming house operator must comply with rooming house standards
• Section 120AA – Rooming house operator’s liability for excessive usage caused by faults
• Section 121 – Rooming house operator must provide access
• Section 122 – Quiet enjoyment – rooming house operator’s duty
• Section 123 – Security
• Section 124 – Provision and display of statement of rights and house rules
• Section 125 – Rooming house operator to give additional information
• Section 127 – Duties relating to house rules
• Section 140 – Resident has duty to permit entry
• Section 142ZG – Failure of resident to comply with VCAT order
• Section 142ZH – Successive breaches by resident
• 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 (Rooming House Standards) Regulations 2023 set out the privacy, safety, security and amenity standards in rooming houses.

The Limitation of Actions Act 1958 also applies to bond and compensation claims in rooming houses: Section 5 – Contracts and torts.