Guide
Duties, breaches & compliance orders
A guide on renter obligations under the law and risks if they don’t comply with them.
Bond and compensation
Understanding bond
A bond is money renters pay at the start of a rental agreement. It is held in case there is damage, unpaid rent, or other issues when they move out. The bond is held by the Residential Tenancies Bond Authority (RTBA).
Renters should only pay the bond after:
- signing the rental agreement, and
- receiving a completed and signed condition report.
They should inspect the property, take lots of photos, and record any issues on the condition report. This helps protect them if the rental provider later claims their bond. Generally, a statement in a condition report is taken as conclusive evidence of the state of the property, so it is important that any damage or faults are noted.
Generally, the bond amount must not be more than 4 weeks rent. Renters can either pay the bond:
- to rental provider/agent, who must lodge the bond with the RTBA within 10 business days, or
- to the RTBA directly.
Your client should always check and confirm the bond lodgement details before signing.
Getting bond back
Renters can claim the bond once they move out and return the keys.
To claim:
- Go to the RTBA website and look up the bond.
- Submit a bond claim form.
The rental provider can also start a bond claim.
The RTBA will pay the bond back to your client if all parties on the rental agreement (i.e your client, the rental provider and any co-renters) agree.
If all parties agree that some bond should go to the rental provider, they can make a joint bond claim which tells the RTBA how the bond will be divided.
What if the rental provider disputes the claim?
The renter can claim the bond without agreement from the rental provider and vice versa. When this happens, the RTBA must write to everyone on the rental agreement telling them that a claim has been made.
If a renter makes a bond claim and the rental provider disagrees:
- The rental provider must apply to Rental Dispute Resolution Victoria (RDRV) within 14 days of the rental agreement ending.
- If the rental provider does NOT apply within 14 days, the RTBA pays the bond according to the renter’s claim.
The same rules apply if the rental provider makes a bond claim and the renter disagrees. The renter must apply to RDRV or VCAT within 14 days.
If a rental provider submits a bond application to RDRV or VCAT more than 14 days after the rental agreement ended, the renter can ask VCAT to dismiss the application.
It is important that your client tells the RTBA they have applied to RDRV or VCAT within 14 days. If they do not, the RTBA will release the bond money to the rental provider. Either party can go directly to VCAT, but VCAT will redirect the matter to RDRV.
Compensation claimed by a rental provider
After the rental agreement ends, the rental provider can apply to the RDRV for compensation for unpaid rent, damage or other loss. If the rental provider wants more than the bond amount, they must apply for bond plus compensation.
Different rules apply if the rental provider wants compensation while the tenancy is ongoing. See Duties, breaches & compliance orders page for more info.
At RDRV, the renter can negotiate with the rental provider, present their evidence, and give their version of events.
Your client can choose to skip RDRV and go straight to VCAT. You need to tell the RDRV coordinator if you want this to happen.
If no agreement is reached, the matter can go to VCAT.
At a VCAT hearing, the rental provider must prove they have suffered loss/damage and that the renter (or their visitor) caused it. VCAT can make orders for compensation. This tells your client how much (if any) they need to pay the rental provider.
Common bond & compensation claims
Rental providers often claim for:
- unpaid rent
- cleaning costs if the renter has not left the property in the same condition as when they moved in.
- costs of repairs for damage (eg carpet stains, holes in walls)
- costs of removal of goods left behind
If your client is in public housing, see Public Housing debts for more information.
Defending bond or compensation claims
Step 1. Assess the Rental provider’s Claim
You can support your client to look at the strengths and weaknesses of the rental provider’s claim. This includes reviewing the RDRV/VCAT application and the rental provider’s evidence (such as photos, invoices, receipts).
The questions below may help your client to prepare.
- Is the rental provider claiming unreasonable cleaning costs?
- Is the rental provider claiming for fair wear and tear?
- Did the renter (or visitor) actually cause the damage?
- Is the rental provider claiming excessive amounts?
Is the rental provider claiming unreasonable cleaning costs?
The rental provider can only require the property be returned in a reasonably clean condition.
Is the rental provider claiming for fair wear and tear?
- Fair wear and tear is not damage.
- Common examples of fair wear and tear include minor wall scuff marks or traffic marks on carpet.
- The age, quality, and durability of the property and items also matters. The older the property, the more ‘normal’ the wear and tear.
- Consumer Affairs Victoria have helpful guidelines about assessing fair wear and tear.
Did the renter (or visitor) actually cause the damage?
- For instance, the rental provider can’t ask that your client pay for water damage caused by a faulty pipe.
- Sometimes, the renter has caused some of the damage, but not all if it. The faulty pipe may have caused 70% of the water damage, and the other 30% was caused by the renter breaking the bathtub basin. The renter should only pay 30% of the costs.
Is the rental provider claiming excessive amounts?
- The rental provider’s compensation claims must be reasonable.
- They cannot ask a renter to pay for repainting the entire house if the renter only caused a few chips of paint from installing wall hooks.
- Depreciation must also be considered. If an item is so old that it has fully depreciated and has no value, the rental provider hasn’t suffered financial loss. VCAT will consider the ATO Rental Properties Guide when assessing depreciation.
Step 2. Your Client’s Evidence
You can help your client gather evidence to defend themselves. Even if VCAT decides the renter caused some damage, evidence can help reduce the amount owed to something reasonable.
Evidence may include:
- Entry and exit condition reports
- Photos taken by your client
- receipts for cleaning
- Alternative repairs / cleaning quotes
- These are useful your client thinks amount the rental provider is asking them to pay is excessive
- correspondence about repairs
- it might be useful to show your client raised concerns with the rental provider
- witness statements supporting your client’s version of events
Family Violence
Family violence can be relevant to bond and compensation issues. Family violence matters are complex and need to go to VCAT rather than RDRV.
If an RDRV application already exists, the renter should inform RDRV about the family violence immediately so it can be referred to VCAT.
- See Damage or unpaid rent when there is violence for further guidance.
Where can my client get more help?
Legal services
The following services might be able to provide advice and assistance if your client needs help with a bond or compensation claim:
Anika Legal: Anika Legal offers free advice and assistance to renters specifically with bond and compensation claims.
Justice Connect Homeless Law: Homeless Law offers advice and representation if your client is at risk of homelessness.
Tenants Victoria: Tenants Victoria offers 30-min secondary consultations for workers. You can book a call through their website. They also specialise in bond and compensation matters.
Financial help
If your client cannot afford to pay a bond upfront, they may be eligible for a RentAssist bond loan. This is an interest-free loan available to low-income renters to help cover the cost of a bond.
Read more on the Housing Victoria website.
The content on the Workers’ Resource Hub is legal information for general guidance and not legal advice. The content on this webpage was last updated in May 2026. See full disclaimer and copyright notice.
