At the end of the tenancy, if the landlord and tenant agree as to the amount of bond owing, they may jointly apply to the Residential Tenancies Bond Authority (RTBA) on a Bond Claim form. This form allows the landlord and tenant to specify how much of the bond should be paid to each party. If part of the bond is to be paid to the landlord, the tenant must not have signed the form more than seven days before the tenancy agreement ended (s.412).
Once the RTBA receives the signed Bond Claim form it will usually pay the bond into the tenant's nominated bank account by the next working day.
Tenants should never sign a blank Bond Claim form.
If the Director of Housing paid the bond, the landlord and tenant can only apply together if the full amount is to be refunded to the Director. If some of the bond is to be paid to the landlord, the landlord must obtain a VCAT order.
If the landlord wants to retain some, or all of the bond but the tenant disagrees with the amount owed, the landlord must make a claim against the bond within 10 business days of the tenant vacating the premises (s.417).
If 10 days has passed, the landlord may still make a compensation claim against the tenant, however it cannot rely on the security of the bond to ensure payment of any claim that they establish.
If the landlord makes an application out of time, the tenant should point this out to the VCAT. However, the tenant should also be prepared for the possibility that the VCAT may grant the landlord an extension of time under section 126 of the VCAT Act and allow them to argue their case.
The sorts of things the landlord may claim against a bond are:
- rent arrears;
- damage to the premises or common areas;
- loss of goods belonging to the landlord;
- failure to keep the premises in a reasonably clean condition;
- loss caused by the abandonment of the premises by the tenant; and
- any charges payable by the tenant for which the landlord may be liable (ss.418 & 419).
Where the landlord’s application is for loss or damage other than rent arrears, the landlord must attach a copy of the Condition Report to the application (Order 6.25(13) VCAT Rules).
The tenant is not liable for any damage that can be described as fair wear and tear, but only if they failed to take reasonable care to avoid damaging the property.
The landlord also has a duty to mitigate loss or damage. The landlord may make an application for compensation over and above the amount of the bond.
The VCAT may hear applications for bond and compensation at the same time.
If the landlord has neither applied to the VCAT nor agreed to the payment of the bond to the tenant within 10 business days, the tenant should apply to the VCAT for an order that the RTBA pay the bond to the tenant.
If the tenant has paid bond and the landlord or real estate agent has not lodged the bond with the RTBA and is refusing to return all or part of the bond to the tenant at the end of the tenancy, the tenant may make an application to VCAT. An application should be made under section 452 of the RTA. The landlord’s failure to lodge the bond should be reported to Consumer Affairs Victoria for investigation/prosecution (see: "Advice and contacts", below for details).
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RECOVERING BOND MONEY :: Last updated: Thu Jul 1st 2010