Need to Know Information for Rental Bonds In VIC

Step 1 – Know Your Rights

In Victoria, when you rent a place to live, you will usually be asked to pay a rental bond.

The rules around bonds are set out in the Residential Tenancy Act 1997, the bond is held in trust by the RTBA (Residential Tenancies Bond Authority)

General requirements of rental provider/lessor

The law does not state within what timeframe in which the bond must be paid, generally, rental providers will ask for the bond prior to a renter moving into a premises
Bonds are held by the RTBA so that renters and rental providers have equal say in how the bond will be repaid at the end of a rental agreement.
The bond must be lodged within 10 business days of your rental provider/lessor receiving the bond.

How much is the rental bond?

It is an offence for a rental provider/lessor (landlord, managing agent, or similar) to charge more than the maximum bond set out in the Residential Tenancy Act 1997.
For General Tenancies
- If your rent is $900 or less, the maximum bond is equal to 4 weeks’ rent.
  - Example: My weekly rent is $500. My maximum bond is $2000.
- If your rent is more than $900, there is no maximum bond. However, we suggest you negotiate with your agent to a maximum of 4 weeks’ rent. VCAT may also set a higher bond for the property.
For Rooming Accommodation
- For a fixed-term agreement
  - The maximum bond is equal to 28 days’ rent.
- For a non-fixed-term agreement
  - The maximum bond is equal to 14 days’ rent.

Does my rental provider keep my bond?

No, the rental provider/lessor must lodge the bond with the RBTA.
Renters cannot lodge bonds themselves.
The rental provider/lessor must complete and sign a bond lodgment form
- They MUST give you a copy
- You should ASK for a receipt

Save your receipt!

TOP TIP: Save your rental receipt in your Rent Rabbit

Will I receive notification from the RBTA about my bond lodgment?

Yes, the RBTA will send you a notification of your bond within 7 days.
The bond receipt will usually be sent via email.
If you do not receive notice from the RBTA please contact them on 1300 37 164. Have your tenancy agreement ready. Look up your bond here.

Save your bond lodgment and receipt!

TOP TIP: Save your RBTA receipt in your Rent Rabbit

Can my bond be increased?

In long term rental agreements, a bond top-up can be requested when:
- A renter has lived in the property for 5 consecutive years
- There is a long-term fixed agreement in place for another 5 years or more.
You must receive 120 days’ written notice prior to the increase.
They must use the Notice requestion additional bond form.
Renter modifications
- Rental providers may ask for additional bond if the renter makes modifications to the property, this is to recover the costs of reversing the change at the end of the agreement.
  - For more information, please click here

Bond refunds and release of the bond

When you move out if you do not leave the premises clean, have caused damage, or are behind in rent, your rental provider/lessor may be entitled to claim monies from your bond.
You do not have to agree with your lessor/rental provider on the refund.
You are within your rights to start the claim of your bond (you do not need to wait for your rental provider/lessor). However, it is usual for the rental provider to start the claim.
- A renter’s guide to starting your claim can be found here.
If there is a bond dispute, either party can apply to VCAT
Bond refunds are usually made on the same business day in the following cases:
- The claim is made online to the RBTA by the rental provider, and the renter confirms the claim (you will receive this via email), or;
- After a paper bond is received.
If a renter makes a claim themselves, bond refunds can take up to 20 business days. This allows time for the rental provider to claim/contest the claim.