How do I get my rental bond money back?

Navigating the end of a lease and knowing your renting rights can be confusing, especially when there are issues with getting your rental bond back. Moving house is difficult enough without these unwanted financial frustrations.

James Bennett, Policy and Liaison Officer with the Tenants Union of Victoria (TUV), answers the queries of hundreds of renters every year, keeping them informed about their legal tenancy rights.

We spoke to Bennett to find out exactly why renters don’t get their bond back, what renters are liable for and the best ways to ensure you get your bond back as soon as possible. For those of you renting outside of Victoria, we have provided links to your local tenants union, tribunal and state legislative body. 

Top reasons renters don’t get their bond back

1. Rent arrears ­­– this occurs when rent has not been paid by the due date.

2. Damage caused by the tenant – this refers to damage that is not the result of ‘fair wear and tear’.

3. Cleaning (or lack thereof) – at the start of a tenancy a premises would be ‘reasonably clean’ and at the end of the tenancy should be ‘reasonably clean subject to wear and tear’.

“Some tenants stop paying rent in the last few weeks of their tenancy because they figure the landlord ‘can just take it out of the bond’,” Bennett says. “The Tenants Union of Victoria advises strongly against this approach and it is potentially an offence under the Residential Tenancies Act in Victoria.”

Even if the landlord recovers the unpaid rent via the bond, you may risk being blacklisted on a tenancy database, which can make securing future rental accommodation difficult.

“In other circumstances there may be small amounts of rent arrears due to miscalculations or final vacate dates being out of cycle with the usual rent periods,” says Bennett. “Sometimes tenants and landlords will simply agree to take these smaller amounts out of the bond.”

What renters are and aren’t liable for

In principle, tenants are liable for whatever actions are necessary to bring the property to a state of being ‘reasonably clean, subject to wear and tear’. Where things get murky is that the law is not able to provide an exact definition of what constitutes ‘reasonably clean’ or ‘fair wear and tear’ pertaining to every potential situation. Factors such as the length of the tenancy will affect the level of wear and tear.

An issue that often comes up at the end of a lease is whether the tenant is required to pay for steam cleaning carpets. According to Bennett, in NSW, a requirement that carpets be professionally steam cleaned at the end of a lease cannot be included in a tenancy agreement unless you have agreed upon it as a condition of keeping a pet at the property. 

Outside of NSW, landlords and agents may include a professional carpet cleaning clause, which may need to be honoured, but the TUV believes these clauses aren’t necessarily enforceable in Victoria.

“If a tenant leaves the premises ‘reasonably clean’, and if carpets meet this standard by normal cleaning, then the TUV believes nothing further is legally required,” says Bennett. “The TUV has successfully argued these types of cases at the relevant tribunal. However, many tenants pay for professional cleaning where it is not technically required or enforceable.”

The following are not a renter’s responsibility:

• Unblocking sewerage pipes blocked by tree roots
• Mowing the lawn after you have moved out and returned the keys
• Replacing 10-year-old carpet
• Repainting after 10 years
• Removing asbestos. 

How can I protect my bond?

“It should always be remembered that the bond is the tenant’s money and the default outcome should be that it is refunded in full to the tenant, unless it can be demonstrated that deductions should be made,” says Bennett. “It is not simply up to the real estate agent or landlord to arbitrarily take money from a tenant’s bond.”

Bennett is very clear that protecting your bond should not require any special behaviour. A rental property is still your home and if you go about living in the premises in an ordinary fashion, there should be no reason you don’t receive your bond back.

Across Australia, bonds are lodged with a local authority (for example, the Consumer and Business Services in South Australia or Fair Trading in NSW) and the lodgement form must be signed by the tenant and the real estate agent or landlord. The money is held by this third party for the duration of the tenancy in case there is unpaid rent or damage to the property by the tenant.

At the beginning of a lease, you review and sign a condition report, which outlines the condition of the property when you moved in. It is important you fill this out carefully as the condition report provides conclusive evidence about the state of the property that can be used to defend your interests in the event a bond claim is made.

“Make sure you note any issues or damage on both copies of the condition report, then return one copy to the landlord and keep the other copy in a safe place. It is also a good idea to take photos for your records,” says Bennett. The completed condition report must be signed and returned within a certain number of business days from the occupancy date. For example, in Victoria it is three days and in NSW it is seven. 

What steps do I take to get my bond back?

There are three scenarios when you end a lease: 

1. Your landlord makes no claim against your bond

In the event no claim is made, an application is submitted requesting the money be returned to you. Both parties (landlord and tenant) sign the Bond Claim Form, you nominate a bank account on the form and the money should be paid the next business day after lodgment.

Never sign a Bond Claim Form that does specify the amount, warns Bennett. “It is actually an offence in Victoria for an agent to try and get you to sign an incomplete form. If the bond is to be paid in full, make sure the full amount is recorded in the ‘Tenant payment details’ section and make sure you keep a copy,” says Bennett.

2. You agree with your landlord on an amount to be deducted from your bond

If there is a mutual agreement that some or all of your bond is to be paid to the landlord then both parties need to fill out the Bond Claim Form stating how much is to be paid to the landlord and how much to you. The appropriate amounts need to be specified in the tenant payment section and the landlord payment section. Check these amounts add up to the total bond amount.

3. You disagree with your landlord

If the landlord and tenant disagree about how much of the bond should be returned, either can make an application to the relevant tribunal, as described below.

How to handle a bond dispute

The processes vary between the states and territories but your bond cannot be claimed against your wishes without the landlord or agent proving their case to the relevant tribunal.

If you believe all or part of your bond should be returned to you, you can make an application directly to your local tribunal. Attach a copy of your bond receipt to the application. There is no fee for making a request for your bond to be returned.

If your landlord wants all or part of your bond and you disagree, they must make an application to the relevant tribunal.

“In Victoria, they must apply to the Victorian Civil and Administrative Tribunal for an order that they be paid the bond within 10 business days of your tenancy ending,” says Bennett. “If they do make an application, make sure the landlord or agent has a forwarding address for you, otherwise any notice about a hearing may be served at the rental property where you used to live. If you want to defend your landlord’s claim on your bond money, you must go to the hearing.”

In the event your bond dispute goes to tribunal, have the following information on hand:

• The date that you started the tenancy and the type of tenancy (fixed or periodic). If possible, take along a copy of the lease agreement.
• A receipt showing the amount of bond paid.
• The amount of notice given to end the tenancy, either by you or the landlord.
• Evidence about the condition of the property at the start of the tenancy. A copy of the condition report would be helpful.

For your local legislative body, tenants union or tribunal, head to our Essential rental resources and services guide.