A bond (security deposit) is an amount of money (usually one month's rent) paid by you at the start of the tenancy. It is designed to act as security for any damage to the property, or unpaid rent.

When you pay your bond, you and the landlord or agent must sign a Bond Lodgment Form. If part (not all) of the bond is paid by the Office of Housing, you will have to sign a separate Bond Lodgment Form for that part of the bond which was paid by the Office of Housing.

The landlord or agent must then pay your bond to the Residential Tenancies Bond Authority within 5 days of you paying it to them. You should receive notification from the Authority that the landlord or agent has lodged your bond. If you do not receive notification within 14 days, you should contact the Authority.

The landlord or agent must give you a Condition Report detailing the condition of the premises at the start of the tenancy. See the Starting a tenancy leaflet for more information.

If you assign or transfer your interest under the tenancy agreement (eg you move out of the property and someone else takes over your tenancy) you must notify the Authority within 5 days that your interest in the bond has been transferred to the new tenant. You can do this by filling in a Bond Transfer Form (which must be signed by you, the new tenant, and the landlord or agent) and sending it to the Authority.

The bond is held by the Authority until the end of the tenancy. At the end of the tenancy, one of three things can happen: your landlord makes no claim against your bond; you agree with your landlord about an amount to be paid to them out of your bond; or your landlord applies to the Victorian Civil and Administrative Tribunal for an order they be paid some or all of your bond.

Your landlord makes no claim
If your landlord agrees that they will not make a claim against your bond, you and your landlord must apply to the Authority to have your bond returned to you. You must both sign a Bond Claim Form giving details of the bank account into which the bond is to be paid. Once the form is lodged with the Authority, your bond will usually be paid into the nominated bank account by the next working day.

If your bond was paid by the Office of Housing under the bond loan scheme, the money will automatically be paid back to the Office of Housing.

You agree to pay some or all of the bond to your landlord
If you agree that your landlord is entitled to some or all of your bond, you can agree to have that amount paid out to them. You and the landlord or agent must fill out the Bond Claim Form, specifying how much is to be paid to the landlord and how much to you. You should not sign the Bond Claim Form unless all of the details have been completed. If you sign an incomplete form, the landlord or agent could fill out details which differ to the amount that you agreed.

You cannot agree to paying out your bond or part of your bond more than 7 days before the end of your tenancy. If the agreement with the landlord or agent was made more than a week before your tenancy ended, the Authority will not accept it.

If your bond was paid by the Office of Housing under the bond loan scheme, you cannot agree to have part of it paid out to the landlord. The landlord or agent must apply to the Tribunal for an order that they be paid part of the bond. The Office of Housing will be a party to the application.

Your landlord applies to keep your bond
If you and your landlord or agent do not agree about who is to be paid what out of the bond, they must apply to the Tribunal for an order that they be paid part or all of the bond.

The landlord must make the application within 14 days of the tenancy ending. If they have not made a claim within 14 days, they are not entitled to do so and you should apply to the Tribunal for an order that the Authority pay you the full amount of your bond. The landlord can still make a claim for compensation, but they will not have access to the bond as security for the payment of any successful claim. However, keep in mind that the Tribunal can grant the landlord leave to apply even if they are out of time. You should make your own application for the return of the bond as soon as possible after the 14 days has elapsed. (You can apply as soon as you move out, but the Tribunal may not hear your claim until after the 14 days have elapsed.)

If the landlord or agent does make the application within 14 days, you will be sent a copy of the application and a Notice of Hearing from the Tribunal.

Tribunal hearings
Whether it is you or your landlord who applies to the Tribunal, you should take the following information to the hearing

• the date you started the tenancy and the type of tenancy (fixed term or month to month)
• the amount of bond paid
• the Condition Report (if you have one)
• the amount of notice given to end the tenancy, by either you or the landlord
• evidence about the condition of the premises at the start of the tenancy
  

If you are claiming your bond back because the landlord has not made a claim within 14 days, you should resist any attempt by the landlord to argue their claim against your bond. Point out to the Tribunal that the landlord is out of time and that they should bring their compensation claim separately. However, be prepared for the possibility that the Tribunal might allow the landlord to argue their case even though they are out of time.

If the Tribunal makes an order about your bond, you will still have to complete a Bond Claim Form to get the amount of your bond owed to you from the Authority. When more than one tenant is owed bond (eg in a shared household), you and the other tenants will have to agree as to how the bond is to be paid out. For example, you could agree that a smaller proportion of the bond be paid to one tenant if that tenant takes responsibility for damage that the landlord has successfully claimed for.

For more information on defending a landlord's claim against your bond, see the Defending a compensation claim leaflet.

Abandoned premises
If you leave the property without giving the landlord notice and without giving a forwarding address, and you owe the landlord rent, they can apply to the Principal Registrar of the Tribunal for an order that they be paid some or all of your bond. They must give written evidence that you owe them rent and that they have tried to find out where you now live. If the Principal Registrar is convinced you have abandoned the premises, that you cannot be found, and that you owe the landlord rent, they can make an order that the landlord be paid your bond without having to go to a hearing.

If the Principal Registrar has made an order that the landlord is entitled to some or all of your bond in these circumstances, you must act quickly if you wish to challenge the order. You should contact the Tenants Union or a tenant advice service for further assistance.
For more information, contact the Tenants Union on % (03) 9416 2577.