The Law Handbook 2024

Chapter 6.1: Tenancy 473 A rental provider or agent is not entitled to ask for or receive from a renter under a proposed rental agreement a charge in relation to the inspection of the premises (s 51(2) RT Act). It is generally accepted that a request for a renter to provide a deposit to ensure the return of keys used for the purpose of inspection does not breach this provision. Rent cards and direct debit facilities A rental provider or agent is not entitled to charge the renter for the first issue of a rent payment card, or the establishment or use of direct-debit facilities (s 51(3) RT Act). This means that a renter cannot be charged for using a direct debit facilities. Renters are entitled to have access to at least one free method of paying rent (s 42(2)). Rental providers are required to permit renters to pay via electronic funds transfer or Centrepay (this is not applicable to public housing (s 42(5), reg 19)). An agreement that compels a renter into a contract with a third-party payment provider may be unlawful (s 27B, reg 11(e)). Even where a new real estate agency has taken over the management of a property, a rental provider or agent cannot unilaterally change the terms of a rental agreement to require the renter to use a particular method of payment without consent or an order from VCAT. Assignment fees While a rental provider must not demand or receive a fee for consenting to an assignment, the RT Act does not prevent a rental provider from requiring the renter to bear any expenses reasonably incurred by the rental provider because of the assignment of a rental agreement (s 84(3) RT Act). This is usually called an ‘assignment fee’. Usually, an assignment is done using the tenant transfer form available from the RTBA (see ‘Contacts’ at the end of this chapter). Therefore, it is arguable that there is little or no preparation of a written assignment of a rental agreement. Parties seeking to challenge unreasonable fees in connection with an assignment may apply to VCAT to be compensated (s 84(2) RT Act). As a rough and non-legal estimate, assignments should not exceed $110 (GST inclusive) if there is evidence of other work done by an agent to facilitate the assignment. Bonds Overview A renter is only required to pay a bond if this is required by the agreement between the parties. All bonds must be lodged with the RTBA by the rental provider (s 406 RT Act). Once lodged, a bond can only be released with the renter’s consent, or by order from VCAT. Rental providers and agents cannot deduct money from bonds without the renter’s agreement. A person must not demand or accept a bond that is greater than the amount of one month’s rent when the weekly rent does not exceed $900 (s 31 RT Act; reg 17). The rental provider may apply to VCAT for an order to increase the amount of bond that may be charged (ss 32, 33). There is no restriction on the amount of bond where the rent exceeds $900 per week. A person must not demand or accept more than one bond for the continuous occupation of a premises (s 34). However, if rent exceeds $900 per week, and a renter and rental provider enter a new rental agreement for the same premises, then an additional bond may be sought by the rental provider (s 34). The rental agreement should set out the date by which the payment of the bond is required. Renters who are occupying a premises, but who have not paid the bond in accordance with the agreement, may be given a 14-day Notice to Vacate (s 91ZN RT Act) (see ‘14-day Notice to Vacate’, below). At the time the bond is paid, the rental provider must complete and sign a bond lodgment form (s 405 RT Act). The form must state if the Office of Housing has paid the bond on behalf of the renter. The rental provider must give the renter a copy of the signed form for the renter to sign (s 405). Failure to do so is an offence. Once the renter has signed the form, the rental provider must give them a copy (s 405). Failure to do so is an offence. Renters should never sign a blank bond lodgement form or bond claim form , as this allows unscrupulous rental providers to provide false or misleading information to the RTBA. The rental provider then has 10 business days to lodge the bond and the completed form with the RTBA. Failure to do so is an offence (s 406 RT Act). The RTBA has seven days after it receives the bond to give a receipt to the rental provider, renter and Office of Housing (if applicable) (s 407 RT Act).