The Law Handbook 2024

474 Section 6: Houses, communities and the road If the receipt has not been received within 21 days of paying the bond, the renter should contact the RTBA (see ‘Contacts’ at the end of this chapter). It is an offence for a renter to refuse to pay rent on the grounds that they intend to use the bond money as rent (s 428 RT Act). If the rental provider fails to lodge the bond, even after the renter has notified the RTBA, the renter should apply to VCAT for an order compelling the rental provider to lodge the bond. The renter should also refer the matter to CAV (see ‘Contacts’ at the end of this chapter). Long-term tenancy bonds If a rental agreement is longer than five years and rent is $900 a week or less, then the bond cannot exceed one month’s rent (s 31 RT Act; reg 9 Residential Tenancies Regulations 2021 (Vic)). However, if a rental agreement is a long-term rental agreement under section 26(1A) of the RT Act, a bond ‘top-up’ can be required it the rent increases (ss 34(2), 34A RT Act). Bond top-ups during a section 26(1A) rental agreement are dealt with in clause 8 of Form2. Renters must be given 120 days’ notice of a bond top-up; the notice must be in CAV’s rent increase form. A rental provider cannot demand a bond top-up for the first five years of the rental agreement and the future rental agreement must have an unexpired fixed-term period of at least five years. Additional bonds must be lodged with the RTBA (s 34A RT Act). Renters who believe the bond top-up amount is excessive, or who wish to otherwise challenge the bond increase, can apply to VCAT. VCAT can make any order it considers to be appropriate if it is satisfied that not intervening would cause severe hardship to the renter. In making an order, VCAT can consider the financial circumstances of both the renter and the rental provider, the condition of the premises, whether either party has breached any terms of the agreement, and any other matter VCAT considers to be relevant (s 34B RT Act). Specialist disability accommodation residents It is prohibited to request or receive a bond from residents of specialist disability accommodation ( SDA ) (s 498ZL(1) RT Act). Condition report Since 29 March 2021, rental providers have had to use the prescribed condition report form (s 35(1B) RT Act), regardless of whether a bond has been paid. This form requires (among other requirements) rental providers to list the date when the smoke alarms were last checked, and when electrical and safety checks and pool-barrier compliance checks were last completed. A condition report that is signed by the rental provider and renter is conclusive evidence of the state of repair of the property, except for problems that could not have reasonably been discovered on inspection (e.g. the roof leaks when it rains) (s 36 RT Act). It is common for renters and rental providers to disagree on the condition of a property. However, if a renter does not note the discrepancies on the condition report, then the report will be taken to be accurate unless there is compelling evidence to show otherwise. A condition report given to a rental provider is taken to be written notice to the rental provider of the defects or outstanding repairs stated in the report (s 36 RT Act). This means that if repairs are not completed by the required time, the renter can apply to VCAT for an order requiring the repairs to be completed. This only applies to rental agreements entered into from 29 March 2021. The rental provider must give the renter two paper copies (or one electronic copy) of a completed and signed condition report before the renter occupies the premises (s 35(1), 35(1A) RT Act). Within five business days of moving in, the renter must return one signed copy of the condition report to the rental provider (s 35(2)). The renter should keep a copy of the condition report in a safe place so they have it at the end of the rental agreement. If a renter was not given a condition report before moving in, they can complete one themselves, using the CAV condition report form (available at www. consumer.vic.gov.au) . The renter should give a copy of this report to the rental provider or agent within five business days of moving in (s 35(3) RT Act). Renters should thoroughly inspect the property before moving in and note any problems (e.g. carpet stains) in detail on both copies of the condition report. If there is not enough room on the report to record all the disagreements, the renter may write