State makes changes to rental bond system

“We know that dealing with rental bonds can be challenging and inconvenient — we’re fixing that to make the process better for everyone involved,” Ms Horne said.

“These important changes are another way we’re making renting fairer and easier for all Victorians.”

The $9 million upgrade for the new system will include an update to allow renters to pay their bond money directly to the RTBA, which the government claims will give renters peace of mind that their money is held securely.

Currently, renters must submit their bond to their rental provider or real estate agent, meaning the responsibility of lodging the bond sits largely with the rental provider.

The government said giving renters the option to submit their bond directly would simplify the process and cut red tape for each of renters, rental providers and property managers.

It has engaged digital business 8Squad to work with the Department of Justice and Community to work on the website upgrade.

The government said integration with the systems used by real estate agents would also make the bond process easier for those businesses, allowing for faster lodgements, transfers and claims.

Operational costs are predicted by the government to fall by $3.5 million a year over five years under the changes.

The Andrews Government also reformed the rental bond system in March 2021.

Under those changes, renters can now apply directly to the RTBA to have all or part of their bond released without needing to wait for the rental provider or agent to lodge their bond claim.

This means renters are able to make a claim for their bond without their rental provider’s agreement. Once this occurs, the RTBA alerts the rental provider and other co-renters to the renter’s claim, giving them 14 days to dispute it.

The government said almost 15,000 bond claims had been initiated by a renter since this new law came in, with more than half paid out directly to the renter.