Bond Deduction Victoria: What a Landlord Can Actually Claim

Not everything that bothers you about a property's condition at checkout is a valid bond deduction. Victorian law draws hard lines between what you can claim, what you can't, and how much any valid claim is actually worth after depreciation.

What You Can Deduct

Four categories of deduction are permitted under the Residential Tenancies Act 1997:

Unpaid rent. Outstanding rental arrears owed up to the lease termination date. If the renter owes two weeks' rent at checkout, that comes straight from the bond.

Property damage beyond fair wear and tear. Negligent or intentional physical damage that goes beyond normal use — holes in walls, broken fixtures, burn marks, stains that cleaning can't remove. The damage must exceed what was recorded on the entry condition report.

Cleaning below entry standard. If the property is left below the standard of cleanliness documented on Form 2 at the start of the tenancy, accounting for fair wear and tear, you can claim reasonable cleaning costs.

Replacement of destroyed or missing items. Missing keys, fobs, fixtures, or fittings listed on the condition report. Replacement is at depreciated value, not new-for-old.

What You Cannot Deduct

Pre-existing defects. Anything noted on the entry condition report or in the renter's amendments to Form 2 was already there. You can't claim for it.

Fair wear and tear. Faded paint, worn carpet in traffic areas, minor scuffs, loose handles from regular use. These are the natural cost of a property being lived in.

Full replacement cost. VCAT applies depreciation. A 9-year-old carpet with a 10-year useful life that's destroyed is worth 10% of replacement — not the full cost of new carpet.

Rent during vacancy if you didn't try to re-let. If the tenancy ends and you don't actively re-advertise the property, you can't claim lost rent for the vacant period against the bond.

Mandatory professional cleaning (in most cases). You cannot enforce a blanket "must professionally clean" clause. Cleaning charges are only valid when the property genuinely needs professional cleaning to match the entry standard, or when specific pet-related cleaning was agreed.

The Carpet Question

Carpet claims are the most disputed deduction category at VCAT. The rules:

• You can claim for carpet damage — stains, burns, tears, pet damage — that goes beyond fair wear and tear.
• You cannot claim for carpet that's simply worn from years of normal foot traffic.
• You cannot enforce mandatory carpet steam cleaning if the carpet is clean and undamaged at exit.
• All carpet claims are at depreciated value based on the carpet's age and useful life (typically 8–10 years).

A brand-new carpet ruined in year one? You can claim close to full replacement. An 8-year-old carpet with a stain? The claim might be worth 20% of replacement at most.

The 3-Day Evidence Requirement

Before submitting a bond claim for deductions to the RTBA, you must deliver an itemised deduction list with supporting evidence to the renter at least 3 business days in advance. This isn't optional — failing to deliver evidence can invalidate the claim.

Your evidence package should include:

• A line-by-line list of deductions with dollar amounts
• The entry condition report showing the original state
• Exit photos for each claimed item
• The depreciation calculation showing remaining value
• Contractor quotes or receipts at the depreciated amount

If the renter disputes your deductions, the matter goes to RDRV conciliation or a VCAT hearing, where the tribunal assesses each line item against these same standards.

The Rental Bonds in Victoria guide includes a pre-claim evidence log and depreciation worksheets for building a deduction claim that survives RDRV and VCAT scrutiny.

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