How to Collect Bond from a Tenant in Victoria: Landlord Step-by-Step

You've signed the rental agreement and the new renter is about to move in. Now you need to collect the bond — and in Victoria, every step of that process has a statutory rule attached. Here's how to do it without creating a compliance problem.

Calculate the Maximum Amount

If the weekly rent is $900 or less, the bond cannot exceed one calendar month's rent. The formula:

Weekly rent × 52 ÷ 12 = maximum bond

For a property renting at $550/week, that's $550 × 52 ÷ 12 = $2,383.33.

The common mistake: multiplying weekly rent by four. Four weeks' rent ($2,200 in this example) is less than one calendar month — so you'd actually be under-collecting by $183. It works the other way too: if you miscalculate and over-collect, that's an offence carrying up to 60 penalty units ($12,546 in FY 2026–27).

If the weekly rent exceeds $900, the one-month cap doesn't apply — you can negotiate a higher amount, or VCAT can order one for properties with exceptional fittings.

Offer the Direct Payment Option

The renter has a statutory right to pay their bond directly to the RTBA rather than giving the money to you. Here's how that works:

1. The renter notifies you in writing that they want to pay the RTBA directly
2. You select the direct-payment option when initiating the bond on RTBA Online
3. The RTBA sends the renter an electronic payment request (credit card, debit card, or BPAY)
4. The renter must complete payment within 2 business days

From 1 June 2027, refusing to enter into a rental agreement because the applicant chose the direct-payment option becomes a specific statutory offence. Even before that date, it's best practice to offer the option upfront.

Accept Payment and Record the Date

If the renter pays you directly — by bank transfer, cash, or cheque — record the exact date you receive the funds. This date starts the 10-business-day lodgement clock.

Keep the bond separate from rent payments in your records. Bond money is held in trust by the RTBA — it's not income, and mixing it with rent creates confusion when it's time for end-of-tenancy accounting.

Lodge with the RTBA Within 10 Business Days

Log into RTBA Online with your Individual Landlord account, enter the bond details (amount, renter names, property address), and submit the lodgement. The RTBA timestamp proves you met the deadline.

Business days exclude weekends and Victorian public holidays. If the bond arrives before a public holiday and a weekend, count carefully — those non-business days extend the calendar time in your window.

The penalty for late lodgement under section 406: up to 150 penalty units ($31,365 in FY 2026–27). This is the single highest bond-related fine in the RTA.

Confirm the Bond Receipt

The RTBA issues an official Bond Receipt containing a unique Bond Number within 7 days of processing. The receipt goes to both you and the renter(s). If neither party receives it within 15 business days, contact the RTBA to trace the transaction.

Keep this receipt separately from your rent ledger — the Bond Number is what you'll reference for any future claims, transfers, or disputes.

What Not to Do

Don't hold the money. Some landlords collect the bond and sit on it, planning to lodge later. Missing the 10-business-day deadline is an offence, so lodge promptly and keep the RTBA confirmation.

Don't ask for extra payments. No pet bonds (prohibited in Victoria), no holding deposits, no application fees. The bond and advance rent are the only upfront charges you can collect.

Don't accept more than the cap. Even if the renter offers to pay extra for peace of mind, accepting an over-cap amount is an offence. The RTBA portal itself flags over-collection if the entered amount exceeds the calculated threshold.

For the complete bond collection workflow — cap calculation, lodgement ledger, and receipt tracking — the Victoria Rental Bond guide walks through each step with dated compliance records built in.

See more Victoria guides →