Rooming House and Sub-Letting Bond Rules in Victoria

If you own a rooming house or your renter has sub-let a room, check which bond rules apply. Rooming houses use separate statutory caps; a private sub-tenancy follows the standard residential rules, with the head-renter taking rental-provider duties.

Rooming House Bonds: Part 3 of the RTA

Rooming houses operate under Part 3 of the Residential Tenancies Act 1997, not the standard residential tenancy provisions. The bond caps are lower:

• Fixed-term agreements: maximum 28 days' rent
• Non-fixed (periodic) agreements: maximum 14 days' rent

These caps are distinct from the standard residential bond cap of one calendar month's rent. Collecting more than the applicable rooming-house cap can breach the rooming-house bond rules; check the applicable offence provision before relying on a standard-tenancy penalty amount.

Rooming house operators must register with their local municipal council under the Public Health and Wellbeing Act 2008. This is a separate obligation from RTBA registration — both are required. The council registration covers fire safety, health standards, and occupancy limits; the RTBA registration covers bond administration.

The bond is administered through the RTBA, but rooming houses are governed by a separate part of the RTA. Confirm the applicable lodgement and end-of-tenancy steps with CAV or the RTBA rather than assuming every standard residential-tenancy procedure is identical.

Sub-Letting Bonds: The Head-Renter as Rental Provider

When a renter sub-lets part of the property — a room, a granny flat, a section of a shared house — the head-renter takes on the full statutory duties of a rental provider for that sub-tenancy.

That means the head-renter must:

1. Register independently with the RTBA as the rental provider for the sub-tenancy
2. Calculate the bond cap based on the sub-renter's weekly rent (not the head-renter's full rent)
3. Lodge the sub-renter's bond with the RTBA within 10 business days
4. Complete and deliver a condition report for the sub-let space
5. Follow the full end-of-tenancy claim process when the sub-renter moves out

The head-renter has statutory duties as rental provider for the sub-tenancy. If you consented to the sub-let, it's worth understanding that your renter now has obligations of their own, and a failure on their part can create complications for the broader tenancy.

What This Means for Property Owners

If you own a rooming house, the lower bond caps mean you're holding less security per resident. That makes condition reports and evidence documentation even more important — the margin for covering damage from a 14-day bond is thin.

If you've approved a sub-let, the key risk is administrative: the head-renter might not register with the RTBA, might not lodge the bond within the deadline, or might handle the end-of-tenancy claim informally. A renter who mismanages a sub-tenancy bond and ends up on the non-compliance register is a management problem you'll inherit.

For standard residential tenancy bond obligations — the ones that apply to most private landlords in Victoria — the Victoria Rental Bond guide covers the complete framework from collection to return.

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