A Guide to Residential Tenancy Law & Disputes in Victoria

In Victoria, residential tenancy disputes are common occurrences between landlords and tenants. Whether it involves unpaid rent, property damage, bond disputes or lease termination issues, these conflicts often require resolution through the Victorian Civil and Administrative Tribunal (VCAT). Understanding the types of disputes that arise, and how VCAT manages them, is essential for both property owners and tenants.

This article explains the nature of residential tenancy disputes in Victoria, outlines common types of conflicts, and sets out the procedure for resolving such disputes through VCAT.

What Is a residential tenancy dispute?

A residential tenancy dispute is a legal disagreement between a landlord (rental provider) and a tenant (renter) arising from a residential tenancy agreement. These disputes may involve breaches of the rental agreement, issues of maintenance and repairs, disagreements over rent or bond, or concerns about access, privacy, and termination.

In Victoria, such disputes fall under the Residential Tenancies Act 1997 (Vic), which outlines the rights and responsibilities of parties to a residential lease.

When informal negotiations fail, parties may escalate the matter to VCAT – the body responsible for hearing and resolving tenancy disputes in a timely, low-cost and accessible manner.

Common Types of Residential Tenancy Disputes

Although rental disputes vary, certain categories arise frequently across Victoria. Below are the most common types of disputes heard at VCAT.

1.     Bond Disputes

Bond disputes are among the most frequent issues. Typically, a dispute arises when:

• The landlord claims part or all of the bond for damages, cleaning or unpaid rent
• The tenant contests the deduction, asserting the property was left in a reasonable condition, or that rent has been paid up to date, etc.

It is important to note that bonds must be lodged with the Residential Tenancies Bond Authority (RTBA). After the tenancy ends, either party may apply to have the bond released. If there is no agreement, the dispute may proceed to VCAT.

2.     Rent Arrears

Disputes concerning unpaid rent often lead to notices to vacate and eviction proceedings. A landlord may serve a Notice to Vacate if the tenant falls behind on rent for 14 days or more. If the rent remains unpaid, the landlord can apply to VCAT for possession of the property.

However, if tenants pay within the notice period, no application can be made (until a certain number of notices have been issued). Further, the tenant can apply for a payment plan or negotiate alternative arrangements. VCAT must balance the rights of both parties and will usually consider hardship before ordering possession.

3.     Property Damage

Allegations of damage beyond reasonable wear and tear frequently lead to conflict. Landlords may claim compensation for:

• Stains, broken fittings, or structural damage
• Failure to maintain cleanliness or sanitation

On the other hand, tenants often argue that the damage was pre-existing or resulted from fair wear and tear. Supporting evidence, such as entry and exit condition reports, becomes critical in such disputes.

4.     Repairs and Maintenance

Tenants have a legal right to live in a property that is in good repair and reasonably clean. Landlords must address urgent repairs without delay and non-urgent repairs within a reasonable timeframe. Disputes arise when:

• Landlords fail to undertake repairs
• Tenants carry out unauthorised repairs and seek reimbursement
• There is disagreement about whether a repair is urgent or non-urgent

VCAT may order repairs, reimbursement or compensation depending on the circumstances.

5.     Entry and Privacy

Under Victorian law, landlords must provide proper notice before entering the premises. Tenants may dispute:

• Unlawful or excessive entry
• Entry without notice
• Lack of respect for quiet enjoyment

Landlords may enter only under specific conditions, such as inspections, repairs, or emergencies, and must provide at least 24 hours’ written notice in most cases.

6.     Lease Termination and Evictions

Lease terminations often generate disputes, particularly when one party alleges breach of the agreement. These issues commonly include:

• Early termination by tenants
• Non-payment of rent
• Landlord seeking possession during a fixed-term lease

VCAT hears applications regarding the validity of notices to vacate, whether reasonable grounds exist for termination, and whether hardship would result from eviction.

7. Rent Increases

Disputes may occur when:

• Tenants believe a rent increase is excessive or unjustified
• Proper notice was not given (minimum 60 days)
• Increases occur more frequently than permitted (once every 12 months for periodic agreements)

VCAT can assess whether the new rent is excessive based on market comparisons.

Attempting Resolution Before VCAT

Before applying to VCAT, parties are encouraged to resolve disputes through informal negotiation. In many cases, disputes can be settled by:

• Communicating in writing
• Using the services of Consumer Affairs Victoria
• Engaging in voluntary conciliation

Consumer Affairs Victoria offers dispute resolution assistance and may help parties reach agreement without needing a tribunal hearing. While not mandatory in all cases, attempting resolution before escalating the matter can save time, stress and costs.

The VCAT Process for Tenancy Disputes

When disputes cannot be resolved informally, parties may apply to VCAT’s Residential Tenancies List. The process is designed to be accessible, even without legal representation.

1. Filing an Application

The first step is to complete and lodge a VCAT application form, which can be done online or in person. The application must:

• Clearly state the nature of the dispute
• Identify the orders sought
• Include relevant supporting documents (e.g. lease agreement, notices, condition reports)

There is usually a filing fee, although fee relief may be available for eligible applicants.

2. Notifying the Other Party

VCAT requires that the other party (the respondent) be properly notified of the application. In most cases, this involves serving the application via post or email. Proof of service must be provided.

The respondent may file a response or attend the hearing to present their side. Failure to attend may result in orders being made in their absence.

3. Attending the Hearing

VCAT hearings are conducted in an informal setting. The parties are usually not required to have legal representation, although they may engage a lawyer if they wish.

At the hearing:

• Each party presents their case
• The tribunal member may ask questions
• Relevant evidence is considered (including photographs, condition reports, receipts)

VCAT encourages a fair, quick and inexpensive resolution of disputes. Most matters are resolved on the day of the hearing.

4. VCAT’s Orders

After hearing the matter, VCAT can make a wide range of orders, including:

• Payment of rent arrears or compensation
• Release or division of bond
• Possession of the premises
• Repairs to be carried out
• Prohibition of unlawful entry
• Termination of lease agreements

Orders are legally binding and enforceable. In some cases, parties may seek to have VCAT orders registered with the Magistrates’ Court to facilitate enforcement.

Time Limits for Applications

Strict timeframes apply in residential tenancy matters. For example:

• An application regarding bond recovery must be made within 14 days of the bond being claimed by the other party
• Applications to challenge a notice to vacate must be made before the notice period expires
• Disputes regarding repairs or rent increases should be filed as soon as possible after the issue arises

Failing to act within the prescribed timeframe may prevent a party from pursuing their claim or defence.

Legal Representation at VCAT

Although VCAT was designed to allow parties to appear without lawyers, some disputes can be complex or involve significant sums of money. Legal representation may be useful where:

• There are multiple issues in dispute
• The party is unfamiliar with legal procedure
• The consequences of the outcome are significant

Preparing for a VCAT Hearing

To improve the chance of a successful outcome, parties should:

• Review the Residential Tenancy Agreement
• Gather and bring all relevant documents
• Prepare a chronology of events
• Bring photographic evidence where applicable
• Be ready to explain clearly what outcome they are seeking

Where appropriate, witness statements may also be helpful. Preparing thoroughly can often make a significant difference.

Appeals

Appeals in residential tenancy disputes can only be made to the Supreme Court of Victoria and only on a question of law – It is for this reason that such appeals are rare.

This means the appeal must argue that the tribunal applied the law incorrectly – not merely that the decision was unfair or unfavourable.

Conclusion

Residential tenancy disputes in Victoria are governed by clear legislation and a structured tribunal process. While disputes over rent, bond, repairs or lease termination are common, many can be resolved through negotiation or with the assistance of Consumer Affairs Victoria.

When informal resolution is not possible, VCAT offers an efficient forum to resolve disputes. Understanding the types of disputes that arise, and how to prepare for a VCAT hearing, is essential for landlords and tenants alike.

Acting promptly and seeking appropriate legal advice where needed can help parties achieve fair outcomes and avoid unnecessary escalation.

Get in Touch

If you are involved in a residential tenancy dispute, or need legal advice on a residential tenancy issue, we can help. Contact Allen Law today.

Phone:               (03) 7020 6563
Email:                 enquiries@allenlawyers.com.au
Website:          www.allenlawyers.com.au

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified legal practitioner for advice tailored to your situation, as laws may change.