Recent rental reforms in Victoria will help stop agents and landlords making dodgy bond claims, advocates say, including using artificial intelligence (AI) to create inaccurate condition reports.
Changes to state tenancy laws, effective October 2026, make it an offence for property owners or agents to make a claim for renters’ bonds without sufficient evidence.
Deputy CEO of Tenants Victoria Cameron Bloye says bond disputes are one of the most common issues renters report to the advocacy body.
“It’s a common source of conflict between renters and landlords: claims that are sometimes excessive or unreasonable for normal wear and tear that is naturally going to happen in any home over time,” Bloye says
Previously in Victoria, an agent could make a claim on a tenant’s bond without any evidence. If a renter wanted to dispute it, Bloye says they would be forced to negotiate without actually knowing what the claim was for, blindly taking their case to Rental Dispute Resolution Victoria (RDRV) or the civil tribunal if needed.
Bloye says this was a frustrating process that left many renters feeling pressured to pay up.
“I think [the reforms] will help to even the playing field and weed out some of the poor conduct that we do see,” he says.
It’s a common source of conflict between renters and landlords: claims that are sometimes excessive or unreasonable for normal wear and tear
Cameron Bloye, Deputy CEO Tenants Victoria
Anika Legal, a free community legal service, reports that in 2022 and 2023, two in five cases that proceeded to the tribunal ended in the rental provider being awarded no money. This would suggest the agents’ or landlords’ claims were baseless.
Under the new rules, an agent or property owner must provide supporting evidence to tenants before making a claim, such as photos, invoices, receipts or quotes, and this evidence must not contradict the condition report.
Bloye from Tenants Victoria says the reforms will also help crack down on the emerging issue of agents using AI to complete an exit report and find reasons to deny tenants their bond.
Hannah (not her real name) contacted Tenants Victoria after her real estate agent made a claim for around $10,000 in repairs when she moved out of her rental.
When investigated, the real estate agent admitted to Tenants Victoria that they used AI to analyse the photos in the condition report, which falsely identified shadows, lighting issues and knots in wooden floorboards as damage.
Hannah had photos and videos to show that she’d left her rental in a spotless condition, but the agent still tried to go ahead and claim the bond, so she was forced to negotiate or proceed to the tribunal.
Despite having evidence that the claim was unwarranted, Hannah still agreed to settle for a few hundred dollars so that the matter would come to an end.
Victoria is now the second state, along with Queensland, to make it an offence for a landlord or agent to submit a bond claim without evidence.
Elsewhere in Australia, however, renters remain vulnerable to shonky claims.
Tenants’ Union of NSW CEO Leo Patterson Ross says he would welcome the introduction of similar requirements in NSW.
“We need a very reliable path where only legitimate claims are going forward, because there is still a lot of pressure on tenants to accept unfair claims.”
In NSW, tenants need to pay to attend the tribunal and may have to take time out of work, so disputing a claim can mean waiting weeks or months before they see their money.
“If a claim is being made for a $200 cleaning fee, there is a disincentive to dispute that and spend what is probably more than $200 worth of your time and money,” Patterson Ross says.
“Even if you think it is unfair and there is no evidence, some people just accept it … $200 is just a small proportion of the whole bond.”
We need a very reliable path where only legitimate claims are going forward, because there is still a lot of pressure on tenants to accept unfair claims
Leo Patterson Ross, CEO Tenants’ Union of NSW
Between October 2025 and September 2026, the Tenants’ Union Bond Loss Tracker reveals 37% of NSW renters lost part or all of their bond, losing on average two weeks’ worth of rent.
According to Anika Legal’s 2022–23 research, 43% of Victorian tenants facing a bond claim reported that their dispute impacted their ability to pay a bond for a new rental home.
To address this issue, NSW and Victoria have since introduced a portable bond scheme, allowing tenants to transfer their existing bond to a new property. Queensland and South Australia are developing similar systems.
“But both Victoria and NSW have made a mistake in putting a charge on the portable bond system, and that acts as a barrier to people taking it,” says Patterson Ross. Tenants must pay $25 if they wish to transfer their bond to a new property.
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James is a journalist with CHOICE's editorial and investigations team, decoding complicated consumer issues and reporting on how corporations and businesses affect the lives of Australians.
He has previously created podcast series for We Are Explorers and Protect Our Winters Australia, and has published in Cosmos and The Citizen. James has a particular interest reporting on science, environmental and social issues, and was a recipient of a JEERA Ossie Award for his journalism.
James has a Master of Journalism and Bachelor of Science in Physiology from the University of Melbourne. LinkedIn
James is a journalist with CHOICE's editorial and investigations team, decoding complicated consumer issues and reporting on how corporations and businesses affect the lives of Australians.
He has previously created podcast series for We Are Explorers and Protect Our Winters Australia, and has published in Cosmos and The Citizen. James has a particular interest reporting on science, environmental and social issues, and was a recipient of a JEERA Ossie Award for his journalism.
James has a Master of Journalism and Bachelor of Science in Physiology from the University of Melbourne. LinkedIn
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