Victoria Holding Deposits
In Victoria, Holding Deposits are known as Application Deposits. The Application Deposit holds the property for the prospective tenant for 14 days, and the money must be returned to the tenant.
This guide covers landlords (or head-tenants) and tenants (or sub-tenants) in a Residential Tenancy. This applies to the majority of share accommodation and residential property rental situations. To confirm it covers your situation visit What is my share accommodation situation?
How do Holding Deposits work in Victoria?
An Application Deposit is a payment made by a prospective tenant to a landlord as a show of good faith.
The payment encourages, but does not oblige, the landlord to not enter an agreement with a different prospective tenant for 14 days.
There are no restrictions on the amount that can be charged for an Application Deposit. It is common practice however for an Application Deposit to be the equivalent of 1 or 2 weeks rent.
The Application Deposit must be returned to the tenant regardless of whether an agreement is entered.
Transferring money safely
When paying your deposit, bond or rent by cash make sure you get a receipt. With modern phones this can be as simple as an SMS or email confirming the amount, date and what it is for. Keep a copy of this incase you need it later.
Never ever transfer money to a bank account outside of Australia or use a untraceable money transfer system such as WESTERN UNION. If anyone asks you to do this on any website it is likely to be a scam and you are almost guaranteed to lose your money.
If this ever happens on Flatmates.com.au report the member immediately so we can investigate and take the appropriate action.
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These legal guides provide a brief summary and introduction of the laws and regulations affecting share accommodation. They do not cover all cases in all legal jurisdictions and might not apply in your specific share accommodation situation. It is important that you use this information as a guide only and seek independent Legal Advice or consult the Relevant Acts. We do not accept any liability that may arise from the use of this information.