Direct Bond Payments: What Renters and Rental Providers Need to Know

Under new Sections 405A and 405B, renters now have the statutory right to elect to pay their bond directly to the Residential Tenancies Bond Authority (RTBA) rather than transferring funds through a rental provider (landlord) or managing agency.

At Barry Plant, we believe transparency and compliance create better rental outcomes for everyone. Here is a clear breakdown of how the direct bond payment process works, what rights and duties apply, and how property management handles the process.

How Direct Bond Lodgment Works

The new legislative framework establishes a structured, step-by-step process when a renter chooses direct lodgment:

1. Written Election by Renter: A renter gives written notice to the rental provider or managing agent electing to pay their bond directly to the RTBA. Under Section 506(1)(da), this notice can be served electronically.
2. Form Completion & Signature: Upon receiving notice, the rental provider must complete and sign an approved RTBA bond lodgment form and provide it to the renter for signature.
3. Submission to RTBA: Once signed by both parties, the rental provider must submit the completed form to the RTBA and provide a copy to the renter.
4. Direct Payment Request: The RTBA issues a payment request directly to the renter.
5. Strict 2-Day Payment Window: Under Section 406(2), the renter must pay the bond amount directly to the RTBA within 2 days of receiving the RTBA's request.

Protection Against Discrimination

To ensure renters can freely exercise this option without disadvantage, the legislation makes it a specific offence for a rental provider to refuse to enter into a residential rental agreement because a renter has chosen to pay their bond directly to the RTBA.

Strict financial penalties apply for non-compliance with these provisions, reaching up to 25 penalty units for natural persons and 125 penalty units for owners corporations.

Renter Responsibilities

• Provide written election notice to pay directly to the RTBA, to the Rental Provider/Agent.
• Sign and return the RTBA bond lodgment form.
• Pay bond directly to the RTBA.
• Renter must pay bond within 2 days of receiving the RTBA request

Rental Provider / Managing Agency Responsibilities

• Complete, sign, and issue the RTBA lodgment form.
• Submit signed form to RTBA and copy renter.
• Cannot refuse tenancy based on direct bond election.

How Barry Plant Supports You

Navigating changing property legislation requires streamlined administration and absolute accuracy. Barry Plant's property management team uses compliant digital workflows to process bond elections swiftly, ensuring property owners stay protected and renters experience a smooth start to their tenancy.

For detailed advice on managing your rental property under Victoria's updated tenancy laws, contact your local Barry Plant property management team today.

For an overview of upcoming changes, visit our Victorian Rental Law Reforms page.

Disclaimer: The information provided in this article is general in nature and intended for educational purposes regarding residential property management in the State of Victoria under the Residential Tenancies Act and associated 2026 legislative updates. It does not constitute formal legal or financial advice. Rental providers should consult Consumer Affairs Victoria (CAV) or seek independent legal counsel regarding their specific circumstances.