Determining the appropriate rental bond is a key part of preparing an investment property for lease, and is governed by Victorian legislation. As of December 2025, the maximum bond amount a landlord can request is equivalent to four weeks’ rent.
Currently in Melbourne, and particularly within the Eastern Suburbs where Fletchers manages a significant portfolio, the bond amount is directly linked to the weekly rental rate. For example, a property leasing for $550 per week would have a maximum bond of $2,200. Landlords cannot exceed this amount. The Residential Tenancies Act 1997 outlines the process for lodging the bond with the Bond Authority of Victoria (BAV). It’s important to note that the bond is held by the BAV, not the landlord, and is refunded to the tenant at the end of the tenancy, provided the property is returned in good condition, and all rent and other charges are paid. In 2026, prospective tenants will continue to prioritise properties with transparent and compliant rental processes. Sellers considering converting their owner-occupied home into a rental property should factor in the bond requirements when calculating potential returns. Fletchers’ property management team can provide detailed advice on current rental yields and associated costs in specific Eastern Suburbs locations.
Understanding the legal limits and procedures surrounding rental bonds is crucial for a smooth and compliant tenancy agreement.