The latest Residential Tenancies Bond Authority (RTBA) Annual Report for 2023-24 highlights key shifts in Victoria’s rental market. As of 30th June 2024, the total number of bonds held declined by 0.9%, while their total value increased by 5.2%, indicating rising rental prices. The median tenancy duration also grew, with active bonds averaging 732 days, up from 679 days in 2023, suggesting renters stay in properties longer. Bond repayments increased by 12.5%, while new bond lodgements declined by 3.9%, reflecting a higher rate of renter turnover but fewer new lease agreements. Additionally, bond transfers rose by 19.5%, showing more renters are adjusting existing leases rather than vacating properties altogether.
The latest RTBA data highlights key trends in bond disputes. In 2023–2024, 95% of bond repayments were processed by mutual agreement, while only 5% required VCAT or court intervention. Of the repaid bonds, 64% were fully refunded to tenants, 10% went entirely to rental providers, and 26% were shared between both parties. Enquiries from rental providers rose to 31,819, while renter enquiries surged nearly 50% to 252,946, with bond repayment claims being the most common issue.
Key insights for real estate professionals:
Rental Market Shift: The number of bonds declined, but their total value increased, reflecting rising rents and a tightening market.
Longer Tenancies: Median tenancy durations are growing, suggesting renters are staying put due to affordability or lack of rental options.
Higher Bond Repayments: More bonds were repaid than lodged, indicating increased renter turnover despite fewer new leases.
Increased Bond Transfers: A 19.5% rise in bond transfers suggests that more renters prefer to swap leases rather than move out altogether.
Renter Enquiries on the Rise: Renter enquiries surged by nearly 50%, with bond repayment claims being the most common reason for contract.
Notes from the RTBA Annual Report 2023-24
As of 30th June 2024, the Residential Tenancies Bond Authority (RTBA) held 732,125 bonds, valued at 1.456 million. This represented a decrease of 0.9 per cent in the number of bonds since 30th June 2023, and an increase of 5.2 per cent in value.
Interest earned on the bonds is paid to the Residential Bonds Investment Income Account. This pays for the administering the RTBA and contributes to the Residential Tenancies Fund. For the 2023 – 2024 year, this totalled $13 million, compared to $12 million in 2022 – 2023.
99 per cent of bond forms received by midday are processed on the same day, forms that cannot be processed are returned by the following business day, and bond repayments are made by a direct credit issued on the evening of the day of approval, or by cheque mailed the next business day.
The RTBA registered 245,744 bond lodgements in 2023-24 (an average of 4,726 a week), compared with 255,722 in 2022-23 (an average of 4,918 a week).
The RTBA repaid 252,036 bonds in 2023-24 (an average of 4,847 a week) compared with 224,127 in 2022-23 (an average of 4,310 a week).
95 per cent were processed upon agreement between a renter/s and the rental provider, and five per cent were made at the direction of VCAT or through court.
64 per cent of bonds were paid in full to the renter or renters, 10 per cent were paid in full to the rental provider, and 26 per cent were shared between the renter or renters and the rental provider.
Bond transfers increased from 100,455 in 2022 – 2023 to 120,006 in 2023 – 2024, i.e. from 1,932 to 2,308 weekly. 97 per cent of transfers between renters were electronic transactions in 2023 – 2024.
In 2023 – 2024, RTBA received 60,669 calls and 29,328 emails, up from 50,813 calls and 27,111 emails in 2022 – 2023. The most frequent enquiries were on bond repayment claims.
In 2023 – 2024, there were 31,819 enquiries by rental providers, up from 30,533 in 2022 – 2023. In the same period, there were 252,946 enquiries from renters, up from 170,699 the year prior.
Education activities over 2023 – 2024 included written advice to rental providers on the RTBA Online capabilities and the benefits of registering on RTBA Online and using electronic transactions.
For the bonds repaid in 2023 – 2024, the median duration of the tenancy was 621 days, up from 560 days in 2022 – 2023. As of 30th June 2024, active bonds had a median tenancy duration of 732 days, up from 679 days on 30th June 2023.