Shady Landlord Hasn't Declared Bond

My friends and I made the mistake of renting an apartment directly from the landlord in order to be close to an area for a period. It was a 6 months contract with the option of extending.

He has been extremely dodgy at every step of the way, including at the start where he tried to overcharge us with rent and claimed he had just made a mistake with calculations. In hindsight that should have been a big red flag. The landlord owns the entire floor of the apartment and thus rented out to couple of other people. They all ran away because of the bs they had to deal with - just as a reference and we were the only tenants he had left.

Since our move we have been trying to organize a time to meet with him, to discuss a few things - contract and the finalisation of bond, as well as few issues we had however he kept bailing on us literally last minute (we would wait for him to show up at 6pm for example, and he would text 5 minutes before he's due that he can't make it, this happened few times and resulted in several missed plans, needless to say we didn't care much after that).

We didn't want to stay any longer either and told the landlord we'd be moving out once our contract was over, the landlord tried to reduce the rent and we thought about it but the reduction wasn't much and we hadn't been staying at the apartment since the lockdowns so over a month at that point and was only at apartment sporadically even before than so it didn't make sense. We told him we would move out regardless. He however wants full months notice from the date we told him we would be moving regardless. And is not accepting our contracts end date to be the actual end of lease.

The second issue is with electricity bills. Now our Electricity is under his name so he gets the bills for the entire floor and we have to pay him directly. He claimed he had issues with previous tenants and thus electricity was kept in his name. However in the last bill, he wanted almost $300 for a 28 days of electricity use. During this period two of us was at the apartment for 6-10 days only and it was at night only (so we slept rather than spent much time at apartment) and the other was at apartment only on weekends but again isn't crazy using anything to rack up such a bill. No one uses electricity that much and usually my electricity bills are max $30-50/month of bill. We asked the landlord several times to provide us with the actual bill to prove this was accurate however he's refusing to do so. he sent a screenshot which looks like is an image on paint that is incredibly blurry and could barely be read, but that was it.

We contacted Consumer Affairs, and even Legal Aid however they kept providing mixed information. While chatting with them they informed us our bond wasn't even declared by him and they requested that we request him to provide us with proof.

Our landlord being the amazing person that he is said he hadn't reported it because he was waiting to resolve the rest of the bond before he did that (something he never asked for even though he had many chances to, and he had over $1k in bond payments between us, which apparently he needs to report even if it is just partial bond report)

Legal Aid advised us to just leave when our contract date is over and that he'd be the one to go through reporting etc which would result in him getting fined for not reporting the bond. However consumer affairs is advising that we just do as he's asking and pay for the extra months to ensure we don't do anything wrong.

So just want to ask others that may have more experience on this on what we should be doing. This guy literally cut off one of the tenants internet off and verbally abused the poor girl after she told him she wanted to move out, forcing her to move out overnight as she didn't feel safe in her own home, and she had to continue paying him for another month in a house that she couldn't stay in!. So we don't really want him to get away with putting the tenants through this crap and taking advantage of people.

Comments

  • -2

    the word is lodged not declared the bond.

  • you are obligated to lodge the bond within 10 days - if this isn't lodged the landlord may face significant penalties - so if landlord hasn't lodged you have some leverage. as for the utility bill, what does your tenancy agreement say? the landlord should have shown a calculation of how he/she apportiond your usage.
    bond requirements

  • +4

    Sounds like a scumlord..

    Is it an actual residential lease you have signed or some dodgey diy agreement?

  • +4

    Also report him to the ATO? I can't imagine everything has been declared.

    • what exactly will they be reporting?

      • +3

        Potential undeclared income. The ATO use bond records to see if you have been declaring rental income so dodgy landlords avoid lodging the bond…

  • +4

    Just stop paying rent. Turn your problem into his problem. As Legal Aid has hinted, he won't be racing off to VCAT. The electricity is in his name so don't pay that either. Get your own Internet access.

    • +1

      I agree, stop paying rent, don't pay bills, when the time comes tell him if he has an issue take it to VCAT him not declaring the bond is much worst then a couple weeks rent

  • Talk the the Tenancy Union.

    https://tenantsvic.org.au/

    This guy sounds as dodgy as hell. You need to get your bond back and get him to justify the power bill. My advice would be to move out ASAP even if you end up paying the extra rent. You need to stop this rip off from the power bills.

    Make sure you give him an official notice ASAP then move your stuff out. He sounds like the sort of guy who would be trouble.

    Best of luck.

    • Thank you, I'll get in touch with them. We haven't been in the apartment for over a month now due to lockdowns and have given him the official notice of leave that we'd be leaving when our contract ends in 2 weeks but we just cant agree on time: as he wants 1 months from the day of report instead of the 2 weeks. We are worried though that hes going to claim theres another 200+ electricity bill that magically appeared while no one was at the apartment. But at this point we wont pay unless he provides an official electricity bill to back up his claims.

      • +2

        Have you given the notice to vacate in writing?

        It looks like in Vic you still need to give 28 days notice (before the end of lease date) to move out on the lease date, unless special circumstances apply (such as "when a renter with special or care needs must leave to get care: evidence is required with the notice of intention to vacate").

        I believe in QLD and NSW it is only 14 days before the end of lease.

        Electricity - do you have a seperate meter, or is it a combined one for the floor. If it's seperate he should be able to provide you an itemised bill for your apartment. If it's combined, I beleive it's supposed to be included in the rent you already pay (it may vary by state).

        No separate meter
        If there is no separate meter at the property, the rental provider is also responsible for:
        Charges for the supply or use of electricity, gas (except bottled gas) or oil
        Water charges, including all sewage disposal charges, and water supplied to the property with the supply service costs [section 53]

        As for the Bond, if it's less than the month rent you owe, then leave it and just hand the keys back. Whether you think you'll get it back or not, I'd report it and hope he gets fined.

        Renters should receive their bond receipts within 15 business days from when the bond is lodged. If you do not, call the RTBA on 1300 137 164.

        • We did not know about the combined meter regulation, that's a really good point! thank you. There is one bill for the floor and he divides that btw each apartment. though the other two apartments have also been empty for a couple of months now so the price he mentioned still wouldn't make sense.

  • -4

    Anyone got the 5000 line or shorter version?

  • +1

    Sounds like you might be subletting. A lot of people rent an apartment then sublet it out to others for profit. Until this COVID thing killed that plan. There was a company in Melbourne that rented apartments then re-rented them out to students until COVID meant no students and they were left holding leases where there is no tenants.

    Do what you need to do and it seems only recourse is legal. Take them to small claims.

  • move out

  • The whole thing doesn't add up … but moving on, just move all your stuff out, tell the LL what you're doing, stop paying the rent after your fixed term expires, but realise your bond might vaporise (probably already has in practical terms).

    Let the LL take up the running from there … it's likely that will be the end of the matter.

  • From the landlord's perspective in NSW, my friend had a tenant that said they would agree to pay the "full bond" via NSW Fair Trading through the Rental Bonds Online (RBO) service (it has to be offered as a first option).They paid the rent in advance that day so the landlord thought nothing of it. 10 days later and the tenant still didn't create an account. He was a foreigner so would be ineligible for the Rentstart Bond Loan. Was "getting paid next Thursday". 8 Thrusdays later the landlord rang NSW Fair Trading asking what to do about a tenant that fails to pay a bond but manages to pay rent. The landlord decided to protect himself by (a) treating the subsequent rental payments as properly lodged bond instalments as per the initial full bond agreement and (b) delivering a "friendly" eviction notice since the tenant was suddenly more than 14 days behind in rent, explaining it as a legal formality. The tenant wasn't too happy about this but sure enough the rent was never paid on time again. The tenant was offered and refused fee-free early termination and eventually evicted after a no-show at the tribunal.

    The moral of the story was to always do things by the letter of the law on your side and keep evidence. If the contract was 6 months and you gave 14 days notice (at least in NSW) before the end of the contract then you should be legally covered to end the contract.

    However, the bond story is a bit lacking in information. Were you formally offered the opportunity to pay the bond in instalments? Were you paying cash only? Otherwise, why didn't you agree to transfer the balance electronically in full or in instalments? Was the overpaid rent ever discussed as a bond instalment? Was the landlord being evasive in conversation? Do you have SMSs or emails discussing the bond over the last 5-6 months? Were you withholding bond or rent at anytime due to issues with the property? If so, did you admit this in writing? Was the electricity bill outlined in the contract as a separately metered cost? If the landlord failed to follow protocol then it's obviously in their best interests to now follow the contract, hoping that no extensive damage occurred at the property.

    Note that the landlord must cover the cost of electricity (and obviously incorporate it into the rental price at risk) if it can't be separately metered. If you suspect meter documentation has been faked then you can contact the Energy and Water Ombudsmen: https://www.ewon.com.au/ (http://www.ewov.com.au/ in VIC).

    • Well this is going to sound funny but he never asked for it. He asked for a certain amount to be paid by each of us as a partial bond (which between us ended up being just over 1k) He said he would discuss with us about the rest of the bond once we settle in as he was busy with other things. We have text messages that demonstrate how he keeps saying we will discuss it later or we ask him to meet with us so we can discuss it, he agrees and then cancels on us last minute. We never missed any rental payments - all transferred through the bank. If he had asked for the full bond we would have transferred that too. However he's now claiming we hadn't given him the full bond and thus he was just waiting for us to give him the full bond before he could lodge it. Consumer affairs say that this wont hold as he's expected to lodge even partial payments which he hasn't.
      I mean we can prove our side through his texts its just really frustrating going through this and not knowing what we should do.
      as to the bills we did not know he should be covering the cost given its a shared meter. He claimed the bills were on his name purely because the previous tenants didn't pay the bills so he was protecting his tenants by having it all managed by him. Guess that also explains why hes been so reluctant to provide the actual bill, but instead opted to send extremely blurry screenshots with minimal information despite being asked several times.

      • If it's an "apartment" with a "6 month contract", and a "bond" rather than "security deposit", and the official tenancy contracts were signed, then you'd be protected as a tenant under the Residenial Tenancies Act and he'd have to follow tenancy laws with regards to bond and utilities.

        There are exceptions that don't fall under this act, such as registered boarding houses (in addition to serviced apartments, hostels, college apartments etc). In this case you're actually an "occupant" and not protected by the tribunal under tenancy laws (you instead sign an "occupancy agreement"). In my state at least, NSW, registered boarding houses can but don't have to lodge a bond with NSW Fair Trading. The electricity can be charged separately (but fairly). The security deposit cannot be more than the equivalent of 2 weeks occupancy fee. You only have to give notice equivalent to your rental instalments.

        As someone mentioned above, sometimes you're not even dealing with the landlord but a head tenant (rents the whole floor and sub-lets the rooms/apartments) or a manager. They'll often hack together parts of tenancy and occupancy agreements together so you'll see "house rules", have artificial room numbers, and the agreement uses words like occupant and "shared accommodation".

        I've never had to argue with a landlord, but with dodgy ex-employers I normally play the long game if I know I've done nothing wrong and I need the money that's been robbed. It's a game of mental strength but sometimes you pay for it in bitterness.

      • $30 for a month for electricity is very low for one person, let alone 2 or more, since a big chunk of that goes to connection costs. Of course gas-heating and cooking lowers electricity costs.

        I've lived in apartments where $300/month or more is realistic (5+ people with heaters and air conditioners and driers) but that's obviously unlikely as an average for 3 mostly empty apartments on your floor (unless they left heaters and kettles and driers running while out). How much were you paying in the other months? If it's an estimate rather than actual then that's obviously another issue. Or a previous bill was carried forward.

  • +1

    Sounds like your bond does not exist anymore - your LL probably just spent it.
    Considering he does not hold back quoting you ridiculous power bills, he will probably look for other ways to eat into your bond anyway.

    Make sure you have CORRECTLY noticed him about your plans to move out (dunno if in VIC it is something you have to do in writing, or if email is sufficient).

    Regardless of the end of your notice, just find a new place and move there asap, so that you can manage your mental health - living under a dodgy LL can wreck some nerves for sure. You might end up paying double rent during the overlap, but I think pros outweigh the cons.

    DO NOT, I repeat, DO NOT stop paying rent until your notice is due. If you end up needing to go to VCAT to get back what you are owed, you want to appear to have been the reasonable side, with all your proven dues covered as per tenancy act.

    After moving out, DO NOT advise him about your new mailing address. Instead just let him know he can reach you via email.

    Once you have moved out, keep on asking him via email for:
    - status of your rent account with him
    - status of your utilities with him, and ask for an actual bill to be presented together with his formula for calculating your share
    - if you find any disparity between what you think you owe him, advise him that you do not agree with his reasoning, present your own
    - if he refuses to acknowledge that, or threatens you that he will keep your bond, inform him you will apply to VCAT to have it returned to you. Believe me, if he has not lodged it, he will not want to go to VCAT, because they will slap him hard for keeping the bond, and quite possibly also for trying to drive up your bills without any proof.

    If you are not a confrontational type of person, and would rather just move and forget - remember that is always an option. Mental health is worth more than $1-2k lost on a learning experience. Next time you will rent smarter.

  • +2

    Your LL is not doing anything by the book.
    He is deliberately fleecing you.

    What I'd do? Knowing he's as dodgy as anything, I'd just cut my losses & move out ASAP. Do it in the middle of the night if necessary & just stop paying rent. Do it tomorrow, or next week. I would've even wait until the end of lease/contract. He's not playing by the book & nor should you. Neither of you will have any legal standing to go after one another so just split. Now.
    Heck if he has some "bond" (yeah right) I'd even make up some excuse about not having rent money for a couple of weeks at least so you get some return back on that. And leave. If you're a few hundred out of pocket then so be it. At least you're out of such a toxic arrangement.

    Change your SIM so he doesn't have your number any more and no other way to contact you.

  • +2

    Since the electricty bill is in his name… I'd buy maybe 5 Kmart 2000W heaters and have it run 24/7 lol (one per powerpoint and reduce if it trips the electricity box).

    5x2000w = 10kWh per hour.

    10kWh x 24 = 240kWh.

    Assuming 0.26c/kWh. That's $62.40 a day. $436.80 a week. By the time the next bill comes… say in 90 months… that's a whopping $5,616.

    PS. Don't do this it may be illegal.

    • Start running mining rigs….. same outcome for the landlord, better option for you :)

  • Secure another place to live then stop paying him anything. He'd be silly to chase you over it.

  • Has it been determined here yet if the arrangement is proper landlord/tenant?

    How did the landlord cut off the previous tenant's internet access? Is that owned by him too?

  • +1

    Even if the landlord has bought the entire floor and has all the apartments in his name, they would still require separate metering, each with their own NMI. This will be displayed on an individual bill by the service provider.
    So that having been said, there will be an individual bill, including billing period for your apartment. For the LL to demand payment, he will need to provide the bill, otherwise you may find that the word fraud and the term 'obtaining financial gain by deception' may need to be used… as well as reminding them that this is a crime and can result in a criminal record… It is an offence to obtain a financial advantage by deception (Crimes Act 1958 s82).

    Not that overseas trips are a immediate option, but can play hell with getting a visa in places like the US etc.

  • +1

    It reads like you are a boarder and therefore a lot of the tenancy protections do not apply to you.

    • Another reason to talk to the Tenants Union to confirm what rights the OP has and what they would be defined as.

  • +1

    It is LAW your Bond be kept by the Rental Bond Board.

    You report this individual immediately.

Login or Join to leave a comment