29 January 2021
Leases – Refusal to refund bond – Dispute process
My client was the tenant of commercial premises on a month-to-month tenancy and has vacated the premises. The landlord is refusing to refund the bond due to there being $500 in unpaid outgoings. They will not produce evidence in support.
Does the tenant have to go to the Small Business Commissioner to get the bond back or do they need to go through VCAT?
Thank you for the question.
Before commencing proceedings in the Victorian Civil & Administrative Tribunal (VCAT) the parties must first attempt to resolve the dispute with the Small Business Commissioner. The VCAT website provides the following on their Retail and Commercial Leases page:
If your dispute concerns a retail tenancy and you are seeking an order that the other party pay you damages or you are seeking some other form of relief – other than an order in the form of an injunction – you must attach a certificate issued by the Small Business Commissioner under section 87 of the Retail Leases Act 2003 to your application before VCAT is able to hear your case. The certificate confirms that mediation or another appropriate form of alternative dispute resolution has failed or is unlikely to resolve the dispute.
The commercial benefit of disputing the sum should be considered.
Regards
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