Water damage in a rental property creates a stressful situation for everyone involved. Tenants worry about their belongings and living conditions. Landlords worry about property damage and repair costs. And when responsibilities aren’t clear, disputes can escalate quickly.
This guide covers tenant and landlord water damage responsibilities in Melbourne, including your obligations under Victorian law, who pays for what, and the steps both parties should take to minimise damage and protect their interests.
A note on terms: Victorian law and Consumer Affairs Victoria now call landlords rental providers and tenants renters. This guide uses both sets of terms.
Quick Answers: Water Damage in a Melbourne Rental
Who pays for water damage in a rental property?
It depends on what caused the damage and whose property was damaged. The landlord pays to repair the building (carpet and flooring, walls and ceilings, plumbing, mould remediation in the structure, and professional drying), usually through their building or landlord insurance. The tenant pays for their own belongings, normally through their own contents insurance. If the tenant caused the damage, for example by leaving a tap running or not reporting a known leak, the tenant may be liable for the repair costs. If the landlord failed to fix a reported problem that then caused the flooding, the tenant may be entitled to compensation. See what water damage restoration costs for what drives the repair bill.
Can a tenant claim compensation for belongings damaged by water?
Yes, in one of two ways:
- Through the tenant’s own contents insurance. This is the usual route. Contents insurance covers furniture, electronics, clothing and other personal items. The landlord’s insurance generally does not cover a tenant’s belongings, even when a building fault such as a burst pipe caused the damage. Our guide on how to file a flood damage insurance claim explains how a contents claim works.
- From the landlord, when the landlord was at fault. If the landlord ignored a reported problem, such as a plumbing fault, that later flooded the property, the tenant may be entitled to compensation for damaged belongings, temporary accommodation costs and a rent reduction. If the two sides cannot agree, Rental Dispute Resolution Victoria can help, and VCAT (the Victorian Civil and Administrative Tribunal) can decide the claim.
Either way, keep photographs, receipts and a written record of when you reported the problem.
Is water damage an urgent repair in Victoria?
Yes. Consumer Affairs Victoria lists a burst water service, a serious roof leak, and flooding or serious flood damage as urgent repairs, and rental providers must make urgent repairs immediately. If the renter has notified the rental provider or property manager and there has been no prompt response, the renter can arrange the repair themselves, as long as it costs $2,500 or less. They then give the rental provider written notice asking to be repaid, within 7 days of the repair being made.
What should a tenant do first?
- Make it safe. Turn off electricity at the switchboard if water is near power points.
- Stop the water if you can. Turn off the water mains for a burst pipe.
- Tell the landlord or property manager straight away. Call, don’t just email.
- Record and protect. Photograph and video the damage, then move your belongings out of the water.
The full checklists for tenants and landlords are further down this page.
Should the landlord call a restoration company?
For anything beyond a minor leak, yes. Professional water extraction, drying and daily moisture monitoring prevent mould and secondary damage, and the restorer’s report (photographs, moisture readings and a scope of works) supports the landlord’s insurance claim. Total Flood Damage Melbourne responds 24/7 across Melbourne, within 2 hours. Call 0448 888 165.
Tenant Responsibilities After Water Damage
As a tenant, you have specific obligations when water damage occurs in your rental property. Fulfilling these promptly protects both you and the property.
Report the Damage Immediately
Under the Residential Tenancies Act 1997 (Vic), tenants must notify the landlord or property manager of any damage to the property as soon as practicable. For water damage, this means contacting them immediately — not the next day, not after the weekend.
A delay in reporting can worsen the damage significantly, and if the landlord can demonstrate that your delay increased repair costs, you may be held partially responsible.
Take Reasonable Steps to Mitigate Damage
While you’re not expected to carry out repairs yourself, you are expected to take reasonable steps to prevent the damage from worsening. This includes:
- Turning off the water supply if a pipe has burst (know where your mains stopcock is)
- Moving your belongings away from the affected area
- Mopping up surface water if it’s safe to do so
- Opening windows to improve ventilation
- Placing towels or containers to catch ongoing drips
Document everything with photographs and video as you go — this is essential for any insurance claim.
What Tenants Should NOT Do
- Don’t attempt structural repairs — this is the landlord’s responsibility and any DIY work could make you liable for further damage
- Don’t hire tradespeople without the landlord’s authorisation (unless it’s a genuine emergency and you can’t reach them — more on this below)
- Don’t dispose of damaged materials before they’ve been inspected and documented
- Don’t ignore the problem hoping it will dry out on its own — mould can start growing within 24–48 hours
Landlord Responsibilities After Water Damage
Victorian rental law places clear obligations on landlords when it comes to property maintenance and urgent repairs.
Urgent Repairs Must Be Made Immediately
Under the Residential Tenancies Act 1997, water damage from a burst water service or flooding is classified as an urgent repair. Consumer Affairs Victoria states that rental providers must make urgent repairs immediately.
Urgent repairs specifically include:
- A burst water service
- An appliance, fitting or fixture that is not working and causes a lot of water to be wasted
- A serious roof leak
- A gas leak or dangerous electrical fault
- Flooding or serious flood damage
- Any fault or damage that makes the property unsafe or insecure
If the renter has notified the rental provider or property manager and there has been no prompt response, the renter can arrange urgent repairs costing up to $2,500 and seek reimbursement by giving the rental provider written notice within 7 days of the repairs being made.
Arrange Professional Restoration
For any significant water damage, landlords should engage a professional water damage restoration company. Attempting to manage flood cleanup without professional equipment and expertise often leads to incomplete drying, mould growth, and far more expensive repairs down the track.
Professional restoration provides:
- Industrial water extraction and drying
- Moisture monitoring to verify complete drying
- Mould prevention treatment
- Detailed documentation for insurance claims
Our residential flood restoration service covers the process from emergency response through extraction, drying and decontamination to dry-standard sign-off.
Maintain Insurance Coverage
Landlord insurance (building insurance) covers the structure of the property, including walls, floors, ceilings, and fixtures. This is separate from a tenant’s contents insurance, which covers personal belongings.
Landlords should ensure their policy covers flood and water damage — not all policies include storm or flood cover by default. Review your policy annually and after any claim.
Who Pays for Water Damage in a Rental?
The question of who pays depends on the cause of the damage and whose property is affected.
Building and Structural Damage
The landlord is responsible for repairing damage to the property itself. This includes:
- Carpet and flooring replacement
- Wall and ceiling repairs
- Plumbing and pipe repairs
- Mould remediation in the building structure
- Professional drying and restoration
These costs are typically covered by the landlord’s building insurance policy.
Tenant’s Belongings
The landlord is generally not responsible for damage to the tenant’s personal belongings — even if the water damage was caused by a building fault (such as a burst pipe). Tenants should have their own contents insurance to cover furniture, electronics, clothing, and other personal items.
Contents insurance for renters is affordable (typically $15–$30 per month) and is strongly recommended for every tenant.
When the Tenant Is at Fault
If the tenant caused the water damage — for example, by leaving a tap running, blocking a drain, or failing to report a known leak — the tenant may be liable for repair costs. The landlord can seek compensation through VCAT (Victorian Civil and Administrative Tribunal) if an agreement can’t be reached.
When the Landlord Is at Fault
If the landlord failed to maintain the property (for example, ignoring a reported plumbing issue that subsequently caused flooding), the tenant may be entitled to compensation for damaged belongings, temporary accommodation costs, and rent reduction. Again, VCAT can adjudicate if needed.
Bond Implications
Water damage and bond disputes are common. Here are the key points:
- Normal wear and tear is not the tenant’s responsibility — discolouration from age or general use is expected
- Damage caused by the tenant (or their guests) can be deducted from the bond
- Damage from building faults (burst pipes, roof leaks) cannot be deducted from the bond
- Photographic evidence is critical — both parties should document the property’s condition at the start and end of the lease, and immediately after any water damage event
- If there’s a dispute, the Residential Tenancies Bond Authority (RTBA) holds the bond until VCAT makes a determination
When Body Corporate Is Involved
For apartments, units, and townhouses on a strata plan, water damage responsibilities can become more complex.
Common Property vs Lot Property
- Common property (shared walls, roof, external plumbing, building structure) is the body corporate’s (owners corporation’s) responsibility
- Lot property (internal fixtures, flooring, internal plumbing within the unit) is the lot owner’s responsibility
Water Damage From Another Unit
If water damage originates from another unit (for example, a burst pipe in the apartment above), the affected owner should:
- Contact body corporate management immediately
- Lodge a claim with the body corporate’s insurance
- Document all damage thoroughly
- Engage professional restoration — the body corporate should cover costs for common property damage
Tenants affected by water from another unit should report to their landlord and property manager, who will coordinate with the body corporate.
Step-by-Step Guide for Tenants
- Ensure safety first — turn off electricity at the switchboard if water is near power outlets; avoid standing water
- Identify and stop the source if possible — turn off the water mains for burst pipes
- Contact your landlord or property manager immediately — call, don’t just email
- Document everything — photograph and video all damage, including timestamps
- Mitigate further damage — move belongings, mop up water, improve ventilation
- Do not attempt repairs — wait for the landlord to arrange professional restoration
- Contact your contents insurer if personal belongings are damaged
- Keep records — save all communications, receipts, and the timeline of events
- If there is no prompt response — arrange urgent repairs costing up to $2,500, then give written notice asking to be repaid within 7 days of the repair
Step-by-Step Guide for Landlords
- Respond immediately — Victorian law requires urgent repairs to be made immediately
- Contact a professional restoration company — for anything beyond a minor leak, engage a professional water damage restoration team
- Notify your insurer — lodge a claim as soon as possible; our insurance claim guide walks you through the process
- Communicate with your tenant — keep them informed about repair timelines and any temporary arrangements
- Arrange temporary accommodation if necessary — if the property is uninhabitable, the tenant may be entitled to a rent reduction or temporary relocation assistance
- Document the damage — professional restoration companies provide detailed reports that support insurance claims
- Follow up — ensure all drying and restoration is verified complete before considering the matter resolved
Protect Your Rental Property — Call Total Flood Damage Melbourne
Whether you’re a tenant dealing with a flooded rental or a landlord managing a water damage claim, professional restoration makes the process faster, safer, and more straightforward.
Total Flood Damage Melbourne provides 24/7 emergency water damage restoration across Melbourne and all of Victoria. We’re IICRC-certified, work with all major insurers, and provide the detailed documentation both landlords and tenants need for claims and dispute resolution.
Call us now on 0448 888 165 or contact us online for immediate assistance.