They are a litigious landlord to some of Victoria's most vulnerable people. Now Victoria's Office of Housing is under investigation for pursuing tenants over minor maintenance costs.

Victorian Ombudsman Deborah Glass has launched an "own motion" investigation into the office, following complaints by public housing tenants and "wider community concern".

The Ombudsman, who says the Office of Housing is the second-biggest litigant in tenancy disputes at the Victorian Civil and Administrative Tribunal (VCAT), will examine whether maintenance charges are being imposed without factoring in fair "wear and tear".

The investigation will cover the Office of Housing's policy and procedures for dealing with maintenance debts when tenants vacate its properties and the use of VCAT to arbitrate these matters.

Victorian Public Tenants Association spokesman Raoul Wainwright said tenants faced "exorbitant" charges for minor matters. Examples, he said, included  $250 for removing some rags and a small table and $70 for steam cleaning a room.

"We have seen cases where tenants are charged for eight hours of painting when the job has taken only a few minutes. And, as the Family Violence Commission report noted, tenants are too often charged for damage they did not cause," he said.

"In many cases the tenant doesn't even know the issue has gone to VCAT and the matter has been decided in their absence."

The association is concerned people are being left homeless because of maintenance debts they are unable to clear and wants subcontracting of maintenance to form part of the investigation.

"Tenants tell us they can go on the internet and get lower prices but they aren't given the chance," he said.

VCAT's most recent annual report showed the Director of Housing made 12,936 applications in the tribunal in 2014/15. The only group to exceed that figure was landlords represented by real estate agents or property managers.

The Department of Health and Human Services said it would work with the Ombudsman to support the investigation.

Housing Minister Martin Foley welcomed the inquiry, saying public housing tenants should have the same rights as any other renter.

Tenants Union of Victoria policy officer Yaelle​ Caspi​ said maintenance claims against tenants was a long-standing issue that had been repeatedly raised with the department.

She said it appeared to be common for the office to apportion costs to vulnerable tenants that did not stand up to legal scrutiny when contested.

"This practice also contributes to housing insecurity and homelessness," she said. "Once a tenant has a housing debt they are no longer able to access public housing."

The public housing system is under immense pressure with a waiting list that has exceeded 32,000.

By Benjamin preiss, The Age

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