Matthew Malady, 31, appeared in Warrnambool Magistrates Court on Friday for a bail application.

His lawyer Morgan Adams told the magistrate that the case against his client was weak.

Mr Adams said there was no evidence placing Mr Malady at the scene of the crime and that considering the weight of the spa, there must have been a large number of people involved in the alleged offending.

He said there were witnesses to the removal of the spa, none of whom pointed the finger at his client.

But magistrate Franz Holzer said the man was a daily user of methamphetamine and cannabis, and that if released on bail, Mr Malady was an unacceptable risk of re-offending.

The court heard the man had a history of breaching court orders and was recently jailed for burglary.

It is understood that the previous burglary also occurred at the deceased man's Moore Street property.

Mr Malady was refused bail and remanded in custody until May 8.

The court heard he and a 31-year-old woman were arrested on Wednesday after a search warrant was executed at a Banyan Street address.

It's understood a man died in late March who lived at an address in Warrnambool's Moore Street and previously worked with Mr Malady.

Then on Sunday, police received a report that the man's property had been broken into between the time of his death and last weekend.

Items had been removed from the address.

On Wednesday police executed a warrant at the Banyan Street address as they continued follow up inquiries.

It's alleged that a Holden Commodore and tools, including electric saws, sanders, nail guns and drills, were stolen from the Moore Street property.

A six-person spa was also removed from the address.

One witness allegedly told police that a Commodore sedan left Banyan Street towing a trailer that was carrying the large spa.

Another reported that a woman was attempting to sell the spa for $2000.

In the execution of the warrant at Banyan Street, police found the Moore Street property owner's identification papers as well as a small quantity of cannabis, 0.1grams of ice, prescription medication and firearm ammunition.

There were also papers and documents from the theft from a vehicle committed in November last year.

The 31-year-old woman, who cannot be named, was charged with handling stolen goods and failing to provide the code to open her mobile phone.

She was bailed to appear in the Warrnambool court on July 20.

Mr Malady is also charged with a burglary and theft of two bank cards at a Monash Avenue address in Warrnambool overnight on April 7.

It is alleged he used the bank cards to place over $6000 worth of bets and purchase $500 in lottery tickets.

Follow up inquiries are being made in relation to the subsequent use of those cards.

Anyone with information is requested to contact the Warrnambool police station or Crime Stoppers on 1800 333 000.

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