How much can a landlord charge for a rental bond under New Zealand law?

The landlord does not have to ask for a bond, but can legally charge up to the equivalent of 4 weeks' rent as bond. The landlord will be able to claim some or all of the bond money at the end of the tenancy if (i) there is damage done by the tenant, except for normal wear and tear; (ii) rent is left unpaid; (iii) the premises is left dirty or property is left behind; (iv) the tenant fails to fulfil any other legal obligation and the landlord suffers some loss as a result.

What is the procedure for paying and lodging the bond?

The tenant pays the bond to the landlord, who must lodge it with the Tenancy Services Centre within 23 working days. A Tenancy Services Bond Lodgement form, completed and signed by both landlord and tenant, must be sent with the bond cheque. Tenancy Services Centre will send both parties a confirmation letter and a Bond Refund form, and will hold the bond money until the end of the tenancy, when either party may apply for its refund.

How is the bond refunded?

The Bond Refund form should be signed by both parties, after they have inspected the property, and sent to Tenancy Services Centre. If there is some damage or other claim that the tenant agrees to have taken out of the bond, the landlord's cost of repairs or other claim will be paid from the bond and the tenant will be paid the balance. If the parties cannot agree on how the bond should be paid out, the landlord should make an application to the Tenancy Tribunal for the amount claimed to be deducted from the bond, and a mediator is then assigned to help the parties work it out.



The foregoing summary is provided for information purposes only and is not to be considered legal or business advice. The information may not be complete, accurate or applicable for any particular situation and should not be relied upon.