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Disclaimer: Educational purposes only. Not legal advice. Consult a qualified NZ legal practitioner for your specific circumstances.

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tenancy

How much bond can a landlord legally charge?

Key Takeaway

In New Zealand, landlords can legally charge a bond of no more than the equivalent of four weeks' rent. The bond must be paid to Tenancy Services within 23 working days of receipt. Landlords are also required to provide a written receipt for the bond amount received.

Maximum Residential Tenancy Bond in New Zealand

When a tenant enters into a residential tenancy agreement, a landlord may require a bond to be paid. A bond is a sum of money paid by a tenant to a landlord or the chief executive as security for the performance of the tenant's obligations under the tenancy agreement [Source: Residential Tenancies Act 1986, s 2(1)]. The chief executive refers to the chief executive of the department responsible for administering the Residential Tenancies Act 1986, which is currently the Ministry of Business, Innovation and Employment (MBIE) through Tenancy Services.

Legal Limit on Bond Amount

New Zealand law specifies a maximum amount that can be charged for a residential tenancy bond. A landlord cannot require a tenant to pay a bond that is more than the equivalent of four weeks' rent [Source: Residential Tenancies Act 1986, s 18(2)].

Receipt and Lodgement of Bond Money

Upon receiving bond money from a tenant, the landlord has specific obligations:

  • Provide a Receipt: The landlord must immediately give the tenant a written receipt for any bond money received. This receipt must specify the date the money was received, the amount, the address of the premises, and the names of the landlord and tenant [Source: Residential Tenancies Act 1986, s 19(1), s 19(2)].
  • Lodgement with Tenancy Services: All bond money received by a landlord must be paid to the chief executive (via Tenancy Services) within 23 working days of its receipt [Source: Residential Tenancies Act 1986, s 18(3)]. The bond money must be accompanied by a completed bond lodgement form, signed by both the landlord and the tenant [Source: Residential Tenancies Act 1986, s 20(1)].

Consequences of Non-Compliance

Failure by a landlord to comply with the bond lodgement requirements is considered an unlawful act under the Residential Tenancies Act 1986 [Source: Residential Tenancies Act 1986, s 137(1)(c)]. If a landlord fails to pay the bond money to the chief executive within the specified timeframe, the Tenancy Tribunal may order the landlord to pay a pecuniary penalty. For failing to pay the bond to the chief executive, the maximum pecuniary penalty is up to $1,000 [Source: Residential Tenancies Act 1986, Schedule 1A, Part 1, clause 3].

When to Seek Independent Legal Advice

Information provided is for general understanding of the law. Complex tenancy situations, disputes, or specific questions regarding a bond may require detailed interpretation of the law and application to individual circumstances. Further information or assistance can be sought from official bodies such as Tenancy Services or Community Law Centres.

Key Resources