What is a bond and what is it for?
A bond is a payment made by tenants at the beginning of a tenancy that is held by an unbiased third-party (Tenancy Services) for the duration of the tenancy.
- The purpose of a bond is to provide a contingency fund in case there is outstanding rent, damages, or claims in relation to the tenancy.
- Maximum bond is 4 weeks’ rent.
- In a boarding house, if the bond is one week’s rent or less the landlord is not required to formally lodge the bond but must provide a receipt.
- A standard bond must be lodged by the landlord/property manager within 23 working days of payment.
Lodging a Bond:
- Tenant Responsibilities:
- The whole bond for a joint lease should be lodged at the same time, not in separate parts. Use the flat bank account and make a single payment – this provides a reliable transaction record and will prevent delays in the bond being lodged.
- After your bond is lodged online or via your landlord, you should be provided with a receipt of the transaction. If you don’t receive a receipt, ask OUSA Student Support for advice. It may take up to six weeks for the tenants to receive a notification from Tenancy Services confirming that their bond is lodged.
- It is your responsibility to look after the property and keep it clean and tidy, so inform the landlord immediately of any issues with the property (email is best as this provides a written record of contact!), and make sure you update your details with the Tenancy Services if they change. Take photos when you move in and out, so you have a record.
- Landlord Responsibilities:
- Cannot charge more than 4 weeks’ rent in bond.
- Need to advise the tenants how they would like them to pay the bond.
- Ensure all tenants pay their portion of the bond.
- If the landlord is arranging the bond lodgement, they need to provide the tenants with a receipt. If the tenants lodge their bond via Tenancy Services’ online form, follow up with Tenancy Services to check their contact details and bond has been lodged correctly.
- Landlords need to regularly inspect the property, attend to any property maintenance in a timely manner.
- If tenants pay their bond to the landlord, it needs to be lodged with Tenancy Services within 23 working days (unless the bond falls under the boarding house tenancy exception).
Bond Refunds:
Before you move out, clean everything to the best of your ability. Once you have cleaned, take photos of everything! This will be really helpful in case of an unexpected claim on your bond. At the exit inspection, agree on the amount to be refunded with the landlord and then sign a completed bond refund form. If in doubt: don’t sign. If you cannot get hold of the landlord or there is a dispute about the refund amount, talk to OUSA Student Support. Once the amount is agreed upon and the form is signed, the landlord or you send the refund form to Tenancy Services. If there are any issues, contact OUSA Student Support for advice. Please: don’t sign a blank bond refund form!
- Common Bond Issues:
- Non-lodgement: If a bond is not lodged with Tenancy Servies or incorrectly lodged by the landlord it can be very hard to sort it out at the end of the tenancy. If you are unsure whether or not your bond has been lodged, you can always call 0800 TENANCY to confirm.
- Individual payments for joint tenancies: this can cause problems for yourselves, the landlord and Tenancy Services when it comes to lodging, which can really complicate things at the end of the tenancy.
- Asking for too much money: Remember the maximum amount for the bond is 4 weeks’ rent.
- Giving the landlord any other form of financial security: The landlord cannot take any form of security in relation to the property other than the bond. The only other form of financial security a landlord may ask for is a guarantor’s agreement.
- Professional cleaning and other false claims: Legally, you only have to leave your flat in a reasonably clean and tidy state, which means your landlord cannot charge you for professional cleaning (unless you have done something to genuinely warrant it). Remember to take photos at the beginning and end of your tenancy and report any damages during the tenancy in a timely fashion.
- Changing tenants: Changing tenants can cause problems with the bond, particularly if the bond is not transferred using the Change of Tenancy form and lodged with the Tenancy Services. To get help with this, contact OUSA Student Support.
- Not lodging the bond under all tenants’ names: It is important that the bond is lodged under all names so that it can be divided evenly and returned to the correct people when the tenancy ends.
All current tenancy processes are gradually transitioning away from being paper based into a digital format. For more details about the upcoming changes, please visit the Tenancy Services website: tenancy.govt.nz/about-tenancy-services/tenancy-bond-services-transformation.