Residential Tenancies Act 1986 — Sections 18–22

Rental bond rules in New Zealand

The Residential Tenancies Act sets strict rules on how much bond can be charged, how it must be lodged, and when it must be refunded. Here's everything landlords and tenants need to know.

📋 Residential Tenancies Act 1986, Sections 18–22 — In force as at 1 December 2025

Maximum bond amount (Section 18)

4 weeks rent — that's the maximum

A landlord cannot charge more than 4 weeks rent as a bond. This applies regardless of how the rent is paid or what the tenancy agreement says. Any provision requiring a higher bond is void and unenforceable.

Example: if rent is $600 per week, the maximum bond is $2,400.

No other upfront payments

A landlord cannot require more than 2 weeks rent in advance (or 1 week for weekly tenancies) in addition to the bond. Key money, letting fees, and similar charges are prohibited.

Lodging the bond (Section 19)

23 working days to lodge

The landlord must lodge the bond with Tenancy Services within 23 working days of receiving it. The bond must be lodged online at tenancy.govt.nz or at a Tenancy Services office.

Failure to lodge the bond is a breach of the Act and can result in a fine of up to $1,000.

Bond refund at end of tenancy (Section 22)

How bond refunds work

At the end of the tenancy, the bond is refunded to the tenant unless the landlord makes a claim against it. Landlords can claim for:

  • Unpaid rent
  • Damage beyond fair wear and tear
  • Reasonable cleaning costs if the property is left dirty

The landlord must apply to Tenancy Services within 10 working days of the tenancy ending if they want to make a claim. After that, the bond is automatically refunded to the tenant.

Fair wear and tear

Landlords cannot claim for fair wear and tear — the normal deterioration of a property through ordinary use. A worn carpet after 5 years of tenancy is fair wear and tear. A carpet stained with pet urine is not.

Tenant tip: Always take dated photos of the property at the start of the tenancy. This is your best protection against unfair bond deductions.
Source: Residential Tenancies Act 1986, Sections 18–22. Official text at legislation.govt.nz. This is general information, not legal advice.

Frequently asked questions

Can a landlord charge a pet bond on top of the regular bond?
No. The maximum bond is 4 weeks rent regardless of whether there are pets. A pet bond on top of the standard bond would exceed the maximum and is not enforceable under the RTA.
What if the landlord doesn't lodge the bond?
The landlord is in breach of the Act and can be fined up to $1,000. The tenant can also apply to the Tenancy Tribunal for an order requiring the landlord to lodge the bond.
How long does a bond refund take?
If both parties agree on the refund amount, Tenancy Services will process the refund within a few working days of receiving the application. If there is a dispute, it goes to the Tenancy Tribunal which may take several weeks.
Can a landlord use the bond to cover rent during the notice period?
No. Bond cannot be used as rent. The tenant must continue to pay rent until the tenancy ends. The landlord can claim unpaid rent from the bond at the end of the tenancy, but cannot treat the bond as pre-payment of rent.

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