Plain language law

New Zealand law explained for everyone

Residential Tenancies Act 1986

Tenancy agreements - Key money, bonds, and rents

18A: Landlord must not require security other than permitted bond

You could also call this:

“Landlords can only ask for a bond and nothing else to make sure tenants pay rent or follow the rules.”

You are not allowed to give your landlord any form of security except for a bond. Security means anything that could be used to guarantee payment or performance related to your tenancy. This includes things like property, the ability to use your rights as a tenant, or access to your money or credit.

Your landlord can’t ask you for any kind of security other than the bond allowed by section 18. They can’t ask for things like your credit card details or the power to take money from your account.

If your landlord breaks this rule, they are doing something illegal. They might have to pay a fine. The exact amount of the fine is listed in Schedule 1B of this law.

The only exceptions to this rule are the bond (which is allowed under section 18) and any guarantees. These are not considered ‘security’ under this law.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM3295058.

Topics:
Housing and property > Renting
Crime and justice > Criminal law
Previous

18: Bonds to be no more than 4 weeks' rent, or

“The landlord can only ask for a bond that's equal to 4 weeks' rent or less.”

Next

19: Duties of landlord on receipt of bond, or

“When a landlord receives money for a bond, they must give a receipt and send the money to the government quickly.”

Part 2 Tenancy agreements
Key money, bonds, and rents

18ALandlord must not require security other than permitted bond

  1. A landlord may not require a tenant to provide the landlord with any form of security to secure any payment or performance arising out of, or in connection with, the tenancy.

  2. A landlord who contravenes this section—

  3. commits an unlawful act; and
    1. commits an infringement offence and is liable to a fine or an infringement fee specified in Schedule 1B.

      1. In this section, security—

      2. means—
        1. any interest in real or personal property; or
          1. the power to exercise a right of the tenant, including the authority to cause an account to be debited (for example, without limitation, by reference to a card, such as the imprint of a credit card or a PIN number) or the means to obtain money from a third party; but
          2. does not include—
            1. a payment by way of bond that is permitted under section 18; or
              1. any guarantee.

              Notes
              • Section 18A: inserted, on , by section 15 of the Residential Tenancies Amendment Act 2010 (2010 No 95).
              • Section 18A(2): replaced, on , by section 15 of the Residential Tenancies Amendment Act 2020 (2020 No 59).