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Residential Tenancies Act 1986

Tenancy agreements - Key money, bonds, and rents

18: General bonds

You could also call this:

"What is a general bond when renting a home?"

Illustration for Residential Tenancies Act 1986

You can be asked to pay a general bond when you rent a place. This is a payment of no more than 4 weeks' rent. The landlord can use this money if you do not meet your obligations. If the landlord increases the rent, you might need to pay more bond. The extra bond cannot be more than the increase in 4 weeks' rent. If the rent goes down, you can apply to get some of your bond back. If a landlord asks for too much bond, they are doing something wrong. They can get a fine or have to pay an infringement fee, which is listed in the Schedule 1B.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM95041.

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Part 2Tenancy agreements
Key money, bonds, and rents

18General bonds

  1. A landlord may require payment of a bond (a general bond) of no more than 4 weeks’ rent lawfully payable under the tenancy agreement relating to all of the tenant’s obligations.

  2. If the landlord lawfully increases the amount of the rent, the landlord may require payment of a further sum of general bond not exceeding the amount by which the rent payable for 4 weeks has been increased.

  3. If the landlord decreases the amount of the rent, the chief executive must, on application by the person who paid the general bond, refund the tenant the amount by which the total sum of general bond already paid exceeds the rent payable for 4 weeks following the decrease.

  4. A landlord who requires payment of a general bond that is greater than the amount referred to in subsection (1)—

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

      Notes
      • Section 18: replaced, on , by section 8 of the Residential Tenancies Amendment Act 2024 (2024 No 52).