In tenancy agreements, a bond is paid by the tenant as a guarantee that they will meet their obligations under the agreement (s 2 RTA).
If a tenant pays their rent, does not damage the property (or remedies any damage), they should expect to get the bond refunded at the end of the tenancy. If, however, there is any unpaid rent, damage to the property or any other claims relating to the tenancy, the landlord can request reimbursement out of the bond money.
The bond cannot be used to pay rent while the tenancy is ongoing.
How much bond has to be paid?
Landlords can ask for up to the equivalent of four weeks’ rent to be paid up front as a bond at the beginning of the tenancy. (s 18(1) RTA) This money is held by Tenancy Services until the end of the tenancy.
The landlord can decide to ask for less than four weeks’ rent as a bond, but they cannot ask for more than four weeks’ rent, even if they call it something else, eg, a separate "pet bond" is not currently allowed. However, changes to the Residential Tenancies Act are expected to come into effect in 2025 that will make it easier for tenants to have pets and will allow pet bonds to be charged.
Find out more about recent changes to the Residential Tenancies Act
The bond amount can be increased if the rent goes up, and refunded if it goes down, so that it remains equivalent to four weeks’ rent. Any additional bond paid needs to be receipted and lodged with the Bond Centre.
Note that there are separate bond rules that relate to boarding houses.
Lodging the bond
Bonds are lodged with the Bond Centre, which is part of Tenancy Services. This ensures that the bond is kept safe and does not become the landlord's by default. It means that any disputes about whether the bond should be released to the tenant, or kept by the landlord, are dealt with fairly and lawfully.
Bonds must be lodged online. They can no longer be lodged by email or posting paper forms.
The tenant can either complete the bond lodgement form and pay the bond online themselves, or they can pay the bond to the landlord who must then lodge the bond online within 23 working days. If the tenant pays the bond to the landlord, the landlord is legally required to provide the tenant with a receipt (s 19 RTA).
If a tenant needs help with lodging a bond online, they can call Tenancy Services (on 0800 836 262). Tenancy Services cannot lodge the bond over the phone, but they can talk the tenant through how to use the online form. Tenants can also get help from their local Citizens Advice Bureau.
Once the bond is lodged online, both the landlord and tenant will receive a confirmation that the bond has been successfully lodged. Bond lodgements can take up to 10 working days to process.
It is unlawful for a landlord to charge too much bond or to try to avoid paying the bond to the Bond Centre. The Tenancy Tribunal may make a landlord pay up to $1500 exemplary damages (as of March 2025) if there is proof that they intended to do this (s 19(2) RTA and Schedule 1A RTA).
Unfortunately, a large number of tenant applications to the Tenancy Tribunal are about landlords not lodging or not refunding the bond.
Statistics about disputes resolution from the Tenancy Tribunal
Last reviewed on 20 Mar 2025
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