Tenancy agreement bond NZ: What it is and how it works
If you`re a tenant in New Zealand, you might have heard the term `tenancy agreement bond` or `bond` before. But what exactly is it, and how does it work? In this article, we`ll answer those questions and more.
What is a tenancy agreement bond?
A tenancy agreement bond is a sum of money that a landlord can request from a tenant at the beginning of a tenancy. The purpose of the bond is to protect the landlord against any damage or unpaid rent that the tenant may cause during their tenancy. The bond is held by the government`s Tenancy Services until the end of the tenancy.
How much is the bond?
The bond amount can vary, but it`s generally equivalent to four weeks` rent. So, if your weekly rent is $400, your bond would be $1,600.
How does the bond work?
Once the bond has been paid, the landlord is required to lodge it with the Tenancy Services within 23 working days. The Tenancy Services will then send a confirmation to the tenant and the landlord.
At the end of the tenancy, if there is no damage to the property or rent owing, the bond will be refunded to the tenant in full. If there is damage or rent owing, the landlord can claim some or all of the bond to cover the costs. However, the landlord must provide evidence of the damage or unpaid rent to the Tenancy Services. The tenant also has the right to dispute the landlord`s claim.
How can I ensure I get my bond back?
To ensure you get your bond back in full, it`s important to take good care of the property during your tenancy. This includes:
– Reporting any damage or maintenance issues to the landlord promptly
– Keeping the property clean and tidy
– Not causing any damage to the property
– Paying rent on time
– Following any other terms of the tenancy agreement
Before you move out, it`s a good idea to do a thorough clean and inspection of the property with the landlord. This will give you the opportunity to fix any issues before you leave and avoid any disputes over the bond.
What if I can`t afford the bond?
If you`re struggling to come up with the bond amount, you may be eligible for a bond loan from Work and Income New Zealand. A bond loan is an interest-free loan that you can use to pay your bond. You`ll need to repay the loan over a period of time.
In conclusion, the tenancy agreement bond is an important part of renting a property in New Zealand. It protects both the landlord and the tenant and ensures that the property is well looked after during the tenancy. By taking good care of the property and following the terms of the tenancy agreement, you can ensure that you get your bond back in full at the end of your tenancy.