Bond Refund NZ: Complete Compliance Guide for Property Managers

Managing bond refunds correctly is one of the most common compliance pitfalls for New Zealand property managers. Under the Residential Tenancies Act 1986 (RTA), strict timeframes and procedures apply. This guide covers the bond refund process, the 10-day rule, what landlords can deduct, how to handle disputes, and when to escalate to the Tenancy Tribunal. All references are current as at May 2026.

What Is a Bond Refund?

A bond is a sum of money (usually up to four weeks’ rent) paid by the tenant at the start of a tenancy as security against breaches. Under s18(1)(b) of the RTA, the bond must be lodged with the Ministry of Business, Innovation and Employment (MBIE) – Tenancy Services within 23 working days of receipt. At the end of the tenancy, the bond is refunded to the tenant unless there are valid deductions.

The 10-Day Rule for Bond Refunds

Under s24(1) of the RTA, the landlord or property manager must apply to Tenancy Services for a bond refund within 10 working days after the tenancy ends. This is a strict deadline. If the landlord fails to apply within 10 days, the tenant can apply directly to Tenancy Services for the full refund.

How to Apply for a Bond Refund

Applications are made through the Tenancy Services online portal or by submitting a Bond Refund Form (form 3). Both landlord and tenant must sign the form unless one party is unreachable. The process:

1. Agree on deductions: Both parties sign the form indicating the agreed refund amount.
2. Submit to Tenancy Services: Online or by post. Tenancy Services processes the refund within 10 working days of receiving a correctly completed form.
3. Payment: The bond is paid directly to the tenant (or to the landlord if deductions are agreed).

If the tenant does not sign, the landlord can still apply by providing evidence of the tenancy end date and a statement of deductions. Tenancy Services will then notify the tenant and allow 10 working days for objection.

What Landlords Can Deduct from a Bond

Deductions are only lawful for:

• Rent arrears – unpaid rent up to the date the tenancy ended.
• Damage beyond fair wear and tear – e.g., broken windows, stained carpets, holes in walls. Fair wear and tear (e.g., minor scuffs, faded paint) cannot be deducted.
• Unpaid utilities – if the tenancy agreement requires the tenant to pay for electricity, gas, water, or internet and they have not.
• Cleaning costs – only if the property is left in a condition that is not reasonably clean and tidy, and the cost is reasonable.
• Locks and keys – if keys are not returned or locks need changing due to tenant fault.

All deductions must be supported by invoices, quotes, or receipts. Under reg 37 of the Residential Tenancies Regulations 1999, the landlord must provide the tenant with a written statement of deductions within 10 working days of the refund application.

How to Dispute Bond Deductions

If the tenant disagrees with proposed deductions, they can:

1. Refuse to sign the bond refund form.
2. Apply to Tenancy Services for mediation – a free service that helps both parties reach agreement.
3. Apply to the Tenancy Tribunal if mediation fails or is unsuitable.

The landlord can also initiate the dispute process by filing an application with the Tenancy Tribunal. The Tribunal has jurisdiction to determine bond disputes under s77 of the RTA. The application fee is currently $20.44 for claims up to $6,000, and $50 for claims over $6,000 (as at May 2026).

For frontline staff: if you are unsure about a deduction, check your organisation’s policy or ask ShiftScript. Staff can ask ShiftScript questions from uploaded policies at shiftscript.nz/portal/ – it’s like having a compliance officer on your team.

Tenancy Tribunal for Bond Disputes

The Tenancy Tribunal hears bond disputes when mediation fails. Key points:

• Time limit: Applications must be made within 12 months of the tenancy ending (s77(2)).
• Burden of proof: The party claiming a deduction (usually the landlord) must prove the loss on the balance of probabilities.
• Evidence: Provide ingoing and outgoing inspection reports, photos, invoices, and correspondence.
• Orders: The Tribunal can order the bond to be paid to the tenant, the landlord, or split between them. It can also award costs against a party who unreasonably refuses to settle.

Practical Tips for Property Managers

• Conduct a thorough ingoing inspection with photos and a written report signed by the tenant.
• Conduct an outgoing inspection within 3 days of the tenant vacating, ideally with the tenant present.
• Keep all receipts and invoices for cleaning, repairs, and replacements.
• Communicate deductions in writing within 10 working days of the tenancy ending.
• Use the Tenancy Services online portal for faster processing.

For more detailed guidance, refer to the Tenancy Services website or your organisation’s internal policies. ShiftScript can help your team find the right answer instantly from your uploaded documents.