We've got the tea on bonds - what you need to know and who holds your money until you move out.
If you’re getting ready to move into a flat and everyone keeps talking about “paying a bond,” this article is here to help!
So… What is a bond?
A bond is pūtea your landlord can ask you (and your flat mates) to pay at the start of your tenancy.
In Aotearoa New Zealand, it’s usually 3-4 weeks of your rent, with 4 weeks being the maximum.
Hei tauira:
You and your three mates are moving into a 4-bedroom whare. Rent: $800 per week.
Your tenancy agreement says that the bond is $3200. That’s four weeks rent: $800 x 4
In most cases, you would split this amongst your flat mates evenly, so everyone shares the responsibility.
So, each flat mate would pay $800 towards the bond.
HOT TIP: Have a kōrero with your flat mates BEFORE paying the bond about how you’ll handle any potential damage.
Hei tauira: One of our kaimahi at Whai Rawa had a simple rule with their flat:
If you break it, your part of the bond pays for it.
This avoids drama later and saves you from paying for someone else’s silly mistakes.
Why do we even need a bond?
A bond is held in the case of unpaid rent, damage to the property, or any other claims relating to your whare while you live there.
But here is some important information:
Your property manager does not keep your bond. It’s actually held safely by Tenancy Services – a Government agency.
Your landlord must pay your bond to Tenancy Services within 23 working days, and it stays there until you move out.
The good news?
Paying a bond can feel like a chunk of your pūtea disappearing… BUT if you:
There is no reason why you shouldn’t get all of your bond back at the end of your tenancy.
More information on bonds and your rights while flatting here: Tenancy Services
The information contained in this document is intended for general guidance and information only and is not personalised to you. It does not take into account your particular financial situation or goals.
The links shared and associated content on this website have not been vetted or otherwise approved by Whai Rawa Fund Limited and neither Whai Rawa Fund Limited, nor Te Rūnanga o Ngāi Tahu endorse the linked material or its provider in any way. The information provided by these links and third-party providers is not personalised to you and your situation. Before making any investment decision, or taking any action or not, you should refer to the Product Disclosure Statement and / or consult a licensed financial advice provider.
Sign up now and get them delivered right to your inbox – piping hot and no delivery fee!