The Bond Process

Harcourts Taupo Rentals always charge a bond equivalent to four weeks rent, this is paid by the tenant prior to the tenancy beginning and is lodged with Tenancy Services. At the end of the tenancy, the Landlord and the Tenant should reach an agreement if any of the bond is to be withheld to cover unpaid rent, additional cleaning or damages which are in excess of fair wear and tear. Money cannot simply be taken from the bond; an agreement must be reached and your Property Manager will negotiate this on your behalf and advise you along the way.

At the beginning of a Tenancy:

1. Landlords can charge up to 4 weeks rent as bond and we would always recommend charging the full amount.
2. Bonds must be lodged within 23 working days of receiving it and the tenant given a receipt.
3. The bond should be received before keys are given to the tenant.

During the tenancy:

1. If a tenant changes, a change of tenant form should be completed.
2. If the landlord or property manager changes, a change of landlord/agent form needs to also be completed.
3. If rent is increased, a landlord can ask for additional bond up the value of the rent increase multiplied by the number of weeks bond collected at the start of the tenancy. So, if the original bond was 4 weeks rent at $500 that is a $2,000 bond. If rent is increased to $530, an additional $30 x 4 = $120 can be requested. This may not seem like much, but if a tenancy started in 1980, the bond collected, if never increased to match rent increases would be virtually useless!

When a tenancy Ends:

1. Complete a final inspection at the property using your comprehensive ingoing property condition report as a reference. The tenant does not need to be and is not required to be in attendance. It is usually better to complete this inspection alone and in peace. If necessary, the tenant can meet you at the property afterwards to go over your assessment together.
2. If the tenant has no outstanding rent and has left the property reasonably clean and tidy with no damages which exceed fair wear and tear, a full refund is given. There is no actual timeframe required for this, but it should be done as promptly as possible.
3. The same people who are named on the bond need to sign the bond refund form and the signatures need to match with the original. Hence it is important to update any tenant changes during the tenancy to prevent delays at the end.
4. Tenants and landlords should only sign the refund form once they have reached and recorded any agreement for split payment. Part of the bond is refunded to the landlord to cover their costs and the rest is refunded to the tenant.
5. If an agreement can’t be reached you will need to go to Mediation or Tribunal.
6. Tenants are advised not to sign a blank bond form.