Bond Refund NZ: How to Handle the Bond When a Tenancy Ends

The bond refund is one of the most common flashpoints when a tenancy ends. Tenants want their money back quickly; landlords want to make sure the property is returned in acceptable condition. Getting this right means following the process through Bond Hub and knowing what you can and can't claim against the bond.

How the Bond System Works

All residential tenancy bonds in New Zealand are held by Tenancy Services through the Residential Tenancies Trust Account. Landlords are legally required to lodge any bond they receive within 23 working days. The standard bond is capped at 4 weeks' rent. Since 1 December 2025, landlords can also charge a pet bond of up to 2 weeks' rent where a pet is permitted.

When the tenancy ends, the bond doesn't automatically return to the tenant or release to the landlord. Someone needs to submit a refund application through Bond Hub — the online portal operated by Tenancy Services.

The Final Inspection

Before any bond claim, conduct a thorough final inspection. This should ideally happen with the tenant present so both parties can agree on the property's condition.

Inspections must be conducted between 8:00 AM and 7:00 PM. Compare the property's current state against the condition recorded at the start of the tenancy (your ingoing inspection report and photos). Normal wear and tear isn't claimable — you're looking for damage beyond what's expected from ordinary use.

Document everything with dated photographs. If you're planning to claim part of the bond for damage, you'll need this evidence if the tenant disputes the claim.

Filing the Bond Refund Through Bond Hub

The landlord submits the bond refund request through Bond Hub. The request specifies how the bond should be split — full refund to tenant, full payment to landlord, or a specified split between the two — and the tenants review and respond to it.

If both parties agree: The landlord submits the refund request through Bond Hub. Every tenant named on the bond must respond and agree before the refund is processed. Tenants have 12 working days from notification to respond; no response does not trigger an automatic refund.

If you can't agree: Discuss the proposed split first. If the disagreement remains, either party can apply to the Tenancy Tribunal. If a tenant has not received a refund request from the landlord, they can contact Tenancy Services for help submitting an application.

What You Can Claim Against the Bond

You can make a bond claim for:

• Damage beyond normal wear and tear — holes in walls, stained carpets (beyond normal use), broken fixtures, damaged appliances
• Unpaid rent — any arrears at the end of the tenancy
• Cleaning costs — but only if the property was returned in a significantly worse state than it was provided (not routine cleaning between tenancies)
• Abandoned goods removal — if the tenant leaves belongings and disposal costs are incurred

You cannot claim for:

• Normal wear and tear — faded paint, worn carpet in high-traffic areas, minor scuff marks
• Pre-existing damage — anything that was already there at the start of the tenancy
• Improvements or upgrades — you can't use the bond to fund property improvements

Abandoned Property After the Tenancy Ends

If the tenant leaves goods behind, you can't just throw them away. The RTA sets out a specific process:

1. Assess value vs costs. Compare the market value of the abandoned items against the reasonable costs of transport, storage, and any decontamination (including methamphetamine testing if relevant — contamination above 15 µg/100cm² triggers remediation obligations).

2. Low-value goods. If storage and disposal costs exceed the items' value, you can dispose of them as you see fit.

3. Higher-value goods. If the items are worth more than the handling costs, store them securely for at least 35 calendar days. If unclaimed, sell them at a reasonable price or auction. Apply the proceeds to cover your storage and sale costs, with any surplus going to Tenancy Services.

4. Personal documents. Passports, birth certificates, financial records, and official mail can never be sold or destroyed. Hold them for 35 days, then hand them to the local police station.

Timing the Bond Refund With the Termination

The bond process runs separately from the termination notice process. You can start the bond refund application as soon as the tenancy has ended and the final inspection is complete. Don't wait weeks to file — delays create uncertainty for both parties and can escalate into disputes.

If you're ending the tenancy for sale with vacant possession, coordinate the bond refund timeline with your settlement date. The bond refund itself doesn't hold up settlement, but unresolved bond disputes can create friction that affects the handover.

Our Ending a Tenancy in New Zealand guide covers the end-to-end process from notice through vacant possession and bond refund, including a final inspection checklist and abandoned property flowchart.

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