Bond Top-Up After Rent Increase NZ: Rules, Limits and the Bond Hub

When You Can Request a Bond Top-Up

Under Section 18 of the Residential Tenancies Act 1986, the total bond held for a tenancy cannot exceed 4 weeks' rent at the current rate. When you increase the rent, the maximum bond increases too — and you can ask the tenant for the difference.

Example: rent goes from $500/week to $550/week. Previous bond held: $2,000 (4 × $500). New maximum bond: $2,200 (4 × $550). You can request a top-up of up to $200.

The top-up is not automatic. You need to ask the tenant in writing, and they need to pay it. If the original bond was less than 4 weeks' rent (not all landlords take the maximum), the calculation starts from whatever amount is currently lodged.

The 23-Working-Day Lodgement Deadline

Once the tenant pays the bond top-up, you must lodge it with MBIE via the Bond Hub within 23 working days of receiving the payment. This is the same deadline that applies to initial bond lodgements.

Working days are Monday to Friday, excluding public holidays and provincial anniversary days. If the tenant pays the top-up just before Easter or the Christmas–New Year block, the deadline extends to account for those non-working days.

Lodge the top-up through the MBIE Bond Hub portal at tenancy.govt.nz. You will need the existing bond number to link the top-up to the correct tenancy.

Advance Rent: The 2-Week Limit

Separately from the bond, Section 23 limits how much rent in advance a landlord can require: no more than 2 weeks' rent. You cannot require the next payment until the previously paid advance period has expired.

After a rent increase, this limit applies to the new rate. If the tenant currently pays fortnightly, the maximum you can collect at any one time is 2 weeks at the new weekly rate.

The advance rent limit and the bond are independent caps — they do not interact. The bond is security lodged with MBIE; advance rent is the next payment period's rent held by the landlord.

Common Mistakes

Demanding too much bond: the 4-week cap is absolute. If you already hold the maximum and the rent has not increased, there is no basis for a top-up. Demanding bond in excess of 4 weeks' rent is an unlawful act under Section 18(4), with exemplary damages up to $1,500.

Missing the lodgement deadline: if you receive the top-up payment but do not lodge it with MBIE within 23 working days, you breach the lodgement rules. Set a calendar reminder when the payment arrives.

Conflating bond and advance rent: the bond top-up is separate from the regular rent payment. Do not deduct it from rent or treat it as advance rent — the tenant pays the top-up in addition to their normal rent, and it goes to the Bond Hub.

The Practical Sequence

After a rent increase takes effect:

1. Calculate the new maximum bond (4 × new weekly rent)
2. Subtract the current bond held with MBIE
3. If there is a shortfall, write to the tenant requesting the top-up amount
4. When the tenant pays, lodge the additional amount via the Bond Hub within 23 working days
5. Keep a record of the request, payment date, and lodgement confirmation

Not every landlord chooses to top up. If the existing bond covers most of the exposure and the relationship with the tenant is good, some landlords skip the top-up to keep things simple.

Full Bond and Rent Increase Process

The bond top-up is one step in the wider rent increase process. The Rent Increases in New Zealand guide includes a bond top-up calculator alongside the notice form, service buffer worksheet, and compliance checklist.

See more New Zealand guides →