Maximum Bond NZ: How Much Can a Landlord Charge?

The Residential Tenancies Act sets hard caps on how much bond a landlord can charge. Exceed them and you're committing an unlawful act — the Tenancy Tribunal can award the tenant up to $1,500 in exemplary damages.

The General Bond: 4 Weeks' Rent

The standard tenancy bond is capped at a maximum of 4 weeks' rent under section 18(1) of the RTA. You can charge less, but never more. The calculation is simple: multiply the weekly rent by four.

If you're charging rent fortnightly or monthly, convert to a weekly figure first. Monthly rent ÷ 4.333 gives you the weekly equivalent.

The Pet Bond: 2 Weeks' Rent (Since 1 December 2025)

Since the Residential Tenancies Amendment Act 2024 took effect, landlords who consent to a pet can charge a separate pet bond of up to 2 weeks' rent. This is in addition to the general bond, bringing the total maximum security to 6 weeks' rent for a tenancy with an approved pet.

Only one pet bond can be charged at a time during a tenancy — the number of pets doesn't matter. A pet bond applies to pets first kept on or after 1 December 2025; landlords cannot add one for a pet already allowed before that date. And you can't charge a pet bond for a certified Disability Assist Dog.

What Doesn't Count Toward the Bond Cap

These are separate from the bond and don't count against the 4-week (or 6-week) maximum:

• Rent in advance — landlords can collect up to 2 weeks' rent in advance (1 week for boarding houses). This covers upcoming occupation, not security.
• Option fees — a landlord may charge up to 1 week's rent to hold a property while a prospective tenant decides. If the tenant decides to rent it, the fee must be refunded or put toward rent.

These payments are prohibited and can't be charged at all:

• Key money — money, other than rent or bond, required to grant or change a tenancy, except a permitted option fee
• Letting fees — administrative fees charged to tenants
• Separate cleaning or key deposits — any security deposit outside the permitted bond categories

Each prohibited charge is an unlawful act carrying up to $1,500 in exemplary damages. A landlord who charges a $200 "key deposit" on top of a 4-week bond has required prohibited extra security, creating a separate unlawful act — up to $3,000 in combined exposure.

Boarding House Exception

Boarding house tenancies follow the same 4-week cap, but there's a lodgement exemption: if the bond is 1 week's rent or less, the landlord doesn't have to lodge it with Tenancy Services. The landlord holds it directly, issues a receipt, and returns it at the end of the tenancy minus lawful deductions.

Bonds exceeding 1 week's rent must be lodged within the standard 23 working days.

What Happens If You Overcharge

Requiring a bond that exceeds the cap is an unlawful act under the RTA. The tenant can apply to the Tenancy Tribunal for:

• An order reducing the bond to the statutory maximum
• Exemplary damages of up to $1,500
• Refund of any excess amount already collected

Charging above the cap is an unlawful act. Whether to award exemplary damages depends on the Tribunal's statutory test, including whether the act was intentional.

Bond After a Rent Increase

For ordinary rent increases, the 12-month restriction applies. A landlord and tenant can agree to a qualifying increase within that period for property improvements, better facilities or services, or a tenancy variation that benefits the tenant; the Tribunal can also order an increase for specified reasons. Under section 18(2) of the RTA, a bond top-up is limited to the increase in 4 weeks' rent, so it may leave a bond that was below the cap below the new 4-week maximum. Lodge a top-up within 23 working days of receiving it.

For a complete walkthrough of bond limits, lodgement, and refunds — including a working-day calculator — see our NZ Bond Lodgement guide.

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