Bond refund NZ: the complete guide for landlords in 2026

How does the bond refund process work in New Zealand?

When a tenancy ends in New Zealand, the bond — held by Tenancy Services on behalf of both parties — needs to be refunded. The process starts when either the landlord or tenant submits a bond refund form. Both parties can agree on how the bond is split (for example, full refund to the tenant, or a portion retained for unpaid rent or damage). If both parties sign the bond refund form, Tenancy Services processes the refund within five working days. If only the tenant submits the form, the landlord has 10 working days to respond or object. If the landlord does not object within that window, the bond is refunded as the tenant requested. If there is a disagreement, the matter can go to mediation or the Tenancy Tribunal. The entire process is governed by the Residential Tenancies Act 1986 and administered by Tenancy Services, part of the Ministry of Business, Innovation and Employment (MBIE). Landlords can now manage much of this online through Bond Hub, Tenancy Services' self-service portal.

Understanding how bond refunds work — and where landlords commonly go wrong — can save you time, money, and stress. This guide walks through the full process from a landlord's perspective.

What is a tenancy bond and how much can you charge?

A tenancy bond is a security deposit paid by the tenant at the start of a tenancy. It protects you if the tenant leaves owing rent, causes damage beyond fair wear and tear, or leaves the property in an unacceptable state.

Under the Residential Tenancies Act 1986, the maximum bond is four weeks' rent. You cannot charge more than this, regardless of the property or tenant. If your weekly rent is $600, your maximum bond is $2,400.

Once collected, you must lodge the bond with Tenancy Services within 23 working days. Failing to lodge on time can result in penalties of up to $1,000. For a detailed walkthrough of the lodgement process, see our bond lodgement guide.

The bond is not your money to hold — it sits with Tenancy Services until the tenancy ends and both parties agree on how it should be distributed.

The bond refund process: step by step for landlords

Here is exactly what happens when a tenancy ends and the bond needs to come back.

Step 1 — The tenancy ends

The tenant gives notice, you give notice, or the fixed-term agreement expires. Whatever the reason, once an end date is confirmed, you should start preparing for the bond refund process immediately. For more on ending a tenancy correctly, see our guide on how to end a tenancy in NZ.

Step 2 — Conduct a final property inspection

Before the tenant moves out (or as close to their departure as possible), carry out a thorough final inspection. Compare the property's current condition against your ingoing inspection report and photographs.

This is where your documentation pays off. Without a detailed record of the property's condition at the start of the tenancy, it becomes very difficult to prove that damage occurred during the tenancy.

Tips for the final inspection:

• Use a structured property inspection checklist
• Take date-stamped photographs of every room, including close-ups of any damage
• Note anything that goes beyond fair wear and tear
• Have the tenant present if possible — this reduces disputes later

Step 3 — Agree on the bond split

Once you have inspected the property, discuss the bond with the tenant. There are three common outcomes:

1. Full refund to the tenant — the property is in good condition, rent is up to date, no deductions needed
2. Partial refund — you retain a portion for unpaid rent, damage, or cleaning costs, and the rest goes back to the tenant
3. Full retention — rare, but possible if damage and arrears exceed the bond amount (you may need to pursue the remainder through the Tenancy Tribunal)

If you and the tenant agree, you both sign the bond refund form and submit it to Tenancy Services. Agreement is always the fastest path.

Step 4 — Submit the bond refund form

The bond refund form can be submitted online through Bond Hub or as a paper form. Both parties should sign it. The form specifies how the bond is to be divided — how much goes to the tenant and how much (if any) goes to the landlord.

If you and the tenant agree, the process is straightforward. Tenancy Services will process the refund within five working days of receiving the completed form.

Step 5 — What if only the tenant submits the form?

A tenant can submit a bond refund form without the landlord's signature. When this happens, Tenancy Services notifies the landlord and gives you 10 working days to either:

• Agree with the tenant's proposed split, or
• Object by filing a dispute

If you do not respond within 10 working days, the bond is refunded according to the tenant's request. This is one of the most common traps for landlords — if you miss the deadline, you lose your right to claim.

How long does a bond refund take in NZ?

If both parties sign the bond refund form and submit it together, Tenancy Services typically processes the refund within five working days.

If only one party submits the form, the other party has 10 working days to respond. After that, processing takes a further five working days. So the total timeline could be around three weeks from submission to payment if there is no dispute.

If the matter goes to mediation or the Tenancy Tribunal, it can take several weeks to a few months depending on the complexity and the Tribunal's schedule.

The takeaway for landlords: respond promptly. Delays on your end only slow down the process and can result in you losing the ability to make a claim.

What is Bond Hub and how does it work?

Bond Hub is Tenancy Services' online self-service portal for managing bonds. It allows landlords (and tenants) to:

• View current and past bonds
• Lodge new bonds online
• Top up bonds when rent increases
• Submit bond refund forms
• Track the status of refund requests

Bond Hub is free to use and available at tenancy.govt.nz. You will need a RealMe login to access it.

For landlords managing multiple properties, Bond Hub is particularly useful because it gives you a single dashboard view of all your bonds. No more digging through paperwork or wondering whether a bond was lodged.

What can landlords claim from the bond?

Not everything that goes wrong during a tenancy is the tenant's fault — and the law reflects that. Here is what you can and cannot claim.

You CAN claim for:

• Unpaid rent — if the tenant owes rent at the end of the tenancy, you can claim it from the bond
• Damage beyond fair wear and tear — holes in walls, broken fixtures, stained carpets (beyond normal use), damaged appliances
• Cleaning costs — if the property is left in a materially worse state of cleanliness than when the tenancy began
• Other breaches — such as unauthorised modifications or items left behind that require removal

You CANNOT claim for:

• Fair wear and tear — scuff marks on walls, minor carpet wear, faded curtains, worn door handles. These are the normal result of someone living in the property
• Pre-existing issues — damage or maintenance problems that were present before the tenancy started
• Normal aging — appliances reaching end-of-life, paint naturally aging, fixtures wearing out through normal use
• Upgrades or improvements — you cannot use the bond to fund property improvements

The distinction between damage and fair wear and tear is one of the most common sources of bond disputes. Good documentation — especially a thorough ingoing inspection with photos — is your best protection.

Can a landlord keep the bond for cleaning?

Yes, but only if the property was left materially dirtier than when the tenancy started. You need to show that the tenant did not meet their obligation to leave the property in a reasonably clean and tidy condition.

This does not mean the property needs to be professionally cleaned. If the tenant left it in a similar state to how they received it (allowing for normal living), you cannot justify a deduction for cleaning.

To support a cleaning claim:

• Compare photos from your ingoing and outgoing inspections
• Get a quote or invoice from a professional cleaner
• Be specific about what needs cleaning and why it goes beyond normal use

Vague claims like "the property wasn't clean enough" rarely succeed at the Tenancy Tribunal without evidence.

How to handle a bond dispute as a landlord

Disputes happen. The key is to handle them properly and within the required timeframes.

Try to agree first

Most bond refund disagreements can be resolved with a conversation. Be clear about what you are claiming and why. Show the tenant your evidence — photos, inspection reports, quotes for repairs. Many tenants will agree to a reasonable deduction when presented with clear evidence.

What happens if the landlord doesn't sign the bond refund form?

If the tenant submits the bond refund form without your agreement, you will receive a notice from Tenancy Services. You then have 10 working days to file an objection. If you do not respond, the bond is refunded as the tenant requested.

This is critical. Set a reminder, respond promptly, and do not let the deadline pass.

Filing an objection

To object, you can contact Tenancy Services and file a dispute. You will need to explain why you disagree with the tenant's proposed split and provide supporting evidence.

Mediation

Tenancy Services offers free mediation to help resolve bond disputes. A neutral mediator works with both parties to find an agreement. Mediation is faster and less formal than a Tribunal hearing, and it is worth trying before escalating.

Tenancy Tribunal

If mediation fails (or either party declines it), the dispute goes to the Tenancy Tribunal. Both parties present their case, and an adjudicator makes a binding decision. You will need all your evidence: the tenancy agreement, ingoing and outgoing inspection reports, photographs, receipts, quotes, and any relevant correspondence.

For a deeper dive into the dispute process, read our full guide on how to handle bond disputes in New Zealand.

How do I dispute a bond refund as a landlord?

If you believe the tenant's bond refund request is unfair, here is what to do:

1. Act within 10 working days of receiving the notification from Tenancy Services
2. Gather your evidence — ingoing inspection report, outgoing inspection report, photos, quotes for repairs or cleaning
3. File your objection with Tenancy Services (online through Bond Hub or by phone)
4. Attend mediation if offered — this is free and often resolves the dispute
5. Apply to the Tenancy Tribunal if mediation does not resolve the matter

The most important thing is to not ignore the notification. Missing the 10-working-day window is the single most common reason landlords lose bond claims they would otherwise have won.

Common mistakes landlords make with bond refunds

Over the years, we have seen the same mistakes come up again and again. Avoid these and you will be in a much stronger position.

1. No ingoing inspection

If you did not conduct a thorough inspection (with photos and a written report) at the start of the tenancy, you have no baseline to compare against. The Tenancy Tribunal takes a dim view of claims without evidence.

2. No photographic evidence

Written descriptions are helpful, but photographs are far more persuasive. Take date-stamped photos at the start and end of every tenancy, covering every room and any areas of concern.

3. Waiting too long to respond

If the tenant submits a bond refund form and you miss the 10-working-day objection window, the bond is refunded without your input. Set calendar reminders and check your mail (physical and digital) regularly near the end of a tenancy.

4. Claiming for fair wear and tear

Trying to claim the bond for normal wear — faded paint, minor scuffs, worn carpet — will not succeed and damages your credibility if the matter reaches the Tribunal.

5. Not using Bond Hub

Paper-based processes are slower and more error-prone. Bond Hub gives you visibility and control. Use it.

6. Poor communication with the tenant

Many disputes could be avoided with a simple conversation. Explain what you are claiming, show your evidence, and give the tenant a chance to respond before escalating.

How Keel helps you manage bond refunds

Keeping track of inspection records, photographs, deadlines, and bond paperwork across multiple properties is a lot of work. That is exactly the kind of thing Keel is built for.

Keel's AI assistant, Skip, helps self-managing landlords stay on top of the bond refund process by:

• Storing inspection records and photos so you always have a clear baseline to compare against
• Tracking key dates and deadlines — including the 10-working-day objection window — so nothing falls through the cracks
• Documenting property condition over time, making it easy to show what changed during a tenancy
• Keeping your tenancy records organised in one place, ready if you ever need to present evidence at the Tribunal

You do not need to be a property management expert to self-manage well. You just need the right tools and the right information at the right time.

Try Keel free for 30 days and see how it simplifies the end-of-tenancy process.

Key takeaways

• The bond refund process in NZ is straightforward when both parties agree — submit the form together and Tenancy Services processes it within five working days
• If a tenant submits the form alone, you have 10 working days to object — do not miss this deadline
• You can claim for unpaid rent, damage beyond fair wear and tear, and cleaning costs — but not for normal wear or pre-existing issues
• Good documentation (ingoing inspections, photos, written records) is your strongest protection in any dispute
• Use Bond Hub to manage your bonds online
• If a dispute arises, try agreement first, then mediation, then the Tenancy Tribunal
• For official guidance, always refer to Tenancy Services

Managing bond refunds does not have to be stressful. With the right process, the right documentation, and a clear understanding of your rights and obligations under the Residential Tenancies Act 1986, you can handle it with confidence.