Landlord Fails to Lodge Bond on Time, Awarded Exemplary Damages
📌 In brief
The Tenancy Tribunal awarded $300 in exemplary damages to the tenant because the landlord failed to lodge the bond within 23 working days of receiving it. The landlord claimed it was due to the Christmas holiday season, but the Tribunal found the landlord acted intentionally and awarded damages accordingly.
⚖️ Legal holding
A landlord must lodge a tenant's bond within 23 working days of receiving it, failing which the Tribunal may award exemplary damages.
📖 What the law says
When a landlord receives a bond payment from a tenant, the landlord must send that money to the chief executive within 23 working days of receiving it. The person who receives the payment must also immediately give the tenant a written receipt showing details like the address, amount, date, and payer's name.
Plain-English explanation — does not replace advice from a lawyer.
📖 Technical summary
The Tribunal awarded exemplary damages for the landlord's failure to lodge the bond within the required timeframe.
📜 Headnote Official document
The Tribunal awarded $300 in exemplary damages to the tenant for the landlord's failure to lodge the bond within 23 working days of receiving it. The landlord acknowledged the breach but argued it was due to the Christmas holiday season. The Tribunal found the landlord acted intentionally and awarded damages accordingly.
📚 Full judgment Official document
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[2025] NZTT 5164872
TENANCY TRIBUNAL AT REMOTE LOCATION | TE TARAIPIUNARA RETIHANGA
APPLICANT: [redacted]
Tenant
RESPONDENT: [redacted]
ORDER
1. [COMPANY] trading as [NAME] is to pay [NAME] $327.00 immediately, calculated as shown in the table below:
Description Landlord Tenant Exemplary damages: failure to lodge bond $300.00 Filing fee reimbursement $27.00 Total award $327.00 Total payable by Landlord to Tenant $327.00
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Reasons:
1. [NAME], the tenant, and [NAME], representing the landlord, both attended the teleconference hearing.
2. The tenant has applied for failure to lodge the bond, exemplary damages and reimbursement of the filing fee, following the end of the boarding house tenancy.
3. The landlord said during the hearing that they recently filed a cross-application. The landlord’s cross-application was in the process of assessment by Tenancy Services, was not scheduled to be heard with the tenant’s application and will be scheduled to be heard separately.
4. The parties agree the tenancy ended on 28 January 2025, and had begun on 13 December 2024, so it was a short tenancy of just over 6 weeks duration. Weekly rent was $375.00.
5. The tenant said he paid a bond of $1,500.00 to the landlord before he moved into the property on 13 December 2024, as well as $750.00 for rent in advance.
6. The landlord confirmed they received the tenant’s bond of $1,500.00, paid in cash, on the date the tenant signed the tenancy agreement, which was on 11 December 2024.
7. The landlord said the tenant asked them about whether they had lodged the bond, but the property manager was away over the Christmas holidays. The landlord said the tenant then gave them notice in a letter dated 23 January 2025 that he was going to move out on 28 January 2025. The landlord said they then asked the tenant whether he would prefer they formally lodge the bond, in which case the tenant might have to wait for the bond to be released to him, or whether the tenant wished them to pay the bond to him directly instead. Initially, the landlord indicated the tenant said he wanted the landlord to lodge the bond and then the tenant agreed for the landlord to pay him the bond directly. The landlord said the full bond of $1,500.00 was paid directly to the tenant on 29 January 2025, the day after he moved out, which was confirmed by the tenant.
8. A landlord must send any bond payment to the Bond Centre within 23 working days after the payment is received. See section 19(1) Residential Tenancies Act 1986.
9. Breaching this obligation is an unlawful act for which the Tribunal may award exemplary damages up to a maximum of $1,500.00. See section 19(2) and Schedule 1A Residential Tenancies Act 1986.
10. The landlord confirmed they received the tenant’s bond of $1,500.00 on 11 December 2024 and acknowledged that the bond was not lodged within the 23 working days’ time frame. I calculate that 23 working days from 11 December 2024, the date the bond was paid to the landlord, taking into account public
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holidays on 25 & 26 December 2024 and on 1 and 2 January 2025, would be 17 January 2025. The landlord acknowledged they never lodged the bond and paid it in full to the tenant on 29 January 2025. Therefore, as the landlord did not lodge the bond within 23 working days of receiving it, I find they have committed an unlawful act.
11. Where a party has committed an unlawful act intentionally, the Tribunal may award exemplary damages where it is satisfied it would be just to do so, having regard to the party’s intent, the effect of the unlawful act, the interests of the other party, and the public interest. See section 109(3) Residential Tenancies Act 1986.
12. The issue of whether an act is intentional has been considered in situations of damage caused in a tenancy. There, damage is intentional where a person intends to cause damage and takes the necessary steps to achieve that purpose. Damage is also intentional where a person does something, or allows a situation to continue, knowing that damage is a certainty. See Guo v Korck [2019] NZHC 1541.
13. Similarly, in this situation, the landlord allowed a situation to continue knowing that not acting would result in the bond being lodged late. As such, I find that the landlord committed this unlawful act intentionally.
14. I have dealt with the intent of the landlord above. The landlord said they have lodged other tenants’ bonds in their living complex in a timely manner and this bond was not lodged because of the Christmas holiday season and then because the tenant gave notice that he was moving out. The tenant said he found it stressful and was anxious that his bond had not been lodged by the landlord. He believed the landlord had no intention of lodging the bond, which was disputed by the landlord. Bonds are held in trust on the tenant’s behalf. In my view, it is in the public interest for bonds to be lodged as quickly as possible after receipt of the tenant’s money. There is also a public interest in tenants knowing their funds are safe and held in trust in a neutral Bond Centre, in the event of any disputes.
15. The maximum level of exemplary damages is $1,500. In this case I consider an order of less than one third of the maximum would be indicated. The landlord has committed an unlawful act, and I accept that there has been an impact for the tenant. However, I consider as mitigating factors that the tenant gave notice on 23 January 2025 to move out on 28 January 2025, the landlord then started discussing with the tenant what he wished them to do with the bond given he was moving out, and that the bond was then paid in full back to the tenant on 29 January 2025, the day after the tenant moved out. So, whilst the landlord did not lodge the bond by 17 January 2025, the full bond was returned to the tenant 12 days after the deadline for the landlord to lodge the bond on 17 January
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2025, which was a short period after the deadline. I therefore order exemplary damages of $300.00.
Filing fee
16. [NAME] has been successful with the claim I must reimburse the filing fee.
C Price
11 April 2025
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Please read carefully: Visit justice.govt.nz/tribunals/tenancy/rehearings-appeals for more information on rehearings and appeals.
Rehearings You can apply for a rehearing if you believe that a substantial wrong or miscarriage of justice has happened. For example: • you did not get the letter telling you the date of the hearing, or • the adjudicator improperly admitted or rejected evidence, or • new evidence, relating to the original application, has become available.
You must give reasons and evidence to support your application for a rehearing. A rehearing will not be granted just because you disagree with the decision. You must apply within five working days of the decision using the Application for Rehearing form: justice.govt.nz/assets/Documents/Forms/TT-Application-for-rehearing.pdf
Right of Appeal Both the landlord and the tenant can file an appeal. You should file your appeal at the District Court where the original hearing took place. The cost for an appeal is $260. You must apply within 10 working days after the decision is issued using this Appeal to the District Court form: justice.govt.nz/tribunals/tenancy/rehearings-appeals
Grounds for an appeal You can appeal if you think the decision was wrong, but not because you don’t like the decision. For some cases, there’ll be no right to appeal. For example, you can’t appeal: • against an interim order • a final order for the payment of less than $1000 • a final order to undertake work worth less than $1000.
Enforcement Where the Tribunal made an order about money or property this is called a civil debt. The Ministry of Justice Collections Team can assist with enforcing civil debt. You can contact the collections team on [PHONE] or go to justice.govt.nz/fines/civil-debt for forms and information.
Notice to a party ordered to pay money or vacate premises, etc. Failure to comply with any order may result in substantial additional costs for enforcement. It may also involve being ordered to appear in the District Court for an examination of your means or seizure of your property.
If you require further help or information regarding this matter, visit tenancy.govt.nz/disputes/enforcing- decisions or phone Tenancy Services on [PHONE].
Mēna ka hiahia koe ki ētahi atu awhina, kōrero ranei mo tēnei take, haere ki tenei ipurangi tenancy.govt.nz/disputes/enforcing-decisions, waea atu ki Ratonga Takirua ma runga [PHONE] ranei.
https://www.justice.govt.nz/tribunals/tenancy/rehearings-appeals https://www.justice.govt.nz/assets/Documents/Forms/TT-Application-for-rehearing.pdf https://www.justice.govt.nz/tribunals/tenancy/rehearings-appeals/ https://www.justice.govt.nz/fines/about-civil-debt/ https://www.tenancy.govt.nz/disputes/enforcing-decisions https://www.tenancy.govt.nz/disputes/enforcing-decisions http://www.tenancy.govt.nz/disputes/enforcing-decisions/
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A manaomia nisi faamatalaga poo se fesoasoani, e uiga i lau mataupu, asiasi ifo le matou aupega tafailagi: tenancy.govt.nz/disputes/enforcing-decisions, pe fesootai mai le Tenancy Services i le numera [PHONE].
Reasons:
⚖️ What tends to weigh in cases like this
✅ Tends to be accepted
- The landlord did not lodge the bond within 23 working days of receiving it.
- The landlord acted intentionally by allowing the situation to continue knowing the bond would be lodged late.
- The tenant found it stressful and anxious that his bond had not been lodged.
- The landlord paid the full bond back to the tenant shortly after the deadline.
- The tenant was successful with the claim and the filing fee was reimbursed.
❌ Tends to be rejected
- The landlord claimed the delay was due to the Christmas holiday season.
- The landlord argued that the tenant gave notice to move out, which affected the timing of the bond lodgment.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The Tenancy Tribunal awarded $300 in exemplary damages to the tenant because the landlord failed to lodge the bond within 23 working days of receiving it.
What was the dispute about?
The dispute was about the landlord's failure to lodge the tenant's bond within the required timeframe, leading to an award of exemplary damages.
How did the court decide, and why?
The court decided to award exemplary damages because the landlord intentionally failed to lodge the bond within the required timeframe.
Which laws or rules were applied?
The Residential Tenancies Act 1986, sections 19(1) and 19(2), and Schedule 1A were applied.
What was the argument that mattered most?
The argument that mattered most was that the landlord allowed the situation to continue knowing that not acting would result in the bond being lodged late.
Was the decision for or against the person who brought the case?
The decision was for the tenant who brought the case.
What does this mean for someone in a similar situation?
Someone in a similar situation should ensure that the landlord lodges the bond within the required timeframe to avoid exemplary damages.
What evidence or documents mattered?
The evidence that mattered included the landlord's confirmation of receiving the bond and the timeline of events leading up to the filing of the application.