Tenant Wins Bond Refund and Exemplary Damages
📌 In brief
The Tenancy Tribunal ruled in favour of the tenant, ordering the landlord to pay $1,000 in exemplary damages for failing to lodge the bond with Tenancy Services within the required timeframe.
⚖️ Legal holding
A landlord must lodge the bond with the Tenancy Services within 23 working days of receiving it, failing which the tenant is entitled to exemplary damages.
📖 What the law says
When a landlord receives a bond payment, they must give the person who paid it a written receipt right away. This receipt needs to show the address of the property, the amount and type of payment, the date it was paid, and the name of the payer. The landlord must also send the bond money to the chief executive within 23 working days of receiving it, along with a statement.
A landlord or tenant can ask the Tenancy Tribunal to order another person to pay them exemplary damages if that person has committed an unlawful act. For certain unlawful acts related to bonds, this request must be made no later than 12 months after the tenancy ends.
Plain-English explanation — does not replace advice from a lawyer.
📖 Technical summary
The Tribunal awarded exemplary damages to the tenant for the landlord's failure to lodge the bond within the required timeframe.
📜 Headnote Official document
The Tenancy Tribunal awarded $1,000 in exemplary damages to the tenant for the landlord's failure to lodge the bond with Tenancy Services within the required timeframe, as per the Residential Tenancies Act 1986.
📚 Full judgment Official document
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[2025] NZTT 5100608, 5121648
TENANCY TRIBUNAL - Auckland | Tāmaki Makaurau
APPLICANT: [redacted]
Tenant
RESPONDENT: [redacted]
Landlord
TENANCY ADDRESS: Room 312, [ADDRESS], [POSTCODE], 3
ORDER
1. [NAME] must pay [NAME] $1,027.00 immediately, calculated as shown in table below:
2. The [COMPANY] is to pay the bond of $380.00 (6551305-006) to [NAME] immediately.
Description Landlord Tenant Exemplary damages: Failing to lodge bond $1,000.00 Filing fee reimbursement $27.00 Total award $1,027.00 Bond $380.00 Total payable by Landlord to Tenant $1,027.00
Reasons:
1. Both parties attended the hearing on 4th February 2025.
2. The tenant applied for refund of the bond and exemplary damages for the landlord not lodging the bond with the [COMPANY] within the required time.
3. The landlord made a cross-application seeking general compensation on behalf of the other tenants and cleaning costs.
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Background
4. The tenancy was originally for a fixed term from 14th July 2024 until 14th October 2024.
5. The tenancy was for a single room in a three-bedroom apartment in the CBD.
6. There were two other tenants living in the other two rooms.
7. The apartment was of a relatively modest size, totalling 41 square metres. The three tenants had a single bathroom to share between them.
8. During the tenancy, the other two tenants complained to the landlord about their loss of quiet enjoyment of the bathroom and noises coming from this tenant’s room. The other tenants also complained about this tenant or her guest having smoked cannabis at the premises.
9. On 21st September 2024, the landlord told the tenant that she needs to leave the following day as she had broken the law of smoking drugs, that her boyfriend was living there which was a breach of the contract and that they made noises upsetting the other tenants.
10. The tenant rightfully sent the landlord a link from the Tenancy Services website informing the landlord that she could not simply kick her out overnight.
11. On 29th September 2024, by agreement the tenant moved out.
12. The landlord also said that when the tenant left, she did not leave the premises reasonably clean and tidy.
13. The tenant had paid a bond of $380.00 to the landlord. The landlord refused to release the bond to the tenant citing the issues mentioned above.
14. It was only when the tenant had requested her bond back using a 14-day notice on 4th October 2024, the landlord lodged the bond with the [COMPANY] on 10th October 2024.
The tenant’s application
15. Before I consider the tenant’s application, I make an observation that this tenancy was filled with flaws and unlawful acts by the landlord.
16. Firstly, it would be virtually impossible to ensure that the tenants are able to have quiet enjoyment of the premises with having three separate adult tenants living in a small apartment sharing a single bathroom.
17. Although a tenant must not cause or permit interference with the reasonable peace, comfort, or privacy of the landlord's other tenants or of anyone else living in the neighbourhood (see section 40(2)(c) Residential Tenancies Act 1986 (“RTA”)), every tenant is entitled to have quiet enjoyment of the premises and the landlord must not cause or permit any interference with the reasonable
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peace, comfort, or privacy of the tenant in the use of the premises by the tenant (see section 38 RTA).
18. No tenant can be guaranteed quiet enjoyment of the premises if they are renting a single small room in a small apartment sharing a bathroom.
19. Secondly, the tenancy agreement itself was unlawful.
20. The tenancy agreement signed by the parties was a custom-made agreement that purported to be an official “Tenancy Services Residential Tenancies Agreement”. However, it is clear that it had been altered from the official form as the form has unlawful clauses such as a letting fee.
21. The tenancy agreement did not have the legally required contents under section 13A RTA and had no reference to insulation, insurance or the Healthy Homes Standards.
22. It also stipulated “house rules” that would not be enforceable and included conditions such as a $20.00 penalty fee for not cleaning the common areas.
23. During the tenancy, there was a time when the landlord essentially told the tenant off for taking a heater from the lounge into her own room and for her using too much electricity.
24. Thirdly, the landlord tried to terminate the fixed-term tenancy without proper grounds and fourthly, did not lodge the bond with the [COMPANY] within the required time.
25. If the tenant had applied for exemplary damages based on everything above, more could have been granted in the tenant’s favour.
26. As the tenant had only sought for exemplary damages for not lodging the bond in time, I will consider that unlawful act only for the exemplary damages.
27. A landlord must send any bond payment to the [COMPANY] within 23 working days after the payment is received. See section 19(1) RTA.
28. 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 RTA.
29. There is no dispute that the landlord did not lodge the bond within the required time. The landlord has committed an unlawful act.
30. 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) RTA.
31. The landlord explained that she had not lodged the bond with the [COMPANY] as the tenant was initially unsure that she would stay until the end of the
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tenancy. Oddly, the “fixed-term tenancy” included a clause where the tenant could terminate the tenancy with two weeks’ notice.
32. The landlord said that the tenant only confirmed that she would stay for the entire duration of the tenancy on 18th August 2024 but that was already 25 working days since the bond had been received.
33. The bond was only sent to the [COMPANY] on 7th October 2024 after the tenant gave the landlord an official 14-day notice. This was more than a week after the tenant had already moved out.
34. Before the tenant gave her 14-day notice to request the bond, the landlord had told the tenant that she would not get her bond back for various reasons. Having the bond held at the [COMPANY] is designed to avoid this exact situation of power-imbalance.
35. At the hearing, the landlord confirmed that she had not lodged the bond of the other two remaining tenants despite them having lived there longer than this tenant. The landlord tried to explain that they were more like friends. I cannot see how that is a valid reason for not lodging the bond with the [COMPANY].
36. I find that tenant has proven that the landlord had intentionally breached her obligation by not sending the bond to the [COMPANY] within the required time. The tenant should not have been subjected to the abuse of power by the landlord and there is public interest in denouncing such behaviour.
37. This is a serious breach. I order the landlord to pay the tenant $1,000.00 as exemplary damages for failing to lodge the bond with the [COMPANY].
The landlord’s cross-application
38. The landlord tried to make general compensation claims on behalf of the other tenants living at the address.
39. The other tenants have no standing in a case between this tenant and the landlord.
40. Therefore, the general compensation claim is not considered.
41. I also do not find that this tenant has caused interference with the reasonable peace, comfort, or privacy of any of the other tenants in any case. This tenant had simply used the spaces provided and it was the tenant’s right to use the space as she did.
42. It is correct that the tenant must not use the premises or permit the premises to be used for any unlawful purpose. Smoking marijuana is an unlawful purpose which is an unlawful act.
43. However, the tenant denied smoking marijuana herself and she said that she was unfamiliar with what her guest had been smoking.
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44. I do not find that the tenant had intentionally used the premises or permitted the premises to be used for any unlawful purpose.
45. In relation to cleaning fees of $190.00 sought by the landlord, having seen the photos I do not find that it is such that warrants any compensation awarded for the landlord given that the “mess” left by the tenant was minimal.
46. As such, I dismiss the landlord’s application.
47. Therefore, I order the bond held at the [COMPANY] to be refunded to the tenant.
48. Also, as the tenant had wholly succeeded with this application, the landlord must reimburse the tenant’s filing fee.
[NAME]
14 February 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 [NAME]/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 [NAME]/disputes/enforcing-decisions, waea atu ki Ratonga Takirua ma runga [PHONE] ranei.
A manaomia nisi faamatalaga poo se fesoasoani, e uiga i lau mataupu, asiasi ifo le matou aupega tafailagi: [NAME]/disputes/enforcing-decisions, pe fesootai mai le Tenancy Services i le numera [PHONE].
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.[NAME]/disputes/enforcing-decisions https://www.[NAME]/disputes/enforcing-decisions http://www.[NAME]/disputes/enforcing-decisions/
Reasons:
⚖️ What tends to weigh in cases like this
✅ Tends to be accepted
- The landlord failed to lodge the bond with the Tenancy Services within the required time.
- The landlord intentionally breached her obligation by not sending the bond to the Tenancy Services.
- The tenant should not have been subjected to the landlord's abuse of power.
- There is public interest in denouncing the landlord's behavior of not lodging the bond.
- The landlord's failure to lodge the bond was a serious breach.
❌ Tends to be rejected
- The landlord's claim for general compensation on behalf of other tenants was not considered because they had no standing.
- The landlord's claim that the tenant interfered with other tenants' peace was not accepted.
- The landlord's claim that the tenant intentionally used the premises for an unlawful purpose (smoking marijuana) was not proven.
- The landlord's claim for cleaning fees was dismissed because the mess left by the tenant was minimal.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The Tenancy Tribunal awarded $1,000 in exemplary damages to the tenant for the landlord's failure to lodge the bond within the required timeframe.
What was the dispute about?
The dispute was about the landlord's failure to lodge the bond with Tenancy Services within 23 working days of receiving it.
How did the court decide, and why?
The court decided in favour of the tenant because the landlord failed to lodge the bond within the required timeframe, which is an unlawful act under the Residential Tenancies Act 1986.
Which laws or rules were applied?
The Residential Tenancies Act 1986, sections 19(2) and 109(3), were applied.
What was the argument that mattered most?
The argument that mattered most was that the landlord failed to lodge the bond within the required timeframe, which is an unlawful act under the Residential Tenancies Act 1986.
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?
For someone in a similar situation, if a landlord fails to lodge the bond within the required timeframe, the tenant may be entitled to exemplary damages.
What evidence or documents mattered?
The judgment does not specify the evidence or documents that mattered.