Tenant wins bond refund and exemplary damages from landlord
📌 In brief
The Tenancy Tribunal ruled in favour of the tenant, ordering the landlord to pay $931.00 from the bond and $150.00 in exemplary damages for failing to lodge the bond within the required timeframe. The Tribunal determined that the landlord had breached their obligations under the Residential Tenancies Act 1986.
⚖️ Legal holding
A tenant is entitled to receive their bond back if the landlord fails to lodge it within the required timeframe.
📖 What the law says
When a landlord receives a bond payment, they must immediately give the person who paid it a signed written receipt. This receipt needs to show the address of the rental property, the amount and type of payment, the date it was paid, and the name of the person who paid it.
After receiving a bond payment, the landlord must send the bond money to the chief executive within 23 working days. This must be accompanied by a statement.
Plain-English explanation — does not replace advice from a lawyer.
📖 Technical summary
The Tribunal awarded the tenant $931.00 from the bond and ordered the landlord to pay $150.00 in exemplary damages.
📜 Headnote Official document
The Tenancy Tribunal awarded the tenant $931.00 from the bond and ordered the landlord to pay $150.00 in exemplary damages for failing to lodge the bond within the required timeframe. The Tribunal found that the landlord had breached their obligations under the Residential Tenancies Act 1986.
📚 Full judgment Official document
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[2025] NZTT 5057729
TENANCY TRIBUNAL - Invercargill | Waihōpai
APPLICANT: [redacted]
Tenant
RESPONDENT: [redacted]
Landlord
TENANCY ADDRESS: [ADDRESS], [POSTCODE]
ORDER
1. [NAME] to pay [NAME] $931.00 from the bond, calculated as shown in table below.
2. The [COMPANY] is to pay the bond of $1,760.00 (6513917-001) immediately apportioned as follows:
[NAME]: $931.00
[NAME]: $829.00
Description Landlord Tenant Rent arrears $234.00 Contribution to driveway $497.00 Lawns and gardens contributions $100.00 Wall repairs contributions $250.00 Exemplary damages regarding bond $150.00
Total award $1081.00 $150.00 Less exemplary damages 150.00 Bond $931.00 $829.00
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Reasons:
1. Both parties attended the hearing.
2. The Tenant applied for the refund of her bond and exemplary damages in tha the landlord failed to lodge the bond. She also sought damages given the tenant was given notices for the end of the period tenancy on the basis of the landlord seeking to occupy when in fact she sold the property.
3. The landlord seeks rent arrears, and compensation.
How much is owed for rent?
4. The tenancy ended on 18th October 2024. However, the final inspection and actual vacate day was the 27th October 2024.
5. The Landlord has only charged a minimal per day rental for the remaining nine days however was entitled to charge the full amount. She said she felt that was fair as it was mainly cleaning that was required.
Did the tenant comply with their obligations at the end of the tenancy?
6. At the end of the tenancy the tenant must leave the premises reasonably clean and tidy, remove all rubbish, return all keys and security devices, and leave all chattels provided for their benefit. See section 40(1)(e)(ii)-(v) Residential Tenancies Act 1986. The tenant is required to replace worn out smoke alarm batteries during the tenancy. See section 40(1)(ca) Residential Tenancies Act 1986. The tenant must also replace standard light bulbs.
7. The landlord claims an invoice that has concerning ‘features’ as discussed at the hearing. It includes garden work that was not covered in the tenancy agreement, that being “pruning” and “high hedge trimming”.
8. I do not accept this to be within the tenants’ obligations.
9. Given the tenant accepted that the lawns needed to be mowed and some gardening I make an award for a contribution to the invoice claimed.
10. The landlord could not confirm that the veggie garden was in a different, cleaner state at the commencement of the tenancy.
11. On the evidence before me a make an award of $100.00.
Is the tenant responsible for the damage to the premises?
12. A landlord must prove that damage to the premises occurred during the tenancy and is more than fair wear and tear. If this is established, to avoid liability, the tenant must prove they did not carelessly or intentionally cause or permit the
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damage. Tenants are liable for the actions of people at the premises with their permission. See sections 40(2)(a), 41 and 49B RTA.
13. Where the damage is careless, and occurs after 27 August 2019, section 49B RTA applies. If the landlord becomes aware of the damage after 27 August, the damage is presumed to have occurred after that date unless the tenant proves otherwise.
14. Where the damage is caused carelessly, and is covered by the landlord's insurance, the tenant's liability is limited to the lesser of the insurance excess or four weeks' rent (or four weeks' market rent in the case of a tenant paying income-related rent). See section 49B(3)(a) RTA.
15. Where the damage is careless and is not covered by the landlord's insurance, the tenant's liability is limited to four weeks' rent (or market rent). See section 49B(3)(b) RTA. Where insurance money is irrecoverable because of the tenant's conduct, the property is treated as if it is not insured against the damage. See section 49B(3A)(a) RTA.
16. Tenants are liable for the cost of repairing damage that is intentional or which results from any activity at the premises that is an imprisonable offence. This applies to anything the tenant does and anything done by a person they are responsible for. See section 49B(1) RTA.
17. 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.
18. The following damage was caused during the tenancy: There was damage to walls and doors.
19. The damage is more than fair wear and tear, and the tenant has not disproved liability for the damage. Again, I make an award to contribute to the amounts charged as the work was carried out by the landlord who is not qualified, and I do not accept it required the ten hours claimed for the work that was required.
20. I have taken into account betterment and depreciation. The landlord should be returned to the position they would have been in had the tenant not breached their obligations, and should not be better or worse off. In calculating depreciation, I have taken into account the age and condition of the items at the start of the tenancy and their likely useful lifespan.
21. [NAME] claims that the landlord has breached their obligations under the Residential Tenancies Act 1986 in that she gave 63 days notice, in fact it was extended to 72 given the landlord wished to move in but the property weas in fact placed on the market and sold.
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22. 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.
23. On the evidence before me I accept it was common knowledge that the owner was going to sell the home and in fact a caravan was placed at the home for the owner to live in while the property was bought up to a saleable standard.
24. In all of the circumstances I do not accept that an award of damages is appropriate in this case.
25. [NAME] claims the landlord has not lodged the bond with the [COMPANY] within the required time.
26. A landlord must send any bond payment to the [COMPANY] within 23 working days after the payment is received. See section 19(1) Residential Tenancies Act 1986.
27. 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.
28. The landlord failed to lodge the bond. In fact only half of the bond was lodged in June and the balance in August when the tenant bought it to her attention. This is a clear breach.
29. 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.
30. In the circumstances I make an award of damages for $150.00.
31. In the circumstances of both claims I do not make an award for the filing fee given both parties have been partially successful.
[NAME]
17 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 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 tenant was awarded exemplary damages because the landlord failed to lodge the bond within the required timeframe.
- The tenant was awarded a contribution for lawns and gardening because she accepted some work was needed.
- The landlord was awarded rent arrears for the period between the tenancy end date and the actual vacate date.
- The landlord was awarded a contribution for wall and door repairs because the damage was more than fair wear and tear.
❌ Tends to be rejected
- The landlord's claim for garden work like pruning and high hedge trimming was rejected because it was not covered in the tenancy agreement.
- The landlord's claim for the full amount of an invoice with concerning features was not accepted.
- The landlord's claim for 10 hours of wall repair work was not accepted because the work was done by an unqualified person.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The Tenancy Tribunal ruled in favour of the tenant, ordering the landlord to pay $931.00 from the bond and $150.00 in exemplary damages.
What was the dispute about?
The tenant sought the refund of her bond and exemplary damages because the landlord failed to lodge the bond within the required timeframe.
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, breaching their obligations under the Residential Tenancies Act 1986.
Which laws or rules were applied?
The Residential Tenancies Act 1986, specifically sections 19(1) and 19(2), were applied.
What was the argument that mattered most?
The most critical argument was that the landlord failed to lodge the bond within the required timeframe, breaching their obligations 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?
Someone in a similar situation can seek the refund of their bond and exemplary damages if the landlord fails to lodge the bond within the required timeframe.
What evidence or documents mattered?
The judgment does not specify the exact evidence or documents that mattered.