bond return
📖 What is bond return? Meaning and definition
When a tenancy in New Zealand concludes, the bond money, which is held by Tenancy Services, needs to be returned. This process is called a bond return. The Tenancy Tribunal often deals with applications related to the bond, including claims for its return by either the landlord or the tenant.
For example, a landlord might seek the return of the bond to cover costs like rent arrears or cleaning expenses after the tenancy has ended. Conversely, a tenant might apply for the bond to be returned to them, especially if the landlord's claims for compensation or arrears are dismissed by the Tribunal.
The Tenancy Tribunal will determine who is entitled to the bond based on the evidence presented. This can happen alongside other claims, such as those for rent arrears, compensation, or termination of the tenancy. The Tribunal's order will specify who Tenancy Services should pay the bond to, and this payment is typically made immediately following the order.
In some cases, the decision on bond return might be delayed if there are ongoing legal processes, such as an appeal of a Tenancy Tribunal decision. The Tribunal may decide to hear all related matters, including the bond return, together once the outcome of an appeal is known.
📋 Requirements
- The tenancy has ended.
- An application for bond return has been made to the Tenancy Tribunal.
- The Tenancy Tribunal has made a determination regarding claims for rent arrears, compensation, or other costs.
📝 Procedure
- A landlord or tenant applies to the Tenancy Tribunal for a bond return.
- The Tenancy Tribunal hears the application, often alongside other claims like rent arrears or compensation.
- The Tribunal makes a decision on who is entitled to the bond money.
- Tenancy Services is ordered to pay the bond to the determined party immediately.
💡 Examples
- After a tenancy was terminated for rent arrears, the Tenancy Tribunal ordered Tenancy Services to pay the $3,200 bond to the landlord to cover part of the outstanding rent.
- A tenant was entitled to the return of their $2,250 bond after the landlord's claims for rent arrears and compensation were dismissed by the Tenancy Tribunal.
- A landlord sought the return of the bond to cover clean-up costs after a fixed-term tenancy ended, with the decision on the bond return being postponed pending the outcome of an appeal in the District Court.
❓ Frequently asked questions
Who can apply for a bond return?
Either the landlord or the tenant can apply to the Tenancy Tribunal for a bond return after a tenancy has ended.
What factors does the Tenancy Tribunal consider for a bond return?
The Tribunal considers claims for rent arrears, compensation for damages, cleaning costs, and any other breaches of tenancy obligations by either party when deciding who gets the bond.
What if there are ongoing appeals related to the tenancy?
The Tenancy Tribunal may decide to delay the bond return decision until an appeal is resolved, so all related matters can be determined together in one hearing.
How quickly is the bond paid out after a Tribunal order?
Once the Tenancy Tribunal issues an order, Tenancy Services is typically instructed to pay the bond to the specified party immediately.
Can a landlord claim the bond for clean-up costs?
Yes, a landlord can apply to the Tenancy Tribunal claiming clean-up costs following the end of a tenancy and seek the return of the bond to cover these expenses.
What happens if the landlord's claims are dismissed?
If the landlord's claims for rent arrears or compensation are dismissed, the tenant is typically entitled to the return of the bond.