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When do I need to refund the bond?

When do I need to refund the bond?

Are there any laws around when bonds need to be paid back?

By: NZ PROPERTY INVESTOR

29 July 2024

Q: My tenant has given notice to vacate while I’m overseas. Can I wait until I return, about 10 days after they leave, to do the final inspection and deal with the bond refund? Will this breach any laws?

A: Under New Zealand’s Residential Tenancies Act (RTA), there’s no explicit timeframe for completing the final inspection and bond refund after a tenancy ends. However, prompt action is crucial for both parties. Bonds are significant for tenants, often needed for moving costs. It’s essential to complete and submit the bond refund form to Tenancy Services swiftly to ensure a timely refund.

If disagreements arise, the Tenancy Tribunal can intervene. Note that if you’ll be abroad for over 21 consecutive days, it’s a legal requirement under the RTA to appoint an agent in NZ. This agent, who doesn’t have to be a property manager, must be trusted to fulfil the necessary obligations. Remember to promptly notify the tenant of the agent’s details and inform Tenancy Services.

Consider conducting a pre-exit inspection before travelling to address any issues beforehand. This allows your appointed agent to handle the final inspection, including checking cleanliness, and report back to you on any pre-existing or new issues. Your appointed agent can also submit the bond refund form to Tenancy Services on your behalf, ensuring a smooth transition even while you’re abroad.

Ryan Weir, Property Scouts https://www.propertyscouts.co.nz

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