Negotiating Pet Bonds (Legal Status)

A specific “pet bond” is technically illegal in New Zealand if it results in the total bond exceeding the maximum of four weeks’ rent allowed under the Residential Tenancies Act 1986. Landlords cannot charge extra “key money” or security deposits specifically for pets; however, they can request the maximum permissible bond to cover potential risks.

Finding a rental property in New Zealand is challenging enough without the added layer of negotiating for a furry family member. For pet owners, the rental market often feels like a closed door. A common point of confusion—and contention—is the concept of a “pet bond.” Many tenants are willing to pay extra to secure a home for their dog or cat, and many landlords want extra security against scratched floors and flea infestations. However, the legal landscape in New Zealand is strict, and navigating it requires a deep understanding of the Residential Tenancies Act (RTA).

This guide serves as the definitive resource for tenants and landlords alike, clarifying the legalities of pet bonds, exploring enforceable alternatives, and providing strategies for negotiating a tenancy agreement that protects both the property and the tenant’s rights.

The Legal Status: Are Pet Bonds Legal in NZ?

The short answer is no, a distinct “pet bond” is not legal in New Zealand. Unlike some states in Australia or regions in the United States where landlords can legally request an additional deposit specifically to cover pet-related damage, New Zealand law prohibits this.

The governing legislation is the Residential Tenancies Act 1986 (RTA). Under this Act, the rules regarding bonds are explicit and rigid. The law aims to protect tenants from excessive entry costs while providing landlords with a reasonable level of security. When a landlord or property manager asks for a “pet bond” on top of a standard bond, they are likely breaching the provisions regarding “key money.”

Key money is defined as any sum of money demanded by a landlord for the granting, continuance, or renewal of a tenancy, other than rent or the standard bond. Charging key money is an unlawful act, and landlords found doing so can face exemplary damages awarded by the Tenancy Tribunal.

The Four-Week Bond Cap Explained

To understand why pet bonds are illegal, one must understand the bond cap. Under the RTA, a landlord can require a bond of up to four weeks’ rent. This is the absolute ceiling.

Here is how the math works in practice:

• Scenario A: The rent is $600 per week. The landlord asks for a bond of $2,400 (4 weeks). This is legal.
• Scenario B: The rent is $600 per week. The landlord usually asks for a 3-week bond ($1,800) but, because you have a dog, asks for a 4-week bond ($2,400). This is legal because it does not exceed the cap.
• Scenario C: The rent is $600 per week. The landlord asks for a 4-week bond ($2,400) plus an extra $300 “pet bond.” This is illegal.

In Scenario B, the landlord is effectively using the legal bond limit to cover the perceived extra risk of the pet. This is the most common and lawful way landlords protect themselves. However, once the threshold of four weeks’ rent is reached, not a single dollar more can be taken as a security deposit, regardless of whether it is labeled a “pet bond,” “security fee,” or “cleaning deposit.”

For authoritative information on bond limits, you can refer to Tenancy Services, which outlines the specific regulations governing bond collection and lodgment.

Commercial Cleaning and Fumigation Clauses

Since landlords cannot charge a monetary pet bond, many attempt to mitigate risk by inserting special clauses into the tenancy agreement. The most common of these are requirements for professional carpet cleaning and flea fumigation at the end of the tenancy. The enforceability of these clauses is a nuanced area of tenancy law.

The “Reasonably Clean” Standard

The RTA states that a tenant must leave the premises “reasonably clean and reasonably tidy.” Recent rulings by the Tenancy Tribunal have reinforced that landlords cannot enforce a blanket clause requiring professional commercial cleaning if the tenant has already cleaned the property to a reasonable standard themselves.

If you own a steam cleaner and leave the carpets spotless, a landlord cannot force you to pay a professional company simply because a clause in the contract says so. Such clauses are often deemed unenforceable because they attempt to contract out of the RTA provisions.

The Fumigation Exception

However, pets introduce a variable that goes beyond standard dirt: pests. While a landlord cannot automatically demand professional carpet cleaning, specific agreements regarding flea fumigation are often viewed differently. If a tenant introduces a pet, they introduce the risk of fleas.

Many tenants voluntarily agree to a clause stating they will have the carpets professionally cleaned and fumigated upon vacating. While a tenant could theoretically challenge this at the Tribunal later (arguing the house was already clean), doing so acts in bad faith if the agreement was made to secure the property. Furthermore, if fleas are found, the tenant is liable for the extermination costs regardless of the contract clauses, as this constitutes damage/nuisance.

Pet Rent: A Legal Loophole?

With bonds capped and cleaning clauses scrutinized, landlords have turned to “Pet Rent” as a primary method of risk mitigation. Is this legal? generally, yes.

Landlords are free to set the rent at market rate. If a landlord advertises a property for $600 but agrees to rent it to a tenant with a dog for $620, this is generally considered a lawful negotiation of the weekly rent, provided it is agreed upon before the tenancy commences.

Pros for Tenants:

• It secures the property.
• It spreads the cost over time rather than a lump sum.

Cons for Tenants:

• Over a year, $20 extra a week adds up to $1,040, which is non-refundable (unlike a bond).
• It inflates the base rent for future increases.

It is crucial to note that landlords cannot arbitrarily increase rent during a fixed-term tenancy just because you get a pet halfway through, unless the agreement allows for a variation. However, at the start of a tenancy, agreeing to a slightly higher weekly rate is the most common legal mechanism for “paying” for the privilege of having a pet.

How to Offer Security Without Breaking the Law

If you are a tenant, you cannot legally offer a pet bond, and the landlord cannot accept it. So, how do you compete with non-pet owners? You must offer security in the form of information and character references rather than cash.

1. The Pet Resume (CV)

Treat your pet like a job applicant. Create a professional document that includes:

• Photo: A cute, non-threatening photo of your pet.
• Details: Breed, age, size, and desexing status.
• Training: Certificates from puppy preschool or obedience training.
• Personality: Describe them as “quiet,” “house-trained,” and “friendly.”

2. Pet References

Written references from previous landlords are gold. A statement saying, “The dog caused no damage and the property was left immaculate,” is worth more than a cash bond to a sensible landlord. If you own your own home previously, a reference from a neighbor regarding noise (or lack thereof) can be helpful.

3. Third-Party Liability Insurance

Some renters’ insurance policies include liability cover for damage caused by pets. Providing proof of this insurance to a landlord can alleviate their fear of catastrophic damage (e.g., a dog chewing through a wall) that the bond might not cover.

The Landlord’s Perspective: Mitigating Risk

To negotiate effectively, tenants must understand the landlord’s mindset. Landlords are not necessarily anti-pet; they are anti-risk. The risks they associate with pets include:

1. Damage to Soft Furnishings: Urine in carpets is notoriously difficult to remove, often requiring full carpet replacement.
2. Scratching: Doors, frames, and hardwood floors are expensive to repair.
3. Noise Complaints: Barking dogs can lead to disputes with neighbors and council noise control, which becomes a headache for the property manager.
4. Lingering Odors: Even after a tenant leaves, pet smells can deter future tenants.

When a landlord refuses a pet, they are making a business decision. By addressing these specific points in your application (e.g., “My dog is crate trained and never left inside unsupervised,” or “I have liability insurance specifically for accidental damage”), you dismantle their objections one by one.

Fair Wear and Tear vs. Pet Damage

A critical legal distinction in New Zealand tenancy law is “fair wear and tear.” Tenants are not liable for the normal depreciation of a property. However, damage caused by pets rarely falls under this category.

• Wear and Tear: Carpet piling flattening in high-traffic areas over five years.
• Damage: Claw marks on the curtains or urine stains on the carpet.

Tenants must understand that they are fully liable for intentional or careless damage. While a pet cannot form “intent,” the owner’s failure to prevent the damage is often viewed as careless. If the damage exceeds the 4-week bond, the landlord can apply to the Tenancy Tribunal for the excess costs. This is a significant financial risk for tenants, emphasizing the importance of rigorous cleaning and maintenance during the tenancy.

Final Thoughts on Securing a Pet-Friendly Home

While the “pet bond” is a legal fiction in New Zealand, the negotiation of pet tenancies is very real. The law prevents financial exploitation through excessive bonds, but it leaves room for market-based solutions like pet rent and rigorous vetting.

For tenants, the key to success lies in transparency, preparation (Pet CVs), and proving reliability. For landlords, protection comes from thorough reference checks and regular inspections rather than illegal monetary deposits. By understanding the boundaries of the Residential Tenancies Act, both parties can enter into an agreement that provides a home for the tenant (and their pet) and peace of mind for the property owner.

For more details on your rights and responsibilities, consult the Citizens Advice Bureau regarding pets in rental properties.

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