Understanding the current challenges, what they mean for you, and how to reduce the risk of delays or disputes.
Many tenants and landlords across New Zealand may have noticed delays in bond-related transactions over recent months. These delays follow the introduction of Bond Hub, the new digital bond management platform implemented by Tenancy Services as part of the most significant overhaul of New Zealand's bond system in more than 30 years.
While the move to a modern digital platform is intended to improve efficiency and deliver a better long-term experience for everyone involved in renting property, the transition has not been without its challenges. Property managers, landlords and tenants throughout the country are currently experiencing a range of issues, including delays in bond processing, difficulties accessing bond information, missing notifications, and longer-than-expected timeframes for some bond refunds and bond transfer requests.
At Property Brokers, we know that bond matters are important. For tenants moving home, bond refunds often play an important role in their plans and finances. For landlords, bonds provide reassurance and protection when tenancy issues arise. When delays occur, they can understandably cause frustration for everyone involved.
Our Property Management team has been working closely with Tenancy Services, MBIE and our software providers to raise concerns and help identify practical solutions. We have provided detailed examples of issues being experienced by our branches and clients, and we continue to advocate strongly for prompt resolution across all affected matters.
While some current delays are outside anyone's control, there are several steps landlords and tenants can take to help prevent avoidable bond-related problems throughout a tenancy.
For Landlords:
According to Tenancy Services, landlords or Property Mangers working on behalf of landlords must provide tenants with a receipt for any bond received and lodge the bond with Tenancy Services within 23 working days of receiving it. Failure to do so can result in penalties.
If your property is currently being managed by a Property Management company like Property Brokers, then we action and document all of this for you as part of your management agreement.Landlords/Property Managers can also help minimise future disputes by:
- Completing a thorough property inspection with tenants at the start of the tenancy and ensuring both parties sign the inspection report.
- Conducting regular inspections throughout the tenancy to ensure the property is being maintained appropriately.
- Addressing maintenance issues promptly when they arise.
- Updating Tenancy Services within 10 working days if ownership, property management arrangements or tenant details change.
- Carrying out a final inspection with tenants before they move out and discussing any outstanding issues before submitting a bond refund request.
For Tenants:
Tenants also play an important role in ensuring bond matters are resolved smoothly.Tenancy Services recommends that tenants:
- Participate in a detailed property inspection at the beginning of the tenancy and keep copies of all relevant documentation.
- Contact their landlord or property manager if they have not received bond lodgement confirmation from Tenancy Services within six weeks of paying their bond.
- Report maintenance or repair issues to their landlord or property manager as soon as they arise.
- Notify both their landlord or property manager and Tenancy Services if their contact details change.
- Advise their landlord or property manager of any change in tenants during the tenancy.
- Carefully review and agree to any bond refund amounts before confirming a refund request at the end of the tenancy.
One of the simplest ways to avoid bond disputes is to maintain accurate records throughout the tenancy, which Property Brokers complies with as part of our service to both landlords and tenants.
Property inspection reports, photographs, maintenance requests and written communication are all valuable if questions arise about the condition of a property or the allocation of bond funds at the end of a tenancy.
Landlords and tenants need to understand that many of the current Bond Hub challenges originate in external systems and processes beyond the direct control of Property Brokers. While our teams are doing everything possible to progress bond-related matters, there are occasions when we are reliant on information, processing timeframes, and technical resolutions from third-party organisations before issues can be fully resolved.
We also want to acknowledge the incredible effort of our Property Management teams across the country. Behind the scenes, our people are spending significant time following up outstanding transactions, investigating discrepancies, liaising with Tenancy Services and keeping clients informed wherever possible. Their commitment to supporting both tenants and landlords throughout this period has been exceptional.
Like many across the industry, we share the frustration of these delays. However, we remain confident that ongoing collaboration between Tenancy Services, software providers and property management companies will help resolve current issues and improve the system over time.
In the meantime, we ask for patience and understanding from all parties while these matters are worked through. We also remind everyone that our Property Managers are working hard to achieve the best possible outcomes for their clients. We appreciate the understanding shown by the vast majority of our landlords and tenants and thank you for your patience as the industry navigates this significant transition.
Property Brokers remains committed to keeping clients informed, supporting our clients through the Bond Hub transition, and advocating for efficient, fair and timely outcomes for all parties involved.
For more information about bond responsibilities and ways to prevent bond-related issues, visit Tenancy Services' guidance on preventing problems with bonds and improving tenancy bond service.
