Flatting for the First Time NZ - Bonds, Tenancy Rights and Costs
🏠 Flatting for the First Time: Costs, Bonds and Tenancy Rights
Moving into your first flat is exciting but comes with legal obligations, costs, and traps that most first-time flatters don't see coming. This guide covers everything you need before signing a tenancy agreement: what bonds actually are and how they're lodged, the difference between fixed-term and periodic tenancies, your rights and responsibilities, what landlords can and can't charge you for, inspections, and how to use the Tenancy Tribunal if things go wrong.
The Tenancy Agreement: Read Before You Sign
By law, every landlord must provide a written tenancy agreement within 21 days of the tenancy starting. Critical things to check:
- Names: Who exactly is on the tenancy? If you're named, you're jointly liable for the full rent, not just your share.
- Type: Fixed-term (e.g. 12 months) or periodic (ongoing, no end date).
- Rent amount and frequency: Weekly or fortnightly. Must be specified.
- Bond amount: Maximum 4 weeks' rent. Must be lodged with Tenancy Services within 23 working days.
- Healthy Homes: Landlord must provide a compliance statement covering insulation, heating, ventilation, moisture, and draught-stopping.
- Outgoings: What's included? Water is usually tenant responsibility if separately metered.
Fixed-Term vs Periodic: Why It Matters
| Feature | Fixed-Term | Periodic |
|---|---|---|
| Duration | Set period (e.g. 6 or 12 months) | Ongoing until ended |
| You can leave | Only at end (or by mutual agreement) | 28 days' written notice |
| Landlord can end | 90 days' notice before end date | 90 days' notice (no reason required) |
| Rent increase | Only if agreement allows (max once/12 months) | 60 days' notice, max once/12 months |
| Best for | Stability, locked-in rent | Flexibility to move |
Joint Liability: The Biggest Risk
If three flatmates are all named on one tenancy agreement, ALL THREE are jointly and severally liable for the full rent. If one flatmate stops paying, the landlord can chase YOU for their share. Options: one head tenant who sub-lets rooms (carries risk but has control), individual tenancies per room (rare but ideal), or joint tenancy with flatmates you trust financially.
Costs Before You Move In
- Bond: Up to 4 weeks' rent (e.g. $350/week = $1,400)
- Rent in advance: Maximum 2 weeks ($700)
- Letting fee: Abolished since December 2018. Landlords cannot charge you.
- Contents insurance: $15 to $30/month. Landlord's insurance covers the building, not your stuff.
- Power connection: May need a deposit of $150 to $300 if no credit history.
- Internet setup: Router delivery plus first month, $80 to $120.
For a $350/week flat, expect roughly $2,200 to $2,500 BEFORE day one.
💰 Bonds, Rent Rules and What Landlords Can't Charge
How Bonds Work in NZ
The bond is security against damage or unpaid rent. It's YOUR money, held by the government (Tenancy Services), not the landlord.
- Maximum: 4 weeks' rent. Landlord cannot ask for more.
- Lodgement: Must be lodged with Tenancy Services within 23 working days. If not, it's an unlawful act.
- Refund: Both parties must agree on deductions. If agreed, refund takes 5 to 10 working days.
- Disputes: Either party can apply to the Tenancy Tribunal to decide.
What CAN Be Deducted from Bond
- Damage beyond fair wear and tear (hole in wall, broken window you caused)
- Unpaid rent
- Cleaning if property not left "reasonably clean and tidy" compared to start
- Carpet cleaning ONLY if it was professionally cleaned before you moved in AND the agreement requires it
What CANNOT Be Deducted
- Fair wear and tear (faded carpet, small nail holes, scuff marks from normal use)
- Pre-existing damage (this is why inspection photos matter)
- "Professional cleaning" unless the flat was professionally cleaned at the start AND specified in the agreement
- Repainting walls already in average condition
- Garden maintenance unless specifically in the agreement
The Property Inspection Report
This is your most important document. At move-in and move-out:
- Photograph EVERYTHING on move-in day: walls, floors, appliances, oven, bathroom, windows
- Note existing damage on the inspection report in detail
- Keep a copy (digital and paper)
- Do the same on move-out day with date-stamped photos
- This evidence wins Tribunal cases. Without it, it's your word against the landlord's.
Rent Rules
- Maximum advance: 2 weeks (or 1 month if paying monthly)
- Increases: Maximum once every 12 months. 60 days' written notice. Must be to market rate.
- Late rent: If 5+ working days late, landlord can issue 14-day notice to remedy. Persistent lateness (3+ times in 90 days) can lead to Tribunal eviction application.
Things Landlords Cannot Charge You
- Letting fees (banned December 2018)
- Key money (illegal)
- Credit check fees (landlord's cost)
- Body corporate levies (landlord's responsibility)
- Council rates (landlord's responsibility)
- Building insurance (landlord's cost; contents insurance is yours)
- Maintenance for normal wear or structural issues
📋 Your Rights, Inspections and Healthy Homes
Healthy Homes Standards (Mandatory Since July 2021)
| Standard | Requirement |
|---|---|
| Heating | Fixed heater in main living area capable of reaching 18 degrees C (heat pump, wood burner, or similar; not unflued gas) |
| Insulation | Ceiling and underfloor insulation meeting minimum R-values for the region |
| Ventilation | Openable windows in living areas and bedrooms; extractors in kitchen and bathroom |
| Moisture/drainage | Efficient drainage, no pooling water under house, guttering functional |
| Draught-stopping | Gaps around windows, doors, and walls sealed |
If the flat doesn't meet these standards, the landlord is breaching the RTA. You can apply to the Tenancy Tribunal. Penalties up to $7,200 per breach.
Landlord Access Rules
- Routine inspections: Maximum 4/year, 48 hours' notice, between 8am and 7pm
- Repairs: 24 hours' notice (except emergencies)
- Emergencies: No notice needed (burst pipe, fire, gas leak)
- Showing to prospective tenants: Only in last 4 weeks, with reasonable notice
- You can refuse entry if proper notice wasn't given
Repairs and Maintenance
Landlord fixes: structural, plumbing, electrical, heating, weatherproofing, locks, smoke alarms. You fix: keeping it clean, reporting damage promptly, replacing smoke alarm batteries.
If something breaks that's the landlord's responsibility: (1) report in writing (email creates a record), (2) give reasonable time, (3) if no response, send 14-day notice to remedy, (4) if still nothing, Tenancy Tribunal. For emergencies (burst pipe, no hot water in winter), arrange repairs yourself and claim costs back.
Ending a Tenancy
| Who | Fixed-Term | Periodic |
|---|---|---|
| Tenant leaving | Can't leave early without agreement. At end: no notice needed. | 28 days' written notice |
| Landlord ending | 90 days' notice before end date | 90 days' notice (no reason needed) |
| Both agree | Can end anytime by mutual written agreement | Can end anytime by mutual agreement |
The Tenancy Tribunal
- Filing fee: $20.44 (as at 2026)
- No lawyers allowed. You represent yourself.
- Jurisdiction: Up to $100,000 for tenancy disputes
- Format: Informal, usually phone or video (30 to 60 minutes)
- Binding decisions enforceable like court orders
- Apply: tenancyservices.govt.nz
The Tribunal strongly favours tenants who have documentation. Photos, emails, inspection reports, written notices: keep everything.
🔢 Worked Examples and Real-World Stories
Example 1: First Flat Upfront Costs
Sam, 19, moves into a 3-bedroom flat in Christchurch. Room is $220/week.
Real-World Story: The Flatmate Who Didn't Pay
Three friends on a joint tenancy at $600/week total. Tyler stops paying after month 3.
What Happened:
- Tyler's share was $200/week. He ghosted the other two.
- Landlord sent a 14-day notice for rent arrears ($800)
- Jordan and Mia had to cover Tyler's share to avoid eviction
- Joint liability meant the landlord could pursue any of the three for the full amount
- Jordan and Mia paid $2,400 of Tyler's rent before finding a replacement
- Took Tyler to the Disputes Tribunal (not Tenancy Tribunal, as this was between flatmates)
- Awarded $2,400 but Tyler had no money. Recovery took 18 months via wage attachment.
Lesson: Joint tenancy = joint financial risk. If a flatmate won't pay, YOU cover or face eviction. Consider a head-tenant arrangement or written flatmate agreement.
Real-World Story: The Bond Dispute Win
Landlord claimed $800 from her $1,200 bond for "cleaning and carpet damage".
What Happened:
- Aroha had taken 47 photos on move-in day showing stained carpet and dirty oven
- Landlord claimed stains were Aroha's fault
- Filed at Tenancy Tribunal ($20.44)
- Presented move-in photos showing identical stains and oven condition
- Tribunal ordered full bond refund of $1,200 plus filing fee
Lesson: Photos win Tribunal cases. Take 50+ photos on move-in day. Date-stamp them. This 10-minute habit saved Aroha $800.
Real-World Story: The Healthy Homes Breach
Rented a villa at $380/week with no fixed heating, visible mould, and single-glazed windows with gaps.
What Happened:
- Raised concerns with landlord via email. Landlord said "not my problem, buy a heater."
- Issued 14-day notice to remedy citing Healthy Homes heating standard
- Landlord ignored it. Filed Tenancy Tribunal application.
- Tribunal found breaches of heating, ventilation and draught-stopping standards
- Ordered: heat pump within 28 days, seal window gaps, $2,000 compensation to tenants
Lesson: You're entitled to a warm, dry home. Document everything, follow the notice process, and the Tribunal will enforce compliance.
Real-World Story: Breaking a Fixed-Term Lease
Signed a 12-month fixed-term lease, got a job offer in Auckland at month 4.
What Happened:
- Asked to leave early. Landlord said: "You're locked in for 12 months."
- Priya offered to find a replacement tenant. Landlord agreed.
- Found a suitable replacement within 2 weeks (advertised online)
- New tenant signed a new agreement. Bond refunded after inspection.
- Cost to Priya: 2 weeks of advertising effort, $0 financial penalty
Lesson: You can't unilaterally break a fixed-term lease, but most landlords agree if you find a suitable replacement. The law says the landlord must take reasonable steps to minimise their loss.
🎯 Test Your Knowledge
Quiz on NZ Flatting Rights and Costs
Situations like yours. The 4 situations worked through above sit alongside 19 more about renting a place, each with the sums shown.