Your Progress 0%

🏠 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.

Key Point: Every tenancy in NZ is governed by the Residential Tenancies Act 1986 (RTA). You must have a written tenancy agreement. Bond is capped at 4 weeks' rent, must be lodged with Tenancy Services (not kept by the landlord), and is refundable. Rent can only be charged maximum 2 weeks in advance. Landlords must provide Healthy Homes compliance. The Tenancy Tribunal ($20.44 filing fee, no lawyers) resolves disputes cheaply.

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

FeatureFixed-TermPeriodic
DurationSet period (e.g. 6 or 12 months)Ongoing until ended
You can leaveOnly at end (or by mutual agreement)28 days' written notice
Landlord can end90 days' notice before end date90 days' notice (no reason required)
Rent increaseOnly if agreement allows (max once/12 months)60 days' notice, max once/12 months
Best forStability, locked-in rentFlexibility 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)

StandardRequirement
HeatingFixed heater in main living area capable of reaching 18 degrees C (heat pump, wood burner, or similar; not unflued gas)
InsulationCeiling and underfloor insulation meeting minimum R-values for the region
VentilationOpenable windows in living areas and bedrooms; extractors in kitchen and bathroom
Moisture/drainageEfficient drainage, no pooling water under house, guttering functional
Draught-stoppingGaps 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

WhoFixed-TermPeriodic
Tenant leavingCan't leave early without agreement. At end: no notice needed.28 days' written notice
Landlord ending90 days' notice before end date90 days' notice (no reason needed)
Both agreeCan end anytime by mutual written agreementCan 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.

Bond (4 weeks): $880
Rent in advance (2 weeks): $440
Contents insurance (first month): $22
Power connection deposit (no credit history): $200
Internet share (router + first month, split 3 ways): $40
Basic kitchenware and bedding: $300
Total before sleeping one night: $1,882

Real-World Story: The Flatmate Who Didn't Pay

1
Jordan, Mia, and Tyler, Wellington

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

2
Aroha, 22, Auckland

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

3
Liam and Ella, Dunedin

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

4
Priya, 20, Hamilton

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 on TradeMe)
  • 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

1. What is the maximum bond a landlord can charge in NZ?
2 weeks' rent
4 weeks' rent
6 weeks' rent
Whatever they want
2. Who holds the bond money during a tenancy?
The landlord
Tenancy Services (government)
The property manager
The tenant's bank
3. How much notice must a tenant give to end a periodic tenancy?
14 days
28 days
60 days
90 days
4. On a joint tenancy, if one flatmate stops paying rent:
The landlord can only chase that flatmate
ALL named tenants are liable for the full rent
The bond covers the shortfall automatically
The tenancy ends immediately
5. Can a landlord charge you a letting fee in NZ?
No, letting fees were banned in December 2018
Yes, up to 1 week's rent
Only for furnished properties
Only through a property manager
6. How much notice must a landlord give for a routine inspection?
24 hours
48 hours
7 days
No notice required
7. What's the filing fee for a Tenancy Tribunal application?
$20.44
$60
$200
Free
8. Which is NOT one of the five Healthy Homes standards?
Heating
Insulation
Double glazing
Ventilation
9. The single best thing to protect your bond is:
Pay extra bond upfront
Take detailed photos on move-in day
Get a lawyer before signing
Only rent from friends
10. How often can a landlord increase rent?
Every 6 months
Maximum once every 12 months, with 60 days' notice
Whenever they want
Only at the end of a fixed term

If you've found a bug, or would like to contact us, or learn more about James Graham and Calculate.co.nz.

Calculate.co.nz is partnered with Interest.co.nz for New Zealand's highest quality calculators and financial analysis.

All calculators and tools are provided for educational and indicative purposes only and do not constitute financial advice.

Calculate.co.nz is proudly part of the Realtor.co.nz group, New Zealand's leading property transaction literacy platform, helping Kiwis understand the home buying and selling process from start to finish. Whether you're a first home buyer navigating your first property purchase, an investor evaluating your next acquisition, or a homeowner planning to sell, Realtor.co.nz provides clear, independent, and trustworthy guidance on every step of the New Zealand property transaction journey.

Calculate.co.nz is also partnered with Health Based Building and Premium Homes to promote informed choices that lead to better long-term outcomes for Kiwi households.

All content on this website, including calculators, tools, source code, and design, is protected under the Copyright Act 1994 (New Zealand). No part of this site may be reproduced, copied, distributed, stored, or used in any form without prior written permission from the owner.

© 2019 to 2026 Calculate.co.nz. All rights reserved.