If a refund amount is not agreed
If the tenant and the property manager cannot agree on the amount or costs that should be taken out of the bond , then either the tenant or the property manager ( or both ) can make an application to the Tenancy Tribunal .
The application will then be given to a mediator , who will contact the parties involved and set up a time for a mediation , which may be by phone or in person . Both the property manager and tenant will be able to discuss the claim being made on the bond and with the mediator ’ s help , may be able to reach a mutually agreeable outcome . The mediator will then write an order as to how the bond is to be paid out . This order is a binding court order . If no settlement is reached in mediation , the application will be set down for a hearing in the Tenancy Tribunal .
Bond transfers
Tenants should check with their property manager to see if bond transfers are accepted , as many agencies require full and cleared funds at entry . If accepted , a completed and signed bond transfer form can be used to transfer the bond money from an old tenancy to a new one . The form must be signed by both the old and new property managers . The new property manager should then send the completed form to the Ministry of Business , Innovation and Employment . Please note that bond transfers usually take up to 10 working days to process .
If the old bond amount is more than the new bond , the Ministry sends the tenant a refund
( by direct credit ) for the extra money . If the new bond amount is more than the old bond , then the tenant gives the new landlord the extra money to make up the balance . The bond transfer form and a cheque for the balance must then be sent to the Ministry of Business , Innovation and Employment within 23 working days of the new tenancy starting .
Important things to note around bond refunds
• A property manager does not have to release any of the bond before the tenancy ends in order for there to be sufficient bond for the next rental property ( the same goes for any bond transfers ).
• There is no required timeframe around how long after a tenancy ends a bond should be refunded . However , the time-frame should be reasonable and if there are any delays , these should only be for legitimate reasons , e . g awaiting outstanding invoices or quotes , etc .
• Although it is recommended , the tenants do not have to be present when the final inspection is carried out . The property manager has the right to complete the inspection on their own .
• Failure to hand back all the keys for a property can delay bond refunds or result in charges being deducted for lock and key replacements . Please ensure that all keys are accounted for at the end of the tenancy .
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