By Dave McCarry | 3 September 2026

End-of-Tenancy Bond Disputes: What Wellington Landlords Need to Know

This is one of those topics that Wellington landlords only think carefully about once something has gone wrong. A tenant leaves the property in a state, there are deductions to make, conversations get awkward - and then the landlord realises they did not have a clear record of the property's condition when that tenant moved in.

I walk landlords through this process regularly. Here is exactly how it works under the new Bond Hub system, what you can claim, and how to protect yourself when things get contested.

Act Quickly After the Tenancy Ends

Bond in New Zealand is held by Tenancy Services (part of MBIE), not by you or your property manager. When a tenancy ends, the bond does not automatically release to anyone - it waits for an instruction through Bond Hub.

Since 29 June 2026, the refund process works like this. The landlord normally submits the bond refund request through Bond Hub - whether claiming a portion of the bond, the full amount, or agreeing the tenant gets it all. The tenant receives a notification and has 12 working days to respond. Tenancy Services can assist a tenant in situations where the landlord has not submitted a request, but the standard process starts with the landlord. If the tenant disagrees with your proposed split, the request is cancelled and the matter needs to go to the Tenancy Tribunal. If the tenant does not respond within 12 working days, Tenancy Services processes the refund as you submitted it.

The key message: do not wait. Tenancy Services recommends submitting the refund request as soon as possible after the tenancy ends. There is no specific statutory deadline for making a bond claim, but the longer you leave it, the more time you give the outgoing tenant to submit their own version of events first - and the harder it becomes to gather clean, contemporaneous evidence. Get your ingoing condition report and exit inspection photos in order on the day the tenant vacates, or as close to it as possible, and submit through Bond Hub promptly.

Since 29 June 2026, landlords process all bond transactions through Bond Hub or compatible property management software. Tenancy Services retains some limited non-digital assistance for tenants in certain circumstances, but the landlord-facing process is now fully online.

Damage vs. Fair Wear and Tear: Where Most Disputes Start

The single most contested area in bond disputes is the line between damage and fair wear and tear. Understanding this distinction clearly is the difference between a successful claim and an expensive lesson.

Fair wear and tear is the natural deterioration of a property through ordinary, everyday use. It is not the tenant's fault. It includes things like:

• Minor scuffs and marks on walls from furniture and normal movement
• Fading of curtains from sun exposure
• Worn carpet in high-traffic areas (hallways, living rooms) after a long tenancy
• Small nail holes from picture hanging
• Gradual dulling of paint over several years

You cannot claim bond for fair wear and tear. Attempting to do so will likely be rejected at the Tenancy Tribunal, and it undermines an otherwise solid claim.

Damage is something beyond ordinary use, caused by the tenant's careless or intentional behaviour. It can include:

• Large holes in walls or doors
• Carpet stained by an unaddressed spill
• Broken window latches, towel rails, or door handles
• Cigarette burns on benchtops or carpets
• Mould where it can be shown the tenant failed to ventilate the property adequately and the mould resulted from their careless behaviour, rather than pre-existing structural issues or normal condensation
• Missing or broken fixtures that were present and documented at the start of the tenancy

You can claim bond for damage. But you need evidence that the damage was not there at the start of the tenancy, and that the tenant caused it through careless or intentional behaviour rather than ordinary use. Liability can be a nuanced question, particularly for things like mould, where the Tribunal will look carefully at whose conduct was the operative cause.

There is also an important liability cap that many landlords do not know about. For careless damage, a tenant's liability is generally limited to the lower of four weeks' rent or the landlord's insurance excess. So if your tenant carelessly damaged the carpet and your insurance excess is $1,000, the most you can recover from that tenant for the careless damage is $1,000 — even if the repair costs more. Intentional damage is treated differently and is not subject to this cap. This is one reason landlord insurance cover and excess levels matter: a lower excess gives you more protection when careless damage occurs.

One important exception: pet damage has its own rules since 1 December 2025. Where a tenant has consent to keep a pet, pet-related damage is governed by the pet consent provisions introduced under the Residential Tenancies Amendment Act and is not subject to the standard careless-damage cap in the same way. If you have a tenant with a consented pet, get specific advice on how damage from that pet would be handled.

One important nuance on wear and tear: the longer the tenancy, the more wear is expected. A tenant who has lived in a property for five years has done more to wear it than one who was there for 12 months. Adjudicators factor this in. A well-worn carpet after a five-year tenancy may attract little or no compensation, depending on its age, condition at the start, and the nature of the damage.

Your Documentation Is Everything

If a dispute ends up at the Tenancy Tribunal, the adjudicator looks at evidence. A landlord who shows up with a well-documented ingoing condition report, timestamped photographs from the start of the tenancy, and matching photos from the exit inspection is in a much stronger position than a landlord relying on memory and a rough estimate.

A proper ingoing condition report should be signed by both you and the tenant at the start of the tenancy. It should describe the condition of every room, every fixture, and every surface. Photographs should accompany it, dated and stored somewhere you can retrieve them one, two, or three years later.

When the tenancy ends, conduct the exit inspection against that same report, room by room. Photograph anything that has changed. Note the difference clearly: what the ingoing report recorded, what it looks like now. That comparison is the foundation of a bond claim.

If you are self-managing and have not been doing this consistently, this is exactly the kind of process a professional property manager handles on your behalf. Good tenant selection reduces the likelihood of disputes, but thorough documentation protects you even when a tenancy goes sideways.

What You Can Claim From the Bond

Under the Residential Tenancies Act 1986, bond can be used to cover:

• Unpaid rent — the most common claim alongside damage
• Damage to the property beyond fair wear and tear, caused by the tenant's careless or intentional behaviour
• Cleaning costs where the property was not left in a reasonably clean and tidy condition - a professional clean may be a reasonable expense if that is what is required to restore the standard, but the standard itself is reasonably clean and tidy, not necessarily professionally cleaned
• Unpaid utilities where the landlord is ultimately liable
• Other costs the tenancy agreement specifies, where those terms are lawful

If the total you are claiming exceeds the bond amount, you have two paths. First, lodge the bond claim to recover what the bond covers. Then make a separate application to the Tenancy Tribunal for the shortfall. The Tribunal can make a monetary order against the tenant for amounts the bond does not cover.

If the tenant has rent arrears as well as damage to the property, you can pursue both in a single Tribunal application. You do not need to file separately.

How the Refund Process Works Under Bond Hub

Once the tenancy ends, the process plays out like this:

If both parties agree on the split of the bond, you both confirm through Bond Hub. Where both parties have confirmed, Tenancy Services aims to refund the bond the following business day. This is the fast, clean outcome.

If the landlord submits first and the tenant agrees (but does not respond immediately), allow up to 10 working days for Tenancy Services to process the refund once a completed application is received. If the tenant disagrees within 12 working days, the request is cancelled. The parties need to either negotiate a new agreement or apply to the Tenancy Tribunal. If the tenant does not respond within 12 working days, Tenancy Services processes the refund as submitted by the landlord.

If the matter goes to the Tribunal, both parties present their evidence and an adjudicator makes a binding order on how the bond is divided. The Tribunal's decision is binding, though there are limited rights to seek a rehearing or appeal to the District Court. How long the process takes depends on the complexity, urgency, and location of the matter — there is no fixed timeframe.

On the Tribunal scheduling pilot currently running from August to October 2026: it can prioritise certain applications involving termination and possession for rent arrears, as well as significant health and safety matters. It does not cover bond-only disputes, which proceed through standard scheduling.

When the Bond Is Not Enough

Landlord insurance exists precisely for situations where the bond does not cover the full cost of damage. A standard house insurance policy does not cover tenant-specific risks: deliberate damage, meth contamination, loss of rent, or tenant default. Landlord insurance adds these protections.

For Wellington specifically, earthquake risk has pushed some insurers to reduce new policy issuance in recent years. It is worth actively reviewing your coverage — not just renewing automatically — to confirm you have the tenant damage and loss-of-rent components you actually need.

Your specific exposure depends on your property's age, condition, and tenancy history. That is where a proper review with your insurer comes in.

Frequently Asked Questions

How quickly should a Wellington landlord submit a bond refund request after a tenancy ends?

Tenancy Services recommends submitting your bond refund request through Bond Hub as soon as possible after the tenancy ends. There is no specific statutory deadline for making a bond claim, but acting promptly matters: it gives the tenant less time to submit a conflicting request first, and the sooner you document and submit, the stronger your position if the matter goes to the Tenancy Tribunal.

What is the difference between damage and fair wear and tear in a rental property?

Fair wear and tear is the natural, gradual deterioration of a property through ordinary use over time: faded curtains, minor scuffs on walls, worn carpet in high-traffic areas. Damage is something beyond normal use caused by the tenant's careless or intentional behaviour — large holes in walls, broken fixtures, carpet stained from a pet accident. You can claim bond for damage; you cannot claim it for fair wear and tear. The longer the tenancy, the more wear and tear is expected.

What if the bond does not cover all the damage?

If the cost of repairs exceeds the bond amount, you can apply to the Tenancy Tribunal for a monetary order against the tenant for the shortfall. You will need evidence: your ingoing condition report, photographs, and repair invoices. This is one reason landlord insurance matters — it can cover the gap between what the bond pays and what remediation actually costs.

Can I claim unpaid rent from the bond?

Yes. Unpaid rent is a valid bond claim under the Residential Tenancies Act 1986. You can claim for rent arrears, unpaid utilities where you are liable, and damage in the same bond application. If the total owed exceeds the bond, apply to the Tenancy Tribunal for the remainder.

What happens if the tenant disputes my bond claim at the Tenancy Tribunal?

You will both present your evidence and an adjudicator will make a binding order on how the bond is divided. The Tribunal's decision is binding, though there are limited rights to seek a rehearing or appeal to the District Court. Strong documentation - photos, a signed ingoing condition report, and itemised repair invoices — is your best asset at the Tribunal.

Strong documentation and prompt action give landlords a much better chance of resolving bond disputes successfully. The two most common reasons landlords come away from these situations short is having no clear record of what the property looked like at the start of the tenancy, and leaving it too long before engaging the process.

If you would rather have someone else manage the exit inspection, bond process, and any dispute resolution on your behalf, that is exactly what we do at Propertyscouts Capital City. Get in touch with Dave to talk about full property management in Wellington.

About Dave McCarry
Dave McCarry is the owner of Propertyscouts Capital City in Wellington and has worked in property, business, and customer service for many years. Since becoming a property investor in 2009, he has built a strong reputation for practical advice, strong tenant selection, and hands-on property management focused on protecting landlords' investments and maximising returns.