From 1 December 2025, changes to the Residential Tenancies Act will make it easier for tenants with pets to find a home, and safer for landlords to say yes. The new pet bond system allows landlords to request an additional bond of up to two weeks’ rent when approving tenants with pets.
For investors, this reform could open up a broader tenant pool while providing greater financial protection against pet-related damage.
How the Pet Bond System Works
Under the new rules, landlords can now request a pet bond of up to two weeks’ rent, on top of the standard tenancy bond (which remains capped at four weeks). This bond will be lodged through Tenancy Services, just like the regular tenancy bond.
Here’s how it works in practice:
New tenancies: If tenants move in with pets, the landlord can require a pet bond at the start.
Existing tenancies: A pet bond can be added later if a tenant wishes to introduce a new pet.
Rent increases: If rent rises, landlords can ask for a pet bond top-up to keep it aligned.
When the pet leaves: The pet bond can be refunded once the pet is no longer living at the property.
When Landlords Can Say No to Pets
Tenants must still obtain landlord consent before keeping a pet. However, landlords can only withhold consent on reasonable grounds.
Reasonable grounds may include:
- The property’s type or location (for example, apartments with body-corporate rules that prohibit pets).
- Health and safety risks to other occupants or neighbours.
- Unsuitability of the property for certain animals (for example, large dogs in small units).
The new rules aim to strike a balance, giving landlords protection while ensuring that responsible pet owners are not unfairly excluded from the rental market.
Who Is Liable for Pet Damage?
One of the most important aspects for investors is liability. Tenants will now be fully liable for all pet damage beyond fair wear and tear.
This clarification gives landlords greater confidence, as it closes a long-standing grey area under the previous law. If a pet causes damage, for example to carpets, walls or gardens, the tenant can be required to cover the repair costs, with the pet bond available to offset these expenses.
It’s still essential for landlords to document the property’s condition carefully, using entry and exit inspections and clear tenancy agreements that outline pet rules.
General tenant damage vs pet damage
Under existing Tenancy Tribunal case law (following the Holler & Rouse v Osaki decision and later amendments to the Residential Tenancies Act), tenants are generally not liable for accidental damage if the landlord is insured and could claim under that policy. That’s why, for ordinary tenant damage, landlords usually have to go through their insurance first.
Pet damage is treated differently
The new pet bond provisions explicitly recognise that pets can cause unique types of damage, and that tenants take on responsibility for that risk when they have pets. Because of this, pet damage is not covered by the same “accidental damage” protection that applies to tenants themselves.
That means:
- Landlords can claim directly against the tenant or the pet bond without going through insurance.
- They do not have to first make an insurance claim unless their policy specifically requires it.
This is a key shift — it ensures landlords have a clearer path to recover costs for pet damage, and it reinforces that tenants must take full responsibility for the actions of their animals.
What This Means for Property Investors
The new framework offers several practical benefits for investors:
- Wider tenant pool: Around 64 percent of New Zealand households have at least one pet, meaning pet-friendly listings may attract more applications.
- Financial security: The extra bond offers a buffer for damage, reducing the perceived risk.
- Market differentiation: Allowing pets could make a property stand out in a competitive rental market.
However, investors should still approach pet tenancies with clear policies. For example:
- Specify what types of pets are permitted.
- Set reasonable conditions, such as professional carpet cleaning at the end of the tenancy.
- Maintain insurance coverage that aligns with pet-related risks.
Working with a professional property management team can help ensure these policies are applied consistently and fairly.
Preparing for the 1 December Start Date
Landlords and investors can take a few simple steps to prepare:
- Update tenancy agreements to include pet clauses that reflect the new law.
- Check your bond process and ensure you’re ready to lodge, top-up or refund pet bonds through Tenancy Services.
- Review insurance policies to confirm that pet damage is covered.
- Communicate early with tenants about any changes to pet permissions or bond requirements.
By planning ahead, investors can turn the new rules into an opportunity, offering flexibility while maintaining control and protection.
Conclusion
Pet bonds mark a significant shift for New Zealand’s rental sector. For investors, they create a fairer, more transparent framework for allowing pets, while minimising the risks that once made many landlords say no.
Taking a proactive approach now — updating tenancy documents, insurance, and communication — will help ensure the changeover is smooth when the new law takes effect on 1 December 2025.
