Housing New Zealand is reducing the financial burden of moving into a state house through its new bond policy.
From Sunday 7 April 2019 a bond will no longer be collected from new tenants. Housing New Zealand’s policy has been to collect two weeks income-related rent as a bond.
The new policy will reduce the barriers for people getting into state housing. People who are not in a home often cannot easily afford to pay a bond upfront. The Ministry of Social Development (MSD) often pays the bond on their behalf which is recoverable.
This decision to not charge a bond for new tenants supports Housing New Zealand’s social objectives of getting people who need help the most into good quality, warm, dry, and healthy rental housing, without the stress of financial barriers.
While new tenants will no longer need to a pay bond, they are still bound by their obligations as a tenant under the Residential Tenancies Act 1986 (RTA).