Are New Zealand’s new “pet bonds” the solution to the housing crisis?

The New Zealand government is expected to amend the Residential Tenancies Act, the regulation governing the privately rented housing sector, and add what they call “pet bonds.”

In addition to the renter’s existing bonds—up to 4 weeks—landlords will be able to seek an additional charge of up to 2 weeks’ rent on top of tenants owning a pet.

The amendment in the legislation would make tenants liable for all pet damage to the property beyond “fair wear and tear,” including accidental, intentional or careless damage caused by pets.

It would also make it a requirement for tenants to be able to keep pets only with the landlord’s consent. However, landlords will be permitted to withhold permission “on reasonable grounds.”

Solving a housing crisis

New Zealand’s Minister of Housing Chris Bishop noted that around 64% of Kiwi households own a pet, while 59% of people without pets would like to get one. 

The proposed legislation is expected to simplify the housing situation for tenants wishing to own pets in rental properties. According to David Seymour, Minister for Regulation, the new policies will help fix the problem of “tenants being locked out of rental markets” by landlords unwilling to take risks on pet-owning tenants. 

“There are tenants out there who would be more than happy to pay a little extra in order to live in their preferred home,” he states.

Positive reactions

The Auckland Property Investors Association (APIA) has expressed its support of the announcement. The proposed rules seek to address confusion about the “enforceability of ‘no pets’ clauses in tenancy agreement” by requiring consent from the landlord. 

“For too long, landlords have hesitated to accept pet-owning tenants due to concerns about property damage. This law change has the potential to alleviate those fears and foster mutually beneficial relationships between landlords and tenants,” says APIA’s General Manager Sarina Gibbon.

The Society for the Prevention of Cruelty to Animals New Zealand (SPCA NZ) also supports the legislation. “SPCA NZ is encouraged to see the Government acknowledging the important role that companion animals play in people’s lives and in their communities, and it applauds the goal of making it easier for responsible tenants to own pets,” Scientific Officer Dr. Alison Vaughan told GlobalPETS.

Not welcome

However, renter associations have expressed their concerns surrounding the new rules. 

The Tenants Protection Association (TPA) of Auckland doesn’t agree with any additional charges to tenants during a cost-of-living crisis.

“Landlords are already able to claim back damages of any kind from the current tenants’ bonds. This change will mean that they are now able to ask for 6 weeks’ rent upfront before a tenant moves in, which is a large amount of money considering how high rents in NZ are,” notes TPA Coordinator Angela Maynard to GlobalPETS, adding that this “could possibly act as a deterrent and cause people to be forced to re-home their animals.” 

Advocacy group Renters United referred to the bond as an additional cost to renters as the new rules fail to address the “fundamental power balance” between renters and landlords. The association argues that landlords have no provisions to accept a renter who lodges a ‘pet bond.’