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Saturday, June 21, 2025

What you need to know about the new pet bond scheme

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ACT Party leader, David Seymour describes a new law allowing pet bonds as a weird and beautiful collision between love for pets, a strong desire to reduce domestic violence, and the free market.

The policy was part of the National/ACT coalition agreement and will allow landlords to charge up to two weeks’ extra bond for tenants with pets.

The pet bond policy was introduced alongside other changes to the Residential Tenancies Act.

David Seymour, who is also Minister of Regulation, told The Wag that a visit to Auckland’s Pet Refuge, a charity which provides temporary shelter to pets so their owners can find a safe home, was a big influence.

“I realized when visiting Pet Refuge, which is a fabulous charity, that there is a real problem with people who are in abusive relationships escaping, often their pet is used as leverage over them.” 

He said research showed a correlation between abusing animals and abusing people. 

“It’s all pretty gritty stuff, but one thing for sure, if people in abusive situations can get their pet out, then they can get out of bad situations.

And sometimes it’s the fear of losing their pet, or letting down their pet, or leaving their pet in an abusive situation that actually keeps people in danger.” 

The policy would then help victims of domestic abuse find a new home, as well as dog-owners in general, he said.

“If you need to rent,  it can be pretty difficult to get a place where you can go with a pet.

Now, you can understand that from a landlord’s point of view. They can’t charge any additional bond for any damage a pet may cause, but they probably do want to help.” Seymour said.

“And so all we’ve really done is, I guess, fix a missing market for pet bonds, or for people who want to find a place for their pet, they can pay up to two weeks extra bond, and that should increase the number of landlords willing to accept pets.”

Seymour believes the new law will see the rental market operate more efficiently.

“That’s the free market part of this beautiful collision.  Efficient markets really matter, and that means that you want willing buyers and willing sellers or willing landlords and willing tenants to be able to make as many deals as quickly as possible so everyone finds themselves in the right place at the right time. 

I mean, that’s basically what economic efficiency is. And just by opening up another option to negotiate up to two weeks additional bond for pets, we’ve created the conditions to increase the efficiency of the market.” 

“Ultimately just means people are more likely to get a better deal.”

It’s expected the new law will come into operation later this year.

Changes to the legislation include:

  • Introducing a pet bond (set at a maximum of two weeks rent) that can be charged in addition to the existing bond,
  • Making tenants liable for all pet damage to properties beyond fair wear and tear. This means a tenant is fully liable for any accidental or careless damage caused by pets, as well as any intentional damage,
  • Requiring that tenants may only have a pet or pets with the consent of the landlord, who can withhold consent on reasonable grounds.
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