A boarding house landlord takes a bond of one week's rent from a new boarder. What must the landlord do with it?
Correct Answer
A) Give an immediate receipt; it need not be lodged with Tenancy Services.
Section 66D says that if one week's rent or less is taken as bond under a boarding house tenancy, it need not be lodged and ss 19 to 22D do not apply. The landlord must immediately give a receipt and refund the bond at the end, less unpaid rent or other amounts owed. A larger bond must be lodged in the usual way.
Why This Is the Correct Answer
Section 66D(1) exempts boarding house bonds of one week's rent or less from lodgement.
Why the Other Options Are Wrong
Option B: Lodge it with Tenancy Services within 23 working days, like any other bond.
Section 66D(1)(a) says a bond of one week's rent or less in a boarding house need not be lodged.
Option C: Hold it in a trust account and lodge it only if the boarder disputes a deduction.
No lodgement is required at all; disputes go to the Tribunal under s 66D(3).
Option D: Refuse it, because boarding house tenants cannot be asked for any bond.
Boarding house landlords may take a bond; s 66D deals with bonds of one week or less.
Background Knowledge for Property Management
Source: https://www.legislation.govt.nz/act/public/1986/0120/latest/whole.html
Exam Tip for Property Management
Boarding house bond of one week or less: receipt it, keep it, refund it.
Common Mistakes to Avoid on Property Management Questions
- •Applying the 23-working-day lodgement rule to every boarding house bond.
More Property Management Questions
How long does a landlord have to lodge a bond with Tenancy Services after receiving it from a tenant?
Which of the following is a mandatory requirement for all rental properties under the Healthy Homes standards?
A periodic tenancy began 8 months ago and the rent has never been raised. If the landlord gives written notice today, when is the earliest a rent increase can take effect?
A property manager discovers a tenant has been subletting rooms without permission for 6 months, generating significant income. The head tenant is otherwise compliant and rent is current. What factors would most influence the Tenancy Tribunal's decision on termination?
Under the Residential Tenancies Act 1986, what is the most a landlord can charge as a general bond (not counting any separate pet bond)?
- → Which of the following is NOT a mandatory requirement for tenancy agreements under the Residential Tenancies Act?
- → How much notice must a landlord give a tenant before conducting a routine property inspection?
- → A tenant has given 21 days' notice to terminate a periodic tenancy but wants to leave 5 days early. What must happen for this to be legally acceptable?
- → A tenant claims bond refund for $1,200 but the landlord disputes $400 for carpet cleaning. The tenant disagrees and applies to the Tenancy Tribunal. What happens to the bond during this dispute?
- → How often may a landlord carry out routine inspections during a tenancy?
- → A landlord wants to increase rent for a periodic tenancy. What is the minimum notice period they must give?
- → During a property inspection, a property manager discovers the tenant has installed a spa pool without permission. What is the most appropriate first step?
- → By what date did all private rental properties in New Zealand have to comply with the healthy homes standards?
- → A property manager conducts an inspection and finds the tenant has installed a heat pump without permission. The tenancy agreement prohibits alterations without consent. What can the landlord legally require?
- → During a property inspection, a landlord notices the tenant has changed the locks. Under what circumstances is this legally permitted?
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