Government introducing pet bonds for renters

If you're a renter with a pet, or want to get one, there are changes coming that'll make it easier to find a place - you'll just need to pay up.

The coalition Government is introducing pet bonds that can be charged in addition to the existing bond.

It'll mean tenants are liable for any damage to the property caused by pets - meaning any accidental, careless or intentional damage beyond fair wear and tear. 

 The Government reckons it will benefit people renting - however a renters' advocate organisation doesn't think it'll fix the "fundamental power imbalance" landlords have over renters.

"Anyone who has ever tried to find a pet-friendly rental property will know how hard it is, so we're going to make it easier," Housing Minister Chris Bishop said in a statement on Monday.

"Pets are important members of many Kiwi families. It's estimated that around 64 percent of New Zealand households own at least one pet, and 59 percent of people who don't have a pet would like to get one.

"Supporting people to find a pet-friendly rental home is part of the Government's plan to create a well-functioning rental property market, which itself is part of the wider plan to solve New Zealand's housing crisis."

The changes will be made to the Residential Tenancies Act, which Regulation Minister David Seymour said would fix the problem of tenants being locked out of rental markets due to landlords not being willing to take a risk on tenants with pets.

"There are tenants out there who would be more than happy to pay a little extra in order to live in their preferred home with their very good boy," Seymour said.

"More landlords would be willing to allow pets if they could protect themselves from some of the risks."

Seymour added that the policy was also important for helping victims of domestic abuse move on with their lives. 

"Often, people stay in relationships to look after pets and become stuck. Helping these people find rentals that are accepting of pets will allow them to move on safely and have a brighter future," he said.

Changes to the legislation 

• 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.

The Government will introduce an Amendment Bill in May to make these changes, alongside other changes to the Residential Tenancies Act including bringing back 90-day no-cause evictions and making several changes to notice period laws. 

Pet Refuge Charitable Trust welcomed the introduction of pet bonds, hoping it would lead to more families finding safe homes for themselves and their pets after fleeing family violence.

Pet Refuge provides temporary shelter for the pets of people escaping abuse. Since opening its doors in 2021, the organisation has cared for more 450 pets whose owners have escaped family violence.

Pets often end up staying in long-term care as people struggle to find secure and suitable accommodation for their furry family members.

"We always hope to be able to reunite owners with their pets as soon as possible, but we've had some animals in our care for months at a time while their pet parent searches high and low for somewhere that will take them both," Pet Refuge CEO and founder Julie Chapman said.

"While Pet Refuge always want to reunite pets with their owners, finding rental accommodation that will allow them is so hard, that there have been times where we've had to find the pet a new loving forever home because it has been impossible for their family to find a place they can all live in safety together.

"It's heartbreaking that owners have to part with their much-loved pet because they can't find a rental to take them both. Many of the people we help describe their pet as their rock, their protector and source of comfort, and keeping them in their lives is a huge part of their recovery."

Renters organisation reacts

However, Renters United was not so approving of the change.

"Ultimately, the changes are moot because a landlord will still be able to evict you whenever they want with the return of 'no cause' evictions," spokesperson Luke Somervell told Newshub.

"If the Government really wanted to make it easier for pet owners who rent, they'd make it so a landlord would have to accept renters who lodged a pet bond."

He said ultimately the power still rests with the landlord "who can choose to accept or decline an application depending on how they're feeling that day".

"As of yet the only way to refute their reason is the lengthy, and inaccessible process of the tenancy tribunal."

Somervell said for the average renter in Palmerston North, for example, this would mean having to find an extra $840 on top of their existing $1680 to have a pet - based on the median market rate of $420 per week in the city.

He also noted that the changes don't specify what kind of pet.

"If you're a goldfish owner, better start saving now."

Somervell said the maximum amount a landlord can currently claim is limited by their excess or four weeks' rent - whatever is lowest. Few landlords would have an excess of $2520, he added.

"It's a high price tag for renters to pay when they might not see any of their money back. Every renter has a story about their landlord trying to charge them of hundreds of dollars in bond for a light mark on the wall.

"Who's to say we won't see more of this gouging now? There's nothing to say the pet bond won't be another way for landlords to pocket more of their tenant's money."

Somervell said a power imbalance remains untouched.

"Landlords have more power, more money, and more knowledge of the rules. We rely on renters to enforce their own rights through the Tenancy Tribunal. Wandering through a byzantine maze of legislation is so intimidating that most renters often throw their hands up and give up," he said.

"It's also worth mentioning that the current RTA [Residential Tenancies Act] doesn't ban pets, except in boarding houses. The terms of a tenancy agreement need to be agreed between landlords and tenants, and be reasonable.

"Outright banning pets is not reasonable, and in some cases (according to the RTA) unlawful. So it's unclear why we even need pet bonds in the first place when landlords shouldn't be able to discriminate against owners."