The government is introducing Pet Bonds. What does this mean for tenants and landlords? The Facts:

64% of Kiwi households have at least one fur baby.
Before 2020, there were around 4.4 million fur babies in Kiwi households.
According to the latest Companion Animals New Zealand report, there were:

850,000 dogs,
1.2 million cats,
120,000 rabbits,
70,000 horses, and
1.37 million fish.

Currently, damage caused by pets is often not covered by landlord insurance. Relevant case law finds that the landlord accepts the potential risk when allowing pets into the property. This has resulted in the majority of rentals not being pet-friendly.

With the government rolling out a Pet Bond option for rental properties, they are acknowledging this gap in the market and legislating the risk imposed by allowing pets in a rental. It's kind of like your regular bond, but it's specifically there to cover any pet-related damage that's more than just the usual wear and tear. It is likely that this change will enable claims for pet damage that exceed the pet-only bond, further reducing the potential risk caused by allowing pets in rental properties.

From a tenant's perspective, I know many dog and cat owners who are the best tenants we have ever had. They are responsible and proud pet owners, and this is reflected in the care for their property. The ability to provide the owners with peace of mind that should Fido run through the glass door or dig under the house, it will be repaired by the tenant or suitable funds are available to fix the problem (although pet insurance helps with this and the vet bill too). It removes one element that often limits tenants from finding more suitable accommodation and having to choose between their two-legged or four-legged family.

We here at YLPM welcome this change and can't wait to get into the nitty-gritty of the proposed amendment to make sure that the legislation protects the interests of all involved parties.