Property Investment
3 min read
Author: Andrew Nicol
Managing Director, 20+ Years' Experience Investing In Property, Author & Host
Property investors will soon have to let tenants have pets (in most cases).
That's because pet bonds are coming in from the 1st December 2025.
This new law allows landlords to charge tenants an extra bond if they have a pet.
The change gives landlords some extra protection … but takes away some choice in others.
Here's a breakdown of the new rules:
Landlords can soon charge an extra 2 weeks' bond if their tenant has a pet.
That’s on top of the standard 4-week bond.
Let’s say your property rents for $650 a week. Right now, the maximum bond you can charge is $2,600. (4 weeks’ rent).
Once the new rules come in, you can charge up to $3,900 if the tenant has a pet. (6 weeks’ rent).
You don’t have to ask for that extra bond. But the option is there.
As a side note, the pet bond can be used to cover other damage. It’s not just for pets.
So let’s say you have a tenant who damages your house. But it was the tenant (not the pet) who caused the damage.
The pet bond can still be used to cover the tenant’s other damage.
In the past, it was easy to say “No pets. No questions asked.”
Landlords can still say ‘no’ after December … but you need to explain ‘why’. And your justifications must be “reasonable”.
Now the law doesn’t say what “reasonable” means. That’ll be up to the Tenancy Tribunal to define when landlords and tenants get into a dispute.
But let’s say you own a 3-bedroom townhouse with a small garden. It’s likely reasonable to say no to a pet golden retriever.
But it’s probably unreasonable to say no to a tenant wanting a single cat.
It’ll likely come down to:
If your tenants already have a pet, nothing changes.
You can’t suddenly slap on a pet bond retrospectively.
But if they want to get a new pet (let’s say in January), you can charge the pet bond then.
The new rules also make tenants fully responsible for any pet-related damage (beyond fair wear and tear).
That’s a big change.
Under the old rules, the landlord had to pay for ‘accidental damage’ caused by pets.
In the past, tenants could argue that scratches or smells were “just accidental damage.”
Now, it’s more black and white: if the pet caused damage, the tenant pays.
Landlords can only charge the extra 2 weeks’ rent if the tenants are willing to pay.
Right now, the rental market is tough.
So you (as a landlord) might ask for the pet bond. But if another landlord decides not to ask for it (trying to get a tenant faster), perhaps tenants rent somewhere else.
Getting a bond together can be tough enough for a tenant. Finding an extra 2 weeks of rent might not be possible.
So time will tell whether tenants will pay a pet bond, or simply look for a different rental that’s not asking for one.
Overall, this news is positive.
Sure, property investors have a bit less power to say ‘no’ to pets. But you also have more protection.
That said, being “pet-friendly” used to give property investors an advantage. It helped landlords find tenants faster.
If everyone allows pets, it’s no longer a point of difference.
Still, with pet bonds and clear rules, owning a rental with animals is about to get a lot easier to manage.
Managing Director, 20+ Years' Experience Investing In Property, Author & Host
Andrew Nicol, Managing Director at Opes Partners, is a seasoned financial adviser and property investment expert with 20+ years of experience. With 40 investment properties, he hosts the Property Academy Podcast, co-authored 'Wealth Plan' with Ed Mcknight, and has helped 1,894 Kiwis achieve financial security through property investment.
This article is for your general information. It’s not financial advice. See here for details about our Financial Advice Provider Disclosure. So Opes isn’t telling you what to do with your own money.
We’ve made every effort to make sure the information is accurate. But we occasionally get the odd fact wrong. Make sure you do your own research or talk to a financial adviser before making any investment decisions.
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