Property Investment
4 min read
Author: Jess Knight
Business Development Manager with over 5 years of experience in Property Management in Auckland.
Reviewed by: Tiffany Bracey
Property Manager Team Leader at Opes Property Management Auckland.
Pet bonds officially come in on December 1 2025.
This will change how landlords and tenants negotiate for pets in rental properties.
This new law now means most landlords must allow pets, but landlords can also charge an extra pet bond to help cover any potential damage.
The idea is to keep tenants happy while still giving landlords some protection.
In this article, you’ll learn what a pet bond is and how the new rules will affect you as a property investor or tenant.
Pet bonds change the game. Most landlords now have to allow pets, but you can charge extra bond to protect yourself. Use it wisely, saying “no pets” is no longer enough.
Under the new law, landlords can charge an extra bond of up to 2 weeks’ rent if a tenant wants to have a pet.
That’s in addition to the standard 4-week bond a landlord can currently charge.
For example, if a property rents for $650 per week, a landlord could charge up to $2,600 in bond (4 weeks’ rent).
Under the new law, landlords could request up to $3,900 (six weeks’ rent) if the tenant has a pet.
It’s important to know that charging the pet bond is optional. Same as any bond, you don’t have to charge it as a landlord.
But we expect most property investors will aim to charge these 2 weeks.
The rental market is competitive. Landlords are reporting it’s hard to find a good tenant, so some may decide not to ask for it in an effort to secure a tenant faster.
And that might be a way some landlords try to make their property stand out since the tenant wouldn’t have to put as much money at risk.
In the past allowing pets made properties stand out and helped secure tenants more quickly.
But now most landlords must allow pets, it’s no longer a special selling point.
So, not charging the pet bond might become the new point of difference.
For many tenants getting the bond together is already hard. Adding another two weeks’ rent on top may be too much.
So some tenants may simply look for a rental where the landlord isn’t asking for the extra money.
Most landlords will now need to allow pets in their properties.
In the past landlords could simply state “no pets” without more explanation, but from December 1 2025, that’s no longer enough.
Landlords can still say “no” to pets, but they must give a reason ... and the reason must be “reasonable”.
The legislation doesn’t define what “reasonable” means, so the Tenancy Tribunal will define what that means when landlords and tenants take cases to the tribunal.
The adjudicators will look at the facts of individual cases, and this will create “case law”. That’s where we begin to understand how the Tenancy Tribunal will interpret the law.
What’s considered reasonable will likely depend on:
For example, declining a large dog in a small townhouse may be reasonable … while refusing a single indoor cat may not be.
The new rules also change who is responsible for pet damage. They make tenants fully responsible for any pet-related damage (beyond fair wear and tear).
This is a significant change.
Under the old rules, landlords were responsible for “accidental damage” caused by pets.
So tenants could argue scratches or smells were just accidental.
Now the rules are clearer: if the pet caused the damage (beyond fair wear and tear) the tenant pays.
Here are the pros and cons for property investors:
| Pros | Cons |
| More bond = more financial protection | Can’t say “no” to pets without a reasonable excuse |
| Tenants are fully responsible for pet damage | Pet bonds may send tenants elsewhere to find a cheaper option |
| Potentially a larger group of tenants to choose from | Pets increase the risk of wear and tear |
| More admin required when vetting pets and tenants |
Overall, pet bonds give investors more protection and clearer rules, but they also reduce landlords’ choice.
For many investors, the benefits will outweigh the drawbacks. However, the impact will depend on your property, your local rental market, and how comfortable you are managing pets in your investment.
Pet bonds are part of a broader set of tenancy law changes introduced earlier in the year. These include:
Landlords with periodic tenancies can again end a tenancy without giving a reason, provided they give 90 days’ notice. This reverses the previous government’s restrictions.
Tenants on periodic agreements now need to give only three weeks’ notice, down from four.
Fixed-term tenancies will end on the agreed date unless both parties agree to renew. They will no longer automatically roll into periodic agreements.
At the end of the day these changes should work in landlords’ favour.
You may have less say in whether tenants can have pets, but you’ll also have more protection and far clearer rules to rely on.
With pet bonds and firm guidelines in place, having animals in your rental is about to become much simpler to manage.
Business Development Manager with over 5 years of experience in Property Management in Auckland.
Jess Knight is the Business Development Manager at Opes Property Management in Auckland. She has over five years of industry experience and is also an experienced property investor.
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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