If you’re wondering how to claim from bonds without ending up in a dispute, the first thing to get right is the difference between damage and fair wear and tear. It sounds simple, but in our experience managing properties across the Hibiscus Coast, this is where most end-of-tenancy friction begins. A stain on the carpet, a scuff on the wall, a benchtop that’s seen better days: is it something you can deduct from the bond, or is it just the cost of doing business as a landlord? This guide walks you through the legal framework, gives you practical tools to spot the difference, and explains exactly how the bond claim process works in 2026.
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What the Law Says About Damage vs Fair Wear and Tear
Under the Residential Tenancies Act 1986, tenants are responsible for damage they cause, either carelessly or intentionally. What they are not responsible for is fair wear and tear: the gradual deterioration that happens when a home is lived in normally. The burden of proof sits with you, the landlord. If you want to claim from the bond, you need to show the issue is damage, not just the natural ageing of the property.
There are some important caps to keep in mind. For careless damage, the tenant’s liability is limited to four weeks’ rent or your landlord insurance excess, whichever is lower. Intentional damage, on the other hand, has no cap: the tenant is fully liable for repair or replacement costs. The Tenancy Tribunal also expects landlords to account for depreciation. You cannot claim the full replacement cost of a ten-year-old carpet, even if it is stained. You can only claim its remaining value. We know this sounds a bit dry, but getting this right is what keeps your bond claim from being thrown out. Think of it as your legal shield.
Spotting the Difference: Common Examples (With the $2 Coin Rule)
So what does fair wear and tear actually look like in a real rental? Faded paint from sunlight, minor scuffs on walls from furniture being moved around, worn carpet in hallways and high-traffic areas, loose door handles, and small hairline cracks in plaster are all part of a home ageing gracefully. These are not things you can deduct for.
Damage is different. Holes in walls, burn marks on benchtops, large stains or cigarette burns on carpet, broken windows, and pet urine soaking through floorboards all fall squarely into the damage category. A helpful rule of thumb we often share with landlords is the $2 coin rule. If a mark on the wall or carpet is smaller than a $2 coin, it is probably wear and tear. If it is larger than that, or if there are multiple marks clustered together, you are looking at damage.
A real-world example helps bring this to life. A property manager in Upper Hutt recently dealt with a tenant who argued that chipped paint and stained benchtops were reasonable wear and tear. The property manager successfully proved it was damage because the chips were deep, not surface-level scuffs, and the stains were the result of neglect rather than normal daily use. The distinction matters, and it often comes down to the severity and cause of the issue.
How Depreciation Affects Your Bond Claim
Depreciation is where many bond claims stumble. The IRD sets an effective lifespan for common household items, and the Tenancy Tribunal uses these figures when assessing compensation. Carpets, for example, have an effective lifespan of about eight years. If your rental’s carpet is ten years old, it is fully depreciated. Even if the tenant has stained it, you cannot claim for a brand-new replacement because the carpet had already reached the end of its expected life.
You can only claim for the remaining useful life of the damaged item. Say you have a five-year-old carpet that originally cost $2,400. With three years of useful life left out of eight, you could claim roughly three-eighths of the original value, not the full replacement cost. This is where good records earn their keep. Hold onto your receipts and know the age of every major item in the property. It makes the Tribunal process far smoother. We handle this calculation all the time for our landlords, and it is one of those details that separates a successful claim from a frustrating loss.
The Bond Claim Process in 2026: Step by Step
The process for claiming from bonds has changed, and if you have not lodged a claim since June 2026, here is what you need to know. All bond transactions have now moved online through Bond Hub, so paper forms are a thing of the past.
Start with a detailed exit inspection. Take dated photos of every room, focusing on anything that differs from the entry inspection report you completed at the start of the tenancy. If you do not have entry photos, you are fighting with one hand tied behind your back. The Tribunal relies heavily on visual evidence, and without a baseline, proving damage becomes much harder.
Next, calculate your deduction based on damage only, stripping out anything that qualifies as wear and tear, and apply the depreciation rule we covered above. If the repair requires a tradesperson, get a written quote. Then, lodge your bond refund application through Bond Hub. You have two months after the tenancy ends to do this, so do not let it slide.
If the tenant disputes the deduction, you can apply to the Tenancy Tribunal. The filing fee is $20.44, and hearings are usually scheduled within four to six weeks. A pro tip from our team: communicate clearly with the tenant before you lodge the claim. Explain what you are deducting and why, in plain language. Most disputes flare up because tenants do not understand the difference between damage and wear and tear, not because they are trying to avoid responsibility.
What About Pets and Intentional Damage?
If you have agreed to a pet at the property, you can charge a pet bond on top of the standard bond. This is specifically for pet-related damage beyond fair wear and tear, such as scratched doors, chewed skirting boards, or a dug-up garden. It sits separately from the general bond and can only be used for pet-related costs.
Intentional damage is a different beast altogether. If a tenant deliberately punches a hole in the wall or smashes a window, they are fully liable. No cap applies. In these situations, it is worth getting a police report to support your claim. For careless damage, like leaving a window open during a storm and flooding the lounge, the four-week rent cap still applies. Your landlord insurance may cover the rest, but you will need to pay the excess.
How to Protect Yourself Before the Tenancy Even Starts
The best bond claim is the one you never have to make, and that starts with a thorough entry inspection. Take dated photos and video of every surface, every mark, and every worn spot. Have the tenant sign the report so there is no argument later about what was pre-existing.
Screening tenants carefully also reduces your risk. A good tenant is less likely to cause damage in the first place and more likely to accept a fair claim if something does go wrong. Regular inspections every three to four months help you catch small issues before they become expensive problems. We do these for our landlords and send a full report each time, so nothing slips through the cracks.
Finally, know your insurance policy inside and out. Understand what your excess is and whether your policy covers careless tenant damage. This directly affects how you approach bond claims and whether pursuing a deduction is worth the effort.
Still Unsure? We Are Here to Help
If you are a Hibiscus Coast landlord staring at a stained carpet and wondering whether it is worth the fight, give us a call. We deal with these situations every day and can help you figure out where you stand. We offer a free rental appraisal and the first four weeks of management free, so you can hand over the stress and focus on what matters to you.