As part of our ongoing advocacy work, we’ve been in discussions with officials regarding the upcoming changes to rental laws, which will give tenants more rights to have pets from next year. A key question raised by our members is: What happens if a pet causes damage?
Tenant Liability for Pet Damage
We’ve sought clarification from the Ministry of Housing and Urban Development (HUD), and here’s what you need to know:
The new pet provisions in the Bill currently before Parliament, were developed to be mindful of this concern. Tenants will be liable for all damage caused by pets beyond fair wear and tear, regardless of whether the damage is careless or intentional.
This is different from damage caused by humans, where a tenant’s liability for careless damage is capped at four weeks’ rent or the landlord’s insurance excess, whichever is lower. For intentional damage, the tenant is liable for the full cost.
The Pet Bond: How Much Will It Cover?
To address concerns over pet damage, a pet bond will be introduced, set at two weeks’ rent. According to HUD’s Regulatory Impact Statement, this amount was chosen because it’s expected to cover most pet-related damage claims. The national average for two weeks’ rent is $1160, which is nearly three times the median pet damage costs awarded by the Tenancy Tribunal in recent cases ($402.50).
As these changes approach, it’s important for landlords to stay informed and prepared. We will continue to provide updates and guidance as the new rules are finalised, ensuring that our members understand their rights and responsibilities under the evolving legal framework. Stay tuned for more details on how these changes might impact rental agreements and property management in the coming months.
For more guidance on managing pets in rental properties, including best practices and resources, visit our pet information page here.