New tenancy bond product for NZ

New tenancy bond product for NZ

With the introduction of the Residential Tenancies Amendment Act 2010, landlords can now ask for a guarantee in addition to, or in combination with a bond paid to the Department of Building and Housing.

Finally landlords have the opportunity to negotiate suitable bond arrangements with tenants without placing the tenant under increased financial burden.

To provide landlords with a bond guarantee that they can rely on and claim against as they would claim against a traditional bond, NZ Guarantee Limited have created an innovative solution that is the first of its kind in New Zealand and is set to shake up the NZ tenancy market, making renting a home more affordable and accessible whilst providing landlords with the cover they desire.

BondAssist is a financial guarantee (not an insurance policy) issued by Southsure Assurance Limited to guarantee the performance of an approved tenant under a signed Residential Tenancy Agreement.

The tenant is subject to credit approval and when approved can purchase a Guarantee which provides their landlord with 5 weeks bond cover that lasts for the term of the tenancy (auto renews each three years).

“The fee, paid for by the tenant for the guarantee is approximately 1 weeks rent, which is much more affordable than 4 weeks bond and can be paid by credit card” says Amanda Smith of NZ Guarantee Limited.

The irrevocable Guarantee covers all the normal things that a bond would, such as rent arrears, accidental and malicious damage, theft, cleaning, rubbish removal, and gardening. At the end of the tenancy where the tenant has breached the tenancy agreement the landlord can claim against the guarantee.

The BondAssist guarantee is compliant under the Residential Tenancies Amendment Act 2010 which now allows the use of guarantees to secure the tenant obligations under a residential tenancy.

“Landlords, especially agents see the value in combining BondAssist with a bond lodged with the DBH” says Amanda.

“Landlords can now give their tenants an alternative to paying 4 weeks bond. They can ask for 4 weeks or they can waiver the 4 weeks and ask the tenant to arrange BondAssist, which costs approximately 1 week, or where the tenant has pets or children the landlord can ask for BondAssist and 1-2 weeks bond” says Amanda.

“This is a genuine bond alternative. This is not landlord insurance” say Amanda.

“Past are the days where landlords need to compromise on bond to make their property attractive. 2 or 3 weeks bond just doesn’t cut it anymore” says Amanda.

BondAssist is issued by Southsure Assurance Limited a majority owned subsidiary of SBS Bank (Southland Building Society), 146 years in New Zealand.

For more information visit www.bondassist.co.nz

ENDS

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