Landlords keen on KiwiSaver for tenancy bonds

New Zealand Property Investors Federation (NZPIF) vice-president Peter Lewis says it’s a good idea because it makes a bond more accessible to more people.

“If you have a tenancy at, say, $500 a week, that's $2,000 for someone to come up with, and that can be a hurdle for students. Not many of them have $2,000 in their back pocket.”

Under National’s plans, students will be able to transfer money from their KiwiSaver to Tenancy Services and return it to their savings when the tenancy ends. They will also be able to transfer the bond to a new tenancy. There is a five year cap.

Lewis says anything that helps them overcome that bond hurdle is a good idea, providing there are sufficient safeguards to make sure the bond has been lodged before the tenancy commences.