Tenants' millions unclaimed

More than $5 million in unclaimed bond money is waiting for tenants to collect.

The money belongs to tenants who lodged bonds with the Tenancy Services section of the Department of Building and Housing, then failed to claim it back.

At present the deposits stay in the fund indefinitely or until they are claimed, but under the Residential Tenancies Amendment Bill, awaiting its second reading, the money will be handed over to the Crown if it is not claimed after six years.

Tenancy Services spokeswoman Kirsten Collins said some of the money had been sitting there for 18 years. Bonds were usually not claimed because people forgot or were not sure how to claim.

Ms Collins said the service was trying to locate the people whose bonds were unclaimed but it was difficult, especially when the money dated back years.

Under tenancy law landlords can ask for up to four weeks' rent as bond. The law requires landlords to lodge the bond with Tenancy Services within 23 working days of its receipt.

The total bond fund stood at just under $175 million last November, according to the report of the parliamentary social services committee's financial review of the Housing Ministry and Housing New Zealand.

Interest earned on the fund each year is about $9 million, which contributes to Tenancy Services' operating costs.

Green Party list MP Sue Bradford, a member of the parliamentary committee, said she would like to see some of the unclaimed money go towards supporting groups providing services and help to tenants.

* People who believe they have unclaimed bond money should contact Tenancy Services on 0800 737-666.