Following student complaints on the Village's closed Facebook group, a staff member replied the charge was due to damage to "ceiling tiles, exit signs, bathroom damage, cutlery, crockery and cups".
"This even comes down to small things such as ping pong balls and bats that are damaged throughout the year."
Where staff were aware who was responsible, that individual or group - or guests - were made accountable.
"While I understand this is frustrating to everyone this is an important reason for stopping people from causing damage or helping hold them accountable when you know they have caused the damage."
A decision had not been reached on how much would be withheld, and students were encouraged to visit the office to discuss any issues.
One of the hall residents told the Herald the damage mostly related to certain individuals.
One occasion involved students lifting each other as in a rugby lineout, damaging roof tiles in the process.
"You wonder really how hard they try to find out who did it. Nobody is very happy about this."
Another student said even though there was a policy in place, first-year students from out of town had little choice but to stay in the halls.
"I think it is unfair. Yes, it is there in the fine print, but if you are not from Wellington and don't know people to go flatting with there really are no alternatives to the halls."
The Village was also raising fees for 2020, which for their room would increase from $385 a week to $475 a week.
"It is absolutely ridiculous, especially considering you will also lose part of your bond."
A second-year student who stayed at the halls last year said students received $212.83 of their $300 bonds back, meaning if each student was charged the same the company could have collected over $35,000.
A spokeswoman for Campus Living Villages said the company would not discuss these fees with the media.
"There was a bit of damage done so we weren't totally surprised," the student said.
"But it did seem like a lot more than it would have cost them. They also never sent an email warning us."
A Victoria University of Wellington Students' Association spokeswoman said they were interested to learn how much would be withheld, and what communication there was about damages used to justify the deductions.
"If students are being charged for damage that was knowingly caused by a select group or charged an amount that is well beyond the actual cost - it is absolutely unreasonable and unjustified under their 'joint liability'."
University halls were generally excluded from the Residential Tenancies Act.
The spokeswoman said this meant residents could not dispute bond reductions such as these and were not protected from "this sort of power imbalance".
"At this stage it is unclear to residents how they can question their charges and what process the hall undertakes to arrive at the deducted amount."
A Campus Living Villages spokeswoman said they would not discuss financial arrangements of residents with the media.
Students had signed an agreement in their contract that said damages in communal areas that couldn't be attributed to one particular resident were shared across all residents, she said.
This view was reiterated by Victoria University of Wellington student and campus living director Raisnforth Dix, who said it came under the New Zealand Code of Practice for Tertiary Student Accommodation.