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A security deposit helps to protect you when there are losses or damages caused by our clients (or anyone else staying with them).
Security deposits need to be agreed to by the client(s) and you (the supplier/provider) and approved before they stay with you.
The amount you can get
The security deposit is generally:
- the equivalent of 7 nights accommodation for Emergency Housing (EH) suppliers or
- up to $1000 for Transitional Housing (TH) and Contracted Emergency Housing providers.
The approved amount will be available to be claimed during or at the end of the client’s stay.
- It’s only to be used if there are costs for any loss or damage (covered by the security deposit) for which the client is responsible, e.g. the security deposit doesn’t cover general wear and tear.
- It can’t be used by you or the client for any other purpose.
This means you must check for any loss or damages and discuss these with the client before they check out or when you become aware of any loss or damages during the client’s stay.
What the security deposit can cover
The security deposit can cover the actual and reasonable costs of:
- breakages or damages caused by the client or anyone staying with them (such as any breakages or damage to the property whether intentional or accidental)
- losses relating to failure of the client to meet their obligations to the supplier/provider under their agreement for stay. This can include replacing items that have been removed from the room, excessive cleaning charges, the room being unavailable due to (excessive) cleaning or belongings left behind and providing replacement keys
- unpaid accommodation costs (this covers unpaid contribution for clients staying in Transitional Housing only).
What it does not cover:
- telephone, internet or pay-television charges
- meal charges
- storage of excessive goods
- laundry services
- general wear and tear.
Checking in and checking out
An important part of the security deposit process is that you complete a check-in and check-out process with our clients. This will make sure that clients are aware of their responsibilities and any loss or damage as a result of their stay.
The check-in/check-out process will vary depending on your business. At check-in you should:
- Cover the rules of stay in your accommodation, including the check-out process
- Go over what is provided by your business (items in the room; if cleaning or laundry is covered)
- Note any existing wear-and-tear or damage to the room.
At check-out (returning keys etc) you and the client must go over the state of the room and identify any loss or damages at that time. If a client completes check-out with you, then they must agree to any damage or loss claim for MSD to be able to pay.
When we will not pay the security deposit
If the costs for any loss or damage:
- is more than the amount approved for the security deposit
- if you have discussed the loss/damage with the client and they did not agree that the loss or damage was their responsibility
- is for costs other than loss or damages – for example, other services, such as telephone charges
- if the security deposit has already been fully used (for example, a previous claim from you).
If MSD will not pay for damages or loss, then you will need to seek this cost from the client(s) themselves.
Claiming costs for damage or loss
If you notice damage or loss either during or at the end of the client’s stay, you can invoice MSD up to the amount of the approved security deposit. You can also do this if the client has caused damage or loss and has failed to check out.
Before asking for a security deposit claim, you must discuss the damage or loss with the client(s). This is a required step and will allow you and the client(s) to clarify information for the claim form. If you are unable to contact the client, then this needs to be advised on the form.
You need to provide the Security Deposit Claim Form along with your invoice to your local service centre.
Refunding payments to MSD
Sometimes we may make a payment to the wrong supplier, or a client may leave an emergency accommodation early.
If you need to refund any money that we have paid you on the client’s behalf, you can do this by direct credit:
Account name: MSD ROBOC 3
Westpac account: 03-0049-0006243-25[YA1]
When making a payment by direct credit, you need to enter the:
- client's surname then initials in the 'Particulars' field
- client's 9 digit MSD client number (without the dashes) in the 'Reference' field. Add the letter C before the client number, so it appears in the field as C123456789. If your bank requires 11 characters in the reference field, please add a zero at the end.
If you are making multiple refunds in one payment, please attach a schedule of these, and email this to Crown_Revenue@msd.govt.nz.
The schedule needs to include:
- a breakdown of refunds
- client's surname and initials
- client's 9 digit MSD client number.
In the email, please also tell us the day the bulk payment was made and the total amount paid.