Published tribunal order
Tenancy Tribunal case 4626463 — Rent arrears at 750 Maungakaramea Road, Maungakaramea, RD 8,
Decided 7 Sept 2023 · Published 7 Sept 2023 · Application 4626463
Landlord favoured
- Rent arrears
Order
- No application for suppression has been made in this case and no suppression orders apply around publication of this decision.
- Sarah Herrick owes Richie Sothern $2,970.44 (“the debt”), being rent arrears of $2,950.00 to Monday 11 September 2023 and the application filing fee of $20.44.
- Sarah Herrick must pay rent and the debt as follows: a. By paying rent of $450.00 as due weekly, with the first payment due on Tuesday 12 September 2023 and every Tuesday thereafter until the debt is paid. b. A payment of $2,970.44, clearing the debt, paid no later than Friday 22 September 2023.
- Payments will be allocated in the following order: rent, rent arrears, and the filing fee.
- If the tenant fails to pay rent and rent arrears within 2 working days of the due dates: a. The tenancy at 750 Maungakaramea Road, Maungakaramea, RD 8, Maungakaramea 0178 will terminate and the landlord will have immediate possession of the premises. b. The balance of the debt will be payable immediately.
- If the tenant fails to pay the filing fee within 2 working days of the due date, the filing fee will be payable immediately.
Reasons
- Both parties attended the hearing, conducted via teleconference. The matter had previously been adjourned to allow the landlord to submit an updated rent summary and the tenant respond with any banking evidence of rent not reflected in the rent summary.
- The issue with the initial rent summary was it understated the rent arrears as the landlord receipted in the summary money received from the tenant towards $1000.00 owed to him due to a home kill arrangement. This debt was not disputed. A cash sum was paid by the tenant to the butcher directly and the $1000.00 was a sum based on the weight of the meat received. The tenant accepted this arrangement and liability. To be clear, upon payment of the rent arrears as ordered, there is no further monies owing for any agreement regarding the meat.
- The tenant has not received the updated rent summary and the opportunity for her to review that was provided. She has now responded, as has the landlord.
- The landlord has applied for termination of the tenancy, rent arrears and refund of the bond. The tenant wants to repay the debt to avoid immediate termination.
- I have established a rent arrear of $2,950 as at Monday 11 September 2023. This date and amount assumes the last rent payment was $450.00 paid by the tenant on 14 August 2023.
- I disagree with the rent summary as provided by the landlord as the tenant has provided evidence of a payment of $450.00 made on 20 April 2023 that is not accounted for in the rent summary. I decline any termination order per s 55(1) Residential Tenancies Act 1986 as the supplied rent summary to establish rent arrear of 21 days or more at the date of application does not support this. It is only after determining the correct accounting of the “meat money” that such arrears are established.
Should a conditional termination order be made?
- The Tribunal may terminate a tenancy for breach where, due to the nature or extent of the breach, it would be inequitable to refuse to terminate. Where the breach is capable of remedy the landlord must first serve a notice on the tenant requiring them to remedy the breach within at least 14 days, and establish that the tenant has failed to do so. See section 56(1) Residential Tenancies Act 1986.
- While no termination per s 55(1) is contemplated, there are grounds for termination per s 56 RTA.
- The tenant breached their obligations by failing to pay rent as due. On 28 June 2023 the landlord served a 14-day notice on the tenant but the breach was not remedied within the required period. It would be inequitable to refuse to terminate the tenancy given the previous confusion regarding rent and other money without giving the tenant the chance to clear the proven rent arrears as now established. In allowing this I am aware of the financial pressure on the landlord, hence the structure of the conditional terms in this order, as well as the current circumstances of the tenant. The confused rent situation was as much a tenant responsibility as the landlord.
- Despite my finding that it would be inequitable to refuse to terminate the tenancy, having heard the evidence I am satisfied the tenant will pay the debt within the period specified in the order and is unlikely to commit any further breach. It is likely she will require agency support to do this and the timings in the terms intend to allow this. I have granted a conditional termination. See section 78(3) Residential Tenancies Act 1986.
- The conditional termination order will lapse if it is fully complied with. If the tenant breaches the order, the possession order is enforceable for 90 days from the first breach. See section 64(4)(b) Residential Tenancies Act 1986. Application filing fee
- Because Richie Sothern has substantially succeeded with the claim I have reimbursed the filing fee.