What was Tenancy Tribunal case 4826127 about?

The tribunal order states: The application for the term of the fixed-term tenancy of [The tenant/s] at

How much money was awarded in case 4826127?

Rent Arrears: $1,335.71 awarded to landlord

What type of tenancy dispute was case 4826127?

The primary dispute was Rent arrears.

Where can I read the official tribunal order for case 4826127?

The official Ministry of Justice published order is available at https://forms.justice.govt.nz/search/Documents/TTV2/PDF/10148551-Tenancy_Tribunal_Order.pdf.

What was Tenancy Tribunal case 4826127 about?

The tribunal order states: The application for the term of the fixed-term tenancy of [The tenant/s] at

How much money was awarded in case 4826127?

Rent Arrears: $1,335.71 awarded to landlord

What type of tenancy dispute was case 4826127?

The primary dispute was Rent arrears.

Where can I read the official tribunal order for case 4826127?

The official Ministry of Justice published order is available at https://forms.justice.govt.nz/search/Documents/TTV2/PDF/10148551-Tenancy_Tribunal_Order.pdf.

25 Dee Street, Oamaru, Oamaru 9400 Tenancy Tribunal Case 4826127 — Rent arrears

Order

Claims and awards in Tenancy Tribunal application 4826127 — net $1,335.71 NZD. Amounts reconciled from the published order (claims sum and net total). Verify on MoJ.
Claim	Landlord	Reason
Rent arrears (from 22/02/2024 to 21/03/2024	$1,335.71	Rent arrears (from 22/02/2024 to 21/03/2024
Net award	$1,335.71
Total payable by Tenant to Landlord	$1,335.71

The application for the term of the fixed-term tenancy of [The tenant/s] at 25 Dee Street, Oamaru, Oamaru 9400 is dismissed. The tenancy ended at 11:59pm on 21 March 2024.

[The tenant/s] must pay Blackham & Co Real Estate Limited - As Agent For H Boom $1,335.71 immediately, calculated as set out in the table below.

Reasons

Both parties attended the hearing.

The tenant has applied for reduction of the 6-month fixed-term tenancy due to end on 21 June 2024.

The Tribunal may reduce a fixed term tenancy where: a. there has been an unforeseen change in the applicant’s circumstances; and b. there would be severe hardship to the applicant if the term is not reduced; and c. the applicant’s hardship would be greater than the hardship to the other party if the term is reduced. See section 66(1) Residential Tenancies Act 1986.

There has been an unforeseen change in the tenant's circumstances. The tenant and her ex-partner have 5 school age children. When they separated, the tenant’s ex-partner was to stay in the family home and the tenant had to seek alternative accommodation for her and the children. The tenant was left having to cover the mortgage on the family home or loose it and was not in a financial position that allowed her to cover her mortgage and the rent for the home she had rented for a fixed term to provide much needed security for her children. She was unable to reasonably foresee that her ex-partner would place her under such financial distress as well as leaving the 5 children in her sole care.

The tenant provided evidence that she never moved into the rental property because before she did her ex-partner left New Zealand and left her in a tenuous financial position. She also provided evidence that she paid the rent as long as she could but went through all her savings by 21 February 2024. Consequently, she has fallen into rent arrears of $1,335.71 as a new tenant did not move into the premises until 22 March 2024.

The tenant claims would suffer severe hardship if the term of the tenancy were not reduced to 21 February 2024, when she had given oral notice of her circumstances on 26 January 2024 and confirmed this with written notice on 29 January 2024.

The tenant provided evidence that she gets a benefit from Work and Income New Zealand from which she pays 57% of her benefit in mortgage repayments and 10.6% on car repayment for a car loan her ex-partner left her with. This leaves her with 32% of her benefit to buy food, petrol, utilities and clothe herself and her children along with car maintenance costs, healthcare costs etc.

The tenant has no savings left, no other assets and no access to any other financial support.

I am in no doubt the tenant will suffer undue hardship if she has to pay the rent arrears, she owes the landlord.

However, the landlord would also suffer hardship if the term is reduced.

The landlord provided evidence that she owns the house she rented to the tenant and is renting a property overseas. She works part time, has no savings and has to cover the mortgage on the property, which is reasonably large. She has no other assets, other than a car she is paying off and no access to any other financial support. Her mortgage is 21.3% of her wages, her rent is 44.5% of her wages, her car loan is 20.3% of her wages, her insurance is 6% of her wages and her rates are 0.04% of her wages. This leaves 7.86% of her wages for her to live off.

I may only make an order reducing the term of the tenancy to 21 February 2024 where I am satisfied that, because of an unforeseen change in the tenant’s circumstances, the severe hardship which she would suffer if the term of the tenancy were not reduced would be greater than the hardship which the owner would suffer if the term were reduced.

I find that the although the tenant’s financial duress is the result of an unforeseen circumstance, the tenant’s hardship is not greater than the landlord’s hardship. Therefore, the tenant’s application to reduce the term of the tenancy to 21 February 2024 is dismissed.

The tenancy ended on 21 March 2024 and rent is payable to that date. Reimbursement of filing fee

Because the tenant has not succeeded with the claim, I dismiss her application for reimbursement of the filing fee.

Claims and awards in Tenancy Tribunal application 4826127 — net $1,335.71 NZD. Amounts reconciled from the published order (claims sum and net total). Verify on MoJ.
Claim	Landlord	Reason
Rent arrears (from 22/02/2024 to 21/03/2024	$1,335.71	Rent arrears (from 22/02/2024 to 21/03/2024
Net award	$1,335.71
Total payable by Tenant to Landlord	$1,335.71

Order

The application for the term of the fixed-term tenancy of [The tenant/s] at 25 Dee Street, Oamaru, Oamaru 9400 is dismissed. The tenancy ended at 11:59pm on 21 March 2024.
[The tenant/s] must pay Blackham & Co Real Estate Limited - As Agent For H Boom $1,335.71 immediately, calculated as set out in the table below.

Reasons

Both parties attended the hearing.
The tenant has applied for reduction of the 6-month fixed-term tenancy due to end on 21 June 2024.
The Tribunal may reduce a fixed term tenancy where: a. there has been an unforeseen change in the applicant’s circumstances; and b. there would be severe hardship to the applicant if the term is not reduced; and c. the applicant’s hardship would be greater than the hardship to the other party if the term is reduced. See section 66(1) Residential Tenancies Act 1986.
There has been an unforeseen change in the tenant's circumstances. The tenant and her ex-partner have 5 school age children. When they separated, the tenant’s ex-partner was to stay in the family home and the tenant had to seek alternative accommodation for her and the children. The tenant was left having to cover the mortgage on the family home or loose it and was not in a financial position that allowed her to cover her mortgage and the rent for the home she had rented for a fixed term to provide much needed security for her children. She was unable to reasonably foresee that her ex-partner would place her under such financial distress as well as leaving the 5 children in her sole care.
The tenant provided evidence that she never moved into the rental property because before she did her ex-partner left New Zealand and left her in a tenuous financial position. She also provided evidence that she paid the rent as long as she could but went through all her savings by 21 February 2024. Consequently, she has fallen into rent arrears of $1,335.71 as a new tenant did not move into the premises until 22 March 2024.
The tenant claims would suffer severe hardship if the term of the tenancy were not reduced to 21 February 2024, when she had given oral notice of her circumstances on 26 January 2024 and confirmed this with written notice on 29 January 2024.
The tenant provided evidence that she gets a benefit from Work and Income New Zealand from which she pays 57% of her benefit in mortgage repayments and 10.6% on car repayment for a car loan her ex-partner left her with. This leaves her with 32% of her benefit to buy food, petrol, utilities and clothe herself and her children along with car maintenance costs, healthcare costs etc.
The tenant has no savings left, no other assets and no access to any other financial support.
I am in no doubt the tenant will suffer undue hardship if she has to pay the rent arrears, she owes the landlord.
However, the landlord would also suffer hardship if the term is reduced.
The landlord provided evidence that she owns the house she rented to the tenant and is renting a property overseas. She works part time, has no savings and has to cover the mortgage on the property, which is reasonably large. She has no other assets, other than a car she is paying off and no access to any other financial support. Her mortgage is 21.3% of her wages, her rent is 44.5% of her wages, her car loan is 20.3% of her wages, her insurance is 6% of her wages and her rates are 0.04% of her wages. This leaves 7.86% of her wages for her to live off.
I may only make an order reducing the term of the tenancy to 21 February 2024 where I am satisfied that, because of an unforeseen change in the tenant’s circumstances, the severe hardship which she would suffer if the term of the tenancy were not reduced would be greater than the hardship which the owner would suffer if the term were reduced.
I find that the although the tenant’s financial duress is the result of an unforeseen circumstance, the tenant’s hardship is not greater than the landlord’s hardship. Therefore, the tenant’s application to reduce the term of the tenancy to 21 February 2024 is dismissed.
The tenancy ended on 21 March 2024 and rent is payable to that date. Reimbursement of filing fee
Because the tenant has not succeeded with the claim, I dismiss her application for reimbursement of the filing fee.

Tenancy Tribunal case 4826127 — Rent arrears at 25 Dee Street, Oamaru, Oamaru 9400

At a glance

Tenancy Tribunal case 4826127 — Rent arrears at 25 Dee Street, Oamaru, Oamaru 9400

At a glance

Award balance

Claims & awards

Order

Reasons

Topics & place

Residential Tenancies Act sections

Key findings

Property management

Frequently asked questions

Award balance

Claims & awards

Order

Reasons

Topics & place

Residential Tenancies Act sections

Key findings

Property management

Frequently asked questions