What was the outcome of Tenancy Tribunal case 4829837?

The tribunal order states: The application for an order for rent reduction is dismissed.

How much money was awarded in case 4829837?

Verified claim lines are listed on this page.

What type of tenancy dispute was case 4829837?

The dispute type was not classified.

Where can I read the official tribunal order for case 4829837?

The official Ministry of Justice published order is available at https://forms.justice.govt.nz/search/Documents/TTV2/PDF/10503778-Tenancy_Tribunal_Order.pdf.

What was the outcome of Tenancy Tribunal case 4829837?

The tribunal order states: The application for an order for rent reduction is dismissed.

How much money was awarded in case 4829837?

Verified claim lines are listed on this page.

What type of tenancy dispute was case 4829837?

The dispute type was not classified.

Where can I read the official tribunal order for case 4829837?

The official Ministry of Justice published order is available at https://forms.justice.govt.nz/search/Documents/TTV2/PDF/10503778-Tenancy_Tribunal_Order.pdf.

Room 829, 21 Whitaker Place, Grafton, Auckland 1010 Tenancy Tribunal Case 4829837 — Tenancy dispute

Order

The application for an order for rent reduction is dismissed.

Reasons

Mr Waru attend the hearing in person.
David Ho and William Gong attended for the landlord.
Mr Waru applies for an order for rent reduction.
Mr Waru’s current weekly rent is $710.00 per week. It had been $600.00 per week before 28 February 2024. Legal principles
Sections 25(1) and (3) Residential Tenancies Act 1986 provide: (1) On an application made to it at any time by the tenant, the Tribunal may, in accordance with the succeeding provisions of this section, on being satisfied that the rent payable or to become payable for the tenancy exceeds the market rent by a substantial amount, make an order reducing the rent to an amount, to be specified in the order, that is in line with the market rent. (3) For the purposes of this Act, the market rent for any tenancy shall be the rent that, without regard to the personal circumstances of the landlord or the tenant, a willing landlord might reasonably expect to receive and a willing tenant might reasonably expect to pay for the tenancy, taking into consideration the general level of rents...for comparable tenancies of comparable premises in the locality or in similar localities and such other matters as the Tribunal considers relevant.
The tenant must satisfy the Tribunal that the rent exceeds market rent by a substantial amount. The term 'substantial' is not defined in the RTA, but it is the opposite of ‘minor’ or ‘insignificant’.
The test for market rent is the amount “a willing landlord might reasonably expect to receive, and a willing tenant might reasonably expect to pay for the tenancy”.
The factors the Tribunal must consider are “the general level of rents ... for comparable tenancies of comparable premises in the locality or in similar localities and such other matters as the Tribunal considers relevant”.
Three questions arising for determination under s 25: 1 .First, what a market rent would be for the relevant premises. a. Second, whether the rent is substantially above the market value. b. And, if so, thirdly, what the rent should be.

What would a market rent for the premises be?

Current Tenancy Services’ bond data for the Grafton area indicates that three bedroom apartments indicates average weekly rent for three bedroom apartments as follows: a. Lower quartile: $708.00. b. Median: $765.00. c. Upper-quartile: $800.00.
For the Central City are, the bond data indicates: a. Lower quartile: $696.00. 1 PROPERTY BROKERS HAWKE'S BAY LIMITED v PEKE MICHAELSEN [2024] NZDC 13815 [18 June 2024]. b. Median: $850.00. c. Upper-quartile: $1071.00
In this case, the bond data for rentals in the geographical area may not be as useful as in some situations. The apartment building was built as student accommodation, so the premises will tend to be of a lower standard and therefore command a lower rental than many other apartment buildings in the Grafton/Central City area which will tend to be larger and built to a higher specification.
Both parties provided evidence of rentals in the same building the premises is in, which is more cogent evidence for providing a more exact comparator.
Mr Waru submitted internet advertisements for apartments to rent in the same building as follows: a. Listing from 19 October 2023: $610.00 per week, Unit 15, three bedrooms, one bathroom. b. Listing from 23 January 2024: $690.00 per week for an unidentified unit number, three-bedroom, one-bathroom. c. Listing from 3 April 2024, for 822/21 Whitaker Place at a rental of $600.00 per week. The tenant made enquiry with the property management company confirmed that the apartment was fully furnished and that for $635.00 per week if power and water were included.
The landlord manages about 200 apartments in the same apartment building. About two-thirds of those are three-bedroom apartments, but many of them cannot be directly compared to Mr Waru’s situation because the landlord rents out the rooms within the three-bedroom apartments separately, rather than the apartment as a single tenancy. For three-bedroom apartments it rents out as a whole, the landlord provided a schedule that showed it is currently renting three- bedroom, one bathroom apartments as follows: a. 13 apartments at $720.00 rent per week. b. Seven apartments at $710.00 rent per week. c. One apartment at $700.00 per week. d. 26 apartments at $690.00 per week. e. Three apartments at $680.00 per week. f.Five apartments at $670.00 per week. g. Three at $660.00. h. One at $650.00. i.Two at $630.00.
The averaged weekly rental from the landlord’s data is $693.00 rent per week. The bulk of apartments fall within the range of $690.00 to $720.00 per week.
My sense based on recent cases I have heard is that there is an upward trend in weekly rent for such premises due to higher demand because Covid-19 restrictions have been lifted and overseas students can study at Auckland University and Auckland Unitech in the central city.
I conclude, the market rent for the tenant’s apartment is in the vicinity of between $680.00 and $720.00. Mr Waru’s weekly rent falls within that range. Conclusion
Mr Waru has not proven that his rent of $710.00 per week is substantially above market value.
It follows, his application must be dismissed.

Order

The application for an order for rent reduction is dismissed.

Reasons

Mr Waru attend the hearing in person.
David Ho and William Gong attended for the landlord.
Mr Waru applies for an order for rent reduction.
Mr Waru’s current weekly rent is $710.00 per week. It had been $600.00 per week before 28 February 2024. Legal principles
Sections 25(1) and (3) Residential Tenancies Act 1986 provide: (1) On an application made to it at any time by the tenant, the Tribunal may, in accordance with the succeeding provisions of this section, on being satisfied that the rent payable or to become payable for the tenancy exceeds the market rent by a substantial amount, make an order reducing the rent to an amount, to be specified in the order, that is in line with the market rent. (3) For the purposes of this Act, the market rent for any tenancy shall be the rent that, without regard to the personal circumstances of the landlord or the tenant, a willing landlord might reasonably expect to receive and a willing tenant might reasonably expect to pay for the tenancy, taking into consideration the general level of rents...for comparable tenancies of comparable premises in the locality or in similar localities and such other matters as the Tribunal considers relevant.
The tenant must satisfy the Tribunal that the rent exceeds market rent by a substantial amount. The term 'substantial' is not defined in the RTA, but it is the opposite of ‘minor’ or ‘insignificant’.
The test for market rent is the amount “a willing landlord might reasonably expect to receive, and a willing tenant might reasonably expect to pay for the tenancy”.
The factors the Tribunal must consider are “the general level of rents ... for comparable tenancies of comparable premises in the locality or in similar localities and such other matters as the Tribunal considers relevant”.
Three questions arising for determination under s 25: 1 .First, what a market rent would be for the relevant premises. a. Second, whether the rent is substantially above the market value. b. And, if so, thirdly, what the rent should be.

What would a market rent for the premises be?

Current Tenancy Services’ bond data for the Grafton area indicates that three bedroom apartments indicates average weekly rent for three bedroom apartments as follows: a. Lower quartile: $708.00. b. Median: $765.00. c. Upper-quartile: $800.00.
For the Central City are, the bond data indicates: a. Lower quartile: $696.00. 1 PROPERTY BROKERS HAWKE'S BAY LIMITED v PEKE MICHAELSEN [2024] NZDC 13815 [18 June 2024]. b. Median: $850.00. c. Upper-quartile: $1071.00
In this case, the bond data for rentals in the geographical area may not be as useful as in some situations. The apartment building was built as student accommodation, so the premises will tend to be of a lower standard and therefore command a lower rental than many other apartment buildings in the Grafton/Central City area which will tend to be larger and built to a higher specification.
Both parties provided evidence of rentals in the same building the premises is in, which is more cogent evidence for providing a more exact comparator.
Mr Waru submitted internet advertisements for apartments to rent in the same building as follows: a. Listing from 19 October 2023: $610.00 per week, Unit 15, three bedrooms, one bathroom. b. Listing from 23 January 2024: $690.00 per week for an unidentified unit number, three-bedroom, one-bathroom. c. Listing from 3 April 2024, for 822/21 Whitaker Place at a rental of $600.00 per week. The tenant made enquiry with the property management company confirmed that the apartment was fully furnished and that for $635.00 per week if power and water were included.
The landlord manages about 200 apartments in the same apartment building. About two-thirds of those are three-bedroom apartments, but many of them cannot be directly compared to Mr Waru’s situation because the landlord rents out the rooms within the three-bedroom apartments separately, rather than the apartment as a single tenancy. For three-bedroom apartments it rents out as a whole, the landlord provided a schedule that showed it is currently renting three- bedroom, one bathroom apartments as follows: a. 13 apartments at $720.00 rent per week. b. Seven apartments at $710.00 rent per week. c. One apartment at $700.00 per week. d. 26 apartments at $690.00 per week. e. Three apartments at $680.00 per week. f.Five apartments at $670.00 per week. g. Three at $660.00. h. One at $650.00. i.Two at $630.00.
The averaged weekly rental from the landlord’s data is $693.00 rent per week. The bulk of apartments fall within the range of $690.00 to $720.00 per week.
My sense based on recent cases I have heard is that there is an upward trend in weekly rent for such premises due to higher demand because Covid-19 restrictions have been lifted and overseas students can study at Auckland University and Auckland Unitech in the central city.
I conclude, the market rent for the tenant’s apartment is in the vicinity of between $680.00 and $720.00. Mr Waru’s weekly rent falls within that range. Conclusion
Mr Waru has not proven that his rent of $710.00 per week is substantially above market value.
It follows, his application must be dismissed.

Tenancy Tribunal case 4829837 — Tenancy dispute at Room 829, 21 Whitaker Place, Grafton, Auckland 1010

At a glance

Claims & awards

Tenancy Tribunal case 4829837 — Tenancy dispute at Room 829, 21 Whitaker Place, Grafton, Auckland 1010

At a glance

Claims & awards

Order

Reasons

What would a market rent for the premises be?

Topics & place

Residential Tenancies Act sections

Property management

Frequently asked questions

Order

Reasons

What would a market rent for the premises be?

Topics & place

Residential Tenancies Act sections

Property management

Frequently asked questions