What was Tenancy Tribunal case 4847241 about?

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

How much money was awarded in case 4847241?

Compensation: $3,240.00 awarded to landlord

What type of tenancy dispute was case 4847241?

The dispute type was not classified.

Where can I read the official tribunal order for case 4847241?

The official Ministry of Justice published order is available at https://forms.justice.govt.nz/search/Documents/TTV2/PDF/10197923-Tribunal_Order_Redacted.pdf.

What was Tenancy Tribunal case 4847241 about?

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

How much money was awarded in case 4847241?

Compensation: $3,240.00 awarded to landlord

What type of tenancy dispute was case 4847241?

The dispute type was not classified.

Where can I read the official tribunal order for case 4847241?

The official Ministry of Justice published order is available at https://forms.justice.govt.nz/search/Documents/TTV2/PDF/10197923-Tribunal_Order_Redacted.pdf.

New Zealand Tenancy Tribunal Case 4847241 — Tenancy dispute

Claims and awards in Tenancy Tribunal application 4847241 — net $3,240.00 NZD. Amounts reconciled from the published order (claims sum and net total). Verify on MoJ.
Claim	Landlord	Reason
Compensation	$3,240.00	Compensation
Net award	$3,240.00
Total payable by Tenant to Landlord	$3,240.00

Order

The term of the fixed-term tenancy of [The tenant/s] at [Tenancy address suppressed] is reduced and now ends at 11.59 am on Tuesday 7 May 2024.
[The tenant/s] must pay [The landlord/s] $3,240.00 immediately.

Reasons

Both parties attended the hearing on 11 April 2024.
The tenancy commenced on 12 August 2021 and is a fixed term tenancy through until 3 December 2024. The most recent tenancy agreement was entered into by the parties on 6 December 2023.
The tenant has applied to the Tribunal to reduce the fixed term tenancy.
The usual legal position with a fixed-term contract is that the term of the contract will be applied strictly, and it is only in limited circumstances that a court or tribunal will interfere with it. For residential tenancies, one of those circumstances is found in s 66 Residential Tenancies Act 1986 (“RTA”), which allows for the reduction of fixed term tenancy agreements.
There is a high threshold to be met before the Tribunal will reduce the term. In particular the applicant will need to establish that: a. there has been a change in their circumstances. b. the change was unforeseen. c. the unforeseen change will result in severe hardship to the applicant if the tenancy is not reduced. d. the severe hardship the applicant will suffer if the term is not reduced exceeds the hardship the other party will suffer if the term is reduced.
Section 66(2) RTA provides that, if the Tribunal reduces the term of the tenancy, it may order the applicant to pay reasonable compensation to the other party for any loss or damage which results from the reduction of the term.
The weighing of relative hardship is a question of fact to be assessed objectively in each case.
The tenants operate an accommodation business in [Town]. They have three units.
One of the tenants works full time in [City]. Until recently, the other tenant also lived at the premises in [City].
In February 2024, the cleaners contracted to clean the [Town] units advised the tenants that they could no longer clean the units. The tenants could not find any replacement cleaners. One of the tenants returned to live in [Town] and to carry out the cleaning. That tenant now lives in a caravan in [Town].
The tenants say that interest rate increases on loans for their [Town] properties are such that they can no longer afford to pay the mortgage payments and rent premises in [City].
The tenants wish to both return to live in [Town]. During the week one of the tenants will return to [City] and rent a room so that they can carry on with their employment.
The tenants gave the landlord six weeks’ notice of their wish to terminate the tenancy. The notice period is to end on 7 May 2024.
The tenants have voluntarily paid $980.00 to the landlord to assist with [online] advertising and credit checks for any new tenants.
The landlord said that they did not wish to terminate the tenancy. They have advertised the property over the last 2 weeks and have had enquiries, but no replacement tenant has been found.
The landlord expressed the view that it may be difficult to find replacement tenants in the autumn and winter. The landlord was unable to express an opinion on the likely period for finding a new tenant.
Theses premises are the only rented premises owned by the owners, as far as the landlord was aware. The rent payments are required to meet the owner’s financial obligations.
Has there been an unforeseen change in circumstances? I accept that the cancellation of the cleaning contract and the inability to find replacement cleaners was an unforeseen circumstance. I do not accept that any recent increase in the tenant’s interest could be said to be unforeseen. The most recent fixed term tenancy agreement was signed by the tenants on 6 December 2023. Interest changes since that time have not been substantial and certainly cannot be said to be unforeseen.
Having found that there has been an unforeseen change in circumstances, I must consider the respective hardships to the parties. In this matter, the hardships are financial ones.
The tenant says that carrying on with the tenancy is financially unsustainable and that they are “going backwards” rapidly.
There was limited evidence as to the landlord’s financial position.
Balancing those factors as best as I am able, I find that the serious hardship that the tenant will suffer if I do not terminate the tenancy outweighs the hardship that the landlord will suffer if I do.
The tenancy is to end at 11.59 am on Tuesday 7 May 2024.
Section 66(2) RTA allows the Tribunal to consider compensation to the landlord in these circumstances. I take into account that the tenant has already voluntarily paid $980.00 to the landlord. It may be some time before the landlord finds a replacement tenant. The tenancy was to have run for approximately 6 months from 7 May 2024. Taking those factors into account. I order the tenant to pay the landlord compensation in the sum of $3,240.00, the equivalent of 4 weeks rent.
Both parties have applied for name suppression. Neither party has been wholly successful. I consider that both parties have achieved a sufficient degree of success to consider that they have been substantially successful. Name suppression of the tenant and landlord name and details is ordered.

Claims and awards in Tenancy Tribunal application 4847241 — net $3,240.00 NZD. Amounts reconciled from the published order (claims sum and net total). Verify on MoJ.
Claim	Landlord	Reason
Compensation	$3,240.00	Compensation
Net award	$3,240.00
Total payable by Tenant to Landlord	$3,240.00

Order

The term of the fixed-term tenancy of [The tenant/s] at [Tenancy address suppressed] is reduced and now ends at 11.59 am on Tuesday 7 May 2024.
[The tenant/s] must pay [The landlord/s] $3,240.00 immediately.

Reasons

Both parties attended the hearing on 11 April 2024.
The tenancy commenced on 12 August 2021 and is a fixed term tenancy through until 3 December 2024. The most recent tenancy agreement was entered into by the parties on 6 December 2023.
The tenant has applied to the Tribunal to reduce the fixed term tenancy.
The usual legal position with a fixed-term contract is that the term of the contract will be applied strictly, and it is only in limited circumstances that a court or tribunal will interfere with it. For residential tenancies, one of those circumstances is found in s 66 Residential Tenancies Act 1986 (“RTA”), which allows for the reduction of fixed term tenancy agreements.
There is a high threshold to be met before the Tribunal will reduce the term. In particular the applicant will need to establish that: a. there has been a change in their circumstances. b. the change was unforeseen. c. the unforeseen change will result in severe hardship to the applicant if the tenancy is not reduced. d. the severe hardship the applicant will suffer if the term is not reduced exceeds the hardship the other party will suffer if the term is reduced.
Section 66(2) RTA provides that, if the Tribunal reduces the term of the tenancy, it may order the applicant to pay reasonable compensation to the other party for any loss or damage which results from the reduction of the term.
The weighing of relative hardship is a question of fact to be assessed objectively in each case.
The tenants operate an accommodation business in [Town]. They have three units.
One of the tenants works full time in [City]. Until recently, the other tenant also lived at the premises in [City].
In February 2024, the cleaners contracted to clean the [Town] units advised the tenants that they could no longer clean the units. The tenants could not find any replacement cleaners. One of the tenants returned to live in [Town] and to carry out the cleaning. That tenant now lives in a caravan in [Town].
The tenants say that interest rate increases on loans for their [Town] properties are such that they can no longer afford to pay the mortgage payments and rent premises in [City].
The tenants wish to both return to live in [Town]. During the week one of the tenants will return to [City] and rent a room so that they can carry on with their employment.
The tenants gave the landlord six weeks’ notice of their wish to terminate the tenancy. The notice period is to end on 7 May 2024.
The tenants have voluntarily paid $980.00 to the landlord to assist with [online] advertising and credit checks for any new tenants.
The landlord said that they did not wish to terminate the tenancy. They have advertised the property over the last 2 weeks and have had enquiries, but no replacement tenant has been found.
The landlord expressed the view that it may be difficult to find replacement tenants in the autumn and winter. The landlord was unable to express an opinion on the likely period for finding a new tenant.
Theses premises are the only rented premises owned by the owners, as far as the landlord was aware. The rent payments are required to meet the owner’s financial obligations.
Has there been an unforeseen change in circumstances? I accept that the cancellation of the cleaning contract and the inability to find replacement cleaners was an unforeseen circumstance. I do not accept that any recent increase in the tenant’s interest could be said to be unforeseen. The most recent fixed term tenancy agreement was signed by the tenants on 6 December 2023. Interest changes since that time have not been substantial and certainly cannot be said to be unforeseen.
Having found that there has been an unforeseen change in circumstances, I must consider the respective hardships to the parties. In this matter, the hardships are financial ones.
The tenant says that carrying on with the tenancy is financially unsustainable and that they are “going backwards” rapidly.
There was limited evidence as to the landlord’s financial position.
Balancing those factors as best as I am able, I find that the serious hardship that the tenant will suffer if I do not terminate the tenancy outweighs the hardship that the landlord will suffer if I do.
The tenancy is to end at 11.59 am on Tuesday 7 May 2024.
Section 66(2) RTA allows the Tribunal to consider compensation to the landlord in these circumstances. I take into account that the tenant has already voluntarily paid $980.00 to the landlord. It may be some time before the landlord finds a replacement tenant. The tenancy was to have run for approximately 6 months from 7 May 2024. Taking those factors into account. I order the tenant to pay the landlord compensation in the sum of $3,240.00, the equivalent of 4 weeks rent.
Both parties have applied for name suppression. Neither party has been wholly successful. I consider that both parties have achieved a sufficient degree of success to consider that they have been substantially successful. Name suppression of the tenant and landlord name and details is ordered.

Tenancy Tribunal case 4847241 — Tenancy dispute

At a glance

Tenancy Tribunal case 4847241 — Tenancy dispute

At a glance

Award balance

Claims & awards

Order

Reasons

Topics & place

Residential Tenancies Act sections

Key findings

Frequently asked questions

Award balance

Claims & awards

Order

Reasons

Topics & place

Residential Tenancies Act sections

Key findings

Frequently asked questions