What was the outcome of Tenancy Tribunal case 4855842?

The tribunal order states: Jardene Richard Murray must pay Plan Investments Limited $8,860.44

How much money was awarded in case 4855842?

Filing Fee: $20.44 awarded to landlord; Rent Payable Under Fixed Term Contra…: $8,840.00 awarded to landlord

What type of tenancy dispute was case 4855842?

The dispute type was not classified.

Where can I read the official tribunal order for case 4855842?

The official Ministry of Justice published order is available at https://forms.justice.govt.nz/search/Documents/TTV2/PDF/10647864-Tenancy_Tribunal_Order.pdf.

What was the outcome of Tenancy Tribunal case 4855842?

The tribunal order states: Jardene Richard Murray must pay Plan Investments Limited $8,860.44

How much money was awarded in case 4855842?

Filing Fee: $20.44 awarded to landlord; Rent Payable Under Fixed Term Contra…: $8,840.00 awarded to landlord

What type of tenancy dispute was case 4855842?

The dispute type was not classified.

Where can I read the official tribunal order for case 4855842?

The official Ministry of Justice published order is available at https://forms.justice.govt.nz/search/Documents/TTV2/PDF/10647864-Tenancy_Tribunal_Order.pdf.

Unit 9, 12 Wellington Street, Hamilton 3216 Tenancy Tribunal Case 4855842 — Tenancy dispute

Claims and awards in Tenancy Tribunal application 4855842 — net $8,860.44 NZD. Amounts reconciled from the published order (claims sum and net total). Verify on MoJ.
Claim	Landlord	Reason
Rent payable under fixed term contract to 7/03/2024	$8,840.00	Rent payable under fixed term contract to 7/03/2024
Filing fee reimbursement	$20.44	Filing fee reimbursement
Net award	$8,860.44
Total payable by Tenant to Landlord	$8,860.44

Order

Jardene Richard Murray must pay Plan Investments Limited $8,860.44 immediately.

Reasons

The landlord’s representative and the tenant attended the hearing.
This is an application by the landlord for compensation for rent payable under the terms of a fixed term contract. The background
The landlord and tenant signed a fixed term tenancy agreement for this unit.
The tenancy started on 3 March 2023 and the fixed term ended on 7 March 2024.
On 2 August 2023, the tenant emailed the landlord and said that he was being transferred to another city for work and his last day at the premises would be 18 August 2023.
The landlord replied to say that the tenant could not give notice to end the tenancy because this was a fixed term tenancy that expired on 7 March 2024.
The tenant asked if something could be worked out.
The landlord replied by email on 3 August 2023 and said: “As we have already told you earlier, your tenancy agreement is for a fixed term ending on 7 th March 2024. As it is a fixed-term, you are not able to end the tenancy early by giving notice.”
The landlord’s email referred the tenant to the Tenancy Services website for more information on fixed term tenancies and his rights and obligations and said that the easiest solution, if he had a change in situation, was for the tenant to find someone suitable to sublet the unit.
The landlord then said: “The only other solution I can offer you is for us to advertise for a new tenant to replace you. You will need to pay a week’s rent ($340.00) to us as compensation for advertising fee and time spent to find a new tenant. You will also still need to continue paying rent until we have found a suitable tenant to replace you, which may take weeks or even months, I cannot guarantee how quickly I can find a suitable tenant.”
The tenant replied soon after and said: “Yes you will need to start finding a replacement tenant. Any extra costs can be taken out of the bond.”
The tenant moved out. He says he continued to receive automated texts, for the rest of the term of the tenancy, telling him that there was rent owing.
Apart from the automated texts, the parties say that there was no more communication between them until the tenant texted the landlord on 14 November 2023 to ask how much was owing. The landlord replied to say $4,760.00 and that the next rent was due on 17 November 2023.
The landlord made this application to the Tribunal on 10 April 2024.
The landlord has provided a rent ledger which shows that the tenant has paid rent up to 10 August 2023.
The landlord has also now received the bond of $1,360.00. 1
This means the rent is paid up to 7 September 2023. 1 The landlord thinks that he made a one-party application to the Bond Centre for the refund of the bond. The tenant does not recall being contacted by the landlord or the Bond Centre about this.

What is the law about ending a fixed term tenancy early?

A fixed term tenancy agreement is a binding legal contract. It is a promise by the tenant to pay rent until the end date of the fixed term and a promise by the landlord to provide the tenancy premises for that time.
A fixed term tenancy cannot be ended early by giving notice. It can be ended with the agreement of both parties, or, by an order of the Tenancy Tribunal.
If a tenant abandons premises and rent is in arrears, the landlord can apply to the Tribunal to terminate the tenancy. Rent is payable until the end of the fixed term or until a new tenant is found and the landlord has no obligation to try to find a new tenant; s61(4) RTA.
A tenant may apply to the Tribunal to reduce the term of a fixed term tenancy when there has been an unforeseen change in the tenant’s circumstances, and they would suffer severe hardship that is greater than what the landlord would suffer; see s66 RTA.
When one party breaches a contract, the other party is entitled to claim compensation for proven loss caused by that breach.
The non-breaching party must take all reasonable steps to limit the damage or loss arising from the breach; see s49 RTA. In this case, this means that the landlord must take all reasonable steps to try to find suitable new tenants.

Did the parties agree to end the fixed term tenancy early?

I am satisfied that the parties agreed to end the fixed term tenancy early. The landlord offered to advertise and try to find a new replacement tenant on the condition that the tenant would pay one week’s rent as compensation and continue paying rent. The tenant accepted this solution.
This agreement between the parties means that the tenant did not abandon the premises. The landlord knew the tenant was leaving the property and took back possession of the premises.
However, the tenant did not continue paying rent while the landlord tried to find a new tenant. So, he breached the agreement between the parties.

Is the tenant liable to pay all rent due until the end of the fixed term tenancy?

The landlord is claiming compensation for the rent he expected to receive under the fixed term contract.
He says that he advertised the unit on Trade Me but was not able to find a new tenant to rent the unit until after the fixed term ended. He supplied a copy of a tenancy agreement with the new tenant starting from 19 March 2024.
The landlord says that his loss is therefore the full amount of rent payable under the fixed term contract up to 7 March 2024. This is $8,840.00.
The landlord did not provide any supporting information to show that he took all reasonable steps to find a new tenant. He explained that he did not advertise this unit specifically, as he has other units empty at this address as well and does not advertise the units individually.
I asked him to look up the current advertisement for the address during the hearing, which he did. This is a motel-style block of units, and the advertisement says that there are 1-bedroom units for rent.
The landlord says that he has at least three other units at this address that are currently empty and that it is taking many months to find new tenants, sometimes more than 9 months.
The landlord says that this unit was empty for about 7 months.
I also asked the tenant more about why he left the unit. He said he had a genuine reason as his employer had relocated him for work. He says he lived in another city until the beginning of this year when he moved back again.
There is no substantiating evidence to show that the landlord took all reasonable steps to find a new tenant as soon as possible. I must take his word for it.
There is no substantiating evidence that the tenant had a genuine and unforeseen reason to need to end the tenancy early (a job relocation). I must take his word for it.
If the tenant had made an application under s66 RTA and given me evidence, I could have taken this into account. I would also have had to be satisfied that the tenant would suffer severe hardship if I did not reduce the term of the tenancy. I do not have any evidence about hardship from either party.
Overall, the law says that a party who breaches a contract is liable to compensate the other party for their loss. There is no evidence that the landlord did not act reasonably to try to find a new tenant and not enough evidence that the tenant had an unforeseen reason to leave early or would suffer severe hardship if I did not reduce the amount owing.
I award the landlord the amount claimed which is $8,840.00.
There was some discussion in the hearing about a repayment plan. The parties are free to come to an arrangement between them.
Because Plan Investments Limited has wholly succeeded with the claim I must also award the filing fee.
No suppression orders apply.

Claims and awards in Tenancy Tribunal application 4855842 — net $8,860.44 NZD. Amounts reconciled from the published order (claims sum and net total). Verify on MoJ.
Claim	Landlord	Reason
Rent payable under fixed term contract to 7/03/2024	$8,840.00	Rent payable under fixed term contract to 7/03/2024
Filing fee reimbursement	$20.44	Filing fee reimbursement
Net award	$8,860.44
Total payable by Tenant to Landlord	$8,860.44

Order

Jardene Richard Murray must pay Plan Investments Limited $8,860.44 immediately.

Reasons

The landlord’s representative and the tenant attended the hearing.
This is an application by the landlord for compensation for rent payable under the terms of a fixed term contract. The background
The landlord and tenant signed a fixed term tenancy agreement for this unit.
The tenancy started on 3 March 2023 and the fixed term ended on 7 March 2024.
On 2 August 2023, the tenant emailed the landlord and said that he was being transferred to another city for work and his last day at the premises would be 18 August 2023.
The landlord replied to say that the tenant could not give notice to end the tenancy because this was a fixed term tenancy that expired on 7 March 2024.
The tenant asked if something could be worked out.
The landlord replied by email on 3 August 2023 and said: “As we have already told you earlier, your tenancy agreement is for a fixed term ending on 7 th March 2024. As it is a fixed-term, you are not able to end the tenancy early by giving notice.”
The landlord’s email referred the tenant to the Tenancy Services website for more information on fixed term tenancies and his rights and obligations and said that the easiest solution, if he had a change in situation, was for the tenant to find someone suitable to sublet the unit.
The landlord then said: “The only other solution I can offer you is for us to advertise for a new tenant to replace you. You will need to pay a week’s rent ($340.00) to us as compensation for advertising fee and time spent to find a new tenant. You will also still need to continue paying rent until we have found a suitable tenant to replace you, which may take weeks or even months, I cannot guarantee how quickly I can find a suitable tenant.”
The tenant replied soon after and said: “Yes you will need to start finding a replacement tenant. Any extra costs can be taken out of the bond.”
The tenant moved out. He says he continued to receive automated texts, for the rest of the term of the tenancy, telling him that there was rent owing.
Apart from the automated texts, the parties say that there was no more communication between them until the tenant texted the landlord on 14 November 2023 to ask how much was owing. The landlord replied to say $4,760.00 and that the next rent was due on 17 November 2023.
The landlord made this application to the Tribunal on 10 April 2024.
The landlord has provided a rent ledger which shows that the tenant has paid rent up to 10 August 2023.
The landlord has also now received the bond of $1,360.00. 1
This means the rent is paid up to 7 September 2023. 1 The landlord thinks that he made a one-party application to the Bond Centre for the refund of the bond. The tenant does not recall being contacted by the landlord or the Bond Centre about this.

What is the law about ending a fixed term tenancy early?

A fixed term tenancy agreement is a binding legal contract. It is a promise by the tenant to pay rent until the end date of the fixed term and a promise by the landlord to provide the tenancy premises for that time.
A fixed term tenancy cannot be ended early by giving notice. It can be ended with the agreement of both parties, or, by an order of the Tenancy Tribunal.
If a tenant abandons premises and rent is in arrears, the landlord can apply to the Tribunal to terminate the tenancy. Rent is payable until the end of the fixed term or until a new tenant is found and the landlord has no obligation to try to find a new tenant; s61(4) RTA.
A tenant may apply to the Tribunal to reduce the term of a fixed term tenancy when there has been an unforeseen change in the tenant’s circumstances, and they would suffer severe hardship that is greater than what the landlord would suffer; see s66 RTA.
When one party breaches a contract, the other party is entitled to claim compensation for proven loss caused by that breach.
The non-breaching party must take all reasonable steps to limit the damage or loss arising from the breach; see s49 RTA. In this case, this means that the landlord must take all reasonable steps to try to find suitable new tenants.

Did the parties agree to end the fixed term tenancy early?

I am satisfied that the parties agreed to end the fixed term tenancy early. The landlord offered to advertise and try to find a new replacement tenant on the condition that the tenant would pay one week’s rent as compensation and continue paying rent. The tenant accepted this solution.
This agreement between the parties means that the tenant did not abandon the premises. The landlord knew the tenant was leaving the property and took back possession of the premises.
However, the tenant did not continue paying rent while the landlord tried to find a new tenant. So, he breached the agreement between the parties.

Is the tenant liable to pay all rent due until the end of the fixed term tenancy?

The landlord is claiming compensation for the rent he expected to receive under the fixed term contract.
He says that he advertised the unit on Trade Me but was not able to find a new tenant to rent the unit until after the fixed term ended. He supplied a copy of a tenancy agreement with the new tenant starting from 19 March 2024.
The landlord says that his loss is therefore the full amount of rent payable under the fixed term contract up to 7 March 2024. This is $8,840.00.
The landlord did not provide any supporting information to show that he took all reasonable steps to find a new tenant. He explained that he did not advertise this unit specifically, as he has other units empty at this address as well and does not advertise the units individually.
I asked him to look up the current advertisement for the address during the hearing, which he did. This is a motel-style block of units, and the advertisement says that there are 1-bedroom units for rent.
The landlord says that he has at least three other units at this address that are currently empty and that it is taking many months to find new tenants, sometimes more than 9 months.
The landlord says that this unit was empty for about 7 months.
I also asked the tenant more about why he left the unit. He said he had a genuine reason as his employer had relocated him for work. He says he lived in another city until the beginning of this year when he moved back again.
There is no substantiating evidence to show that the landlord took all reasonable steps to find a new tenant as soon as possible. I must take his word for it.
There is no substantiating evidence that the tenant had a genuine and unforeseen reason to need to end the tenancy early (a job relocation). I must take his word for it.
If the tenant had made an application under s66 RTA and given me evidence, I could have taken this into account. I would also have had to be satisfied that the tenant would suffer severe hardship if I did not reduce the term of the tenancy. I do not have any evidence about hardship from either party.
Overall, the law says that a party who breaches a contract is liable to compensate the other party for their loss. There is no evidence that the landlord did not act reasonably to try to find a new tenant and not enough evidence that the tenant had an unforeseen reason to leave early or would suffer severe hardship if I did not reduce the amount owing.
I award the landlord the amount claimed which is $8,840.00.
There was some discussion in the hearing about a repayment plan. The parties are free to come to an arrangement between them.
Because Plan Investments Limited has wholly succeeded with the claim I must also award the filing fee.
No suppression orders apply.

Tenancy Tribunal case 4855842 — Tenancy dispute at Unit 9, 12 Wellington Street, Hamilton 3216

At a glance

Tenancy Tribunal case 4855842 — Tenancy dispute at Unit 9, 12 Wellington Street, Hamilton 3216

At a glance

Award balance

Claims & awards

Order

Reasons

What is the law about ending a fixed term tenancy early?

Did the parties agree to end the fixed term tenancy early?

Is the tenant liable to pay all rent due until the end of the fixed term tenancy?

Topics & place

Residential Tenancies Act sections

Key findings

Property management

Frequently asked questions

Award balance

Claims & awards

Order

Reasons

What is the law about ending a fixed term tenancy early?

Did the parties agree to end the fixed term tenancy early?

Is the tenant liable to pay all rent due until the end of the fixed term tenancy?

Topics & place

Residential Tenancies Act sections

Key findings

Property management

Frequently asked questions