What was Tenancy Tribunal case 4890569 about?

The tribunal order states: [The tenant/s] must pay [The landlord/s] $7,063.30 immediately, calculated as

How much money was awarded in case 4890569?

Filing Fee: $20.44 awarded to landlord; Rent Arrears: $7,042.86 awarded to landlord

What type of tenancy dispute was case 4890569?

The primary dispute was Rent arrears.

Where can I read the official tribunal order for case 4890569?

The official Ministry of Justice published order is available at https://forms.justice.govt.nz/search/Documents/TTV2/PDF/10973441-Tribunal_Order_Redacted.pdf.

What was Tenancy Tribunal case 4890569 about?

The tribunal order states: [The tenant/s] must pay [The landlord/s] $7,063.30 immediately, calculated as

How much money was awarded in case 4890569?

Filing Fee: $20.44 awarded to landlord; Rent Arrears: $7,042.86 awarded to landlord

What type of tenancy dispute was case 4890569?

The primary dispute was Rent arrears.

Where can I read the official tribunal order for case 4890569?

The official Ministry of Justice published order is available at https://forms.justice.govt.nz/search/Documents/TTV2/PDF/10973441-Tribunal_Order_Redacted.pdf.

New Zealand Tenancy Tribunal Case 4890569 — Rent arrears

Claims and awards in Tenancy Tribunal application 4890569 — net $7,063.30 NZD. Amounts reconciled from the published order (claims sum and net total). Verify on MoJ.
Claim	Landlord	Reason
Rent arrears to 01/07/2024	$7,042.86	Rent arrears to 01/07/2024
Filing fee reimbursement	$20.44	Filing fee reimbursement
Net award	$7,063.30
Total payable by Tenant to Landlord	$7,063.30

Order

[The tenant/s] must pay [The landlord/s] $7,063.30 immediately, calculated as shown in table below.
The term of the fixed-term tenancy of [The tenant/s] at [Tenancy address suppressed] is terminated on 1 st July 2024.

Reasons

Both parties attended the hearing.
The tenant has applied for reduction of the fixed-term tenancy.
The landlord applied for rent arrears for the fixed-term tenancy. Background 4890569, 49256592
On 13 th April 2024, the parties signed a fixed-term tenancy agreement starting 28 th April 2024 for one year.
On 18 th April 2024, the tenant paid the landlord $4,100.00 as part-payment for the bond.
On 19 th April 2024, the tenant sent the landlord a 28 days’ notice to terminate the tenancy.
On 20 th April 2024, the tenant explained to the property manager that the reason for the termination was due to an unforeseen medical circumstance. The father of the tenant was diagnosed with terminal cancer and the family needed money urgently. The property manager told the tenant that she will let the owner know.
Between 21 st and 26 th April 2024, the tenant tried contacting the property manager but received no response.
On 26 th April 2024, the tenant sent an email to the landlord that the tenant would be unable to move into the premises due to unforeseen circumstances. The property manager did not respond back.
On 11 th May 2024, the tenant sent the property manager a follow up email and requested for the refund of the bond.
On 16 th May 2024, the tenant applied for reduction of the fixed-term tenancy to the Tenancy Tribunal.
On 31 st May 2042, the tenant checked with the Bond Centre and found that their bond was never lodged with the Bond Centre.
On 26 th June 2024, the landlord applied to the Tenancy Tribunal for rent arrears.
On 7 th July 2024, the owner’s son informed the tenant that they have defaulted the contract and that the tenant did not have the right to live at the address.
Throughout this period, the property manager never told the tenant how to pick up the keys for the premises. The tenant also never asked the property manager as to how the keys can be picked up. The tenant never moved into the premises at any stage. The law around fixed-term tenancy
The starting point for fixed-term tenancy is that it cannot be terminated by notice. This applies to both the landlord and the tenant.
Once the parties have signed the fixed-term tenancy agreement and the tenant makes any payment to the landlord, then the parties are obliged to go through with the agreement. 4890569, 49256593
The parties can agree to terminate the fixed-term tenancy earlier. However, that was not the case with this tenancy. The landlord never agreed to end the fixed- term tenancy earlier.
There was a prospective tenant who could have taken over the tenancy, but it was declined by the landlord. It was not an assignment request by the tenant under section 43B Residential Tenancies Act 1986 (“RTA”). I find there was nothing wrong with the landlord not offering the prospective tenant the tenancy.
If the parties cannot agree to terminate the fixed-term tenancy earlier, either party can apply to the Tribunal for reduction of the fixed-term tenancy under section 66 RTA.
If that happens, the Tribunal can order termination of the tenancy if the Tribunal is satisfied that, because of an unforeseen change in the applicant’s circumstances, the severe hardship which the applicant would suffer if the term of the tenancy were not reduced would be greater than the hardship which the other party to the tenancy would suffer if the term were reduced.
Even if it is clear at this stage that the tenant wants to end the fixed-term earlier and is in breach of the tenant’s obligation to pay rent, there is no duty on the landlord to mitigate loss under section 49 RTA.
Under section 61(4) RTA, the RTA notes that there is no obligation on the landlord to make an application for termination under abandonment or to grant a new tenancy of the premises. The same principle applies for fixed-term tenancy as otherwise it would mean that the landlord must accept the tenant’s notice for termination and start acting on it. This case
The tenant’s application for reduction of the fixed-term tenancy had some merits regarding the unforeseen change in the circumstances and severe hardship to the applicant if the term was not reduced due to the father’s medical situation.
However, the landlord acknowledged that the owner’s son had used the premises on 2 nd July 2024 and there was a text sent by him to the tenant on 7 th July 2024 confirming that the tenants did not have any rights to live at the premises as they have defaulted in their contract.
I take that as accepting the tenant’s request to terminate the fixed-term tenancy earlier. The landlord cannot use the premises and ban the tenant from the premises and claim rent at the same time.
Accordingly, I find that the tenancy has been terminated through the landlord’s actions on 1 st July 2024. 4890569, 49256594
The rent owing to 1 st July 2024 was $7,042.86 after the bond of $4,100.00 is used to offset the rent arrears. I order the tenant to pay the landlord $7,042.85 for rent arrears.
The tenant’s application to reduce the fixed-term tenancy to the start date of the tenancy is declined.
The landlord’s rent arrears claim was substantially successful. I order the tenant to pay the landlord’s filing fee. Other matters
The landlord accepted that the bond received was not lodged with the Bond Centre but used to offset the rent arrears at the beginning of the tenancy.
A landlord must send any bond payment to the Bond Centre within 23 working days after the payment is received. See section 19(1) RTA.
Breaching this obligation is an unlawful act for which the Tribunal may award exemplary damages up to a maximum of $1,500.00. See section 19(2) and Schedule 1A RTA.
I would have awarded some exemplary damages against the landlord for not lodging the bond with the Bond Centre. However, I offset this with the additional listing costs for the landlord in having the premises re-listed.

Claims and awards in Tenancy Tribunal application 4890569 — net $7,063.30 NZD. Amounts reconciled from the published order (claims sum and net total). Verify on MoJ.
Claim	Landlord	Reason
Rent arrears to 01/07/2024	$7,042.86	Rent arrears to 01/07/2024
Filing fee reimbursement	$20.44	Filing fee reimbursement
Net award	$7,063.30
Total payable by Tenant to Landlord	$7,063.30

Order

[The tenant/s] must pay [The landlord/s] $7,063.30 immediately, calculated as shown in table below.
The term of the fixed-term tenancy of [The tenant/s] at [Tenancy address suppressed] is terminated on 1 st July 2024.

Reasons

Both parties attended the hearing.
The tenant has applied for reduction of the fixed-term tenancy.
The landlord applied for rent arrears for the fixed-term tenancy. Background 4890569, 49256592
On 13 th April 2024, the parties signed a fixed-term tenancy agreement starting 28 th April 2024 for one year.
On 18 th April 2024, the tenant paid the landlord $4,100.00 as part-payment for the bond.
On 19 th April 2024, the tenant sent the landlord a 28 days’ notice to terminate the tenancy.
On 20 th April 2024, the tenant explained to the property manager that the reason for the termination was due to an unforeseen medical circumstance. The father of the tenant was diagnosed with terminal cancer and the family needed money urgently. The property manager told the tenant that she will let the owner know.
Between 21 st and 26 th April 2024, the tenant tried contacting the property manager but received no response.
On 26 th April 2024, the tenant sent an email to the landlord that the tenant would be unable to move into the premises due to unforeseen circumstances. The property manager did not respond back.
On 11 th May 2024, the tenant sent the property manager a follow up email and requested for the refund of the bond.
On 16 th May 2024, the tenant applied for reduction of the fixed-term tenancy to the Tenancy Tribunal.
On 31 st May 2042, the tenant checked with the Bond Centre and found that their bond was never lodged with the Bond Centre.
On 26 th June 2024, the landlord applied to the Tenancy Tribunal for rent arrears.
On 7 th July 2024, the owner’s son informed the tenant that they have defaulted the contract and that the tenant did not have the right to live at the address.
Throughout this period, the property manager never told the tenant how to pick up the keys for the premises. The tenant also never asked the property manager as to how the keys can be picked up. The tenant never moved into the premises at any stage. The law around fixed-term tenancy
The starting point for fixed-term tenancy is that it cannot be terminated by notice. This applies to both the landlord and the tenant.
Once the parties have signed the fixed-term tenancy agreement and the tenant makes any payment to the landlord, then the parties are obliged to go through with the agreement. 4890569, 49256593
The parties can agree to terminate the fixed-term tenancy earlier. However, that was not the case with this tenancy. The landlord never agreed to end the fixed- term tenancy earlier.
There was a prospective tenant who could have taken over the tenancy, but it was declined by the landlord. It was not an assignment request by the tenant under section 43B Residential Tenancies Act 1986 (“RTA”). I find there was nothing wrong with the landlord not offering the prospective tenant the tenancy.
If the parties cannot agree to terminate the fixed-term tenancy earlier, either party can apply to the Tribunal for reduction of the fixed-term tenancy under section 66 RTA.
If that happens, the Tribunal can order termination of the tenancy if the Tribunal is satisfied that, because of an unforeseen change in the applicant’s circumstances, the severe hardship which the applicant would suffer if the term of the tenancy were not reduced would be greater than the hardship which the other party to the tenancy would suffer if the term were reduced.
Even if it is clear at this stage that the tenant wants to end the fixed-term earlier and is in breach of the tenant’s obligation to pay rent, there is no duty on the landlord to mitigate loss under section 49 RTA.
Under section 61(4) RTA, the RTA notes that there is no obligation on the landlord to make an application for termination under abandonment or to grant a new tenancy of the premises. The same principle applies for fixed-term tenancy as otherwise it would mean that the landlord must accept the tenant’s notice for termination and start acting on it. This case
The tenant’s application for reduction of the fixed-term tenancy had some merits regarding the unforeseen change in the circumstances and severe hardship to the applicant if the term was not reduced due to the father’s medical situation.
However, the landlord acknowledged that the owner’s son had used the premises on 2 nd July 2024 and there was a text sent by him to the tenant on 7 th July 2024 confirming that the tenants did not have any rights to live at the premises as they have defaulted in their contract.
I take that as accepting the tenant’s request to terminate the fixed-term tenancy earlier. The landlord cannot use the premises and ban the tenant from the premises and claim rent at the same time.
Accordingly, I find that the tenancy has been terminated through the landlord’s actions on 1 st July 2024. 4890569, 49256594
The rent owing to 1 st July 2024 was $7,042.86 after the bond of $4,100.00 is used to offset the rent arrears. I order the tenant to pay the landlord $7,042.85 for rent arrears.
The tenant’s application to reduce the fixed-term tenancy to the start date of the tenancy is declined.
The landlord’s rent arrears claim was substantially successful. I order the tenant to pay the landlord’s filing fee. Other matters
The landlord accepted that the bond received was not lodged with the Bond Centre but used to offset the rent arrears at the beginning of the tenancy.
A landlord must send any bond payment to the Bond Centre within 23 working days after the payment is received. See section 19(1) RTA.
Breaching this obligation is an unlawful act for which the Tribunal may award exemplary damages up to a maximum of $1,500.00. See section 19(2) and Schedule 1A RTA.
I would have awarded some exemplary damages against the landlord for not lodging the bond with the Bond Centre. However, I offset this with the additional listing costs for the landlord in having the premises re-listed.

Tenancy Tribunal case 4890569 — Rent arrears

At a glance

Tenancy Tribunal case 4890569 — Rent arrears

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