What was Tenancy Tribunal case 4933193 about?

The tribunal order states: The application is dismissed.

How much money was awarded in case 4933193?

Verified claim lines are listed on this page.

What type of tenancy dispute was case 4933193?

The dispute type was not classified.

Where can I read the official tribunal order for case 4933193?

The official Ministry of Justice published order is available at https://forms.justice.govt.nz/search/Documents/TTV2/PDF/10646261-Tribunal_Order_Redacted.pdf.

What was Tenancy Tribunal case 4933193 about?

The tribunal order states: The application is dismissed.

How much money was awarded in case 4933193?

Verified claim lines are listed on this page.

What type of tenancy dispute was case 4933193?

The dispute type was not classified.

Where can I read the official tribunal order for case 4933193?

The official Ministry of Justice published order is available at https://forms.justice.govt.nz/search/Documents/TTV2/PDF/10646261-Tribunal_Order_Redacted.pdf.

414B Oceanbeach Road, Mount Maunganui 3116 Tenancy Tribunal Case 4933193 — Tenancy dispute

Order

The application is dismissed.

Reasons

Both parties attended the hearing.
The applicant sought a release from a 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, 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, and 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) 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.

Should the fixed-term tenancy be reduced or terminated?

This tenancy commenced 6 May 2023 as a one-year fixed term tenancy. As the end of the fixed term neared, the landlord enquired of the tenant if she wished to renew for a further fixed term.
On 7 March 2024 the tenant indicated she was happy to accept a further 12- month fixed term tenancy. There was subsequent discussion between the parties regarding a rent increase with the result that on 28 March 2024 the landlord proposed the increased rent for the next fixed term should reduce from the proposed $810.00 to $790.00.
The fixed term extension document was drafted and signed by the tenant. It was returned to the landlord on 3 April 2024.
On 30 June 2024 the tenant contacted the landlord seeking to end the fixed term early. This was followed on 7 July 2024 with advice from the landlord regarding costs involved in breaking a fixed term tenancy and advised of the liability for rent until a new tenancy commenced. Since that time the premises have been marketed but, as yet, no new tenancy has formed.
Regardless, the tenant moved out of the premises yesterday, 29 July 2024.
The tenant is the sole named tenant, but she resides there with a partner and children. Previous landlord requests to add him to the tenancy agreement have not resulted in that occurring. He is self-employed and any inability or lack of work has a direct and adverse impact on the ability of the tenant to pay the rent.
Unfortunately, the tenant’s partner, who is self-employed, experienced a mental health issue over the long Easter weekend 2024 (late March 2024), such that since then he has been unable to work. This was confirmed by a medical certificate. He has experienced previous bouts of depression. They have been managed with medical assistance.
This medical event occurred prior to the signing of the fixed term extension. Given the severity of the event it was curious why the extension was later signed, given the long-term commitment required. I heard from the tenant that she was unaware the fixed term would roll over onto a periodic tenancy. She believed she had to leave or agree to a further fixed term. There was nothing in the landlord’s communication that might be considered to have misled the tenant.
The option for the tenant to roll the fixed term tenancy onto a periodic tenancy has been available since February 2021, and more recently subject to media attention given the intended alterations to the Residential Tenancy Act 1986 that might see such an option removed. Moving to a periodic tenancy would have seen the more appropriate path given the mental illness and related impacts.
As I explained at the hearing, while I accept the financial pressures the tenant is experiencing, I must first find there has been a change in the tenant’s circumstances and that any change was unforeseeable before considering any alteration to the fixed term tenancy per section 66 RTA.
Having further considered the respective submissions and evidence I do not find this situation meets the threshold to be considered an unforeseeable change in tenant circumstances, such that any order reducing or terminating the tenancy can be made.
Given that, I must dismiss the tenant application. Suppression
Section 95A RTA states regarding suppression orders that the Tribunal must, on the application of a party that has wholly or substantially succeeded in proceedings, order that the party’s name or identifying particulars not be published, unless the Tribunal considers that publication is in the public interest or is justified because of the party’s conduct or any other circumstances of the case.
Further, the Tribunal may, on the application of any party to proceedings or on its own initiative, having regard to the interests of the parties and to the public interest, order that all or part of the evidence given or the name or any identifying particulars of any witness or party not be published.
The tenant requested suppression in her application. As she has not been successful, suppression is not ordered automatically. However, I have considered it fair at this stage to order tenant name suppression on my own initiative. If the eventual end of the tenancy and any final rent liability cannot be mutually resolved, any future successful landlord application seeking compensation, and subsequent order, will not be bound by this suppression order.

Order

The application is dismissed.

Reasons

Both parties attended the hearing.
The applicant sought a release from a 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, 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, and 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) 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.

Should the fixed-term tenancy be reduced or terminated?

This tenancy commenced 6 May 2023 as a one-year fixed term tenancy. As the end of the fixed term neared, the landlord enquired of the tenant if she wished to renew for a further fixed term.
On 7 March 2024 the tenant indicated she was happy to accept a further 12- month fixed term tenancy. There was subsequent discussion between the parties regarding a rent increase with the result that on 28 March 2024 the landlord proposed the increased rent for the next fixed term should reduce from the proposed $810.00 to $790.00.
The fixed term extension document was drafted and signed by the tenant. It was returned to the landlord on 3 April 2024.
On 30 June 2024 the tenant contacted the landlord seeking to end the fixed term early. This was followed on 7 July 2024 with advice from the landlord regarding costs involved in breaking a fixed term tenancy and advised of the liability for rent until a new tenancy commenced. Since that time the premises have been marketed but, as yet, no new tenancy has formed.
Regardless, the tenant moved out of the premises yesterday, 29 July 2024.
The tenant is the sole named tenant, but she resides there with a partner and children. Previous landlord requests to add him to the tenancy agreement have not resulted in that occurring. He is self-employed and any inability or lack of work has a direct and adverse impact on the ability of the tenant to pay the rent.
Unfortunately, the tenant’s partner, who is self-employed, experienced a mental health issue over the long Easter weekend 2024 (late March 2024), such that since then he has been unable to work. This was confirmed by a medical certificate. He has experienced previous bouts of depression. They have been managed with medical assistance.
This medical event occurred prior to the signing of the fixed term extension. Given the severity of the event it was curious why the extension was later signed, given the long-term commitment required. I heard from the tenant that she was unaware the fixed term would roll over onto a periodic tenancy. She believed she had to leave or agree to a further fixed term. There was nothing in the landlord’s communication that might be considered to have misled the tenant.
The option for the tenant to roll the fixed term tenancy onto a periodic tenancy has been available since February 2021, and more recently subject to media attention given the intended alterations to the Residential Tenancy Act 1986 that might see such an option removed. Moving to a periodic tenancy would have seen the more appropriate path given the mental illness and related impacts.
As I explained at the hearing, while I accept the financial pressures the tenant is experiencing, I must first find there has been a change in the tenant’s circumstances and that any change was unforeseeable before considering any alteration to the fixed term tenancy per section 66 RTA.
Having further considered the respective submissions and evidence I do not find this situation meets the threshold to be considered an unforeseeable change in tenant circumstances, such that any order reducing or terminating the tenancy can be made.
Given that, I must dismiss the tenant application. Suppression
Section 95A RTA states regarding suppression orders that the Tribunal must, on the application of a party that has wholly or substantially succeeded in proceedings, order that the party’s name or identifying particulars not be published, unless the Tribunal considers that publication is in the public interest or is justified because of the party’s conduct or any other circumstances of the case.
Further, the Tribunal may, on the application of any party to proceedings or on its own initiative, having regard to the interests of the parties and to the public interest, order that all or part of the evidence given or the name or any identifying particulars of any witness or party not be published.
The tenant requested suppression in her application. As she has not been successful, suppression is not ordered automatically. However, I have considered it fair at this stage to order tenant name suppression on my own initiative. If the eventual end of the tenancy and any final rent liability cannot be mutually resolved, any future successful landlord application seeking compensation, and subsequent order, will not be bound by this suppression order.

Tenancy Tribunal case 4933193 — Tenancy dispute at 414B Oceanbeach Road, Mount Maunganui 3116

At a glance

Claims & awards

Tenancy Tribunal case 4933193 — Tenancy dispute at 414B Oceanbeach Road, Mount Maunganui 3116

At a glance

Claims & awards

Order

Reasons

Should the fixed-term tenancy be reduced or terminated?

Topics & place

Residential Tenancies Act sections

Frequently asked questions

Order

Reasons

Should the fixed-term tenancy be reduced or terminated?

Topics & place

Residential Tenancies Act sections

Frequently asked questions