What was the outcome of Tenancy Tribunal case 4969233?

The tribunal order states: The application is dismissed.

How much money was awarded in case 4969233?

Verified claim lines are listed on this page.

What type of tenancy dispute was case 4969233?

The primary dispute was Rent arrears. Related themes: 14-day notice.

Where can I read the official tribunal order for case 4969233?

The official Ministry of Justice published order is available at https://forms.justice.govt.nz/search/Documents/TTV2/PDF/10914834-Tenancy_Tribunal_Order.pdf.

What was the outcome of Tenancy Tribunal case 4969233?

The tribunal order states: The application is dismissed.

How much money was awarded in case 4969233?

Verified claim lines are listed on this page.

What type of tenancy dispute was case 4969233?

The primary dispute was Rent arrears. Related themes: 14-day notice.

Where can I read the official tribunal order for case 4969233?

The official Ministry of Justice published order is available at https://forms.justice.govt.nz/search/Documents/TTV2/PDF/10914834-Tenancy_Tribunal_Order.pdf.

21 Leith Street, Gisborne, Gisborne 4010 Tenancy Tribunal Case 4969233 — Rent arrears

Order

The application is dismissed.

Reasons

The hearing was held on 2 October 2024 by teleconference. Mrs Houthuijzen attended the hearing for the landlords. The Tribunal was unable to contact the tenant. The tenant was contacted several times on the contact number provided in the application but on all occasions the call went unanswered and dropped to voice mail. I proceeded with the hearing in the tenant’s absence as I was satisfied that adequate service of the hearing notice had been completed.
The landlord has applied for termination of the tenancy, rent arrears and refund of the bond.

Should the tenancy be terminated?

The Tribunal shall terminate a tenancy where: a. on 3 separate occasions within a 90-day period the rent has been at least 5 working days in arrear; and b. on each occasion the landlord gave the tenant written notice advising the tenant of the arrear, the dates for which rent was overdue, the amount or amounts of overdue rent, and the tenant’s right to make an application to the Tribunal challenging the notice; and c. each notice stated how many other notices (if any) the landlord had given the tenant under this paragraph in relation to the same tenancy and 90-day period; and d. the landlord’s application to the Tribunal was made within 28 days after the landlord gave the third notice. See section 55(1)(aa) Residential Tenancies Act 1986 (“RTA”).
The Tribunal may also terminate a tenancy for breach where, due to the nature or extent of the breach, it would be inequitable to refuse to terminate. See section 56(1) RTA.
Where the breach is capable of remedy the landlord must first serve a notice on the tenant requiring them to remedy the breach within at least 14 days and establish that the tenant has failed to do so.
The landlord advised at the hearing that although the tenant is now up to date with rent, she has consistently been late with payment of rent since the start. She has no confidence that the tenant will pay rent on time and therefore wished to pursue termination.
In this case, the Tribunal is unable to terminate the tenancy due to deficiencies in both the rent summary and the notices served to the tenant regarding the outstanding rent arrears.
The confusion in the rent calculation arises because the tenancy officially started on Monday, 13 May 2024, but the rent due is recorded as Wednesday, 15 May 2024, which is when the tenant gets paid and prefers to make the payment. This has led to discrepancies in the rent record, as the rent period should technically run from Monday to Sunday each week. However, by accepting payments starting on Wednesday, the landlord’s records do not align with this agreement. This creates a situation where rent payments are always two days behind the actual start of the rent period. As the rent period begins on Monday and payment is made on Wednesday, the tenant is automatically two days in arrears each week. This means that, unless the tenant pays for these extra two days upfront, they will continually be behind on rent. This should be reflected in the rent record’s rent arrears running log, but it is not. The landlord’s rent records, starting on Wednesday, give a false impression that the tenant is current with their payments. In reality, the tenant is behind by two days every week unless they pay extra to cover the gap.
If the tenant prefers to pay rent on Wednesday, they must pay an additional two days’ worth of rent (for Monday and Tuesday) when they make their next payment. This would ensure that each subsequent Wednesday payment covers the full rental period, keeping them up to date and preventing arrears from accumulating.
While the adjustment in the payment date was made for the tenant’s convenience, it inadvertently caused the rent calculation to be inaccurate. To correct this, the tenant would need to make an additional payment for the first two days (Monday and Tuesday) to align with the actual rent period starting on 13 May 2024.
I accept this situation is not ideal for the landlord. The landlord must ensure their rent records and notices under sections 55(1)(aa) and 56 are accurate to pursue termination. The notices served to the tenant regarding rent arrears are based on an incorrect rent summary. Notices of rent arrears must meet specific legal requirements, including accurate rent calculations and clear communication to the tenant. Any deficiencies or inaccuracies in these notices render them invalid, meaning the Tribunal cannot rely on these notices as a basis for terminating the tenancy.
Having said this, the Tribunal sounds a note of caution to the tenant. It is hazardous to persistently have outstanding rent arrears. It is time-consuming and hence costly for the landlord to pursue rent arrears. While a landlord must ensure their rent records and notices are accurate to pursue termination successfully, they have legal grounds to seek termination if the tenant has a consistent history of late payments.

Order

The application is dismissed.

Reasons

The hearing was held on 2 October 2024 by teleconference. Mrs Houthuijzen attended the hearing for the landlords. The Tribunal was unable to contact the tenant. The tenant was contacted several times on the contact number provided in the application but on all occasions the call went unanswered and dropped to voice mail. I proceeded with the hearing in the tenant’s absence as I was satisfied that adequate service of the hearing notice had been completed.
The landlord has applied for termination of the tenancy, rent arrears and refund of the bond.

Should the tenancy be terminated?

The Tribunal shall terminate a tenancy where: a. on 3 separate occasions within a 90-day period the rent has been at least 5 working days in arrear; and b. on each occasion the landlord gave the tenant written notice advising the tenant of the arrear, the dates for which rent was overdue, the amount or amounts of overdue rent, and the tenant’s right to make an application to the Tribunal challenging the notice; and c. each notice stated how many other notices (if any) the landlord had given the tenant under this paragraph in relation to the same tenancy and 90-day period; and d. the landlord’s application to the Tribunal was made within 28 days after the landlord gave the third notice. See section 55(1)(aa) Residential Tenancies Act 1986 (“RTA”).
The Tribunal may also terminate a tenancy for breach where, due to the nature or extent of the breach, it would be inequitable to refuse to terminate. See section 56(1) RTA.
Where the breach is capable of remedy the landlord must first serve a notice on the tenant requiring them to remedy the breach within at least 14 days and establish that the tenant has failed to do so.
The landlord advised at the hearing that although the tenant is now up to date with rent, she has consistently been late with payment of rent since the start. She has no confidence that the tenant will pay rent on time and therefore wished to pursue termination.
In this case, the Tribunal is unable to terminate the tenancy due to deficiencies in both the rent summary and the notices served to the tenant regarding the outstanding rent arrears.
The confusion in the rent calculation arises because the tenancy officially started on Monday, 13 May 2024, but the rent due is recorded as Wednesday, 15 May 2024, which is when the tenant gets paid and prefers to make the payment. This has led to discrepancies in the rent record, as the rent period should technically run from Monday to Sunday each week. However, by accepting payments starting on Wednesday, the landlord’s records do not align with this agreement. This creates a situation where rent payments are always two days behind the actual start of the rent period. As the rent period begins on Monday and payment is made on Wednesday, the tenant is automatically two days in arrears each week. This means that, unless the tenant pays for these extra two days upfront, they will continually be behind on rent. This should be reflected in the rent record’s rent arrears running log, but it is not. The landlord’s rent records, starting on Wednesday, give a false impression that the tenant is current with their payments. In reality, the tenant is behind by two days every week unless they pay extra to cover the gap.
If the tenant prefers to pay rent on Wednesday, they must pay an additional two days’ worth of rent (for Monday and Tuesday) when they make their next payment. This would ensure that each subsequent Wednesday payment covers the full rental period, keeping them up to date and preventing arrears from accumulating.
While the adjustment in the payment date was made for the tenant’s convenience, it inadvertently caused the rent calculation to be inaccurate. To correct this, the tenant would need to make an additional payment for the first two days (Monday and Tuesday) to align with the actual rent period starting on 13 May 2024.
I accept this situation is not ideal for the landlord. The landlord must ensure their rent records and notices under sections 55(1)(aa) and 56 are accurate to pursue termination. The notices served to the tenant regarding rent arrears are based on an incorrect rent summary. Notices of rent arrears must meet specific legal requirements, including accurate rent calculations and clear communication to the tenant. Any deficiencies or inaccuracies in these notices render them invalid, meaning the Tribunal cannot rely on these notices as a basis for terminating the tenancy.
Having said this, the Tribunal sounds a note of caution to the tenant. It is hazardous to persistently have outstanding rent arrears. It is time-consuming and hence costly for the landlord to pursue rent arrears. While a landlord must ensure their rent records and notices are accurate to pursue termination successfully, they have legal grounds to seek termination if the tenant has a consistent history of late payments.

Tenancy Tribunal case 4969233 — Rent arrears at 21 Leith Street, Gisborne, Gisborne 4010

At a glance

Tenancy Tribunal case 4969233 — Rent arrears at 21 Leith Street, Gisborne, Gisborne 4010

At a glance

Claims & awards

Order

Reasons

Should the tenancy be terminated?

Topics & place

Residential Tenancies Act sections

Key findings

Frequently asked questions

Claims & awards

Order

Reasons

Should the tenancy be terminated?

Topics & place

Residential Tenancies Act sections

Key findings

Frequently asked questions