Published tribunal order
Tenancy Tribunal case 5002289 — Rent arrears at 16 Mervan Street, Mangere East, Auckland 2024
Decided 23 Oct 2024 · Published 23 Oct 2024 · Application 5002289
- Rent arrears
Order
- The tenancy of [The tenant/s] at 16 Mervan Street, Māngere East, Auckland is terminated, and possession is granted to Inhouse Rentals Limited immediately.
- The Bond Centre is to pay the bond of $2,360.00 to Inhouse Rentals Limited immediately.
- [The tenant/s] must pay Inhouse Rentals Limited $24,732.73 immediately, calculated as shown in the table below:
Reasons
- The Landlord attended the hearing. The Tenant did not attend. DescriptionLandlord Adjusted rent arrears owing$24,980.00 Water arrears$2,092.29 Filing fee reimbursement$20.44 Total$27,092.73 Less bond($2,360.00) Total payable by Tenant to Landlord$24,732.73
- The Landlord has applied for termination of the tenancy, rent arrears, water arrears, refund of the bond, disposal of goods left at the premises, and reimbursement of the filing fee.
- The tenancy commenced on 28 May 2021, with weekly rent set at $590.00. Termination
- Rent was at least 21 days in arrears on the date the application was filed. Under section 55(1)(a) of the Residential Tenancies Act 1986 (the Act), the Tribunal must terminate the tenancy in such circumstances. Accordingly, the tenancy is terminated immediately. Rent Arrears
- The Landlord provided a detailed rent summary showing that as of 13 September 2024, rent arrears totalled $31,660.00. Assessment of Mitigation Efforts
- Under s 49 of the Act, a Landlord must take all reasonable steps to mitigate any loss arising from a breach of the tenancy agreement.
- The Tenant provided assurances and supporting documentation in November 2023 and January 2024 indicating they were in the process of obtaining a hardship withdrawal from their KiwiSaver provider to address the rent arrears.
- It was reasonable for the Landlord to rely on these assurances up to 11 January 2024. Therefore, the Landlord did not fail to mitigate their loss during this period.
- However, after 11 January 2024, when the hardship withdrawal did not materialise and no substantial payments were made, the Landlord should have taken prompt action to mitigate their loss, such as issuing a 14-day notice or applying to the Tribunal for termination.
- The landlord delayed taking formal action to terminate the tenancy and allowed arrears to accumulate significantly after 11 January 2024. Adjustment of Rent Arrears
- Rent Arrears up to 11 January 2024 (No Reduction Applied): $11,620.00
- Rent Arrears from 12 January 2024 to 13 September 2024 (Reduction Applied): Applying one-third reduction: $20,040.00 x 1/3 = $6,680.00 Adjusted arrears for this period: $20,040.00 - $6,680.00 = $13,360.00
- Total Adjusted Rent Arrears Before Payments: $11,620.00 (arrears up to 11 January 2024) $13,360.00 (adjusted arrears from 12 January 2024 to 13 September 2024) Total: $24,980.00 Water Arrears
- The Landlord claims water arrears of $2,092.29, supported by invoices. Under the Act, tenants are responsible for outgoings attributable to their occupation. The tenant must pay this amount. Bond
- The Landlord seeks to apply the bond of $2,360.00 towards the arrears. The Tenant has signed the bond refund form, and it has been lodged accordingly. Filing Fee
- The landlord's application is substantially successful. The tenant is to reimburse the filing fee of $20.44. Conclusion
- The total amount payable by the tenant to the landlord is $23,939.40, after adjustments and deductions.