Published tribunal order
Tenancy Tribunal case 5021574 — Rent arrears at 8A Wedgewood Row, Rolleston, Rolleston 7614
Decided 2 Dec 2024 · Published 2 Dec 2024 · Application 5021574
- Rent arrears
- Cleanliness
Party names are redacted in the official published order.
Order
- An application for suppression has been made in this case, and the Tribunal orders suppression of the tenants’ names and identifying details.
- [The tenant/s] must pay Iron Bridge Property Management Limited as agent for K. Foldesdi $200.00 immediately, calculated as shown in table below:
- The Bond Centre is to pay the bond of $2,800.00 ([Bond number suppressed]) to Iron Bridge Property Management Limited as agent for K. Foldesdi immediately.
- The term of the fixed-term tenancy of [The tenant/s] at 8A Wedgewood Row, Rolleston, Rolleston 7614 is reduced and now ends on 27 September 2024.
- The application for a break lease fee is withdrawn.
- The application for cleaning costs is dismissed.
Reasons
- Both parties attended the hearing, the tenants by phone and the landlord’s representatives Ms Payne and Ms Winder in person.
- The tenant has applied for a reduction of the fixed-term tenancy due to end on 12 August 2025.
- The landlord has applied for rent arrears, water rates, cleaning costs, and a break lease fee. The tenants’ application
Should the term of the fixed term tenancy be reduced?
- The Tribunal may reduce a fixed term tenancy where: a. there has been an unforeseen change in the applicant’s circumstances; and b. there would be severe hardship to the applicant if the term is not reduced; and c. the applicant’s hardship would be greater than the hardship to the other party if the term is reduced. See section 66(1) Residential Tenancies Act 1986 (RTA).
- There has been an unforeseen change in the tenants’ circumstances. Both tenants were unexpectedly made redundant following the insolvency of their employer.
- The tenants would suffer severe hardship if the term of the tenancy were not reduced. They did not qualify for assistance from WINZ; they have had to relocate to live with family; and they still have not found employment. In addition, one of the tenants has on-going health issues.
- The landlord would suffer hardship if the term is reduced due to a potential loss of rent.
- I find that the tenants’ hardship would be greater than the landlord’s hardship. Usually, a landlord, being in business, is better able to prepare for and absorb losses arising from a situation such as this. Here, the landlord’s loss will be minimal for reasons I will now explain. If the term of the tenancy is not reduced the tenants will be liable for rent when they clearly have no means to pay.
- Where the Tribunal reduces a fixed-term tenancy, it may order the tenant to pay the landlord reasonable compensation for any resulting loss. See section 66(2) RTA. Often, the compensation awarded for the loss of the contract will equate to the amount of the bond.
- I award compensation of $2,800.00 (the bond amount) to the landlord, considering that the property manager acted promptly and found a new tenant. The new tenancy started on 18 October 2024.
- The tenants said they could have found replacement tenants immediately. But the landlord is not required to simply agree to anyone the tenants consider acceptable. A prudent landlord/property manager will conduct reference and other checks before agreeing to new tenants. Here, the landlord acted promptly and cannot be criticised for any delay. The landlord’s application
- The landlord sought rent to 17 October 2024 ($2,872.86) but I have limited the compensation amount to the bond amount which is slightly less.
- The landlord also sought cleaning costs of $248.86. The tenants produced evidence of the cleaning work they paid a contractor to do. That further cleaning might have been required is a loss that can be included in the overall compensation amount awarded to the landlord. Landlords must expect to have to do some cleaning between tenancies.
- In other words, I find that the tenants generally met their statutory responsibility to leave the premises including the lawns and gardens reasonably clean and reasonably tidy at the date I have ended the tenancy.
- The landlord withdrew a claim for break lease costs. That is a concession to the tenants recognising their difficult circumstances. The Tribunal would normally award reasonable costs as additional compensation when a fixed term tenancy is broken before the expiry of the term of the tenancy.
- I find proved a claim for water rates, but I have awarded a contribution only. The owner of the premises did not provide the water rates invoices promptly as is required. The tenants should not therefore be required to pay historic water rates. Ms Payne sought a 50% contribution to the water rates; I have awarded $200.00 a little less than sought.
- I make no award of the filing fees. Each party has succeeded on their applications. An award to one would be cancelled by an award to the other. Result
- The term of the fixed term tenancy is reduced and now ends as of 27 September 2024.
- The bond will be paid to the landlord as compensation for losses arising from the reduction of the term of the fixed term tenancy.
- In addition to compensation of $2,800.00 (the bond) the tenants must pay $200.00 as a contribution towards unpaid water rates.
- The tenants must therefore pay the landlord $200.00. Name suppression
- The landlord did not seek name suppression. The tenant sought, and is entitled to, a name suppression order on the successful application - see section 95A RTA.