Published tribunal order
Tenancy Tribunal case 5048178 — Property damage at 45F Arana Drive, Karaka, RD 2, Papakura 2578
Decided 16 May 2025 · Published 16 May 2025 · Application 5048178
Landlord favoured
- Property damage
- Cleanliness
Order
ON THE LANDLORD’S CLAIMS
- The Bond Centre is to refund $7,550.00 from the bond of $9,000.00 (6371065- 006) to the tenants Peter Grogan and Jenny Grogan immediately.
- The balance of the bond of $1,450.00 is to remain at the Bond Centre towards these items.
Reasons
- Both parties attended the hearing.
- The landlord has applied for compensation, refund of the bond, and reimbursement of the filing fee following the end of the tenancy.
- The tenant has counterclaimed for damages and exemplary damages against the landlord.
- I have heard the landlord’s claims in full. I have adjourned the tenant’s claims part-heard to the second day’s fixture on 23 May 2025 to allow the landlord to properly respond.
- Given the amount of bond paid, and my findings (below) in respect of the landlord’s claims, I consider that it is appropriate that I return the balance of the bond to the tenant forthwith.
Did the tenant comply with their obligations at the end of the tenancy?
- At the end of the tenancy the tenant must leave the premises reasonably clean and tidy, remove all rubbish, return all keys and security devices, and leave all chattels provided for their benefit. See section 40(1)(e)(ii)-(v) Residential Tenancies Act 1986.
- I find on the evidence that the tenant did not leave the premises reasonably clean and tidy.
- Only the amounts ordered are proved.
Is the tenant responsible for the damage to the premises?
- A landlord must prove that damage to the premises occurred during the tenancy and is more than fair wear and tear. If this is established, to avoid liability, the tenant must prove they did not carelessly or intentionally cause or permit the damage. Tenants are liable for the actions of people at the premises with their permission. See sections 40(2)(a), 41 and 49B RTA.
- Where the damage is caused carelessly, and is covered by the landlord's insurance, the tenant's liability is limited to the lesser of the insurance excess or four weeks' rent (or four weeks' market rent in the case of a tenant paying income-related rent). See section 49B(3)(a) RTA.
- Where the damage is careless and is not covered by the landlord's insurance, the tenant's liability is limited to four weeks' rent (or market rent). See section 49B(3)(b) RTA. Where insurance money is irrecoverable because of the tenant's conduct, the property is treated as if it is not insured against the damage. See section 49B(3A)(a) RTA.
- Tenants are liable for the cost of repairing damage that is intentional or which results from any activity at the premises that is an imprisonable offence. This applies to anything the tenant does and anything done by a person they are responsible for. See section 49B(1) RTA.
- Damage is intentional where a person intends to cause damage and takes the necessary steps to achieve that purpose. Damage is also intentional where a person does something, or allows a situation to continue, knowing that damage is a certainty. See Guo v Korck [2019] NZHC 1541.
- A door was damaged by the tenant’s dog during the tenancy. The damage is more than fair wear and tear, and the tenant has not disproved liability for the damage.
- The amounts ordered are proved.
- I have taken into account betterment and depreciation. The landlord should be returned to the position they would have been in had the tenant not breached their obligations, and should not be better or worse off. In calculating depreciation, I have taken into account the age and condition of the items at the start of the tenancy and their likely useful lifespan.
- Given my above findings, the maximum amount that the landlord could have received from the bond is $1,450.00. Consequently, I consider it appropriate that the balance of the bond of $7,550.00 is returned to the tenant forthwith as the bond is the tenant’s money.
- I am not releasing the $1,450.00 to the landlord presently because the tenant’s counterclaims, if successful and proved, could well set-off the landlord’s successful claims in their entirely.
- Therefore, the balance of the bond of $1,450.00 should remain at the bond centre pending full disposal of the tenant’s counterclaims.