What was Tenancy Tribunal case 5052871 about?

The tribunal order states: The application for the reduction of a fixed term tenancy is dismissed.

How much money was awarded in case 5052871?

Verified claim lines are listed on this page.

What type of tenancy dispute was case 5052871?

The dispute type was not classified.

Where can I read the official tribunal order for case 5052871?

The official Ministry of Justice published order is available at https://forms.justice.govt.nz/search/Documents/TTV2/PDF/11049301-Tribunal_Order_Redacted.pdf.

What was Tenancy Tribunal case 5052871 about?

The tribunal order states: The application for the reduction of a fixed term tenancy is dismissed.

How much money was awarded in case 5052871?

Verified claim lines are listed on this page.

What type of tenancy dispute was case 5052871?

The dispute type was not classified.

Where can I read the official tribunal order for case 5052871?

The official Ministry of Justice published order is available at https://forms.justice.govt.nz/search/Documents/TTV2/PDF/11049301-Tribunal_Order_Redacted.pdf.

4 Tirotiro Rise, Whakatane, Whakatane 3120 Tenancy Tribunal Case 5052871 — Tenancy dispute

Order

The application for the reduction of a fixed term tenancy is dismissed.

Reasons

Both parties attended the hearing. The landlord was represented by a property manager.
The tenants signed a fixed term tenancy agreement due in end on 31 March 2024. They are now renting another house which has a workshop attached which can be used to run a business. They are working with the landlord to find new tenants but that process is taking time. Their claim is that they cannot afford to pay two lots of rent and they want the Tribunal to make an order ending the 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 (RTA), 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 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.
The weighing of relative hardship is a question of fact to be assessed objectively in each case.
The tenants’ submission is that [Tenant 1] moved to W because of a job and [Tenant 2] stayed in [City]. It was much harder for [Tenant 2] to find a job in W than they anticipated. It was also much harder living in two cites than they anticipated. The tenants made the decision that [Tenant 2] would leave his job in [City] and start a business in W. They found the house plus workshop and moved out of the tenancy premises on 18 October 2024. They are currently paying two lots of rent using their savings, but that is not sustainable.
The landlord’s submission is she has sympathy and is actively marketing the house, but she has not found suitable replacement tenants. She said the owners are moving from another city at the end of the fixed term, so that limits people who are interested. She said the owners are paying two mortgages and need the rent paid on the W property.
I am not persuaded there has been an unforeseen change in the tenants’ circumstances. The tenants knew when they signed the fixed term tenancy agreement that they would be living in two cities and that [Tenant 2] would be looking for employment. This has been harder than expected, but I am not persuaded that being harder is a change in circumstances. The tenants’ decision to sign a second tenancy agreement was a choice they made and is not an unforeseen change in circumstances.
Having made that finding I do not have to consider hardship. However, it seems most likely to me that the hardship was equally balanced between the landlord and the tenants.
This means the claim is not proved and it is dismissed. The tenancy continues until new tenants are found. Suppression
The tenants have made an application for suppression. They are not the most successful party but I am using my discretion to allow suppression for all parties. This is because there has been no breach of the RTA and any interest is in the law rather than the names. See section 95A RTA.

Reasons

Both parties attended the hearing. The landlord was represented by a property manager.

The tenants signed a fixed term tenancy agreement due in end on 31 March 2024. They are now renting another house which has a workshop attached which can be used to run a business. They are working with the landlord to find new tenants but that process is taking time. Their claim is that they cannot afford to pay two lots of rent and they want the Tribunal to make an order ending the 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 (RTA), 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 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.

The weighing of relative hardship is a question of fact to be assessed objectively in each case.

The tenants’ submission is that [Tenant 1] moved to W because of a job and [Tenant 2] stayed in [City]. It was much harder for [Tenant 2] to find a job in W than they anticipated. It was also much harder living in two cites than they anticipated. The tenants made the decision that [Tenant 2] would leave his job in [City] and start a business in W. They found the house plus workshop and moved out of the tenancy premises on 18 October 2024. They are currently paying two lots of rent using their savings, but that is not sustainable.

The landlord’s submission is she has sympathy and is actively marketing the house, but she has not found suitable replacement tenants. She said the owners are moving from another city at the end of the fixed term, so that limits people who are interested. She said the owners are paying two mortgages and need the rent paid on the W property.

I am not persuaded there has been an unforeseen change in the tenants’ circumstances. The tenants knew when they signed the fixed term tenancy agreement that they would be living in two cities and that [Tenant 2] would be looking for employment. This has been harder than expected, but I am not persuaded that being harder is a change in circumstances. The tenants’ decision to sign a second tenancy agreement was a choice they made and is not an unforeseen change in circumstances.

Having made that finding I do not have to consider hardship. However, it seems most likely to me that the hardship was equally balanced between the landlord and the tenants.

This means the claim is not proved and it is dismissed. The tenancy continues until new tenants are found. Suppression

The tenants have made an application for suppression. They are not the most successful party but I am using my discretion to allow suppression for all parties. This is because there has been no breach of the RTA and any interest is in the law rather than the names. See section 95A RTA.

Tenancy Tribunal case 5052871 — Tenancy dispute at 4 Tirotiro Rise, Whakatane, Whakatane 3120

At a glance

Claims & awards

Tenancy Tribunal case 5052871 — Tenancy dispute at 4 Tirotiro Rise, Whakatane, Whakatane 3120

At a glance

Claims & awards

Order

Reasons

Topics & place

Residential Tenancies Act sections

Frequently asked questions

Order

Reasons

Topics & place

Residential Tenancies Act sections

Frequently asked questions