What was Tenancy Tribunal case 5075828 about?

The tribunal order states: An application for suppression has been made in this case, and the Tribunal

How much money was awarded in case 5075828?

Compensation: $600.00 awarded to landlord; Rent Arrears: $257.14 awarded to landlord

What type of tenancy dispute was case 5075828?

The primary dispute was Rent arrears.

Where can I read the official tribunal order for case 5075828?

The official Ministry of Justice published order is available at https://forms.justice.govt.nz/search/Documents/TTV2/PDF/11177530-Tribunal_Order_Redacted.pdf.

What was Tenancy Tribunal case 5075828 about?

The tribunal order states: An application for suppression has been made in this case, and the Tribunal

How much money was awarded in case 5075828?

Compensation: $600.00 awarded to landlord; Rent Arrears: $257.14 awarded to landlord

What type of tenancy dispute was case 5075828?

The primary dispute was Rent arrears.

Where can I read the official tribunal order for case 5075828?

The official Ministry of Justice published order is available at https://forms.justice.govt.nz/search/Documents/TTV2/PDF/11177530-Tribunal_Order_Redacted.pdf.

New Zealand Tenancy Tribunal Case 5075828 — Rent arrears

Claims and awards in Tenancy Tribunal application 5075828. Amounts reconciled from the published order (claims sum and net total). Verify on MoJ.
Claim	Landlord	Tenant	Reason
immediately being rent arrears from 27 to 30 November 2024 of	$257.14		immediately being rent arrears from 27 to 30 November 2024 of
together with compensation of one week’s rent being	$600.00		together with compensation of one week’s rent being

Order

An application for suppression has been made in this case, and the Tribunal orders suppression of the both the landlord and tenant’s names and identifying details.
The term of the fixed-term tenancy of [The tenant/s] at [Tenancy address suppressed] is reduced and now ends on 30 November 2024.
[The tenant/s] must pay the landlord $857.14 immediately being rent arrears from 27 to 30 November 2024 of $257.14 together with compensation of one week’s rent being $600.00.

Reasons

Both parties attended the hearing which was conducted by phone. [Trustee 1] confirmed that she had authority to represent all three trustees.
The tenancy began on 9 February 2023 and was initially for a fixed term of one year, ending on 8 March 2024. The parties then extended the fixed term on 9 March 2024 through to 7 March 2025. The rent is currently $600.00 per week.
The tenant has applied for reduction of the fixed-term tenancy.

Should 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.
The tenant explained that in June 2024, three months after signing the extension of the fixed term, his employment was impacted as his role was disestablished. He successfully applied for a new role with significantly reduced pay and was still able to meet all his expenses, although with some difficulty. However in October 2024 he was advised that he was being made redundant and that his last day would be 29 November 2024.
The tenant said that he could no longer meet his expenses. He advised the landlord on 22 October 2024 that he could not continue in the tenancy. He said that he would have preferred to move out earlier but thought that four weeks should be sufficient time for the landlord to find a new tenant and so continued in the tenancy and paid rent until he moved out on 30 November 2024. He has now moved in with friends.
There has been a change in the tenant’s circumstances. His employment has ended and he no longer has sufficient income to meet the rent. The change is unforeseen.
The tenant would suffer severe hardship if the term of the tenancy were not reduced. He now has very limited income.
The landlord would suffer hardship if the fixed term is reduced. The landlord explained that the loan repayments in respect of the property are $1,940.00 per fortnight, more than the rent received. The landlord explained that there will be three weeks where rent is not paid before the new tenancy begins ($1,800.00) and also said that they have incurred costs (yet to be invoiced and paid) with a rental agency of $1,000.50 (for a letting fee of $600, advertising costs of $250.00 and a credit check of $20.00 plus GST of $130.50).
This is a difficult situation for everybody, but I find that the tenant’s hardship would be greater than the landlord’s hardship. The landlord has an investment property and is likely to lose some rent for a short period. However the tenant has lost his entire income and if forced to continue in the tenancy to the end of the fixed term would inevitably incur increasing and ongoing unmanageable debt.
Accordingly I find that the fixed term should be reduced so the tenancy now ends (and in fact ended) on 30 November 2024.

Is the landlord entitled to compensation?

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) Residential Tenancies Act 1986.
The tenant advised the landlord of his circumstances on 22 October 2024 and moved out on 30 November 2024. There were various discussions between the parties as to an agreement ending the tenancy but ultimately they were unable to reach an agreement on terms which led the tenant to file this claim.
The landlord advertised the property on 4 November 2024 and on 22 November 2024 entered into a tenancy agreement with new tenants for fixed term until 15 January 2026 but those tenants cannot move in until 19 December 2024.
At the hearing today the tenant accepted that he had (unintentionally) missed three days of rent as his rent payments were only for the period up to 27 November 2024 but he moved out on 30 November 2024. He agrees to pay the additional three days, being $257.14.
The landlord also seeks the following compensation: a. Rent from 31 November until the new tenants move in being two weeks and four days weeks rent ($1,542.86). b. Compensation for expenses that will be charged to them for finding new tenants as set out in paragraph 8 above 1 .
In determining what compensation is reasonable I am mindful that the tenancy was for a fixed term of 12 months and has ended four months early. The landlord has now entered into another fixed term tenancy, for the same rental, which ends in January 2026.
Because this tenancy ended only four months before the end of the fixed term, and the landlord now has a new tenancy until mid January 2026, I do not consider that the landlord is entitled to compensation for the cost of finding new tenants. These are costs that the landlord would have incurred anyway, although in March 2025. The costs have been incurred earlier than they would have been but I do not consider that to be a reason to compensate the landlord.
I am also mindful that it is common for landlords to allow a week between tenancies, particularly as this was a tenancy of nearly two years, so that the landlord can do maintenance and additional cleaning. For that reason I do not consider that the landlord should be entitled to compensation for the entire three weeks period between the tenant moving out and new tenants moving in, as the 1 The landlord had originally claimed a “break fee” of $1,450 as set out in the Tenancy Agreement. However landlords are only entitled to “expenses reasonably incurred by the landlord” and must provide tenants with an itemised account of such expenses (see section 44A RTA) landlord would have likely had a period in between tenants when the fixed term ended in March 2025 anyway.
It took the landlord just under three weeks from the date of advertising to find a new tenant, although those tenants had to give notice and so are not able to move in until 19 December 2024. I was told the tenant cooperated with viewings and assisted in showing prospective new tenants around the property.
I accept that there was some initial confusion around when the tenant would be leaving that may have led to the landlord not advertising as quickly as they might have otherwise done. In all the circumstances I consider that it is reasonable to award the landlord one additional week of rent by way of compensation ($600.00). Filing fee and name suppression
The tenant has successfully applied to reduce the fixed term but the landlord has also received some compensation. In the circumstances I have not reimbursed the filing fee.
Both parties sought an order for name suppression. It appears to me that, because of the urgency that often exists when a tenant applies to reduce the fixed term, the parties did not have the opportunity to try and resolve matters in mediation.
There was not sufficient time at the hearing today to enable the parties time to fully discuss potential settlement and so the parties left the matter of compensation to the Tribunal to determine. The parties continue to have a good relationship and are cooperating on all other issues regarding the end of the tenancy. The parties seemed confident that they will be able to reach agreement regarding the release of the bond, which is still held at the Bond Centre.
In the circumstances I have exercised my discretion to suppress both parties’ names and identifying details pursuant to section 95A RTA. I do not consider that there is any public interest in publication.

Claims and awards in Tenancy Tribunal application 5075828. Amounts reconciled from the published order (claims sum and net total). Verify on MoJ.
Claim	Landlord	Tenant	Reason
immediately being rent arrears from 27 to 30 November 2024 of	$257.14		immediately being rent arrears from 27 to 30 November 2024 of
together with compensation of one week’s rent being	$600.00		together with compensation of one week’s rent being

Order

An application for suppression has been made in this case, and the Tribunal orders suppression of the both the landlord and tenant’s names and identifying details.
The term of the fixed-term tenancy of [The tenant/s] at [Tenancy address suppressed] is reduced and now ends on 30 November 2024.
[The tenant/s] must pay the landlord $857.14 immediately being rent arrears from 27 to 30 November 2024 of $257.14 together with compensation of one week’s rent being $600.00.

Reasons

Both parties attended the hearing which was conducted by phone. [Trustee 1] confirmed that she had authority to represent all three trustees.
The tenancy began on 9 February 2023 and was initially for a fixed term of one year, ending on 8 March 2024. The parties then extended the fixed term on 9 March 2024 through to 7 March 2025. The rent is currently $600.00 per week.
The tenant has applied for reduction of the fixed-term tenancy.

Should 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.
The tenant explained that in June 2024, three months after signing the extension of the fixed term, his employment was impacted as his role was disestablished. He successfully applied for a new role with significantly reduced pay and was still able to meet all his expenses, although with some difficulty. However in October 2024 he was advised that he was being made redundant and that his last day would be 29 November 2024.
The tenant said that he could no longer meet his expenses. He advised the landlord on 22 October 2024 that he could not continue in the tenancy. He said that he would have preferred to move out earlier but thought that four weeks should be sufficient time for the landlord to find a new tenant and so continued in the tenancy and paid rent until he moved out on 30 November 2024. He has now moved in with friends.
There has been a change in the tenant’s circumstances. His employment has ended and he no longer has sufficient income to meet the rent. The change is unforeseen.
The tenant would suffer severe hardship if the term of the tenancy were not reduced. He now has very limited income.
The landlord would suffer hardship if the fixed term is reduced. The landlord explained that the loan repayments in respect of the property are $1,940.00 per fortnight, more than the rent received. The landlord explained that there will be three weeks where rent is not paid before the new tenancy begins ($1,800.00) and also said that they have incurred costs (yet to be invoiced and paid) with a rental agency of $1,000.50 (for a letting fee of $600, advertising costs of $250.00 and a credit check of $20.00 plus GST of $130.50).
This is a difficult situation for everybody, but I find that the tenant’s hardship would be greater than the landlord’s hardship. The landlord has an investment property and is likely to lose some rent for a short period. However the tenant has lost his entire income and if forced to continue in the tenancy to the end of the fixed term would inevitably incur increasing and ongoing unmanageable debt.
Accordingly I find that the fixed term should be reduced so the tenancy now ends (and in fact ended) on 30 November 2024.

Is the landlord entitled to compensation?

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) Residential Tenancies Act 1986.
The tenant advised the landlord of his circumstances on 22 October 2024 and moved out on 30 November 2024. There were various discussions between the parties as to an agreement ending the tenancy but ultimately they were unable to reach an agreement on terms which led the tenant to file this claim.
The landlord advertised the property on 4 November 2024 and on 22 November 2024 entered into a tenancy agreement with new tenants for fixed term until 15 January 2026 but those tenants cannot move in until 19 December 2024.
At the hearing today the tenant accepted that he had (unintentionally) missed three days of rent as his rent payments were only for the period up to 27 November 2024 but he moved out on 30 November 2024. He agrees to pay the additional three days, being $257.14.
The landlord also seeks the following compensation: a. Rent from 31 November until the new tenants move in being two weeks and four days weeks rent ($1,542.86). b. Compensation for expenses that will be charged to them for finding new tenants as set out in paragraph 8 above 1 .
In determining what compensation is reasonable I am mindful that the tenancy was for a fixed term of 12 months and has ended four months early. The landlord has now entered into another fixed term tenancy, for the same rental, which ends in January 2026.
Because this tenancy ended only four months before the end of the fixed term, and the landlord now has a new tenancy until mid January 2026, I do not consider that the landlord is entitled to compensation for the cost of finding new tenants. These are costs that the landlord would have incurred anyway, although in March 2025. The costs have been incurred earlier than they would have been but I do not consider that to be a reason to compensate the landlord.
I am also mindful that it is common for landlords to allow a week between tenancies, particularly as this was a tenancy of nearly two years, so that the landlord can do maintenance and additional cleaning. For that reason I do not consider that the landlord should be entitled to compensation for the entire three weeks period between the tenant moving out and new tenants moving in, as the 1 The landlord had originally claimed a “break fee” of $1,450 as set out in the Tenancy Agreement. However landlords are only entitled to “expenses reasonably incurred by the landlord” and must provide tenants with an itemised account of such expenses (see section 44A RTA) landlord would have likely had a period in between tenants when the fixed term ended in March 2025 anyway.
It took the landlord just under three weeks from the date of advertising to find a new tenant, although those tenants had to give notice and so are not able to move in until 19 December 2024. I was told the tenant cooperated with viewings and assisted in showing prospective new tenants around the property.
I accept that there was some initial confusion around when the tenant would be leaving that may have led to the landlord not advertising as quickly as they might have otherwise done. In all the circumstances I consider that it is reasonable to award the landlord one additional week of rent by way of compensation ($600.00). Filing fee and name suppression
The tenant has successfully applied to reduce the fixed term but the landlord has also received some compensation. In the circumstances I have not reimbursed the filing fee.
Both parties sought an order for name suppression. It appears to me that, because of the urgency that often exists when a tenant applies to reduce the fixed term, the parties did not have the opportunity to try and resolve matters in mediation.
There was not sufficient time at the hearing today to enable the parties time to fully discuss potential settlement and so the parties left the matter of compensation to the Tribunal to determine. The parties continue to have a good relationship and are cooperating on all other issues regarding the end of the tenancy. The parties seemed confident that they will be able to reach agreement regarding the release of the bond, which is still held at the Bond Centre.
In the circumstances I have exercised my discretion to suppress both parties’ names and identifying details pursuant to section 95A RTA. I do not consider that there is any public interest in publication.

Tenancy Tribunal case 5075828 — Rent arrears

At a glance

Tenancy Tribunal case 5075828 — Rent arrears

At a glance

Claims & awards

Order

Reasons

Should the fixed term tenancy be reduced?

Is the landlord entitled to compensation?

Topics & place

Residential Tenancies Act sections

Key findings

Frequently asked questions

Claims & awards

Order

Reasons

Should the fixed term tenancy be reduced?

Is the landlord entitled to compensation?

Topics & place

Residential Tenancies Act sections

Key findings

Frequently asked questions