What was Tenancy Tribunal case 5222212 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 5222212?

Verified claim lines are listed on this page.

What type of tenancy dispute was case 5222212?

The primary dispute was Rent arrears.

Where can I read the official tribunal order for case 5222212?

The official Ministry of Justice published order is available at https://forms.justice.govt.nz/search/Documents/TTV2/PDF/11733001-Tribunal_Order_Redacted.pdf.

What was Tenancy Tribunal case 5222212 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 5222212?

Verified claim lines are listed on this page.

What type of tenancy dispute was case 5222212?

The primary dispute was Rent arrears.

Where can I read the official tribunal order for case 5222212?

The official Ministry of Justice published order is available at https://forms.justice.govt.nz/search/Documents/TTV2/PDF/11733001-Tribunal_Order_Redacted.pdf.

New Zealand Tenancy Tribunal Case 5222212 — Rent arrears

Order

An application for suppression has been made in this case, and the Tribunal orders suppression of the name’s and identifying details.
The term of the fixed-term tenancy of [The tenant/s] at [Tenancy address suppressed] is reduced and now ends at 11.59 pm on Thursday 24 April 2025.

Reasons

Both parties attended the hearing.
The tenant signed a fixed term tenancy agreement for one year, from November 2024. The rent is $1700 a week. The tenant owns a business that works in the construction industry. The weekly rent is being paid from the company account. The tenant has filed an application asking that the Tribunal make an order ending the tenancy because of severe financial hardship.
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: • there has been a change in their circumstances • the change was unforeseen • the unforeseen change will result in severe hardship to the applicant if the tenancy is not reduced • 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.

Should this tenancy end?

The tenant’s submission is that his construction company is not getting contracts at the moment. This has significantly impacted on his drawings and the rent he can pay. The tenant stated that the construction industry has changed significantly since November 2024. At the start of the tenancy he was quoting around 20 jobs a month and since January he has been quoting about one job a month. This submission was not challenged by the landlord. I find there has been a change in the tenant’s circumstances and the change was unforeseen.
The weighing of relative hardship is a question of fact to be assessed objectively in each case. The tenant provided me with bank statements showing the company is in overdraft. There is an email from the tenant’s accountant stating the company was so seriously in debt at the end of February that conversations needed to be had about insolvency. He owes money to IRD.
I have not been provided with statements from the tenant’s personal bank accounts. He said his only income is from the company, and I accept all rent has been paid by the company. His partner has also been made redundant. He said his rent is up to date but he is not sure he will have the money to pay any more rent. The tenant is also under a significant stress.
The landlord agreed that the tenant’s financial position is poor. She submitted that the owner will lose rent until a new tenant is found. I was not provided with any financial information, such as bank statements, for the owner. The owner has insurance.
I find the unforeseen change has resulted in hardship. It seems most likely to me the hardship the tenant will suffer if the fixed term is not reduced exceeds the hardship the landlord will suffer if the term is reduced. I find this tenancy should end.
The tenant has asked that the tenancy end in a week. The parties agreed this was reasonable in principal, because the house is fully furnished and the communication has been good. It also means the tenant will not end the tenancy in rent arrears. The term of this fixed term tenancy is reduced and now ends on 24 April 2025.
Section 66(2) RTA provides that, if the Tribunal reduces the term of the tenancy, it may order the applicant to pay reasonable compensation to the other party for any loss or damage which results from the reduction of the term. Often the Tribunal makes an order that the tenant pay four weeks rent as compensation, which allows the landlord to make plans and advertise. I am not minded to make an order for compensation in this case because the tenant and the landlord talked about his financial struggles at the start of March, and the premises have already been advertised.
I note there is a credit in the tenant’s rent account of $850. This is because the landlord is not longer allowed to charge an up front ‘break lease’ fee. See section 44A RTA. Other orders
The tenant can pay his own filing fee.
I am using my discretion to allow suppression for both parties. This is because there has been no breach of the RTA and any public interest is in the application of the law rather than the names. See section 95A RTA.

Order

An application for suppression has been made in this case, and the Tribunal orders suppression of the name’s and identifying details.
The term of the fixed-term tenancy of [The tenant/s] at [Tenancy address suppressed] is reduced and now ends at 11.59 pm on Thursday 24 April 2025.

Reasons

Both parties attended the hearing.
The tenant signed a fixed term tenancy agreement for one year, from November 2024. The rent is $1700 a week. The tenant owns a business that works in the construction industry. The weekly rent is being paid from the company account. The tenant has filed an application asking that the Tribunal make an order ending the tenancy because of severe financial hardship.
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: • there has been a change in their circumstances • the change was unforeseen • the unforeseen change will result in severe hardship to the applicant if the tenancy is not reduced • 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.

Should this tenancy end?

The tenant’s submission is that his construction company is not getting contracts at the moment. This has significantly impacted on his drawings and the rent he can pay. The tenant stated that the construction industry has changed significantly since November 2024. At the start of the tenancy he was quoting around 20 jobs a month and since January he has been quoting about one job a month. This submission was not challenged by the landlord. I find there has been a change in the tenant’s circumstances and the change was unforeseen.
The weighing of relative hardship is a question of fact to be assessed objectively in each case. The tenant provided me with bank statements showing the company is in overdraft. There is an email from the tenant’s accountant stating the company was so seriously in debt at the end of February that conversations needed to be had about insolvency. He owes money to IRD.
I have not been provided with statements from the tenant’s personal bank accounts. He said his only income is from the company, and I accept all rent has been paid by the company. His partner has also been made redundant. He said his rent is up to date but he is not sure he will have the money to pay any more rent. The tenant is also under a significant stress.
The landlord agreed that the tenant’s financial position is poor. She submitted that the owner will lose rent until a new tenant is found. I was not provided with any financial information, such as bank statements, for the owner. The owner has insurance.
I find the unforeseen change has resulted in hardship. It seems most likely to me the hardship the tenant will suffer if the fixed term is not reduced exceeds the hardship the landlord will suffer if the term is reduced. I find this tenancy should end.
The tenant has asked that the tenancy end in a week. The parties agreed this was reasonable in principal, because the house is fully furnished and the communication has been good. It also means the tenant will not end the tenancy in rent arrears. The term of this fixed term tenancy is reduced and now ends on 24 April 2025.
Section 66(2) RTA provides that, if the Tribunal reduces the term of the tenancy, it may order the applicant to pay reasonable compensation to the other party for any loss or damage which results from the reduction of the term. Often the Tribunal makes an order that the tenant pay four weeks rent as compensation, which allows the landlord to make plans and advertise. I am not minded to make an order for compensation in this case because the tenant and the landlord talked about his financial struggles at the start of March, and the premises have already been advertised.
I note there is a credit in the tenant’s rent account of $850. This is because the landlord is not longer allowed to charge an up front ‘break lease’ fee. See section 44A RTA. Other orders
The tenant can pay his own filing fee.
I am using my discretion to allow suppression for both parties. This is because there has been no breach of the RTA and any public interest is in the application of the law rather than the names. See section 95A RTA.

Tenancy Tribunal case 5222212 — Rent arrears

At a glance

Tenancy Tribunal case 5222212 — Rent arrears

At a glance

Claims & awards

Order

Reasons

Should this tenancy end?

Topics & place

Residential Tenancies Act sections

Key findings

Frequently asked questions

Claims & awards

Order

Reasons

Should this tenancy end?

Topics & place

Residential Tenancies Act sections

Key findings

Frequently asked questions