Published tribunal order
Tenancy Tribunal case 5282043 — Rent arrears
Decided 2 Sept 2025 · Published 2 Sept 2025 · Application 5282043
- Rent arrears
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 names and identifying details of both parties.
- [The tenant/s] must pay [The landlord/s] $1,582.04 immediately, calculated as shown in table below.
- The Bond Centre is to pay the bond of $3,380.00 ([Bond number suppressed]) to [The landlord/s] immediately.
Reasons
- Both parties attended the hearing on 29 August 2025.
- The tenant applied for reduction of the fixed-term tenancy, and claimed that the premises was not provided in a reasonable state along with the house being non-compliant with Healthy Homes Standards (“HHS”). 5282043, 52828202
- The landlord made a cross-application for rent arrears, compensation for the break lease fee, and refund of the bond. Background
- The parties signed a fixed-term tenancy agreement with the tenancy commencing on 23 May 2025 and ending on 22 May 2026. The agreed rent was $845.00 per week.
- The premises was being renovated leading up to the commencement of the tenancy. The tenant had visited the premises on four occasions before the tenancy began. The tenant had given the landlord a list of work that was required to be done.
- There was some outstanding work still to be done on 23 May 2025. However, most of the remaining work was minor. The only critical issue was the gas bottle not being able to be connected due to not having the Certificate of Verification (“COV”). That was only applied for approved later on 26 May 2025 after the tenant contacted the landlord about the COV being required for connection that day.
- On 25 May 2025, the tenant contacted the landlord seeking for 50% rent reduction for the first two weeks of the tenancy. The tenant highlighted issues including: a. Exposed electrical sockets (kitchen, bathroom, laundry, downstairs room) b. Exposed window requiring immediate boarding c. Bathroom sealing to prevent moisture damage and sink plug repair d. Stair railing (more than four stairs) e. Downstairs flooring replacement due to paint contamination and general disrepair f. Carpets are to be replaced due to significant damage/poor state g. Non-function lights (mater bedroom, staircase) h. Broken and inoperable windows (small upstairs room, living room) i. Exposed oven range hood j. Unlevel pantry shelf k. Front door doorstop installation l. Completion of plaster and paint work, including removal of plaster debris m. Completion of cabinet doors and kitchen projects.
- The tenant never actually moved into the premises. 5282043, 52828203
- Without reaching an agreement with the landlord, on 1 June 2025, the tenant gave notice of termination to the landlord.
- As the tenant never moved in, the landlord went on to find a new tenant and a new tenancy began on 11 July 2025. Reduction of the fixed-term tenancy and rent arrears
- The tenant has effectively applied for a reduction of the fixed-term tenancy.
- 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 had terminated the tenancy unilaterally without waiting for the Tribunal to reduce the fixed-term tenancy. In the tenant’s application, it seemed that that the termination request was based on the premises not being provided in a reasonable state. However, that is not a ground for reduction of the fixed- term tenancy. I do not find that the issues raised by the tenant were fatal issues that could not be remediated by the landlord in a reasonable timeframe.
- Further to that, the landlord has provided documents to prove that the premises was HHS compliant.
- At the hearing, the tenant disclosed that the tenant was made redundant 2 days before the move-in date. The tenant ended up staying with family until they found another rental property. The weekly rental there was $720.00 and they moved in there instead on 3 June 2025.
- Being made redundant is an unforeseen change in the tenant’s circumstances. That is a basis for the tenant to be able to apply for a reduction of the fixed-term tenancy.
- The next question for the Tribunal to consider is whether the tenant would suffer severe hardship if the term of the tenancy were not reduced. The tenant was able to move to a premise where the rent was $125.00 less per week. I do not find the difference of $125.00 per week would come under “severe hardship”.
- The landlord would suffer hardship if the term was reduced as well. The landlord confirmed that he was paying mortgage on the premises and that it was “cashflow negative”. This means that $845.00 per week was not enough to 5282043, 52828204 cover the weekly mortgage and that the landlord had to top up mortgage repayments with his own money.
- In the circumstances, I am unable to find that the tenant’s hardship would be greater than the landlord’s hardship. Therefore, I decline the tenant’s application to reduce the fixed-term tenancy.
- However, as the landlord has gone ahead and found new tenants, the tenant is only liable to pay for rent up to the date of commencement of a new tenancy at the premises.
- As the subsequent tenancy started 11 July 2025, the tenant is liable to pay rent to 10 July 2025. The rent owing is $4,225.00 when calculated from 23 May 2025 to 10 July 2025.
- However, I reduce the rent payable by $482.86 to acknowledge the first 4 days when the gas bottle could not be connected. Although it is the tenant’s responsibility to have the gas connected, it is the landlord’s responsibility to ensure that it was ready and available to be connected.
- The total rent owing by the tenant is $3,742.14. I order the tenant to pay this amount to the landlord.
- Further to this, the landlord incurred $1,192.90 to find a new replacement tenant. The landlord has presented a breakdown of the cost. The cost is real and reasonable. I order the tenant to pay this to the landlord.
- Finally, as the landlord has wholly succeeded with the application, I order the tenant to reimburse the filing fee.
- The bond held at the Bond Centre will be paid to the landlord to offset the amount payable by the tenant.