Published tribunal order
Tenancy Tribunal case 5330804 — Rent arrears
Decided 11 Dec 2025 · Published 11 Dec 2025 · Application 5330804
- 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 Landlord name and identifying details.
- The period of the fixed term tenancy is reduced so that the tenancy ends at
- 59pm on TUESDAY 28 th OCTOBER 2025.
- The Bond Centre is to pay the bond of $2,400.00 ([Bond number suppressed]) to [The landlord/s] immediately.
- Zane Paul Charles Mahu-Hall and Christopher Dean McFarland must pay [The landlord/s] $2,900.00 immediately, calculated as shown in table below.
Reasons
Background
- Mr Mahu-Hall and Mr McFarland entered into a one-year fixed term tenancy commencing on 26 March 2025.
- On 27 July there was an incident between Mr Mahu-Hall and Mr McFarland at the property. The tenants have different perspectives about what happened on that day, but both decided that they could no longer safely continue with the tenancy. They contacted the property manager ([The property manager/s]) and asked about release from the fixed term tenancy.
- [The property manager/s] sent the tenants a form to complete, which would give her permission to begin advertising the tenancy.
- [The property manager/s] did not receive the signed form back until early September.
- [The landlord/s] has advertised the tenancy without success, despite reducing the rent by $100.00.
- The landlord’s application seeks rent arrears.
- The tenants’ application (which was initiated by Mr Mahu-Hall) seeks release from the fixed term tenancy. Mr Mahu-Hall is also seeking refund of his share of the bond.
- The hearing took place on 24 October 2025 in [Event location suppressed]. [The property manager/s] represented the landlord. Mr Mahu-Hall and Mr McFarland attended the hearing by phone with the consent of the Tribunal. Rent arrears
- The landlord’s rent record establishes rent arrears of $3,785.71 to 24 October 2025.
- The tenants divide the rent of $600 per week evenly between them and pay separately to [The landlord/s].
- The rent arrears have accrued because Mr McFarland has not been paying his share of the rent.
- I must make the order for the total amount of arrears against both tenants jointly. However, at the hearing Mr McFarland accepted responsibility for his share of the arrears (which I understand is all but $300 of it) and said that he will pay when he is able to. Mr McFarland has had a period of financial difficulty for reasons that are discussed in more detail below.
- For the reasons set out below, I have made an order that the term of the tenancy is reduced, and the tenancy will end on Tuesday 28 October 2025. I have calculated the amount of rent arrears to the end of the tenancy. Reduction of fixed term tenancy
- The Tenancy Tribunal may make an order reducing the term of a fixed term tenancy if the Tribunal is satisfied that: Because of an unforeseen change in the applicant’s circumstances, the severe hardship which the applicant would suffer if the term of tenancy were not reduced would be greater than the hardship which the other party to the tenancy would suffer if the term were reduced 1
- There are three requirements that must be met within this section: a. The party applying for a reduction of the fixed term tenancy must have suffered an unforeseen change in circumstances; and b. The result of the change is that they would suffer “severe hardship” if they had to remain in the tenancy to the end of the fixed term; and c. That hardship exceeds the hardship that the other party would suffer it the term of the tenancy was reduced.
- There was an incident at the property on 27 July. It began with a heated argument about finances.
- Mr Mahu-Hall said that later in the day he remembered that there was a hatchet in the house. He was disturbed by the earlier argument, and he thought it was to hide the hatchet. He took it from the laundry, but he was then confronted by Mr McFarland. He had the hatchet in his hand, for the purpose of moving it. Mr McFarland shouted out that he was being threatened with the hatchet. Mr McFarland also alleged that in a subsequent police complaint.
- Mr McFarland said that he had left the house to drop off his son to his ex- partner. He returned in time to see Mr Mahu-Hall walking into the laundry and picking up the hatchet. He confronted Mr Mahu-Hall. He was concerned about comments that Mr Mahu-Hall had previously made, threatening violence towards others who had “pissed him off“. He contacted the police.
- Mr Mahu-Hall left the property within a couple of days of this incident, and he has not returned. He is now living in another city. Mr McFarland also left and only returned to remove his belongings and clean the property.
- It seems that this incident happened ‘out of the blue’. There were no previous incidents that went beyond minor disagreements. 1 Section 66(1) Residential Tenancies Act 1986 (“RTA”)
- After this incident there was a fundamental loss of trust. Both men genuinely believed that the other could become violent. Both decided that they could not remain in the property together.
- I accept that this is in the category of an unforeseen change of circumstances. The tenancy was no longer possible.
- I also accept that as a result of this, Mr Mahu-Hall and Mr McFarland would suffer a severe hardship if they were not released from the fixed term tenancy.
- As noted above, Mr Mahu-Hall is living in another city. He is only able to pay his share of the rent on this tenancy with the assistance of friends and family.
- Mr McFarland explained that he suffered a serious health problem about a month later. He has been unable to work. He has applied for a benefit and is seeking to withdraw some of his KiwiSaver. Mr McFarland has been unable to pay his share of the rent.
- I am required to weigh this hardship against the hardship that the landlord will suffer if the term of the tenancy is reduced.
- [The property manager/s] explained that: a. [The landlord/s] advertised the property for rent but it has had no interest, despite reducing the rent by $100 per week. In the current market, the property could sit vacant for some time. b. The owner has several other rental properties but has faced some large repair bills in the last month which has put him under some financial pressure.
- It is somewhat artificial to attempt to weigh hardships and decide which is worse, but this is what the relevant section of the Residential Tenancies Act requires.
- My finding is that the hardship on the tenants of requiring them to remain in the fixed tenancy exceeds the hardship on the landlord of releasing them from it. I have more information about the tenants’ financial situation, in particular Mr McFarland’s situation. Even if the 28 July incident had not happened, Mr McFarland’s health crisis and loss of income in September would be grounds for release from the fixed term tenancy.
- The grounds for reduction of the fixed term tenancy are established. The term of the tenancy is reduced. The last day of the tenancy will be Tuesday 28 October 2025.
- Where the Tribunal makes an order for reduction of the fixed term tenancy, it may also make an order that the applicant pay the other party an amount determined by the Tribunal by way of reasonable compensation for any loss or damage. 2
- This part of the RTA is also difficult to apply. The landlord will obviously suffer losses as a result of ending the fixed term tenancy early. However, the basis of reducing the fixed term tenancy is the financial hardship on the tenants of requiring them to continue paying for a tenancy they can no longer use. They are not in a position to pay the rent, let alone “reasonable compensation” to the landlord.
- However, the Tribunal is required to consider this as one of the steps in section 66 RTA. I am satisfied that the landlord will almost certainly suffer a loss. Reasonable compensation to the landlord could include the costs of finding replacement tenants (if possible) and loss of rent until new tenants are found – however long that may be. “Reasonable” must also take into account the tenants’ situation, which is a weighty consideration in this instance.
- Having regard to those factors I will award compensation to the landlord of $1,000.00. Bond / compensation, filing fee, name suppression
- I have made an order that the tenancy will end on Tuesday next week.
- The amount owed to the landlord exceeds the amount of the bond. The bond will be released to the landlord.
- Again, I acknowledge Mr Mahu-Hall’s argument that he is not personally responsible for the rent arrears. However, there is one single bond for this joint tenancy and the landlord is entitled to receive the bond as part payment of the joint debt.
- Both parties were successful in their applications, and I will award the filing fee to both parties.
- The landlord sought name suppression. Name suppression is granted. 3
- It is noted that: a. Mr Mahu-Hall’s application also raised concerns about communication problems with [The property manager/s]. Mr Mahu-Hall links this, as a “compensation” claim, to his claim for a refund of his share of the bond. This part of Mr Mahu-Hall’s claim, if it is indeed a claim for compensation, cannot succeed. The instances of [The property manager/s] not responding immediately to Mr Mahu-Hall’s requests for information are relatively trivial. 2 Section 66(2) RTA 3 Section 95A(1) RTA There is nothing in the Residential Tenancies Act that requires landlords to communicate to any particular standard. The bond must be released in full to the landlord for the reasons explained above. b. During the hearing [The property manager/s] asked Mr Mahu-Hall whether he would remove a negative Google review that he had posted about [The landlord/s]. Mr Mahu-Hall acknowledged that he wrote the review in a moment of frustration and he agreed to remove it.