What was Tenancy Tribunal case 5345485 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 5345485?

Property Damage: $300.00 awarded to tenant; Filing Fee: $28.00 awarded to tenant

What type of tenancy dispute was case 5345485?

The primary dispute was Exemplary damages.

Where can I read the official tribunal order for case 5345485?

The official Ministry of Justice published order is available at https://forms.justice.govt.nz/search/Documents/TTV2/PDF/12756704-Tribunal_Order_Redacted.pdf.

What was Tenancy Tribunal case 5345485 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 5345485?

Property Damage: $300.00 awarded to tenant; Filing Fee: $28.00 awarded to tenant

What type of tenancy dispute was case 5345485?

The primary dispute was Exemplary damages.

Where can I read the official tribunal order for case 5345485?

The official Ministry of Justice published order is available at https://forms.justice.govt.nz/search/Documents/TTV2/PDF/12756704-Tribunal_Order_Redacted.pdf.

New Zealand Tenancy Tribunal Case 5345485 — Exemplary damages

Claims and awards in Tenancy Tribunal application 5345485 — net $328.00 NZD. Amounts reconciled from the published order (claims sum and net total). Verify on MoJ.
Claim	Tenant	Reason
Exemplary damages	$300.00	Exemplary damages
Filing fee reimbursement	$28.00	Filing fee reimbursement
Net award	$328.00
Total payable by Landlord to Tenant	$328.00

Order

An application for suppression has been made in this case, and the Tribunal orders suppression of the tenants’ names and identifying details.
If the tenants have paid the invoice for the variation of the tenancy agreement then the landlord must reimburse the money paid.
Shelter Realty Limited As Agent For Junhua Zhong must pay [The tenant/s] $328.00 immediately, calculated as shown in table below:

Reasons

Both parties attended the hearing.
The tenants claim the landlord has requested key money because the landlord charged for the time involved to vary the tenancy agreement.
Tenant A requested that the tenancy agreement be varied to remove tenant B, who had moved out. Tenant A asked that her partner C could be added to the tenancy agreement as a tenant. The landlord warned there would be a fee charged for adding C as a tenant. A and C agreed and the landlord did the work. This invoice was sent to the tenants:
Section 17(1) of the Residential Tenancies Act 1986 (RTA) states that a landlord cannot, without the Tribunal’s consent, require a tenant to pay any money other than rent or bond for the grant, renewal, variation or assignment of a tenancy agreement. Breaching this obligation is an unlawful act, for which the Tribunal may award exemplary damages up to a maximum of $1,500. See section 17(3) and Schedule 1A RTA.
Key money means any sum of money demanded by way of fine, premium, foregift, reimbursement of expenses, administration charges, or otherwise as consideration for the grant, continuance, extension, variation, or renewal of a tenancy agreement, or for consent to the surrender or disposition of the tenant’s interest under a tenancy agreement or to a subletting by the tenant; but does not include any sum payable or paid by way of rent or bond.
The landlord said there was in fact an assignment of the tenancy. The landlord and the owner had to be satisfied the new tenant was worthy and could meet his obligations under the tenancy. This is why a credit check and reference checking were carried out. She said the landlord is entitled to recover the reasonable expenses incurred in respect of arranging an assignment, as set out in section 44A RTA. She has provided an itemised invoice and wants the tenants to pay for her work.
I have read the messages exchanged between the parties. There is no mention of an assignment. An assignment happens when the whole tenancy is transferred to other tenants. All the obligations end when there is an assignment. Swapping tenants during a tenancy is different because the whole tenancy is not transferred, there is simply a change of personnel. In fact, the only paperwork required when B left was a variation of tenancy under section 13B RTA and a change of tenant form for the Bond Centre if the bond details had changed.
The landlord made strong submissions at the hearing about the requirement to credit and reference check C before he could be added to the tenancy agreement and that the landlord should not have to pay the cost of this. I find this was an unnecessary process. The tenancy was continuing with A and A had already been credit and reference checked. In any event, credit and reference checking does not change the process into an assignment.
I find there was not an assignment of the tenancy because A remained living in the house. Adding C was a variation of the tenancy and had to be recorded because of the requirements of section 13B RTA. The definition of key money includes a variation of a tenancy, which means the landlord is not allowed to charge a fee. I find the landlord asked the tenants to pay key money, which is an unlawful act.
Where a party has committed an unlawful act intentionally, the Tribunal may award exemplary damages where it is satisfied it would be just to do so, having regard to the party’s intent, the effect of the unlawful act; the interests of the other party; and the public interest. See section 109(3) RTA.
The landlord was clear right from the start, even when a variation was being discussed, that there would be a charge. I find the landlord acted intentionally and, being a property manager, should have known the law. There has been little effect on the tenants because they have always refused to pay the charges. They have had to file an application and attend a hearing. It is in tenants interests that landlords do not charge unnecessary administration fees during the tenancy. There is public interest that landlords pay a penalty to encourage conversations, training and compliance.
I allow $300 is exemplary damages because of the limited effect for tenants A and C. Other orders
Because the tenants have wholly succeeded with the claim I must reimburse the filing fee.
The tenants have asked for suppression and this is allowed because they are the most successful party. The landlord’s name will be published because there is public interest in key money and in names when landlords have to pay exemplary damages. See section 95A RTA.
At the hearing I told the tenants to wait for my order before paying the invoice. If they have already paid then the landlord will have to reimburse them.

Claims and awards in Tenancy Tribunal application 5345485 — net $328.00 NZD. Amounts reconciled from the published order (claims sum and net total). Verify on MoJ.
Claim	Tenant	Reason
Exemplary damages	$300.00	Exemplary damages
Filing fee reimbursement	$28.00	Filing fee reimbursement
Net award	$328.00
Total payable by Landlord to Tenant	$328.00

Order

An application for suppression has been made in this case, and the Tribunal orders suppression of the tenants’ names and identifying details.
If the tenants have paid the invoice for the variation of the tenancy agreement then the landlord must reimburse the money paid.
Shelter Realty Limited As Agent For Junhua Zhong must pay [The tenant/s] $328.00 immediately, calculated as shown in table below:

Reasons

Both parties attended the hearing.
The tenants claim the landlord has requested key money because the landlord charged for the time involved to vary the tenancy agreement.
Tenant A requested that the tenancy agreement be varied to remove tenant B, who had moved out. Tenant A asked that her partner C could be added to the tenancy agreement as a tenant. The landlord warned there would be a fee charged for adding C as a tenant. A and C agreed and the landlord did the work. This invoice was sent to the tenants:
Section 17(1) of the Residential Tenancies Act 1986 (RTA) states that a landlord cannot, without the Tribunal’s consent, require a tenant to pay any money other than rent or bond for the grant, renewal, variation or assignment of a tenancy agreement. Breaching this obligation is an unlawful act, for which the Tribunal may award exemplary damages up to a maximum of $1,500. See section 17(3) and Schedule 1A RTA.
Key money means any sum of money demanded by way of fine, premium, foregift, reimbursement of expenses, administration charges, or otherwise as consideration for the grant, continuance, extension, variation, or renewal of a tenancy agreement, or for consent to the surrender or disposition of the tenant’s interest under a tenancy agreement or to a subletting by the tenant; but does not include any sum payable or paid by way of rent or bond.
The landlord said there was in fact an assignment of the tenancy. The landlord and the owner had to be satisfied the new tenant was worthy and could meet his obligations under the tenancy. This is why a credit check and reference checking were carried out. She said the landlord is entitled to recover the reasonable expenses incurred in respect of arranging an assignment, as set out in section 44A RTA. She has provided an itemised invoice and wants the tenants to pay for her work.
I have read the messages exchanged between the parties. There is no mention of an assignment. An assignment happens when the whole tenancy is transferred to other tenants. All the obligations end when there is an assignment. Swapping tenants during a tenancy is different because the whole tenancy is not transferred, there is simply a change of personnel. In fact, the only paperwork required when B left was a variation of tenancy under section 13B RTA and a change of tenant form for the Bond Centre if the bond details had changed.
The landlord made strong submissions at the hearing about the requirement to credit and reference check C before he could be added to the tenancy agreement and that the landlord should not have to pay the cost of this. I find this was an unnecessary process. The tenancy was continuing with A and A had already been credit and reference checked. In any event, credit and reference checking does not change the process into an assignment.
I find there was not an assignment of the tenancy because A remained living in the house. Adding C was a variation of the tenancy and had to be recorded because of the requirements of section 13B RTA. The definition of key money includes a variation of a tenancy, which means the landlord is not allowed to charge a fee. I find the landlord asked the tenants to pay key money, which is an unlawful act.
Where a party has committed an unlawful act intentionally, the Tribunal may award exemplary damages where it is satisfied it would be just to do so, having regard to the party’s intent, the effect of the unlawful act; the interests of the other party; and the public interest. See section 109(3) RTA.
The landlord was clear right from the start, even when a variation was being discussed, that there would be a charge. I find the landlord acted intentionally and, being a property manager, should have known the law. There has been little effect on the tenants because they have always refused to pay the charges. They have had to file an application and attend a hearing. It is in tenants interests that landlords do not charge unnecessary administration fees during the tenancy. There is public interest that landlords pay a penalty to encourage conversations, training and compliance.
I allow $300 is exemplary damages because of the limited effect for tenants A and C. Other orders
Because the tenants have wholly succeeded with the claim I must reimburse the filing fee.
The tenants have asked for suppression and this is allowed because they are the most successful party. The landlord’s name will be published because there is public interest in key money and in names when landlords have to pay exemplary damages. See section 95A RTA.
At the hearing I told the tenants to wait for my order before paying the invoice. If they have already paid then the landlord will have to reimburse them.

Tenancy Tribunal case 5345485 — Exemplary damages

At a glance

Award balance

Tenancy Tribunal case 5345485 — Exemplary damages

At a glance

Award balance

Claims & awards

Order

Reasons

Topics & place

Residential Tenancies Act sections

Key findings

Frequently asked questions

Claims & awards

Order

Reasons

Topics & place

Residential Tenancies Act sections

Key findings

Frequently asked questions