Published tribunal order
Tenancy Tribunal case 5421425 — Rent arrears at 208 Waimea Road, Bishopdale, Nelson 7011
Decided 19 Mar 2026 · Published 19 Mar 2026 · Application 5421425
- Rent arrears
- 14-day notice
Order
- [The tenant/s] owes Kāinga Ora–Homes And Communities $1,854.00 (“the debt”), being rent arrears to Tuesday 24 March 2026.
- [The tenant/s] must pay rent and the debt as follows: a. By a weekly payment of current rent of $226.00 on Wednesday 25 March 2026, and thereafter; b. By weekly payments of $248.00, being $226.00 for current rent and $22.00 for the debt. Payments will be every Wednesday, with the first payment on Wednesday 1 April 2026 and continuing until the rent is paid. Any future change in current rent will alter the current rent amount due after the effective date to reflect this.
- Payments will be allocated in the following order: rent and then rent arrears.
- If the tenant fails to pay rent and rent arrears within 5 working days of the due dates: a. The tenancy at 208 Waimea Road, Bishopdale, Nelson 7011 will terminate and the landlord will have immediate possession of the premises. b. The balance of the debt will be payable immediately.
Reasons
- The landlord attended the hearing, with Mr Hanniman representing. There was no appearance by the tenant, nor any communication with the Registry regarding any problems. Commencement was delayed by 10 minutes in case of a delay for Ms Harmer. In the absence of the tenant, the hearing was conducted.
- The landlord has applied for termination of the tenancy, rent arrears and refund of the bond. The landlord wants to provide a chance for the tenant to repay the debt to avoid termination.
- The tenant made a recent written submission and this was available to be considered at the hearing. The tenancy rent is subject to MSD reassessment and setting. In her submission, the tenant suggests it is for the landlord and MSD to manage rent changes and that the rent stays at the previous level until resolved. I expand below on the subject and to explain why, in my view, the stance of the tenant is without any statutory basis. Income related rent
- Income Related Rent (IRR) is set by Ministry of Social Development (MSD).
- The setting of IRR by MSD is done pursuant to the Public and Community Housing Management Act 1992. Any appeal or review of the IRR set by MSD is done based on that Act, not the Residential Tenancies Act 1986 which the Tribunal applies. Sections 132 -135 set out the appeal process for anyone who disagrees with a decision made under Part 9 of the Public and Community Housing Management Act 1992. Part 9 sets out the process for assessing housing eligibility, assessable income and IRR.
- There is reference to the Residential Tenancies Act 1986 in section 132 which states – Nothing in this section and sections 133 to 135, or in any regulations made under section 136, limits or affects the rights of any tenant of social housing, or of any social housing provider as landlord, under the Residential Tenancies Act 1986.
- While this section preserves the rights of landlords and tenants under the Act, it does not mean that the Tenancy Tribunal has the jurisdiction to make orders against MSD. Section 77 of the Act, which sets out the jurisdiction of the Tribunal, does not include decisions made by MSD or about IRR.
- Therefore, the Tribunal cannot consider any argument that the IRR was incorrectly set and the rent as due ordered otherwise.
- The landlord produced an update rent summary at the hearing. This reflected a decrease in the Income Related Rent as set by MSD. This was expected by Ms Harmer but there is still a difference between rent due and rent paid. From the submission, further changes via MSD may be pending. If so, or if already effective, the rent arrears in this order may require adjustment by the landlord to reflect the correct debt.
Should a conditional termination order be made?
- The Tribunal may terminate a tenancy for breach where, due to the nature or extent of the breach, it would be inequitable to refuse to terminate. Where the breach is capable of remedy the landlord must first serve a notice on the tenant requiring them to remedy the breach within at least 14 days, and establish that the tenant has failed to do so. See section 56(1) Residential Tenancies Act 1986.
- The tenant breached their obligations by failing to pay rent arrears. On 5 December 2025 the landlord served a 14-day notice on the tenant but the breach was not remedied within the required period. It would be inequitable to refuse to terminate the tenancy.
- Despite my finding that it would be inequitable to refuse to terminate the tenancy, having heard the evidence I am satisfied the tenant will pay the debt within the period specified in the order and is unlikely to commit any further breach. IRR can be a confusing process to navigate. I have granted a conditional termination. See section 78(3) Residential Tenancies Act 1986.
- The conditional termination order will lapse if it is fully complied with. The debt can be paid sooner as possible. If the tenant breaches the order, the possession order is enforceable for 90 days from the first breach. See section 64(4)(b) Residential Tenancies Act 1986.