Conditional Termination Order for Rent Arrears and Water Rates
📌 In brief
The Tenancy Tribunal granted a conditional termination order allowing the tenant to stay in the property if they pay rent arrears and outstanding water rates according to a payment plan. The order includes a lump sum payment and weekly installments over several months. The Tribunal considered the tenant's financial circumstances and their ability to repay the debt.
⚖️ Legal holding
A tenant is entitled to a conditional termination order if they demonstrate the ability to pay outstanding debts within a specified timeframe.
📖 What the law says
This section states that the Tenancy Tribunal must end a tenancy if the rent is at least 21 days overdue when the landlord applies, or if the tenant has caused or threatened significant damage to the property, or has assaulted or threatened to assault the landlord or related individuals.
This section outlines the types of orders the Tenancy Tribunal can make, including declaring rights or obligations, ordering a party to give up possession of a property, or ordering a party to pay money.
Plain-English explanation — does not replace advice from a lawyer.
📖 Technical summary
The Tribunal granted a conditional termination order allowing the tenant to remain in the property if they comply with the payment plan.
📜 Headnote Official document
The Tenancy Tribunal granted a conditional termination order allowing the tenant to remain in the property if they comply with a payment plan for rent arrears and outstanding water rates. The order includes a lump sum payment and weekly installments over several months. The Tribunal considered the tenant's financial circumstances and their ability to repay the debt.
📚 Full judgment Official document
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[2024] NZTT 4908554
TENANCY TRIBUNAL - Video Location
APPLICANT: [redacted] White Youngs As Agent For [COMPANY]
Landlord
RESPONDENT: [redacted]
Tenant
TENANCY ADDRESS: Unit/Flat A, [ADDRESS], [POSTCODE]
ORDER
1. [NAME] owes [COMPANY] T/A Ray White Youngs As Agent For [COMPANY] $12,328.57 (“the debt”) as detailed in the table below.
Description Landlord Tenant Rent arrears to 29 August 2024 $8,890.00 Water rates $3,418.13 Filing fee reimbursement $20.44 Total award $12,328.57 Total payable by Tenant to Landlord $12,328.57
2. [NAME] must pay rent and the debt as follows:
a. By 1 payment of $9,808.00, being $890.00 for rent, $5,500.00 for rent arrears and $3,418.13 for outstanding water rates by Friday, 30 August 2024.
b. By 22 weekly payments of $1,040.00, being $890.00 for rent and $150.00 for rent arrears.
c. A final payment of $1,000.44, being $890.00 for rent, $90.00 for rent arrears and $20.44 for the filing fee.
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d. Payments will be every Friday, with the first payment on 06/09/2024 and continuing until 07/02/2025.
3. If the tenant fails to pay rent, rent arrears and water rates within 2 working days of the due dates:
a. The tenancy at Unit/Flat A, [ADDRESS], [POSTCODE] will terminate and the landlord will have immediate possession of the premises.
b. The balance of the debt will be payable immediately.
4. If the tenant fails to pay the filing fee within 2 working days of the due date, the filing fee will be payable immediately.
Reasons:
1. Both parties attended the hearing.
2. The landlord has applied for termination of the tenancy, rent arrears and outstanding water rates. The tenant wants to repay the debt to avoid immediate termination.
Should a conditional termination order be made?
3. Where a landlord applies to terminate for breach, and rent is at least 21 days in arrears on the hearing date, the Tribunal must make either a final or a conditional termination order. See sections 56(2), 55(1)(a) and 55(1A) Residential Tenancies Act 1986.
4. Rent arrears totalled $7,745.71 (61 days) at the hearing on 21 August 2024.
5. The tenant advised the Tribunal that they previously received a benefit however, approximately two months ago began working in homebased care. There has been a delay of approximately 7 weeks in receiving payment for this work. The tenant expects to receive a lump-sum payment of around $6,000.00 by 30 August 2024. The tenant does not expect there to be any issues receiving payment moving forward.
6. The tenant also advised the Tribunal that they have approach Work and Income New Zealand (WINZ) who have advised that they will assist the tenant to repay the outstanding water rates invoices in full. The tenant has an appointment with WINZ tomorrow, 22 August 2024 to organise this.
7. I am satisfied the tenant will pay the debt within the period specified in the order and is unlikely to commit any further breach. I have granted a conditional termination. See section 78(3) Residential Tenancies Act 1986.
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8. The conditional termination order will lapse if it is fully complied with. 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.
Rent arrears and water rates
9. At the date of the hearing on 21 August 2024, rent arrears totalled $7,745.71. The most recent rental payment was due on 16 August 2024 to cover the period from 16/08/2024 – 22/08/2024. The tenant advised the Tribunal that this payment of rent had not and would not be paid until Friday, 30 August 2024. The next payment of rent is due on 23 August 2024 and covers the period from 23/08/2024 – 29/08/2024. The tenant advised the Tribunal that this payment of rent would not be paid until Friday, 30 August 2024 either. Therefore, for the purpose of this conditional termination order, the Tribunal has calculated the total rent arrears owed up to 29 August 2024 with the consent of the parties.
10. The landlord provided rent records which prove the amount owing.
11. The landlord provided invoices from the relevant water rates authority, which prove the amount owing.
12. [COMPANY] T/A Ray White Youngs As Agent For [COMPANY] has wholly succeeded with the claim I must reimburse the filing fee.
L Ryken
21 August 2024
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Please read carefully: Visit justice.govt.nz/tribunals/tenancy/rehearings-appeals for more information on rehearings and appeals.
Rehearings You can apply for a rehearing if you believe that a substantial wrong or miscarriage of justice has happened. For example: • you did not get the letter telling you the date of the hearing, or • the adjudicator improperly admitted or rejected evidence, or • new evidence, relating to the original application, has become available.
You must give reasons and evidence to support your application for a rehearing. A rehearing will not be granted just because you disagree with the decision. You must apply within five working days of the decision using the Application for Rehearing form: justice.govt.nz/assets/Documents/Forms/TT-Application-for-rehearing.pdf
Right of Appeal Both the landlord and the tenant can file an appeal. You should file your appeal at the District Court where the original hearing took place. The cost for an appeal is $200. You must apply within 10 working days after the decision is issued using this Appeal to the District Court form: justice.govt.nz/tribunals/tenancy/rehearings-appeals
Grounds for an appeal You can appeal if you think the decision was wrong, but not because you don’t like the decision. For some cases, there’ll be no right to appeal. For example, you can’t appeal: • against an interim order • a final order for the payment of less than $1000 • a final order to undertake work worth less than $1000.
Enforcement Where the Tribunal made an order about money or property this is called a civil debt. The Ministry of Justice Collections Team can assist with enforcing civil debt. You can contact the collections team on [PHONE] or go to justice.govt.nz/fines/civil-debt for forms and information.
Notice to a party ordered to pay money or vacate premises, etc. Failure to comply with any order may result in substantial additional costs for enforcement. It may also involve being ordered to appear in the District Court for an examination of your means or seizure of your property.
If you require further help or information regarding this matter, visit tenancy.govt.nz/disputes/enforcing- decisions or phone Tenancy Services on [PHONE].
Mēna ka hiahia koe ki ētahi atu awhina, kōrero ranei mo tēnei take, haere ki tenei ipurangi tenancy.govt.nz/disputes/enforcing-decisions, waea atu ki Ratonga Takirua ma runga [PHONE] ranei.
https://www.justice.govt.nz/tribunals/tenancy/rehearings-appeals https://www.justice.govt.nz/assets/Documents/Forms/TT-Application-for-rehearing.pdf https://www.justice.govt.nz/tribunals/tenancy/rehearings-appeals/ https://www.justice.govt.nz/fines/about-civil-debt/ https://www.tenancy.govt.nz/disputes/enforcing-decisions https://www.tenancy.govt.nz/disputes/enforcing-decisions http://www.tenancy.govt.nz/disputes/enforcing-decisions/
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A manaomia nisi faamatalaga poo se fesoasoani, e uiga i lau mataupu, asiasi ifo le matou aupega tafailagi: tenancy.govt.nz/disputes/enforcing-decisions, pe fesootai mai le Tenancy Services i le numera [PHONE].
Reasons:
⚖️ What tends to weigh in cases like this
✅ Tends to be accepted
- The tenant demonstrated the ability to pay the outstanding debts within a specified timeframe.
- The tenant showed they would receive a lump-sum payment of around $6,000.00 by 30 August 2024.
- The tenant arranged assistance from Work and Income New Zealand to repay the outstanding water rates.
❌ Tends to be rejected
- The tenant's failure to pay rent and water rates within the specified timeframe was acknowledged but mitigated by their plans to repay the debt.
- The landlord's request for immediate termination was denied in favor of a conditional termination order based on the tenant's repayment plan.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The Tenancy Tribunal granted a conditional termination order allowing the tenant to stay in the property if they pay rent arrears and outstanding water rates according to a payment plan.
What was the dispute about?
The dispute was about whether the tenant could remain in the property while paying off rent arrears and outstanding water rates.
How did the court decide, and why?
The court decided to grant a conditional termination order because the tenant demonstrated the ability to pay the debt within the specified timeframe.
Which laws or rules were applied?
The Residential Tenancies Act 1986, sections 54, 55(1)(a), 55(1A), 56(2), and 78(3) were applied.
What was the argument that mattered most?
The argument that mattered most was the tenant's ability to pay the debt within the specified timeframe.
Was the decision for or against the person who brought the case?
The decision was for the tenant who brought the case.
What does this mean for someone in a similar situation?
Someone in a similar situation might be able to negotiate a payment plan to avoid immediate eviction if they can show the ability to pay the debt.
What evidence or documents mattered?
Evidence included rent records and water rates invoices proving the amounts owed.