Conditional Termination Order for Tenant Owing Rent Arrears
📌 In brief
The Tenancy Tribunal granted a conditional termination order for a tenant owing rent arrears, allowing the tenant to maintain their tenancy if they adhere to a repayment plan.
⚖️ Legal holding
A tenant is entitled to a conditional termination order if they demonstrate the ability to pay rent arrears.
📖 What the law says
This rule says that a landlord can ask the Tenancy Tribunal to end a tenancy if the rent is at least 21 days overdue when the application is filed, or if the tenant has caused or threatened significant damage to the property, or has assaulted or threatened the landlord or their family/agent.
This rule states that if a tenancy ends, the Tribunal must issue an order giving possession of the property back to the person who is entitled to it. However, this order cannot be made more than 3 months after the tenancy ended.
Plain-English explanation — does not replace advice from a lawyer.
📖 Technical summary
The Tribunal granted a conditional termination order for a tenant owing rent arrears.
📜 Headnote Official document
The Tribunal granted a conditional termination order for a tenant owing rent arrears, provided the tenant demonstrated the ability to pay the debt within the period specified in the order.
📚 Full judgment Official document
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[2024] NZTT 5018130
TENANCY TRIBUNAL - Remote Location
APPLICANT: [redacted]
Landlord
RESPONDENT: [redacted]
Tenant
TENANCY ADDRESS: Unit/Flat [ADDRESS], [POSTCODE]
ORDER
1. [NAME] owes [COMPANY] $910.00 (“the debt”), being rent arrears to 27 November 2024.
2. [NAME] must pay rent and the debt as follows:
a. By 18 weekly payments of $371.00, being $321.00 for rent and $50.00 for the debt.
b. A final payment of $331.00, being $321.00 for rent and $10.00 for the debt.
c. Payments will be every Thursday, with the first payment on 28/11/2024 and continuing until 03/04/2025.
3. Payments will be allocated in the following order: rent, rent arrears, and the filing fee.
4. If the tenant fails to pay rent and rent arrears within 2 working days of the due dates:
a. The tenancy at Unit/Flat [ADDRESS], [POSTCODE] will terminate and the landlord will have immediate possession of the premises.
b. The balance of the debt will be payable immediately.
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Reasons:
1. Both parties attended the hearing, conducted via teleconference.
2. The landlord has applied for termination of the tenancy, rent arrears and refund of the bond. The tenant wants to repay the debt to avoid immediate termination.
Should a conditional termination order be made?
3. Where rent is at least 21 days in arrears on the date the application was filed, the Tribunal must make either a final or a conditional termination order. See section 55(1)(a) and (1A) Residential Tenancies Act 1986.
4. I am satisfied the tenant will pay the debt within the period specified in the order and is unlikely to commit any further relevant breach. I have granted a conditional termination order. The rent summary shows the repayment pattern as ordered is already established. [NAME] just needs to ensure this is maintained every week from now.
5. The conditional termination order will lapse if it is fully complied with. If the tenant breaches the order, the possession order may be enforced for 90 days from the first breach. See section 64(4)(b) Residential Tenancies Act 1986.
M Brennan
25 November 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 $260. 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 a repayment pattern for the debt, showing they could maintain payments.
- The Tribunal was satisfied the tenant would pay the debt within the specified period.
- The Tribunal believed the tenant was unlikely to commit any further breaches.
- The rent was at least 21 days in arrears when the application was filed, requiring a termination order.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The Tribunal granted a conditional termination order for a tenant owing rent arrears.
What was the dispute about?
The dispute was about whether a tenant owing rent arrears could avoid immediate termination of their tenancy.
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 period specified in the order.
Which laws or rules were applied?
The Residential Tenancies Act 1986, sections 55(1)(a) and 64(4)(b) 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 period specified in the order.
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 may be able to avoid immediate termination of their tenancy if they can demonstrate the ability to pay rent arrears.
What evidence or documents mattered?
The judgment does not specify the evidence or documents that mattered.