Conditional Termination Order Granted for Rent Arrears
📌 In brief
The Tenancy Tribunal granted a conditional termination order for a tenant owing rent arrears and a filing fee, giving the tenant two weeks to repay the debt or face immediate termination.
⚖️ Legal holding
A tenant is entitled to a conditional termination order if they provide evidence of a potential lump sum payment to clear debts.
📖 What the law says
This section allows the Tenancy Tribunal to end a tenancy if one party has broken the tenancy agreement or the Act. If the problem can be fixed, the party who complained must have given the other party at least 10 working days' notice to fix it, and the other party failed to do so.
This section outlines the types of orders the Tenancy Tribunal can make. These include declaring rights or obligations, ordering a party to give up possession of premises, 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 for a tenant owing rent arrears and a filing fee.
📜 Headnote Official document
The Tenancy Tribunal granted a conditional termination order for a tenant owing rent arrears and a filing fee, giving the tenant two weeks to repay the debt or face immediate termination.
📚 Full judgment Official document
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[2025] NZTT 5131552
TENANCY TRIBUNAL AT REMOTE LOCATION | TE TARAIPIUNARA RETIHANGA
APPLICANT: [redacted]
Landlord
RESPONDENT: [redacted]
Tenant
TENANCY ADDRESS: [ADDRESS], [POSTCODE]
ORDER
1. [NAME] owes [COMPANY] $2,353.43 (“the debt”) as set out in the table:
Description Landlord Tenant Rent arrears to 1 April 2025 $1,356.43 Rent owed 2 - 15 April 2025 $970.00 Filing fee reimbursement $27.00 Total award $2,353.43 Total payable by Tenant to Landlord $2,353.43
2. [NAME] has until Tuesday 15 April 2025 to pay the debt in full.
3. Any payments made between now and 15 April 2025 will be allocated in the following order: current rent, rent arrears, and the filing fee.
4. If the tenant fails to pay the debt, not including the filing fee, within 2 working days of the due date:
a. The tenancy at [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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5. 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. The landlord attended the hearing. The tenant was properly notified but she did not answer the calls made to her phone.
2. The landlord has applied for termination of the tenancy, rent arrears and refund of the bond. The tenant is 20 days in arrears and also owes water rates. The landlord wants to give the tenant two weeks to repay the debt to avoid immediate termination.
Should a conditional termination order be made?
3. The Tribunal may terminate a tenancy for breach where, due to the nature or extent of the breach, it would be inequitable – very unfair - to refuse to terminate.
4. 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 (RTA).
5. The tenant breached her obligations by not paying rent on time and not paying rent a week in advance. On 11 December 2024 the landlord served a 14-day notice on the tenant but the breach was not remedied within the required period.
6. In Vincent Dean Huff v City Central Property Management [2020] NZDC 19229, the District Court considered s 56(1)(c) RTA and set out a range of factors relevant to whether it would be “inequitable to refuse” to terminate the tenancy:
• The history of the tenancy.
• Whether there had been a persistent failure after repeated warnings.
• Whether the history of breaches is such that it is unlikely the tenant would comply with their obligations in the future.
• Whether the breach was inadvertent or deliberately committed.
• The conduct of the landlord.
• The gravity of the breach.
• Whether termination is a proportionate response to the breach.
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7. The tenancy started in 2019. The tenant was in credit for most of the tenancy. However, she has been behind in the rent since May 2024. After the 14 day notice was served the tenant missed another two weeks of rent and has not remedied the breach. She is currently 20 days behind. She also owes around $700 in water rates arrears, although that is not part of the application today.
8. It seems most likely to me there has been a persistent failure to pay rent on time over the past 11 months. The tenant did not take part in the hearing, so I do not know if there has been a genuine reason for the arrears.
9. It seems from the application that the landlord has acted appropriately in managing the breach, by chasing the tenant, serving a 14 day notice, and filing an application. The landlord submitted that ending the tenancy would be a proportionate response because they have tried every other means of managing the rent arrears. I find it would be inequitable to refuse to terminate the tenancy.
10. Despite my finding that it would be inequitable to refuse to terminate the tenancy, I have heard evidence that the tenant has one option left for getting a lump sum of money, and she may be able to pay all the money owed by 15 April 2025. The landlord has asked that the tenancy terminate in two weeks time if the tenant cannot pay the money owed by then. I am persuaded by this submission and I have granted a conditional termination. See section 78(3) RTA.
11. 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) RTA.
12. Because the landlord has substantially succeeded with the claim I have reimbursed the filing fee.
[NAME]
01 April 2025
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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 owed the landlord $2,353.43, including rent arrears and a filing fee.
- The tenant failed to pay rent on time and did not remedy the breach after receiving a 14-day notice.
- The landlord acted appropriately by chasing the tenant, serving a 14-day notice, and filing an application.
- It would be unfair to refuse to end the tenancy due to the tenant's persistent failure to pay rent over 11 months.
- The tenant might be able to pay all the money owed by a specific date if given a conditional termination.
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 for a tenant owing rent arrears and a filing fee, giving the tenant two weeks to repay the debt or face immediate termination.
What was the dispute about?
The dispute was about a tenant owing rent arrears and a filing fee, with the landlord seeking immediate termination of the tenancy.
How did the court decide, and why?
The court decided to grant a conditional termination order, giving the tenant two weeks to repay the debt, considering the tenant's potential to obtain a lump sum payment.
Which laws or rules were applied?
The Residential Tenancies Act 1986, sections 56(1) and 78(3), were applied.
What was the argument that mattered most?
The argument that mattered most was the tenant's potential to obtain a lump sum payment to clear the debt.
Was the decision for or against the person who brought the case?
The decision was partially for the landlord, granting a conditional termination order but giving the tenant two weeks to repay the debt.
What does this mean for someone in a similar situation?
For someone in a similar situation, obtaining a lump sum payment to clear rent arrears could lead to a conditional termination order, giving them time to repay the debt.
What evidence or documents mattered?
The evidence that mattered was the tenant's potential to obtain a lump sum payment to clear the debt.