Conditional Termination Order Granted for Tenant Repaying Debt
📌 In brief
The Tenancy Tribunal granted a conditional termination order allowing the tenant to repay her debt through direct deductions from her wages. The order was based on the tenant's ability to repay the debt and comply with future obligations under the Residential Tenancies Act 1986.
⚖️ Legal holding
A tenant is entitled to a conditional termination order if they demonstrate the ability to repay their debt and comply with future obligations.
📖 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 complaining must have given the other party at least 10 working days' notice to fix it, and they failed to do so.
This section outlines the types of orders the Tenancy Tribunal can make. These include declaring the status of premises or rights, ordering a party to give 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 allowing the tenant time to repay her debt and set up direct deductions from her wages for future rent and water rates payments.
📜 Headnote Official document
The Tenancy Tribunal granted a conditional termination order allowing the tenant to repay her debt and set up direct deductions from her wages for future rent and water rates payments. The order was based on the tenant's ability to repay the debt and comply with future obligations under the Residential Tenancies Act 1986.
📚 Full judgment Official document
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[2025] NZTT 5156971
TENANCY TRIBUNAL AT REMOTE LOCATION | TE TARAIPIUNARA RETIHANGA
APPLICANT: [redacted] Agents For [NAME]
Landlord
RESPONDENT: [redacted]
Tenant
TENANCY ADDRESS: Unit/[ADDRESS], Te Atatu South, Auckland 0610
ORDER
1. [NAME] owes [COMPANY] As Agents For [NAME] $150.29 (“the debt”), calculated as set out in the table below:
Description Landlord Tenant Water rates: to 31/03/25 $123.29 Filing fee reimbursement $27.00 Total award $150.29 Total payable by Tenant to Landlord $150.29
2. [NAME] must pay rent and the debt as follows:
a. By a weekly payment of $941.72, being $771.43 for rent due on 31 March 2025 (9 days, to adjust rent payments due dates to Monday’s) and $150.29 for repayment of the debt and $20.00 water rates to be paid in advance, as agreed by the tenant.
b. Payments will be $620.00 every week on a Monday, with the first payment due on Monday 7 April 2025. These weekly payments are made up of $600.00 rent and $20.00 towards the tenant’s monthly water bill.
3. If the tenant fails to pay the debt and her first two rent payments (31 March 2025 and 7 April 2025) within 2 working days of these due dates:
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a. The tenancy at Unit/[ADDRESS], Te Atatu South, Auckland 0610 will terminate and the landlord will have immediate possession of the premises.
b. The balance of the debt will be payable immediately.
4. The tenant agrees to request that her employer automatically deduct from her wages $620.00 per week, for her rent and water rates payments, and pay this weekly amount to [COMPANY]’s ANZ Bank account 06 [PHONE] 00 from her wages, on Monday’s commencing on Monday 7 April 2025.
Reasons:
1. Both parties attended the hearing.
2. The landlord has applied for termination of the tenancy, water rates arrears and reimbursement of the filing fee The tenant wants 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 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.
4. The tenant breached their obligations by failing to pay her rent in full and on time and 6failing to pay her water rates as they fall due. On 17 January 2025 the landlord served a 14-day notice on the tenant for failing to pay her water rates in full, but the breach was not remedied within the required period.
5. The landlord says it also issued the tenant with a 14-day notice on 17 January 2025 for rent arrears, but it did not provide this notice to the Tribunal.
6. The tenant explained that her partner left her and her children last year, while she was engaged in full time study. As such, she has struggled to pay her rent and water rates in full and on time. She accepts that, despite her best efforts, she has been unable to fully repay her debts to the landlord. She has provided evidence to the Tribunal that she has completed her degree and has secured full time employment with [NAME], after successfully completing her 90- day trial period. In recognition of her contribution and her work ethic, [NAME] have loaned her the money to fully repay her rent arrears and have agreed in writing to directly deduct her rent payments from her salary to [NAME]
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[COMPANY]. As such, I find it would be inequitable to immediately terminate her tenancy, as requested by the landlord.
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. To allow the landlord certainty that the tenant will not commit any further breaches of her tenant obligations, I have granted a conditional termination. This gives the tenant time to fully repay her debt and set up the direct debt from her wages to cover future rent and water rates payments by the due dates. See section 78(3) Residential Tenancies Act 1986.
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.
Reimbursement of filing fee
9. [COMPANY] As Agents For [NAME] has substantially succeeded with the claim I have reimbursed the filing fee.
[NAME]
25 March 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 demonstrated the ability to repay her debt through her new job.
- The tenant agreed to have her rent deducted directly from her wages.
- The tenant showed evidence of securing stable employment post-study.
❌ Tends to be rejected
- The landlord requested immediate termination without considering the tenant's ability to repay.
- The landlord did not provide evidence that the tenant could not be rehabilitated financially.
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 repay her debt through direct deductions from her wages.
What was the dispute about?
The dispute was about the tenant's failure to pay rent and water rates on time, leading to arrears and a potential termination of the tenancy.
How did the court decide, and why?
The court decided to grant a conditional termination order because the tenant demonstrated the ability to repay her debt and comply with future obligations.
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 ability to repay her debt and comply with future obligations through direct wage deductions.
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 obtain a conditional termination order if they can demonstrate the ability to repay their debt and comply with future obligations.
What evidence or documents mattered?
Evidence of the tenant's ability to repay the debt and comply with future obligations through direct wage deductions mattered.