Conditional Termination Order Issued Under Section 55(1)(aa)

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[2025] NZTT 5137468

TENANCY TRIBUNAL AT REMOTE LOCATION | TE TARAIPIUNARA RETIHANGA

APPLICANT: [redacted]

Landlord

RESPONDENT: [redacted]

Tenant

TENANCY ADDRESS: [ADDRESS], [POSTCODE]

ORDER

1. [NAME] owes [COMPANY] [NAME] $1,890.48 (“the debt”), calculated as shown in the table below:

Description Landlord Tenant

Rent arrears to 28 February 2025 $1,600.00 Water rates $263.48 Filing fee reimbursement $27.00 Total award $1,890.48 Total payable by Tenant to Landlord $1,890.48

2. [NAME] must pay the debt in order 1 by a lump sum payment of $1,890.48 by 5pm on Monday 31 March 2025.

3. Payments will be allocated in the following order: rent, rent arrears, water rates and the filing fee.

4. If the tenant fails to pay rent and rent arrears 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.

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b. The balance of the debt will be payable immediately.

5. If the tenant fails to pay the filing fee within 2 working days of the due date, the unpaid water rates and filing fee will be payable immediately.

Reasons:

1. The landlord attended the hearing which was held by teleconference on 26 February 2025. The Tribunal was unable to contact the tenant on the contact number provided. I was satisfied that adequate service of the hearing notice had been completed and deemed it reasonable to proceed in the landlord’s absence.

2. The landlord has applied for termination of the tenancy on multiple grounds pursuant to the Residential Tenancies Act 1986 (RTA).

3. The matter was briefly adjourned to enable the landlord to file an updated rent summary, which was subsequently provided on 28 February 2025.

4. I acknowledge there has been a delay in issuing this decision due to a bereavement. I apologise for the delay and for any inconvenience this may have caused the parties.

Should the tenancy be terminated?

First ground relied on – Rent 21 days in arrears at time of filing

5. The first ground relied upon is section 55(1)(a) of the RTA, which mandates that the Tribunal shall order termination of the tenancy if rent is at least 21 days in arrears at the time the application is filed. The provision is mandatory in nature once the factual threshold is met.

6. The landlord initially claimed that, as at 17 January 2025 (the date of filing), the tenant was $3,200 in arrears. If correct, this would have entitled the landlord to immediate termination under section 55(1)(a). However, the updated rent summary filed on 28 February 2025 shows that the tenant made a payment of $4,000 on 17 January 2025, which not only cleared the arrears but placed the rent account in credit by $800. This payment was made on the date the application was submitted, meaning the threshold under section 55(1)(a) was not met. The application for termination on this ground must therefore fail.

Second ground relied on – Failure to remedy breach after notice

7. The second ground for termination is based on section 56(1) of the RTA, which provides that the Tribunal may terminate a tenancy if a tenant has breached the

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agreement in a way that is capable of remedy, the landlord has served a valid 14-day notice, and the tenant has failed to comply. If the breach is remedied within the period specified in the notice, termination is not justified.

8. It is clear the tenant has breached their obligation to pay rent as it falls due, which is a fundamental term of the tenancy under section 40(1)(a) RTA. The landlord issued a 14-day notice on 13 December 2024 requiring the tenant to bring the rent up to date.

9. The rent summary shows that the tenant did in fact pay the outstanding amount within the 14-day notice period — that is, by 27 December 2024. Since the breach was remedied, the statutory criteria for termination under section 56 have not been satisfied. The landlord’s claim for termination on this ground is therefore not upheld.

Third ground relied on – Three notices of rent arrears within 90 days

10. The landlord also relies on section 55(1)(aa) of the RTA. This provision allows the Tribunal to terminate a tenancy where a tenant has been at least five working days in rent arrears on three separate occasions within a 90-day period and where certain procedural requirements are satisfied. This provision reflects Parliament’s intention to provide landlords with a firm but fair mechanism for responding to persistent patterns of rent non-payment, even where each instance is later remedied.

11. To succeed under this provision, the landlord must establish:

(a) That on three separate occasions within 90 days the tenant was at least five working days in arrears;

(b) That the landlord gave the tenant written notice on each occasion, identifying the overdue rent, relevant dates, amount owing, and the tenant’s right to challenge the notice;

(c) That each notice referenced how many previous notices had been given under the same provision; and

(d) That the application to the Tribunal was made within 28 days of the third notice.

12. I find the landlord has met all the statutory requirements. The rent summary confirms that the tenant was at least five working days in arrears on three occasions within a 90-day period. Notices were issued on 14 October 2024, 13 December 2024, and 7 January 2025. Each notice appears to comply with the content requirements of section 55(1)(aa), and the Tribunal application was filed within 28 days of the third notice.

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13. This ground has been clearly established.

Accordingly, the landlord is entitled to a termination order under section 55(1)(aa). However, recognising the tenant’s partial efforts to manage arrears and the landlord’s stated wish, I have issued a conditional termination order under section 78(3) of the RTA. This provides the tenant with a final opportunity to maintain the tenancy, subject to strict compliance.

14. If the tenant fully complies with the conditions, the termination order will lapse. However, if there is a further breach of the order, the possession order will become enforceable and may be actioned within 90 days from the date of the first breach, pursuant to section 64(4)(b) of the RTA.

Observations and Warnings to Tenant

15. I note the rent arrears have been a recurring issue since the outset of the tenancy. Rather than making consistent weekly payments of $800 as required by the tenancy agreement, the tenant has instead opted to make irregular lump sum payments. This pattern has resulted in uncertainty for the landlord and ongoing rent arrears. The tenant is reminded that rent must be paid in advance and on time, in accordance with the agreed payment schedule. It is the tenant’s responsibility to establish a workable plan to ensure full and timely payments moving forward.

16. The Tribunal issues a clear warning to the tenant: persistent rent arrears, even if later remedied, place the tenancy at serious risk. The time and cost incurred by the landlord in responding to ongoing arrears are substantial. Should the tenant breach the terms of this conditional order, or fall into further arrears, any future application by the landlord may result in immediate termination with no option for relief.

Other Claims and Orders

17. The landlord has provided rent records and [NAME] invoices which confirm the amounts owing at the relevant times and support the claims as presented.

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Filing fee

18. As the landlord has wholly succeeded in establishing the ground for termination under section 55(1)(aa), the filing fee is to be reimbursed by the tenant pursuant to section 102(2) of the RTA.

[NAME]

24 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: