Fixed-Term Tenancy Reduced Due to Severe Hardship

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[2025] NZTT 5129228

TENANCY TRIBUNAL - Video Location

APPLICANT: [redacted]

Tenant

RESPONDENT: [redacted]

Landlord

TENANCY ADDRESS: [ADDRESS], [POSTCODE]

ORDER

1. The term of the fixed-term tenancy of [NAME] and [NAME] at [ADDRESS], [POSTCODE] is reduced and the termination date is deemed to be 11:59pm, 12 January 2025.

2. [NAME] and [NAME] must pay [COMPANY] As Agent For [NAME] $1,189.00 from the bond, calculated as shown in the table below.

Description Landlord Tenant Compensation: loss of rental $770.00 Compensation: break lease fee $446.00 Filing fee reimbursement $27.00 Total award $1,216.00 $27.00 Net award $1,189.00 Bond $1,189.00 $1,891.00

3. The Bond Centre is to pay the bond of $3,080.00 (3328409-010) immediately apportioned as follows:

[COMPANY] As $1,189.00

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Agent For [NAME]:

[NAME] and [NAME]: $1,891.00

Reasons:

1. The landlord attended the hearing on 13 February 2025. [NAME] attended the hearing for the tenant. [NAME] did not attend.

2. The tenancy began on 25 November 2024 and was a fixed-term tenancy to 24 November 2025.

3. The tenant has applied to reduce the fixed-term tenancy.

4. By the date of the hearing on 13 February 2025, the tenancy had ended. A new tenancy with new tenants commenced on 21 January 2025.

5. The tenant claims the fixed-term should be reduced to a date before the new tenancy began. The landlord disputes this and claims the tenant should pay rent up to the date of the new tenancy.

6. As the applicant, the tenant must prove their claim to the civil law standard of proof, on the balance of probabilities.

Should there be a reduction to the fixed-term tenancy?

7. The Tribunal may reduce a fixed term tenancy where:

a. there has been an unforeseen change in the applicant’s circumstances; and

b. there would be severe hardship to the applicant if the term is not reduced; and

c. the applicant’s hardship would be greater than the hardship to the other party if the term is reduced. See section 66(1) Residential Tenancies Act 1986.

8. I find that there has been an unforeseen change in the tenant's circumstances. [NAME] gave evidence that he and [NAME] are university students. University accommodation is expensive and therefore, they decided to rent a house to share the expenses.

9. The tenancy agreement was signed by [NAME] and [NAME] on 8 November 2024. The start date for the tenancy was 25 November 2024.

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10. [NAME] gave evidence that a couple of days before the tenancy was due to begin on 25 November 2024, [NAME] contacted him advising that he had lost his job and was unable to proceed with the tenancy. [NAME] gave evidence that he could not afford to pay the rent himself moving forward.

11. [NAME] contacted the landlord and discussed the option of terminating the tenancy. The landlord agreed to this, but advised [NAME] that he would need to pay rent up to the date a new tenancy began and a “break lease” fee of $446.00.

12. Understandably, it took the landlord some time to find a new tenant, as it was close to the end of the year. To try to quicken the process, the landlord reduced the weekly rent by $20.00 per week.

13. Concerned about his ability to continue paying rent for an indefinite period of time, [NAME] filed an application with the Tribunal on 12 January 2025 to reduce the fixed-term.

14. By the date of the hearing on 13 February 2025, the tenancy had ended with a new tenancy having begun on 21 January 2025.

15. [NAME] gave evidence that he continued to pay the full rent up to 25 December 2024. Thereafter, he was only able to pay a portion of the rent due. The landlord’s rent summary reflects this and shows that rent arrears were $1,305.00 up to 20 January 2025.

16. [NAME] gave evidence that he is not working and is due to start full-time study around March 2025. He claims he will graduate at the end of this year. [NAME] gave evidence that he has a total of $800.00 savings in his bank account and that he had to borrow money from his father to pay rent between 23 November 2024 – 14 January 2025. [NAME] claims that he also needs to secure new accommodation for the academic year. He intends to use his portion of the bond plus his savings to help with this.

17. The landlord claims they would suffer hardship if the term were reduced because they rely on rent to help them pay the mortgage. The total rent arrears up to 20 January 2025 equates to 11 days.

18. I accept that the landlord would suffer hardship if the term were reduced, but consider that the tenant’s hardship to be greater. This is because [NAME] is a fulltime student with a limited income and a small amount of savings. I consider the financial impact on the tenant to be greater than the landlord.

19. The fixed-term is accordingly reduced to 12 January 2025.

20. Where the Tribunal reduces a fixed-term tenancy, it may order the tenant to pay the landlord reasonable compensation for any resulting loss. See section 66(2) Residential Tenancies Act 1986.

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21. I award compensation of $1,216.00 to the landlord. This sum reflects the reasonable costs incurred by the landlord in finding a new tenant ($446.00) and rent arrears up to 12 January 2025, namely $770.00.

Filing fee

22. [NAME] has wholly succeeded with the claim I must reimburse the filing fee.

[NAME]

18 February 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: