Tenancy Terminated for Persistent Rent Arrears
📌 In brief
The Tenancy Tribunal ended a tenancy because the tenants had not paid their rent on time for a long time, even though they tried to catch up. The Tribunal felt it was unfair to continue the tenancy given the history of missed payments.
⚖️ Legal holding
A tenant's failure to pay rent on time, coupled with a history of arrears, justifies termination of the tenancy.
📖 What the law says
This rule allows a tenant to ask the Tenancy Tribunal to cancel a notice ending their tenancy if they believe the landlord gave the notice because the tenant complained or used their rights as a tenant. The tenant must apply within 14 working days of receiving the notice.
Plain-English explanation — does not replace advice from a lawyer.
📖 Technical summary
The Tenancy Tribunal terminated the tenancy due to persistent rent arrears despite the tenants' efforts to catch up.
📜 Headnote Official document
The Tenancy Tribunal terminated the tenancy of the tenants due to persistent rent arrears, despite the tenants' efforts to bring the arrears up to date. The Tribunal considered the long history of arrears and the inequity of continuing the tenancy.
📚 Full judgment Official document
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[2025] NZTT 5126931
TENANCY TRIBUNAL - Remote Location
APPLICANT: [redacted]
Landlord
RESPONDENT: [redacted]
Tenant
TENANCY ADDRESS: Unit/[ADDRESS], [POSTCODE]
ORDER
1. The tenancy of [NAME] and [NAME] at Unit/[ADDRESS], [POSTCODE] is terminated, and possession is granted to Edgecom Limited T/As Kings Property Management, at 11:59pm Friday 28 February 2025.
2. [NAME] and [NAME] must pay Edgecom Limited T/As Kings Property Management the amount of $677.00 immediately, as shown in the table below:
Description Landlord Tenant Rent arrears as at 13.2.25 $650.00 Filing fee reimbursement $27.00 Total award $677.00 Total payable by Tenant to Landlord $677.00
Reasons:
1. Both parties attended the hearing by remote teleconference.
2. The landlord has applied for rent arrears and termination of the tenancy for breach of the tenant’s obligations.
How much is owed for rent arrears?
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3. The landlord provided updated rent records which prove the outstanding rent arrears as at 13 February 2025. Having sighted the landlord’s updated rent ledger I am satisfied that the tenants are responsible for this debt.
4. The claim for rent arrears is proven.
Should the tenancy be terminated?
5. 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. See section 56(1) Residential Tenancies Act 1986.
6. 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.
7. The tenants have breached their obligations by failing to pay their rent on time as required each week.
8. The landlord served a 14-day notice on the tenants on 23 December 2024, and the tenants did not remedy the breach within the required period.
9. It would be inequitable to refuse to terminate the tenancy because of the long history of rent arrears.
10. The tenancy started on 26 November 2018. The rent ledger as provided by the landlord confirmed a history of rent arrears dating back to 2019. That said, I can also see that the tenants have made real efforts to bring the arrears up to date each time. The landlord also stated during the hearing that the tenants are good tenants.
11. My impression of the tenants is that they are genuinely responsible and have failed to pay the rent on time for no other reason than financial struggles. I sympathise with them but ultimately there is a flow on effect to other parties when rent is not paid on time.
12. Notwithstanding their real efforts to bring the arrears up to date I must grant the landlord’s request for termination based on the long history of arrears.
13. The landlord’s claim for termination and possession is granted.
14. Because Edgecom Limited T/As Kings Property Management has wholly succeeded with the claim I must reimburse the filing fee.
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15. The bond will remain with the bond centre.
[NAME]
13 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:
⚖️ What tends to weigh in cases like this
✅ Tends to be accepted
- The landlord proved the amount of outstanding rent arrears with updated records.
- The tenants failed to pay rent on time as required each week, breaching their obligations.
- The tenants did not fix the breach within the required period after receiving a 14-day notice.
- The tenancy had a long history of rent arrears dating back to 2019, making termination equitable.
- The landlord was reimbursed for the filing fee because they fully succeeded with their claim.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The Tenancy Tribunal decided to terminate the tenancy due to persistent rent arrears.
What was the dispute about?
The dispute was about whether the tenancy should be terminated because of the tenants' failure to pay rent on time.
How did the court decide, and why?
The court decided to terminate the tenancy because the tenants had a long history of rent arrears and had not paid rent on time, despite making efforts to catch up.
Which laws or rules were applied?
The Residential Tenancies Act 1986, specifically section 54, was applied.
What was the argument that mattered most?
The argument that mattered most was the long history of rent arrears and the inequity of continuing the tenancy.
Was the decision for or against the person who brought the case?
The decision was for the landlord who brought the case.
What does this mean for someone in a similar situation?
For someone in a similar situation, persistent rent arrears could lead to the termination of their tenancy, regardless of their efforts to catch up.
What evidence or documents mattered?
The evidence that mattered included the updated rent records showing the history of arrears and the landlord's 14-day notice to the tenants.