VadeLab
AllowedTenancy Tribunal·

Tenancy Terminated for Rent Arrears

Case No.

📌 In brief

The Tenancy Tribunal ended the tenancy of two joint tenants because they fell behind on their rent payments. The tribunal ordered the landlord to receive the bond and the tenants to pay the outstanding rent arrears.

⚖️ Legal holding

A tenant is responsible for rent arrears even if they are joint tenants.

Topics

rent arrearstermination of tenancy

Provisions

📖 What the law says

Residential Tenancies Act 1986 s.55

This rule says that the Tenancy Tribunal must end a tenancy if the landlord applies and the rent was at least 21 days overdue when the application was made. It also allows termination if the tenant has caused or threatened significant damage to the property, or has assaulted or threatened the landlord or their family/agent.

Plain-English explanation — does not replace advice from a lawyer.

📖 Technical summary

The tenancy was terminated due to rent arrears, and the bond was transferred to the landlord.

📜 Headnote Official document

The Tenancy Tribunal terminated the tenancy of two joint tenants due to rent arrears and ordered the transfer of the bond to the landlord. The decision was based on the Residential Tenancies Act 1986, section 55(1)(a).

📚 Full judgment Official document

__________________________________________________________________________________ 5127333 1

[2025] NZTT 5127333

TENANCY TRIBUNAL - Remote Location

APPLICANT: [redacted]

Landlord

RESPONDENT: [redacted]

Tenant

TENANCY ADDRESS: [ADDRESS], [POSTCODE]

ORDER

1. The tenancy of [NAME] and [NAME] at [ADDRESS], [POSTCODE] is terminated, and possession is granted to [COMPANY], at 11.59pm on Friday 21 February 2025 .

2. The [COMPANY] is to pay the bond of $1,760.00 (5132709-002) to [COMPANY] immediately.

3. [NAME] and [NAME] must pay [COMPANY] $7,280.95 immediately, calculated as shown in the table below:

Description Landlord Tenant Rent arrears to 21 February 2025 $9,013.95 Filing fee reimbursement $27.00 Total award $9,040.95 Bond already held by the landlord $1,760.00 Total payable by Tenant to Landlord $7,280.95

Reasons:

1. The landlord attended the hearing, as did [NAME]. Her brother and co- tenant [NAME] did not attend the hearing.

__________________________________________________________________________________ 5127333 2

2. The landlord has applied for termination of the tenancy, rent arrears and refund of the bond.

3. [NAME] was joined as a tenant on 24 May 2024. At that date rent was in credit. The rent summary records that $101.76 more than was owed had been paid in rent for the week ending 28 May 2024 (being the rent week that 24 May falls in). Therefore the rent arrears have accumulated during the time [NAME] and [NAME] were joint tenants.

4. The rent summary shows $8,688.24 rent is owed to the rent week ending 17 February 2025. A further $325.71 is owing for 18 to 21 February 2025. Any rent that is paid by the tenants prior to 21 February 2025 is to be deducted from the amount ordered as owing to that date.

5. Tenants who enter into a tenancy together are jointly and severally liable. That means that all tenants are equally responsible or liable (even without personal fault) for carrying out the full terms of the contract. If any obligations are breached, such as rent arrears, then each tenant is jointly liable with the other tenants and separately liable for the breach. Simply put, the landlord may sue just one tenant for the arrears owed or all the tenants as all the tenants are fully responsible for any breach.

6. [NAME] said she had paid her share of the rent and the arrears were caused as her brother had not paid his share of the rent. However as she is a joint tenant [NAME] is legally responsible along with her brother for the arrears. Accordingly an order against both tenants is made.

7. [NAME] gave the landlord 28 days’ notice to end the tenancy on 24 January 2024. The tenancy is a periodic tenancy. Notice from one tenant where there are multiple co-tenants in a periodic tenancy is deemed to be notice to terminate the whole tenancy1.

8. The landlord accepts 21 February 2025 as the end date of the tenancy.

9. The rent record provided by the landlord establishes that rent was at least 21 days in arrears on the date the application was filed. The tenancy is terminated. See section 55(1)(a) Residential Tenancies Act 1986.

Bond

10. The landlord said he received a refund of the bond ($1,760.00) on 23 October 2023 and was waiting for [NAME] to sign and return a bond lodgement form so that he could lodge the bond. However as it was not returned the landlord said he did not lodge the bond.

11. Accordingly the bond is recorded as being held by the landlord.

1 . Takarangi v Summit Property Management Limited [2023] NZDC 11628

https://tta.today/download/takarangi-v-summit-property-management-limited-2023-nzdc-11628/

__________________________________________________________________________________ 5127333 3

Filing Fee

12. The landlord is entitled to reimbursement of the filing fee as he hs been successful in his claim.

W Lang

18 February 2025

__________________________________________________________________________________ 5127333 4

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/

__________________________________________________________________________________ 5127333 5

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

  • Joint tenants are fully responsible for rent arrears.
  • The rent was in arrears for at least 21 days.
  • The landlord is entitled to reimbursement of the filing fee.

❌ Tends to be rejected

  • The tenant claimed she had paid her share of the rent, but this did not reduce her responsibility for the arrears.
  • The tenant argued the arrears were caused by her brother not paying his share, but this was not accepted by the court.

Patterns observed in similar cases in this collection — every case is unique.

❓ Frequently asked questions

What did this decision decide?

The tenancy was terminated, and the landlord was given possession of the property. The bond was transferred to the landlord, and the tenants were ordered to pay rent arrears.

What was the dispute about?

The dispute was about rent arrears and the termination of the tenancy agreement.

How did the court decide, and why?

The court decided to terminate the tenancy because the rent was at least 21 days in arrears. The tenants were jointly and severally liable for the rent arrears.

Which laws or rules were applied?

The Residential Tenancies Act 1986, section 55(1)(a) was applied.

What was the argument that mattered most?

The argument that mattered most was that the tenants were jointly and severally liable for the rent arrears, meaning both tenants were responsible for paying the outstanding rent.

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, falling behind on rent payments can lead to the termination of the tenancy and the requirement to pay outstanding rent arrears.

What evidence or documents mattered?

The rent summary showing the amount of rent arrears was the key evidence used in the decision.

Official source: Tenancy Tribunal headnote and full judgment reproduced from the court's public records. View on the official source ↗Summary, holding, technical summary and questions: produced by Artificial Intelligence based on the official headnote and judgment. These are VadeLab’s own material and are not the work of the Court.This decision was issued by the Tenancy Tribunal and is reproduced from its published records. VadeLab is not affiliated with, and this page is not endorsed by, that court or tribunal.
Tenancy Terminated Due to Rent Arrears - Tenancy Tribunal | VadeLab