Tenancy Terminated for Unpaid Rent Arrears
📌 In brief
The Tenancy Tribunal ended a tenancy because the tenant did not pay rent arrears and did not remedy the breach notice. The tenant was ordered to pay the landlord $3,731.00.
⚖️ Legal holding
A tenant is entitled to have their tenancy terminated if they fail to remedy rent arrears and it is just and equitable to do so.
📖 Technical summary
The Tenancy Tribunal terminated the tenancy due to rent arrears and ordered the tenant to pay the landlord $3,731.00.
📜 Headnote Official document
The Tenancy Tribunal terminated the tenancy of a tenant due to unremedied rent arrears and ordered the tenant to pay the landlord $3,731.00. The Tribunal found that the tenant had not taken reasonable steps to mitigate their loss and that it was just and equitable to terminate the tenancy.
📚 Full judgment Official document
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[2025] NZTT 5117410
TENANCY TRIBUNAL AT REMOTE LOCATION | TE TARAIPIUNARA RETIHANGA
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 Wednesday 9 April 2025.
2. The Bond Centre is to pay the bond of $2,600.00 (3338775-004) to [COMPANY] immediately.
3. [NAME] and [NAME] must pay [COMPANY] $3,731.00 immediately, calculated as shown in the table below:
Description Landlord Tenant Rent arrears to 19 February 2025. $6,304.00 Filing fee reimbursement $27.00 Total award $6,331.00 Bond $2,600.00 Total payable by Tenant to Landlord $3,731.00
Reasons:
1. [NAME] for the landlord attended the hearing. The tenants were called on the phone numbers in the application form but did not answer. The tenants did not
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attend by video. I am satisfied that the tenants were made aware of the hearing and have proceeded in their absence.
2. This application was filed on the 20 December 2024, the tenants were at that stage in rent arrears of $1104.00. The tenants had stopped paying rent on the 25 September 2024. As the tenants had a significant rent credit when they stopped paying rent, the tenants did not get into rent arrears until the 12 December 2024.
3. In the application the landlord applied for termination under s56 RTA. That provision allows termination if the landlord has issued a 14 day notice that is unremedied and it would be just and equitable to grant termination.
4. I am satisfied that the tenants have not remedied the breach notice for rent arrears given to them on the 17 December 2024 and it would be just and equitable to terminate the tenancy because the tenants have not paid any rent since the notice was issued and are more than 21 days in rent arrears.
5. The tenants have left the property. It is not known when the tenants left the property. The landlord conducted an inspection on or about the 9 March 2025 and found the property abandoned.
How much does the tenant owe?
6. The landlord seeks rent until the hearing date.
7. A claimant must take all reasonable steps to minimise the loss arising from the breach and cannot recover damages for losses that could have been avoided. [COMPANY] v [COMPANY] [1912] AC 673.
8. The District Court has previously held that when a landlord must act within a reasonable timeframe when arrears accumulate, and that ongoing inaction can be seen as a failure to mitigate their loss. Huang v Ashworth [2024] NZDC 15726:
9. The question that I need to determine is whether this landlord acted within a reasonable time frame and took reasonable steps to mitigate their loss?
10. The landlord submits that the steps it took were reasonable, because having filed the application for termination the landlord had to wait until the Tribunal hearing. The landlord says that any delay is because of delays in obtaining a hearing within the Tribunal rather than a failure of the landlord to act. The landlord also says that the tenants did not attend mediation and have failed to answer telephone calls and emails.
11. Having carefully considered all the evidence, I have only awarded rent arrears to the 19 February 2024. I do not consider that the landlord took all reasonable steps to mitigate their loss, I say this for the following reasons:
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a. An application to the Tribunal does not prevent the landlord from inspecting the property, issuing further breach notices or trying to make contact with the tenants.
b. I consider that reasonable steps would have been for the property manager to visit the property on or around the 31 December when the 14 day notice expired, or to go to the property soon after to ascertain if the tenants were still there after that time.
c. I have taken into account the holiday period. At the very least, I consider that a prudent property acting reasonably would have gone to the property before the mediation.
d. Whilst the landlord says that property managers visited the premises, there is no documentary evidence that supports that and I did not hear from the property managers who conducted those visits today.
e. After the tenant did not attend mediation, the landlord should have made it their priority to go to the property and check if the tenants were still in the property.
f. At the very least when the landlord conducted the inspection on the 9 March (which I consider too long after the tenants stopped paying rent- at this stage it was almost six months since the tenants had last paid rent) the landlord should have updated the application to ask for abandonment. Had the landlord done so, then this application could have been considered quickly (on the papers) if the landlord had applied for expediated abandonment.
12. I have allowed rent to 19 February, taking into account the holiday period and the mediation on the 5 February, I consider that the landlord should have ascertained by that stage if the tenants were living in the property or not.
13. I have taken the amount owing from the landlord’s rent statement.
14. [COMPANY] has substantially succeeded with the claim I have reimbursed the filing fee.
[NAME]
10 April 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 tenants did not remedy the breach notice for rent arrears.
- The tenants have not paid any rent since the notice was issued.
- The tenants are more than 21 days in rent arrears.
- The tenants have abandoned the property.
❌ Tends to be rejected
- The landlord did not take all reasonable steps to mitigate their loss.
- The landlord waited until the Tribunal hearing without inspecting the property or issuing further breach notices.
- The landlord did not visit the property after the 14-day notice expired.
- The landlord did not update the application to ask for abandonment after finding the property abandoned.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The Tenancy Tribunal terminated the tenancy and ordered the tenant to pay the landlord $3,731.00.
What was the dispute about?
The dispute was about unpaid rent arrears and the termination of the tenancy.
How did the court decide, and why?
The court decided to terminate the tenancy because the tenant did not remedy the rent arrears and it was just and equitable to do so.
Which laws or rules were applied?
The Residential Tenancies Act 1986, section 54 was applied.
What was the argument that mattered most?
The argument that mattered most was that the tenant did not remedy the rent arrears and it was just and equitable to terminate 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, failing to remedy rent arrears can lead to the termination of their tenancy.
What evidence or documents mattered?
The evidence included the rent arrears, the breach notice, and the lack of response from the tenant.