Tenancy Tribunal Awards Compensation for Water Damage and Floor Repair

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[2025] NZTT 5192012

TENANCY TRIBUNAL AT REMOTE LOCATION | TE [COMPANY]: [COMPANY]

Landlord

RESPONDENT: [redacted]

Tenants

TENANCY ADDRESS: Unit/[ADDRESS], [POSTCODE]

ORDER

1. [COMPANY] must pay Waimarie Rawson-[NAME] $1,202.61 immediately, calculated as shown in the table below.

2. The Bond Centre is to pay the bond of $2,200.00 (3430475-010) to Waimarie Rawson-[NAME] immediately.

Description Landlord Tenant Rent overpayment refund $707.00 Replace washing machine hose $216.80 Water rates $47.59 Replace net curtain $40.00 Compensation: floor and HWC $500.00 Total award $304.39 $1,207.00 Net award $902.61 Bond $2,200.00 Total payable by Landlord to Tenant $1,202.61

Reasons: 1. Both parties attended the hearing which was held by teleconference. The

landlord was represented by [NAME]

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3. The landlord has applied for water rates arrears, compensation, refund of the bond, and reimbursement of the filing fee following the end of the tenancy.

4. The tenants indicated an intention to file a cross application. By agreement of the parties this Order also deals with the claims raised by the tenants at the hearing.

Claims

5. The landlord’s claims for:

a. outstanding water rates; and

b. replacement of a net curtain;

are agreed by the tenants.

6. The tenants dispute the landlord’s compensation claims for:

a. the cost of a plumber’s call out; and

b. flooring repair.

7. The tenants claim compensation and exemplary damages for:

a. the effect of the floor damage and interruption of hot water on their use and enjoyment of the premises;

b. the landlord’s failure to appoint an agent while on of New Zealand; and

c. for the premises not meeting [COMPANY]’ compliance.

8. It is agreed that a rent refund is due to the tenants for payment of rent beyond the end of the tenancy.

Landlord’s claims.

9. The landlord claims that the tenants caused significant damage to the floor at the premises by improperly having the washing machine discharge hose put in the laundry tub at the same time as a bucket or other obstruction was in the tub, causing it to overflow and damage the floors. Compensation of $10,177.50 is sought in terms of a repair estimate provided.

10. A landlord must prove that damage to the premises occurred during the tenancy and is more than fair wear and tear. If this is established, to avoid liability, the tenant must prove they did not carelessly or intentionally cause or permit the damage. Tenants are liable for the actions of people at the premises with their permission. See sections 40(2)(a), 41 and 49B RTA.

11. Where the damage is caused carelessly, and is covered by the landlord's insurance, the tenant's liability is limited to the lesser of the insurance excess or

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four weeks' rent (or four weeks' market rent in the case of a tenant paying income-related rent). See section 49B(3)(a) RTA.

12. Where the damage is careless and is not covered by the landlord's insurance, the tenant's liability is limited to four weeks' rent (or market rent). See section 49B(3)(b) RTA. There is no suggestion of any intentional damage here so the tenants’ liability would, in any event, be capped at 4 weeks’ rent

13. The landlord’s assertion that the tenants were responsible for the water damage to the floor is based on what he says is a report from plumbers from [COMPANY], who visited the premises on 20 November 2024. The landlord says he was told that:

“The Tenant taped the washing machine pipe to the laundry tub tap and laid it loosely to drain into the tub. Not ideal at all. There was a bucket in the tub. The tub would have flooded and the bucket would have blocked the drain (due to the sucking motion of the water draining) and causing the water to flow over the tub and causing the laundry floor to flood hundreds of litres per wash machine cycle” The report from [NAME] was not provided.

14. The landlord has provided a copy of photograph he says were sent with that report showing the washing machine waste hose taped to the tap in the laundry tub as described. In that photograph there is a bucket in the laundry tub as well.

15. On 10 November 2024, the tenants contacted the landlord to say:

“…there seems to be a hole forming under the carpet in the doorway of the back bedroom and its quite dangerous…”. On being asked by the landlord when it was first noticed the tenants responded, “They have only become noticeable this past week, when walking over certain spots you can feel that it is hollow underneath the carpet and is a hazard.”

16. On 12 November 2024 the landlord contacted his handyman [NAME] who visited and inspected. The tenant has provided a report from [NAME] which says:

“[the landlord] advised me that the tenant at the address was reporting that the floor was sagging in several places under the carpet. He asked that I attend the address and repair the subfloor. I had previously done similar floor repair work at the address for [NAME]. At 8:30 AM on Friday 15 November 2024 I arrived at the address....[one of the tenants] showed me inside the house the area where the floor was sagging, which was in several places around the back bedroom doorway where it opens into the lounge/ living area and hall. The floor had definitely given way under the carpet. The carpet did not feel wet to the touch on top. I then removed the carpet and underlay around this area and found that the medium density fibreboard brackets (MDF) subfloor below was very wet - in fact sodden. As I exposed more of the floor it became apparent that the subfloor area that was wet was extensive. And it was likely being

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caused by leak. MDF is compromised when it gets wet ….. as I exposed more of the subfloor, in the lounge area, and in the second bedroom and wardrobe in that bedroom, it became obvious that the wet area was surrounding the hot water cupboard, so I suspected that the hot water cylinder was leaking. Upon opening the cupboard where the hot water cylinder was situated, the floor in there was wet but due to the restricted space, I couldn't see a leak. The hot water cylinder itself appeared old, but I could not read the date on the side of it. Upon looking at the laundry area which is situated at the back of the house, off the kitchen and behind the hot water cupboard, I noted that the floor in there was wet - on top of the linoleum floor covering. When I looked in the cupboard under the laundry sink come up the floor was very wet there too, and I noted that one of the laundry pipes under the sink was quite loose. I suspected that there might have been a second leak in this location as well. This leaking issue, from what I assessed to be two separate sources, in my opinion required urgent attention from a plumber. In other words the leaks needed to be stopped, before worrying about fixing the sagging sodden and compromise subfloor…….I have been to this address approximately 8 to 10 times since 2021 carrying out various jobs repairs and maintenance for [NAME]. This includes work in November 2021 and I did replace some areas of the subfloor (kitchen, lounge and hall) that had sagged due to what I believed to have been previous water damage.”

17. The landlord immediately arranged for [NAME] plumbers to visit the property and address the leak. Their invoice records:

“Investigated into leak, replaced wash machine hose and was leaking from hose. Trap had fallen off super tub big leak through there as wash machine was hooked up to it. Hot water cylinder has a small leak from inside casing needs to be replaced. Flooring looks as it needs to be replaced in cylinder cupboard before cylinder is installed. Hallway, bedroom and most likely laundry. Best for builder to inspect. Leaking hot water cylinder not sure of from top or bottom.”

18. That evidence suggests:

a. a significant possibility of pre-existing water damage affecting the subfloor;

b. that there has been an ongoing leak from the hot water cylinder which affected the flooring;

c. that as at 15 November 2024 when [NAME] visited, the washing machine waste hose was properly hooked into the super tub trap, not discharging into the laundry tub;

d. the supertub trap itself was leaking and that was where the “big leak” was. It seems quite possible that the reason the washing machine waste hose was in the tub when [NAME] visited on 20 November was because

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[NAME] had needed to put it there to fix the supertub discharge trap it had been hooked into, on 15 November.

19. The tenants gave direct evidence that they were never aware of any overflow from the laundry tub. They would have been aware had there been an overflow of hundreds of litres of water onto the floor as speculated by [NAME]. The tenant’s evidence is that while there may have been a bucket in the laundry tub the day [NAME] visited, that was not a usual practice.

20. The tenant’s evidence is that before notifying the landlord about the issue they had only noticed a small amount of water on the laundry floor on a couple of occasions.

21. Weighing the evidence provided and having heard from the parties I do not find it proved that the need for repair of the floor in the premises resulted from any carelessness or negligence on the tenants’ part or from a failure to notify the landlord of a need for repair. That claim is dismissed.

22. The invoice from [NAME] records a need to replace a leaking washing machine hose, which is the tenant’s responsibility. The landlord should be compensated for the portion of the invoice attributable to that work, equal to the minimum call out and the cost of the replacement hose.

Tenant’s claims

23. The evidence suggests that the tenants were provided with a copy of a [COMPANY] compliance certificate for the premises in July 2023. I do not find it proved that the premises were not [COMPANY] compliant.

24. The tenant gave evidence of the inconvenience caused by having to work around the sagging floor, particularly and the entrance to the bedroom. Having found that the issue is not one the tenants are responsible for, they are entitled to compensation for the reduction in their use and enjoyment of the premises caused by it.

25. On 18 November 2024 the tenants e-mailed the landlord seeking a 50% rent reduction due to that issue, limited access to hot water due to issues with the hot water cylinder and [COMPANY] non-compliance .

26. For the issues with the floor and the hot water cylinder I assess compensation at:

a. floor – $50.00 per week from 10 November 2024 when the problem became apparent to the end of the tenancy; and

b. hot water cylinder (repaired) - $100.00

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27. The tenants say that [NAME] is the landlord and was out of New Zealand for more than 21 days without appointing an agent here, breaching his obligations under s.16A RTA.

28. [NAME] says that the landlord is in fact the [COMPANY], which has a director who was resident in New Zealand at all times with an address apparent on the companies register. [NAME] also says that the tenants were given [NAME], the maintenance person, as a contact if needed and that [NAME] was always contactable himself.

29. I accept [NAME]’s evidence that the premises are owned by the [COMPANY], which does have another director besides [NAME] who has a recorded NZ address.

30. The agreement records the landlord as [NAME] personally. While that may have been an error on the part of the property manager who prepared and signed the agreement, that property manager was acting as agent for the landlord and the tenants are entitled to rely on the provisions of the agreement, which names [NAME] as the landlord.

31. I find that by not appointing an agent while out of New Zealand, the landlord’s obligation to the tenants was not met. By breaching s.16A the landlord has committed an unlawful act for which exemplary damages of up to $1,500.00 may be awarded.

32. Where a party has committed an unlawful act intentionally, the Tribunal may award exemplary damages where it is satisfied that it would be just to do so, having regard to the party’s intent, the effect of the unlawful act, the interests of the other party, and the public interest. See section 109(3) Residential Tenancies Act 1986.

33. Here, although the landlord is responsible for the actions of its agent and to that extent the breach may be regarded as intentional, and although I accept that some inconvenience may have been caused to the tenants as a result, in the circumstances I do not find that it would be just to make an award of exemplary damages against the landlord.

34. No order is made in respect of the filing fee.

[NAME]

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15 May 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: