Tenancy Tribunal Dismisses Tenant’s Claim for Reduced Term and Compensation

OUTCOME: Dismissed

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[2026] NZTT 5507133, 5356345

TENANCY TRIBUNAL AT AUCKLAND | TE TARAIPIUNARA RETIHANGA KI TĀMAKI MAKAURAU

APPLICANT: [redacted]

Landlord

RESPONDENT: [redacted]

Tenant

TENANCY ADDRESS: [ADDRESS], [POSTCODE]

ORDER

1. [NAME] [NAME] and [NAME] must pay [APPELLANT] $3,347.15 immediately, calculated as shown in table below.

2. The Bond Centre is to pay the bond of $5,200.00 (BN-17578840) to [APPELLANT] [COMPANY] As Agent For [COUNSEL] immediately.

Description Landlord Tenant Rent arrears to 23 November 2025 $7,242.86 Water rates $255.29 Garage remote $101.00 Repairs $920.00 Filing fee reimbursement $28.00 Total award $8,547.15 Bond $5,200.00 Total payable by Tenant to Landlord $3,347.15

3. The tenant’s claims to be released from the fixed term tenancy and for compensation are dismissed

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Reasons:

1. Both parties attended the hearing held on 20 May 2026.

2. The tenant applied for refund of the bond, to be released from the fixed term tenancy and for compensation.

3. The landlord applied for rent arrears, water rates, compensation for garage remote and repairs due to alterations by the tenant.

4. The tenancy began on 23 November 2024 and was for a fixed term due to end on 23 November 2025.

5. The parties had an agreement that the tenant could run her business from the premises, and they agreed that the weekly rent would be $100.00 more than the advertised rent.

6. The tenant had understood that this would be a long-term tenancy even though the tenancy agreement was only fixed for one year. I think that the landlord also expected the tenancy to last longer than one year given the clause for the term of tenancy included, “with the option for extension if both parties agree in writing” and the email dated 12 November 2024 where the landlord included, “It’s a fixed term tenancy for a one year period (can be extended after expiry date)...”

7. On 9 September 2025 the landlord gave notice1 that the fixed term tenancy would not extend beyond the end of the fixed term on 23 November 2025. In that email the landlord advised,

“In terms of notice period for moving out early: As soon as you secure a new place and have a firm move-in date, please let me know and we’ll do our best to accommodate it. The owner is happy to be flexible around you move-out date.”

8. The tenants located a new tenancy and moved out around 10 October 2025. They understood that the landlord had agreed to end the tenancy early, but this is denied by the landlord. At the hearing when asked about what “flexible” meant in the email the landlord said he thought the tenancy would end one to two weeks early (rather than 6 weeks). When asked why the landlord is no longer willing to be flexible, he said it was because of the tenant’s application to the Tribunal and what they were claiming. However, it seems that the landlord decided not to be flexible soon after the tenants signed the new tenancy agreement, rather than when they applied to the Tenancy Tribunal.

Reduction of fixed term tenancy

1 Section 60A(2)(c) Residential Tenancies Act 1986

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9. The tenant has applied for reduction of the fixed-term tenancy due to end on 23 November 2025.

10. 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.

11. The end of the fixed term tenancy is not an unforeseen change in the tenant's circumstances. The tenancy agreement signed by the tenants was for a fixed term. It is accepted that both parties had expected the tenancy to last longer than one year, but contractually there was only agreement for one fixed year and the landlord was entitled to not continue it beyond the fixed term.

12. The tenant’s application for reduction of the fixed term is dismissed.

Compensation

13. The tenants set up a business at the premises. They had made alterations to the premises (discussed further below) which involved some financial commitment. The tenant seeks compensation given the money that they spent on their business which they expected to last at the premises for longer than one year but ended at the end of the fixed term.

14. The decision to invest in the premises was a risk for the tenants given that they only had a tenancy agreement for one year. A commercial premise may have provided them with a longer term but also may have required more for weekly rent.

15. There is no link between the end of the tenancy and the tenant’s claim for compensation. The claim is dismissed.

Alterations

16. The tenants set up a spa business at the premises. As the business progressed the tenant expanded the services.

17. The tenant said that the landlord had repeatedly advised that alterations could be made provided that the property was left in the condition that they found it. The parties had specifically discussed a partition wall but there is no record of discussing the other alterations.

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18. The landlord did not agree to the proposed partition wall but there is no claim for repairs to any damage caused by the installation of a free standing partition wall.

19. In an email dated 25 July 2025 the landlord listed the alterations as:

- Downstairs lounge: walls erected to separate rooms

- Spa put on deck

- Shower installed on deck

- Cold plunge and sauna added to deck

- Water connections for the above

20. The email also said, “the vendor is now fully aware of all these alterations and agrees to keep them as they are, provided that when you move out, the home is returned to its original condition.”

21. At the hearing the tenant said that the alterations included installing beds for Japanese hair treatment, a portable sauna, a portable spa, an ice bath and an outdoor shower. The spa and the ice bath used tap water to fill and needed power to run. There was drainage pipes installed for the spa and ice bath as well as the shower. Hot and cold water was provided for the shower and the sauna used a power point. The tenant installed a free-standing partition wall.

22. It is not completely clear what alterations the tenants carried out because they used a contractor to do the work and then to remove the alterations at the end. The landlord was also not certain what alterations were made other than what a contractor identified after the tenants had vacated. The problem is that there is no evidence of what the area under the deck looked like before the tenant made the alterations.

23. I find that some of the issues identified by the landlord’s contractor do not relate to this tenant. One of these is the wiring for the heat pump where there is no evidence that the tenants installed or required a heat pump. Also, there are refrigerant pipes for the heat pump that were loosed and not properly secured which also relate to the heat pump.

24. In the invoice the landlord’s contractor states, “need previous electrician to provide ESC to show where the small switchboard connect to.” At the hearing the landlord confirmed that the tenant had provided the ESC from their contractor in August 2025. The landlord did not provide the ESC to his contractor which may have resolved issues identified.

25. Due to the uncertainty of what repairs were required due to the alterations by the tenant and because the landlord failed to provide the ESC to the contractor, the award to the landlord is $920.00 ($800 plus GST) for repairs. This amount relates to the plumbing issues and not the electrical issues.

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How much is owed for rent and water rates?

26. The tenancy ended on 23 November 2025. The landlord provided rent records and water rates invoices which prove the amount owing at the end of the tenancy.

27. The landlord claimed for replacement of the garage remote which is awarded.

28. [APPELLANT] has substantially succeeded with the claim I have reimbursed the filing fee.

29. While the tenant sought name suppression, an order is not made for suppression given that the tenant has not been successful with their application and no other evidence supports suppression.

[NAME]

29 May 2026

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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, or the failure to make an order, where the amount in dispute on appeal is

less than $1000 • a final order to undertake work, or the failure to make an order, where the value of the

work in dispute on appeal is 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: