Tenant Awarded Damages for Rent Arrears and Property Damages
📌 In brief
The Tenancy Tribunal ruled in favour of the tenant, ordering the landlord to pay the bond and awarding damages for rent arrears and property damages, including cleaning costs and plumbing repairs.
⚖️ Legal holding
A tenant is entitled to have rent arrears reduced by one-third if the landlord fails to mitigate losses after a tenancy breach.
📖 What the law says
This rule says that if one person involved in a tenancy agreement breaks the rules, the other person must do everything reasonable to reduce any harm or financial loss caused by that breach. This is similar to how contract law deals with reducing losses when a contract is broken.
This rule outlines a tenant's duties, including paying rent on time, using the property mainly as a home, keeping it reasonably clean and tidy, and telling the landlord about any damage or needed repairs. When moving out, the tenant must leave the property, remove their belongings, leave it reasonably clean, and take out all rubbish.
Plain-English explanation — does not replace advice from a lawyer.
📖 Technical summary
The Tribunal ordered the landlord to pay the bond to the tenants and awarded the tenants damages for rent arrears and property damages.
📜 Headnote Official document
The Tenancy Tribunal ordered the landlord to pay the bond to the tenants and awarded the tenants damages for rent arrears and property damages, including cleaning costs and plumbing repairs.
📚 Full judgment Official document
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[2025] NZTT 5131053
TENANCY TRIBUNAL AT REMOTE LOCATION | TE TARAIPIUNARA RETIHANGA
APPLICANT: [redacted]
Landlords
RESPONDENT: [redacted]
Tenant
TENANCY ADDRESS: [ADDRESS], New Plymouth, New Plymouth 4310
ORDER
1. The [COMPANY] is to pay the bond of $3,000.00 (6132631-003) to [NAME] and [NAME] immediately.
2. [NAME] to pay [NAME] and [NAME] $4,852.66 immediately, calculated as follows:
Description Landlord Rent arrears to 15 January 2025 (reduced by 1/3) $6,500.00 Cleaning interior premises $400.00 Plumbing (sewer) repairs $925.66 Filing fee $27.00 Total award $7,852.66 Minus Bond -
$3,000.00 Tenant to pay $4,852.66
Reasons:
1. The Landlord attended the hearing by phone. The Tenant did not attend.
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2. The Landlord has applied for rent arrears, compensation, refund of the bond, and reimbursement of the filing fee following the end of the tenancy.
How much is owed for rent?
3. The tenancy ended on 22 January 2025. The Landlord provided rent records which prove the amount owing on 15 January 2025: $10,500.00
4. The Landlord acquired legal ownership of tenanted premises. The Landlord’s accept they were not actively monitoring rent payments and some payments were missed and the Tenant has continued in arrears for some time. On 1 January 2025, the Tenant was $9,750.00 in arrears and this is when the Landlord served the Tenant their first 14-day breach notice pursuant to s 56.
5. Pursuant to s 49 of the Residential Tenancies Act 1986, Landlords are legally required to take reasonable steps to mitigate losses once a tenancy breach occurs, such as by ending the tenancy or re-letting the property to prevent further rent arrears. Case law confirms that failing to act promptly can reduce the amount recoverable. Even if a Landlord acts out of sympathy or good faith, ongoing inaction may still be considered unreasonable. The duty to mitigate applies regardless of a Tenant’s personal circumstances.
6. In similar cases, rent has been reduced by a third. I consider the rent arrears, which accrued between 4 September 2024 and 1 January 2025, before the Landlord acted, should be reduced by 1/3, resulting in recoverable arrears of $6,500.00.
Did the tenant comply with their obligations at the end of the tenancy?
7. At the end of the tenancy the tenant must leave the premises reasonably clean and tidy, remove all rubbish, return all keys and security devices, and leave all chattels provided for their benefit. See section 40(1)(e)(ii)-(v) Residential Tenancies Act 1986. The tenant is required to replace worn out smoke alarm batteries during the tenancy. See section 40(1)(ca) Residential Tenancies Act 1986. The tenant must also replace standard light bulbs.
8. The tenant did not leave the premises reasonably clean and tidy and did not remove all rubbish.
9. The beds, carpets and couches had food and blood stains which required cleaning, the Landlord says. The cost of cleaning them came to $750.00. The Tenant does not know what condition these were in at the start of the tenancy, but it is apparent they have worsened during this tenancy. I approve $400.00. I note the Tenant was a single mum with young children.
10. The landlord has claimed the cost of rekeying locks, installing a deadbolt, and reprogramming a garage remote. I cannot determine this claim, however, as I have insufficient evidence concerning the existence of the keys, deadlock or
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garage remote at the commencement of the tenancy. The Landlord was not the legal owner of the premises at the start of the tenancy.
Is the tenant responsible for the damage to the premises?
11. 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.
12. Where the damage is careless, and occurs after 27 August 2019, section 49B RTA applies. If the landlord becomes aware of the damage after 27 August, the damage is presumed to have occurred after that date unless the tenant proves otherwise.
13. 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 four weeks' rent (or four weeks' market rent in the case of a tenant paying income- related rent). See section 49B(3)(a) RTA.
14. 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. Where insurance money is irrecoverable because of the tenant's conduct, the property is treated as if it is not insured against the damage. See section 49B(3A)(a) RTA.
15. Tenants are liable for the cost of repairing damage that is intentional or which results from any activity at the premises that is an imprisonable offence. This applies to anything the tenant does and anything done by a person they are responsible for. See section 49B(1) RTA.
16. Damage is intentional where a person intends to cause damage and takes the necessary steps to achieve that purpose. Damage is also intentional where a person does something, or allows a situation to continue, knowing that damage is a certainty. See Guo v Korck [2019] NZHC 1541.
17. The Tenant clogged the toilet systems during the tenancy, causing the sewer pump to fail. This happened previously, according to the Landlord. There was a sign on the door reminding the Tenant to not flush sanitary items down the toilet, but it appears the Tenant has continued to do this, causing the toilet and plumbing systems to clog again. The damage is more than fair wear and tear, and the tenant has not disproved liability for the damage. The cost of repair was $925.66.
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18. [NAME] has wholly succeeded with the claim I must reimburse the filing fee.
[NAME]
21 March 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 tenant's rent arrears were reduced by one-third because the landlord failed to mitigate losses by not ending the tenancy or re-letting
- The tenant's failure to clean the premises led to approved cleaning costs of $400
- The tenant caused plumbing damage by flushing sanitary items, which was more than fair wear and tear
❌ Tends to be rejected
- The landlord's claim for rekeying locks and garage remote costs was dismissed due to insufficient evidence
- The landlord's argument for full rent recovery without reduction was rejected because they didn’t act to mitigate losses
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The Tenancy Tribunal ordered the landlord to pay the bond to the tenants and awarded damages for rent arrears and property damages.
What was the dispute about?
The dispute was about unpaid rent arrears and damages to the rental property.
How did the court decide, and why?
The court decided in favour of the tenant, reducing the rent arrears by one-third due to the landlord's failure to mitigate losses and approving cleaning and plumbing repair costs.
Which laws or rules were applied?
The Residential Tenancies Act 1986, sections 49 and 40 were applied.
What was the argument that mattered most?
The most important argument was that the landlord failed to mitigate losses after a tenancy breach, leading to a reduction in rent arrears.
Was the decision for or against the person who brought the case?
The decision was for the tenant who brought the case.
What does this mean for someone in a similar situation?
Someone in a similar situation might be able to receive a reduced rent arrears payment if the landlord fails to mitigate losses after a breach.
What evidence or documents mattered?
Evidence included rent records, proof of damages, and a reminder sign about flushing items down the toilet.