Tenant Fined for Using Rental Property Illegally: Tenancy Tribunal Decision

OUTCOME: Allowed

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[2026] NZTT 5337820

TENANCY TRIBUNAL AT REMOTE LOCATION | TE TARAIPIUNARA RETIHANGA

APPLICANT: [redacted]

Landlord

RESPONDENT: [redacted]

Tenant

TENANCY ADDRESS: [Tenancy address suppressed]

ORDER

1. An application for suppression has been made in this case, and the Tribunal orders suppression of the landlords’ names and identifying details.

2. [RESPONDENT] must pay [The landlord/s] $2,361.73 immediately, calculated as shown in table below.

3. All other claims are dismissed.

4. [COMPANY] is to pay the bond of $1,400.57 ([Bond number suppressed]) to [The landlord/s] immediately.

Description Landlord Tenant Lock/key replacement $557.70 Rubbish removal $479.58 Cleaning $25.90 Cleaning $7.99 Repairs: to the deck $211.78 Repairs: to the wiring and the electrical inspection $1,194.35 Exemplary damages unlawful use $1,000.00 Water rates $285.00 Total award $3,762.30 Bond $1,400.57 Total payable by Tenant to Landlord $2,361.73

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Reasons:

1. The landlord attended the hearing.

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. On 27 August 2025 the landlords were advised by the police that the tenancy premises were being used to cultivate cannabis. There was significant damage to the inside of the house and to the electrical wiring. [NAME] paid the full lump sum available under the landlords’ policy for deliberate damage and paid lost rent to 16 December 2025.

Can I make a further order for rent?

3. The landlord has submitted that the house is still uninhabitable because the amount provided by [NAME] is in no way enough to carry out repairs and get the house to a condition where it can be tenanted again. They want an order the tenant pay rent until the house is habitable, or that the tenant pay rent to the end of the fixed term tenancy which was in April 2026. I was provided with information from [NAME] at the hearing and I have read this.

4. I am not persuaded I can make this order. In October 2025 I made an order for rent arrears to 8 September 2025, which was the day the landlord changed the locks and took possession. The fixed term tenancy ended when the landlord took possession, so I cannot also make an order the tenant pay rent until April 2026.

5. I can consider a claim for loss of rent. The usual process is for the landlords to provide quotes and reports from builders to prove how long the repair process will take. I was not provided with any of that information, even though we adjourned to allow the landlords to sort insurance and provide updated information to support their claims. Also, it is unlikely I would allow more than the 14 weeks already provided by [NAME]. The claims for lost rent and for rent until the house is made habitable are dismissed.

Does the tenant owe water rates?

6. The landlord provided records which show the tenant owed water rates at the end of the tenancy. This claim is proved.

Did the tenant comply with his obligations at the end of the tenancy?

7. There is a claim for rubbish removal and a small amount of cleaning. Tenants are required to return the premises in a reasonably clean and tidy state and remove their rubbish at the end of the tenancy. See section 40(1)(c) and (e)(iii) Residential Tenancies Act (RTA).

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8. To determine what is reasonably clean and tidy the Tribunal must evaluate the evidence available, and in particular inspection reports and photographs. The landlords provided me with photos which prove their claims for rubbish removal and cleaning.

Is the tenant responsible for the damage to the premises?

9. The landlords have provided invoices and claimed a small amount for repairing damage. The landlord must prove that the 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.

10. There was damage to the lock, the deck and the wiring. The landlords have proved this was caused during the tenancy. The damage is more than fair wear and tear, and the tenant has not disproved liability for the damage. The amounts ordered are proved.

Should I allow exemplary damages?

11. The landlords have proved the tenant used the premises unlawfully. Section 40(2)(b) RTA provides that tenants must not use the premises or permit the premises to be used for an unlawful purpose. Cultivating cannabis is illegal and a breach of the Misuse of Drugs Act 1975. I find the tenant committed an unlawful act.

12. Breaching this obligation is an unlawful act for which exemplary damages may be awarded up to a maximum of $1,800. See section 40(3A)(c) and Schedule 1A RTA.

13. Where a party has committed an unlawful act intentionally, the Tribunal may award exemplary damages where it is satisfied 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) RTA.

14. The tenancy premises was used for a commercial cannabis operation. The tenant must have acted intentionally. The effect for the landlord has been immense. They are financially stretched. They are scared to go to the house. They are under considerable stress. They have spent all the money provided by [NAME] and the house still needs significant repairs. This should never happen in a tenancy and there is public interest in making an order for exemplary damages to penalise the tenant.

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15. I allow $1000 in exemplary damages. This is higher than I would usually allow where there is no evidence the tenant has done this before, but the deliberate damage needed to carry out the cultivation warrants the higher amount.

Other orders

16. I made an order for the filing fee in my last order.

17. I have organised for the bond to be refunded to the landlords.

18. There is an application for suppression. Section 95A RTA provides that the Tribunal may, on the application of any party to proceedings or on its own initiative, order that the name of a party not be published, having regard to the interests of the parties and to the public interest. The landlords are the most successful party and suppression is allowed. The tenant’s name is published because there is public interest in such a serious breach of the RTA.

[NAME] 05 June 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: