Tenant Granted Conditional Termination Order to Clear Rent Arrears
📌 In brief
The Tenancy Tribunal gave a tenant a chance to clear their rent arrears over time instead of terminating the lease immediately. This decision was based on the tenant's demonstrated ability to make regular payments towards the debt.
⚖️ Legal holding
A tenant is entitled to a conditional termination order if they demonstrate the ability to clear substantial but manageable rent arrears.
📖 What the law says
This section says that the Tenancy Tribunal must end a tenancy if the rent is at least 21 days overdue when the landlord applies, or if the tenant has caused or threatened significant damage to the property, or has assaulted or threatened the landlord or their family/agent.
This section guides the Tenancy Tribunal to resolve disputes fairly and quickly, focusing on the overall merits and justice of the case rather than strict legal technicalities. It allows the Tribunal to consider the general principles of law but not be strictly bound by them.
Plain-English explanation — does not replace advice from a lawyer.
📖 Technical summary
The Tenancy Tribunal granted a conditional termination order allowing the tenant to clear arrears over time.
📜 Headnote Official document
The Tenancy Tribunal granted a conditional termination order to a tenant with substantial but manageable rent arrears, allowing the tenant to clear the arrears over time under specific payment conditions.
📚 Full judgment Official document
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[2025] NZTT 5119411
TENANCY TRIBUNAL - Remote Location
APPLICANT: [redacted]
Landlord
RESPONDENT: [redacted]
Tenant
TENANCY ADDRESS: [ADDRESS], [POSTCODE]
ORDER
1. [NAME] owes [COMPANY] $1,204.62 (“the debt”).
2. [NAME] must pay rent and the debt as follows:
a. By 4 weekly payments of $389.16, being $88.00 for rent and $301.16 for the debt.
b. A final payment of $87.98, being $88.00 for rent and -$0.02 for the debt.
c. Payments will be every Wednesday, with the first payment on 19/02/2025 and continuing until 19/03/2025.
3. Payments will be allocated in the following order: rent and then rent arrears.
4. If the tenant fails to pay rent and rent arrears within 2 working days of the due dates:
a. The tenancy at [ADDRESS], [POSTCODE] will terminate and the landlord will have immediate possession of the premises.
b. The balance of the debt will be payable immediately.
Reasons:
1. Both parties attended the hearing which was held by teleconference.
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2. The landlord has applied for termination of the tenancy and rent arrears. The tenant [NAME], wants to repay the debt to avoid immediate termination.
Should a conditional termination order be made?
3. Where rent is at least 21 days in arrears on the date the application was filed, the Tribunal must make either a final or a conditional termination order. See section 55(1)(a) and (1A) Residential Tenancies Act 1986.
4. The rent arrears is substantial but in my view it is still at a manageable level. In the last few months [NAME] has been making inroads into paying off the arrears. In my view the substantial merits and justice of this case are such that [NAME] should be given an opportunity to clear the arrears, See the Residential Tenancies Act, 1986, section 85(2).
5. I am satisfied [NAME] will pay the debt within the period specified in the order and once the debt is cleared, is unlikely to commit any further relevant breach. I have granted a conditional termination order.
6. The conditional termination order will lapse if it is fully complied with. If [NAME] breaches the order, the possession order may be enforced for 90 days from the first breach. See section 64(4)(b) Residential Tenancies Act 1986.
[NAME]
12 February 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 has been making progress in paying off the arrears recently.
- The total amount of arrears is considered substantial but manageable.
- The tenant demonstrated a willingness and ability to clear the arrears over time.
- The tenant showed a commitment to avoid further breaches once the debt is cleared.
❌ Tends to be rejected
- The landlord requested immediate termination without considering the tenant’s ability to pay.
- The landlord did not provide evidence that the arrears were unmanageable or impossible to clear.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The Tenancy Tribunal granted a conditional termination order allowing the tenant to clear rent arrears over time.
What was the dispute about?
The dispute was about whether the tenant should be allowed to continue renting while clearing substantial rent arrears.
How did the court decide, and why?
The court decided to grant a conditional termination order because the tenant had been making progress in paying off the arrears and showed a willingness to continue doing so.
Which laws or rules were applied?
The Residential Tenancies Act 1986, sections 55(1)(a) and 85(2) were applied.
What was the argument that mattered most?
The argument that mattered most was the tenant's ability to manage and clear the rent arrears over time.
Was the decision for or against the person who brought the case?
The decision was for the tenant who brought the case, allowing them to continue renting while clearing the arrears.
What does this mean for someone in a similar situation?
Someone in a similar situation might also receive a conditional termination order if they can show they are capable of managing and clearing their rent arrears.
What evidence or documents mattered?
The evidence that mattered included the tenant's history of making payments towards the arrears and their commitment to continue doing so.