VadeLab
AllowedTenancy Tribunal·

Tenant Ordered to Pay $6,554.30 for Rent Arrears and Water Rates

Case No.

📌 In brief

The Tenancy Tribunal ruled that the tenant must pay the landlord $6,554.30 for unpaid rent and water rates. Claims for lost rent beyond the day before a new tenant moved in were dismissed.

⚖️ Legal holding

A tenant is required to pay rent arrears and water rates up to the day before a new tenant moves in, provided the landlord has mitigated losses.

Topics

rent arrearswater ratesmitigation of loss

Provisions

📖 Technical summary

The Tenancy Tribunal awarded the landlord $6,554.30 for unpaid rent and water rates, dismissing claims for lost rent beyond the day before the new tenant moved in.

📜 Headnote Official document

The Tenancy Tribunal ordered the tenant to pay the landlord $6,554.30 for rent arrears and water rates, dismissing claims for lost rent beyond the day before a new tenant moved in.

📚 Full judgment Official document

__________________________________________________________________________________ 5043409 1

[2025] NZTT 5043409

TENANCY TRIBUNAL AT REMOTE LOCATION | TE TARAIPIUNARA RETIHANGA

APPLICANT: [redacted]

Landlord

RESPONDENT: [redacted]

Tenant

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

ORDER

1. [NAME] and [NAME] must pay [NAME] and [NAME] $6,554.30 immediately, calculated as shown in the table below:

Description Landlord Tenant Rent arrears to 31.1.2024 $6,480.00 Water rates $47.30 Filing fee reimbursement $27.00 Total award $6,554.30 Total payable by Tenant to Landlord $6,554.30

Reasons:

1. Only the landlord attended the hearing. Multiple attempts were made to call the tenants, and on each occasion, the call either went to voicemail or did not connect. The hearing proceeded in the absence of the tenants.

2. This is a fixed term tenancy which commenced on 24 November 2023 and was due to end on 24 May 2024. The tenants left the premises before the end of the fixed term, having advised the landlord that they did not wish to continue with the

__________________________________________________________________________________ 5043409 2

tenancy. They paid rent up to 15 December 2023. The landlord advertised for new tenants, with the new tenancy commencing on 1 February 2024.

3. The landlord has applied for rent arrears to the day before the new tenant moved in, water charges and compensation for the loss of rent, being the reduced rent paid by the new tenant, which the landlord accepted, to mitigate loss. There is no bond, the landlord advising that no bond payment was received from the tenants.

4. At the hearing, the landlord provided oral evidence. The landlord also completed a detailed written statement, setting out the background facts.

How much is owed for rent and water rates?

5. In their written statement, the landlord has referred to the tenancy being abandoned. However, from the evidence provided, it seems more likely that the tenants have repudiated the contract. Where a tenant makes it clear to the landlord that they want to end the fixed term early, and they stop paying rent, this is a repudiation of the contract, but not necessarily abandonment.1 In this case, the tenants clearly signalled to the landlord their intention to leave, and there has been no order of the Tribunal terminating the tenancy for abandonment.

6. Where the tenancy has come to an end, but the tenancy has not been terminated on the basis of abandonment, the landlord will have a duty to mitigate loss. I am satisfied that the landlord has taken sufficient steps to mitigate loss, by advertising and seeking new tenants. In these circumstances, it is reasonable for the tenants to pay rent up to the day before the new tenant moved in.

7. Therefore, the tenants will be liable for rent up to 31 January 2024. The landlord provided rent records which show the amount due up to the end of the tenancy.

8. The landlord has also provided water rates invoices which prove the amount owing at the end of the tenancy.

Loss of rent

9. The landlord claims the difference in rent between what the tenants would have paid under the fixed term, to 24 May 2024, and the rent paid by the new tenant. The landlord states they had to reduce the rent to mitigate loss.

10. Acknowledging that the rent for the new tenant has been reduced, the landlord cannot expect to be compensated for the difference in rent until the date the fixed term ought to have ended. The loss of rent in these circumstances can be considered part and parcel of the business of being a landlord.

11. Accordingly, this claim is dismissed.

1 Oxygen.co.nz v Mundy [2020] NZTT 4225871

__________________________________________________________________________________ 5043409 3

Filing fee

12. As the landlord has been substantially successful, the tenants are to pay the landlord’s filing fee.

[NAME]

26 May 2025

__________________________________________________________________________________ 5043409 4

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.

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].

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/

Reasons:

⚖️ What tends to weigh in cases like this

✅ Tends to be accepted

  • The tenants clearly signaled their intention to leave the tenancy early.
  • The landlord advertised for new tenants and secured a new tenancy.
  • The landlord provided detailed rent records showing the amount due.
  • The landlord presented water rates invoices proving the amount owing.

❌ Tends to be rejected

  • The landlord claimed compensation for the difference in rent between the old and new tenants.
  • The landlord sought compensation for the entire duration of the fixed term ending on 24 May 2024.

Patterns observed in similar cases in this collection — every case is unique.

❓ Frequently asked questions

What did this decision decide?

The tenant was ordered to pay the landlord $6,554.30 for rent arrears and water rates.

What was the dispute about?

The landlord claimed rent arrears and water rates from the tenant, who had abandoned the tenancy early.

How did the court decide, and why?

The court decided that the tenant must pay rent arrears and water rates up to the day before a new tenant moved in, as the landlord had mitigated losses by advertising for new tenants.

Which laws or rules were applied?

The Residential Tenancies Act 1986, section 54, was applied.

What was the argument that mattered most?

The argument that mattered most was that the landlord had taken sufficient steps to mitigate losses by advertising for new tenants.

Was the decision for or against the person who brought the case?

The decision was for the landlord.

What does this mean for someone in a similar situation?

Someone in a similar situation should ensure they pay rent arrears and water rates up to the day before a new tenant moves in, if the landlord has mitigated losses.

What evidence or documents mattered?

The judgment mentions rent records and water rates invoices as evidence.

Official source: Tenancy Tribunal headnote and full judgment reproduced from the court's public records. View on the official source ↗Summary, holding, technical summary and questions: produced by Artificial Intelligence based on the official headnote and judgment. These are VadeLab’s own material and are not the work of the Court.This decision was issued by the Tenancy Tribunal and is reproduced from its published records. VadeLab is not affiliated with, and this page is not endorsed by, that court or tribunal.
Tenant Ordered to Pay Rent Arrears and Water Rates | VadeLab