Tenant Ordered to Pay Compensation for Failing to Vacate Premises
📌 In brief
The Tenancy Tribunal ordered the tenants to pay the landlord compensation for failing to vacate the premises on the agreed date, despite having given a valid notice to end the tenancy. The Tribunal ruled that the tenants were bound by their notice regardless of subsequent confusion over a new tenancy.
⚖️ Legal holding
A tenant is liable for compensation if they fail to vacate the premises on the agreed date despite having given a valid notice to end the tenancy.
📖 What the law says
This section outlines a tenant's responsibilities, including paying rent, keeping the premises clean, and notifying the landlord of damage. Crucially, it also states that when a tenancy ends, the tenant must leave the premises, remove their belongings, and leave the property in a reasonably clean and tidy condition.
Plain-English explanation — does not replace advice from a lawyer.
📖 Technical summary
The Tribunal ordered the tenants to pay the landlord compensation for failing to vacate the premises on the agreed date.
📜 Headnote Official document
The Tenancy Tribunal ordered the tenants to pay the landlord compensation for failing to vacate the premises on the agreed date, despite having given a valid notice to end the tenancy. The Tribunal ruled that the tenants were bound by their notice regardless of subsequent confusion over a new tenancy.
📚 Full judgment Official document
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[2025] NZTT 5134351
TENANCY TRIBUNAL AT REMOTE LOCATION | TE TARAIPIUNARA RETIHANGA
APPLICANT: [redacted]
Landlord
RESPONDENT: [redacted]
Tenant
TENANCY ADDRESS: [ADDRESS], [POSTCODE]
ORDER
1. [NAME] and [NAME] to pay [COMPANY] and [NAME] $2,297.00 from the bond, calculated as shown in table below.
Description Landlord Tenant Compensation -failure to vacate $2,270.00 Filing fee reimbursement $27.00 Total award $2,297.00 Bond $2,297.00 $103.00
2. The Bond Centre is to pay the bond of $2,400.00 (6413379-002) immediately apportioned as follows:
[COMPANY] As Agents For [NAME]: $2,297.00
[NAME] and [NAME]: $103.00
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Reasons:
1. Both parties attended the hearing. The landlord, [NAME], and the property manager, [NAME], both appeared.
2. The tenants, [NAME], had a tenancy of the premises commencing on 18 July 2023. On 6 September 2024, the landlord advised [NAME] that the property had been sold and they gave the tenants a 90 day notice to end the tenancy on 5 December 2024.
3. On 17 October 2024, [NAME], believing that they had found a new tenancy, gave the landlord a 28 day notice to end the tenancy on 14 November 2024. On 23 October the landlord, [NAME], arranged with the purchaser to bring the settlement date forward, relying on the notice issued by [NAME]. However, soon after 17 October the property manager for the new tenancy ([NAME]) told the tenants that they could not now have the tenancy. [NAME] therefore contacted [NAME] saying that they would not now be moving out on 14 November and purported to revoke their 28-day notice. [NAME] told the landlord they would not be moving out on 14 November, [NAME] negotiated with the purchaser to change the settlement date back to the original date in December. She was required to pay to the purchaser compensation of $2,270.00 to obtain their agreement to the change and [NAME] claims this sum from [NAME].
4. [NAME] claim that they should not be liable for the amount claimed because it was not their fault that they did not get the new tenancy and [NAME] verbally agreed to their request to revoke the 28 day notice. They also claim that they told [NAME] on 18 October that they would not be moving out on 14 [NAME] failed to pass this information onto [NAME]. They claim that had she done so, [NAME] would not have negotiated the bringing forward of the settlement date on 23 October and therefore would not have incurred the costs claimed.
5. I accept that [NAME] were likely let down by [NAME] regarding their success at obtaining the new tenancy. However, they issued a legitimate notice to end the tenancy and they are bound by that notice regardless of whether they are at fault for the confusion regarding the new tenancy. I am not satisfied that [NAME] have provided sufficient evidence to establish that [NAME] agreed to their request to revoke the notice. [NAME] denies that she did so and there is nothing in any of the written communications between [NAME] and [NAME] which refers to any such agreement.
6. As mentioned, [NAME] claim that they phoned [NAME] the day after the notice was issued to say that they had not got the new tenancy and would not be moving out on 14 [NAME] neglected to pass this information onto [NAME]. [NAME] again denies that the conversation took place on 18 October and says that it took place was after [NAME] had
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agreed with the purchaser to bring the settlement date forward based on 28 day notice issued by [NAME].
7. I find that it is more likely than not that the conversation did take place after 18 October, probably on 23 October. I find support in my view by [NAME]’s 23 October email in which she states:
“I am writing to acknowledge receipt of our phone call today in which you informed us of your decision not to vacate the property on the date specified in your initial notice of intent to move out”.
8. [NAME] then goes on to explain that arrangements have been made based on the 14 November move out date and changing the date will have “implications on all parties involved”.
9. I also find support from [NAME]’s evidence. She said that she spoke to [NAME] several times between 17 October and 23 October and no mention was made of [NAME]’s intention to not move out on 14 November.
10.
I therefore find that the notice issued by [NAME] to end the tenancy on 14 November is a valid and enforceable notice to end the tenancy on that date. This means that they are in breach of section 40(1)(e)(i) of the Residential Tenancies Act 1986 by failing to move out of the premises on 14 November. [NAME] has suffered loss as a result of the breach by having to pay compensation to the purchaser because she could not give vacant possession on settlement date.
I therefore find [NAME] liable to compensate [NAME] for the loss she has suffered.
11. The landlord has been successful in her claim and is therefore entitled to payment of the Tribunal application fee.
[NAME]
13 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 tenants issued a legitimate notice to end the tenancy on a specific date.
- The landlord suffered a financial loss due to the tenants' failure to vacate on the agreed date.
- The property manager did not confirm the tenants' request to revoke the notice of termination.
- The conversation where the tenants informed the property manager they wouldn't vacate on the agreed date likely occurred after the settlement date was set.
❌ Tends to be rejected
- The tenants claim they should not be liable because they were not at fault for not getting the new tenancy.
- The tenants argue that the property manager verbally agreed to their request to revoke the notice.
- The tenants assert that the property manager failed to pass on the information that they would not vacate on the agreed date.
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 tenants to pay the landlord compensation for failing to vacate the premises on the agreed date.
What was the dispute about?
The dispute was about whether the tenants were liable for compensation for failing to vacate the premises on the agreed date despite having given a valid notice to end the tenancy.
How did the court decide, and why?
The court decided that the tenants were liable for compensation because they were bound by their notice to vacate the premises on the agreed date, regardless of subsequent confusion over a new tenancy.
Which laws or rules were applied?
The Residential Tenancies Act 1986, section 40(1)(e)(i) was applied.
What was the argument that mattered most?
The argument that mattered most was that the tenants were bound by their notice to vacate the premises on the agreed date, regardless of subsequent confusion over a new tenancy.
Was the decision for or against the person who brought the case?
The decision was against the tenants who brought the case.
What does this mean for someone in a similar situation?
For someone in a similar situation, if they give a valid notice to end the tenancy, they are bound by that notice regardless of subsequent confusion over a new tenancy.
What evidence or documents mattered?
The evidence and documents that mattered included the notice to end the tenancy, the communication between the tenants and the landlord, and the compensation paid to the purchaser for changing the settlement date.