Tenant ordered to pay rent and costs for terminating fixed-term agreement
📌 In brief
The Tenancy Tribunal ruled that a tenant must pay rent and costs related to finding a new tenant after prematurely terminating a fixed-term agreement. Despite claiming stress at the time of signing, the Tribunal upheld the agreement's terms.
⚖️ Legal holding
A tenant is liable for rent until the end of the fixed term or until a new tenancy starts, whichever is earlier, unless they successfully apply under section 60 of the Residential Tenancies Act 1986.
📖 Technical summary
The claimant was ordered to pay rent and costs for finding a replacement tenant under a fixed-term tenancy agreement.
📜 Headnote Official document
The Tenancy Tribunal ordered the tenant to pay rent and costs associated with finding a replacement tenant under a fixed-term agreement. The tenant argued that they were under undue stress when entering the agreement, but the Tribunal found the tenant bound by the agreement's terms.
📚 Full judgment Official document
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[2025] NZTT 5176717
TENANCY TRIBUNAL AT REMOTE LOCATION | TE TARAIPIUNARA RETIHANGA
APPLICANT: [redacted]
Landlord
RESPONDENT: [redacted]
Tenant
TENANCY ADDRESS: [ADDRESS], [POSTCODE]
ORDER
1. [NAME] must pay [COMPANY] As Agent For [NAME] $2,930.92 immediately, calculated as shown in table below:
Description Landlord Rent to 13 March 2025 $2,370.00 Break Lease Charges $533.92 Filing fee reimbursement $27.00 Total award $2,930.92 Total payable by Tenant to Landlord $2,930.92
Reasons:
1. Both parties attended the hearing.
2. The landlord has applied for rent under a fixed term tenancy agreement and break lease charges.The tenancy agreement is dated 4 February 2025. The agreement includes a supplementary page that clearly outlines that the tenancy is for a fixed term and explains the tenant’s rights and obligations under a fixed term tenancy.1 The tenancy was due to start on 21 February 2025.
1 A tenant is liable for rent to the end of the fixed term or until a new tenancy starts, whichever is earlier unless the tenant makes a successful application under s60 RTA. This tenant did not make an application under s60.
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3. On the evening of 13 February 2025, the tenant advised the landlord that the property was not going to be affordable for her and that she would like to terminate the agreement.
4. The landlord immediately took steps to find a new tenant, including contacting previous applicants, readvertising the property, and assessing new applicants. A new tenancy agreement was signed on 21 February, and that tenancy started on 14 March 2025.
5. The landlord seeks the three weeks rent from 21 February to 13 March 2025 and costs associated with finding a replacement tenant.
6. Ms [NAME] explained that she was under a lot of stress when she entered into the tenancy agreement. She provided evidence from a [NAME] to the effect that Ms [NAME] “was not herself” following a recent weather event. [NAME]’s qualifications and expertise are not evident from her letter.
7. I accept that Ms [NAME] experienced a difficult and possibly traumatic weather event on 29 January 2025. However, there is no evidence from a suitably qualified medical practitioner to the effect that Ms [NAME] was legally incapacitated or unable to enter into a binding leal agreement on 4 February 2025. I also note that she had not done any due diligence regarding the financial support she would receive or the affordability of premises before the weather event on 29 January 2025.
8. I find that Ms [NAME] is bound by the terms of the legal agreement she signed on 4 February 2025. As a result of that the landlord is entitled to rent until a new tenancy started and costs associated with finding alternative tenants. The landlord provided records which prove the amount owing.
9. As the landlord was the successful party, I also award reimbursement of the Tribunal application fee.
[NAME]
27 May 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 landlord was entitled to rent and costs because the tenant was bound by the fixed-term agreement.
- The landlord acted quickly to find a new tenant after the original tenant wanted to terminate the agreement.
- The landlord provided records that proved the amount of rent and costs owed.
- The landlord was reimbursed for the application fee because they were the successful party.
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 rent and costs associated with finding a replacement tenant.
What was the dispute about?
The dispute was over whether the tenant was liable for rent and costs after prematurely terminating a fixed-term agreement.
How did the court decide, and why?
The court decided that the tenant was liable for rent and costs because they did not provide sufficient evidence of incapacity to enter a binding agreement.
Which laws or rules were applied?
The Residential Tenancies Act 1986, specifically section 54, was applied.
What was the argument that mattered most?
The argument that mattered most was the tenant's claim that they were under undue stress and not in a position to enter a binding agreement.
Was the decision for or against the person who brought the case?
The decision was against the tenant who brought the case.
What does this mean for someone in a similar situation?
Someone in a similar situation should ensure they have adequate evidence if they wish to terminate a fixed-term agreement early.
What evidence or documents mattered?
The evidence of the tenant's stress and the signed tenancy agreement were the key documents considered.