Tenant Ordered to Pay Rent Arrears and Break Lease Costs
📌 In brief
The Tenancy Tribunal ruled that a tenant must pay rent arrears and costs related to breaking a fixed-term lease agreement. The tenant had tried to cancel the agreement early but was still required to pay for the full term of the lease.
⚖️ Legal holding
A tenant is obligated to pay rent for the full fixed term of the tenancy agreement.
📖 Technical summary
The Tenancy Tribunal ordered the tenant to pay rent arrears and break lease costs.
📜 Headnote Official document
The Tenancy Tribunal ordered the tenant to pay rent arrears and costs associated with breaking a fixed-term lease agreement. The tenant had requested to cancel the agreement early, but was still held responsible for the full term of the lease.
📚 Full judgment Official document
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[2025] NZTT 5205311
TENANCY TRIBUNAL AT CHRISTCHURCH | TE TARAIPIUNARA RETIHANGA KI ŌTAUTAHI
APPLICANT: [redacted]
Landlord
RESPONDENT: [redacted]
Tenant
TENANCY ADDRESS: Unit/[ADDRESS], [POSTCODE]
ORDER
1. [NAME] and [NAME] must pay [COMPANY] - As Agent For [COMPANY] $954.86 immediately, calculated as shown in table below.
Description Landlord Tenant Rent arrears $552.86 Break lease costs $375.00 Filing fee reimbursement $27.00 Total award $954.86 Total payable by Tenant to Landlord $954.86
Reasons:
1. Both parties attended the video hearing.
2. [NAME] and [NAME] attended on behalf of the landlord.
3. [NAME] attended on behalf of the tenants.
4. The landlord has applied for rent arrears, compensation and reimbursement of the filing fee following the end of the tenancy.
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5. The tenants entered into a tenancy agreement for the property which was signed by all parties by 20 January 2025.
6. The tenancy was to begin on 20 February 2025 and was for a fixed term to 20 February 2026.
7. On 5 February 2025 the tenant advised the landlord that they wished to, “formally request the cancellation of [our] tenancy agreement.”
8. The landlord responded on 7 February 2025 (6 February being Waitangi Day holiday) outlining the requirements for breaking a fixed term lease. These included rent until a new tenant is secured and all costs associated with advertising, finding and approving a new tenant and all administration costs relating to the same.
9. The tenant responded (after hours) on the same date having eventually accepted the landlord’s terms.
10. The landlord then set the advertising in motion on 10 February 2025 being the next working day after receipt of the tenants’ agreement to proceed.
11. After some technical issues with the advertising going live (due to the recency of the previous marketing of the same property) the property was advertised for rent on 12 February 2025.
12. On the same date the tenant advised that they no longer agreed to the break lease terms and did not think they should be liable for any rent on the basis that they had not moved into the tenancy premises.
13. Despite this, the landlord continued to market the property and secured new tenants from 1 March 2025.
14. The tenant accepted the claim for the costs associated with breaking the fixed term, being $375.00 and this amount is ordered by consent.
15. The landlord claims rent from the start date of the tenancy being 20 February to 28 February, being nine days.
How much is owed for rent?
16. The landlord provided rent records which prove the amount owing at 28 February 2025, being $552.86.
17. I accept that the tenant genuinely believed they had no choice but to end the agreement and that they did everything they could to minimise the loss.
18. Nevertheless, the tenant signed a legally binding agreement to pay the landlord rent for the premises for the entire fixed term and they were obliged to do so.
19. The landlord offered the tenant release from those obligations under certain conditions which the tenant, initially at least, accepted.
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20. The tenant, having signed a fixed term agreement to 20 February 2026, is liable for rent as claimed.
21. The amount ordered is proved.
22. As [COMPANY] - As Agent For [COMPANY] has wholly succeeded with the claim I must reimburse the filing fee.
S Steele
22 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.
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 tenant signed a legally binding agreement to pay rent for the entire fixed term.
- The landlord provided proof of the exact amount of rent arrears.
- The tenant accepted liability for the costs associated with breaking the fixed-term lease.
❌ Tends to be rejected
- The tenant argued they should not be liable for rent because they did not move into the premises.
- The tenant claimed they had no choice but to end the agreement and tried to minimize the loss.
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 tenant to pay rent arrears and costs associated with breaking a fixed-term lease agreement.
What was the dispute about?
The dispute was about whether the tenant was responsible for paying rent arrears and break lease costs despite requesting to cancel the agreement early.
How did the court decide, and why?
The court decided that the tenant was obligated to pay rent for the full fixed term of the tenancy agreement because they had signed a legally binding contract.
Which laws or rules were applied?
No specific laws or rules were cited in the judgment.
What was the argument that mattered most?
The most important argument was that the tenant had signed a legally binding agreement to pay rent for the entire fixed term.
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 expect to be held responsible for paying rent for the full term of their lease agreement, even if they try to cancel it early.
What evidence or documents mattered?
The judgment mentions rent records provided by the landlord which proved the amount owing.