Tenant Ordered to Pay Rent Arrears and Compensate Landlord
📌 In brief
The Tenancy Tribunal ruled that the tenant must pay rent arrears and compensate the landlord for damages incurred at the end of the tenancy. The request to reduce the fixed-term tenancy was dismissed.
⚖️ Legal holding
A tenant must pay rent arrears and compensate the landlord for damages incurred at the end of the tenancy.
📖 What the law says
This section outlines a tenant's responsibilities, including paying rent on time, keeping the property reasonably clean, and leaving it in good condition when moving out. In this case, the tenant was ordered to pay overdue rent and cover damages, indicating they did not meet these responsibilities.
This rule allows the Tenancy Tribunal to shorten a fixed-term tenancy if a tenant faces severe hardship due to unforeseen changes, and this hardship is greater than what the landlord would experience if the tenancy were shortened. The Tribunal dismissed the tenant's request to reduce the fixed-term tenancy, finding they did not meet the high standard required by this section.
Plain-English explanation — does not replace advice from a lawyer.
📖 Technical summary
The Tribunal ordered the tenant to pay rent arrears and compensate the landlord for damages, dismissing the tenant's request to reduce the fixed-term tenancy.
📜 Headnote Official document
The Tenancy Tribunal ordered the tenant to pay rent arrears and compensate the landlord for damages incurred at the end of the tenancy. The Tribunal dismissed the tenant's request to reduce the fixed-term tenancy, finding that the tenant did not meet the high threshold required under the Residential Tenancies Act 1986.
📚 Full judgment Official document
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[2025] NZTT 5163872, 5241141
TENANCY TRIBUNAL AT REMOTE LOCATION | TE TARAIPIUNARA RETIHANGA
APPLICANT: [redacted]
Landlord
RESPONDENT: [redacted]
Tenant
TENANCY ADDRESS: [ADDRESS], [POSTCODE]
ORDER
1. [NAME] and [NAME] must pay [COMPANY] For [NAME] $2,774.14 immediately, calculated as shown in table below.
2. The Bond Centre is to pay the bond of $2,960.00 (5251379-018) to [COMPANY] For [NAME] immediately.
Description Landlord Tenant Rent arrears $5,437.14 Lawns and Garden work $70.00 Rubbish removal $200.00 Filing fee reimbursement $27.00 Total award $5,734.14 Bond $2,960.00 Total payable by Tenant to Landlord $2,774.14
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Reasons:
1. Both parties attended the video hearing.
2. The landlord has applied for rent arrears, compensation, refund of the bond, and reimbursement of the filing fee following the end of the tenancy. The tenant made applied to have the term of the fixed term tenancy reduced.
How much is owed for rent?
3. This was a fixed term tenancy due to end on 20 January 2025. On 9 November 2004 the tenant wrote to the landlord seeking to end the fixed term tenancy early. The landlord was only prepared to end the fixed term tenancy on the basis that a new tenant could be found and that the existing tenant would remain liable for all tenancy obligations through until that time. A new tenant was found and the new tenancy commenced on 23 December 2024. The landlord provided rent records which prove the amount owing at the end of the tenancy was $5,437.14.
Did the tenant comply with their obligations at the end of the tenancy?
4. At the end of the tenancy the tenant must leave the premises reasonably clean and tidy, remove all rubbish. See section 40(1)(e)(ii)-(v) Residential Tenancies Act 1986.
5. The tenant did not leave the premises reasonably clean and tidy, and did not remove all rubbish. Invoices were provided for the rubbish removal and lawns. The tenant accepted that these were reasonable.
6. The amounts ordered are proved.
Fixed term
7. The tenant has applied for reduction of the fixed-term tenancy due to end on 20 January 2025.
8. The Tribunal may reduce a fixed term tenancy where:
a. there has been an unforeseen change in the applicant’s circumstances; and
b. there would be severe hardship to the applicant if the term is not reduced; and
c. the applicant’s hardship would be greater than the hardship to the other party if the term is reduced. See section 66(1) Residential Tenancies Act 1986.
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9. The tenant said that she had become ill and as a result could not work. This meant that she was unable to pay the rent.
10. The usual legal position with a fixed-term contract is that the term of the contract will be applied strictly, and it is only in limited circumstances that a court or tribunal will interfere with it. For residential tenancies, one of those circumstances is found in s 66 Residential Tenancies Act 1986, which allows for the reduction of fixed term tenancy agreements.
11. There is a high threshold to be met before the Tribunal will reduce the term. In particular the applicant will need to establish that:
a. there has been a change in their circumstances
b. the change was unforeseen
c. the unforeseen change will result in severe hardship to the applicant if the tenancy is not reduced
d. the severe hardship the applicant will suffer if the term is not reduced exceeds the hardship the other party will suffer if the term is reduced.
12. Section 66(2) provides that, if the Tribunal reduces the term of the tenancy, it may order the applicant to pay reasonable compensation to the other party for any loss or damage which results from the reduction of the term.
13. The limited evidence provided by the parties is such that I am unable to say that the extreme hardship to the tenant, if I do not reduce the fixed term, will be greater than the hardship to the landlord, if I do reduce the fixed term. I record that even if this had been a periodic tenancy, the tenant would have been required to give a minimum of 28 days’ notice to terminate the tenancy. The application to reduce the fixed term tenancy is accordingly dismissed.
14. As [COMPANY] For [NAME] has wholly succeeded with the claim I must order the tenants to reimburse the filing fee.
S Young
23 April 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 proved the amount of rent owing at the end of the tenancy with rent records.
- The tenant did not leave the premises clean and tidy or remove all rubbish.
- The tenant agreed that the invoices for rubbish removal and lawn work were reasonable.
- The landlord was reimbursed for the filing fee because they fully succeeded with their claim.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The tenant must pay rent arrears and compensate the landlord for damages incurred at the end of the tenancy.
What was the dispute about?
The dispute was about the tenant's obligation to pay rent arrears and compensate the landlord for damages at the end of the fixed-term tenancy.
How did the court decide, and why?
The court decided that the tenant must pay the rent arrears and compensate the landlord because the tenant did not leave the premises reasonably clean and tidy, and did not remove all rubbish.
Which laws or rules were applied?
The Residential Tenancies Act 1986, sections 40 and 66 were applied.
What was the argument that mattered most?
The argument that mattered most was that the tenant did not meet the high threshold required to reduce the fixed-term tenancy under section 66 of the Residential Tenancies Act 1986.
Was the decision for or against the person who brought the case?
The decision was for the landlord who brought the case.
What does this mean for someone in a similar situation?
Someone in a similar situation should ensure they leave the premises reasonably clean and tidy and remove all rubbish at the end of the tenancy to avoid having to pay rent arrears and compensation.
What evidence or documents mattered?
The rent records and invoices for rubbish removal and lawn work were important pieces of evidence.