Tenant Ordered to Pay Rent Arrears but Break Fee Claim Rejected
📌 In brief
The Tenancy Tribunal ruled that the tenant must pay rent arrears to the landlord but dismissed claims for break fee costs and other expenses due to insufficient evidence and the landlord's failure to mitigate losses.
⚖️ Legal holding
A tenant is liable for rent arrears during a fixed-term tenancy but the landlord must mitigate losses by finding new tenants.
📖 What the law says
This rule means that if a tenant breaks their tenancy agreement or the Act, the landlord must take all reasonable steps to reduce any financial harm or loss caused by that breach. This is similar to general contract law where parties must try to limit their losses.
This rule allows a tenant in a fixed-term tenancy to ask the Tenancy Tribunal to shorten their tenancy. The Tribunal can do this if it's convinced that an unexpected change in the tenant's situation would cause them severe hardship, and this hardship would be greater than any hardship the landlord would face if the tenancy were shortened.
Plain-English explanation — does not replace advice from a lawyer.
📖 Technical summary
The claimant sought rent arrears and other costs from the respondent who had broken a fixed-term tenancy. The Tribunal awarded rent arrears but dismissed claims for break fee costs and other expenses.
📜 Headnote Official document
The Tenancy Tribunal ordered the tenant to pay rent arrears to the landlord but dismissed claims for break fee costs and other expenses due to insufficient evidence and the landlord's failure to mitigate losses.
📚 Full judgment Official document
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[2025] NZTT 5115328
TENANCY TRIBUNAL AT REMOTE LOCATION | TE TARAIPIUNARA RETIHANGA
APPLICANT: [redacted]
Landlord
RESPONDENT: [redacted]
Tenant
TENANCY ADDRESS: Unit/[ADDRESS], [POSTCODE]
ORDER
1. [NAME] must pay [COMPANY] As Agent For [NAME] $4,412.91 immediately, calculated as shown in the table below:
Description Landlord Tenant Rent arrears to 11 February 2025 $5,785.71 Lawns and Garden work $200.00 Rubbish removal $138.00 Lock/key replacement $262.20 Filing fee reimbursement $27.00 Total award $6,412.91 Bond $2,000.00 Total payable by Tenant to Landlord $4,412.91
2. The Bond Centre is to pay the bond of $2,000.00 (3187258-014) to [COMPANY] As Agent For [NAME] immediately.
3. The landlord’s application for compensation for reimbursement of “break fee costs” is dismissed.
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Reasons:
1. Both parties attended the hearing.
2. The landlord has applied for rent to 10 February 2025, compensation for costs associated with the tenant breaking the fixed term and replacement of locks and the filing fee.
Does the tenant owe rent and, if so, how much?
3. The tenancy is a fixed-term tenancy with an end date of 12 July 2025. In November 2024, the tenant sent an email to the landlord giving notice that she wished to terminate the tenancy with effect from 11 December 2024. The landlord responded advising that it was a fixed term tenancy so it could not be terminated on notice. The landlord went on to say that they would try to find new tenants. The landlord also advised the tenant that she would be responsible for the rent until the earlier of the date the new tenants moved in or the end date of the tenancy and other costs including advertisings, property viewings etc.
4. The tenant vacated the premises on 11 December 2024.
5. The tenant says she vacated the premises because there were issues with mould and dampness in the premises which were making her sick. The tenant has not lodged a counter claim for these matters or a claim to the Tribunal to reduce the term of the fixed term tenancy under section 66 of the Residential Tenancies Act 1986 (RTA). During the hearing, the tenant was given the opportunity for the hearing to be adjourned for a period of time to allow her to lodge these claims. However, the tenant said she did not wish to do so.
6. The landlord said that the premises were advertised in November 2024 and from 22 November 2024 until 05 February 2025 there were around 12 viewings of the premises. The new tenants moved in on 12 February 2025.
7. The landlord is claiming rent arrears to 11 February 2025.
8. A fixed-term tenancy is a tenancy for a fixed term which cannot be terminated by notice before the end of the term, except as provided for in the RTA or by agreement between the parties. Under a fixed term tenancy, a tenant is liable for rent for the duration of the fixed term. This is subject to the landlord’s duty to mitigate its losses by finding other tenants. I am satisfied that the landlord took reasonable steps to mitigate its losses in respect of rent.
9. This claim for rent arrears is proved and rent is awarded to 10 February 2025.
Does the tenant owe the landlord other costs associated with the tenant breaking the fixed term?
10. The landlord is claiming $494.50 (including GST) for a fee to tidy up the garden:
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lawn mowing, weed spraying, hedges trimming and remove rubbish from bins prior to the new tenants moving in. The landlord has provided an invoice to support this claim.
11. The tenant says when she vacated the premises in December, the gardens were clean and tidy. The landlord does not dispute this but says the tenant is responsible for these costs because they are related to her breaking the fixed term.
12. I find that there were costs incurred in maintaining the garden which are directly related to the tenant breaking the fixed term. However, I am not satisfied that these costs were reasonable. Section 49 of the RTA provides that where a party breaches a provision of the tenancy agreement or the RTA, the other party “shall take all reasonable steps to limit the damage or loss arising from that breach …”
13. I am of the view that the landlord could have mitigated these losses by having maintenance garden work performed on a regular basis. I consider the amount charged to be excessive and award $200 (inclusive of GST).
14. The landlord has also claimed $250 for costs associated with breaking the fixed tern including advertising, fees charged to conduct viewings etc. As the applicant for this claim, the landlord has the burden of proof. I have not been provided with any proof such as invoices that the landlord incurred these costs (and, for this reason, I dismiss this claim.
Did the tenant comply with their obligations at the end of the tenancy?
15. Section 40(1)(e)(ii)-(v) of the Residential Tenancies Act 1986 (RTA) provides that at the end of the tenancy the tenant must leave the premises reasonably clean and tidy, remove all rubbish, return all keys and security devices, and leave all chattels provided for their benefit.
16. The tenant did not remove all rubbish and did not return the keys.
17. The amounts ordered are proved.
Filing fee:
18. [COMPANY] As Agent For [NAME] has substantially succeeded with the claim. For this reason, I have ordered reimbursement of the filing fee.
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K Henry
27 February 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 tenant owes rent for the duration of the fixed term as the landlord took reasonable steps to find new tenants.
- The landlord is entitled to $200 for lawn and garden work as it was deemed reasonable by the court.
- The tenant is responsible for leaving the premises reasonably clean and tidy, removing all rubbish, and returning all keys.
❌ Tends to be rejected
- The tenant's claim about mould and dampness issues was not pursued, thus not reducing the rent arrears.
- The landlord's claim for $250 in costs associated with breaking the fixed term was dismissed due to lack of proof.
- The landlord's request for a "break fee" compensation was dismissed.
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 to the landlord but claims for break fee costs and other expenses were dismissed.
What was the dispute about?
The landlord claimed rent arrears and other costs from the tenant who had broken a fixed-term tenancy agreement.
How did the court decide, and why?
The court decided that the tenant owed rent arrears but dismissed claims for break fee costs and other expenses because the landlord failed to provide sufficient evidence and did not adequately mitigate losses.
Which laws or rules were applied?
The Residential Tenancies Act 1986, sections 49 and 66 were applied.
What was the argument that mattered most?
The most important argument was that the landlord had not taken reasonable steps to mitigate losses by finding new tenants.
Was the decision for or against the person who brought the case?
The decision was partly for and partly against the landlord who brought the case.
What does this mean for someone in a similar situation?
Someone in a similar situation should ensure they have strong evidence and have taken reasonable steps to mitigate losses if they want to succeed in a similar claim.
What evidence or documents mattered?
The evidence that mattered included invoices for garden maintenance and advertising costs, but the landlord did not provide sufficient proof of these expenses.