Tenant's Request to Reduce Fixed-Term Tenancy Denied
📌 In brief
The Tenancy Tribunal denied a tenant's request to reduce their fixed-term tenancy due to relocating for work and experiencing financial strain. The Tribunal found that the change in circumstances was not unforeseen and would not cause severe hardship.
⚖️ Legal holding
A tenant cannot have their fixed-term tenancy reduced if the change in circumstances was not unforeseen and would not cause severe hardship.
📖 What the law says
This rule allows the Tenancy Tribunal to shorten a fixed-term tenancy if a tenant applies and shows that an unforeseen change in their situation would cause them severe hardship. The Tribunal must also be satisfied that this hardship would be greater than any hardship the other party (the landlord) would face if the tenancy were shortened.
Plain-English explanation — does not replace advice from a lawyer.
📖 Technical summary
The Tribunal dismissed the tenant's application to reduce a fixed-term tenancy due to relocation for work and financial strain.
📜 Headnote Official document
The Tenancy Tribunal dismissed a tenant's application to reduce a fixed-term tenancy due to relocation for work and financial strain, finding that the change in circumstances was not unforeseen and would not cause severe hardship.
📚 Full judgment Official document
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[2025] NZTT 5145550
TENANCY TRIBUNAL - [Event location suppressed]
APPLICANT: [redacted]
Tenant
RESPONDENT: [redacted] For [NAME]
Landlord
TENANCY ADDRESS: [ADDRESS], [POSTCODE]
ORDER
1. The application for the reduction of a fixed term is dismissed.
2. [COMPANY] - As Agent For [NAME] must pay [The tenant/s] $0.00 immediately.
Reasons:
1. Both parties attended the hearing by telephone. [NAME] appeared on behalf of the other tenant, [NAME] who was unavailable. [NAME] and [NAME] attended as the property manager and business owner respectively.
2. The tenancy began on 24 March 2023 for a fixed term until 24 March 2024. On 13 February 2024, the tenancy was renewed for another fixed term to end on 23 March 2025.
3. The tenant has applied for reduction of the fixed-term tenancy due to end on 23 March 2025.
4. 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
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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.
5. The tenant said that they had to relocate to Ashburton because of her partners job and had to rent another property and that she has had trouble finding regular work. They were paying rent for two premises up until the 23 January 2025, and it is a financial strain.
6. The tenant contacted the landlord on the 22 November 2024 asking to end the fixed term tenancy. The landlord replied with an email containing lease break application conditions. These included to make a request in writing, pay all reasonable charges of the landlord and to continue to pay rent until a final rent day is agreed upon in writing. It also gave a list of relevant charges that may be charged and an estimate of costs.
7. The tenant replied on 18 December 2024 confirming that they would like to go ahead with the lease break.
8. The tenant moved out of the premises on 27 December 2024.
9. The tenant advertised the premises as did the landlord. The process was delayed due to the Christmas break closure of the landlord’s office, and the tenant was made aware of this.
10. A new tenancy is to start on 28 March 2025.
11. The tenant asked for the landlord to use the bond to pay rent owed and believed that because a new rental agreement has been signed that they do not have to continue to pay the rent.
12. The landlords oppose the reduction of the fixed term saying that it was the tenant’s choice to move out early and they are liable for the rent to the end of the fixed term. The tenants were given all the information of the procedure and costs and chose to go ahead with the lease break.
13. A fixed term tenancy cannot be ended by giving notice and a tenant is liable for payment of the rent until the end of the term or until a new tenancy begins.
14. I find that the moving to another city for work is not an unforeseen change in circumstances, it was a choice. There was no evidence provided supporting that this was unforeseen.
15. This claim is dismissed.
16. [The tenant/s] claims the landlord has not ensured the tenancy agreement included a statement, made and signed by the landlord, whether or not there was any insulation and the details of it, and did not include a statement that on and after the commencement of the tenancy the landlord will comply with the healthy homes standards as required by section 45 or as the case may be.
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17. A landlord must ensure the tenancy agreement includes these statements. See section 13(1A),(1CA) Residential Tenancies Act 1986.
18. Breaching this obligation is an unlawful act, for which the Tribunal may award exemplary damages up to a maximum of $750.00. See section 13(1F) and Schedule 1A Residential Tenancies Act 1986.
19. The landlord agreed that they did not provide these statements. I find they have committed an unlawful act.
20. Where a party has committed an unlawful act intentionally, the Tribunal may award exemplary damages where it is satisfied that it would be just to do so, having regard to the party’s intent, the effect of the unlawful act, the interests of the other party, and the public interest. See section 109(3) Residential Tenancies Act 1986.
21. The landlord said that this was an oversite and would have produced the information upon request. The document attached to the tenancy agreement and renewal had written over the healthy homes standards level of compliance that “will be provided shortly”. The landlord failed to follow this up. This is important information for tenants to have and find it in these circumstances to make an award of $250.00.
22. The tenant was successful, so the filling fee is reimbursed, and name suppression granted as requested on the application.
T Harris 17 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.
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 landlord failed to provide important statements about insulation and healthy homes standards, leading to an award of $250.00.
❌ Tends to be rejected
- The tenant's choice to move to another city for work was not considered an unforeseen change in circumstances.
- The tenant's financial strain from paying rent for two premises was not deemed severe hardship.
- The tenant's belief that they did not need to continue paying rent once a new rental agreement was signed was rejected.
- The tenant's request to use the bond to pay rent owed was denied.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The Tenancy Tribunal denied the tenant's request to reduce their fixed-term tenancy.
What was the dispute about?
The tenant wanted to reduce their fixed-term tenancy due to relocating for work and experiencing financial strain.
How did the court decide, and why?
The court decided that the tenant's circumstances were not unforeseen and would not cause severe hardship, thus denying the request.
Which laws or rules were applied?
The Residential Tenancies Act 1986, section 66(1) was applied.
What was the argument that mattered most?
The argument that mattered most was that the tenant's change in circumstances was not unforeseen and would not cause severe hardship.
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 may not succeed in reducing their fixed-term tenancy if the change in circumstances is not unforeseen and would not cause severe hardship.
What evidence or documents mattered?
The judgment does not specify the exact evidence or documents that mattered.