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Tenant's Tenancy Terminated for Rent Arrears Over 21 Days

Case No.

📌 In brief

The Tenancy Tribunal ended a tenant's lease because they were behind on rent payments for over 21 days. The bond was used to cover the rent arrears.

⚖️ Legal holding

A tenant is entitled to have their bond applied towards rent arrears if they are in arrears.

Topics

rent arrearstermination of tenancy

Provisions

📖 What the law says

Residential Tenancies Act 1986 s.55

This section states that the Tenancy Tribunal must end a tenancy if a landlord applies and the rent was at least 21 days overdue when the application was made. It also allows for termination if the tenant has caused or threatened significant damage to the property, or has assaulted or threatened the landlord or their family/agent/other occupiers.

Plain-English explanation — does not replace advice from a lawyer.

📖 Technical summary

The tenancy was terminated due to rent arrears and possession was granted to the landlord.

📜 Headnote Official document

The Tenancy Tribunal terminated the tenancy of a tenant due to rent arrears exceeding 21 days. The bond was applied towards the rent arrears.

📚 Full judgment Official document

__________________________________________________________________________________ 5138134 1

[2025] NZTT 5138134

TENANCY TRIBUNAL - Tauranga | Tauranga Moana

APPLICANT: [redacted]

Landlord

RESPONDENT: [redacted]

Tenants

TENANCY ADDRESS: [ADDRESS], Oropi, RD 3, Tauranga 3173

ORDER

1. The tenancy of [NAME] at [ADDRESS], Oropi, RD 3, Tauranga 3173 is terminated, and possession is granted to [COMPANY] As Agent For [NAME], at 11.59pm on Tuesday 11 February 2025..

2. The Bond Centre is to pay the bond of $1,840.00 (5891170-005) to [COMPANY] As Agent For [NAME] immediately.

3. [NAME] must pay [COMPANY] As Agent For [NAME] $1,529.14 immediately, calculated as shown in the table below:

Description Landlord Tenant Rent arrears as at 7 December 2024 $1,664.28 Rent 8 Dec 2024 to 19 January2025 to 11 February 2025 $30.71 Rent 20 January 2025 to 11 February 2025 $1,708.57 Filing fee reimbursement $27.00 Total award $3,399.85 $30.71 Net award $3,369.14 Bond $1,840.00 Total payable by Tenant to Landlord $1,529.14

__________________________________________________________________________________ 5138134 2

Reasons:

1. This was an application made by the landlord against the three abovenamed tenants. At the start of the scheduled hearing none of the tenants appeared and the hearing went ahead in their absence.

2. After the hearing had concluded it was discovered that [NAME] had inadvertently gone to the wrong waiting area and that she was in fact wanting to attend the hearing.

3. I rang the landlord who agreed that the hearing could be re-conducted with the landlord on the phone.

4. With regards to the application to terminate the tenancy, the rent was more than 21 days in arrears and so the tenancy is terminated immediately, as per the provisions of s55(1)(a) of the Residential Tenancies Act 1986 (RTA).

5. What was more problematic at today’s hearing was to determine who owes how much in rent arrears.

6. [NAME] was added to the tenancy on 8 December 2024. Prior to this date [NAME] and [NAME] had rented the premises together.

7. [NAME] and [NAME] are therefore jointly and severally liable for rent arrears as at 7 December 2024. This was established as being $1,664.28.

8. [NAME] sent a notice of termination on 23 December 2024 advising that the tenancy would terminate on 19 January 2024. Both she and [NAME] had vacated the tenancy by this date. For this period the rent was in credit by $30.71.

9. [NAME] alone remained in the tenancy and did not vacate as per the notice of termination. She is therefore solely responsible for rent owing for the period 20 January 2025 to today’s date. Taking into account the credit as per the above paragraph, the amount of arrears for that period is $1,677.86.

10. At today’s hearing [NAME] stated that $1,040.00 paid by WINZ on 6 January 2025 was her bond payment and that therefore that amount should be applied to her arrears.

11. However I am satisfied that this was not a bond payment. I say this because I accept that the landlord did not require a bond from her. Had they required a further $1,040.00 in bond this would have put the bond paid for these premises beyond the 4 weeks’ rent maximum allowable for a bond.

12. As a result of these findings, I consider it appropriate that the bond of $1,840.00 covers the rent arrears owed by [NAME] and [NAME], as per paragraph 7 above.

13. The remainder of the bond covers a small amount of the rent arrears owed by [NAME].

__________________________________________________________________________________ 5138134 3

14. I am also ordering reimbursement of the filing fee to the landlord because the landlord was wholly successful with their claim.

15. I note that only [NAME]’s tenancy was terminated by way of this Order today because [NAME] and [NAME] have already vacated the premises as per the notice of termination dated 23 December 2024.

C ter Haar

11 February 2025

__________________________________________________________________________________ 5138134 4

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/

__________________________________________________________________________________ 5138134 5

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's rent was more than 21 days in arrears, allowing the landlord to terminate the tenancy immediately.
  • The bond can be applied towards rent arrears if the tenant is in arrears.

❌ Tends to be rejected

  • The payment of $1,040.00 made by WINZ on January 6, 2025, was not recognized as a bond payment and therefore could not be applied to the rent arrears.

Patterns observed in similar cases in this collection — every case is unique.

❓ Frequently asked questions

What did this decision decide?

The tenancy was terminated and possession was granted to the landlord due to rent arrears over 21 days.

What was the dispute about?

The dispute was about whether the tenant's arrears justified terminating the tenancy.

How did the court decide, and why?

The court decided to terminate the tenancy because the rent was more than 21 days in arrears, as per the Residential Tenancies Act 1986.

Which laws or rules were applied?

The Residential Tenancies Act 1986, section 55(1)(a) was applied.

What was the argument that mattered most?

The argument that mattered most was that the rent was more than 21 days in arrears, which justified terminating the tenancy.

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?

For someone in a similar situation, if rent arrears exceed 21 days, the tenancy can be terminated.

What evidence or documents mattered?

The evidence included the rent arrears and the notice of termination sent by the landlord.

Official source: Tenancy Tribunal headnote and full judgment reproduced from the court's public records. View on the official source ↗Summary, holding, technical summary and questions: produced by Artificial Intelligence based on the official headnote and judgment. These are VadeLab’s own material and are not the work of the Court.This decision was issued by the Tenancy Tribunal and is reproduced from its published records. VadeLab is not affiliated with, and this page is not endorsed by, that court or tribunal.
Tenant's Tenancy Terminated Due to Rent Arrears - Tenancy | VadeLab