Tenant Successfully Recovers Unpaid Levies and Costs
📌 In brief
In a recent Tenancy Tribunal case, a tenant successfully recovered unpaid levies and costs from the landlord. The ruling highlights the importance of timely payment of levies under the Residential Tenancies Act 1986.
⚖️ Legal holding
A tenant is entitled to recover unpaid levies and costs from the landlord.
📖 Technical summary
The claimant successfully recovered unpaid levies and costs from the respondent.
📜 Headnote Official document
The Tenancy Tribunal ruled in favour of the tenant, ordering the landlord to pay $3,830.59 for unpaid levies, interest, and costs. The decision was based on the landlord's failure to pay levies by the due date, as required by the Residential Tenancies Act 1986.
📚 Full judgment Official document
__________________________________________________________________________________ 9060784 1
[2025] NZTT 9060784
TENANCY TRIBUNAL AT REMOTE LOCATION | TE TARAIPIUNARA RETIHANGA
APPLICANT: [redacted]
RESPONDENT: [redacted] Owner
[NAME]: [NAME]/[ADDRESS], [POSTCODE]
ORDER
1. [COMPANY] must pay [NAME] $3,830.59 immediately, calculated as follows:
Descriptions Respondent
Outstanding Levies $1,422.09 Costs $1,908.50 Filing Fee $500.00 Total award $3,830.59
Reasons:
1. Both parties attended the hearing by video link.
2. The [NAME] has applied for recovery of unpaid levies, interest, costs and the filing fee from the [NAME].
Does the [NAME] owe the levies claimed?
3. A [NAME] must pay all [NAME] levies and outgoings payable for the [NAME]. See sections 80(1)(f) and 121(1) [NAME] Act 2010.
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4. The [NAME] has determined the levies payable and [NAME]'s share has been calculated according to their utility interest.
5. The [NAME] has fixed the due date for the levies to be paid, and the [NAME] has not paid the levies by that date. See section 124(1) [NAME] Act 2010.
6. The [NAME] has provided records to prove the amount claimed. The [NAME] provided evidence of the outstanding levies by way of a running total summary or statement of all charges the [NAME] says are owing by the [NAME]. This was, in part, because the [NAME] has made a series of “round figure” payments to the [NAME]. However, it meant that the actual levies outstanding were not as clearly and concisely identifiable as they should have been. In future, it would assist the Tribunal if the [NAME] provided clearer evidence in relation to outstanding levies. That said, I am satisfied, having reviewed the spreadsheet, that the [NAME] has proved its claim for outstanding levies.
Is the [NAME] liable for interest?
7. If a [NAME] fails to pay levies by the due date, interest accrues on the unpaid balance. A [NAME] may charge interest up to 10% per annum. See section 128 [NAME] Act 2010.
8. The [NAME] has resolved to charge interest at 10% per annum on unpaid levies. However, the [NAME] has proved the amount of interest owing from the due date to the hearing date.
9. The [NAME] provided evidence, by way of an invoice to the [NAME], to claim interest of $1,016.62. There is no breakdown of the interest claim or how it has been calculated.
10.The application form states that interest has been calculated from August 2024. The amount claimed for levies at that date was $4,960.74. Since then, the amounts owing has fluctuated, increasing to approximately $16,000 in November 2024 and steadily reducing to $1,422.09 at the date of hearing.
11.The [NAME] has not persuaded me that its interest calculation is correct. Given the ways its claim was presented, it was not possible for me to cross-check the calculation, nor should the Tribunal be required to calculate the interest owing.
12.Counsel suggested that the [NAME] could submit further evidence after the hearing. That is not appropriate. This was the [NAME]’s’ claim and it has the onus of proof. The Tribunal regularly receives a full breakdown of how interest has been calculated.
13.The claim for interest is dismissed.
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Is the [NAME] liable for costs?
14.Pursuant to section 124 UTA, and as resolved at meetings of the [NAME], the [NAME] is entitled to recover any reasonable costs incurred by it in collecting unpaid levies as a debt due by the owner to the [NAME]. In accordance with the judgments (of the District Court and Court of Appeal respectively) in [NAME] 162791 v [NAME] DC Auckland, CIV2014-004- 0120, 24 June 2014 and [NAME] 162791 v Gilbert [2015] NZCA 185, the Tribunal must order that the reasonable costs incurred by the [NAME] in recovering the levies, objectively assessed, be paid by a defaulting [NAME]. I am satisfied that the costs ordered above are reasonable.
15.The [NAME] suggested that the costs would not have been incurred if the [NAME] had agreed to a payment plan proposal and been prepared to negotiate regarding the debt. A [NAME] has a statutory obligation to pay levies and the [NAME] has a responsibility to all [NAME] owners to collet those levies. There is nothing improper about the way the [NAME] has responded to this debt, or in its debt collection procedures.
16.Because the [NAME] has succeeded with the claim, I have reimbursed the filing fee. Section 176(1) [NAME] Act 2010 and section 102(4) Residential Tenancies Act 1986.
[NAME] 18 March 2025
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Please read carefully:
SHOULD YOU REQUIRE ANY HELP OR INFORMATION REGARDING THIS [COMPANY] [PHONE].
MEHEMA HE PĀTAI TĀU E PĀ ANA KI TENEI TAKE, PĀTAI ATU KI TE [COMPANY] [PHONE].
AFAI E TE MANA’OMIA SE FESOASOANI E UIGA I LENEI MATAUPU FA’AMOLEMOLE IA FA’AFESO’OTAI’I LOA LE OFISA O LE [COMPANY] [PHONE].
Rehearings:
You may make an application to the Tenancy Tribunal for a rehearing. Such an application must be made within five working days of the order and must be lodged at the Court where the dispute was heard.
The only ground for a rehearing of an application is that a substantial wrong or miscarriage of justice has or may have occurred or is likely to occur. Being unhappy or dissatisfied with the decision is not a ground for a rehearing. (See ‘Right of Appeal’ below).
Right of Appeal:
If you are dissatisfied with the decision of the Tenancy Tribunal, you may appeal to the District Court. You only have 10 working days after the date of the decision to lodge a notice of appeal.
However, you may not appeal to the District Court:
1. Against an interim order made by the Tribunal. 2. Against an order, or the failure to make an order, for the payment of money where the
amount that would be in dispute on appeal is less than $1,000. 3. Against a work order, or the failure to make a work order, where the value of the work
that would be in dispute on appeal is less than $1,000.
There is a $200.00 filing fee payable at the time of filing the appeal.
Enforcement:
Where the Tribunal made an order that needs to be enforced then the party seeking enforcement should contact the Collections Office of the District Court on [PHONE] or go to www.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.
http://www.justice.govt.nz/fines/civil-debt
⚖️ What tends to weigh in cases like this
✅ Tends to be accepted
- The landlord must pay all levies and outgoings as per the Tenancy Act 2010.
- The tenant provided clear evidence of outstanding levies through a detailed summary.
- The tribunal found the costs incurred by the tenant in collecting unpaid levies to be reasonable.
- The filing fee was reimbursed to the tenant as the claim was successful.
❌ Tends to be rejected
- The tenant failed to provide a clear breakdown of the interest calculation, leading to dismissal.
- The tenant’s suggestion that costs would not have been incurred if a payment plan was agreed upon was not considered.
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 landlord to pay the tenant $3,830.59 for unpaid levies, interest, and costs.
What was the dispute about?
The dispute was about the landlord's failure to pay levies, interest, and costs owed to the tenant.
How did the court decide, and why?
The court decided in favour of the tenant because the landlord failed to pay the levies by the due date, as required by the Residential Tenancies Act 1986.
Which laws or rules were applied?
The Residential Tenancies Act 1986, sections 54 and 124 were applied.
What was the argument that mattered most?
The argument that mattered most was that the landlord failed to pay levies by the due date, which triggered interest and cost recovery.
Was the decision for or against the person who brought the case?
The decision was for the person who brought the case, the tenant.
What does this mean for someone in a similar situation?
For tenants in a similar situation, it means that they can seek recovery of unpaid levies, interest, and costs from landlords who fail to meet their obligations.
What evidence or documents mattered?
The evidence included records proving the amount of levies owed and invoices for interest claims.
