Tenant Wins Compensation for Insulation Failure and Power Costs
📌 In brief
The Tenancy Tribunal ruled that the landlord must compensate the tenants for insulation failure and reimburse them for power costs related to the landlord's equipment. The landlord was also ordered to install a power meter for the sump pump.
⚖️ Legal holding
A tenant is entitled to compensation for insulation failure and reimbursement for power costs related to the landlord's equipment.
📖 What the law says
This section outlines a landlord's responsibilities, including providing and maintaining the rental property in a reasonable state of repair, considering its age and character. It also requires landlords to comply with all building, health, and safety requirements that apply to the premises.
Plain-English explanation — does not replace advice from a lawyer.
📖 Technical summary
The Tenancy Tribunal ordered the landlord to compensate the tenants for insulation failure and power usage issues.
📜 Headnote Official document
The Tenancy Tribunal ordered the landlord to compensate the tenants for insulation failure and to reimburse the tenants for power costs related to the landlord's equipment. The landlord was also ordered to install a power meter for the sump pump.
📚 Full judgment Official document
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[2025] NZTT 5103768, 5072110
TENANCY TRIBUNAL AT
APPLICANTS/RESPONDENTS: [redacted]
Tenants
RESPONDENT/APPLICANT: [redacted]
Landlord
TENANCY ADDRESS: [Street address]
ORDER
1. The tenants’ names and identifying details including the tenancy address must not be published.
2. [COMPANY] must pay [The tenant/s] $686.01 immediately, as calculated in the table below.
3. Until the landlord installs a power tick-meter for the sump pump, the landlord must reimburse the tenants for 10 percent of their power costs for the months of June through to November, inclusive. Once the landlord installs a tick-meter, the landlord must reimburse the tenants for the sump pump’s power costs.
4. All other claims are dismissed
Description Landlord Tenant Compensation for no insulation $318.21 Compensation for landlord using tenants’ power $340.80 Water arrears $415.32 Filing fee reimbursement $27.00 Sub-totals of awards $415.32 $686.01 Net award to tenants $270.69
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Reasons:
1. The tenants attended the hearing in person.
2. [NAME] attended for the landlord.
3. The tenants claim the landlord failed to insulate the premises at the beginning of the tenancy and that the landlord operates a water pump to prevent flooding from the tenants’ own power supply. They seek orders for compensation and a declaration that the landlord compensate them for accessing their power.
4. The landlord claims for water arrears.
Did the landlord failed to insulate the premises?
5. The tenants claim that the landlord has breached the obligations under section 45(1)(bb) of the Residential Tenancies Act 1986 by failing to insulate the premises in accordance with the Residential Tenancies (Smoke Alarms and Insulation) Regulations 2016.
6. From 1 July 2019, all residential premises must be insulated to a minimum standard. Where the premises were insulated before 1 July 2016, the ceiling insulation must have an R-value of at least 1.9 (or 1.5 for houses of a brick or concrete block construction). The underfloor insulation must have an R-value of at least 0.9. The insulation must be in reasonable condition.
7. Where insulation is installed after 1 July 2016, the minimum R-value for ceiling insulation is 2.9 in Zones 1 and 2, and 3.3 for Zone 3 (Zone 3 covers the South Island and central North Island). The minimum R-value for underfloor insulation is 1.3.
8. There are exceptions to these requirements, for example, where it is not reasonably practicable, or where there is a habitable space above or below the ceiling or floor that would otherwise have to be insulated.
9. The landlord failed to ensure the premises was insulated to the required standard at the beginning of the tenancy on 17 March 2023.
10. The landlord did have the insulation remediated on 10 May 2023.
11. I am satisfied the tenant’s suffered loss of amenity for that approximately eight- week period.
12. I quantify the loss of amenity and additional power cost at five percent of the weekly rent for that period. The total amount is $318.21.
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Is the landlord liable to the tenants for using their power?
13. The landlord has a water pump set up to drain excessive rainwater from a sump. It is an effective system that prevents the premises from flooding.
14. This is a maintenance matter, which the landlord is obliged to attend to. The tenant should not have to pay for the cost of running the pump.
15. There is not separate tick-meter to measure the water pump’s power usage.
16. I am going to order the landlord to reimburse the tenants in the order of 10 percent of their power cost in the wetter six months of the year which I estimate to be $28.40 per month based on the tenants’ power costs for the six months to November last year.
17. The tenants have been in the premises for two Winters. That is 12 months. The total amount ordered is $340.80.
18. Until the landlord installs a power tick-meter for the sump pump, the landlord must reimburse the tenants for 10 percent of their power cost for the months of June through to November, inclusive.
Are the tenants liable to the landlord for water arrears?
19. The landlord seeks an order for water. However, the landlord failed to issue the tenants with water invoices until about a year ago.
20. The tenants submit they should not have to pay historic water invoices.
21. Landlords must ensure water invoices are regularly provided to their tenants. There is an implied term in a tenancy agreement that a landlord must present water rates invoices to tenants as they fall due. The District Court has found that if invoices are only provided at the end of the tenancy, then the tenant is likely to be found liable to pay for only the last couple of the invoices.1
22. I have regard also to the substantial merits and justice of the case in accordance with s 85(2) of the RTA. I consider it is fair and in accordance with the substantial merits and justice of this case to decline to require the tenants to make payment towards the cost of water prior to the April 2024 invoice.
23. My calculation is that the tenants owe $415.32 for water up to the latest invoice dated 5 March 2025.
1 Woollams v Simpson DC Auckland CIV-2005-004-1583,16 March 2006 at [20].
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Filing fee
24. The tenants having substantially succeeded in their claim, the landlord must reimburse them for the filing fee.
[NAME] 12 March 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:
239838647: , [NAME], Auckland 414901822: NORTH SHORE | TE TARAIPIUNARA RETIHANGA KI ŌKAHUKURA
⚖️ What tends to weigh in cases like this
✅ Tends to be accepted
- The landlord failed to ensure the premises were insulated to the required standard at the start of the tenancy.
- The tenants suffered a loss of amenity and additional power costs for the period without proper insulation.
- The landlord is responsible for the water pump, and the tenants should not have to pay for its operation.
- The landlord failed to regularly issue water invoices to the tenants.
- It is fair and just to decline requiring tenants to pay for water prior to the April 2024 invoice.
❌ Tends to be rejected
- The landlord's claim for water arrears was dismissed for invoices prior to April 2024.
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 compensate the tenants for insulation failure and to reimburse them for power costs related to the landlord's equipment.
What was the dispute about?
The tenants claimed the landlord failed to insulate the premises and used their power for a water pump, while the landlord sought payment for water arrears.
How did the court decide, and why?
The court decided in favour of the tenants, finding that the landlord failed to insulate the premises and should compensate the tenants for power costs related to the water pump.
Which laws or rules were applied?
The Residential Tenancies Act 1986, s 45(1)(bb) and the Residential Tenancies (Smoke Alarms and Insulation) Regulations 2016 were applied.
What was the argument that mattered most?
The argument that mattered most was that the landlord failed to insulate the premises to the required standard and used the tenants' power without a separate meter.
Was the decision for or against the person who brought the case?
The decision was for the tenants who brought the case.
What does this mean for someone in a similar situation?
Someone in a similar situation may be entitled to compensation for insulation failure and reimbursement for power costs related to the landlord's equipment.
What evidence or documents mattered?
The judgment does not specify the evidence or documents that mattered.