Tenant Wins Reduction of Fixed-Term Tenancy Due to Severe Hardship
📌 In brief
The Tenancy Tribunal reduced the fixed-term tenancy of a tenant who faced severe hardship due to unforeseen changes in her living situation. The tenant had to move out and is now in social housing.
⚖️ Legal holding
A tenant is entitled to have their fixed-term tenancy reduced if they face severe hardship due to unforeseen changes in their circumstances.
📖 What the law says
This rule allows the Tenancy Tribunal to shorten a fixed-term tenancy if a tenant applies and shows that an unexpected change in their life would cause them severe hardship, and this hardship would be worse than any hardship the landlord would face if the tenancy were shortened. The Tribunal can also change other parts of the tenancy agreement as needed.
Plain-English explanation — does not replace advice from a lawyer.
📖 Technical summary
The Tribunal reduced the fixed-term tenancy and ordered the tenant to pay rent arrears.
📜 Headnote Official document
The Tenancy Tribunal reduced the fixed-term tenancy of a tenant due to unforeseen changes in their circumstances leading to severe hardship. The tenant had moved in with others, but relationship issues led to an intolerable living situation, necessitating the reduction of the tenancy term.
📚 Full judgment Official document
__________________________________________________________________________________ 5068369, 5089655 1
[2025] NZTT 5068369, 5089655
TENANCY TRIBUNAL - [Event location suppressed]
APPLICANT: [redacted]
Landlord
RESPONDENT: [redacted]
Tenant
TENANCY ADDRESS: [Tenancy address suppressed]
ORDER
1. An application for suppression has been made in this case, and the Tribunal orders suppression of the names and identifying details of both parties.
2. [[NAME]] must pay [The landlord/s] $2,027.00 immediately, calculated as shown in table below:
3. The Bond Centre is to pay the bond of $3,000.00 ([Bond number suppressed]) to [The landlord/s] immediately.
4. The term of the fixed-term tenancy of [[NAME]] at [Tenancy address suppressed] is reduced and now has ended as of 27th January 2025.
Description Landlord Tenant Rent arrears to 27/01/2025 $5,000.00 Total award $5,000.00 Minus bond $3,000.00 Total payable by Tenant to Landlord $2,000.00
Reasons:
1. The landlord and [the tenant] attended the hearing on 13th February 2025.
2. The landlord applied for rent arrears and refund of the bond.
__________________________________________________________________________________ 5068369, 5089655 2
3. The tenant has applied for reduction of the fixed-term tenancy due to end on 21st August 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
c. the applicant’s hardship would be greater than the hardship to the [NAME] party if the term is reduced. See section 66(1) Residential Tenancies Act 1986.
5. There has been an unforeseen change in the tenant's circumstances.
6. The tenant had originally moved in with her joint tenant [[NAME]] and a boarder [NAME] in the tenancy agreement.
7. The premises comprised of 3 bedrooms.
8. However, soon after they all moved in, [[NAME]]’s partner came to live with them along with her two teenage children. The [NAME] boarder left the tenancy.
9. [[NAME]] shared one room with his partner and the two teenage children used another room. However, due to their relationship issues, the tenant could not stay in the house and had to sit in the car at all hours of the night along with her baby to settle the baby down.
10. The tenant would suffer severe hardship if the term of the tenancy were not reduced for her. The premises had essentially become a rental for the co-tenant [[NAME]] and his partner and the tenant was unable to enjoy quiet enjoyment of the premises as was her right as a [NAME]. She has subsequently moved out and has been residing in social housing.
11. The landlord would suffer hardship if the term was reduced for this tenant as [[NAME]] would be the only [NAME] remaining. There was a period of time when the tenant was not paying her share of the rent as she had moved out and the landlord was only receiving half the rent. If the rent continued to be half, that would have been significant hardship to the landlord but since 28th January 2025, the remaining tenant had been covering the full rent through having a boarder at the premises.
12. I find that the tenant’s hardship would be greater than the landlord’s hardship.
13. Where the Tribunal reduces a fixed-term tenancy, it may order the tenant to pay the landlord reasonable compensation for any resulting loss. See section 66(2) Residential Tenancies Act 1986.
__________________________________________________________________________________ 5068369, 5089655 3
14. I award compensation of $5,000.00 to the landlord, taking into account the rent shortfall to 27th January 2025.
15. Although both tenants are jointly and severally liable, as this reduction of the fixed-term tenancy is only for the benefit of [the tenant], I order her to pay the remaining rent arrears after the bond being refunded in full to the landlord.
16. The bond of $3,000.00 will be paid in full to the landlord. [the tenant] must pay the landlord the remaining $2,000.00.
17. As both parties have succeeded in their applications, no order is made for reimbursement of the filing fees.
[NAME] 14 February 2025
__________________________________________________________________________________ 5068369, 5089655 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 [NAME] 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/
__________________________________________________________________________________ 5068369, 5089655 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 circumstances changed unexpectedly, which is a requirement for reducing a fixed-term tenancy.
- The tenant would suffer severe hardship if the tenancy term was not reduced.
- The tenant was unable to enjoy quiet enjoyment of the premises due to relationship issues with her co-tenant.
- The tenant's hardship was greater than the landlord's hardship.
- The landlord was awarded compensation for the rent shortfall up to the date the tenancy was reduced.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The Tenancy Tribunal reduced the fixed-term tenancy of the tenant and ordered her to pay rent arrears.
What was the dispute about?
The dispute was about whether the tenant's fixed-term tenancy should be reduced due to unforeseen changes causing severe hardship.
How did the court decide, and why?
The court decided to reduce the tenancy term because the tenant faced severe hardship due to relationship issues with co-tenants.
Which laws or rules were applied?
The Residential Tenancies Act 1986, sections 66(1) and 66(2) were applied.
What was the argument that mattered most?
The argument that mattered most was that the tenant faced severe hardship due to unforeseen changes in her living situation.
Was the decision for or against the person who brought the case?
The decision was for the tenant who brought the case.
What does this mean for someone in a similar situation?
Someone in a similar situation might be able to have their fixed-term tenancy reduced if they can show severe hardship due to unforeseen changes.
What evidence or documents mattered?
The judgment does not specify the exact evidence or documents that mattered.