Tenants Ordered to Pay Rent Arrears and Break Fee After Early Termination

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[2025] NZTT 5218013

TENANCY TRIBUNAL AT REMOTE LOCATION | TE TARAIPIUNARA RETIHANGA

APPLICANT: [redacted]

Landlord

RESPONDENT: [redacted]

Tenant

TENANCY ADDRESS: [ADDRESS], [POSTCODE]

ORDER

1. [NAME] and [NAME] must pay Team Group Rentals Limited As Agent For [NAME] $3,067.04 immediately, calculated as shown in table below.

2. The [COMPANY] is to pay the bond of $2,780.00 (3290958-027) to Team Group Rentals Limited As Agent For [NAME] immediately.

Description Landlord Tenant Rent arrears to 30 Jan 2025 $4,040.29 Early release from fixed-term tenancy fee $1,506.75 Cleaning $300.00 Total award $5,847.04 Bond $2,780.00 Total payable by Tenant to Landlord $3,067.04

Reasons:

1. Both parties attended the video hearing. All three tenants were present.

2. Following an agreed early end to the fixed-term tenancy, the landlord has applied for rent arrears, payment of the break fee for early release from the fixed-term tenancy, and compensation for cleaning.

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3. A bond of $2,780.00 is held by the [COMPANY]. The landlord seeks refund of the bond to the landlord is partial payment of those claims.

The tenancy

4. The parties entered into a fixed-term tenancy commencing 15 March 2024 and ending 13 March 2025.

5. In early/mid September 2024, the tenants requested they be released from the tenancy early. The landlord agreed the tenants could be released on the terms set out in an email dated 13 September 2024.

6. An estimate of the fees likely to be incurred in finding new tenants was provided in that email. In a verbal conversation, the landlord said the break fee usually ends up being equal to approximately one week’s rent. At that time, the tenants were paying $695 per week in rent.

7. The tenants agreed to the conditions for early release from the fixed-term tenancy.

8. A new tenancy commenced on 31 January 2025. The new tenants pay $650 per week in rent.

How much is owed for rent?

9. The parties agree the tenancy ended on 30 January 2025 and the tenants accept they are liable for rent until that date.

10. By consent, I order the tenants must pay rent arrears due to that date.

How much do the tenants owe the landlord for the cost of breaking the fixed-term tenancy early?

11. No fixed-term tenancy shall be terminated unless the expiry of the term of the tenancy passes, or any of sections 55AA, 56A(1), 58(1)(d), (da), 58A, 59, 59A, or 59B apply, and notice is given in accordance with the applicable section. A fixed-term tenancy may also be ended by mutual agreement of the parties.

12. It is not disputed that in early September 2024, the tenants requested an early end to the fixed-term tenancy and the landlord agreed, on condition that the tenant remained liable to pay rent until a new tenancy commenced and they pay a break fee. A breakdown of the “reasonable expenses likely to be incurred” was provided by email dated 13 September 2024.

13. The tenants accept they agreed to the terms set out by the landlord in the email dated 13 September 2024, however, the tenants say they were surprised to

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then receive a final invoice for $1,506.75. They say that amount is more than double the estimated amount of $695, being one week’s rent.

14. Furthermore, the tenants say they do not consider the landlord put in sufficient effort to find new tenants, and instead took advantage of the tenants who remained liable to pay the rent until a new tenant was found or until the end of the fixed-term tenancy.

15. The landlord confirms she told the tenants the usual cost was around one week’s rent, but she says, unfortunately in this case, the property took longer to re-rent. The landlord says they did put in effort to find new tenants, but that the market was particularly slow. The landlord says the rental market is usually slow in the latter months of the year, picking up in the months of December – February, and that may account for how long it took. The landlord says they initially sought new tenants at the same rent as paid by these tenants, $695 per week, but ended up reducing the rent to $650 per week. The new tenancy commenced on 31 January 2025 at $650 per week.

16. The landlord said the final break fee invoice included some discounts. The landlord said while 15 viewings were held, they only charged the tenants for 10 viewings (at $85+GST per viewing), and the landlord did not charge the tenants for dealing with any enquiries by prospective tenants, or for mileage to travel to viewings. The landlord also stated there was no charge applied for dealing with issues post the final inspection – the landlord says she had to arrange for cleaning of the property.

17. I am satisfied the landlord has proved the tenants agreed to the terms of breaking the fixed-term tenancy as set out in the email on 13 September 2025. I am also satisfied the landlord’s verbal statement that the break fee is usually around one week’s rent was an estimate only and was not intended to bind the landlord to that amount.

18. There is no provision of the Residential Tenancies Act 1986 (the RTA) that requires a landlord who agrees to the early end of a fixed-term tenancy to find a new tenant within a specified timeframe. The tenants’ complaint that the landlord did not take sufficient steps to find a new tenant during the term of the their fixed-term tenancy is without grounds. In any event, on the evidence provided, I am satisfied the landlord took reasonable steps to try to find a new tenant.

19. I am satisfied that the amount charged by the landlord is consistent with the estimated costs set out as conditions of the landlord’s consent to break the fixed-term tenancy. Given those terms were agreed to by the tenants, they are liable to compensate the landlord for those costs.

20. I make an order that the tenant pay the landlord the costs incurred in breaking the fixed-term tenancy early as sought.

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Did the tenant comply with their obligations at the end of the tenancy?

21. At the end of the tenancy the tenant must leave the premises reasonably clean and tidy. See section 40(1)(e)(iii) of the RTA.

22. The landlord conducted an exit inspection on 27 January 2025 and has produced a copy of the report including photos. The landlord submits the photos show the property was not left reasonably clean in that floors were not cleaned, skirting boards were dusty, and in particular, surfaces and floors in the kitchen and bathroom needed cleaning.

23. The landlord arranged for a professional cleaner to clean the premises, and has provided an invoice in which the cleaner charged the landlord $615.25 to clean the premises. The landlord accepts the cleaner brought the property to a higher standard than “reasonably clean” and therefore seeks a contribution from the tenants of $300.00.

24. The tenants says they moved out on or about 18 October 2024. They say they left the property in a cleaner condition than when they moved in. They have provided a video taken during a viewing on 2 March 2025 (before the tenancy commenced), photos taken on15 March 2025 (the day they moved in), and a video they took on 14 January 2025, which was taken to show the features of the property to any prospective new tenants.

25. I have reviewed all the evidence submitted. I am satisfied the landlord has proved the tenant did not leave the premises reasonably clean as at the end of the tenancy. The photographs taken by the landlord during the final inspection on 27 January 2025 show the property was not reasonably clean as at that date. The tenants responsibility under s 40(1)(e)(iii) of the RTA specifically relates to their obligations at the termination of the tenancy. I note that the video taken on 14 January 2025 did not show sufficient detail of the cleanliness of the premises, which is not surprising given the purpose for which it was taken was to show the features of the premises to any prospective tenants.

26. I am satisfied the amount sought in compensation for cleaning is a reasonable amount to bring the property to the standard of “reasonably clean”.

27. The amount ordered is proved.

[NAME]

04 June 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: