Tenants Ordered to Pay Rent Arrears and Compensation

OUTCOME: Allowed in Part

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[2026] NZTT 5429448, 5499169

TENANCY TRIBUNAL AT CHRISTCHURCH | TE TARAIPIUNARA RETIHANGA KI ŌTAUTAHI

APPLICANT: [redacted]

Tenant

RESPONDENT: [redacted]

Landlord

TENANCY ADDRESS: [ADDRESS], [POSTCODE]

ORDER

1. [NAME], [RESPONDENT] and [NAME] to pay [RESPONDENT] $1372.53 from the bond, calculated as shown in table below:

Landlord Tenant

Rent arrears to 1 December 2025 $1,923.53 Compensation: breaches of quiet enjoyment $1,500.00 Compensation: failure to maintain and repair $1,000.00 Repair broken cooktop (insurance excess) * $1,000.00 Replace aircon remote control * $59.00 Carpet cleaning * $200.00 Repair door $690.00 Total award $3,872.53 $2,500.00 Net award $1,372.53 Bond $1,372.53 $2,147.47

2. The [COMPANY] is to pay the bond of $3,520.00 (BN-00048710) immediately apportioned as follows:

[RESPONDENT] : $1,372.53

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[NAME], [NAME], Sylvia Brown, [NAME] and [NAME]: $2,147.47

3. The tenants’ application for exemplary damages is dismissed.

4. The landlord’s application for the repair cost of a handrail is dismissed.

Reasons:

1. Both parties attended the hearing which commenced on 5 May 2026. [NAME] [RESPONDENT] represented the landlord. Also present was [RESPONDENT] ([RESPONDENT]), the [NAME], who attended the hearing as a witness.

2. The tenants have applied for compensation and/or exemplary damages for breaches of their quiet enjoyment and for the landlord’s failure to maintain the premises in a reasonable state of repair.

3. The landlord has applied for rent arrears, compensation, and refund of the bond.

Background

4. The tenancy started on 28 December 2024 and ended on 1 December 2025.

5. When the tenants entered the tenancy, they knew (and accepted) that a garage conversion would be undertaken during the tenancy. That involved building contractors accessing the exterior of the premise to gain access to the building project.

6. The mother of the owner of the premises, identified as [NAME], was to oversee the garage conversion, acting as a project manager. That meant that she was at the premises often. The tenants thought she was the landlord.

7. The tenants complained about [RESPONDENT] presence at the premises to [NAME] [RESPONDENT]. She entered the premises on some occasions and interfered with the tenants’ peace, comfort, and privacy often.

8. [NAME] [RESPONDENT] notified the owner about his mother’s behaviour, but it did not resolve.

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9. The tenants also experienced repair and maintenance issues that they notified to the landlord. Due to a delay repairing the hot water cylinder they were without sufficient hot water for about one month. Also, two bedroom door panels fell off and were not adequately repaired.

10. After the tenancy ended, the tenants made their application for compensation and exemplary damages.

11. At the hearing on 5 May 2026, I heard the tenants’ application in full. Shortly before the hearing, the landlord filed a cross application. I therefore adjourned the hearing so the tenants could be notified of, and respond to, the landlord’s application.

12. I reconvened the hearing on 3 June 2026 and heard the landlord’s application and the tenants’ response to it.

Issues

13. The issues to be determined are these:

• Did the landlord cause or permit an interference with the tenants’ reasonable peace, comfort, or privacy in their use of the premises?

• Did the landlord fail to maintain the premises in a reasonable state of repair?

• If these breaches are established, should the Tribunal award the tenants exemplary damages?

• Should the Tribunal award the tenants compensation?

• Has the landlord proved a claim for rent arrears?

• Has the landlord proved claims for damage by the tenants?

Relevant law

Statutory provisions

14. Section 38 of the Residential Tenancies Act 1986 (RTA) provides that a tenant shall be entitled to have quiet enjoyment of the premises without interruption by the landlord and that the landlord shall not cause or permit any interference with the reasonable peace, comfort, or privacy of the tenant in the use of the premises by the tenant.

15. Section 40 RTA sets out a tenant’s responsibilities. Included among them are the responsibility to pay rent when due; to keep the premises reasonably clean and tidy; to leave the premises in a reasonably clean and tidy condition; to

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repair nay damage beyond fair wear and tear, and to quit the premises when the tenancy ends.

16. Section 45 RTA sets out a landlord’s responsibilities. Included among them are the responsibility to provide the premises in a reasonably clean state; to provide and maintain the premises in a reasonable state of repair (having regard to the age and character of the premises); and to comply with the Healthy Homes Standards (HHS).

Compensation and exemplary damages

17. The Tribunal may award compensation to a party for losses arising from a proven breach or breaches by the other party of their statutory responsibilities.

18. Compensation is usually awarded for actual losses and sometimes for less tangible effects of proven breaches such as a loss of enjoyment of the tenancy and the accompanying stress and anxiety.

19. In [NAME] v [NAME] Trust1 the District Court confirmed that the Tribunal must consider the following factors when deciding to award compensation:

• The nature of the breach; • The duration of the breach; and • The effect of the breach on the party.

20. Exemplary damages are different. They are designed to punish and to deter. They are like a fine.

21. Exemplary damages are awarded at the Tribunal’s discretion when one party has proved that the other party has, with intent, committed a defined unlawful act. If that is proven, and before the Tribunal may award exemplary damages, it must take account of the factors set out in section 109 RTA.

22. In [NAME], the Court said this: In considering whether an order of exemplary damages should be made, the Tribunal must first look at the intention of the person against whom the order is sought. As the Tribunal in Chief Executive, ex parte [NAME] v [NAME] TT548/92 said:

Before an award of exemplary damages can be made the threshold question for the Tribunal to answer is whether the unlawful act has been committed ‘intentionally’. In my view negligence does not equate to intention, and for the Tribunal to be satisfied that a party has ‘intentionally’ committed an unlawful act evidence must exist which would justify the Tribunal in coming to the conclusion that the party committing the unlawful act has in fact turned his or her mind to the act and deliberately set about to commit it.

1 [2020] NZDC 17667

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If the Tribunal considers that the person against whom the order is sought has committed the unlawful act intentionally, the Tribunal must then consider whether it would be just to require that person to pay exemplary damages, taking into account:

(a) The intention of the person; (b) The effect of the unlawful act; (c) The interests of the party against whom the unlawful act was

committed; and (d) The public interest.

Discussion

Did the landlord cause or permit an interference with the tenants’ reasonable peace, comfort, or privacy in their use of the premises?

23. The tenants gave evidence that they thought [RESPONDENT], the [NAME], was the landlord. She was not. Other than the fact that she was the project manager for the garage conversion, she had no legal standing in relation to the tenancy. [NAME] [RESPONDENT]/his company was the sole landlord.

24. The tenants gave evidence that [RESPONDENT] sometimes asked to be present at the premises, but mostly she did not. Many of her visits were unannounced and occurred after 6pm. As they put it ’she was pretty much always there’.

25. The tenants alerted [NAME] [RESPONDENT] on several occasions. He said he phoned [RESPONDENT] and told her she could not go to the premises without an appointment arranged by him. When [NAME] continued to go there, he contacted her son, the owner, and had many phone calls about [NAME]. He said he told the tenants to call the police if [NAME] continued to arrive.

26. On one occasion the tenants gave evidence that [NAME] entered a bedroom where one of the tenants and her boyfriend were naked lying on the bed. [APPELLANT] denied that happened. I am inclined to believe the tenant.

27. [NAME] [RESPONDENT] did not interfere with the tenants’ reasonable peace, comfort, or privacy, but he permitted the interference by [NAME]. Although he took some actions by talking to her and her son, he could have done more.

28. The tenants experience a loss of enjoyment of the tenancy because their peace comfort and privacy were constantly interrupted. The incident when [NAME] entered a bedroom, was serious. [NAME] denied the tenants’ accusations, the fact that [NAME] [RESPONDENT] (and apparently the owner) recognised what was happening corroborates the tenants’ evidence.

29. The landlord therefore breached his/its responsibility under section 38 RTA by permitting an interference with the tenants’ reasonable peace, comfort, or privacy in their use of the premises.

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Did the landlord fail to maintain the premises in a reasonable state of repair?

30. The tenants’ evidence establishes that the landlord failed to attend to repairs in a timely manner. First, panels on a bedroom door fell off. The repairs were unsightly to say the least. [NAME] [RESPONDENT] agreed that the repair was ‘quite ugly. The tenants said even after the repair, the doors dragged on the carpet. They had to use duct tape to ensure the panels were in place.

31. The tenants said that [NAME] would yell at them and tell them their boyfriends should do the repairs for free.

32. The tenants said they had insufficient hot water for a month. For a period of about 3 weeks the hot water cylinder made a high-pitched sound which I was able to observe and hear on the video they produced in evidence.

33. [NAME] [RESPONDENT] said the leak in the hot water cylinder was reported on 18 August and the cylinder was replaced (arranged by [NAME]) on 8 September. However, the tenants said they notified the problem with the hot water cylinder 3 months earlier. They referred to their text messages to [NAME] [RESPONDENT] and to [NAME] produced in evidence. They said that [NAME] came regularly to check they had emptied the bucket under the cylinder where it was leaking.

34. The impression I gained was that [RESPONDENT] (certainly) and [NAME] [RESPONDENT] (probably) had a fundamental lack of understanding about who the landlord was.

35. The tenants suffered a loss of enjoyment of the tenancy from these delayed repairs, especially to the hot water cylinder. Being able to use a shower without hindrance is important and necessary, as is having a bedroom door that ensure privacy and closes properly.

36. The landlord therefore breached his/its statutory responsibility under section 45 RTA to maintain the premises in a reasonable state of repair.

Should the Tribunal award the tenants exemplary damages?

37. As the breaches alleged by the tenants are proved, the Tribunal must address the consequences of those breaches.

38. For the Tribunal to award exemplary damages, the party who seeks damages must prove that the other party acted with intent. That means that the party against whom the damages are sought turned their mind to the unlawful act and deliberately set about to commit it.

39. Interfering with a tenant’s right to reasonable peace, comfort, or privacy is an unlawful act if it amounts to harassment. A failure to maintain and repair the premises can also amount to an unlawful act.

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40. Having heard the evidence, I do not find that the landlord/[NAME] [RESPONDENT] acted with intent. It/he was negligent in not making sure that the interferences by [NAME], the [NAME], ceased. Although he contacted the owner of the premises after he received complaints from the tenants he should have done more. It was he/his company alone who was the landlord. The tenancy agreement does not state that [RESPONDENT] was the agent of the owner.

41. For her part, [RESPONDENT] (while not a party) seemed to me to be a person who had no idea that what she was doing was inappropriate. While she could oversee the garage conversion, she was wrong to simply enter the tenants’ premises on the occasions she did.

42. Because the necessary element of intent has not been proved (negligence is not sufficient) the Tribunal cannot award exemplary damages in this case.

43. The tenants’ application for exemplary damages is dismissed.

Should the Tribunal award the tenants compensation?

44. Compensation is a different matter. It recognises loss, in this case the tenants’ loss of enjoyment of the tenancy firstly, by having their quiet enjoyment of the tenancy diminished by the landlord’s failure to properly act to ensure that [RESPONDENT] did not interfere with their reasonable peace, comfort or privacy. And secondly, by not promptly repairing the hot water cylinder and by not adequately repairing the bedroom door panels on the door of one of the bedrooms. So, unlike exemplary damages, compensation is not punitive.

45. I find that the tenants’ suffered a considerable loss of enjoyment of this tenancy due to [RESPONDENT] actions, which the landlord failed to ensure ceased, and by the delayed or inadequate repairs.

46. For this loss of enjoyment of the tenancy I award the tenants compensation of $1,500.00 for the breaches of their quiet enjoyment due to the on-going interference with their reasonable peace, comfort or privacy, and compensation of $1,000.00 for the delayed/inadequate repairs.

Has the landlord proved a claim for rent arrears?

47. The tenants accepted (conditionally) the landlord’s claim for rent arrears. I find that claim proved as of the date of the second hearing. However, I indicated that I would accept an application for rehearing just on the issue of rent arrears if the tenants had evidence that they made a payment for rent in advance close to the start of the tenancy that the landlord has not accounted for. Any application for rehearing must be made within 5 days of the date of this decision.

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Has the landlord proved claims for damage by the tenants?

48. A landlord must prove that damage to the premises occurred during the tenancy and is more than fair wear and tear. If this is established, to avoid liability, the tenant must prove they did not carelessly or intentionally cause or permit the damage. Tenants are liable for the actions of people at the premises with their permission2.

49. I record that the landlord withdrew the claim for a broken window upstairs at the end of the hallway, and the claim for the replacement of keys.

50. The tenants accepted the landlord’s claims for damage to a cooktop (limited to the amount of the insurance excess); the replacement of an aircon remote control; and carpet cleaning. I have allowed those claims, marked *, by consent.

51. I do not find proved a claim for damage to a handrail. The tenants gave evidence, which I accept, that the handrail was never properly affixed to the wall and would move when touched so and they took it off for inspections and placed it in the garage.

52. The tenants accepted the landlord’s claim for the repair of damage to a door (the internal door from the garage to the living area). They said they tried to get the door repaired but could not fit it in their car. From the quote produced in evidence, I allow the landlord $690.00 for the repair of the door as detailed in the quotation.

Result

53. The landlord’s claims for the repair of a window upstairs at the end of the hallway and for the replacement cost of keys are withdrawn.

54. The landlord’s claim for the repair of a door is proved. The claims for the repair of the cooktop, the replacement of the aircon remote control and for carpet cleaning are allowed by consent.

55. The landlord’s claim for rent arrears is proved but might be the subject of an application for rehearing (time limited).

56. The tenants’ application for exemplary damages is dismissed.

57. The tenants’ application for compensation is proved and is allowed in the amount of $2,500.00.

58. After the deduction of the award of compensation to the tenants, the tenants must pay the landlord $1,372.53 from the bond. The balance of the bond of $2,147.47 will be paid to the tenants.

2 See sections 40(2)(a), 41 and 49B RTA

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59. I make no award of the filing fees as both parties have succeeded in part. An award to one would be cancelled by an award to the other.

Name suppression

60. The landlord did not seek name suppression.

61. The tenants sought name suppression. I make no order for name suppression. Their application is only partly successful as is their defence to the landlord’s application3.

[RESPONDENT]

09 June 2026

3 See section 95A RTA

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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, or the failure to make an order, where the amount in dispute on appeal is

less than $1000 • a final order to undertake work, or the failure to make an order, where the value of the

work in dispute on appeal is 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: