Tenants Ordered to Pay Water Rates in Tenancy Dispute
📌 In brief
In this Tenancy Tribunal case, the landlord successfully claimed that the tenants owe $5,622.91 for water rates based on a fair division of costs between units sharing a meter. The tenants were absent from the hearing and missed their chance to contest the claim.
⚖️ Legal holding
A tenant is responsible for outgoings exclusively attributable to their occupation under the Residential Tenancies Act 1986, s 39(3).
📖 What the law says
This section generally states that the landlord is responsible for paying all property expenses like rates, insurance, and water charges. However, it also says that tenants are responsible for certain expenses, such as electricity, gas, and water charges if the property has its own water meter and the tenancy agreement mentioned this at the start.
Plain-English explanation — does not replace advice from a lawyer.
📖 Technical summary
The Tribunal ordered tenants to pay water rates based on a fair division of costs.
📜 Headnote Official document
The Tribunal ordered tenants to pay $5,622.91 for water rates based on a fair division of costs between units sharing a meter. The decision was made in the absence of the tenants who did not attend the hearing.
📚 Full judgment Official document
OUTCOME: Allowed
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[2026] NZTT 5407412
TENANCY TRIBUNAL AT REMOTE LOCATION | TE TARAIPIUNARA RETIHANGA
APPLICANT: [redacted]
Landlord
RESPONDENT: [redacted]
Tenant
TENANCY ADDRESS: [ADDRESS], [POSTCODE]
ORDER
1. [RESPONDENT] and [RESPONDENT] must pay [APPELLANT] $5,622.91 immediately, calculated as shown in the table below:
Description Landlord Tenant Previous order application 5407412 dated 03/03/2026 $3,853.00 Water rates: to 16.2.26 $1,769.91 Total award $5,622.91 Total payable by Tenant to Landlord $5,622.91
2. This order incorporates the Tribunal order made on 3 March 2026 under this application.
Reasons:
1. The landlord attended the hearing.
2. The tenants did not connect to the MS Teams link provided to them and nor did they connect via telephone as instructed in the Notice of Hearing sent to them. The hearing proceeded in their absence.
3. On 3 March 2026 the Tribunal made an order relating to this tenancy, for rent arrears to 7 March 2026, reimbursement of the filing fee and payment of the bond. The previous order is incorporated into this order for enforcement purposes.
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4. This hearing was in respect of water rates only. I had adjourned the claim for water rates after the last hearing, at which the tenancy was terminated.
How much is owed for water rates?
5. The tenant is responsible for all outgoings in respect of the premises that are exclusively attributable to the tenant’s occupation of the premises or to the tenant’s use of the facilities. Section 39 of the RTA is a provision which sets out the landlord and tenants “responsibility for outgoings”. Subsection 3 records:
6. The tenant is responsible for all outgoings in respect of the premises that are exclusively attributable to the tenant’s occupation of the premises or to the tenant’s use of the facilities.
7. The effect of section 39(3) is that the tenant is only liable for outgoings in respect of the premises that are “exclusively attributable” to the specific tenancy. I note the District Court decision of [NAME] [NAME] v Raui [2019] NZDC 3813, in which Judge de Ridder needed to consider a case where there was one power meter for both a main house and a semi-detached flat (the tenancy). The Tribunal had dismissed the claim for power charges because there was no separate meter to be able to determine what the power consumption to the tenancy was with precision. The District Court did not agree with that approach, and stated in the decision:
[23] It is clear from the comments of the Adjudicator recorded at [18] above that the adjudicator took a strict legal approach and applied a strict application of the words “exclusively attributable” used in s 39(3) of the Act. There is an argument that whilst the strict legal application of s 39(3) means that Ms [NAME] does not have to pay for any of her power use, an application of the principle of determining the matter according to the substantial merits and justice of the case, and considering whether that, “... strict application of the law gives rise to a fair result...,”5 might arguably lead to a result where Ms [NAME] should be paying something for her power and not, effectively, receiving it for free. Also by requiring the landlord to pay for the power clearly used by Ms [RESPONDENT], the benefit of rental income from the property to the landlord is significantly reduced by the amount of the order.
[24] In all the circumstances, where there is an argument that s 85 might apply to produce a different result and that provision has not been considered, then that could be said to amount to a procedural error which in turn has possibly resulted in a substantial wrong or miscarriage of justice.
8. Section 85 is a provision in the RTA which relates to decision making of the Tribunal, and confirms that the Tribunal should looks to a fair resolution of the dispute, taking into account substantial merits and justice, not necessarily strict legal rights and technicalities: 85 Manner in which jurisdiction is to be exercised
(1) Subject to the provisions of this Act and of any regulations made under this Act, the Tribunal shall exercise its jurisdiction in a manner that is most likely to ensure the fair and expeditious
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resolution of disputes between landlords and tenants of residential premises to which this Act applies.
(2) The Tribunal shall determine each dispute according to the general principles of the law relating to the matter and the substantial merits and justice of the case, but shall not be bound to give effect to strict legal rights or obligations or to legal forms or technicalities.
9. What that means, is that the Tribunal could (if not should) look to an approach which deals with the water charges on a fair basis.
10. In this case the premises has a shared meter with another unit. The landlord divided the water rates between the premises based on number of occupants. I consider that was a fair approach.
11. In the previous order in relation to this tenancy I allocated all of the tenant’s payments to rent arrears, because of the difficulty in identifying how the landlord had dealt with the tenant’s payments. I have therefore ordered the full amount of water rates claimed, on the basis that any payment to the water rates was previously allocated to rent arrears.
12. The landlord provided water rates invoices which prove the amount owing at the end of the tenancy.
13.The landlord amended the claim to include cleaning and rubbish removal costs two days before the hearing. The tenant has not had sufficient notice of these claims, and I declined to hear them. The landlord may file a fresh application for compensation as they see fit
N [NAME]
02 June 2026
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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:
📊 How courts decide similar cases
Among 12 similar decisions in this collection:
- Tenancy Tribunal Tenants Ordered to Pay Rent Arrears and Current Rent
- Tenancy Tribunal Tenant Ordered to Pay Landlord $3,519.97 for Rent Arrears and Damage
- Tenancy Tribunal Tenant Ordered to Pay Arrears and Vacate Property
- Tenancy Tribunal Tenancy Tribunal Ends Lease for Unpaid Rent
- Tenancy Tribunal Tenancy Tribunal Orders Tenant to Pay Compensation for End-of-Lease Obligat…
- Tenancy Tribunal Tenant Ordered to Pay Rent Arrears Before Vacating Property
- Tenancy Tribunal Tenant Ordered to Pay for Cleaning and Rubbish Removal Costs After Dispute
- Tenancy Tribunal Claimant wins rent dispute: Tenant ordered to pay $7,856.15
- Tenancy Tribunal Tenant Ordered to Pay Rent Arrears and Filing Fee
- Tenancy Tribunal Tenant Ordered to Pay Rent Arrears and Damages
- Tenancy Tribunal Tenant’s Abandoned Property Can Be Disposed Of By Landlord, Says Tenancy Tr…
- Tenancy Tribunal Tenancy Terminated Due to Rent Arrears
A snapshot of this collection — not a prediction of your case's outcome.
⚖️ What tends to weigh in cases like this
✅ Tends to be accepted
- Tenant is responsible for rent arrears.
- Tenant must pay utility charges incurred during their occupation.
- Tenant liable for damage to the premises beyond normal wear and tear.
- Tenant required to leave property clean, tidy, and secure upon termination.
- Tenant must comply with payment orders within specified period.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The Tribunal ordered the tenants to pay $5,622.91 for water rates.
Who was involved?
A landlord and two tenants were involved in a dispute over water rates.
How did the court decide, and why?
The court decided that the tenants must pay based on a fair division of costs between units sharing a meter.
Which laws or rules were applied?
Section 39(3) of the Residential Tenancies Act was applied to determine tenant responsibilities.
What was the argument that mattered most?
The landlord argued that the tenants should pay for water rates based on a fair division of costs between units sharing a meter.
Was the decision for or against the person who brought the case?
The decision was in favour of the landlord.
What does this mean for someone in a similar situation?
Tenants may be responsible for water rates based on a fair division if they share a meter with another unit.
What evidence or documents mattered?
Water rate invoices and previous order details were key pieces of evidence.
Can a decision like this be appealed?
Yes, either party can appeal the decision within 10 working days to the District Court.
Is it worth getting a lawyer for a case like this?
It is advisable to seek legal advice from a qualified lawyer for specific guidance.
