Tenant’s Rent Arrears Limited Due to Incarceration and Landlord’s Delay
📌 In brief
The Tenancy Tribunal ruled that a tenant's rent arrears are limited due to their incarceration and the landlord’s delay in recovering possession of the property. The decision highlights the importance of landlords taking reasonable steps to mitigate losses when tenants cannot return possession.
⚖️ Legal holding
A tenant is not required to pay rent while incarcerated and unable to return possession of the property, but the landlord must take reasonable steps to recover possession.
📖 Technical summary
The claimant's application for rent arrears was limited to a specific date due to the landlord's failure to mitigate loss.
📜 Headnote Official document
The Tenancy Tribunal ruled that the claimant's rent arrears are limited to a specific date due to the landlord’s failure to mitigate loss by recovering possession of the property earlier. The tenant was incarcerated since April 2025, and no rent had been paid after April 24, 2025.
📚 Full judgment Official document
OUTCOME: Allowed in Part
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[2026] NZTT 5373221
TENANCY TRIBUNAL AT REMOTE LOCATION | TE TARAIPIUNARA RETIHANGA
APPLICANT: [redacted]
Landlord
RESPONDENT: [redacted]
Tenant
TENANCY ADDRESS: [ADDRESS], [POSTCODE]
[RESPONDENT] must pay [APPELLANT] [NAME] $2,303.86 immediately, being rent arrears to 26 May 2025.
Reasons:
1. Both parties attended the rehearing before me on 27 May 2026. The tenant attended by teleconference from a correctional facility.
2. On 10 March 2026, Adjudicator M Brennan granted a rehearing of the landlord’s application for rent arrears only.
3. Formal possession of the premises had been granted to the landlord on 3 December 2025 after the 28 November 2025 hearing before Adjudicator Brennan.
4. The landlord has applied for rent arrears until 3 December 2025, contending that the tenant had been obstructive in returning possession of the property to the social housing landlord despite being incarcerated at the material time.
5. While the exact period of the tenant’s incarceration is unclear, the testimony from the prison guard reading the tenant’s record of incarceration indicates that the tenant had already been in prison (and not residing at the tenanted premises) since April 2025.
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6. The month of April 2025 is significant in the context of the landlord’s claim for rent arrears because the last time rent had been paid by way of WINZ redirection to the landlord was 24 April 2025.
7. In this context, I reject the tenant’s contention that because he was in prison since April “2024”, he should not have to pay any arrears. There was no evidence or material being provided to show that he has given notice of termination of the tenancy to the landlord at the material time in April 2025, or prior, or any evidence showing that he had returned possession of the premises to the landlord in April 2024.
8. In fact, rent continued to be paid to the landlord, through redirection of the tenant’s benefit by WINZ. It seems likely to me that the tenant is mistaken as to the year of his incarceration which is in April 2025, rather than April 2024 as contended.
9. Be that as it may, no rent had been paid since 24 April 2025. The last date of WINZ payment to the landlord for the rent was 24 April 2025.
10. No rent was paid for the 8 to 21 April 2025 period.
11. As of 6 May 2025, the rent was 21 days in arrears.
12. The landlord’s inspection of the property on 23 May 2025 recorded that the landlord’s housing support managers “[NAME]” and [NAME] had engaged locksmiths to gain access before confirming that no one had been living in the property which is “95% empty with a few small belongings of no value at the property”. The landlord found the “property in worn condition [which] seems like [the tenant] had left in a hurry.”
13. The landlord began “non-occupation process” which required the tenant to return to the premises within 14 days.
14. However, the tenant was clearly unable to return to the property as he was incarcerated at the time.
15. No efforts were taken by the landlord to apply to the Tribunal for rent arrears and possession on grounds of abandonment until much later, on 23 October 2025 through this Tribunal application now subject to a rehearing before me.
16. This application was made following another inspection by the landlord on 21 October 2025 where the landlord’s inspectors confirmed and concluded that “the property was abandoned in April 2025 with just rubbish left”.
17. From the above facts, it is clear that the social housing landlord ought to have taken steps to retake possession of the premises soon after April 2025, and at the latest, on 6 May 2025 when rent was 21 days in arrears and the landlord’s own inspectors later confirming on 23 May 2025 that no one had been living in the property since April 2025.
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18. I consider that had the landlord applied to the Tribunal under section 55 Residential Tenancies Act 1986 or on grounds of abandonment in early May 2025, the tenancy would have likely ended by order of the Tribunal by 26 May 2025 and possession returning to the landlord on or before that date.
19. The landlord had to duty to mitigate their loss and attempt to recover possession of the premises much sooner than October 2025, in particular after their own inspectors have already concluded in May 2025 that the premises had been abandoned since April 2025 and the rent at the time was well over 3 weeks in arrears in early May.
20. For those reasons, I consider it just and appropriate that the landlord’s claim for rent arrears is limited to 26 May 2025.
21. Only the claim for rent arrears to 26 May 2025 totalling $2,303.86 is proved.
22. I decline to award any further rent arrears in favour of the landlord beyond that date.
J [RESPONDENT]
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
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A snapshot of this collection — not a prediction of your case's outcome.
⚖️ What tends to weigh in cases like this
❌ Tends to be rejected
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Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The Tenancy Tribunal decided that rent arrears are limited due to the tenant's incarceration and the landlord’s delay in recovering possession.
Who was involved?
A tenant who was incarcerated since April 2025, and a social housing landlord.
How did the court decide, and why?
The court decided that the landlord failed to mitigate their loss by not taking reasonable steps to recover possession earlier when rent arrears began in May 2025.
Which laws or rules were applied?
The Residential Tenancies Act 1986, section 54 was applied.
What was the argument that mattered most?
The tenant’s incarceration and the landlord's delay in recovering possession of the property.
Was the decision for or against the person who brought the case?
For the claimant, as rent arrears were limited to a specific date.
What does this mean for someone in a similar situation?
Tenants should inform landlords about their inability to return possession due to incarceration and landlords must take reasonable steps to recover possession promptly.
What evidence or documents mattered?
Evidence of the tenant’s incarceration record and landlord's inspection reports were crucial.
Can a decision like this be appealed?
Yes, both parties can appeal within 10 working days using an Appeal form.
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.
