Termination of Tenancy Due to Persistent Rent Arrears
📌 In brief
The Tenancy Tribunal decided to terminate the tenancy of a tenant who had a history of late rent payments. Even though the tenant had paid off previous arrears and was compensated for losses, the Tribunal considered the consistent pattern of late payments and ongoing communication issues, leading to the termination of the tenancy.
⚖️ Legal holding
A tenant whose rent arrears have been consistently late cannot prevent termination if they have a history of non-payment.
📖 What the law says
This section states that the Tenancy Tribunal must end a tenancy if the landlord applies and the rent was at least 21 days late when the application was made. It also allows termination if the tenant has caused or threatened significant damage to the property, or has assaulted or threatened the landlord or their family/agent.
Plain-English explanation — does not replace advice from a lawyer.
📖 Technical summary
The tenancy was terminated due to persistent rent arrears despite compensation for past losses.
📜 Headnote Official document
The Tenancy Tribunal terminated the tenancy of a tenant due to persistent rent arrears, despite the tenant having paid past arrears and being compensated for losses. The Tribunal considered the tenant's history of non-payment and ongoing communication issues, leading to the conclusion that termination was necessary.
📚 Full judgment Official document
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[2025] NZTT 5133023
TENANCY TRIBUNAL - Video Location
APPLICANT: [redacted]
Landlord
RESPONDENT: [redacted]
Tenant
TENANCY ADDRESS: [ADDRESS], [POSTCODE]
ORDER
1. The tenancy of [NAME] at [ADDRESS], [POSTCODE] is terminated, and possession is granted to [COMPANY], at 11:59pm 21 March 2025.
2. [NAME] to pay [COMPANY] $27.00 immediately for filing fee reimbursement.
Reasons:
1. Both parties attended the hearing.
2. The landlord has applied for termination of the tenancy.
3. Rent was at least 21 days in arrears on the date the application was filed. Pursuant to s55(1)(a) of the Residential Tenancies Act 1986 (RTA) the Tribunal shall make an order terminating the tenancy if the rent was at least 21 days in arrears on the date the application was filed.
4. The Tribunal may only refuse to make such an order, if satisfied that the breach has been remedied, the landlord has been compensated for any loss arising from the breach, and it is unlikely that the tenant will commit any further similar breach. See section 55(2) RTA.
5. The rent arrears have now been paid and are in credit, and accordingly the landlord has been compensated for their loss. The tenant advises that he will
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set up a redirection from work and income for future rent to ensure that there are never any arrears. This redirection is not yet in place or approved. As the rent records show a consistent pattern of arrears and there have been ongoing communication issues regarding the rent arrears, I am unable to satisfy myself that that tenant will not commit any further breaches with respect to rent arrears.
6. Therefore, the tenancy is terminated.
7. I have set the possession date as 21 March 2025 to enable to the tenant sufficient time to find another property.
8. [COMPANY] has wholly succeeded with the claim I must reimburse the filing fee.
[NAME]
21 February 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:
⚖️ What tends to weigh in cases like this
✅ Tends to be accepted
- The rent arrears have been paid and the landlord has been compensated for their loss.
- The tenant has a consistent pattern of rent arrears over time.
- There have been ongoing communication issues regarding the rent arrears.
❌ Tends to be rejected
- The tenant's promise to set up a redirection from work and income for future rent payments was not considered sufficient assurance.
- The tenant's history of non-payment and consistent late payments was deemed unlikely to change.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The Tenancy Tribunal decided to terminate the tenancy of a tenant due to persistent rent arrears.
What was the dispute about?
The dispute was about whether the tenancy should be terminated due to the tenant's persistent late rent payments.
How did the court decide, and why?
The court decided to terminate the tenancy because the tenant had a consistent pattern of late rent payments and ongoing communication issues regarding rent arrears.
Which laws or rules were applied?
The Residential Tenancies Act 1986, sections 55(1)(a) and 55(2) were applied.
What was the argument that mattered most?
The argument that mattered most was the tenant's consistent pattern of late rent payments and ongoing communication issues regarding rent arrears.
Was the decision for or against the person who brought the case?
The decision was for the landlord who brought the case.
What does this mean for someone in a similar situation?
For someone in a similar situation, if they have a history of late rent payments and ongoing communication issues, it may be difficult to prevent termination of their tenancy.
What evidence or documents mattered?
The judgment mentions the history of rent arrears and ongoing communication issues regarding rent arrears.