Tribunal Reduces Fixed-Tenancy Term Due to Severe Hardship

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[2025] NZTT 5179111, 5157291

TENANCY TRIBUNAL AT AUCKLAND | TE TARAIPIUNARA RETIHANGA KI TĀMAKI MAKAURAU

APPLICANT: [redacted]

Landlord

RESPONDENT: [redacted]

Tenant

TENANCY ADDRESS: Unit/[ADDRESS], [POSTCODE], Zest

ORDER

1. The term of the fixed-term tenancy of [NAME] at Unit/[ADDRESS], [POSTCODE], Zest is reduced and now ends at 5pm on 25 April 2025.

2. [NAME] must pay [COMPANY] As Agent For [COMPANY] $3,375.00 immediately, as set out in table below.

Description Landlord Tenant Rent arrears to 11 April 2025 $3,375.00 Total award $3,375.00 Total payable by Tenant to Landlord $3,375.00

Reasons:

1. Both parties attended the hearing.

2. The tenant has applied for reduction of the fixed-term tenancy due to end on 2 August 2025. The tenant wishes for the tenancy to end a week from today, ie., on 18 April 2025.

3. The landlord is prepared to reduce the term of the tenancy to 2 May 2025 on condition that a breakfee of $300.00 is paid. The fee would be for the landlord to readvertise the premises and associated administration fees.

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4. Pursuant to section 66(1) Residential Tenancies Act 1986 (‘RTA’), the Tribunal may reduce a fixed term tenancy where:

a. there has been an unforeseen change in the applicant’s circumstances; and

b. there would be severe hardship to the applicant if the term is not reduced; and

c. the applicant’s hardship would be greater than the hardship to the other party if the term is reduced. See section 66(1) Residential Tenancies Act 1986.

5. On the face of it, there has not been an unforeseen change in the tenant's circumstances. The tenant’s evidence is simply that the premises proved to be unsuitable and uninhabitable. The noise levels from downtown construction works were unbearable. The showered leaked when they first moved in and there is a hole in the ceiling from where an extractor fan use to be located. The fridge was not working properly, causing the tenant’s food and milk to go bad within the first few days of the tenant living there.

6. The landlord has since repaired the fridge and the leak in the shower. I consider that while the repairs had been undertaken with reasonable promptitude, the cumulative effect of the faulty items in the premises discovered at the start of the tenancy and very noisy city living environment had resulted in the tenant wanting to break the lease immediately.

7. In effect, there has now been an unforeseen change in the tenant's circumstances which rendered their continued residence at the premises unbearable.

8. I am satisfied that the tenant would suffer severe hardship if the term of the tenancy were not reduced.

9. The landlord too would suffer hardship if the term is reduced. The landlord would have to readvertise the premises to relet the property. The landlord may not be able to find replacement tenants.

10. However, I find that the tenant’s hardship would be greater than the landlord’s hardship.

11. Having regard to substantial merits and justice of the case, I order the reduction of the fixed-term tenancy to 25 April 2025.

12. Section 85 RTA requires the Tribunal to 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.

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13. I consider this timeframe to be fair to both parties and the landlord can now readvertise the premises. The tenant must give reasonable access to the landlord to show the premises to prospective tenants.

14. Ideally, the landlord should have 3 weeks to readvertise to have a better chance of securing replacement tenants. However, I consider the tenant’s living conditions such that a shortened period of 2 weeks would be fair and reasonable to both parties under the circumstances.

15. Where the Tribunal reduces a fixed-term tenancy, it may order the tenant to pay the landlord reasonable compensation for any resulting loss. See section 66(2) Residential Tenancies Act 1986.

16. The rent is in arrears presently. The tenant must pay the rent arrears without further delay.

17. The tenant must also pay rent to the end of the (now reduced) tenancy on 25 April 2025.

18. The landlord’s claim for a breakfee or reletting fee of $300.00 is to be set-off against the tenant’s stress and inconvenience suffered from the faulty fridge and shower/toilet, and loss of quiet enjoyment while living at the premises. For those reasons, I decline the landlord’s claim for reletting fees.

19. Only the amounts ordered are proved. The remaining claims by both parties are dismissed.

[NAME]

11 April 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: