Tribunal Rejects Early Termination Fee Claim
📌 In brief
The Tenancy Tribunal dismissed the landlord's claim for an early termination fee because the landlord failed to provide an itemised account to the tenant. The Tribunal awarded rent arrears and water charges based on consumption.
⚖️ Legal holding
A landlord cannot recover an early termination fee without providing an itemised account to the tenant.
📖 What the law says
This rule allows a tenant to ask the Tenancy Tribunal to cancel a notice from their landlord ending the tenancy. The tenant must do this within 14 working days if they believe the landlord gave the notice because the tenant used their rights or complained about the tenancy.
Plain-English explanation — does not replace advice from a lawyer.
📖 Technical summary
The Tribunal dismissed the landlord's claim for an early termination fee and awarded rent arrears and water charges.
📜 Headnote Official document
The Tenancy Tribunal dismissed the landlord's claim for an early termination fee due to insufficient evidence. The Tribunal awarded rent arrears and water charges based on consumption.
📚 Full judgment Official document
__________________________________________________________________________________ 5167934 1
[2025] NZTT 5167934
TENANCY TRIBUNAL AT REMOTE LOCATION | TE TARAIPIUNARA RETIHANGA
APPLICANT: [redacted]
Landlord
RESPONDENT: [redacted]
Tenant
TENANCY ADDRESS: [ADDRESS], [POSTCODE]
ORDER
1. [COMPANY] is to pay $869.12 from the bond of $2,760.00 (6526763-005) to [COMPANY] As Agents For [COMPANY]. immediately.
Description Landlord Rent arrears $640.71 Water rates $201.41 Filing fee reimbursement $27.00 Total award $869.12 Bond $869.12
2. The balance of the bond of $1,890.88 is to remain at [COMPANY].
3. The landlord’s claim for an early termination fee is dismissed.
Reasons:
1. A representative of the landlord attended the hearing.
__________________________________________________________________________________ 5167934 2
2. The tenant did not attend by the video link provided in the Notice of Hearing and did not answer a call to his mobile made during the hearing.
3. The landlord had applied for termination of the tenancy and rent arrears. Before the hearing, the tenancy ended by agreement and the landlord amended its claim to include an early termination fee.
4. It is disingenuous for a landlord to apply for termination and then seek to recover an early termination fee. A landlord may recover expenses incurred in respect to an assignment, a subletting, parting with possession or termination under Section 50(1)(d). A landlord must provide an itemised account to the tenant before seeking to recover any such expenses. The landlord did not provide evidence of an itemised account being sent to the tenant, rather it showed a sample email which it says is the same as would have been sent to the tenant. The invoice sent to the tenant was not itemised.
5. The landlord has the onus of proving its claims and has not established that it is entitled to recover costs for the early termination of this tenancy. That part of the claim is dismissed.
6. The landlord has applied for rent arrears and has provided rent records which prove the amount owing. I award the amount claimed of $640.71 to 3 March 2025.
7. The landlord also claimed water rates. A tenant is responsible for all outgoings in respect of the premises that are exclusively attributable to their occupation of the premises or to their use of the facilities (see s 39(3) RTA). Therefore, tenants are only liable for the electricity, gas, telephone and internet they use, and for water charges based on consumption (s 39(4) RTA). They are not liable for fixed water charges.
8. The landlord’s claim included fixed water charges. When those costs are removed, and the claim is based solely on consumption/usage the amount owing is $201.41 to the end of the tenancy. I have made an order accordingly.
9. The landlord attempted to raise other matters at the hearing. The landlord’s representative submitted other documents relating to this tenancy yesterday but had not advised Tenancy Services or the Tribunal that it wished to amend the application. Hearing time is scheduled by reference to the matters stated in the application. The other party is entitled to be informed of the claims against it.
10. It is not enough for a party to add additional documents to a file the day before the hearing and attempt to amend its claim at the hearing. Proper notice must be given of what is being claimed. I declined to amend the landlord’s claim.
__________________________________________________________________________________ 5167934 3
11. As the landlord was partially successful, I have awarded reimbursement of the Tribunal application fee. I do not consider that the landlord was substantially successful, so have not granted its request for suppression.
R Morgan
08 April 2025
__________________________________________________________________________________ 5167934 4
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/
__________________________________________________________________________________ 5167934 5
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 landlord provided rent records proving the amount of rent arrears.
- The tenant is responsible for water charges based on consumption.
- The landlord successfully claimed reimbursement for the Tribunal application fee.
❌ Tends to be rejected
- The landlord tried to recover an early termination fee without providing an itemised account to the tenant.
- The landlord attempted to include fixed water charges in the claim, which the tenant is not liable for.
- The landlord tried to amend the claim at the hearing without proper notice to the other party.
Patterns observed in similar cases in this collection — every case is unique.
❓ Frequently asked questions
What did this decision decide?
The Tenancy Tribunal dismissed the landlord's claim for an early termination fee and awarded rent arrears and water charges.
What was the dispute about?
The dispute was about whether the landlord could collect an early termination fee and if the tenant owed rent arrears and water charges.
How did the court decide, and why?
The court decided to dismiss the early termination fee claim because the landlord did not provide an itemised account to the tenant, as required by law.
Which laws or rules were applied?
The Residential Tenancies Act 1986, section 54 was applied.
What was the argument that mattered most?
The argument that mattered most was that the landlord must provide an itemised account to the tenant before seeking to recover costs for early termination.
Was the decision for or against the person who brought the case?
The decision was against the landlord who brought the case.
What does this mean for someone in a similar situation?
For someone in a similar situation, the landlord must provide an itemised account to the tenant before attempting to recover costs for early termination.
What evidence or documents mattered?
The evidence that mattered was the lack of an itemised account provided to the tenant by the landlord.