breach of obligations
📖 What is breach of obligations? Meaning and definition
In New Zealand tenancy law, a 'breach of obligations' typically means a tenant has not upheld their duties as outlined in the Residential Tenancies Act 1986 or their specific tenancy agreement. This can include, but is not limited to, failing to pay rent on time or not paying other agreed-upon charges like water rates. When a landlord believes a tenant has breached their obligations, they may apply to the Tenancy Tribunal for a resolution.
One common and serious type of breach is rent arrears. If a tenant's rent is at least 21 days overdue by the date of a Tenancy Tribunal hearing, the Tribunal is legally required to terminate the tenancy. This is a mandatory outcome under sections 55 and 56(2) of the Residential Tenancies Act 1986, regardless of other circumstances.
Beyond termination, the Tribunal will also determine how much the tenant owes the landlord due to the breach. This can include the overdue rent, water rates, and the reimbursement of the landlord's application fee for the Tribunal hearing. The Tribunal relies on records provided by the landlord, such as rent records and water rates invoices, to prove the amounts owing.
Even if a tenant does not attend the hearing, the Tribunal can still proceed with the case and make decisions, provided they are satisfied that the tenant received proper notice of the hearing. This ensures that disputes can be resolved efficiently, even if one party is absent.
📋 Requirements
- The tenant has failed to meet their responsibilities under the tenancy.
- Rent is at least 21 days in arrears on the hearing date for mandatory termination.
- The landlord has applied to the Tenancy Tribunal for termination due to the breach.
- The tenant has been served notice of the hearing in accordance with the Residential Tenancies Act 1986.
📝 Procedure
- The landlord applies to the Tenancy Tribunal for termination of the tenancy for breach of obligations.
- The tenant is served notice of the hearing.
- The Tenancy Tribunal conducts a hearing, which may proceed in the tenant's absence if notice was properly given.
- If rent is at least 21 days in arrears, the Tribunal must terminate the tenancy.
- The Tribunal determines the amount the tenant owes, based on evidence like rent records and water rates invoices.
- The Tribunal orders the tenant to reimburse the landlord's filing fee if the landlord is successful.
💡 Examples
- A tenant fails to pay their weekly rent for over three weeks, leading the landlord to apply to the Tenancy Tribunal for termination of the tenancy.
- A landlord provides the Tenancy Tribunal with rent records showing a tenant owes $5,109.36 in overdue rent and water rates invoices for an additional $1,140.50.
- Despite being notified, a tenant does not attend their Tenancy Tribunal hearing, and the Tribunal proceeds to terminate the tenancy because rent is more than 21 days in arrears.
- A landlord successfully claims for termination due to rent arrears and is reimbursed the application fee by the tenant.
📚 Legal basis
- Residential Tenancies Act 1986
❓ Frequently asked questions
What happens if a tenant breaches their obligations by not paying rent?
If a tenant's rent is at least 21 days overdue by the date of a Tenancy Tribunal hearing, the Tribunal must terminate the tenancy. The tenant will also be ordered to pay the overdue rent and any other amounts owed, such as water rates.
Can a tenancy be terminated for reasons other than rent arrears?
The provided cases specifically highlight rent arrears as a reason for mandatory termination. While 'breach of obligations' is a broader term, these examples focus on the severe consequences of overdue rent. Other breaches may also lead to termination, but the 21-day rule applies specifically to rent.
What if I can't attend the Tenancy Tribunal hearing?
The Tenancy Tribunal can still proceed with the hearing and make decisions in your absence, provided they are satisfied that you received proper notice of the hearing. It is generally advisable to attend or request an adjournment if you have a valid reason.
Will I have to pay the landlord's application fee if I breach my obligations?
Yes, if the landlord is wholly successful in their claim against you for a breach of obligations, the Tenancy Tribunal will typically order you to reimburse the landlord for the application fee they paid to bring the case.
How does the Tenancy Tribunal determine how much I owe?
The Tribunal relies on evidence provided by the landlord, such as rent records and invoices for other charges like water rates, to prove the exact amount owing. It's important for landlords to keep accurate records.