compensation for damage
📖 What is compensation for damage? Meaning and definition
In New Zealand tenancy law, compensation for damage is a payment ordered to address harm that has occurred. This can involve a landlord claiming compensation from a tenant for damage to the rental property, or a tenant claiming compensation from a landlord for issues like leaks that cause damage or inconvenience. For a landlord's claim, they must demonstrate that damage occurred during the tenancy and that it was more than normal wear and tear. If this is proven, the tenant then needs to show they did not carelessly or intentionally cause or allow the damage.
Tenants are also responsible for damage caused by people they allow onto the premises. If the damage is due to carelessness and occurred after 27 August 2019, specific legal principles apply. The Tenancy Tribunal often assesses claims for compensation for various types of damage, such as repairs to decks, gates, or replacing items like remote controls and keys.
Conversely, tenants can also seek compensation. For instance, a tenant might be awarded compensation for a toilet leak that was not fixed for an extended period, leading to inconvenience or higher water bills. Another example is a tenant receiving compensation and work orders for damage caused by a leak originating from another unit, impacting their living conditions.
📋 Requirements
- Damage to the premises occurred during the tenancy.
- The damage is more than fair wear and tear.
- For careless damage after 27 August 2019, specific legal principles apply.
- Tenants are liable for damage caused by people at the premises with their permission.
- For a tenant's claim, there must be a demonstrable loss or inconvenience due to the landlord's failure or a defect.
📝 Procedure
- The landlord or tenant files a claim for compensation with the Tenancy Tribunal.
- Both parties attend a hearing, often by telephone.
- The landlord presents evidence to prove damage occurred and its cost.
- The tenant presents evidence to dispute liability or to prove their own claim for compensation.
- The Tribunal Member considers the evidence and legal principles to make an order for payment.
💡 Examples
- A tenant was ordered to pay $368.00 for deck repair due to burns and $3,116.50 for front gate repairs caused by their dogs.
- A tenant received $153.47 in compensation because a toilet leak at their rental property was not fixed for 16 weeks.
- A landlord was awarded $230.00 for rubbish removal costs and $95.00 for a replacement remote control.
- A unit owner's family member sought work orders and compensation for damage to their unit caused by a leak from an upstairs unit, which forced an elderly relative to move out.
📚 Legal basis
- sections 40(2)(a), 41 and 49B of the RTA
❓ Frequently asked questions
What is 'fair wear and tear' and how does it relate to compensation for damage?
Fair wear and tear is the natural deterioration of a property over time from normal use. Landlords cannot claim compensation for fair wear and tear. Compensation for damage only applies to harm that goes beyond this normal deterioration, such as accidental or intentional damage.
Can a landlord claim compensation for damage caused by my guests?
Yes, tenants are legally responsible for damage caused by any person they allow onto the premises. If your guests cause damage that is more than fair wear and tear, you could be liable for compensation.
What if the damage was accidental?
If damage is careless (accidental) and occurred after 27 August 2019, specific legal principles apply regarding liability. The landlord must still prove the damage occurred and was more than fair wear and tear, and the tenant would need to prove they did not carelessly cause or permit it to avoid liability.
Can I claim compensation from my landlord?
Yes, tenants can claim compensation from landlords. For example, if a landlord fails to fix a significant issue like a leak in a timely manner, and this causes you loss or inconvenience, you may be able to claim compensation for that impact.
What kind of evidence do I need to prove a claim for compensation?
To prove a claim, you would typically need evidence such as photos or videos of the damage, repair quotes or invoices, communication records with the other party, and any other documents that show when the damage occurred and its extent. For tenant claims, evidence of the impact on your living situation or costs incurred is important.