costs
📖 What is costs? Meaning and definition
In New Zealand tenancy law, 'costs' often relate to financial outlays made by landlords or tenants during a dispute that is brought before the Tenancy Tribunal. These can include various expenses such as rent arrears, repair costs for damages, cleaning fees, and even the reimbursement of filing fees for the application itself. The Tribunal decides who is responsible for these costs, and the amount payable can be offset by other factors, such as a bond held by the landlord.
For example, a landlord might claim costs for repairs to a window or a wood burner, or for cleaning services needed after a tenant vacates a property. Similarly, a tenant might have costs related to a dispute. The Tribunal will assess these claims, often based on invoices and quotations provided by the party seeking reimbursement. It's important that the party against whom costs are claimed has received reasonable notice of these claims.
Sometimes, a dispute might be settled before a hearing, leaving only the matter of costs to be decided by the Tribunal. In such cases, the Tribunal may determine that 'costs to lay where they fall,' meaning each party bears their own expenses and no reimbursement is ordered. The final award of costs can be substantial, as seen in cases where tenants are ordered to pay thousands of dollars for damages and associated expenses.
📋 Requirements
- A party must make an application to the Tenancy Tribunal.
- The party claiming costs must provide evidence, such as invoices and quotations, to support their claims.
- The party against whom costs are claimed must receive reasonable notice of the claims.
- The Tribunal must determine that the costs are legitimate and attributable to the other party's actions or inactions.
📝 Procedure
- A landlord or tenant files an application with the Tenancy Tribunal, which may include claims for various costs.
- The applicant provides supporting documents like invoices and quotations for the claimed costs.
- The other party is notified of the claims and has an opportunity to respond.
- The Tenancy Tribunal adjudicator considers the evidence and arguments from both parties, often in a hearing.
- The adjudicator issues an order specifying which costs, if any, are to be paid by one party to the other, sometimes deducting amounts like a bond.
💡 Examples
- A tenant was ordered to pay a landlord $8,618.99, which included rent arrears, window repairs, wood burner costs, cleaning, lock replacement, and the filing fee.
- A landlord's application for end of tenancy costs included claims for rent arrears and various damages, supported by invoices and quotations.
- A company succeeded with its claim, leading to the reimbursement of its filing fee by the other party.
- An application for costs was declined, with the Tribunal ordering that 'costs to lay where they fall' after the underlying dispute was settled before the hearing.
❓ Frequently asked questions
What kinds of expenses are typically included in 'costs' in a tenancy dispute?
Costs can cover a range of expenses such as unpaid rent (rent arrears), repairs for damage to the property, cleaning fees, replacement of locks or keys, and even the reimbursement of the application filing fee paid to the Tenancy Tribunal.
Can a bond be used to cover costs awarded against a tenant?
Yes, a bond held by the landlord can be deducted from the total costs awarded against a tenant, reducing the amount the tenant has to pay directly.
What happens if the underlying dispute is settled before the hearing?
If the main dispute is settled, the Tenancy Tribunal may still need to decide on the matter of costs. Sometimes, the Tribunal will order that 'costs to lay where they fall,' meaning each party pays their own expenses.
Do I need to provide proof for the costs I am claiming?
Yes, it is crucial to provide evidence such as invoices, quotations, or receipts to support any costs you are claiming. The Tribunal relies on these documents to assess the legitimacy and amount of the claims.
What if I disagree with a Tenancy Tribunal decision about costs?
If you believe a substantial wrong or miscarriage of justice has occurred regarding a decision, including those about costs, you can apply for a rehearing. This is not granted just because you disagree with the outcome.
Can I claim costs if I am a landlord and the tenant vacated the property?
Yes, landlords can claim 'end of tenancy costs' for damages or outstanding rent after a tenant has vacated the premises, provided they have evidence to support these claims.