liability
📖 What is liability? Meaning and definition
In New Zealand tenancy law, liability typically arises when damage occurs to a rented property during a tenancy. For a landlord to claim compensation, they must first prove that the damage happened during the tenancy and is more than normal wear and tear. If this is established, the tenant can avoid liability by proving that they, or anyone they allowed onto the property, did not cause or permit the damage carelessly or intentionally.
Tenants are responsible for the actions of anyone they permit to be at the premises. This means if a friend or family member causes damage, the tenant can be held liable. The Residential Tenancies Act 1986 outlines specific conditions for liability, including different limits depending on whether the damage was careless or intentional.
For careless damage that occurred after 27 August 2019, if the landlord's insurance covers the damage, the tenant's liability is capped at the lesser of the insurance excess or four weeks' rent. If careless damage is not covered by insurance, the tenant's liability is limited to four weeks' rent. However, these limits do not apply if the damage was intentional or resulted from an imprisonable offence, in which case the tenant may be liable for the full cost of repairs.
📋 Requirements
- Landlord proves damage occurred during tenancy and is more than fair wear and tear.
- Tenant (or someone with their permission) caused or permitted the damage.
- Damage was either careless or intentional.
📝 Procedure
- Landlord makes a claim for damage to the premises.
- Landlord provides proof that damage occurred during the tenancy and is more than fair wear and tear.
- Tenant may attempt to prove they did not carelessly or intentionally cause or permit the damage.
- The Tenancy Tribunal assesses whether the damage was careless or intentional and applies the relevant liability limits under the Residential Tenancies Act 1986.
💡 Examples
- A tenant's friend accidentally knocks a hole in the wall while visiting, and the tenant is found liable for the repair costs.
- Damage to a kitchen wall is proven to be more than fair wear and tear, and the tenant is unable to show it wasn't caused carelessly, leading to liability.
- An occupant allowed by the tenant deliberately sets a fire, causing extensive damage, and the tenant is held fully liable due to the intentional nature of the act and its link to an imprisonable offence.
- A landlord claims for damage to a small bedroom, and the tenant does not dispute the damage, accepting liability.
📚 Legal basis
- Residential Tenancies Act 1986
❓ Frequently asked questions
What is the difference between careless and intentional damage?
Careless damage results from a lack of care, negligence, or lack of forethought, similar to the standard of care a reasonable tenant would exercise. Intentional damage means the act was done on purpose to cause harm or an explosion.
Am I always liable for damage caused by my guests?
Yes, tenants are generally liable for damage caused by people they allow to be at the premises, whether the damage was careless or intentional.
Are there limits to how much I can be liable for?
For careless damage, your liability is usually limited to the lesser of the landlord's insurance excess or four weeks' rent. However, there are no statutory limits for intentional damage or damage resulting from an imprisonable offence.
What if the landlord doesn't have insurance for the damage?
If the damage is careless and not covered by the landlord's insurance, your liability is limited to four weeks' rent. For intentional damage, the landlord's lack of insurance does not cap your liability.
How can I prove I wasn't careless or intentional?
You would need to present evidence to the Tenancy Tribunal showing that you, or anyone at the premises with your permission, did not cause or permit the damage carelessly or intentionally. This could involve witness statements, photos, or other relevant documentation. It's often best to consult with a qualified lawyer to discuss your specific situation and evidence.