liability for damages
📖 What is liability for damages? Meaning and definition
In New Zealand tenancy law, 'liability for damages' refers to a tenant's responsibility to compensate a landlord for harm to the rented premises. This typically arises when damage occurs during the tenancy that is more than normal wear and tear. The landlord must first prove that the damage happened during the tenancy and exceeds fair wear and tear.
Once the landlord establishes this, the burden shifts to the tenant. To avoid liability, the tenant must then prove that neither they, nor anyone at the premises with their permission, carelessly or intentionally caused or allowed the damage. Tenants are held responsible for the actions of anyone they permit to be at the property.
If the damage is caused carelessly and occurred after 27 August 2019, specific rules under section 49B of the Residential Tenancies Act 1986 apply. In such cases, if the damage is covered by the landlord's insurance, the tenant's financial responsibility is limited to the lesser of the insurance excess or four weeks' rent. If the careless damage is not covered by insurance, the tenant's liability is capped at four weeks' rent.
📋 Requirements
- The damage must have occurred during the tenancy.
- The damage must be more than fair wear and tear.
- The tenant (or someone with their permission) must have carelessly or intentionally caused or permitted the damage, unless the tenant proves otherwise.
📝 Procedure
- Landlord files an application seeking compensation for damage.
- Landlord provides evidence (e.g., invoices, photographs, inspection reports) to prove damage occurred during tenancy and is more than fair wear and tear.
- Tenant presents evidence to prove they did not carelessly or intentionally cause or permit the damage.
- The Tenancy Tribunal assesses the evidence and determines liability and the amount of compensation, if any.
💡 Examples
- A tenant was found not liable for damage to a back door because they proved it was caused by an ex-partner trying to break in, not by someone with their permission.
- A tenant was ordered to pay for cleaning and repairs after failing to leave the premises reasonably clean and tidy at the end of their tenancy.
- A tenant agreed to pay for the proper replacement of a broken glass panel after admitting responsibility for the damage.
- If a tenant carelessly breaks a window and the landlord's insurance excess is $500, but four weeks' rent is $1,000, the tenant's liability would be limited to $500.
📚 Legal basis
- Residential Tenancies Act 1986
❓ Frequently asked questions
What is 'fair wear and tear'?
Fair wear and tear refers to the normal deterioration of a property over time from ordinary use. It is not considered damage for which a tenant is liable.
Am I liable for damage caused by my guests?
Yes, tenants are liable for damage caused by people at the premises with their permission, whether the damage was caused carelessly or intentionally.
What if I didn't cause the damage?
If the landlord proves damage occurred during your tenancy and is more than fair wear and tear, you can avoid liability by proving that you, or anyone with your permission, did not carelessly or intentionally cause or permit the damage.
Is there a limit to how much I have to pay for careless damage?
For careless damage occurring after 27 August 2019, your liability is limited. If the landlord's insurance covers it, you pay the lesser of the insurance excess or four weeks' rent. If not insured, your liability is capped at four weeks' rent.
What kind of proof does a landlord need to show damage?
Landlords typically use invoices, photographs, and final property inspection reports to support claims for damage and cleaning.
What if I reported the damage to the police?
Reporting incidents to the police can be part of your evidence to show that damage was not caused by you or someone with your permission, as seen in a case where a tenant was not liable for damage caused by an ex-partner.