unpaid rent
📖 What is unpaid rent? Meaning and definition
Unpaid rent, also known as rent arrears, is a common issue in New Zealand tenancies. It occurs when a tenant fails to pay their rent as agreed in the tenancy agreement. The Tenancy Tribunal frequently deals with cases involving unpaid rent, often alongside other issues such as property abandonment.
When a tenant has unpaid rent, the landlord can apply to the Tenancy Tribunal for an order requiring the tenant to pay the outstanding amount. The Tribunal will calculate the total amount owed up to a specific date, which might be the date of the hearing or a future date if the tenancy is being terminated. In some cases, the bond held by the Bond Centre may be used to offset some of the unpaid rent.
If a tenancy is terminated due to unpaid rent, the Tribunal will issue an order for the tenant to pay the landlord the calculated arrears immediately. This can happen even if the tenant does not attend the hearing, provided they were properly notified. The landlord may also be awarded other costs, such as filing fees or water rates, in addition to the unpaid rent.
📋 Requirements
- A valid tenancy agreement exists between a landlord and a tenant.
- Rent payments are due on specific dates as per the agreement.
- The tenant has failed to pay the agreed rent by the due date.
- The landlord has applied to the Tenancy Tribunal to recover the unpaid rent.
📝 Procedure
- The landlord applies to the Tenancy Tribunal.
- The tenant is served with notice of the hearing.
- A hearing is held, potentially in the tenant's absence if they do not attend after proper notification.
- The Tenancy Tribunal calculates the amount of unpaid rent (rent arrears) owed by the tenant.
- The Tribunal issues an order for the tenant to pay the landlord the determined amount immediately.
- The Tribunal may also order the Bond Centre to pay the bond to the landlord to cover some of the arrears.
💡 Examples
- A tenant failed to pay their weekly rent for several weeks, accumulating $2,061.14 in rent arrears, leading the landlord to apply to the Tenancy Tribunal for termination of the tenancy and payment.
- After a tenancy was terminated due to abandonment, the landlord was awarded $423.00 for unpaid rent and other costs, with the bond also being paid to the landlord.
- A landlord sought to recover $9,429.29 in rent arrears up to a specific date, along with water rates and a filing fee, from a tenant through the Tenancy Tribunal.
- The Tenancy Tribunal ordered a tenant to pay a landlord $8,018.42 immediately, which included rent arrears calculated up to the termination date of the tenancy.
❓ Frequently asked questions
What happens if I don't pay my rent in New Zealand?
If you don't pay your rent, your landlord can apply to the Tenancy Tribunal for an order requiring you to pay the outstanding amount. The Tribunal can also terminate your tenancy and grant possession of the property back to the landlord.
Can my bond be used to cover unpaid rent?
Yes, the Tenancy Tribunal can order the Bond Centre to pay your bond to the landlord to cover unpaid rent (rent arrears) and other costs you might owe.
What is 'rent arrears'?
Rent arrears is another term for unpaid rent. It refers to the total amount of rent that a tenant owes to a landlord because it has not been paid by the due date.
Will I still have to pay unpaid rent if my tenancy is terminated?
Yes, even if your tenancy is terminated, the Tenancy Tribunal will typically order you to pay any outstanding rent arrears to your landlord immediately.
What if I don't attend the Tenancy Tribunal hearing about unpaid rent?
If you are properly served with notice of the hearing but do not attend, the Tenancy Tribunal can still proceed with the hearing in your absence and make an order for you to pay the unpaid rent.
Can other costs be added to the unpaid rent I owe?
Yes, in addition to unpaid rent, the Tenancy Tribunal may order you to pay other costs such as water rates or the landlord's filing fee reimbursement.