weekly payments
📖 What is weekly payments? Meaning and definition
In New Zealand tenancy law, weekly payments are a common method for tenants to repay outstanding debts to their landlord, particularly rent arrears and filing fees. The Tenancy Tribunal can order a tenant to make these payments at a specific rate per week, with a clear start date and ongoing schedule until the debt is fully settled. These payments often cover both ongoing rent and a portion allocated to the debt.
The Tribunal's orders typically specify how the payments are to be allocated, for example, prioritising current rent before rent arrears and then filing fees. This structured repayment plan aims to help tenants manage their debt while also ensuring landlords receive the money owed to them. The orders also include important conditions about what happens if a payment is missed.
A key aspect of these orders is the consequence of non-payment. If a tenant fails to make a weekly payment within a specified timeframe (often two working days of the due date), the entire remaining balance of the debt can become immediately payable. This means the landlord can then pursue the full outstanding amount through the District Court, rather than waiting for the weekly instalments to conclude. However, tenants are usually not prevented from repaying the debt earlier if they are able to.
These payment arrangements are often made after a Tenancy Tribunal hearing where both parties have presented their case, and the amount of debt is agreed upon or proven. The Tribunal aims to create a manageable repayment schedule, but it is crucial for tenants to adhere to the terms to avoid further legal action.
📋 Requirements
- A debt must be owed by the tenant to the landlord, such as rent arrears and/or filing fees.
- The Tenancy Tribunal must issue an order specifying the weekly payment amount.
- The order must define the start date and frequency of payments (e.g., every Friday or Thursday).
- The order typically specifies how payments will be allocated (e.g., rent first, then arrears, then filing fee).
- The order includes a condition for immediate payment of the balance if weekly payments are missed.
📝 Procedure
- The landlord applies to the Tenancy Tribunal for rent arrears and/or other outstanding amounts.
- A hearing is held, often with both the landlord and tenant attending.
- The Tenancy Tribunal determines the total debt owed by the tenant.
- The Tribunal issues an order for the tenant to pay the debt through weekly payments, specifying the amount, frequency, and allocation.
- The tenant begins making the specified weekly payments on the due dates.
- If payments are missed, the full balance of the debt becomes immediately payable and can be enforced through the District Court.
💡 Examples
- A tenant is ordered to pay $565.97 in rent arrears and a filing fee at a rate of $50.00 per week, with the first payment due on a specific Friday and continuing every Friday until the debt is paid.
- A tenant must pay $1,699, comprising rent arrears and a filing fee, through weekly payments of $620, which includes $560 for ongoing rent and $60 towards the debt, with payments allocated to rent first.
- A tenant owes $482.96 in rent arrears and is ordered to make 9 weekly payments of $208.00 (covering $158.00 for rent and $50.00 for the debt), followed by a final payment of $190.96, with payments due every Thursday.
- If a tenant misses a weekly payment for rent and rent arrears within two working days of the due date, the remaining balance of the entire debt becomes immediately due and can be pursued in the District Court.
❓ Frequently asked questions
What happens if I miss a weekly payment?
If you miss a weekly payment within two working days of its due date, the entire remaining balance of your debt usually becomes immediately payable. This means the landlord can then pursue the full amount through the District Court.
Can I pay off the debt earlier than the weekly payment schedule?
Yes, Tenancy Tribunal orders for weekly payments typically do not prevent you from repaying the debt earlier if you are able to do so. This can help you clear the debt faster and avoid ongoing obligations.
How are my weekly payments allocated if I owe both rent and arrears?
The Tenancy Tribunal order will specify the allocation. Commonly, payments are allocated first to current rent, then to rent arrears, and finally to any filing fees, ensuring your ongoing tenancy is maintained while the debt is reduced.
What kind of debts can be repaid through weekly payments?
Based on the cases, weekly payments are primarily used to repay rent arrears and filing fees associated with Tenancy Tribunal applications. The Tribunal determines the specific amounts and repayment structure.
Do I have to attend a hearing for weekly payments to be ordered?
Yes, typically both parties attend a Tenancy Tribunal hearing where the debt is confirmed, and the Tribunal then issues an order detailing the weekly payment schedule. This ensures both sides have a chance to present their case.