If you are a landlord and don’t know your obligations under the Residential Tenancies Act 1986 (“RTA”), there are many traps that can make you fall foul of the RTA; including those which are deemed unlawful acts and have significant awards available to the tenant (see Schedule 1A to the RTA for a list of awards available for this). Some examples of breaches by landlords, and even property managers, can include:
i. Failing to provide the tenant with a written tenancy agreement;
ii. Failure to lodge the bond;
iii. Being in breach of the stringent Healthy Homes standards e.g. lack of insulation, no extraction fan in the kitchen insufficient heat source (this offence can have an award in favour of the tenant totalling $7,200);
iv. Giving retaliatory notice: e.g. if a tenant has breached the agreement by smoking on the premises and then you terminate saying you or a relative is moving in or you are renovating (so that it’s clear that you aren’t following the correct breach notice under the RTA);
v. Illegally demanding or accepting compensation for full repair costs from a tenant when a landlord can claim no more than four weeks’ rent or the landlord’s insurance excess- whichever is lower.
vi. Failure to provide working smoke alarms.
If you have a property manager overseeing your tenancy, their actions do not absolve you of responsibility. If the property manager breaches the Residential Tenancies Act (RTA), you can still be held liable and may be required to pay damages to the tenant.
Tenancy disputes can arise for various reasons in New Zealand, ranging from rent arrears to property maintenance issues. Understanding the legal framework governing residential tenancies is crucial for both landlords and tenants to navigate these disputes effectively. Below we provide an overview of tenancy laws in New Zealand and offers guidance on how to address and resolve common disputes.
Obligations of the parties
Obligations of the parties to a residential tenancy are governed by Part 2 of the RTA.
Obligations of Landlords: Landlords have a legal duty to provide a safe, clean, and habitable property for tenants. This includes ensuring the property meets healthy homes standards, maintaining essential services, and attending to necessary repairs.
Obligations of Tenants: Tenants are responsible for paying rent on time, keeping the property reasonably clean, and notifying the landlord of any necessary repairs. They are also expected to respect the property and its surrounding environment.
Common Tenancy Disputes and Resolutions
Rent Arrears: Disputes often arise when tenants fall behind on rent payments. Landlords can issue a 14-day notice to remedy the breach, giving tenants the opportunity to pay the outstanding amount. If the issue persists, landlords can apply to the Tenancy Tribunal for an order to terminate the tenancy.
Property Maintenance and Repairs: When a property requires maintenance or repairs, tenants should notify the landlord promptly. If the landlord fails to address the issue within a reasonable timeframe, tenants can apply to the Tenancy Tribunal for a work order or rent reduction.
Breach of Quiet Enjoyment: Tenants have the right to "quiet enjoyment" of the property. If a landlord repeatedly enters the property without proper notice, or if a tenant's peaceful enjoyment is disrupted, a dispute may arise.
Abandonment of Chattels: If a tenant abandons the property or leaves behind personal belongings, the landlord must follow specific procedures outlined in the RTA. Failure to do so may result in legal consequences.
Damages to Premises: If tenants or their guests carelessly damage a rental property, they are liable for the cost of the damage up to 4 weeks’ rent or the landlord’s insurance excess (if applicable), whichever is lower. Tenants on income-related rents will be liable for careless damage up to 4 weeks’ market rent or the insurance excess (if applicable), whichever is lower. Landlords can’t ask for or accept more than that limit. The principles on who is responsible for damages is set out in sections 49A-E of the RTA.
Termination of Tenancy: Disagreements can occur when either party wishes to terminate the tenancy. Proper notice must be given, and specific procedures outlined in the RTA must be followed.
The Role of the Tenancy Tribunal
The Tenancy Tribunal is the primary forum for resolving tenancy disputes in New Zealand. It provides a relatively informal and accessible process for both landlords and tenants to present their cases. Decisions made by the Tribunal are legally binding.
The Tenancy Tribunal also provide mediation services to help landlords and tenants resolve disputes in a cooperative and non-confrontational way.
Conclusion
Navigating tenancy disputes in New Zealand requires a thorough understanding of the RTA and its provisions. Open communication, adherence to legal obligations, and, when necessary, seeking resolution through the Tenancy Tribunal are essential steps in resolving disputes effectively. Both landlords and tenants should familiarise themselves with their rights and responsibilities to ensure a fair and harmonious tenancy arrangement.
Should you be concerned that you may not be complying with the RTA in your residential tenancy/s, please contact us for advice on your obligations under the RTA.
If you find that you are a respondent in the Tenancy Tribunal, or you need to take steps in the Tribunal to claim rent arrears, other damages, or get an order terminating the tenancy, we can assist with the legal advice and preparation involved with those processes. If the quantum claimed is over the sum of $6,000 (or the other party consents) we can also appear in the Tenancy Tribunal as your legal representative.
By Michael Ritter | Solicitor
The information contained in this article is provided for informational purposes only and should not be construed as legal advice on any subject matter.
