What was the outcome of Tenancy Tribunal case 4940811?

The tribunal order states: Angela Freiden must pay Ray White Remuera Property Management Limited

How much money was awarded in case 4940811?

Filing Fee: $27.00 awarded to landlord; Rent Arrears: $21,600.00 awarded to landlord; Water Rates: $2,121.87 awarded to landlord

What type of tenancy dispute was case 4940811?

The primary dispute was Rent arrears.

Where can I read the official tribunal order for case 4940811?

The official Ministry of Justice published order is available at https://forms.justice.govt.nz/search/Documents/TTV2/PDF/10969535-Tenancy_Tribunal_Order.pdf.

What was the outcome of Tenancy Tribunal case 4940811?

The tribunal order states: Angela Freiden must pay Ray White Remuera Property Management Limited

How much money was awarded in case 4940811?

Filing Fee: $27.00 awarded to landlord; Rent Arrears: $21,600.00 awarded to landlord; Water Rates: $2,121.87 awarded to landlord

What type of tenancy dispute was case 4940811?

The primary dispute was Rent arrears.

Where can I read the official tribunal order for case 4940811?

The official Ministry of Justice published order is available at https://forms.justice.govt.nz/search/Documents/TTV2/PDF/10969535-Tenancy_Tribunal_Order.pdf.

9 Sudeley Street, Orakei, Auckland 1071 Tenancy Tribunal Case 4940811 — Rent arrears

Reasons

Claims and awards in Tenancy Tribunal application 4940811 — net $23,748.87 NZD. Amounts reconciled from the published order (claims sum and net total). Verify on MoJ.
Claim	Landlord	Reason
Rent arrears to 14/8/24	$21,600.00	Rent arrears to 14/8/24
Water rates to July 2024	$2,121.87	Water rates to July 2024
Filing fee reimbursement	$27.00	Filing fee reimbursement
Net award	$23,748.87
Total payable by Tenant to Landlord	$23,748.87

Both parties attended the hearing.

The landlord has applied for rent arrears and water rates and reimbursement of the filing fee following the end of the tenancy.

The landlord had applied for termination however the tenancy ended by agreement on 14 August 2024. By consent the application for termination is dismissed.

There is no bond held in respect of this tenancy.

How much is owed for rent and water rates?

I was told at the hearing that the tenancy was fixed term, the original fixed term period having been extended.

The tenancy ended on 14 August 2024. The landlord provided water rates invoices which prove the amount owing to July 2024 and I have ordered the full amount claimed. Mitigation of loss in relation to rent arrears

Section 49 of the Residential Tenancies Act 1986 (RTA) provides that where a party to a tenancy agreement breaches any provisions of the agreement or the RTA, the other party shall take all reasonable steps to limit damage or loss arising from that breach, in accordance with the rules of law relating to mitigation of loss or damage upon breach of contract.

This means that that they must take actions to limit any loss from a breach by the other party. When rent arrears occur, a reasonable landlord will mitigate that loss by applying to the Tenancy Tribunal to have the rent arrears paid, or the tenancy terminated.

Where rent arrears are accumulating, ordinarily, the Tribunal would expect to see an application being brought within around 6-8 weeks, 10 at the most. There is then usually a short period before the hearing can take place.

In Huang v Ashworth [2024] NZDC 15726 the District Court confirmed there is a duty to mitigate for rent arrears. The Court confirmed the test of what the landlord ought to do to mitigate its loss is a factual one and depends on whether the landlord took all reasonable steps to mitigate its loss; and more particularly, whether it acted reasonably having regard to all the circumstances of the case. In Huang v Ashworth the Court reduced the rent arrears by a third to take into account a failure to mitigate loss.

In Ho v Tenant [2024] NZTT 4875311, 27 August 2024, a recent decision in the Tribunal, the adjudicator, in applying Huang v Ashworth capped the rent arrears payable by the tenant to 12 weeks.

At the hearing I raised my concern that the landlord had failed to mitigate their loss in respect of the rent arrears and outlined recent case law.

The landlord indicated there had been communication regarding rent arrears, but when the rent fell into arrears the landlord did not take any formal steps to mitigate its loss by serving the tenant with a 14-day notice to remedy the rent arrears and did not promptly apply to terminate the tenancy.

Two rent statements were provided, one in relation to when the landlord managed the tenancy and one from when the property manager assumed responsibility for managing the tenancy. It was difficult to reconcile the two records however it appears the rent went into arrears in December 2023.

The landlord claimed $27, 257.14 for rent arrears to 14 August 2024.

Having regard to the landlords’ failure to mitigate its loss. I consider that it is appropriate to cap the rent arrears at 12 weeks and make an order for rent arrears of $21,600.00. Filing fee

Because the landlord has substantially succeeded with the claim, I have reimbursed the filing fee. Suppression

The landlord confirmed that name suppression is not sought.

Claims and awards in Tenancy Tribunal application 4940811 — net $23,748.87 NZD. Amounts reconciled from the published order (claims sum and net total). Verify on MoJ.
Claim	Landlord	Reason
Rent arrears to 14/8/24	$21,600.00	Rent arrears to 14/8/24
Water rates to July 2024	$2,121.87	Water rates to July 2024
Filing fee reimbursement	$27.00	Filing fee reimbursement
Net award	$23,748.87
Total payable by Tenant to Landlord	$23,748.87

Order

Angela Freiden must pay Ray White Remuera Property Management Limited $23,748.87 immediately, calculated as shown in table below.
The application for termination of the tenancy is dismissed.

Reasons

Both parties attended the hearing.
The landlord has applied for rent arrears and water rates and reimbursement of the filing fee following the end of the tenancy.
The landlord had applied for termination however the tenancy ended by agreement on 14 August 2024. By consent the application for termination is dismissed.
There is no bond held in respect of this tenancy.

How much is owed for rent and water rates?

I was told at the hearing that the tenancy was fixed term, the original fixed term period having been extended.
The tenancy ended on 14 August 2024. The landlord provided water rates invoices which prove the amount owing to July 2024 and I have ordered the full amount claimed. Mitigation of loss in relation to rent arrears
Section 49 of the Residential Tenancies Act 1986 (RTA) provides that where a party to a tenancy agreement breaches any provisions of the agreement or the RTA, the other party shall take all reasonable steps to limit damage or loss arising from that breach, in accordance with the rules of law relating to mitigation of loss or damage upon breach of contract.
This means that that they must take actions to limit any loss from a breach by the other party. When rent arrears occur, a reasonable landlord will mitigate that loss by applying to the Tenancy Tribunal to have the rent arrears paid, or the tenancy terminated.
Where rent arrears are accumulating, ordinarily, the Tribunal would expect to see an application being brought within around 6-8 weeks, 10 at the most. There is then usually a short period before the hearing can take place.
In Huang v Ashworth [2024] NZDC 15726 the District Court confirmed there is a duty to mitigate for rent arrears. The Court confirmed the test of what the landlord ought to do to mitigate its loss is a factual one and depends on whether the landlord took all reasonable steps to mitigate its loss; and more particularly, whether it acted reasonably having regard to all the circumstances of the case. In Huang v Ashworth the Court reduced the rent arrears by a third to take into account a failure to mitigate loss.
In Ho v Tenant [2024] NZTT 4875311, 27 August 2024, a recent decision in the Tribunal, the adjudicator, in applying Huang v Ashworth capped the rent arrears payable by the tenant to 12 weeks.
At the hearing I raised my concern that the landlord had failed to mitigate their loss in respect of the rent arrears and outlined recent case law.
The landlord indicated there had been communication regarding rent arrears, but when the rent fell into arrears the landlord did not take any formal steps to mitigate its loss by serving the tenant with a 14-day notice to remedy the rent arrears and did not promptly apply to terminate the tenancy.
Two rent statements were provided, one in relation to when the landlord managed the tenancy and one from when the property manager assumed responsibility for managing the tenancy. It was difficult to reconcile the two records however it appears the rent went into arrears in December 2023.
The landlord claimed $27, 257.14 for rent arrears to 14 August 2024.
Having regard to the landlords’ failure to mitigate its loss. I consider that it is appropriate to cap the rent arrears at 12 weeks and make an order for rent arrears of $21,600.00. Filing fee
Because the landlord has substantially succeeded with the claim, I have reimbursed the filing fee. Suppression
The landlord confirmed that name suppression is not sought.

Tenancy Tribunal case 4940811 — Rent arrears at 9 Sudeley Street, Orakei, Auckland 1071

At a glance

Tenancy Tribunal case 4940811 — Rent arrears at 9 Sudeley Street, Orakei, Auckland 1071

At a glance

Award balance

Claims & awards

Order

Reasons

How much is owed for rent and water rates?

Topics & place

Residential Tenancies Act sections

Key findings

Property management

Frequently asked questions

Award balance

Claims & awards

Order

Reasons

How much is owed for rent and water rates?

Topics & place

Residential Tenancies Act sections

Key findings

Property management

Frequently asked questions