Published tribunal order
Tenancy Tribunal case 5133730 — Lost Rent at Unit 25, 21 Te Aroha Street, Hamilton 3216
Decided 14 Apr 2025 · Published 14 Apr 2025 · Application 5133730
Landlord favoured
- Lost Rent
Order
- Ravinder Kumar must pay L&H Holding Limited $4,767.00 immediately, calculated as shown in table below:
Reasons
- A representative of the landlord attended the hearing held by video conference on 10 April 2025. I attempted to contact the tenant by telephone but with no success. I continued the hearing in his absence as he has been emailed notice of the hearing date and time to his address for service.
- The landlord supplied a signed tenancy agreement recording that the tenant entered into a tenancy for a fixed term starting on 15 January 2024 and ending on 19 January 2025.
- The landlord claims compensation for rent payable under the contract up to the end of the fixed term.
- Rent records were provided which show rent was paid up to 9 June 2024.
- The amount being claimed is $11,040.00.
What is the law?
- A fixed term tenancy agreement is a binding legal contract. It is a promise by the tenant to pay rent until the end date of the fixed term and a promise by the landlord to provide the tenancy premises for that time.
- A fixed term tenancy cannot be ended early by giving notice. It can be ended with the agreement of both parties, or, by an order of the Tenancy Tribunal.
- If a tenant abandons premises and rent is in arrears, the landlord can apply to the Tribunal to terminate the tenancy. Rent is payable until the end of the fixed term or until a new tenant is found and the landlord has no obligation to try to find a new tenant; s61(4) Residential Tenancies Act 1986 (RTA).
- A tenant may apply to the Tribunal to reduce the term of a fixed term tenancy when there has been an unforeseen change in the tenant’s circumstances, and they would suffer severe hardship that is greater than what the landlord would suffer; see s66 RTA.
- When one party breaches a contract, the other party is entitled to claim compensation for proven loss caused by that breach.
- The non-breaching party must take all reasonable steps to limit the damage or loss arising from the breach; see s49 RTA. In this case, this means that the landlord must take all reasonable steps to try to find suitable new tenants.
Is the tenant liable to the landlord for rent loss under the fixed term contract?
- The landlord said in the hearing that:- a. The tenant emailed him in June 2024 to say he had to return overseas (to his home country) because of a family emergency. b. The landlord emailed back and said he could do that, but he would stay liable to pay the rent until the landlord could find a new tenant to move into the unit. c. The last time the landlord heard from the tenant was on 22 June 2024. d. The tenant left the keys locked in the unit, so the landlord assumed he had gone and took possession of the unit. It was not clear exactly when this was. e. The landlord applied to the Bond Centre for refund of the bond of $1,580.00 and received this on 27 September 2024. f. The landlord has advertised, and the unit has been available for rent but has not been able to find a new tenant. The unit remains vacant at the date of the hearing.
- The landlord explained that this unit is one of twenty-seven similar units at the address and that there is always an advertisement on ‘Trade Me’ for one- bedroomed units to rent. A copy of the advertisement was supplied in evidence.
- The landlord says that as at the date of the hearing, there are twelve units vacant and available for rent.
- I asked the landlord if he specifically tried to rent out unit 25 when people came to view the units. He said he did not do this because he felt it was the choice of the people coming as to which unit they want to take.
- No evidence was supplied of the communication between the landlord and tenant at or after the tenant moved out.
- The tenant did not attend the hearing, so I have no evidence from him.
- The Tribunal must make its decisions according to legal principles and the “substantial merits and justice” of a case; see s85 RTA.
- The legal principles are that the tenant is liable to pay rent until the end of the fixed term contract, but the landlord must take reasonable steps to reduce any loss to him.
- There is not enough evidence from the landlord for me to be satisfied that all reasonable steps were taken to rent out this unit. There is no evidence to show what or whether the landlord communicated to the tenant about his ongoing rent liability, no record of viewings of the unit, no details of advertising or applications by new tenants. If the tenant genuinely did have a family emergency, he may have been able to apply to the Tribunal to have the fixed term reduced but there is no evidence the landlord gave him this information or recommended he contact Tenancy Services for advice.
- The landlord’s representative is very experienced and knows how to communicate these sorts of things. I heard an application in similar circumstances in 2024. In that case, the same property manager emailed the tenant suggesting they contact Tenancy Services for advice and options and sent regular text notifications of the amount owing for rent. 1
- There is no such evidence in this case. The landlord received the bond back in late September 2024 so it is quite likely the tenant thought his liability would stop at this point. 1 Plan Investments Limited v Jardene Richard Murray [2024] NZTT 4855842
- My decision is that in the absence of satisfactory evidence of the landlord’s efforts to reduce his loss and communicate with the tenant about his ongoing liability, that the substantial merits and justice of the case mean it is fairest that the parties share in the loss of rent.
- The rent ledger proves the total loss under the contract is $12,640.00. I have decided to award compensation equivalent to sixteen weeks of lost rent which is $6,320.00.
- I also award the filing fee.
- The landlord has received the bond. The amount payable by the tenant is $4,767.00.
- No suppression orders apply.