In The Know - Property Management
11 September 2019
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Case Update: Tenants numerous complaints not taken seriously
The tenancy began in July 2012. The tenant lived at the property with her now ex-partner and their son, now aged 22 months.
The house had a multitude of issues, some of which were leaking and damaged gutters, rotting window frames, sagging and mouldy ceiling in the front entrance, no rangehood in the kitchen, rotting toilet floor and exposed electrical board.
The landlord only did one inspection of the property over seven years and had a “hands-off” approach.
The tenant’s son was suffering from chronic respiratory problems and the Tenancy Tribunal were provided with a letter from the tenant’s son’s doctor which stated “the damp housing conditions he is currently living in seem to have a major effect on exacerbation of his asthma."
Additionally, a report completed by Kainga Ora Healthy Homes highlighted a number of concerns pertaining to the property and stated that the tenant was stressed about what to do about her home as the landlord continued to ignore her requests and felt “hopeless and scared” as she did not want to end up homeless, if she did complain.
The tenant put silicon in gaps in the windows and closed off the fireplace. It was noted that she had gone above what was expected of a tenant to keep her home habitable and warm.
The landlord accepted remiss in their responsibilities to maintain the property but not to the extent claimed by the tenant, however, did acknowledge that items such as the weatherboards, windows and guttering should have been maintained.
The Tribunal found that the landlord had breached their obligations to maintain the property to a reasonable condition. The Tribunal also found that the landlord failed to comply with the Residential Tenancies (Smoke Alarms and Insulation) Regulations 2016. The landlord also breached the obligation to comply with all requirements in respect of buildings, health and safety legislation.
As a result of the breaches and the impact on the tenant, the landlord was ordered by the Tribunal to pay a total of $13,020.44 to the tenant.
Tip:
- A key tip from this case is that you should never ignore a tenant’s request especially, when it comes down to their health and safety.
Exemplary damages - what they mean for property managers
Some property managers may not have had this term explained to them or do not understand what could qualify as exemplary damages.
Both landlords and tenants can apply for exemplary damages, although historically these claims tend to come more often from tenants.
The MBIE website has the following information:
Some breaches are serious and are considered an unlawful act.
For example, a landlord’s failure to meet obligations in respect of smoke alarms, the healthy homes standards, or buildings, health, and safety requirements is clearly listed as an unlawful act.
A landlord interfering with a tenant’s quiet enjoyment of their home is a breach of the Act. But if it continues to the point that it’s considered harassment, it’s an unlawful act.
A tenant abandoning a property without reasonable excuse could be considered an unlawful act.
Exemplary damages can be awarded for unlawful acts.
When someone commits an unlawful act, the affected person can apply to the Tenancy Tribunal for ‘exemplary damages’. This means that the person who committed the act pays a financial penalty to the affected person. Exemplary damages can’t be awarded for ‘ordinary’ breaches that are not an unlawful act but the Tribunal can still make other orders, including an order for compensation.
Before awarding exemplary damages, the Tenancy Tribunal will consider:
- how serious the unlawful act is
- what impact it has had on the affected person.
Schedule 1A of the Act lists the maximum amounts that can be awarded by the Tenancy Tribunal for certain unlawful acts.
To access the list of fines, click here.
For more information on exemplary damages, click here.
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REINZ Residential Rental Review - August 2019
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Finding the right tenant - what can I collect from someone who applies for a tenancy?
