In The Know - Property Management
16 October 2019
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Case Update: Tenant obstructed property manager from installing insulation and threatened him
The tenant in this case applied for a rehearing which was accepted and heard on 2 October 2019.
The landlord had applied for termination of the tenancy for breach of the tenant’s obligations.
Under section 56(1) of the Residential Tenancies Act 1986 (RTA), the Tenancy Tribunal may terminate a tenancy for breach where, due to the nature or extent of the breach, it would be inequitable to refuse to termination section 56(1). Where the breach is capable of remedy the landlord must first serve a notice on the tenant requiring them to remedy the breach within at least 14 days and establish that the tenant has failed to do so.
The tenant refused to allow entry for contractors to insulate the house. The landlord first tried to assess the property in late 2018, but the assessor was unable to gain access. After the tenant cancelled several appointments, the assessment was eventually completed in early June. There was a delay in organising work while the owner arranged finance. In late June the tenant emailed the landlord to say he did not want the house to be insulated. Another appointment was made for 8 July. The tenant cancelled the appointment.
On 26 August, the property managers served a notice on the tenant evidencing that installation would take place on 6 September. They also served a section 56 notice giving the tenant 14 days to remedy the breach committed that day.
The tenant cancelled the appointment again and did not remedy this breach.
The tenant told the Tribunal that he cancelled installation because of his, and his wife’s ill-health.
The Tribunal found that the tenant breached their obligation to allow entry for the insulation to be installed.
Additional reason to terminate the tenancy
The property managers also applied for termination based on threats of assault.
Section 55 of the RTA states that the tribunal must terminate a tenancy where the tenant has assaulted, or has threatened to assault, or has caused or permitted any person to assault, or to threaten any agent of the landlord (property managers).
The tenant sent a range of texts that were threatening in nature. The Tribunal found that the property managers were rightly concerned for their safety and wellbeing.
Finding
The decision was upheld however, the termination was extended to provide the tenant two weekends to leave the premises.
For Landlords - Joint and Several liability under the Tenancy Agreement
Many first-time tenants and those unfamiliar with the Residential Tenancies Act 1986 do not fully understand the legal ramifications when more than one person signs a tenancy agreement with another person/s. They become joint and severally liable for all matters relating to that Tenancy. This means that if one tenant doesn’t pay their share of the rent or they damage the property, the landlord can seek the money owed from any or all of the tenants, regardless of which tenant didn’t pay the rent or caused the damage.
Tenants are often unaware of the risks of co-signing an agreement. They are taking total responsibility for the whole tenancy not just a portion of it.
As property management professionals, REINZ recommends you take the time to fully explain what joint and severally means to tenants when they are signing Agreements.
It is also good to clarify that flatmates don’t fall under the Residential Tenancies Act 1986. Tenants can use a flat sharing agreement with their flatmates. There is a template for this on the Tenancy Services website. Should a dispute arise with a flatmate an agreement and paper trail may help with a claim.
SAVE THE DATE - 2020 REINZ Residential Property Management Conference
Friday 7 August, 2020
Auckland
REINZ Residential Rent Review
The September REINZ Residential Rent Review is now available here.
Stuck on something? Check out our information sheets!
Click here for our Information Sheets on:
- Insulation
- Healthy Homes Standards
- Privacy Act Guidance
- Asbestos
- Mould and Dampness in rental properties
Keep an eye out for the following Information Sheet that will be coming soon:
- Residential Tenancies Amendment Act 2019
Any questions/suggestions you have, feel free to contact advisory@reinz.co.nz
Finding the right tenant - what can I collect after I have selected a preferred tenant?
