Concerning Hood, Angela Julie vs First National Marlborough Limited [2019] NZTT Blenheim 4180394
The issue
What can a landlord reasonably recover from a tenant for terminating a fixed-term tenancy early?
The facts
– The fixed-term tenancy between the two parties was reduced and terminated early at an earlier hearing by an interim order (presumably under s66(1) of
the RTA).
– The landlord submitted final rent arrears ($114.29) and actual costs incurred by the early termination including the following:
– costs relating to vacating procedures
– new tenancy costs covering advertising, open home and showing costs as well as costs relating to new tenant processing
– administrative cost ($115)
– cost for keeping the landlord client informed ($57.50)
– methamphetamine testing
The law
When the Tribunal exercises its s66(1) power by ordering a fixed-term tenancy to terminate early, it may also order the original applicant for the termination
to pay a ‘reasonable compensation’ to the other party to make right ‘any loss or damage’ as a result of the reduction of the original tenancy term
(see section 66(2)).
Outcome
– The full amount of rent arrears incurred (and properly documented)
– The full amount claimed for vacating procedures, advertising, open home and showing costs and new tenant processing
– Half of the claimed cost for administration given that the above compensation...
