Fines in the land of dodgy rentals
No insulation, cold, damp and mouldy homes exacerbating existing health conditions, rotten floorboards and unlodged bonds all led to massive fines for landlords last year.
The Ministry of Business, Innovation and Employment (MBIE) went in to bat for the tenants of seven landlords after negotiations with them proved futile.
MBIE’s Tenancy Compliance and Investigations Team (TCIT) tried to work with landlords to encourage and strengthen compliance with the Residential Tenancies Act and the Healthy Homes Standards, national manager Brett Wilson said.
‘‘Where breaches are particularly egregious or landlords are unco-operative, we will act, including seeking penalties through the Tenancy Tribunal, to hold landlords to account and to support tenants where resolution outside of the tribunal is not possible.’’
Here are the landlords that copped the biggest fines for their dodgy rentals.
RJRAW Ltd
RJRAW Ltd was renting out old weatherboard homes in Kaikō ura without essential items such as smoke alarms and insulation, which have been requirements for all rentals under the Residential Tenancies Act for several years.
RJRAW had bought the properties with the intention of redeveloping them but the 2016 Kaikō ura earthquake put those plans on hold and the company became something of an ‘‘incidental’’ landlord.
TCIT became involved following concerns raised by Immigration New Zealand investigators who had visited some of the properties, as the properties were tenanted by immigrants. During their investigations they found several properties were poorly maintained, and lacking insulation and smoke alarms.
Statements required to accompany tenancy agreements were also not provided.
The tribunal ruled that although an ‘‘incidental’’ landlord, ignorance of the law was no defence.
The tribunal adjudicator awarded the tenants a total of $7600 for breaches of the Residential Tenancy Act, including intentionally failing to provide compliant smoke alarms, failing to install insulation, failing to complete maintenance and failing to complete and provide appropriate insulation statements.
Jonathan Brown
Landlord Jonathan Brown failed to maintain in a reasonable state a property he was renting to tenants and failed to appoint a New Zealand agent while residing overseas.
A TCIT investigator gave evidence of finding two elderly men living in the cold, damp, mouldy Dunedin home. It had leaks in the roof, which had resulted in ceiling plaster giving way or bulging in some rooms.
There were also issues with the oven, toilet and broken windows. A property management company withdrew its services after Brown refused to agree to necessary maintenance work. A daughter of one of the men gave evidence about the lack of maintenance and how this had affected her father’s significant health conditions.
An occupational therapist had assessed the property and recommended an entry ramp and support handles be installed.
However, Brown’s approval could not be obtained, delaying the work. After her father sustained injuries from falls, she and her husband installed the equipment at their own cost.
Her father’s health deteriorated, and weeks later he was hospitalised and later died.
The tribunal acknowledged that the tenant ultimately died from pre-existing medical conditions but believed it was likely his condition was exacerbated by the conditions at the property.
The tribunal awarded $12,000 in exemplary damages and compensation to the tenants (estate of the deceased tenant) and $689.86 to be paid to MBIE to cover costs involved in the proceedings.
Results Realty and the Khokhlov Family Trust
Results Realty (trading as Ray White New Brighton) was landlord for two properties and the agent for a third owned by the Khokhlov Family Trust in Christchurch.
Two of the properties had rotten or missing floorboards, as well as excessive moisture. They were subsequently demolished.
The tribunal found that the landlord failed to provide and maintain the premises in a reasonable state of repair; insulate the premises; and failed to comply with all health and safety requirements.
The tribunal awarded $7000 in exemplary damages against Results Realty and the Khokhlov Family Trust for failing to maintain all three premises in a reasonable state of repair; and another $4500 in exemplary damages for failing to provide underfloor insulation.
It also awarded $2000 in compensation to tenants of the two worst-affected properties, and $800 compensation to the tenant of the third.
Finally, it ordered Results Realty alone to pay $450 in exemplary damages for false or misleading and/or noncompliant insulation statements for two of the properties.
John Robert Jones
Jones was the landlord of a Northland farm shed which was being rented out as living quarters. At the tribunal hearing, he conceded it was an unlawful residential dwelling as he did not have the necessary consents for residential tenancies.
The tribunal considered medical evidence of the landlord’s health and attempts to make the premises more liveable, in ordering him to refund 50% of the rent ($15,120) as well as some costs, $15,489 in total.
Llewellyn Burchell
Llewellyn Burchell was the landlord of a North Shore property.
The tenant had at one point received money from the Ministry of Social Development (MSD) to pay the rent and Burchell therefore argued that the rental was exempt from the Residential Tenancies Act.
The tribunal disagreed, saying that just because MSD paid towards a tenant’s rent the tenancy did not automatically qualify for an emergency or transitional housing exemption from the act.
The tenant moved out of the property in late 2021 but had not received his bond back as Burchell had not lodged it with the Bond Centre. TCIT investigators also had difficulties obtaining information and engaging with Burchell, who did not provide any information requested of him.
The tribunal ordered Burchell to reimburse the bond of $960 and awarded exemplary damages of $750 for failure to lodge a bond, $750 for failure to provide information to MBIE, and $900 for entering a prohibited transaction.
Results Reality Ltd
The biggest fine was for Results Reality Ltd, with an out-of-court settlement to tenants equating to $54,995.
MBIE was unable to share further information, as there was an ongoing matter in the tribunal.