Tauranga landlord fined in first case of its kind in district court

A landlord in Tauranga has been fined. Photo / File

A Tauranga landlord has been convicted and fined after breaching restraining orders and failing to lodge bonds - the first time such a case was taken brought to the district court.

Kevin Bustard, a director of several property management companies in the Bay of Plenty, was convicted and fined $1350 in the Tauranga District Court after action taken by the Ministry of Business, Innovation and Employment's tenancy compliance and investigations team.

He was found guilty on two counts of breaching a restraining order issued by the Tenancy Tribunal after continuing to fail to lodge bonds as required under the Residential Tenancy Act.

The sentencing is the first time such a case has been brought before a District Court, the ministry said in a statement.

Bustard was originally issued with a restraining order by the Tenancy Tribunal in 2019 after action taken by previous tenants and later investigated by the investigations team.

A restraining order issued by the tribunal lasts up to six years and means if the person involved commits another, similar breach of tenancy law in that time they can be charged with a criminal offence, rather than fined by the tribunal.

Bustard was found to have breached the restraining order by failing to lodge multiple tenants' bonds within the required timeframe.

The investigation team's national manager, Steve Watson, said it was concerning.

"Landlords and property managers need to remember they are running a business; with this comes the obligation and responsibility to comply with the Residential Tenancies Act," he said.

Watson said the lodgement of bonds was fundamental to the integrity of the tenancy system. By lodging the bond, the money is held for safekeeping by Tenancy Services until the end of the tenancy, when the tenant or landlord can apply to have the money refunded.

Watson said his team would always try to work with landlords to help them understand and comply with the legal requirements, but they will use enforcement when there is a serious or ongoing breach.

After a restraining order against a landlord or property manager, the team often monitored the landlord's behaviour to ensure there were no further breaches.

Where breaches were identified, the team would contact the landlord and encourage voluntary compliance; where the landlord is unwilling to comply, more punitive action was taken.

Under the Residential Tenancies Amendment Act 2020, new provisions were introduced to strengthen enforcement measures for the ministry as the regulator of the act.