The house was on this street in Christchurch. Photo / Google Maps
The house was on this street in Christchurch. Photo / Google Maps
Tenants are being warned against the repercussions of damaging rental properties after landlords won more than $21,000 for a rental property's abandonment, rent arrears and repair bill.
Phillipa Marie Miscall and Aaron Roy Cooper were ordered to pay landlords Yoomi Jung and Moonsung Jun a total of $18,000 for a$21,498 bill to fix walls throughout the home, to kitchen and bathroom fittings, flooring and on the section outside where rubbish was dumped.
The house was 159 Regents Park Dr in Casebrook, between Bishopdale and Redwood.
Andrew King, NZ Property Investors Federation executive officer, said the Tenancy Tribunal's Christchurch ruling last month was one of the first big cases since an August law change last year.
But that would not help landlords recover money for the damage, he said.
"The Residential Tenancies Act review, which came into force last August, has limited tenants' liability for damage they cause to four weeks' rent or the landlords' insurance excess. The federation and Insurance Council said that this would result in less care for rental properties and cases like this seem to confirm this happening," King said.
Because each damage event was listed separately, the $18,000 which the tenants must pay exceeded four week's rent, King said.
The law should go back to tenants being completely responsible for damage that they cause and landlords should be able to insist on tenants taking out insurance to cover themselves for damage they cause, King said.
He warned that other landlords will be wary of people with tribunal rulings against them for extensive damage.
Andrew King of the NZ Property Investors Federation. Photo / Jason Oxenham
"We teach our members to always check tribunal orders online and we would hope that most landlords do. Just having a tribunal decision against you may not make it harder to get a new tenancy, however, the seriousness of the case may make it harder," King said.
The order said the pair were liable for more than $8000 in rent arrears, $5000 for wall repairs, nearly $3000 to fix a garage door, $1500 to replace the carpet, $1600 for cleaning and the rest for other lost or damaged items in the house including rubbish dumped outside.
Details were:
• Rent arrears to September 20 $8457.14;
• Repairs to walls throughout premises (multiple claims) $5625;
• Repair toilet and seat $110;
• Replace fridge door $200;
• Repair bathroom basin surround $180;
• Replace freezer containers $103.50;
• Replace missing plugs $43.64;
• Gardening, rubbish removal and dump fees $606.36;
• Cleaning $1610;
• Repair damage to garage door $2960;
• Carpet replacement $1500;
• Lock/key replacement $37.76;
• Replace light bulbs (lamps) $44.97;
• Filing fee reimbursement $20.44;
• Total award $21,498.81;
• Bond $2960;
• Total payable by tenant to landlord $18,538.81.
King said damage of this nature was all too common.
"These tenants have caused serious damage and abandoned the property owing a considerable amount of rent and also before the fixed-term tenancy had ended. I would like to think enough landlords check the tenancy decisions online so that it is extremely hard for these people to get another rental property and the opportunity to cause another landlord severe harm," he said.
The landlord attended the tribunal hearing but not the tenants. The ruling said it was possible that Aaron Cooper had been declared bankrupt. If that was before the order, "the order may not be enforceable against him". The tribunal asked for a copy to be provided to Insolvency Services.
King wondered if the landlords would receive any of the $18,000.
"It will also be extremely difficult for these poor landlords to get back the money. They will bear the full cost of the rent arrears and damage, as their insurer will most likely treat each case of damage as a separate incident and therefore multiple excesses," he said.
Damage was the second most common reason for landlords to go to the tribunal, King said.
"A membership survey we undertook in 2015 showed 67.7 per cent of applications were for rent arrears and 27.8 per cent for damage, equating to more than 95 per cent of applications in total," he said.
Damage was a most serious risk for rental landlords, he said.
"It is not only a large financial burden, it is extremely distressing to owners, can cause mental health issues and reduces their trust in future tenants. Many people sell when they find themselves in situations less serious than this case," King said.
The tribunal made an order for the pair to pay the landlords $18,538.81 "immediately", calculated from the table of damage to the property. The tenants' bond of $2960 should be paid to the landlords, it said.
