Scrap looms after Hawke's Bay company ordered to pay damages over leaky rental

Gdss Properties Limited has been ordered to pay more than $4000 in damages to a mother who rented a Waipukurau property riddled with leaks. Photo / Google Maps

A Hawke's Bay company has been ordered to pay more than $4000 in damages to a mother who rented a house found to be riddled with leaks.

However, the damages are yet to be paid and Angela Payne, a director of the company Gdss Properties Limited, told Hawke's Bay Today a stay of proceedings has been granted and a rehearing is set down for December 17.

Payne claims her tenants and the Tenancy Tribunal don't seem to understand the difference between condensation and a water leak. She is also calling for an inquiry into the way the Tenancy Tribunal operates.

Tenant Janet Haenga says she rented the $1000-a-week Waipukurau property as she was at risk of having her children uplifted for lack of ability to provide suitable accommodation, according to Stuff.

The property, 14 Ruataniwha St, had "significant" gaps around door and window joinery and multiple leaks, according to Tenancy Tribunal referee B King.

Stuff reported that the tribunal found the property didn't meet health and safety standards set out in the Residential Tenancies Act, and ordered Gdss Properties Limited to pay the tenants $4190.44 in compensation and damages.

That included $1500 in exemplary damages and $1100 compensation for not being able to use one of the bedrooms because of water coming in.

King also ordered the Bond Centre to return the tenants' $4000 bond.

The tenants of the property were Janet and Shian Haenga and Page and Conrad Toki.

King said one of the bedrooms was "effectively unusable" due to the extent of the leaks and the exterior of the premises appeared to have an "inadequate guttering system", Stuff reported.

Photographs showed water pooling in front of the front door and a gap under that door without a lip, allowing water to enter into the premises, King said.

King said the landlord was experienced, and well aware of its obligations to provide a healthy home.

Gdss Properties Limited chief executive Angela Payne told Hawke's Bay Today the tenant misunderstood condensation and called it a leak.

"I'm calling for an inquiry into the way the Tenancy Tribunal operates because adjudicators, Tenancy Tribunal and tenants don't seem to understand what condensation is and what the effect is when they keep properties locked up and never open the curtains," she said.

"I think it's time for the Tenancy Tribunal to start taking more responsibility in why landlords are bailing out of rental properties and why rental tenants are ending up there so often."

Payne also said the property had a code compliance certificate for residential use.

However, King said photographs show that "even if compliant with the building permit when the CCC was issued, there are a number of aspects of the premises ... which are not satisfactory."

"There is inadequate covering between a downstairs bedroom and the room above, compromising its privacy. There are internal upstairs walls which seem clearly to be below a safe height," King added.

Work and Income negotiated the weekly $1000-a-week rent rate.

Payne said she was asked to take on the group by Work and Income because the building's rent is a "massive saving on what it was costing the Government to keep them in motels."

"I was doing Winz a favour and saving the country a fortune but it's turned around and bitten me in the backside."

The property is currently on the market as a "commercial/residential" property with a listing price of $550,000 plus GST.