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New Zealand tribunal fines property manager over $3,000 for 20 tenancy breaches

The ruling made clear a property manager cannot simply rely on an owner's refusal to avoid accountability.

A close-up of a roof edge with a damaged gutter and fallen leaves, adjacent to a brick wall and window.

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A New Zealand property manager has been fined after a tribunal found repeated breaches across 20 tenancies, in a ruling reported by Radio New Zealand.

The case speaks to a familiar renter frustration: being left to live in unsafe, expensive housing while landlords and property managers shift blame back and forth.

Here's what to know

The Tenancy Tribunal ordered Christchurch firm Good Girls Property Management to pay 5,877 New Zealand dollars ($3,316) in exemplary damages and compensation after finding it had breached the Residential Tenancies Act in relation to 20 tenancies.

The tribunal's findings covered several types of breaches. 

It said the company imposed an unlawful rent increase in one tenancy, included unenforceable terms in eight agreements, and improperly ended a room-by-room tenancy. It also found the firm had not ensured some rentals met legal standards.

Images from two of the properties showed the condition of some of those homes, including weatherboards in poor condition and a front door with a large gap that let in a cold draught.

Even where Good Girls Property Management had raised maintenance issues with owners, the tribunal maintained that this did not relieve it of its responsibility. 

Some landlords delayed or refused repairs because of the cost, but the ruling made clear a property manager cannot simply rely on an owner's refusal to avoid accountability.

More background

Brett Wilson, national manager of MBIE's tenancy compliance and investigations team, said the decision underscored that property managers are required to act when they know a rental is not compliant, according to RNZ.

At the center of the termination finding was the company's decision to treat one tenancy as a boarding house arrangement, which comes with different rights. 

Wilson addressed allegations involving Prudence Morrall, the company's sole director. 

"The adjudicator said Ms Morrall 'clearly had doubts' about whether she was correct in taking the action she did and knew she should not terminate the tenancy," he noted.

What's being done?

MBIE's tenancy compliance and investigations team brought the case to the tribunal on behalf of the affected renters.

Wilson emphasized that property managers should keep clear records when owners refuse to address obvious breaches of the Act and, if needed, stop acting for that client.

For people trying to work with landlords to update outdated property rules, information is key. 

If you're looking for ways to push for more practical, cost-saving changes, such as space for gardening or line-drying clothes, our resource on changing bylaws and working with landlords can help.

Wilson framed the tribunal's decision as a reminder to landlords and property managers about their obligations to residents. 

"Turning a blind eye is not an option. Property managers must take timely and appropriate action to address unlawful conduct and ensure tenants are not left to suffer the consequences."

Where can I learn more?

This case is one of many disputes in which renters were left dealing with the consequences when landlords or property owners failed to meet basic obligations. Other stories look at fights over broken cooling, garden restrictions, and fees tenants say were unfairly passed along.

• In one rental dispute, a tenant said high air-conditioning costs did not excuse a landlord from habitability standards.

• A renter was told to remove a beloved garden after baseless claims from a landlord.

• A landlord tried charging a tenant nearly $1,000 in HOA fees over an unnoticed issue.

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