By Mathew Martin - 28 Aug 2019
In 2015 the Court of Appeal told landlords they could not
recover the cost of damage caused by their residential tenants
unless it was done intentionally. This was because the Property Law
Act 2007 said that a landlord could not require a tenant to meet
the cost of damage which can be insured against. From 27
August 2019 the Residential Tenancies Act 1986 dictates the law on
this issue.
Now tenants are liable to pay up to four weeks' rent for
careless damage while tenants on income-related rents are liable
for the lesser of four weeks' rent or the landlord's insurance
excess.
Disputes about the cause of damage must be resolved in the
Tenancy Tribunal, where to recover from the tenant, the landlords
must prove:
- the damage is not fair wear and tear; and or
- the damage was done intentionally by the tenant (or someone the
tenant is responsible for on the property); or
- the damage was caused by conduct that constitutes an
imprisonable offence i.e. a P lab.
Landlords are also now obliged to:
- include in the tenancy agreement information about whether the
premises are insured, and if it is, set out the excess payable by
the tenant.
- inform the tenant that a copy of the policy is available on
request. In this regard, the best course is simply to give
the tenant a copy of the policy from the outset.
Defaulting landlords render themselves liable for a fine of up
to $500.
If you find yourself in a dispute with your tenant or landlord,
contact Mathew
Martin or any member of our litigation
team for assistance.