An Auckland boarding house operator has been ordered to pay $27,457.94 for multiple breaches of the Residential Tenancies Act (the Act) at a Mount Eden property that was found to be dirty, unsafe and not compliant with the Healthy Homes Standards.

Burnley Lodge (2009) Limited operated the boarding house, which had 11 bedrooms located over 3 levels, and a separate shed at the rear of the property that was also used as a bedroom. The Tenancy Tribunal found Burnley Lodge Limited breached its responsibilities under the Act by:

• failing to maintain the premises and comply with healthy homes standards
• operating a boarding house in breach of building health and safety requirements    
• failing to provide required information in tenancy agreements
• mishandling tenant bond payments, and
• failing to produce documents requested by the Ministry of Business, Innovation and Employment (MBIE).

The Tribunal also issued a restraining order prohibiting Burnley Lodge (2009) Limited from committing further breaches of their obligations around tenancy agreements, bond payments and producing documents to MBIE (tenancy agreements and insulation statements) for a period of 4 years.

MBIE’s Tenancy Compliance and Investigations Team (TCIT) became involved following a referral from Auckland Council and conducted a site visit which identified multiple issues, including heavy black mould throughout the property and some of the bedrooms in use not being approved for accommodation.

Despite multiple investigations, notices, and inspections from TCIT, the Council and Fire and Emergency New Zealand (FENZ), the landlord failed to take meaningful action to address serious health and safety concerns, and TCIT lodged an application with the Tenancy Tribunal.

The Tribunal found that Burnley Lodge (2009) Limited acted with intent and had a history of non-compliance and failing to engage with regulatory authorities.

“The landlord’s actions were obviously against the interests of the vulnerable tenants who lived in this boarding house and had effects on them. The premises were dirty, unrepaired, not compliant with the HHS (Healthy Homes Standards) and unsafe.”

The adjudicator, J Greene, said while company’s director, Jonathan Duncan, had made some progress toward compliance, the earlier actions of shareholder Mark Benjamin had caused significant harm.

“It is clear that Mr Benjamin is the driving force behind that company. And it is clear from the evidence MBIE has produced that Mr Benjamin has failed to engage with MBIE in any meaningful way; he has obfuscated, and he has generally been uncooperative.”

The adjudicator went on to say, “simply put, if landlords want to run a business providing boarding house tenancies they must comply with all the requirements.”

TCIT National Manager Brett Wilson said compliance with the Residential Tenancies Act was a legal requirement for landlords and not a choice.

“Burnley Lodge was home to some extremely vulnerable tenants and these tenants have the same rights as any other tenant, while the landlord has the same responsibilities to achieve and maintain compliance,” Wilson said.

The Tenancy Tribunal was provided with evidence of recent building and maintenance work, however Brett Wilson noted this work only started 18 months after TCIT submitted its application to the Tribunal, and 3 and a half years beyond the Healthy Homes Standards deadline for boarding houses.

“Boarding houses are a priority for TCIT and the level of non-compliance at Burnley Lodge was unacceptable. TCIT’s joint work in this case with Auckland Council and FENZ, and the Tribunal’s decision sends a clear message that non-compliance will not be tolerated,” Mr Wilson said.

Burnley Lodge (2009) Limited has appealed the Tenancy Tribunal order to the District Court.

Back to News