In a first for the Tenancy Compliance and Investigations Team (TCIT) in the Ministry of Business, Innovation and Employment (MBIE), the Tenancy Tribunal has ordered a Canterbury landlord to pay pecuniary penalties for failing to take meaningful steps to address breaches of the Residential Tenancies Act 1986.
Landlord Murray Lawrence Hill must also remove industrial rubbish from around a Lyttleton boarding house and repair holes in the ceiling and roof, install glass planes in windows that are boarded up, install mechanical ventilation in all bathrooms and clean the kitchen and bathrooms to an acceptable standard.
The Tenancy Tribunal adjudicator ordered the payment of $33,000 in pecuniary penalties, noting the landlord was aware of the compliance issues, and his decision to not take action to address all these concerns was an intentional breach of his responsibilities under the Residential Tenancies Act.
The adjudicator also noted the residents at this boarding house, were among the most vulnerable tenants and Mr Hill’s failure to maintain the property to the required standard had a direct and harmful impact on them, as they continued to pay rent despite living in substandard conditions.
“This is the first time the Tenancy Tribunal has ordered a landlord to pay pecuniary penalties. The amount awarded reflects the seriousness of the intentional and ongoing nature of the breaches Mr Hill has committed,” Brett Wilson National Manager TCIT said.
TCIT investigations
TCIT has previously been involved with Mr Hill at this property and others, issuing warnings, and providing further education and guidance on tenancy rules.
In December 2023, TCIT received a new complaint from a member of the public, who advised that the boarding house was in a serious state of disrepair, with rubbish rotting on the property. The tenants were described as vulnerable and afraid to complain, for fear of being evicted.
Following a visit to the boarding house, TCIT determined that filing an application with the Tenancy Tribunal was the most appropriate enforcement action, as two prior warnings and guidance had not resulted in Mr Hill achieving compliance. TCIT identified a range of issues regarding compliance failures and suggested measures the landlord could take to achieve compliance in its application to the Tenancy Tribunal.
At a case conference in March this year, Mr Hill advised he had completed some of the work outlined by TCIT. The adjudicator instructed Mr Hill to provide details of the work he had completed, including photographic evidence, within seven days, but he failed to do so.
TCIT conducted a further site visit, which confirmed some work had been completed, however significant work remained outstanding, including:
- Industrial rubbish at the exterior of the property was still to be removed.
- The hallway ceiling just outside of the lounge was rotting and was leaking water at the time of the visit.
- The stairway wall was yet to be repaired, and parts of the guttering were broken
and leaking in several areas. - A smoke alarm was missing outside one bedroom.
Tribunal findings
The Tenancy Tribunal found Mr Hill failed to ensure the property was in a reasonable state of cleanliness and repair, failed to comply with the healthy homes standards for ventilation, draught stopping and moisture ingress and drainage, and failed to comply with smoke alarm regulations.
“Despite receiving multiple warnings over a number of years, he failed to take meaningful steps to address these concerns until 2024-2025. His prolonged inaction over a four-year period demonstrates a deliberate and intentional disregard for his obligations.”
TCIT National Manager Brett Wilson says landlords are running a business and if they want to operate a boarding house they must comply with their obligations under the Residential Tenancies Act.
“Mr Hill is an experienced landlord who has had regular interactions with TCIT, Fire and Emergency New Zealand and the Christchurch City Council, and is aware of his obligations under the Residential Tenancies Act.
“Where possible TCIT will try to work with a landlord to achieve compliance and allow tenants to remain in their homes, but where a landlord is not willing to engage with us then we will not hesitate to take further action up to and including an application to the Tenancy Tribunal.
“While this complaint did not come from a tenant, boarding house compliance remains a priority for TCIT and we still felt that action needed to be taken. It’s important that landlords are held accountable for their actions, even if tenants are unwilling to come forward due to the fear of losing their tenancies,” Brett Wilson said.
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