A North Canterbury landlord who rented out multiple unlawful premises, including sheds and shipping containers, has been ordered to pay $29,216.80 in exemplary damages and rent refunds to tenants.
The Tenancy Tribunal found Madeleine Fee committed multiple breaches of the Residential Tenancies Act 1986 (the Act), including failing to comply with the Healthy Homes Standards, and obligations regarding smoke alarms and building health and safety.
Ms Fee also failed to lodge bonds within the required timeframe, seized a tenant’s goods, unlawfully terminated 1 tenancy and caused or permitted the harassment of tenants on at least 2 occasions.
The Tenancy Compliance and Investigations Team (TCIT) in the Ministry of Business, Innovation and Employment (MBIE) opened an investigation after concerns were raised about a tenant residing in a shed on 1 of the properties owned by Ms Fee, which was not consented for residential use.
After visiting the property alongside staff from the Waimakariri District Council, TCIT identified numerous breaches of the Act and lodged an application with the Tenancy Tribunal. The council also issued Ms Fee with a notice to fix relating to sanitation, a gas installation, electrical work and a heating unit.
The Tenancy Tribunal found Ms Fee acted with intent when committing the breaches across four separate tenancies and said her actions exposed the tenants to potential harm.
In determining Ms Fee’s intent, the adjudicator stated: “Her suggestion that she was just trying to help desperate people was not convincing. Rather, she was maximising rental income from renting out unlawful residential premises that were not compliant with health and safety regulations, the Healthy Homes Standards, and in 1 case had no installed smoke alarm.
“Those matters go to the heart of tenant safety. Had there been a fire, or had some other event occurred due to faulty fittings, the outcome might have been tragic.”
The adjudicator said Ms Fee’s contempt for the investigation process was evident and noted the important statutory role of MBIE as regulator of the Residential Tenancies Act.
TCIT National Manager, Brett Wilson, said Ms Fee was an experienced landlord and went to significant lengths in an attempt to evade her responsibilities under the Act.
“Even if some tenants claimed to like living there, that does not excuse the situation. The properties were not lawful residential accommodation,” Brett Wilson said.
In 1 instance, the Tribunal found that Ms Fee interfered with the reasonable peace, comfort or privacy of some of those tenants by permitting an incident where Ms Fee’s daughter and others entered a tenant’s home in a violent manner, causing significant emotional distress amounting to harassment.
Mr Wilson said the decision reinforces that all landlords must meet their legal obligations, regardless of the type of accommodation being offered.
“No tenant should have to face harassment or intimidation in their own home. Landlords who knowingly breach their obligations under the Act and put tenants at risk will be held accountable for their actions.”
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