2 landlords, including the property owner, were also ordered to pay exemplary damages and compensation to the tenants for having to live with the state of this property for 12 years to their detriment. $5,000 compensation has been paid to the affected tenants, but $5,000 in exemplary damages remains outstanding.

Poh-Khean Tan, trading as PK Property Services, signed the tenancy agreement with the 2 tenants in 2012 and managed the tenancy until January 2024. Tapro Limited is the registered owner of the Cannons Creek address. Patikiriachchige Aruna Ranjana Perera is the sole director and shareholder of Tapro Limited and took over the management of the tenancy from Mr Tan in 2024.

MBIE’s Tenancy Compliance and Investigations Team (TCIT) opened an investigation into the address, after receiving a complaint in September 2023 from a Healthy Homes Initiative provider, who assessed the property following a medical referral.

TCIT identified a number of issues, including gaps and holes throughout the property causing draughts, significant mould on the ceiling, rotten spouting/guttering, multiple windows that were unable to be opened or closed, slippery stairs due to water leaking in from the windows, and a lack of suitable heating in the living room.

A weathertight assessor, who attended alongside TCIT, considered the property at the time of his visit in October 2023 “was not fit for human occupation”.

In evidence submitted to the Tenancy Tribunal, the tenants said they had no choice but to accept this home in 2012, despite it being poorly maintained when they moved in, as they were in dire need of housing.

The family frequently got sick with respiratory problems over the years, including 1 child developing rheumatic fever. Despite raising concerns about the condition of the property with their landlord, the tenants said little work was done until TCIT became involved.

The adjudicator found that all alleged breaches of the Act, including failure to provide and maintain the premises in a reasonable state of repair and comply with home improvement regulations, were established in evidence.

“This home was in a poor state when TCIT commenced its investigation, as it had not been adequately maintained for a number of years. I have no trouble in finding that this home was prone to damp from at least 2014 when Mr Tan pointed out to Mr Perera that the stairway window was leaking,” the adjudicator said.

The adjudicator also pushed back on Mr Perera’s claim he could not undertake the required maintenance work due to a lack of funds.

“Operating a tenancy is a business, if a business is unaffordable it cannot, or should not, continue. Obligations under the Act are not contingent upon available funds. There were options available to both respondents when the maintenance got out of hand, none of which were taken, to the detriment of the tenants.”

TCIT National Manager, Brett Wilson, said both landlords should be well aware of their obligations under the Act.

“A landlord is required to address the concerns raised by a tenant within a reasonable period, but in this case they did not take any notable action until TCIT became involved,” Brett Wilson said.

“The family living at this address were particularly vulnerable as they did not have alternate housing options and had all suffered health issues likely as a result of the condition of the property. TCIT will not hesitate to take Tribunal action if necessary to ensure a fair outcome for tenants and to hold landlords to account if they do not meet their obligations under the Act.”

Brett Wilson said despite Mr Perera accepting the claimed state of the property during the Tribunal hearing, he failed to comply with the work order to complete essential repairs to the windows at the property.

“The landlord had until the end of March to complete these repairs. Instead of doing what he needed to do to improve the condition of the property, he removed the windows from one of the bedrooms, replaced them with cardboard and cling wrap and then left the country for an extended period, thereby making things worse.

It is unacceptable for any landlord to treat tenants in this manner, particularly when there is also non-compliance with a Tenancy Tribunal order. TCIT is taking further action to ensure that Tapro Limited comply with their basic responsibilities as a landlord.”
The windows have since been reinstated, following intervention by TCIT.

Mr Perera has also been issued with a restraining order, which prohibits him, or any company of which he is a director, from renting out premises owned by him that are poorly maintained or do not meet all building, health, and safety requirements.

If a landlord intentionally breaches a restraining order this is an offence tried in the District Court and under Section 109A of the Residential Tenancies Act they are liable on conviction to a fine not exceeding $3600.

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