In September 2024 the Tribunal ruled that 51 current and former tenancies at the Northerner motel were boarding house tenancies and not excluded from the Act, despite the landlords claim that they were providing emergency or transitional housing.

The Tribunal order also found:

• The accommodation was not funded by a government department for the purpose of emergency or transitional housing.
• Payments were made from tenants’ own benefits, redirected by the Ministry of Social Development (MSD), and not directly funded by MSD or any other agency.
• Zan Investment Limited had previously deregistered as an emergency housing provider for financial reasons and had no contractual relationship with MSD or the Ministry of Housing and Urban Development (HUD).
• Tenants stayed for an average of 247 days, well beyond what is typical for emergency or transitional housing.

The landlords appealed the decision, but in a recently released judgment, District Court Judge P Rzepecky found that the Tribunal had correctly ruled that Zan and Mr Reeves were not operating emergency or transitional housing at the Northerner and were therefore not exempt from complying with the Residential Tenancies Act.

In its judgment, the Court emphasised that just because tenants are vulnerable or receive MSD support does not mean the landlord is exempt from tenancy law. The ruling reinforces that emergency and transitional housing have specific definitions and requirements, including formal registration and funding arrangements.

MBIE’s Tenancy Compliance and Investigations Team (TCIT) first began investigating the Northerner Motor Inn in July 2022 after receiving information from a third party and lodged a Tenancy Tribunal application in 2023. TCIT National Manager Brett Wilson said the judgement sends a clear message to landlords operating in the boarding house space.

“Landlords cannot simply claim exemption from tenancy law because their tenants receive MSD support. The law is clear—unless the accommodation is formally funded and approved as emergency or transitional housing, the Residential Tenancies Act applies.”

“This decision protects vulnerable tenants and ensures they have access to the rights and remedies provided under the Act.”

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