8A Gray Avenue Limited and LDW Limited, who failed to attend their Tenancy Tribunal hearing and did not file any evidence or statements in reply to the applications, have also been issued with a 6-year restraining order from committing similar breaches of the Residential Tenancies Act 1986 (the Act).

MBIE’s Tenancy Compliance and Investigations Team (TCIT) opened an investigation into 2 units at a Mangere East address after tenants complained of sewerage running through their properties and no hot water.

TCIT filed an application with the Tenancy Tribunal after identifying multiple issues, including sewerage and electrical problems, a lack of working smoke alarms, a failure to keep the properties clean and reasonably maintained and terminating one tenancy without a sufficient reason.

Investigators noted the shower tray in one unit was full of wastewater and the kitchen had visible stains from, and a strong smell of, leaking wastewater from the bathroom above. The other unit had a fan heater on the wall from which brown liquid would leak when it was used.

Following a hearing in Auckland, the adjudicator, K Lash, found 8A Gray Avenue Limited and LDW Limited failed to provide premises that were in a reasonable state of cleanliness and failed to maintain the premises in a reasonable state of repair.

Adjudicator Lash said the Tribunal usually will only order a maximum level of exemplary damages in the most egregious of cases and this was such a case.

“I am satisfied that these unlawful acts were committed intentionally. Both respondents are landlords of multiple properties. That is the business they are in. They do and/or should know the law and in particular their obligations under the Act.

“I am also satisfied that the intent of the respondents can be inferred as malicious at worst, but intentional at the very least. They were aware of the state of both units, not only by the tenants themselves notifying them via the various property managers, but also the TCIT involvement. A number of issues were also readily observable.” 

In addition to $19,900 in exemplary damages, the adjudicator awarded the tenants $3,000 each to compensate for the stress they endured throughout their tenancies. 

“Both these tenants were treated with disregard. Their complaints and requests were ignored. Both were intimidated to leave their homes…neither were afforded a safe and comfortable living environment, and their vulnerabilities were prayed on.”

TCIT National Manager, Brett Wilson, said it’s clear the tenants were treated very badly, noting it was particularly disturbing that they were disregarded and intimidated for raising legitimate concerns about the state of the properties.

“TCIT investigators described these properties as some of the worst they have ever seen. One tenant had to drill a hole in the kitchen floor for the sewerage to drain out of the kitchen. In the other unit, the shower flooded when used and wastewater would leak through into the kitchen when it rained. It got to the extent where she had to shower standing in a bucket,” Brett Wilson said.

“Despite the terrible living conditions they were confronted with, these tenants were exceptionally vulnerable and felt they had to accept the units as they found them.” 

The adjudicator noted that no person can be expected to live in such unsanitary and dangerous conditions.

“TCIT will not hesitate to take a case to the Tenancy Tribunal where vulnerable tenants are being exploited and treated in the way these tenants were,” Brett Wilson said.

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