A Christchurch landlord has agreed to pay more than $13,000 to the Ministry of Business, Innovation and Employment (MBIE), on behalf of 3 tenants living at a property it accepts was unlawful for residential purposes.
Trott Dairy Limited must pay $3,400 in exemplary damages, after admitting to multiple breaches of the Residential Tenancies Act 1986 (the Act), and $10,000 in rent refunds.
MBIE’s Tenancy Compliance and Investigations Team (TCIT) opened an investigation into the Bishopdale property in July 2023 after receiving a referral from the Christchurch City Council.
TCIT identified various issues, including a detached garage that had been unlawfully converted into a residential unit, daylight visible through gaps in the wall and ceiling, exposed batts, insufficient smoke alarms, a leaking roof and external guttering running through and overflowing into the dining room. The yard had extensive earthworks underway and rubbish that appeared to be industrial in nature.
At a Tenancy Tribunal hearing on 30 January 2025, both parties reached agreement about the landlord’s liability for the admitted breaches that amounted to unlawful acts, including non-compliant tenancy agreements and failing to lodge bond received from tenants. Trott Dairy Limited also accepted the garage was an unlawful residential premise and consented to a partial rent refund.
TCIT National Manager, Brett Wilson, says they lodged an application with the Tenancy Tribunal, as the breaches were so severe that it was in the public interest to proceed, despite the tenants choosing not to participate in the application or hearing.
“The tenants suffered a number of illnesses that they attributed to the condition of the property, which the landlord accepted was not a lawful residential premise, but they were worried they would lose their tenancy if they complained,” Brett Wilson said.
“Trott Dairy Limited owns and manages approximately 40 rental properties in Christchurch and should be acutely aware of its responsibilities under the Act.
“The tenants were particularly vulnerable because they were on temporary entry visas and were reliant on the landlord. The landlord promised them a tenancy in a property they had been working on. This promise was never fulfilled and instead the landlord provided them with a property that was not fit for residential purposes.”
Trott Dairy Limited was also issued with a 3-year restraining order by the Tenancy Tribunal from committing the same unlawful acts.
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