1 March 2024

An Auckland landlord has been ordered to pay rent and bond refunds and exemplary damages of $69,563.10 to the Ministry of Business, Innovation and Employment (MBIE), on behalf of four tenants affected by multiple breaches of the Residential Tenancies Act 1986 (the Act).

Shirley Anne Sharp was also issued with a 3-year restraining order by the Tenancy Tribunal to prevent future breaches of the Act from occurring if she was to act as a landlord in the future.

In June 2020, a case was opened by MBIE’s Tenancy Compliance and Investigations Team (TCIT) in response to a complaint laid by four former tenants of the Blockhouse Bay property.

The investigation found multiple issues, including mould, a rotten deck and weatherboards, holes in the wall and floor, an inoperative bathroom, plugs and light fittings hanging from the wall and a heater and oven that did not work as well as issues with non-lodgement of bonds, insulation and lack of smoke alarms.

TCIT lodged applications on behalf of the 4 tenants on 27 May 2021.

On 9 January 2024, the Tenancy Tribunal determined Ms Sharp was liable for multiple breaches of the Act, including failure to provide premises that were lawful, clean, and in a reasonable state of repair.

“The Tribunal noted the boarding house had become rundown, decrepit and unsafe, and the tenants in this case were particularly vulnerable due to the fear of becoming homeless,” said Brett Wilson, National Manager, Tenancy Compliance and Investigations.

“The Act requires that the landlord must comply with all requirements in relation to buildings, health and safety, and the Tribunal had no doubt Ms Sharp had not met this requirement, concluding that the buildings were dangerous, insanitary and not fit for humans to live in.”

The Tribunal also found Ms Sharp failed to provide smoke alarms, failed to insulate the property, and failed to lodge bond payments for multiple tenants.

“Landlords should be aware of their obligations under the Residential Tenancies Act and work to ensure they are meeting them,” Brett Wilson said.

Landlords of boarding houses are not required to lodge bonds with Tenancy Services’ Bond Centre where that bond is one weeks’ rent or less. The Tribunal found that for two tenancies, the bonds were over one week of rent, so needed to be lodged with the Tenancy Services Bond Centre.

The Tribunal noted Ms Sharp’s claim that her records of tenancy agreements and bond payments had been destroyed was not consistent with some of these records later being discovered.

The Tribunal Adjudicator, Rex Woodhouse, also stated the breaches were severe enough to issue Ms Sharp with a three-year restraining order.

“The Tribunal has made significant orders against the landlord, and in the circumstances of this case determined that a restraining order is required, to prohibit future breaches from occurring should the landlord operate another boarding house.”

A Dangerous and Insanitary Building Notice (DIBN) was issued by Auckland City Council in September 2020, that required all occupants to vacate the premises within 10 days.  The landlord subsequently shut down the boarding house down, which has since been demolished.

Tenancy Tribunal decision can be found here:
10020524-Tribunal Order Redacted [PDF 11.1 MB](external link) — Justice.govt

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