12 April 2024

The Tenancy Tribunal has ordered Edgecumbe House Limited to pay exemplary damages of $37,000 to the Ministry of Business, Innovation and Employment (MBIE), on behalf of 17 tenants affected by multiple breaches of the Residential Tenancies Act 1986 (the Act).

An investigation into the Tauranga boarding house was opened by MBIE’s Tenancy Compliance and Investigations Team (TCIT) in June 2022, following a complaint by a third party.

A site visit found multiple concerns, including no heating in the main living room, the removal of multiple hot water taps, no extractor fans in the bathrooms or kitchen, and no adequate cooking facilities. Multiple tenants were also charged bond greater than 4 weeks’ rent.

The Tribunal agreed with these findings in a decision made on 5 March 2024, which found that the landlord failed to comply with the healthy homes standards for heating and ventilation. They also failed to comply with building health and safety regulations, interfered with the supply of water to tenants, and charged excessive bond on multiple occasions.

In its decision the Tribunal said, “The healthy homes standards were well signalled long before they came into force, and the breaches came to light more than 12 months after the commencement date for boarding houses. As a professional accommodation provider, Edgecumbe was required to inform itself of its legal obligations and to comply with them.”

Edgecumbe House Limited was also issued with a 3-year restraining order from committing further unlawful acts of the same kind.

“Due to the extent and scale of the potential harm and the vulnerability of the tenants, TCIT felt it was in the public interest to progress this case to the Tribunal and we are pleased to have achieved a positive outcome for the affected tenants,” says Brett Wilson, National Manager, TCIT. 

“Boarding houses have been required to comply with the healthy homes standards since 1 July 2021, but all of the tenants spoken to as part of this case were concerned that raising any issues would have had a negative effect on their tenancies.”

“The Tribunal found that the landlord acted intentionally and that while they initially acted promptly to remedy the breaches of the Act, after they were pointed out by TCIT, the landlord initially restricted how often the heater could be used, and there was a history of the landlord removing facilities or not repairing them.”

“Boarding houses are a significant focus for TCIT as they often house some of the most vulnerable people who are not in a position to address any tenancy issues themselves. A large number of the residents at this boarding house, in particular, have a history of housing insecurity,” Brett Wilson says. 

Boarding houses and the healthy homes standards 

Boarding houses must meet the healthy homes standards. This has been a requirement since 1 July 2021. All houses rented by Kāinga Ora (formerly Housing New Zealand) and registered Community Housing Providers must comply by 1 July 2024. All rental homes must comply by 1 July 2025 or within 120 days of the start of a new or renewed tenancy.

The healthy homes standards set specific and minimum standards for heating, insulation, ventilation, moisture and drainage, and draught stopping in rental properties.

Landlords must also include a healthy homes standards compliance statement in any new or renewed boarding house tenancy agreement. This has been a requirement since 1 December 2020.

About the healthy homes standards
Healthy homes standards compliance statement

Tenancy Tribunal decision

Tenancy tribual application number: 4573609(external link) — justice.govt.nz

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