Property Management

Big damage pay-out awarded to landlord

Tenant liability for damage has long been a fraught issue but a new Tenancy Tribunal case shows that damage rulings can sometimes favour a landlord.

Monday, October 05th 2020

Damaged walls, carpets, and kitchen appliances. Cigarette burns on floors and tiling. A broken garage door.

This catalogue of destruction is a landlord’s nightmare – and it’s what faced KPKR Investment Group Limited when the tenancy of one of their rental properties ended recently.

When Faith Dryer’s tenancy came to an end in early August, they found the Tuakau rental had suffered extensive damage which, in their view, was intentional.

The situation prompted KPKR Investment Group (represented by K.Patel) to head to the Tenancy Tribunal to try and recoup some costs.

As many landlords know, when it comes to tenant damage this can be problematic.

That’s because, under the Residential Tenancies Act, a landlord must prove that damage to the premises occurred during the tenancy and is more than fair wear and tear.

If this is established, the tenant must prove they did not carelessly or intentionally cause or permit the damage in order to avoid liability.

Where it’s found the damage has been caused carelessly, and is covered by the landlord's insurance, the tenant's liability is limited to the lesser of the insurance excess or four weeks' rent.

However, tenants are liable for the cost of repairing damage that is intentional or which results from any activity at the premises that is an imprisonable offence.

In the ruling on this case, Tribunal adjudicator, J.Tam, explains that damage is intentional where a person intends to cause damage and takes the necessary steps to achieve that purpose.

“Damage is also intentional where a person does something, or allows a situation to continue, knowing that damage is a certainty.”

Tam divided up the catalogue to the Tuakau property into damage which was intentionally caused and damage which was carelessly caused.

The following damage was intentionally caused during the tenancy: damage to the walls, dishwasher, rangehood, kitchen drawer, tiling and flooring.

“The damage is more than fair wear and tear, and the tenant has not disproved liability for the damage,” Tam said.

The following damage was carelessly caused during the tenancy: damage to the garage door, carpet, and bathroom.

“The damage is more than fair wear and tear, and the tenant has not disproved liability for the damage,” Tam said. “Liability on careless damage however has been limited to four weeks' rent.”

For that reason, Dryer was ordered to pay KPKR Investment Group Limited $17,090 immediately.

Tam also broke down the damage into categories and applied relevant costs to each group, with the biggest amounts ordered for wall repairs including painting ($7,530) and the replacement of oven, dishwasher, rangehood, and kitchen drawers ($3,750).

Read more:

Tenants liable for careless damage – to a point 

Comments

On Monday, October 05th 2020 10:35 pm Peter L said:

"For that reason, Dryer was ordered to pay KPKR Investment Group Limited $17,090 immediately." And pigs will fly. An award is one thing, actually getting the money is another, and the law is of very little help here.

Most Read

Unity First Home Buyer special 3.99
SBS FirstHome Combo 3.99
ICBC 4.25
TSB Special 4.39
Co-operative Bank - First Home Special 4.39
SBS Bank Special 4.49
Unity Special 4.49
ANZ Special 4.49
Westpac Special 4.49
Kiwibank Special 4.49
Co-operative Bank - Owner Occ 4.49
Kainga Ora 4.49
ICBC 4.59
Nelson Building Society 4.67
Unity Special 4.69
ANZ Special 4.69
BNZ - Std 4.69
Wairarapa Building Society 4.79
Westpac Special 4.89
SBS Bank Special 4.89
Kiwibank Special 4.89
Co-operative Bank - Owner Occ 4.89
ICBC 4.99
Kainga Ora 5.15
Westpac Special 5.29
ASB Bank 5.69
TSB Special 5.69
BNZ - Std 5.69
SBS Bank Special 5.69
Co-operative Bank - Owner Occ 5.69
AIA - Go Home Loans 5.69
Kiwibank Special 5.79
Westpac 5.89
SBS FirstHome Combo 3.29
AIA - Back My Build 3.34
SBS Construction lending for FHB 3.74
CFML 321 Loans 3.95
Co-operative Bank - Owner Occ 4.99
Co-operative Bank - Standard 4.99
Heartland Bank - Online 5.30
ICBC 5.39
Kiwibank - Offset 5.65
Kiwibank 5.65
Kainga Ora 5.69

More Stories

Thursday, February 19th 2026

RBNZ expects slower house price growth in the current recovery

The Reserve Bank thinks house prices will rise at a much slower pace during the current recovery than they have in past cycles.

Wednesday, January 07th 2026

Queenstown not off the radar for first home buyers

First home buyers are not being deterred by Queenstown’s soaring house prices.

Record levels of first home buyers taking out low deposit loans

Tuesday, December 23rd 2025

Record levels of first home buyers taking out low deposit loans

About half of all first home buyer lending has been done at a less than 20% deposit in recent months.

Buyers sitting on the sidelines in best time to buy in a decade

Thursday, December 04th 2025

Buyers sitting on the sidelines in best time to buy in a decade

Stable house prices, low interest rates and plenty of houses to choose from are still not enticing buyers.