Rent reduction for sub-division

Our Experts Answer:

Where a property sells and existing tenants remain in the property, the terms and conditions of the existing tenancy will normally continue with the new property owner (the landlord) inheriting the original tenancy agreement.

Where a landlord wishes to vary the terms of the tenancy agreement, for example by removing amenities or facilities, or by sub-dividing the premises, this may only be done with the consent of the tenant(s). As part of any negotiations to vary the agreement, if the tenant was to lose access to a part of the property or its facilities, the tenant may wish to negotiate the terms associated with the varied agreement (eg: by way of a rent-reduction or compensation) for the loss of amenities, be it space or facilities.

If the landlord and tenant cannot reach an agreement as to whether any form of compensation will apply to the proposed variation of the agreement, and perceived loss of amenity, the tenant may make an application to the Tenancy Tribunal to have the matter resolved.

If you need any further assistance or advice please visit our website at www.tenancy.govt.nz or call our Tenancy Advice line on 0800 TENANCY (0800 836 262).