Landlords Urge Tenancy Tribunal to Track Unpaid Awards Nationwide

Landlords in New Zealand are advocating for the Tenancy Tribunal to maintain records of unpaid awards, highlighting a significant gap in the current system. This request follows an inquiry by the Waikato Times into the total amount owed to landlords across the country, which revealed that no such data is available.

The Tenancy Tribunal holds the authority to impose substantial fines on tenants who fail to comply with rental agreements. Examples of financial claims include lawn mowing bills exceeding $1,000, rent arrears reaching $25,000, and damages classified as “beyond wear and tear” amounting to $12,500. Despite these significant figures, the extent of recoveries remains unknown.

In response to the Waikato Times request under the Official Information Act, the Ministry of Justice stated that it does not track or report on Tribunal fines. This request was subsequently transferred to the Ministry of Business, Innovation & Employment (MBIE), which confirmed that the information is not held by any government department or local authority.

Matt Ball, a spokesperson for the New Zealand Property Investors Federation, expressed surprise at the absence of this critical data. He emphasized that without insight into how much money is retrieved from Tribunal decisions, stakeholders cannot gauge the effectiveness of the Tribunal. “If you don’t know how much money is recovered from Tenancy Tribunal decisions, you have no idea how well the Tribunal is working or if it’s worth making a claim,” he remarked.

Ball pointed out that the current enforcement process for Tribunal awards can be cumbersome, as it falls under civil law. If a tenant refuses to pay, landlords must pursue the matter independently through the courts. This often discourages landlords from seeking relief through the Tribunal, especially for amounts beyond the initial bond.

While Ball advocates for enhanced tracking of payment recoveries, he acknowledges that the existing system is challenging yet not insurmountable. “It’s not impossible, and we feel that it would be worthwhile trying,” he stated, urging the government to collect this data for a more transparent and efficient rental market.

Conversely, Tiffany Whyte, President of the Waikato Property Investors Association, expressed a more lenient perspective. She suggested that establishing a civil matter registry for such payments may not be necessary, as similar registries do not exist for other civil cases. “I don’t see any need to have a civil matter registry for amounts paid or being paid and needing to be updated weekly,” she said.

While admitting that navigating the Tribunal process can be complex, Whyte noted that experienced property managers often understand the requirements better than less experienced landlords and tenants. She highlighted the need for factual evidence during hearings, cautioning that misconceptions about logic influencing decisions often lead to unsuccessful claims.

Whyte did raise an important concern regarding “recidivist landlords,” those who repeatedly engage in problematic behavior without facing adequate consequences. She argued that targeting these landlords should be a priority for the Tribunal and relevant authorities.

Delays in the Tribunal process also emerged as a significant issue. Whyte recounted a recent case where the tenancy ended in May of the previous year, yet the matter was only heard the day before her interview with the Waikato Times.

As discussions around the efficiency of the Tenancy Tribunal continue, the call for transparency in tracking unpaid awards may play a crucial role in restoring confidence among both landlords and tenants within New Zealand’s rental market.