Sorting things out.
Disputes, mediation and the tenancy tribunal.
Tenancies do not always run smoothly. That’s why there is advice and help available from Tenancy Services. The first thing is for people to talk to each other about the problem. Often there has been a simple misunderstanding or mistake. But if this doesn't work, Tenancy Services staff are available to talk it over. They will help with advice and information so people can decide what to do next. Sometimes people decide to talk to each other again, or to send a letter about the problem. Sometimes they decide to apply to the Tenancy Tribunal to get the matter sorted out. You apply at a Tenancy Services office. There is a standard application fee of $20.
Once an application is made, Tenancy Services starts helping sort things out by arranging a mediation meeting between the landlord and tenant. This is where most things are resolved. As a last resort people attend a Tenancy Tribunal hearing for a decision.
What is mediation?
Mediation is a meeting organised by Tenancy Services to help landlords and tenants talk about and solve their problems. A mediator helps you both discuss the problem, and come up with a workable solution. Mediators know a lot about tenancy issues, but they don’t decide anything for you.
The mediator will help you talk with, and listen to, each other, answer any questions about renting law and help you reach an agreement that you both think is fair.
If you agree – the mediator can write down the agreement if you wish. This is a mediated order. It is legally binding and will usually say what will happen if the agreement is broken. If a mediator’s order is breached, it is a simple matter to be able to enforce it as a Tribunal Order, through the Collections Unit at the District Court.
If you don’t agree – the problem can be referred to the Tenancy Tribunal for a court hearing. The Tribunal is part of the Department for Courts and is more formal than mediation.
The Tenancy Tribunal
The Tenancy Tribunal is a special court for making decisions about problems that landlords and tenants have been unable to settle themselves. A tenancy adjudicator listens to each person, hears any witnesses and evidence either side wants considered, and then makes a decision according to the Residential Tenancies Act.
The adjudicator writes down their decision as a Tribunal Order. Both parties are given a copy. The adjudicator’s decision is a court order which both sides have to obey.
Tenancy Tribunal hearings are public and either party may take support people with them. However, lawyers are not normally allowed at the hearing. There are some special cases where one would be allowed. These are:
- Where the dispute is for more than $3,000.
- Where a solicitor has been managing a person's affairs because of absence, age or disability.
- Where the other side agrees or the Tribunal allows it. If one party has a lawyer representing them, the Tribunal will usually agree to the other side having one as well.
- In some cases a representative can appear for a party. If you think you may need one you should talk this over with Tenancy Services before the hearing.
What kinds of orders can be agreed to in mediation or made at the Tenancy Tribunal?
There are a variety of orders that can happen but the most common are possession, monetary and work orders. Any order the Tenancy Tribunal can make can also be made in mediation.
Possession Order
This involves the termination of the tenancy. If the tenant does not fulfil their legal obligations and the situation is serious enough, the landlord can apply to have them evicted from the property. This can happen if the tenant is:
- more than 21 days behind in the rent.
- substantially damaging the property or threatening to do so.
- assaulting the landlord or the landlord's family or agent, other tenants or neighbours, or threatening assault.
- breaking the Tenancy Agreement (when the landlord has given at least 10 working days’ notice to put matters right and the tenant has not).
Resolving problems without eviction
Sometimes there are tenancy problems that are not serious enough for immediate termination. For example, a tenant may be disturbing the neighbours, or letting the garden get overgrown, or the landlord may not be doing the repairs that are necessary, or disturbing the tenant's quiet enjoyment of the tenancy. In these cases, the offending person must be given an opportunity to correct the breach.
A letter must be given to the tenant or landlord which explains what is wrong and gives at least 10 working days for things to be put right. (Examples of letters are available from Tenancy Services.) If the written request is not complied with, then an application may be made to the Tenancy Tribunal for termination. In these situations, and if the problem has not been sorted out, the parties may agree to end the tenancy.
If a landlord has given a tenant a 10 working day letter to get rent paid up to date, and by the time the case is heard in mediation or by the Tenancy Tribunal the rent is 21 days or more in arrears, the matter will be treated as a serious breach.
Monetary Order
This is an order to say a landlord or tenant must pay money to the other party. For example:
- Payment of rent arrears or refund of overpaid rent.
- Payment for damage, cleaning, gardening or rubbish removal
- Reimbursement of costs such as urgent repairs.
- Payment of exemplary damages (this is something like a fine) for legal breaches such as not paying the bond to Tenancy Services, seizing a tenant's goods or denying legal access.
- Payment of compensation for loss of goods or loss of use through poor repair.
Work Order
Orders may be agreed to, or made by the Tenancy Tribunal, that a person do work to remedy damage, lack of repair or maintenance. If the work order is not complied with by that person, then the person may be ordered to pay money instead.
Alternative Orders
An agreement or order can say what will happen if the order is not complied with. For example, an order for the return of goods can require monetary payment if the goods are not returned. The person in whose favour the order is made decides whether it will be enforced.
Enforcing Mediated or Tenancy Tribunal Orders
If you have a sealed Mediated Order or a Tenancy Tribunal Order you can ask the District Court to enforce the Order. A fee is payable for this service. A more detailed information sheet about enforcement is available from Tenancy Services at www.tenancy.govt.nz or on 0800 83 62 62 (0800 TENANCY).