Even with careful tenant selection and a well-managed property, disputes can arise between landlords and tenants. Issues such as unpaid rent, property damage, or breaches of the tenancy agreement can lead to conflict. Knowing how to handle disputes professionally and in accordance with New Zealand tenancy laws is essential for protecting your investment and maintaining a fair rental process.
This article will guide you through common landlord-tenant disputes and how to resolve them effectively.
Common Landlord-Tenant Disputes and How to Handle Them
1. Unpaid Rent
Late or missed rent payments are one of the most frequent issues landlords face.
✅ How to Handle It:
- Send a Friendly Reminder: If the tenant misses a payment, follow up with a polite text, email, or phone call.
- Issue a 14-Day Notice to Remedy: If rent remains unpaid, provide a written notice giving the tenant 14 days to pay the overdue amount.
- Apply to the Tenancy Tribunal: If rent is more than 21 days overdue, landlords can apply to the Tenancy Tribunal to recover the unpaid rent or terminate the tenancy.
❌ What NOT to Do:
- Do not harass or threaten tenants for payment.
- Do not change the locks or remove tenant belongings—this is illegal.
2. Property Damage
Damage beyond normal wear and tear can lead to disputes over responsibility for repairs.
✅ How to Handle It:
- Identify the Type of Damage:
- Fair wear and tear (e.g., faded carpets, minor scuffs) is the landlord’s responsibility.
- Tenant-caused damage (e.g., holes in walls, broken windows) should be repaired by the tenant.
- Request the Tenant to Fix the Issue: If the damage is minor, ask the tenant to arrange repairs.
- Use the Bond for Repairs: If necessary, apply to Tenancy Services to claim repair costs from the tenant’s bond.
- Apply to the Tenancy Tribunal: If the damage is severe or disputed, file a claim for compensation.
3. Tenant Breaching the Tenancy Agreement
Tenants may breach their agreement by:
- Keeping pets without permission.
- Subletting the property without consent.
- Ignoring body corporate rules (e.g., noise complaints, parking violations).
✅ How to Handle It:
- Issue a 14-Day Notice to Remedy: This gives the tenant 14 days to correct the issue.
- If Unresolved, Apply to the Tenancy Tribunal: If the tenant refuses to comply, you can seek legal enforcement.
4. Tenant Refuses to Leave After Termination
If a tenancy has been lawfully ended but the tenant refuses to vacate, the landlord must follow legal procedures.
✅ How to Handle It:
- File for a Possession Order with the Tenancy Tribunal.
- If the Tenant Still Refuses to Leave, Request Bailiff Assistance.
- A court-appointed bailiff can legally remove the tenant.
- Landlords cannot forcibly evict tenants themselves—this is illegal.
Mediation vs. Tenancy Tribunal: Choosing the Right Option
Disputes can be resolved through either mediation or the Tenancy Tribunal, depending on the situation.
| Method | Best For | Process | Outcome |
|---|---|---|---|
| Mediation | Minor disputes (e.g., unpaid rent, small repairs) | A Tenancy Services mediator helps both parties reach an agreement | A legally binding settlement is signed |
| Tenancy Tribunal | Serious disputes (e.g., eviction, major damage) | A formal hearing where a Tribunal adjudicator makes a decision | A legally enforceable ruling is issued |
Mediation is quicker and less costly, but if no agreement is reached, the case proceeds to the Tenancy Tribunal.
How to Prevent Disputes Before They Happen
While some disputes are unavoidable, many can be prevented with proactive management.
✅ Set Clear Expectations: Ensure the tenancy agreement outlines all rules and responsibilities.
✅ Keep Open Communication: Address tenant concerns early before they escalate.
✅ Conduct Regular Inspections: Catch maintenance issues before they become major problems.
✅ Maintain Accurate Records: Keep copies of all communications, rent payments, and inspection reports.
Handling disputes professionally and legally is crucial for successful property management. Whether it’s unpaid rent, property damage, or tenancy breaches, landlords should follow proper legal processes to resolve conflicts fairly.
By staying informed and proactive, you can minimize disputes and maintain a well-managed rental property.
In the next article, we’ll explore tax and financial considerations for property investors, covering rental income, deductible expenses, and tax obligations in New Zealand.