Two Auckland landlords have been ordered to pay a combined $25,900 in exemplary damages and compensation on behalf of two tenants who were unlawfully evicted after complaining about the state of their rentals.
Investigators from MBIE’s Tenancy Compliance and Investigations Team said the properties were “some of the worst they have ever seen”.
An investigation was launched into the two Mangere East units after receiving complaints about sewerage running through the properties and no hot water.
Investigators identified multiple issues with the units, including sewerage and electrical problems, a lack of working smoke alarms, a failure to keep the properties clean and reasonably maintained, and the termination of one tenancy without sufficient reason.
They found the shower tray in one unit was full of wastewater. The kitchen had visible stains from leaking wastewater in the above bathroom, creating a strong smell.
The other unit had a fan heater on the wall, which leaked a “brown liquid” when used.

“One tenant had to drill a hole in the kitchen floor for the sewerage to drain out of the kitchen,” TCIT national manager Brett Wilson said.
“In the other unit, the shower flooded when used and wastewater would leak through into the kitchen when it rained. It got to the extent where she had to shower standing in a bucket.”
After complaining to MBIE, the two tenants were “intimidated” for raising concerns.

MBIE took 8A Gray Avenue Limited and LDW Limited to the Tenancy Tribunal on behalf of the two tenants. Adjudicator K Lash found that the landlords had failed to provide premises that were in a reasonable state of cleanliness and maintained them in a reasonable state of repair.
The landlords failed to attend the hearing and provided no evidence or statements to defend themselves.
Lash said the case was among the “most egregious” and was satisfied the unlawful acts were “committed intentionally”.

“Both respondents are landlords of multiple properties. That is the business they are in. They do and/or should know the law and in particular their obligations under the Act.”
Lash was “satisfied” the intent of the landlords could be inferred as “malicious at worst, but intentional at the very least”.
“They were aware of the state of both units, not only by the tenants themselves notifying them via the various property managers but also the TCIT involvement. A number of issues were also readily observable.”

The adjudicator said that no person could be expected to live in such “unsanitary and dangerous conditions”.
The landlords were ordered to pay $19,900 in exemplary damages, and the tenants were each awarded $3000 to compensate for the stress they endured while living in the units.
Lash said the tribunal usually only ordered maximum exemplary damages in the “most egregious” cases. “This was such a case,” they said.

The landlords were also issued a six-year restraining order from committing similar breaches of tenancy laws.
“Both these tenants were treated with disregard. Their complaints and requests were ignored. Both were intimidated to leave their homes…neither were afforded a safe and comfortable living environment, and their vulnerabilities were prayed on,” Lash said.
Wilson said it was clear the tenants had been treated “very badly” and said it was disturbing how they were disregarded and intimidated for raising legitimate concerns.

“Despite the terrible living conditions they were confronted with, these tenants were exceptionally vulnerable and felt they had to accept the units as they found them.
“TCIT will not hesitate to take a case to the Tenancy Tribunal where vulnerable tenants are being exploited and treated in the way these tenants were.”
