A Christchurch landlord has been ordered to pay more than $13,000 in exemplary damages and rent refunds after accepting a property rented to three tenants was unlawful for residential use.
Trott Dairy Limited, which owns and manages around 40 rental properties in Christchurch, admitted breaching the Residential Tenancies Act 1986 and must pay $3,400 in exemplary damages and $10,000 in rent refunds.
The Ministry of Business, Innovation and Employment (MBIE) launched an investigation into the Bishopdale property in July 2023 following a referral from Christchurch City Council.
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MBIE’s Tenancy Compliance and Investigations Team (TCIT) found a detached garage on the site had been unlawfully converted into a residential unit. Inspectors reported daylight visible through gaps in the walls and ceiling, exposed insulation, a leaking roof, insufficient smoke alarms, and external guttering overflowing into the dining area. The yard was littered with industrial rubbish and extensive earthworks were underway.
At a Tenancy Tribunal hearing on 30 January, Trott Dairy Limited admitted to unlawful acts, including using non-compliant tenancy agreements and failing to lodge tenants’ bonds. The company accepted the garage was not a lawful residential premise and agreed to a partial rent refund.
TCIT National Manager Brett Wilson said MBIE took the case to the tribunal because of the serious nature of the breaches, even though the tenants chose not to take part in the hearing.
“The tenants suffered a number of illnesses that they attributed to the condition of the property, which the landlord accepted was not a lawful residential premise, but they were worried they would lose their tenancy if they complained,” Wilson said.
He said Trott Dairy Limited should have been fully aware of its responsibilities under tenancy law, particularly given the scale of its property portfolio.
“The tenants were particularly vulnerable because they were on temporary entry visas and were reliant on the landlord. The landlord promised them a tenancy in a property they had been working on. This promise was never fulfilled and instead the landlord provided them with a property that was not fit for residential purposes.”
The Tenancy Tribunal also issued Trott Dairy Limited with a three-year restraining order preventing them from committing the same unlawful acts.
