Christchurch-based Good Girls Property Management Limited have accepted they committed multiple breaches of the Residential Tenancies Act 1986 (the Act) by failing to ensure compliance with the Act across 20 different tenancies, including an unlawful termination.
Prudence Morrall is the sole director of the Good Girls Property Management Limited and has appeared on a television show about renting in New Zealand. The company has been ordered to pay a total of $5,877 by the Tenancy Tribunal including exemplary damages for failing to include insulation, insurance and Healthy Homes compliance statements in tenancy agreements, and compensation for the impact of maintenance and repair breaches on tenants.
The Tenancy Compliance and Investigations Team (TCIT) in the Ministry of Business, Innovation and Employment (MBIE) took the case to the Tenancy Tribunal. Brett Wilson, National Manager TCIT, says Good Girls Property Management Limited have an obligation to ensure the rental properties they manage are compliant with the Residential Tenancies Act and that any non-compliance is addressed in a timely manner.
“This is an experienced property management company who should be aware of their obligations under the Act. The Tribunal has sent a clear message that property managers cannot simply rely on landlord clients as a defence where tenants suffer harm or the law is not complied with.
“If a property owner refuses to address clear breaches of the Act, property managers should keep clear records and, if necessary, end the relationship with that client,” Brett Wilson said.
The Tribunal accepted evidence the company had raised the maintenance and repair issues with the property owners, who delayed or refused repairs because of the cost. However, the adjudicator said agents may not always be protected for the actions or inactions of their clients when those actions or inactions result in non-compliance with the Act and/or harm to a tenant. The adjudicator further stated that property managers should not prioritise the client relationship over statutory compliance.
The Tribunal also found the company committed further breaches of the Act by requiring an unlawful rent increase in respect of one tenancy, adding unenforceable clauses in the tenancy agreements in respect of eight tenancies, and unlawfully terminating a room-by-room tenancy without grounds.
Brett Wilson says the company treated the tenancy as a boarding house tenancy, which has different termination rights, despite being unsure about the actual classification of that tenancy under the Act.
“The adjudicator said Ms Morrall ‘clearly had doubts’ about whether she was correct in taking the action she did and knew she should not terminate the tenancy,” Wilson said.
“This Tribunal order reinforces that property managers have a clear professional obligation to act when they become aware of breaches. Turning a blind eye is not an option.
Property managers must take timely and appropriate action to address unlawful conduct and ensure tenants are not left to suffer the consequences,” Brett Wilson said.