File picture. Photo: 123RF
A tenant who fell behind on rent while trying to get off the benefit and into work has been told by the Tenancy Tribunal that she must pay her arrears back at $40 a week until 2027 if she wants to remain in the property.
Kelly-Ann Perry told the Tenancy Tribunal that she had rented the Feilding house for 16 years and had brought up her children there.
The landlord, Colliers New Zealand acting for LINZ, wanted to terminate the tenancy because she had fallen into arrears and was $8791 in debt. But she wanted to repay it to be able to stay.
She said, in July 2023 she wanted to get off the benefit and find a job. She told Work and Income she had found work and her benefit was cut during her training time, before she had begun to be paid.
There was a delay in her first pay being received and she said she started to fall behind financially.
She also encountered difficulties taking over the rental payments from Work and Income and did not receive the bank details to pay her rent for several months.
In November, a new property manager took over the property and made contact with the tenant to discover she had been laid off from her new job.
She said she had been told by Work and Income there was a stand-down period for her benefit and she would have no income until that recommenced.
Perry said she had asked Work and Income for assistance with the arrears but was told she could only receive four weeks' rent in a lump sum if the tenancy was terminated.
Because the landlord informed Work and Income that it was seeking to terminate because of the arrears, the money was not sent.
In March, Perry put in place an arrangement to pay an extra $40 on top of her rent each week to clear the arrears.
She wanted to continue to do that, and to use a lump sum from Work and Income to help. But the landlord still wanted to terminate the tenancy immediately and went back to the tribunal last month to request an order to that effect.
Tenancy adjudicator G Guptill said, while the rent arrears were high, the landlord had not taken all reasonable steps to mitigate the loss, as was required under the Residential Tenancies Act, and did not file proceedings until six months after the arrears began to accrue.
"After a difficult period in her life the tenant has now taken active steps to make arrangements to pay the arrears. She has approached WINZ and understands that they will assist with a lump sum if the tenancy is able to continue.
"She has put in place a payment plan which has been in place for ten weeks and begun to reduce the arrears. She stated that she has engaged with a budgeter who is providing her with assistance.
"Having carefully considered the facts of this case including the tenant's long history in these premises, the circumstances that gave rise to the rent arrears and the steps the tenant has taken to begin payment of the arrears I am satisfied the tenant will pay the debt within the period specified in the order and is unlikely to commit any further relevant breach."
Guptill granted a conditional termination order which meant that if Perry did not comply with the payment schedule, the landlord would regain possession of the property.
