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tenancy

Can rent be reduced if part of the house becomes unusable?

Key Takeaway

If part of a rented property in New Zealand becomes unusable due to damage or destruction, the rent may be reduced. The Residential Tenancies Act 1986 specifies that rent abates proportionally to the damage, unless caused by the tenant. If agreement cannot be reached, the Tenancy Tribunal can determine the appropriate rent reduction.

Rent Reduction for Unusable Parts of a Residential Property in New Zealand

Landlord's Obligation to Maintain Premises

Landlords in New Zealand have a legal obligation to provide and maintain the premises in a reasonable state of repair [Source: Residential Tenancies Act 1986, s 45(1)(a)]. This includes ensuring the premises are fit for human habitation throughout the tenancy [Source: Residential Tenancies Act 1986, s 45(1)(c)].

Impact of Partial Destruction or Damage on Rent

The Residential Tenancies Act 1986 (RTA 1986) specifically addresses situations where premises become wholly or partially unusable:

  • Total Destruction or Uninhabitability: If the rented premises are destroyed or so damaged as to be uninhabitable (meaning unfit for human living), the tenancy agreement is considered to be terminated [Source: Residential Tenancies Act 1986, s 59(1)(b)]. In such cases, no rent is payable from the date of destruction or damage, and any rent paid in advance must be refunded [Source: Residential Tenancies Act 1986, s 59(1)].
  • Partial Destruction or Damage: If the premises are partially destroyed or damaged so that they are no longer in a reasonable state of repair, or cannot be used for residential purposes, the rent abates (is reduced) in proportion to the extent of the destruction or damage [Source: Residential Tenancies Act 1986, s 59(2)]. This abatement continues until the premises are repaired or reinstated, or the tenancy ends [Source: Residential Tenancies Act 1986, s 59(2)].

The determination of what constitutes "partial destruction or damage" and the appropriate proportion for rent abatement depends on the specific circumstances, including the extent of the affected area, its essential nature to the living space, and the duration of the unusability.

Tenant's Responsibility

A tenant cannot claim an abatement of rent if the destruction or damage to the premises was caused or permitted by the tenant, or by any person for whose actions the tenant is responsible (e.g., a guest) [Source: Residential Tenancies Act 1986, s 59(3)]. In such cases, the tenant may be liable for the cost of repairs.

Resolving Disputes

If a landlord and tenant cannot agree on whether rent should be abated, or the amount of the rent abatement, either party may apply to the Tenancy Tribunal for a determination [Source: Residential Tenancies Act 1986, s 64(1)]. The Tenancy Tribunal is an independent judicial body that resolves disputes between landlords and tenants. The Tribunal has the power to determine the amount of rent payable or to order compensation if a landlord has breached their responsibilities [Source: Residential Tenancies Act 1986, s 77(1)(b)].

When to Seek Independent Legal Advice

Individuals seeking specific guidance on their rights and obligations regarding rent reduction for unusable parts of a property should consult with the Tenancy Services, a community law centre, or a private lawyer. Community Law Centres provide free legal assistance and can be accessed via their website at https://communitylaw.org.nz/.

Key Resources