What happens if you abandon a rental property?

Abandonment of a Rental Property in New Zealand

When a tenant leaves a rental property without properly terminating their tenancy agreement, this situation is generally referred to as abandonment. New Zealand tenancy law, primarily under the Residential Tenancies Act 1986, outlines specific procedures and obligations for both landlords and tenants in such circumstances.

What Constitutes Abandonment?

A rental property may be treated as abandoned if the Tenancy Tribunal (Tenancy Tribunal means a specialist court that resolves disputes between landlords and tenants [Source: Residential Tenancies Act 1986, s 77]) is satisfied that the tenant has abandoned the premises and is not likely to return, and has not given a valid notice to terminate the tenancy [Source: Residential Tenancies Act 1986, s 62B(2)]. Indicators of abandonment can include a tenant ceasing to occupy the premises, failing to pay rent, or disconnecting utilities, but these factors alone do not automatically mean the property is legally abandoned.

Landlord's Rights and Obligations Regarding Entry

If a landlord has reasonable grounds to believe that a tenant has abandoned the premises, they may enter the property without the tenant's consent for the purpose of verifying abandonment and securing the premises [Source: Residential Tenancies Act 1986, s 62A(1)(a)]. Before entering, the landlord must make reasonable efforts to give the tenant written notice of their intention to enter, allowing at least 24 hours before entry. This notice is not required if the tenant cannot be contacted [Source: Residential Tenancies Act 1986, s 62A(1)(b)].

Terminating an Abandoned Tenancy

A tenancy agreement cannot be unilaterally terminated by a landlord solely on the belief that a property has been abandoned. Instead, the landlord must apply to the Tenancy Tribunal for an order treating the premises as abandoned [Source: Residential Tenancies Act 1986, s 62B(1)].

When considering such an application, the Tribunal will assess if there is sufficient evidence that the tenant has abandoned the property and is not likely to return [Source: Residential Tenancies Act 1986, s 62B(2)]. If the Tribunal makes an order treating the premises as abandoned, the tenancy agreement is deemed to have terminated on the date specified in that order [Source: Residential Tenancies Act 1986, s 62B(3)].

Tenant's Liabilities

Even if a tenancy is terminated by the Tenancy Tribunal due to abandonment, the tenant remains liable for certain costs. This includes:

Rent arrears up to the date the tenancy is terminated by the Tribunal's order [Source: Residential Tenancies Act 1986, s 62B(3)].
Compensation for losses suffered by the landlord due to the abandonment. This can include loss of rent for the period the property remains vacant after the tenancy is terminated, as well as reasonable costs incurred in finding a new tenant [Source: Residential Tenancies Act 1986, s 62B(4) implies the Tribunal may make an order for compensation for such loss]. However, landlords have a duty to mitigate (mitigate means to take all reasonable steps to reduce or avoid any loss or damage) their losses, meaning they must take reasonable steps to find new tenants as quickly as possible [Source: Residential Tenancies Act 1986, s 100(3)].

Goods Left Behind

If a tenant leaves goods on the premises after the tenancy has terminated (whether by abandonment or other means), the landlord has specific responsibilities:

Storage and Care: The landlord must store the goods and take reasonable care of them for at least 35 days [Source: Residential Tenancies Act 1986, s 62C(1) & (3)(a)].
Contacting the Tenant: The landlord must make reasonable efforts to contact the former tenant to advise them that goods have been left behind and provide a reasonable opportunity for them to reclaim the goods [Source: Residential Tenancies Act 1986, s 62C(2)].
Disposal or Sale: If the goods are not reclaimed within 35 days of the landlord becoming aware of their location, or after the tenant has been contacted, the landlord may dispose of them or sell them [Source: Residential Tenancies Act 1986, s 62C(4)].
Proceeds of Sale: If goods are sold, the landlord can deduct the reasonable costs of storage and sale from the proceeds. Any remaining money must be paid to the former tenant [Source: Residential Tenancies Act 1986, s 62C(5)]. If the goods are perishable or have little or no value, the landlord may dispose of them immediately [Source: Residential Tenancies Act 1986, s 62C(6)].

When to Seek Independent Legal Advice

For specific guidance on individual situations involving residential tenancy abandonment, particularly regarding applying to the Tenancy Tribunal, assessing liabilities, or handling personal property, it is recommended that landlords and tenants consult with Tenancy Services or seek assistance from Community Law Centres for free legal information.