A boarding house operator must pay more than $27,000 after authorities found its Auckland property dirty, unsafe, and non-compliant with Healthy Homes Standards.
The Tenancy Tribunal found Burnley Lodge Limited breached its responsibility under the Residential Tenancies Act.
It failed to provide required information on tenancy agreements, mishandled tenant bond payments, and failed to maintain the premises of its Mount Eden boarding house or to comply with Healthy Homes Standards, the Ministry of Business, Innovation and Employment (MBIE) said.
MBIE's Tenancy Compliance and Investigations Team (TCIT) were alerted to the situation after a referral from Auckland Council.
It visited the property and found multiple issues, including heavy black mould throughout the boarding house, and that some of the bedrooms were not approved for accommodation.
"Despite multiple investigations, notices, and inspections from TCIT the Council and Fire and Emergency New Zealand, the landlord failed to take meaningful action to address serious health and safety concerns, and TCIT lodged an application with the Tenancy Tribunal," MBIE said.
The Tenancy Tribunal found Burnley Lodge Limited acted with intent. It also said it had a history of non-compliance and failing to engage with regulatory authorities.
Adjudicator J Greene said Burnley Lodge's director, Jonathan Duncan, had made progress towards making the property compliant, though earlier actions from one of the company's shareholders, Mark Benjamin, had caused significant harm.
"It is clear that Mr Benjamin is the driving force behind that company. And it is clear from the evidence MBIE has produced that Mr Benjamin has failed to engage with MBIE in any meaningful way; he has obfuscated, and he has generally been uncooperative," Greene said.
"Simply put, if landlords want to run a business providing boarding house tenancies they must comply with all the requirements."
The Tenancy Compliance and Investigations Team national manager, Brett Wilson, said compliance for landlords was a legal requirement, not a choice.
"Burnley Lodge was home to some extremely vulnerable tenants and these tenants have the same rights as any other tenant, while the landlord has the same responsibilities to achieve and maintain compliance," Wilson said.
Burnley Lodge limited was also issued a restraining order by the Tribunal, prohibiting it from making further breaches of their obligations to tenancy agreements, bond payments, and producing documents to MBIE, for four years. A total of $27,457.94 was awarded to MBIE on behalf of the tenants.
He said the Tribunal's decision made it clear that non-compliance wouldn't be tolerated.
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