The landlord of a central Auckland boarding house has failed to pay $240,700 in exemplary damages, having agreed to the penalty for serious breaches affecting 64 tenants.
MBIE's Tenancy Compliance and Investigations Team (TCIT) had launched an investigation into Beach Road Hotel Limited, which operates as The Station Hotel or The Station Backpackers, following a nationwide boarding house inspection initiative prompted by the fatal Loafers Lodge fire in 2023.
The company was owned by Prakash Pandey, director of C P Asset Management Limited, part of the C P Group, one of New Zealand’s largest hotel owners and developers.
The property was among 37 visited by MBIE, Fire and Emergency New Zealand, and local councils.
Multiple breaches of the Residential Tenancies Act were identified, including no working fixed heaters, extractor fans either missing or installed without an external vent, as well as mould and water damage.
Building safety concerns were also flagged, such as an expired Building Warrant of Fitness, a lift not working on the ground floor, no approved fire evacuation plan, and unsafe escape routes with deadbolts engaged on exit doors and unstable metal platforms with "significant rust".
TCIT took the case to the Tenancy Tribunal, who issued an order by consent — meaning both parties agreed to the outcome — after mediation.
The landlord agreed to pay $240,700 in exemplary damages and accepted that he had committed the following unlawful acts:
- Failed to comply with the healthy homes standards for heating and ventilation.
- Failing to display a current Building Warrant of Fitness and comply with the Fire and Emergency New Zealand (Fire Safety, Evacuation Procedures, and Evacuation Schemes) Regulations 2018.
- Compulsory information was missing from tenancy agreements, including insulation information, healthy homes compliance, and insurance statements.
- Using “accommodation contracts” that were designed to avoid the rules of the Act.
- Not lodging bonds with Tenancy Services and taking money from the bonds at the end of a tenancy without the tenant’s agreement.
The Tribunal ordered the landlord to pay $240,700 to MBIE by October 8, with the funds intended for affected tenants. Despite an invoice being issued, no payment has been received.
TCIT national manager Brett Wilson said it was one of the largest sums ever ordered in a TCIT case, adding that many of the tenants were vulnerable and unaware of their rights.
"This is a landlord with extensive experience in the accommodation industry who went to significant lengths in an attempt to evade their responsibilities under the Residential Tenancies Act and had tenants paying large sums to live in a property that was dangerous and non-compliant."
Wilson said MBIE would take all appropriate steps to recover the money and reiterated that boarding house compliance remains a priority.
"We extend our sincere sympathies to all those affected by the Loafers Lodge fire, especially to those who lost friends and family. This property was identified because it had similar characteristics to Loafers Lodge, and poor compliance with the Building Act, Residential Tenancies Act and Healthy Homes Standards. TCIT will not hesitate to take Tribunal action to ensure a fair outcome for tenants and to ensure landlords comply with their responsibilities under the law."
Beach Road Hotel Limited agreed to be subject to a three-year restraining order from committing further unlawful acts.
They have also agreed to pay all bond money received for current tenants and any former tenants where the bond has not been refunded.
The landlord also agreed to arrange an independent specialist to conduct a comprehensive healthy homes assessment for the property and to ensure each boarding house room complies with the healthy homes standards by December 24 2025.
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