1.6 Penalties/Fines for Breaching the Residential Tenancies Act

Tenants, agents and property owners who breach the Residential Tenancies Act (1987) may be prosecuted and fined.

The Ministry of Fair Trading has the power to investigate an offence committed under the Act or the infringement of a party's rights arising out of a residential tenancy agreement (s.8(d)). This can include the investigation of a person who was a prospective or former party to a residential tenancies agreement.

Why can a tenant be penalised?

Below is a list of tenant breaches of the Act and penalties they may attract:

• Failing to pay rent with the intention that it be recovered from the security bond - $1000 (s.52).
• Giving the owner a false name or place of occupation (s.53(1)), or not notifying the owner that their place of occupation has changed within 14 days (s.53(2)) - $1000.
• Not leaving a forwarding address when vacating the property - $1000 (s.53(3)).

Why can an owner be penalised?

Below is a list of owner/agent breaches of the Act and penalties they may attract:

• Asking for, or requiring, money from a tenant or prospective tenant before entering into, extending or continuing a tenancy agreement - $1000 (s.27(1)).
• Asking a tenant to pay more than a fortnight rent before or during the first two weeks of a tenancy agreement, or requesting another rent payment before the first payment has expired - $1000 (s.28 (1)(2)).
• Asking for more than one security bond or requesting more than four weeks rent as a bond (unless allowed under s29(2)) - $1000 (s.29(1)).
• Not providing a receipt for security bond monies received, or not depositing the bond into an account as required under Schedule 1 of the Act - $4000 (s.29(4)).
• Demanding or receiving any rent that is beyond an amount set by a Court Order - $1000 (s.32(7)).
• Not giving a receipt within three days of receiving the rent (except where the rent is paid into a bank, building society or similar body (s33(2)), or if the receipt does not show all the required details - $1000 (s.33(1)).
• Not keeping records showing the rent received from the property (s.34(1)), or knowingly making a false entry in the records showing the rent received (s.34(2)) - $1000.
• Requiring a post-dated cheque for payment of rent - $1000 (s.35).
• Altering, removing or adding any lock by the agent of the owner without the consent of the tenant - $4000 plus any civil liability (s45(3)).
• Failing to notify the tenant of their full name and address (the address can be care of a real estate agent (s51(2)) , or the name and address of any other person that has superior title on the property, or if the owner is a body corporate, the body corporate's name and address, at the time of entering into the agreement - $1000 (s.51(1)).
• Not notifying the tenants of their full name and address, or if the owner is a body corporate, the body corporate's name and address, within 14 days of purchasing a rental property - $1000 (s.51(3)).
• Not notifyinge tenant, where the tenant is required to be told of the owner's name and address, of any change in name or address within 14 days. $1000 (s.51(4)).
• Not providing the tenant with a copy of the written tenancy agreement document at the time it is signed by the tenant and ensuring that a fully executed copy of the document is delivered within 21 days or as soon as reasonably possible - $1000 (s.54(1)).
• Refusing a tenant on the grounds that a child will be living on the premises (s.56(1)) or instructing any person, or stating their intention in an advertisement, not to accept a tenant should a child be living with them (s.56(2)) - $1000. (This penalty does not apply if the premises are the principal residence of the owner, or if the owner or agent lives in adjoining premises (s56(3)).
• Falsely giving notice to quit on the grounds of the property being sold - $2000 (s.63(3)).
• Trying to recover a property without a Court Order whilst the tenant is still in possession of the property (legally or otherwise) - $4000 (s.80).
• Entering into an agreement or arrangement that is inconsistent with a provision of the Act or with intent to directly or indirectly defeat, evade or prevent the operation of the Act - $2000 (s.82(2)).
• Asking for more than one letting fee or a letting fee that exceeds two weeks rent - $500 (s.86(1)).

Why can both owners and tenants be penalised?

Below is a list of breaches of the Act that could apply to owner/agents and tenants and the penalties they may attract:

• Ignoring a Court Order (s.16(1)) or failing to appear in court after being summonsed or not producing summonsed documents (s.19(2)) without reasonable excuse - $2000.
• Demanding or receiving money or a reward for representing or helping someone in legal proceedings (except in certain circumstances) - $1000 (s.22(5)).
• Altering, removing or adding any lock by the tenant or owner without the prior consent of the other party - $4000 plus any civil liability (S.45(2)).

How can I complain about a breach of the Residential Tenancies Act?

If you wish to make a formal complaint you can complete a residential tenancy complaint form or write a letter. Complaint forms are available from the Ministry of Fair Trading or the Tenants Advice Service. Send your complaint form to:

Commissioner of Fair Trading

Your complaint should clearly detail the breach (dates, people, places), and ask the the Commissioner to investigate the matter and, if appropriate, prosecute the offending party. The complaint must be made within three months of the termination of the tenancy agreement (s.9(3)(b)) to enable the Commissioner to take action on the complaint.

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