A Christchurch landlord thought he’d recover nearly $23,000 in unpaid rent. When he finally went to the Tenancy Tribunal, he walked out with just $6,150. That’s a $16,800 shortfall, not because of dodgy receipts or legal technicalities, but because he sat on the debt for far too long.
If you’re a private landlord, this case is a wake-up call. Here’s what happened, how the Tribunal saw it, and how to avoid making the same costly error.
1. Act Early or Lose Big
Rent arrears started in 2018. By mid-2019, thousands were already owed. For years, the landlord trusted the tenant’s promises to repay but did nothing, no notices, no Tribunal application.
When he finally filed, the Tribunal only counted arrears from the last three years. The rest was gone. That delay cost him a $16,800 shortfall.
“The Tribunal isn’t being anti-landlord,” says APIA General Manager Sarina Gibbon. “The adjudicator is simply applying the equitable doctrine of laches, which basically says to litigants, ‘You don’t get to be indolent and still get the full benefit of the law.’”
When arrears start climbing, inaction hampers your recovery. Don’t dilly dally. Laches can be wider reaching than the Limitations Act. Document breaches, serve notices, and escalate fast.
2. The Cash Payment Black Hole
The tenant claimed he’d paid $21,000 in cash. The landlord denied it. With no receipts or reliable ledger, neither could prove their side.
The Tribunal didn’t even need to decide who was telling the truth. The claim was already slashed by years of delay. If it isn’t in writing, it may as well not exist.
Fix it:
- Give receipts for every cash payment.
- Keep your rent ledger tight.
- Reconcile deposits regularly.
3. Understanding Tribunal Logic
Tribunal adjudicators look for fairness, not just unpaid sums. Here, they saw a landlord who let arrears pile up while giving endless second chances.
That’s not “reasonable management”, it’s failing to protect your own position. “The kindest thing you can do for a struggling tenant, and yourself, is to step in early with clear, documented evidence. Doing nothing is not compassion, it’s negligence,” says Sarina.
4. How to Avoid a $16,800 Shortfall
Here’s how everyday landlords can keep arrears from wrecking their returns:
- Set a line: Know how many weeks of arrears trigger action and stick to it.
- Serve notices early: A 14-day breach notice is necessary, not harsh.
- Go to Tribunal fast: If arrears don’t improve, file your claim before it snowballs.
- Document everything: Payments, notices, emails, texts, record it all.
Good management isn’t about being tough. It’s about stopping losses before they sink you and your tenant.
Learn Before It Costs You
This landlord didn’t just lose a Tribunal case. He ended up with a $16,800 shortfall because he sat on unpaid rent for years.
At APIA, we teach landlords to act early, manage arrears confidently, and understand how the Tribunal views delay. Don’t wait until arrears wipe out your profits. Join APIA today and get the tools to protect your rental business before it’s too late.
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