Published 09 July 2018
Appeal from Tenancy Tribunal — cross appeal — appeal against orders — application for costs — damages — fixed term tenancy agreement — termination of tenancy — damage to property — unforeseen change — Residential Tenancies Act 1986, ss 66 & 85. The appellants sought to appeal a decision from the Tenancy Tribunal; a cross-appeal was lodged by the defendants. The appellants sought that the decision of the Tenancy Tribunal be set aside and that the respondents be ordered to pay loss of rent and costs. The defendants also sought to have the decision set aside, and for damages to be awarded against the appellants together with costs. The appellants were the owner and property manager of a rental property rented by the respondents under a fixed term tenancy agreement. Following maintenance issues and a deteriorating relationship between the parties the respondents purported to terminate the tenancy early, vacating the premises and applying to the Tribunal for reduction of the term of tenancy, damages and a refund of the bond. The Tribunal decision ordered that the term of the tenancy be reduced and that the respondents pay to the appellants the bond which would cover the rent for the period leading up to the end of the agreement. The respondents had raised complaints about the property throughout their tenancy which the court noted were "relatively minor" and were not a severe hardship as the respondent's continued their tenancy despite those complaints. The court found that there were no grounds to reduce the term of the tenancy with respect to the issues raised and that the respondents were wrong to vacate the premises following the short notice period, however the court also found that the appellants had not taken sensible, prudent and immediate steps to mitigate their loss of rent as they were obligated to do. As the appellants had taken "casual" steps to mitigate the loss, the court balanced the loss suffered by them and awarded that the respondents be ordered to pay loss of rent for half of the remainder of the fixed term tenancy. The decision of the Tenancy Tribunal was accordingly set aside. No order was made as to costs. Judgment Date: 25 September 2017.
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