A periodic tenant is 23 days behind with rent when the property manager files a Tribunal application. What does section 55 require the Tribunal to do?
Correct Answer
A) Terminate it, unless arrears are paid, the landlord compensated and repeat breach unlikely
Section 55(1)(a) says the Tribunal shall make a termination order if rent was at least 21 days in arrears when the application was filed. It may refuse only if the breach has been remedied, the landlord compensated, and further breach is unlikely (s 55(2)), or make a conditional order under s 55(1A). No prior notice of the application is needed.
Why This Is the Correct Answer
At 21 days' arrears s 55 makes termination the normal outcome, with limited exceptions.
Why the Other Options Are Wrong
Option B: Give the tenant a 14-day notice to remedy before any termination can follow.
A 14-day notice to remedy belongs to s 56; s 55 needs no prior notice for 21 days' arrears.
Option C: Terminate only if the arrears amount to at least 60 days of rent.
The s 55 threshold is 21 days in arrears at filing, not 60 days.
Option D: Order repayment by instalments, because termination is never mandatory.
Section 55 says the Tribunal shall terminate, subject only to the narrow s 55(2) exception.
Background Knowledge for Property Management
Source: https://www.legislation.govt.nz/act/public/1986/0120/latest/whole.html
Exam Tip for Property Management
21 days in arrears at filing: s 55 termination.
Common Mistakes to Avoid on Property Management Questions
- •Mixing up the s 55 arrears ground with the 14-day notice process in s 56.
More Property Management Questions
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Which of the following is a mandatory requirement for all rental properties under the Healthy Homes standards?
A periodic tenancy began 8 months ago and the rent has never been raised. If the landlord gives written notice today, when is the earliest a rent increase can take effect?
A property manager discovers a tenant has been subletting rooms without permission for 6 months, generating significant income. The head tenant is otherwise compliant and rent is current. What factors would most influence the Tenancy Tribunal's decision on termination?
Under the Residential Tenancies Act 1986, what is the most a landlord can charge as a general bond (not counting any separate pet bond)?
- → Which of the following is NOT a mandatory requirement for tenancy agreements under the Residential Tenancies Act?
- → How much notice must a landlord give a tenant before conducting a routine property inspection?
- → A tenant has given 21 days' notice to terminate a periodic tenancy but wants to leave 5 days early. What must happen for this to be legally acceptable?
- → A tenant claims bond refund for $1,200 but the landlord disputes $400 for carpet cleaning. The tenant disagrees and applies to the Tenancy Tribunal. What happens to the bond during this dispute?
- → How often may a landlord carry out routine inspections during a tenancy?
- → A landlord wants to increase rent for a periodic tenancy. What is the minimum notice period they must give?
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- → By what date did all private rental properties in New Zealand have to comply with the healthy homes standards?
- → A property manager conducts an inspection and finds the tenant has installed a heat pump without permission. The tenancy agreement prohibits alterations without consent. What can the landlord legally require?
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