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Residential Tenancies Act 1986

Tenancy agreements - Key money, bonds, and rents

32: Accelerated rent or damages prohibited

You could also call this:

“Landlords can't make tenants pay extra money or higher rent if they break the rules”

You can’t be made to pay extra rent or money if you break the rules of your tenancy agreement or any laws. Your landlord can’t put anything in the agreement that says you have to pay the rest of the rent for your whole tenancy, pay more rent, or pay a fine if you break the rules.

If your agreement says you’ll get a discount on your rent or some other reward for following the rules, you should get that reward no matter what. This means you’re entitled to any rent reduction, rebate, refund, or other benefit mentioned in your agreement.

However, if you owe your landlord money because of a Tenancy Tribunal order, your agreement can say that you need to pay back any reasonable costs your landlord had to spend to get that money from you. This includes expenses or fees they paid while trying to recover the overdue payment.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM95070.

Topics:

Housing and property > Renting

Money and consumer rights > Consumer protection

31: Apportionment of rent, or

“Explains how rent is calculated daily and divided up when a tenancy ends”

33: Tenant's goods not to be seized, or

“Landlords can't take or get rid of your stuff if you owe rent or for any other reason related to renting.”

Part 2 Tenancy agreements
Key money, bonds, and rents

32Accelerated rent or damages prohibited

Any provision in a tenancy agreement to the effect that, on breach by the tenant of any term of the agreement or of any of the provisions of this Act or of any other enactment, the tenant shall be liable to pay—
the whole or any part of the rent remaining payable under the agreement; or
rent of an increased amount; or
a sum specified in the agreement by way of damages or penalty,—

Any provision in a tenancy agreement to the effect that, if the tenant does not breach any term of the agreement or any of the provisions of this Act or of any other enactment, the rent shall or may be reduced or the tenant shall or may be granted or paid a rebate, refund, or other benefit, shall be construed as entitling the tenant to that reduction, rebate, refund, or other benefit in any event.
This section does not preclude a provision in a tenancy agreement requiring one party (the debtor) to reimburse the other party (the creditor) for any reasonable expenses or commissions paid or incurred by the creditor in recovering, or attempting to recover, any overdue payment that the debtor owes to the creditor under an order of the Tribunal.

Compare

Residential Tenancies Act 1978–1981 s 59 (SA)

Notes

Section 32(3): inserted, on 1 October 2010, by section 23 of the Residential Tenancies Amendment Act 2010 (2010 No 95).