Tenant vs Landlord at TT - what if Landlord is a no show?

[AbutheRoo]

Back in October last year I started a thread "Vendor's (Landlord's) Warranties on Conditions of Sale of Real Estate by Auction", and received a mine of valuable advice from a number of posters. I mention this in case anyone wants background info to our situation.

Basically we've had no joy whatsoever in getting Mr & Mrs Landlord to install the heating and bedroom doors they agreed to provide when we signed our fixed term tenancy agreement in February 2012. They've also failed to lodge our bond with the Bond Centre. The tenancy runs until February 2014, and we issued them with a 14 day notice to rectify these issues last October. Nothing (apart from a wee bit of nastiness) happened.

On March 7 this year we applied to the Tenancy Tribunal to resolve things once and for all. They sent us notification of TT Hearing on May 9th, no mention of mediation - just straight to a hearing. It's been a long two months of waiting, with absolutely no contact from our Landlords.

The notification email we received states the reasons for the hearing as:
109 - Exemplary Damages
19, 109 - Bond Not Lodged
38(1), 38(2) - Quiet Enjoyment
78(1)(e), 45 - Work Order
66 - Reduction of Fixed Term Tenancy
77(1), 78(1)(h) - Other Miscellaneous Orders

I'm mentally and physically prepared for this weeks hearing. All evidence assembled in triplicate, bullet pointed, logically ordered and probably in all honesty detailed to point of appearing totally anal.

It's roughly a one hour drive for us to get to the Queenstown District Court where the hearing will take place, and roughly two and a half hours drive for the landlords (who have incidently separated and rumoured to be no longer speaking to each other).

Based on posters experience/knowledge, what is likely to happen if neither of the landlords show up? I'm dreading the possibility of the hearing being postponed - never thought my husband and I would ever find ourselves in this situation and don't want things to drag out through another cold winter. Before the TT website disappeared I read plenty of hearing decisions that were made despite 'no shows' by the tenants, but I couldn't find any where the shoe was on the other foot.

Any suggestions?
Many thanks.

[mrsaneperson]

If the landlord does a no show it will work in your favour as he wont have representation unless he plans just to send in a statement.If he has sent in a statement then normally you will have received a copy of this already.He should have received copies of your statements too.
Im not quite following the flow of your thread though. Is this TT in respect of your old landlord or your existing one?If these conditions of sale were on the sale & purchase agreement then surely the responsibility to oversee their implementation rests with your new landlord & not yourself as you are a third party.

[AbutheRoo]

Thanks for your reply mrsaneperson. Apologies for not making things clearer. The property auction was actually cancelled by the REA due to a legal issue in regards to water rights for the property (the agent had repeatedly told our LLs they had to sort it out prior to auction date). Water issue hasn't been dealt with, property is still for sale, and the LLs are still the same.

We received a reminder email regarding the TT hearing date yesterday, but haven't received any other correspondence, so I'm thinking the LLs have probably put things in the "can't be bothered dealing with it" basket, next to the "what can they do because I don't have any money" basket.

[mrsaneperson]

Did they agree in writing to install heating & bedroom doors?And was there a time factor relevant to this? What kind of heating was agreed to be installed?Why do the bedroom doors need replacing or are they non existing?

[PC]

I'd turn up.
If the LL hasn't lodged your bond - then they are going to get done.

Getting any actual recompense out of the LL - good luck.

[AbutheRoo]

The house is an incomplete new-build. Our Tenancy Agreement states "Landlord to install heating and bedroom doors prior to winter" initialled by LL. (This was winter 2012 by the way). The house is plumbed for radiator heating throughout, in fact to speed up the process of getting the heating up and running, I did the heat loss calcs and sourced a good deal on radiators while my husband built the boiler shed to house the new coal fired boiler that the LL purchased. Fat lot of good that did us.

The house is largely only gib lined, so the doorways aren't even framed in properly. With their approval we hung curtains on rails to give some privacy while waiting for the doors to be fitted.

As far as getting any actual recompense out of the LL, we think a major rent reduction would be appropriate in the circumstances. And I guess I could always ask the adjudicator to award me the ten month old beefy steer that belongs to the LL as part payment. After all I've looked after it since it was born.... (tongue in cheek, but who knows).

Having paid over $23,000 in rent, plus the unlodged bond, to the LL, I'm disgusted at how casually he's treated our signed Tenacy Agreement. A perfect example of why property management often doesn't belong in the hands of Ma and Pa Landlords.

[mrsaneperson]

You sound like great tenants. Its a shame the LL's cant get their act together. Im guessing their matrimonial split isnt helping. If its 2 landlords listed on the tenancy agreement why not contact the wifey ,perhaps she is unaware.

[Keys]

As far as getting any actual recompense out of the LL, we think a major rent reduction would be appropriate in the circumstances.

Exactly what I would suggest you ask for. If not, total free occupation until the amount awarded by the TT is paid in full.

[AbutheRoo]

I used to think we were great tenants, now I'm thinking "naive" may be a better description.
Good idea about contacting the wifey - will get hubby to try the cellphone number we have for her as she scares the pants off me. She's an ex-policewoman currently retraining as school teacher. She accused me of intimidating her by sending the 14 day notice to remedy, so who knows how she'll react to a phone call regarding a District Court date!
End of the day, what hurts most is that by taking these people to the TT, future LL's may see our names listed on the TT website (when it's back up and running) and dismiss us as troublemakers.

[PC]

Ma & Pa don't tend to put your rent up, do inspections, charge letting fees and often go the extra mile to help.
A lot of tenants quite like that - but a total pain to the "professionals".

Hopefully you get to vent all the wrongs at TT hearing.
It'll be fun and odds on you will win.

[AbutheRoo]

Thanks PC and everyone else whose taken the trouble to post. My husband and I plan to be totally unemotional in presenting our case - the LL's stupidity should speak for itself. I have to be a bit careful when bagging Ma & Pa landlords as our older son owns three PI's OOP's I mean IP's in Invercargill.

So do you think the Adjudicator is most likely to rule on the basis of our evidence alone, or should we be preparing ourselves for a postponement?

[Keys]

Should be no postponement.

[essence]

What Keys said. Maybe even ask for reduced rent until the LL's have fixed the problems.

Beefy steer? What beefy steer? Don't mention it at the TT, it's a distraction. If the owners can't be bothered for ten months, they're not going to be bothered now. One day it may jump into your freezer!!

It sounds all a bit doubtful that either of them will turn up at TT. If they do, treat it how you've planned plus Keys suggestion. If they don't attent, it just makes your case stronger.

You could potentially place a Caveat against the Title. This would protect your position (both physical and financial) until such time as the amount owed by the LL and the remedial work is done. I'm not a lawyer, so check with one before you do this. I won't cost much for a Caveat. I'd get onto this straight away after the TT if it is in your favour.

A Caveat will stop the property being sold until your situation has been resolved re $'s. The property has also gone to auction once but has been passed in because the owners couldn't fix the Water Rights issue. The Bank who have lent the $'s to the LL's for the house will be annoyed with a Caveat, but there is nothing they can do about it, you are entitled to protect your position. The reasons for the Caveat will have to be remedied (paid off etc) before you will agree to remove the Caveat, then the property can be sold.

They have now got a property that has issues that need resolving and has tenants in situ until Feb 2014. My guess is that both LL's are heading for bankruptcy.

My guess is that by Feb 2014, the Bank would've taken over ownership of the property. I believe if they do, they should advise you (I'm unsure of this as never been in this situation) Ask the Bank IN WRITING who you should be paying the rent to. If the Bank doesn't know or doesn't respond, set up a separate account to pay your rent into, one that you don't have easy access to (ie no on-line banking!). You are still obligated to pay rent, you just may not know who to. You need to have this money set aside for when someone does demand the rent.

Your LL's certainly won't like you not paying rent to them, they'll see it as "their" money, even if the Bank has taken over. You may get angry phone calls, text messages etc DEMANDING you pay them the rent - DON'T. Do not engage the (by now ex-) LL's. It will be tempting..... JUST DON'T.

Re Female LL saying that you are intimidating her by sending her a 14 Day Notice...... oh, please!!!! She's just being grumpy. You are ENTITLED to send a 14 Day Notice because she hasn't remedied problems at the property. Just because she WAS a Policewoman, doesn't mean she was a good one. Get over that fact.

The LL's are going through an extremely stressful time. If it's an acrimonious split-up, don't react to demands by either LL's until it's in writing. There's usually a lot of bluster, nastiness and downright deception at times like this. Don't allow yourself to get dragged into it. You're a tenant, that is all.

Given that it could take a while for the property to sell, perhaps years, just sit still, keep paying the rent into a "safe" account and do nothing.

Good luck and please post the outcome of the TT hearing.

[AbutheRoo]

Thanks heaps essence. Once we get home from the TT hearing, the first thing I'll do is post an update in this thread.

We had a -5 degree start to the day yesterday, and it's currently -3.4 outside. A good frost tomorrow morning will get both hubby and I totally in the right frame of mind for presenting our case!

Ironically a Real Estate Agent arranged to show people through the house at 9am yesterday morning. The agent was late, the potential new owners were on site and telling me how they'd come down from Marlborough to look for a new property. The look on their faces was priceless when I casually mentioned the house's lack of heating. How the hell the LL thinks he can sell this place without it is beyond me.

Thanks again everyone!

[Perry]

I wonder if the idea of paying rent into what's effectively a de facto
trust account might be something that could be validated by the TT?

Sounds to me like your TT appearance will be a push-over, for you.
Keep some of that morning ice to help you be frosty at the Hearing,
just in case t'other side do turn up. If the other side gets in a tizz and
all emotive, be cooler than a frozen cucumber and avoid any hint of
a reaction. That goes well with the person on the bench and works
strongly against the opposition.

LLs like that do all of us - ahhhh - responsible LLs a great dis-service
and none of us like being tarred with their smelly brushes.

I don't think you'll need it, but it wont do any harm: best of luck!