ANALYSIS: What do tenants and landlords fight over? Recently released data from the Tenancy Tribunal – based on the 29,292 Tenancy Tribunal cases that were heard in 2024 – indicates as to what the common complaints are.
Surprisingly, the data shows that landlords are five times more likely to take a tenant to the tribunal than the other way around. Eighty-four percent of applications to the Tenancy Tribunal in 2024 came from landlords and property managers, with tenant applications accounting for the remaining 16%.
That goes against the idea you sometimes hear in property investment circles that there are lots of activist tenants turning the screw on their landlords (some tenants will be surprised that this is the perception among some landlords).
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Interestingly, Tenancy Tribunal cases initiated by tenants have been broadly flat since 2021, but cases initiated by landlords have doubled. It’s worth remembering that Auckland was in an extended Covid lockdown for much of 2021, so the number of complaints back then will have been relatively low.
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But what causes the (almost) 30,000 disputes a year between landlords and tenants? One word – money.
Three out of four tribunal cases brought about by a landlord were over unpaid rent. Tenants are the same. They want their bonds back. In the last quarter of 2024, more than 50% of tenants who took their landlord to the tribunal were chasing bonds.
This often happens because if there is damage to a property beyond fair wear and tear the landlord can deduct money from the bond. But tenants can dispute this. One way, they do that is by taking their landlord to the tribunal.
Opes Partners economist Ed McKnight: "Three out of four tribunal cases brought about by a landlord were over unpaid rent." Photo / Fiona Goodall
This makes sense. A rental bond is a lot of money, with most landlords charging four weeks’ rent for the bond. The current rent in New Zealand currently stands close to $650 a week, so a standard bond is around $2600.
Most tenants often use the bond from one property to fund the bond for their next one, so if a portion of that gets deducted, it’s stressful coming up with the extra money.
The next biggest issue for landlords appears to be evictions, while for tenants, lack of property maintenance is their next biggest beef.
In total, about 5% of rental properties go to the tenancy tribunal each year. To put that in context, if you own a rental property, there is a 40% chance that you will go to the tribunal at least once over the next 10 years. The chance is the same for a tenant. If you rent for a long time (10 years), there is a 40% chance that you end up in the tribunal.
That means there’s a good chance that most landlords and long-term tenants will end up at the Tenancy Tribunal at some stage. And that it will be about money.
- Ed McKnight is the economist at property investment company Opes Partners
