A tenant has been given notice because the landlord plans to market the property, but shortly after leaving, it’s back on the rental market. This case delves into how much marketing activity a landlord is expected to do when providing termination under Section 51 (2) (a) of the RTA.
Case Background:
The tenants rented a two-bedroom unit from May 2021. On June 13, 2022, the landlord issued a 90-day termination notice, stating the property was being marketed for sale. The very next day, the tenants found and secured another rental due to the housing shortage in Tauranga at the time, moving out on July 15, 2022. However, the property was listed for rent just a few weeks later on August 8, leading the tenants to question the legitimacy of the termination notice. The tenants sought compensation, claiming the notice was invalid since the property was rented instead of sold.
Legal Authorities:
- Section 51(2) (a) of the RTA: A landlord can terminate a periodic tenancy with at least 90 days’ notice if the premises are to be put on the market for sale within 90 days after the termination date.
- Section 10 Legislation Act 2019: When interpreting legislation, its meaning must be ascertained from its text and context, aiming for a genuine attempt at sale.
Landlord’s Response:
The landlord argued they genuinely attempted to sell the property. After the tenants vacated, the landlord completed renovations and listed the property for sale on July 28, 2022, with four open homes held over two weekends. However, there was no interest or offers. The property was subsequently listed for rent on August 8, 2022. The landlord also offered the tenants the chance to purchase the property at a reduced price. The landlord acknowledged a miscalculation in the termination notice (it was six days short), but this did not affect the tenants’ situation, as they had already secured another rental and moved out early.
So, what was the outcome? And why is this decision subject to change?
