New tenants awarded $3117 after rental left covered in cat urine, sanitary pads

Landlords are being reminded of their obligation to make sure their rental properties are "reasonably clean" before new tenants move in.

The Real Estate Institute, which also represents property managers, pointed out a recent Tenancy Tribunal ruling, in which the landlord was told to pay the tenants who were never able to move in to a property $3117 in exemplary damages and compensation.

The tenants agreed to pay $750 a week for a four-bedroom house, after viewing it when previous tenants were still living there.

They signed up to a fixed-term tenancy for one year from the end of September 2023. They did not intend to move in until 4 October but planned to use the garage and house for storage until then.

But the day before the tenancy was due to start, they met the property manager there and were concerned that it was "smelly and unclean", the tribunal noted. They agreed that the existing tenants could come back to finish cleaning

But when they arrived with a trailer-load of items two days later, they told the property manager that the house smelt strongly of cat urine and cleaning chemicals.

They said ceilings, walls, doors and floors were dirty and sticky. The back lawn was unsanitary because of dog poo and there was rubbish including sanitary pads and cable ties outside.

"The tenants raised their concerns that exposure to cat urine was hazardous to their health as it contains large amounts of ammonia and can effect the respiratory system," the decision said.

The tenants told the property manager that they wanted to terminate the tenancy.

A couple of days later, the property manger advised them that the property had been deep cleaned and the smell had "significantly dissipated". The floor had been cleaned and the previous tenant was reseeding the lawn. They were told that if they wanted to terminate the tenancy, there would be break fees and they would have to pay rent until another tenant was found.

The tenants said they found windows and a sliding door open at the house over the following days, until they moved their possessions from the house into storage.

A new tenant was found for the property about a month later.

The decision said the landlord did not provide the property in a reasonable state of cleanliness or repair.

"The landlord was clearly aware the property was not reasonably clean, both inside and outside, and arranged for cleaning to be carried out, as well as airing of the premises during the first week of the tenancy.

"I find the landlord had full knowledge of the condition of the premises and that intention is established. The landlord raised that the tenants agreed to the previous tenants returning to clean the premises during the first week of the tenancy. However I consider this is an unreasonable view for a landlord to take, particularly a professional property manager."

The decision said the issues with the tenancy had a significant effect on the tenants, and made them feel they could not move in because one of the tenants suffered from severe asthma.

Compensation of $2475 was awarded - the tenants had sought compensation for expenses such as the cost of moving their items to storage and the storage cost.

The decision said it was in the public interest to ensure that properties are to the standard required by the Residential Tenancies Act when a tenancy starts.

"From the start of the tenancy tenants are entitled to quiet enjoyment of the property. If the premises is not able to be secured the tenants comfort in living in the property is affected."

The tenants were also given $3000 for exemplary damages but the landlord said they were liable to pay rent until the time the tenancy ended, from 13 October to 3 November, which reduced the amount owed to them to $3117.

The Real Estate Institute said landlords and property managers should allow sufficient time for maintenance and cleaning between tenancies to ensure that the property was maintained without interfering with the tenants' reasonable peace, comfort, or privacy.