Firm must pay $5,877 after repeated breaches of the Residential Tenancies Act
A New Zealand tribunal ruling has exposed a compliance risk that could affect investors' ability to refinance or expand their portfolios. A New Zealand tribunal has ordered a Christchurch property management firm to pay $5,877 (USD3,316) after finding it breached tenancy law across 20 rentals.
The Tenancy Tribunal ordered Good Girls Property Management to pay exemplary damages and compensation. The ruling addressed property managers who act for rental owners.
The company accepted that it had breached the Residential Tenancies Act 1986 across 20 tenancies including an unlawful termination, Tenancy Services said last week. Tenancy Services is part of the Ministry of Business, Innovation and Employment (MBIE).
For mortgage advisers working with property investor clients, the ruling carries a practical warning. Non-compliant rentals can complicate valuations, trigger lender scrutiny, or affect a client's ability to refinance or expand their portfolio. Advisers whose clients rely on property managers to keep rentals lendable need to know where liability sits when those managers fall short.
Exemplary damages covered the failure to include insulation, insurance and Healthy Homes compliance statements in tenancy agreements. Compensation addressed the impact of maintenance and repair breaches on tenants.
The tribunal also found the company required an unlawful rent increase in one tenancy. It added unenforceable clauses to agreements in eight tenancies. It also ended a room-by-room tenancy without grounds, Radio New Zealand (RNZ) reported.
MBIE's Tenancy Compliance and Investigations Team brought the case on behalf of affected renters. National manager Brett Wilson said the order reinforces a clear professional obligation for property managers to act when they learn of breaches.
Termination finding
Wilson said the company treated one tenancy as a boarding house arrangement, which carries different termination rights. It did so despite being unsure how to classify it.
Prudence Morrall is the company's sole director and has appeared on TVNZ's reality show Renters. Wilson said the adjudicator found she "clearly had doubts" about her action and knew she should not end the tenancy.
Repairs and owners
The tribunal accepted the company had raised repair concerns with owners, who delayed or refused work because of the cost. MBIE said this did not remove the firm's responsibility.
The tribunal found property managers might not be protected if a client's action or inaction causes non-compliance or harms a tenant, RNZ reported.
Images supplied by MBIE showed rotting weatherboards at one rental, according to Newstalk ZB. The Cool Down reported another image showed a front door with a large gap that let in a cold draught.
"Turning a blind eye is not an option," Wilson said. He said managers must take timely and appropriate action on unlawful conduct so tenants are not left to suffer the consequences.
Wilson also said managers should keep clear records when owners refuse to address breaches. If needed, they should stop acting for that client.
"We accept the findings of the Tenancy Tribunal and respect its decision," the company said, according to The Press. The company said it would learn from the breaches.
What the rules require
All private rentals in New Zealand had to meet the Healthy Homes standards from July 1, 2025. The standards cover heating, insulation, ventilation, moisture ingress and drainage, and draught stopping.
Landlords who fall short may face penalties of up to $7,200, the agency says. Most new or renewed tenancy agreements must include a signed compliance statement. Leaving it out can bring a penalty of up to $500 per tenancy.
Changes passed in December 2024 let landlords end a periodic tenancy without a specific reason on at least 90 days' notice, the housing ministry said.
Oversight of managers
The government is also moving to regulate property managers. Cabinet has agreed to develop legislation for a registration model, Harcourts reported April 1. It would include a regulatory authority and a disciplinary tribunal.
The plans also require organisations to hold client funds in accounts separate from operating funds.
Tenancy Services said in March that turning the proposals into law is subject to government legislative priorities. The Ministry of Housing and Urban Development said in 2023 that property managers handle around half of the residential tenancy market.
