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A “slightly muddled” lease left a subtenant high and dry.
A tenant who sublet her home while abroad told her subtenants not to contact her property manager, who was unaware of the arrangement. When the rent hit a speed bump, the subtenant had nowhere to go.
Tenancy judge Michael Brennan, who described the arrangement as “somewhat confused”, described how the original lease in Stepneyville, Nelson, began in July 2021.
The rental was managed by Summit Property Management. However, the tenant, who has attribution, also had contact with the owner.
When the tenant decided to go on holiday to Europe for three months, she received verbal permission from the owner to sublet the property.
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“For her own reasons [the tenant] requested that the property manager not be notified of this,” Brennan said in his statement.
The tenant found a subletter and drafted an agreement, which was “well drafted” but missed some key points, Brennan said. Under the Housing Rental Act, the tenant in this scheme was now regarded as the lessor.
Problems arose when the sub-lessor found that the property needed maintenance.
The tenant, now abroad, went to the owner of the property and told her that the subtenant was not satisfied and wanted her contact details.
“[The owner] told [the tenant]’Absolutely not – I was [not] willing to get involved in any way.”
With no other options, the subletter contacted Summit.
“The answer from them was understandably confused because they had no knowledge of the scheme,” Brennan said.
At the tribunal, the sub-letter said Summit had told her “she was a housemate at best”, causing her to worry about her right to live in the house.
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When the subtenant told the tenant she wanted to terminate the lease, the tenant tried to enforce liability for a specified period of time, or have the subtenant find a replacement.
“I suspected [tenant was] stranded, given the request not to involve the property manager and the owner’s refusal to get involved,” Brennan said.
After less than three weeks’ rent, the subtenant left the property and paid an additional week’s rent. Four weeks later, the tenant found new subtenants.
At the hearing, the tenant asked for $1099 for back rent. She also sought exemplary damages for the “abandonment” of her sub-letter, seeking $2,589 for “time caused and stress caused.”
In return, the subletter demanded the return of its bond and exemplary damages.
In his ruling, Brennan said the lease was “structurally flawed from the start,” leaving the subtenant unable to seek redress for any issues.
The “confusion and uncertainty” before the subletter justified her early departure, Brennan said.
He rejected demands for exemplary damages on both sides and ordered the subletter surety bond returned to her.