Q: I am an investor with a tenanted property and have a mediator’s order with a consequential clause for rental arrears. The clause states that if the tenants default on repayment arrangement, the tenancy will automatically terminate. The tenants have defaulted. How do I assert termination? Do I need to go back to the Tenancy Tribunal to prove the default and get a termination order?

A: No, you don’t need to go back to the tribunal for a termination order. The default on the repayment arrangement combined with your mediator’s order containing a consequential clause, means the tenancy automatically terminates.

Firstly, notify your tenants in writing that the tenancy has terminated due to their default on repayments. In your notice, set a date and time for them to hand the property back. Although the mediator’s order may state immediate termination, it’s practical to allow the tenants a bit of time to vacate. If the tenants do not vacate by the set date, you will need to apply for an eviction warrant from the Ministry of Justice. This warrant allows a bailiff to evict them and return possession to you. You do not need to go back to the tribunal for this; you can rely on your mediator’s order.

However, include a ledger showing the tenants have not met the payment arrangement when you apply for the eviction warrant. This will support your case and facilitate the process of regaining control of your property. You may also need to file another tribunal application for final rent owed, which can include “vacated arrears” – the rent for the period the tenants remained in possession of the property after the date you had asked for it to be handed back.

Ryan Weir

propertyscouts.co.nz