Lam v Somchanmavong

The case of Lam v Somchanmavong was heard in the Residential Tenancies Tribunal, where the landlords, Lam, sought to terminate the Residential Tenancy Agreement with the tenants, Somchanmavong, due to their failure to pay rent in accordance with the terms of the agreement. The landlords argued that the tenants had frequently failed to pay rent and therefore breached the agreement, warranting termination of the tenancy. The tenants did not contest the failure to pay rent but argued that the landlords had not properly followed the procedures set out in the Residential Tenancies Act 2010.

The central legal issue before the tribunal was whether the tenants' failure to pay rent constituted a breach of the agreement that warranted termination of the tenancy under section 87 of the Act. The tribunal also had to determine if the tenants had frequently failed to pay rent, as required by section 89(5) of the Act. Additionally, the tribunal considered the appropriate remedy for the landlords, including the imposition of a daily occupation fee and the timing of possession.

The tribunal found that the tenants had indeed failed to pay rent as required by the agreement, and this failure constituted a breach of the agreement under section 87 of the Act. The tribunal was satisfied that the failure to pay rent was frequent, as required by section 89(5) of the Act. The tribunal concluded that the tenancy should be terminated immediately but suspended the order for possession until 27 May 2016. The tribunal also ordered the tenants to pay a daily occupation fee of $42.85 per day from the day after the termination date until vacant possession was given to the landlords. The landlords were also granted the right to request a relisting of the application to determine the amount of the occupation fee owing within 60 days of the date for possession.

The tribunal ordered that the landlords' agent must inform the tenants of the orders made by delivering a letter to the premises by 6:00pm on the day of the decision.