Eliteline International had let the Milford, Auckland flat on a fixed-term tenancy from July 1 last year to January this year.

The landlord was responsible for costs of water, power, gas, WiFi and gardening.

When the tenant, who has name suppression, moved in the cost of power skyrocketed over a two month period to $2,000.

Eliteline International decided it was too much and would only pay $500 a month and the tenant would be responsible for the rest.

The tenant, who had a Mandarin interpreter at the tribunal hearing agreed, but was concerned about the high power bill.

Part of the reason, the tribunal heard, could have been the Covid-19 lockdown, which meant the tenant and her family were spending more time at home and this was during the winter when power bills tend to be higher.

In her communications with the landlord the tenant also raised the issue of whether the type of light bulbs at the home used more power.

Because of the power costs, the tenant asked the landlord for a two month early termination of the fixed term tenancy. Eliteline International had a two month notice of request for early termination in its tenancy agreement. 

The landlord agreed to the early termination, but claimed it advised an intermediary that it would retain the bond as compensation for the early release of the tenant.

Eliteline International had previously communicated directly with the tenant about the power costs but claimed that it communicated through the third party in relation to the termination.

However, the landlord was unable to provide any evidence to the tribunal it communicated this and the tenant denied the third person the landlord said it communicated with was acting on her behalf and she denied knowing the person.

The tribunal said that if the bond was going to be used to pay for the early termination, then the landlord should have communicated it with the tenant, or recorded the agreement, which it did not do.

The tribunal said it was not satisfied there was agreement between the parties that the bond would be released to the landlord as compensation for the early release of the fixed term tenancy. It therefore ordered the bond be released to the tenant.

Eliteline International also mentioned seeking compensation for damage discovered at the end of the tenancy but there was no evidence provided of either the damage or the repair costs.