Full Breakdown
Tribunal Orders Landlord to Pay $17,658 for Unsafe Housing of Homeless Tenants
7/18/2026, 8:47:09 PM
Tribunal Finds Landlord Liable for Unsafe Housing
The Tenancy Tribunal ruled that landlord Jagdish Prakash failed to provide a safe and habitable dwelling for three tenants in a derelict property at Palmerston North. The decision, handed down after a hearing that examined extensive evidence of disrepair, ordered Prakash to pay $17,658 in exemplary damages—$5,070 to the first tenant, $7,580 to the second, and $4,980 to the third. The property, which had been split into two units, was subsequently demolished.
Background: Building Notice and MBIE Application
On 4 August 2025, the Palmerston North City Council issued a dangerous and insanitary building notice requiring the landlord to fence the premises to prevent unauthorised access. On 24 October 2025, the Ministry of Business, Innovation and Employment (MBIE) filed an application with the tribunal covering three separate tenancies. MBIE’s submission listed numerous defects, including rotten floorboards, gaps in the brick chimney, holes in weatherboards, rotting window frames, and the use of duct tape and clothing to fill gaps between floor and skirting. The tribunal accepted all of MBIE’s evidence.
Official Statements & Responses
Tribunal Chair Woodhouse characterised the landlord’s conduct as “extreme” and stated there was “no reservation in concluding that the Landlord has not maintained the premises in a reasonable state of repair.” The tribunal also found the termination notice given to one tenant for alleged “unacceptable behaviour” to be unlawful. MBIE’s evidence formed the basis for the exemplary damages award.
Criticism & Opposition
Woodhouse’s assessment highlighted a breach of multiple statutory obligations, including failure to lodge a bond, provide a required statement, comply with the Healthy Homes Standards, and install working smoke alarms. The tribunal’s decision underscores the expectation that landlords must ensure basic safety and habitability, regardless of any charitable intent.
Verbatim Quotes
- “The landlord’s failure to provide and maintain this tenancy is extreme,” — Woodhouse, Tribunal Chair
- “I have no reservation in concluding that the Landlord has not maintained the premises in a reasonable state of repair.” — Woodhouse, Tribunal Chair
- “This house was not in a good condition to live in and my wife had already moved out. On my return to New Zealand, I could see that this house should be demolished so I decided to sell it,” — Jagdish Prakash, Landlord
- “I thought that I was being kind to homeless people and allowed them to stay.” — Jagdish Prakash, Landlord
