A landlord in North Canterbury has been ordered to pay nearly $30,000 after renting out unlawful buildings – including sheds and shipping containers.

The Tenancy Tribunal found Madeleine Fee had committed multiple breaches of the Residential Tenancies Act 1986, which included failing to comply with the Healthy Homes Standards, obligations regarding smoke alarms, and building health and safety.

Fee also failed to lodge bonds within the requested timeframe, seized a tenant’s goods, and unlawfully terminated one tenancy.

One of the unconsented sheds that had been tenanted by Fee.

One of the unconsented sheds that had been tenanted by Fee. (Source: The Ministry of Business, Innovation and Employment)

The tribunal also found Fee had interfered with the reasonable peace, comfort or privacy of some tenants by permitting an incident where her daughter and others entered a tenant’s home in a “violent manner”, and caused “significant emotional distress”.

The tribunal said this incident amounted to harassment.

An investigation was first opened by the Ministry of Business, Innovation and Employment’s tenancy compliance and investigations team after concerns were raised about a tenant who was living in a shed on one of the properties owned by Fee, which was not consented for residential use, MBIE said.

Investigators visited the property alongside the Waimakariri District Council, and identified numerous breaches. They then lodged an application with the tenancy tribunal.

One of the unlawful dwellings that was previously tenanted.

One of the unlawful dwellings that was previously tenanted. (Source: The Ministry of Business, Innovation and Employment)

The council also issued Fee with a notice to fix relating to sanitation, a gas installation, electrical work and a heating unit.

The tribunal found Fee had acted with intent when committing the breaches across four separate tenancies. They said her actions exposed the tenants to potential harm.

“Her suggestion that she was just trying to help desperate people was not convincing,” the adjudicator said.

“Rather, she was maximising rental income from renting out unlawful residential premises that were not compliant with health and safety regulations, the Healthy Homes Standards, and in one case had no installed smoke alarm.”

The adjudicator said had a fire or some other event occurred due to faulty fittings, the outcome “might have been tragic”.

One of the unlawful dwellings that was subsequently dismantled by Fee.

One of the unlawful dwellings that was subsequently dismantled by Fee. (Source: The Ministry of Business, Innovation and Employment)

MBIE tenancy compliance and investigations team national manager Brett Wilson said Fee was an experienced landlord who went to significant lengths to evade her responsibilities under the Act.

“Even if some tenants claimed to like living there, that does not excuse the situation. The properties were not lawful residential accommodation,” Wilson said.

He added the decision reinforces that all landlords must meet their legal obligations, regardless of the type of accommodation being offered.

“No tenant should have to face harassment or intimidation in their own home. Landlords who knowingly breach their obligations under the Act and put tenants at risk will be held accountable for their actions.”

Fee was ordered to pay a total of $29,216.80, both for exemplary damages and rent refunds to tenants.