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<\/p>\nA man who admitted he knew his garage could not legally be used as a home nevertheless rented it to a workmate who was desperate for somewhere to live.<\/p>\n
Regie Caballero said he was simply doing the man a favour after he \u201cbegged\u201d him for a place to stay.<\/p>\n
He charged $150 a week, including Wi-Fi and electricity, but when his wife became unhappy with the tenant\u2019s electricity use, he asked for an increase of $10 without notice.<\/p>\n
After seeking advice from Community Law, the tenant discovered the arrangement was unlawful and applied to the Tenancy Tribunal for compensation, a rent refund and exemplary damages.<\/p>\n
In his decision, tribunal adjudicator John Greene said it was self-evident that a car garage was unlawful residential premises.<\/p>\n
\u201cThe landlord accepted that. The premises are not consented for residential use.\u201d<\/p>\n
The garage was at the rear of the Christchurch property owned by Caballero, where he and his wife lived.<\/p>\n
According to the decision, he and the tenant met at work and became friendly.<\/p>\n
Caballero told the tribunal that the tenant \u201cbegged him\u201d to stay, but the only place available was his garage, as they were already renting a room in their house to a couple.<\/p>\n
The tenant moved into the garage in September 2025. It had no kitchen or bathroom facilities, so the tenant used an induction cooker and Caballero\u2019s toilet and shower facilities.<\/p>\n
The tenant moved out in late May 2026 after Caballero proposed the rent increase.<\/p>\n
The tenant told the tribunal that the garage was cold and draughty and situated next to Caballero\u2019s chicken coop, so he was interrupted by the sound of the chickens.<\/p>\n
While acknowledging the premises were unlawful for residential use, Caballero responded that the tenant elected to live there, could have moved at any time, and that he was doing<\/p>\n
the tenant a favour by letting him rent the garage.<\/p>\n
Greene ordered Caballero to pay the tenant $2775 for a 50% refund of rent, recognising that the tenant gained some benefit from living at the premises despite it being unlawful.<\/p>\n
He also awarded the tenant exemplary damages of $1500 for the breaches of his responsibilities, and compensation of $1500 for the effects of the unlawful premises on the tenant and his other losses.<\/p>\n
While Greene found that Caballero unlawfully increased the rent, the tenant did not pay the increased amount, so no compensation was awarded for that aspect.<\/p>\n
The tenant also alleged that Caballero ended the tenancy in a retaliatory manner, but Greene ruled that Caballero did not give notice to terminate the tenancy and rather verbally suggested it should end.<\/p>\n
Without a notice of termination, the tribunal could not make a declaration, and that claim was also dismissed.<\/p>\n
During the hearing, Caballero raised issues about the tenant.<\/p>\n
He alleged the tenant had caused damage to a wall, left goods and rubbish behind, used some of his wife\u2019s kitchen utensils, and cut his roses.<\/p>\n
But Greene said there was no landlord application before the tribunal, so it could not address those claims.<\/p>\n
<\/p>\n
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