Storage Unit Tenancy Ends in Tribunal $9,000 Penalty

A father and his 5-year-old daughter, along with their pet, spent about four months living in a storage unit leased as accommodation in Ōtaki. The arrangement, never approved for residential use, cost them $430 per week and ended in a Tenancy Tribunal decision requiring their landlord, Victor Davis, to pay nearly $9,000 in compensation.
Desperate Living Conditions
The tenant, a father with a young child and a pet, responded to an advertisement for a storage unit in an industrial area. The unit, accessed through a roller garage door, had no windows, fresh air, or natural light. A makeshift space with a small bathroom, an extractor fan, a basic kitchenette, and an otherwise bare storage area became their home. To get daylight and ventilation, they had to leave the garage door open, exposing them to dust and debris. Despite the poor conditions, they paid about $6,020 over 17 weeks.
Lockout and Loss of Belongings
In October, the tenant informed Davis that he planned to move out due to the unsafe living environment. On December 4, Davis allegedly told him to vacate the unit within two days. Soon after, the power and water supply were cut. With no alternative, the man purchased a campervan for shelter. On December 18, Davis closed and locked the unit, effectively evicting the tenant. Police eventually helped the man retrieve some essentials, but with only 90 minutes to gather what he could carry, most of his belongings, furniture, clothes, electronics, were left behind or damaged. He estimated the total loss to be between $10,000 and $15,000.
Tribunal Ruling: Unlawful Tenancy
The Tenancy Tribunal found that the storage unit was not approved for residential use, rendering the tenancy unlawful. It concluded that Davis had likely rented out the space for profit despite knowing, or at least suspecting, it was being used as a home. Although Davis argued that he believed it was a storage arrangement, the Tribunal ruled that he should have verified the legality of the setup, especially given how unsuitable the unit was for habitation.
Compensation and Damages Awarded
The Tribunal ordered Davis to pay the following:
- $3,500 in rent reimbursement, acknowledging the poor conditions while also discouraging illegal rentals.
- $3,250 in exemplary damages for unlawful eviction, improper notice, and breaching the tenant’s right to quiet enjoyment.
- $1,000 in damages for mishandling and destroying the tenant’s belongings.
Altogether, Davis was ordered to pay $7,750, with the total penalty approaching $9,000 when other factors are included.
Impact on the Tenant
The tenant described the ordeal as traumatic, especially for his daughter. The unlawful eviction left them shaken and displaced. Even six months later, he continued to face the emotional and financial aftermath of the incident.
Broader Implications
This case underscores the responsibilities landlords have to ensure proper consents are in place for any residential arrangement. It also highlights that tenants have rights, even in unconventional or desperate situations, and can seek justice through the Tenancy Tribunal.
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