Understanding Tenant Liability for Property Damage

Under New Zealand's Residential Tenancies Act, a tenant's responsibility for property damage varies based on the nature of the damage:

1. Intentional Damage: Tenants are fully liable for any damage they cause deliberately. Landlords can seek full compensation, and if insured, their provider may cover repair costs and pursue reimbursement from the tenant.

2. Careless Damage: If damage results from a tenant's negligence, their liability is capped at the lesser of the landlord's insurance excess or four weeks' rent. This provision allows tenants to benefit from the landlord's insurance coverage.​​​​​​​

3. Accidental Damage: Tenants aren't held responsible for genuine accidents. In such cases, landlords must cover repair costs, typically through their insurance.

​​​​​​​It's important to note that distinguishing between careless and accidental damage can be challenging.​​​​​​​For instance, in the 2020 case of Braziers Ltd v Guttmann, a tenant accidentally melted the carpet with a hot iron. The Tenancy Tribunal deemed this accidental, absolving the tenant of liability.

​​​​​​​Landlords should be prepared for potential disputes over damage classifications and may need to present evidence to the Tenancy Tribunal to determine liability.