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An Auckland boarding house operator has been fined nearly $27,500 for multiple breaches over the unsafe and unhealthy state of a Mt Eden residential property.

The boarding house, operated by Burnley Lodge Limited, was found to be contaminated with black mould, and spaces not suitable for sleeping had been turned into makeshift bedrooms.

The Tenancy Tribunal found the state of the property fell short of the Residential Tenancies Act and was not compliant with the Government’s Healthy Homes Standards.

Burnley Lodge has appealed the Tenancy Tribunal order to the District Court.

The boarding house, which the tribunal noted had a history of failing to comply with regulatory authorities, had 11 bedrooms over three levels and an extra bedroom in a rear shed.

The tribunal found the company had breached its responsibilities by failing to maintain the premises and comply with healthy home standards, operating a boarding house in breach of building health and safety requirements and failing to provide required information in tenancy agreements.

Other breaches included mishandling tenant bond payments and failing to produce documents requested by the business ministry.

Heavy black mould had been found throughout the Mt Eden property.

A restraining order had been issued prohibiting Burnley Lodge Ltd from committing further breaches of its obligations regarding tenancy agreements, bond payments and producing documents to the Ministry of Business, Innovation and Employment (MBIE) for four years.

Heavy black mould was found throughout the property by MBIE’s Tenancy Compliance and Investigations Team (TCIT), and some of the bedrooms being used were not approved for accommodation.

Despite multiple investigations, including from Auckland Council and Fire and Emergency New Zealand, the landlord did not take any meaningful action to address the health and safety concerns.

The adjudicator said the company’s director, Jonathan Duncan, had made some progress towards compliance, but the actions of previous shareholder Mark Benjamin had caused significant harm.

“It is clear that Mr Benjamin is the driving force behind that company,” the adjudicator said, “And it is clear from the evidence MBIE has produced that Mr Benjamin has failed to engage with MBIE in any meaningful way; he has obfuscated, and he has generally been unco-operative.”

Some of the bedrooms being used at the property had not been approved for accommodation.

TCIT national manager Brett Wilson said landlords did not have a choice in complying with the Residential Tenancies Act.

“Burnley Lodge was home to some extremely vulnerable tenants and these tenants have the same rights as any other tenant, while the landlord has the same responsibilities to achieve and maintain compliance.

“Boarding houses are a priority for TCIT, and the level of non-compliance at Burnley Lodge was unacceptable. TCIT’s joint work in this case with Auckland Council and [Fire and Emergency], and the tribunal’s decision, sends a clear message that non-compliance will not be tolerated.”