Will slumlord James Truong's $113,000 fine get paid to his tenants?
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There's been widespread speculation about the ability of the Government's Tenancy Tribunal to collect money from Queenstown landlord James Truong, and ensure the money reaches his former tenants.. Crux was able to put these questions to the Ministry of Business, Innovation and Employment, and we publish their answers today. We will continue to closely monitor how this situation develops.
The responses are from Brett Wilson, National Manager, Tenancy Compliance and Investigations Team (TCIT):
Crux: What’s the fine/money collection mechanism - how do does the authority and former tenants know the money will actually be collected and distributed fairly/ efficiently ? Is Truong personally and legally liable?
"There is a team in MBIE that has responsibility for collecting money owed as the result of regulatory action, such as this case in the Tenancy Tribunal. Their focus is to ensure money gets to the tenants and they will take the steps that are available to ensure this happens. Mr Truong was personally named in the Tribunal order and is therefore liable personally for the money owed.
"The total amount of rent to be refunded is still being determined. Once confirmed, MBIE will engage with Mr Truong to discuss how the payments will be made and ensure that tenants receive what they are owed. All exemplary damages and rent refunds MBIE receives from the landlord will be passed on to the tenants involved in the case, in accordance with the Tenancy Tribunal’s order.
"If Mr Truong isn’t forthcoming with payment, MBIE will seek to enforce the debt via the civil courts. If the full amount of the debt cannot be collected for any reason, what does get collected will be paid out on a pro rata basis, based on the portion of the total amount each tenant was originally owed."
Crux: In the course of our investigation we found multiple properties all over the South Island where Truong was landlord with very similar, serious complaints from tenants - but many were too scared or under-confident to complain. Is any follow up action being taken regarding these other properties?
"At this time, we are not conducting any further investigations into Mr Truong’s properties. We have not received additional complaints. However, the Tenancy Tribunal has issued a restraining order in this case and we will be following up to ensure Mr Truong complies fully with its terms.
"Where we have information to support further investigations these will be undertaken, although any investigation is most effective where we have the co-operation of tenants at the property."
Crux: Can Truong be banned for all types of property management - being a landlord - or just “boarding houses”? How is this enforced and what are the penalties?
"There is no provision in New Zealand law to ban someone from being a landlord. Mr Truong has been issued a restraining order specifically in relation to any further unlawful acts around operating a boarding house."
"In the Tribunal order, the adjudicator explained that they reached this conclusion “given the landlord has operated an unlawful boarding house, in a virtually identical manner to what he was warned against in 2020.”
"Mr Truong is restrained from committing unlawful acts in relation to section 66I(1)(c) of the Residential Tenancies Act 1986, which states:
“The landlord of a boarding house must, at all times comply with all requirements in respect of buildings, health, and safety under any enactment so far as they apply to the premises.”
"If a landlord intentionally breaches a restraining order this is an offence tried in the District Court and under Section 109A of the Residential Tenancies Act they are liable on conviction to a fine not exceeding $3600."
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