A Queenstown landlord, James Truong, has been ordered to pay $113,723.56 for multiple breaches of the Residential Tenancies Act after housing 22 mostly migrant workers in a five-bedroom house, converted garages, and a shed, the Ministry of Business, Innovation and Employment (MBIE) has revealed, RNZ has reported .
Truong was found to have operated an unlawful boarding house, failing to comply with healthy homes standards and interfering with tenants’ power supply. The Ministry’s tenancy compliance and investigations team (TCIT) also uncovered instances of invalid rent increases and tenant harassment.
Despite being advised in 2020 to cease using the property as a boarding house, a 2023 complaint revealed that 11 people were living in the five-bedroom house, with an additional 11 residing in two converted garages and a shed.
Brett Wilson, TCIT National Manager, said Truong was an experienced landlord who would have been well aware of his legal obligations. He noted that Truong knowingly ignored tenancy rules, resulting in significant non-compliance including failures to meet healthy homes and insulation standards, as well as interfering with electricity supply.
The garage where five tenants lived. Photo: Supplied/TCIT
Wilson added that the tenants were in a particularly vulnerable position, as many were overseas workers on working holiday visas, unfamiliar with their rights under New Zealand tenancy law. He explained that the shortage of rental accommodation in the area further exposed them to exploitation by a landlord operating outside legal requirements.
During the hearing, Adjudicator R. Woodhouse dismissed Truong’s claims that the property was safe and compliant, and that he was simply assisting his tenants. Woodhouse pointed out that the commercial level of rent charged contradicted Truong’s assertions of goodwill. Furthermore, when authorities began investigating the premises, tenancies were abruptly terminated.
In addition to the financial penalty, Truong has been issued a three-year restraining order prohibiting him from engaging in any further unlawful boarding house activities.
The awarded damages reflect the severity of the breaches and the large number of people affected, underscoring the Ministry’s commitment to protecting vulnerable tenants from unlawful housing practices.