A former tenant of an illegal boarding house in Queenstown says landlord James Truong told tenants to hide from MBIE inspectors as scrutiny of the property increased, RNZ reported.
Truong has been ordered to pay more than $113,000 and banned from operating a boarding house for three years, after the Ministry of Business, Innovation and Employment (MBIE) uncovered an illegal setup housing over 20 people in unsafe conditions.
Truong was found to have breached multiple sections of the Residential Tenancies Act. MBIE’s investigation revealed that 11 people were living inside a five-bedroom house, while another 11 occupied two converted garages and a shed at the same address.
One former tenant, who spoke to RNZ on the condition of anonymity, said he and a friend were charged $440 a week to share a room in a shed that had no bathroom, adding that they had to walk into the main house to use the toilet and laundry.
The tenant also claimed Truong instructed them to hide from MBIE inspectors and hide in the shed, he said, noting that Truong used security cameras to monitor for inspectors and would text them to stay inside. In some cases, Truong reportedly told tenants to remove food from fridges, dismantle beds, and hide their belongings in plastic bags.
The man said he didn’t initially realise he was being exploited.
He also alleged that five Indonesian tenants living in the garage were evicted with just a day’s notice when Truong learned of the investigation.
As scrutiny increased, Truong allegedly tried to get tenants to sign letters stating they had agreed to the living conditions.
Truong had first been advised by MBIE in 2020 to stop operating the property as a boarding house. Despite this, it wasn’t until a complaint in 2023 that inspectors uncovered the extent of the overcrowding.
MBIE’s National Manager for Tenancy Compliance and Investigations, Brett Wilson, confirmed that Truong had been ordered to refund 40 percent of the rent paid by the affected tenants. He said the amount was still being calculated and urged any former tenants to come forward.
Wilson also addressed the nearly three-year delay in enforcement.
Renters United president Zac Thomas criticised the timeline and called for stronger penalties.
He argued that New Zealand’s tenancy system is under-resourced and vulnerable tenants are often too afraid to report poor living conditions.
RNZ has attempted to contact James Truong for comment but has not received a response.
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