PHOTO: FILE
Ray White Agent’s Rental Scandal: Landlord Fined Over Sewage-Soaked Property
A high-profile Auckland landlord and real estate agent has come under fire after tenants were forced to live in squalid conditions, including sewage-contaminated carpets and an inadequate water supply. The case has raised serious questions about landlord responsibilities and real estate industry ethics in New Zealand.
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Ray White Agent Denies Wrongdoing
Landlords Leiyang “Leo” Shen and Lingzhi “Candy” Yuan were ordered by the Tenancy Tribunal to pay $30,615 in compensation and damages after their tenants endured months of unacceptable living conditions in Dairy Flat, Auckland. Despite his role as a real estate agent with Ray White Te Atatū, Shen denies any connection between his profession and his obligations as a landlord.
The tribunal found that a family with two children had lived with sewage-soaked carpets for eight months, while a blocked sewage pipe rendered their toilet unusable for nine weeks. The property, an old farmhouse split into two separate units without proper building or safety compliance, was one of three rental units on the site.
Tenants Left Without Water
The tribunal ruling highlighted ongoing water shortages at the property, where all three units shared a 11,000-litre tank—far below Auckland Council’s recommended 64,000 litres for a four-person household. Despite water deliveries every 1.5 weeks, residents frequently ran out of water for 24 to 46 hours at a time.
As a result, the tribunal ordered Shen and Yuan to refund 40% of the rent paid between December 2023 and January 2025. Tribunal adjudicator Michelle Pollak noted that the property was unlawfully rented, suggesting that the landlords had knowingly ignored regulations while profiting from the investment.
Ray White Responds
Ray White Te Atatū branch owner Crystal McKeown stated that the company was unaware of the tribunal ruling until contacted by media. She confirmed that the rental property was not managed by Ray White, but acknowledged the reputational damage caused by the case.
“I’m sorry to hear about the state of the property, it’s not acceptable, but we were not responsible for this property in any capacity,” McKeown said. She confirmed that she had a “strong conversation” with Shen about maintaining professional integrity and has since provided him with additional property management training.
Tenant Complaints and Legal Defenses
Shen, when approached for comment at his $2.47 million Greenhithe home, insisted the tribunal’s decision was unfair. He denied that tenants had lived with sewage-soaked carpets, stating that the flooring was steam cleaned in June 2024, one month after the overflow. However, tenants argue that the smell and dampness persisted for the remainder of their tenancy.
The tenants also highlighted health concerns, saying they refused to remove the contaminated carpets themselves due to the risk of exposure to hazardous materials. They were initially promised a professional clean-up but were instead left with basic steam cleaning services.
Regarding the frequent water shortages, Shen defended himself, stating that he covered all water delivery costs. He also disputed the tribunal’s ruling on the non-compliant property modifications, arguing that older buildings do not need to be retrofitted to meet modern building standards.
Real Estate Authority May Investigate
The Real Estate Authority (REA) has the power to investigate complaints against licensed real estate agents for misconduct. Chief Executive Belinda Moffat stated that misconduct includes behavior deemed “disgraceful” by industry standards, and that individuals must be “fit and proper” to hold a real estate licence.
While the REA has not confirmed whether an investigation into Shen will take place, the case serves as a warning to real estate professionals acting as private landlords.
Tenancy Tribunal Issues Warning
To prevent further unlawful rentals, the tribunal published the property’s address, 310 Dairy Flat Highway, Albany Heights, as a deterrent. Auckland Council has also confirmed it will investigate the property’s compliance with rental regulations.
As the real estate industry grapples with growing scrutiny, this case highlights the need for stronger accountability and ethical standards among landlord-realtors in New Zealand.
SOURCE: STUFF