Queenstown has been hit by an accommodation crisis and a harsh winter this year. The resort's rental stock includes a lot of older properties, poorly insulated.

A Queenstown landlord smashed up a heater with a hammer, threw gear outside and threatened eviction by text, a former tenant claims.

An accommodation crisis in the resort town has led to accusations of exploitation, inflated rents and 'slum-like' conditions although boarding-style houses or multiple occupancy properties are perfectly legal.

Thirty applications have been made by Queenstown tenants and landlords to the Tenancy Tribunal, the rental market watchdog, since the start of winter

JOHN EDENS/FAIRFAX NZ Hundreds of new homes are being built in Shotover Country subdivision in Queenstown in an effort to alleviate housing pressure.

Tenant Jamie Davies said he previously lived in a house with 14 single rooms, each room costs $165 for a single person or $210 for a couple.

Tenants had to pay for a dryer, there were holes in the roof and it cost an extra $15 a week if tenants wanted heating in their rooms, he said.

Davies, in his case, said tenants were threatened with eviction by text message and there were threats to cut off internet and remove a TV. Lease terms included "ridiculous" clauses such as "any electronic devices at the discretion of the landlord."

"He once took a hammer to one of the boy's heaters he found whilst replacing their door.

"We took to drying all our gear in the communal lounge room to not pay for the dryer, we came home one day and he had thrown all of this outside claiming 'the lounge room was his area, we couldn't have our stuff in there.'

"He didn't even live in the house."

"He showed up whenever he wanted. We had an outdated contract stating ridiculous things like 'extra visitors charged $20 a night."

The landlord could not be reached.

Tenancy Services acting general manager of resolution services Ross van der Schyff said a landlord's responsibilities were clearly defined under the Residential Tenancies Act

"These responsibilities include providing and maintaining the premises in a reasonable condition and complying with all building, health and safety standards that apply to the premises.

"Under a normal tenancy agreement, periodic or fixed term, all bond money must be lodged with the Ministry [of Business, Innovation and Employment] within 23 working days of receipt."

He said the ministry also has a compliance team, whose role was identifying issues where landlords failed to comply with their responsibilities. The team was working with the Queenstown Lakes District Council, to help with legal questions, providing advice and information.

Specific non-compliance would be thoroughly investigated by the ministry and in the six months from March to August this year 30 applications from Queenstown were lodged with the Tenancy Tribunal.

Under the law, exemplary damages can be awarded if the tribunal deems an unlawful act has occurred. A tribunal order is legally enforceable and binding.

Another Queenstown tenant, Sheri Bolton, said the cost of housing was extortionate given the low wage economy in Queenstown.

She said she knew people who were paying between $800 and $1,080 per month for a room in a shared house.

"It's a wonder any of us even survive.

"I used to pay $150 a week for a room in a three-bedroom house, but when my friend, who had the lease for the past three years, gave up the house and the lease to other friends, the rental agency came in and upped the rent by $100.

"This was because they knew they could get more because of the housing shortage.

"Again, I understand supply and demand. But this house is 30-years-old. It has no underfloor insulation. It is partially single-paned. The pipes froze multiple times this winter, leaving us without water.

"I can feel draughts coming from the light fixtures and from the bathroom cabinets as they lead directly outside. There is water damage everywhere. The windows are coated in mould. I froze all winter.

"Our power bills were extraordinary. But here is a rental agency charging a letting fee and a bond for a house that in many other countries would not be up to code and would be condemned unsuitable for occupancy."

According to one councillor, 'slumlords' are taking advantage of the Queenstown accommodation crisis.

However, not everyone is unhappy. Tenants in a Fernhill share house said the nine-bedroom, $2000-a-week property was "not too bad" although their landlord, Perry Noyce, said he inherited a basketcase.