The Tribunal ruling found Arzi called the garage "the studio" throughout the tenant agreement, and claimed the couple were his flatmates. He rented it out despite it not being consented as a separate dwelling.
The wife said Arzi entered the garage without notice, and sent text messages to her "constantly" wanting access to carry out work.
She said Arzi would yell at her either on the phone or face-to-face. Arzi said entering the premises at will was "his right as landlord".
Stephenson ruled against Arzi on a number of factors.
"Aggravating factors included the threatening terms of the tenancy agreement, Mr Arzi's whimsical interpretation of his rights, and the frequency and the manner in which Mr Arzi pestered the tenant," Stephenson said.
"He brought a combative approach to problem-solving.
"The frequency of his interruptions to their quiet enjoyment of the premises, and of his interference with their reasonable peace, comfort and privacy in the use of the premises constituted harassment and amounted to an unlawful act."
Stephenson said Arzi intentionally did not lodge the bond of $1080 with the Bond Centre, as the law requires.
Arzi is a superannuitant, and after his own landlord terminated another tenancy, resorted to sleeping in his car.
Liow also claimed a refund of the entire amount the tenants paid for rent, approximately $13,000, as well as the $1900 she paid for power and water, because the garage was not a legal dwelling.
But Stephenson declined to award a refund of the rent, stating "the law relating to tenancy of unconsented buildings is in considerable disarray".
"I think it is best to take a precautionary approach and await clarification on appeal."
