Fair Rents Explained

Alexandra Herald and Central Otago Gazette, 19 February 1947, Page 5

Fair Rents Explained

What is a fair .rent? This question is often asked by landlord and tenant but usually answered differently because each looks at it from his own point of view. The protection given under the Fair Rents Act and the Economic Stabilisaton Regulations operates to protect both landlord and tenant from undue hardship and also helps to guard against inflation. Today every house, flat or room let as a separate dwelling, whether furnished or not, is controlled by the Fair Rents Act and the Economic Stabilisation Emergency Regulations The two main .provisions are: (1) that all rents are controlled —it is an offence to raise them without permission of the courts, or, in a case where both parties are agreed, without the apnoval of an inspector of factories; (2) that tenants of dwellings may not be evicted unless the landlord has first obtained an order' from the court. \ Fairness Determined When cases are taken to court under the Fair Rents Act the magistrate determines what rent is fair to the tenant and fair to the landlord by considering the quality of the accommodation and the acatul amount paid out by the landlord for repair, painting, rates, insurance etc. He then allows the landlord a clear return of at least 4 per cent interest (usually about 5 per cent) on the value of his investment. Boarders and "roamers" are now protected by amendments to the Fair Rents Act, and exorbitant rents cannot be charged for a room merely because of the addition of services such as the "morning tray' 7 or the provision of linen. Such services have a definite calculable value which a magistrate can fairly assess if the case is taken to court. If a tenant thinks his rent is too high he can seek the advice of the Department of Labour, which administers the Fair Rents Act. Where a landlord has failed to keep the premises in reasonable repair the tenant may have justification for a reduction m rent. On the other hand iwhere a landlord substantially improves the property he may apply ;to have the basic rent raised. Orders for Possession Under the Fair Rents Act a landlord may obtain an order for' possession on one or more of the following grounds, but not otherwise : (1) Failure to pay the rent lawfully due, or to comply with' any other condition of the tenancy agreement.

(2) Failure of the tenant to take reasonable care and prevent dam(3) Conduct by the tenant thai is a nuisance or annovance *£ neighbours. H,< fJl (4) Sub-letting by the tenant at an unreasonable rental. (5) Premises required by the landlord for his own occupation ' (6) Premises- sold and required for occupation by the purchaser. (7) Premises required for occupation by an employee of the landlord. ,• (8) Premises required by the landlord for demolition or reconstruction. (9) That the estate of interest of the landlord in the premises will have expired or been determined. Question of Hardship Any of these grounds used by the landlord will, of course, be weighed against the hardship imposed on the tenant as a result of eviction. The court's decision will depend upon who is likely to suffer the greater hardship, the landlord or the tenant Each case has to be judged on its individual merits. , Officers of the Department of Labour are always willing to explain the provisions of the Fair Rents Act to landlords and tenants who i seek their advice.