RENTS AND RATES.

Auckland Star, Volume LXII, Issue 69, 23 March 1931, Page 6

RENTS AND RATES.

THE LANDLORD'S POSITION,

(To the Editor.)

I am sure that many persons besides mvsell were astounded to read the Hon. Mr. Coates' statement that "rents must eoine down." Does the honourable gentleman not know that rents in Auckland and elsewhere have already come down very considerably during the past few years ? I could quote many cases within my own knowledge where rents of shops, offices and dwellings have been reduced by as much, as 3o per cent within the last two years. Mr Coates should know that when there is an excessive supply of any commodity the price of that commodity, in accordance with the law of supply and demand, must come down. Further, Mr. Coates should bear in mind that there is no ring or combine to keep up rents of shops, offices or dwelling.. All renting buying and selling are done in open market! Of how many other industries or sections of the people can this be said? It may be news to Mr. Coates that the rates in Auckland citr including water charges, now amount to 4/6 in the £1. When one adds cost of insurance maintenance, and in many cases bad tenants' to say nothing of interest on the cost of a property, the owner possesses anything but a gold mine; in fact, he is fortunate if he receives five per cent clear for hk property. Now if the honourable gentleman had said "Rates must come down" he would have been savins something fair and consistent. The fact is that while rents have been falling durin"- the past two or three years the City Council's rates have gone on increasing. By the wav, it Ls to be hoped that at the coming council elections the ratepayers will return a sufficient number of members definitely in favour of a reduction in the rates. This can be brought about if the council will refrain from undertaking any but necessary works and by reorganisation of the staffs. CONSISTENCY.