OWNERS' RIGHTS.

Auckland Star, Volume LXVIII, Issue 251, 22 October 1937, Page 8

OWNERS' RIGHTS.

TENANTS EVICTED.

ACTION FOR POSSESSION.

HOUSING- PROBLEM DEVELOPS.

Actions for the possession of houses in the city and suburbs and eviction of tenants are a development of the hous. ing problem in Auckland in rpcent months. The number of cases brought before the Court or under the. notice of inspectors of the Labour Department where houses have changed owners and the purchasers wish to move in have been increasing as people have discovered that they have only a slender prospect of securing house-room by other means.

"It is the latest phase of the housing shortage, and it is becoming more serious every week," said an officer of the Department to-day. "Quite a large proportion of the cases heard in the Courts in the past month or two have been actions by people who have bought homes in the city or suburbs for the purpose of living in them. Many of the purchasers are from other towns, some from as far away as the King Country and Hawke's Bay district*/*

As the applicants had a right to possession in such cases, except where eviction would cause special hardship to the tenant, it Mas stated that orders in their favour -were usually made. The magistrates, however, had discretionary power and in doubtful cases made a comparison between the relative positions of the opposing parties. Thus in one case the position of a landlord with no family, who sought possession, was compared by the presiding magistrate with that of a tenant who had a large family, including several voting children, and an order was refused. This was in recognition of the fact that in the search for homes parents with families are at a great disadvantage. Departmental Staff Busy. Another case was mentioned in which a family of five were compelled to move out at short notice. The only accommodation they could secure was a room in an apartment house where they remained until they were able to make other arrangements. Tfcere was a lull in operations under the Fair Rents Act during August and September, while landlords and tenants were waiting to see what action would be taken by the Government, but when the restriction on rents was extended for a year until September 30. 1938, applications began to How in. During the past three week* the Departmental officers have l>een particularly busy. On the average about half a dozen eases have been taken each week in the Courts in Auckland, and in probably ten times this number of cases agreements between landlords and tenants have received Departmental approval.

"The majority of the adjustments have been upwards," said an officer, "though occasionally reductions in rciito have been obtained by the tenants. The value and the condition of the premises are important factors, and the circumstances of the occupiers also taken into account. Although there is no very marked appreciation in values there is a perceptible rise in progress."

Protecting the Landlord. A suggestion was made that landlords should acquaint themselves fully with the provisions of the law relating to increases in rent before any rise was made as these provisions had been much misunderstood. It was explained that while the basic rent—the amount paid on May 1, 1936 —applied in all existing tenancies, it was lawful to charge a higher rent to a new tenant, and in numerous cases increases had been made, but these increases were not binding unless they had been agreed to by the tenant and confirmed by an inspector whose authority in this respect was similar to that of a magistrate.

Where rents had been paid in excels of the basic rent, witliout the protection of an agreement, the tenant, it was stated, had the riiht to recover t lie excet-n, and considerable sum* had lieen repaid. The period t.) v. Yi-1> recovery applied was, however, limit c*d to six months.

The average rise in rents over the past vear was estimated at from five to seven and a half per cent, though in exceptional cases increases as high as 20 per cent and even up to 33 1-3 per cent had l>een made. Where tenants had been considerately treated in the depression and were now in a better position to pay a rent which would give a fair return to the owners many had asaceed to revise the figure. Several hundreds of agreements which provided for such revision had been approved by the Department.