RIGHTS OF TENANT

Evening Post, Volume CXXII, Issue 79, 30 September 1936, Page 13

RIGHTS OF TENANT

FAIR RENTS ACT

EFFECT OF DISREPAIR

In a reserved judgment of considerable interest to property owners and tenants, delivered in the Magistrate's Court today, Mr.';J. H. L-uxford, 5.M.,. reduced the ront of premises leased for; one year on May 4 last, from £2 7s 6d; per week to either £1 10s or £2 per. week according as to whether certain minor repairs are effected by October 12.

Mr. Luxford repeated in his judgment principles suggested by Mr. E. D. Mosley, S.M., regarding the fixation of a fair rent for a dwelling. The capital value of the premises, the average outgoings in respect of rates, insurance, and repairs, and the yearly ( amount to be allowed for depreciation must first be determined. Then the Magistrate must, under section 7 of the Act, have regard to the relative circumstances of the landlord and tenant; and should fix the rent so as "to allow the landlord between 4 per cent, and 6 per cent, on the capital value. "From Mr. Mosley's contention, 4 per cent, must always be allowed," said Mr. Luxford, "notwithstanding the dwelling is in such a state of disrepair that the tenant is caused grave discomfort and inconvenience."

In Mr. Luxford's view, however, the Court could more properly give effect to the Act by fixing the appropriate percentage (between 4 per cent, and 6 per ceni) of capital value for every dwelling house and where the house was not in proper repair, to make an appropriate specified reduction in the weekly rental, a new order being granted when the repairs were effected.

"The quantum of reduction of rent would in effect be ■ a penalty. I can well imagine a comparatively small state of disrepair, or ■ a state of disrepair that would cost a small sum to remedy, causing such discomfort and inconvenience to the tenant that there should be a substantial reduction of rent while the state continues," he said. '• ' ..... ..'. .

The tenant in the case before Mr k Luxford proved that he. was justified in complaining about a number of matters, Vsmall but not. costing much to remedy, and until remedied a source of annoyance and discomfort." He therefore ordered a special. reduction of rent until the repairs were effected.