INCREASE OF RENT

Greymouth Evening Star, 11 May 1929, Page 2

INCREASE OF RENT

IMPROVEMENTS COMPENSATION.

A copy of a letter’ from the Federation of Drapers, Clothiers and Boot Retailers to the Associated Chambers of Commerce, asking for support in an endeavour- to secure legislation in New Zealand similar to the Landlord and Tenant Act in England, was placed before the Chamber of Commerce yesterday. , <rn . The letter was as follows: — The British Act makes provision for arbitration in fixing the value of premises where leases fall in,-for compensation to tenants for improvements, and for goodwill. Provision is made to renew a lease in cases where the tenant can show that the compensation to which he would be entitled under the Act would not compensate for the loss of goodwill he would suffer. A further section provides that where a lease is renewed, the rental may, subject to certain conditions, be fixed irrespective of any increased value, of the premises attributable either to improvements effected by the tenant or to goodwill. Provision is 'also made for granting- reversionary leases after giving due notice, and for safeguarding the landlord’s right to reimbursement or increased rates; taxes or insurance premiums. The practice had long been in existence of demanding extra rent for premises which the tenant had himself improved or in which he had created goodwill, and the Act is designed to remove such an injustice. It was realised by delegates to the conference that the position in New Zealand was not yet acute, but that in the future the same injustice as had grown up in England would most probably be experienced, particularly by the man in a small way of business, who did not possess the freehold. Instances were cited of cases even now occurring where exorbitant increases in rent also were demanded. Your organisation is therefore asked for its, support in approaching the Government with a request that similar legislation to the British Landlord and Tenant Act should be passed in New Zealand.”

It was felt by members that the subject was one requiring a good deal of consideration and consequently it was deferred until the next meeting.