FAIR RENTS ACT

Greymouth Evening Star, 18 June 1936, Page 4

FAIR RENTS ACT

MINISTER EXPLAINS NEW LAW

Explanatory statements giving full details of several of the measures paso-j ed during the first part of the sessl ?™l of Parliament have been prepared b) the Minister of Labour, Hon. H. 1. Armstrong. In a clause by clause explanation of the Fair Rents Act it .s pointed out that the main purpose ot this Act is to make temporary piovision (until September 30 1937) for restricting increases in the tent m dwelling houses that are let at a rental not exceeding £156 per annum. The Act (which binds the Crown) (l oes not apply to any dwelling first let after the passing of the legislation or to blocks or residential flats. Section 5 prevents any increase m a tenant’s rent during the tenancy, except where a fair rent is dcteimined in accordance with the provisions of the Act. This section _is made retrospective to May 1. 193(>. Sections 6 and 7 enable a magistrate to determine a fair rent for any duelling house, on the application of either the landlord or the tenant. In the absence of regulations to the contraix, the fair rent is to be such rent as in the opinion of the magistrate it is fair and equitable for the particular tenant to pay. having regard to any hardship likely to be inflicted on the tenant or the landlord and to all other relevant considerations. The fair rent is. not to be higher than the rent paid by the tenant on November 27, 1900 (the date of the last general election), or any lower rent that has been payable since that date, unless the landlord proves that that rent is, in the circumstances, too low.

FIXING A FAIR RENT. Regulations may be made under section ,24 of the Act providing for the fixing of the fair rent at an amount equal to a percentage of the capital value of the dwelling house (not less than 4 per cent., nor more than 6 per cent, per annum) together with the outgoing for rates, insurance and repairs. and the amounts (if any) to be allowed for depreciation and as rent of furniture. Such regulations may apply generally or in respect of speciRed parts of New Zealand or specified classes of dwelling houses. The failrent may be altered from time to time, and only applies so long as the tenancy lasts. A new fair rent may be determined for any subsequent tenancy. , Sub-section (5) of section 6 empowers the court to order a refund of what it considers to be excessive rent paid during the six months immediately before a fair rent is determined. ‘ Section 9 declares any rent in excess of the fair rent to be irrecoverable; and section 10 enables a tenant to recover or deduct from future rent) any rent that lie has paid in excess of that pavable under the Act. Section 11 prohibits the charging of fines or premiums for letting houses to which the Act applies.

OBTAINING OF POSSESSION. Sections 12 to 15 relate to the obtaining of possession of dwelling houses by landlords. Section 12 requires 14 days’ notice to be given to the tenant before proceedings for possession are commenced. Section 13 sets out the only grounds on which possession of a dwelling house may be obtained. and authorises the court to refuse an order for possession where it is not satisfied that the landlord would suffer greater hardship from the refusal of an order than the tenant would suffer by reason of the grant of an order. Section 14 gives gives the court discretionary power to suspend any such proceedings for as long as it thinks fit, with or without imposing conditions. Section 15 is intended to prevent evasions of sections 13. Section 16 restricts the right of the landlords to distrain for rent. Section 17 empowers an inspector of factories to act on behalf of any tenant in proceedings under the Act. Sections 18 to 20 deal with procedure. costs and the jurisdiction of the court. There are to be no orders for ,the payment of costs except in special cases, and no appeals are to be made from any decisions under the Act. By section 21 tenants are debarred from contracting out of the benefits of the Act, except where any agreement between a landlord and tenant as to the fair rent to be paid has been approved by., an inspector of factories, aud section 22 makes it an offence to intimidate a tenant with a view to preventing him from taking action under the Act.

Section 2.3 prescribes a fine not exceeding £5O for offences against the Act; and section 24 provides for the making of regulations. Section 25 limits the duration of the Act to September 30, 1937.