RENT REDUCED

New Zealand Herald, Volume LXXIII, Issue 22466, 9 July 1936, Page 12

RENT REDUCED

THE NEW LEGISLATION PROPERTY AT 25/- A WEEK FAIR LEVEL FIXED AT 21/[BY TELEGRAPH —PRESS ASSOCIATION] WELLINGTON, Wednesday Judgment in the first case to be brought in Wellington under the Fair Rents Act, 1936, has been delivered by Mr. 15. D. Mosley, S.M. The case arose from an application by a tenant for an order determining the fair rental of premises occupied by him. The tenant had been in occupation between 16 and 17 years. He paid a rent of 30s a week to March, 1932, when the rent was reduced to 25s a week, and subsequently to 20s a week. It was increased by notice from the landlord, in January, 1936, to 25s a week. The magistrate referred to the provisions of the Act and said one ot the requirements was that a magistrate should fix as a fair rent such proportion as was not less than 4 per cent nor more than 6 per cent of the 'capital value, as he may consider reasonable, and as might be termed a fair profit to the landlord for his expenditure. "The condition of the premises is, in my opinion, one of the determining factors upon which a magistrate can reasonably compute whether he shall allow 4 per cent or more to the landlord," said Mr. Mosley. "The condition of the premises in queston is not good, in my view, the capital value, shown as £695, is reasonable, and, taking the lowest percentage indicated in the Act, I allow 4 per cent, or £27 16s. I allow a sum of £ll 13s on account of rates, £1 18s on account of insurance, and £6 on account of repairs. "The question of depreciation is, in my opinion, one that requires considerable thought, and it will probably be found that the rate of depreciation will materially differ in each application. I consider that if I allow li per cent on the capital value by way of depreciation, that is, £8 13s, that will be fair and equitable. "I compute accordingly," concluded the magistrate, "that the fair rent to be paid by the tenant is £1 Is a week for a period of six months from June 26, 1936. I make no order in respect of past rent." AUCKLAND CASES ELEVEN APPLICATIONS 'HEARD Eleven applications for decisions under the Fair Rents Act were heard in chambers at the Magistrate's Court yesterday. In the early part of the afternoon the upstairs corridor of the Court was unusually crowded with tenants, landlords and solicitors concerned, as well as many people who wished to be heard on other matters.