BLOCKS OF FLATS

New Zealand Herald, Volume LXXVI, Issue 23310, 31 March 1939, Page 12

BLOCKS OF FLATS

BASIS FOR RATING COST OF SERVICES PROBLEM FOR. THE COURT REDUCTIONS CONCEDED Tlie question whether blocks of flats should be valued for rating on the basis of individual tenants' rentals, as in the ease of office buildings, or as single businesses, like hotels, was argued in the City Assessment Court yesterday. Much of the discussion related to services which tenants received and payment for which was included in the rent. Among those wero use of furniture, and lifts, water supply, central heating, and the cleaning of halls and stairways.

Eight apartment houses, including some of the largest in tho city, were tho subject of objections. The main issue was not formally decided, for negotiations wero entered into in the afternoon between representatives of the City Council and the owners, and reductions amounting to £1719 on a total proposed assessment of £11,192 were mado by agreement. Furniture and Services Mr. A. K. North, who appeared on behalf of Brooklyn Flats, Limited, stated that the valuation fixed by the Court last year for his client's property in Emily Place was £IBOO. It was now sought to raise this to £2878, although tho Court had fixed the earlier figure after inspecting the property and going full}' into the question of services rendered to tenants.

The city solicitor, Mr. J. Stanton, said that the building" contained 48 flats, practically all furnished. The cost of furniture had been allowed for in making the new valuation, which was justified by the rentals. It was submitted that a block of flats should be assessed as a number of individual "occupations."

Mr. North said his contention wag that the valuation should be collective and based on what rental a tenant of the whole building would be prepared to pay for it after meeting other necessary outgoings. Conflicting Analogies Mr. Stanton remarked that in the case of office buildings the tenancies were treated as separate "occupations" and the assessment basis was the total of the rentals. Mr. North: In Brooklyn Flats there have been 38 changes of tenancy since the beginning of this year. Mr. Stanton: That does not affect the principle. The building was erected for, and is let to and occupied by, separate tenants.

Mr. W. R. McKean, S.M.: But we are dealing with furnished flats. Mr. Stanton: We have made allowance for furniture. Mr. McKean: Then why not for lifts, service and central heating? Mr. Stanton said that owners of office buildings received no consideration for central heating. Blocks of flats were analogous to office buildings, not to hotels. Mr. McKean: To neither, it seems to me. Mr. North said Brooklyn Flats was particularly akin to a hotel. Flats were not let for fixed terms, and tenants were always coming and going. The management actually provided a restaurant. Reductions Agreed To Mr. McKean said that 'in his view the Court should consider the rental that might be expected from a tenant who would lease the building as a whole. Such a tenant would have to make provision for the cost of sen ices. Mr. North stated that services cost his client £IOOO a year. That would account for the difference between the former assessment of £IBOO and the £2878 now proposed. In the afternoon, as the result ot negotiations, the following reductions from proposed assessments were to: —Brooklyn Flats, £2B/8 to £2000; Courtville, Eden Street (four blocks and garage building). £0989 to to<4o; Alverstone Flats, Eden Street, £I6OO to £1321; Eden Hall Flats, Eden Crescent, £IOSO to £900; Jervois Flats, Jervois Road, £575 to £509.