FIXING A FAIR RENT.

NZ Truth, Issue 804, 9 April 1921, Page 6

FIXING A FAIR RENT.

As recently reported m "Truth" an application was made by a landlord to increase the rent of a 'dwelling . from 17s to 28s 9d a week. This was heard by Magistrate McCarthy, who 'has ■given judgment, m which he says that m ascertaining the capital value of a house on August 8, 1914, due regard had to be had, not only to the capital value then, but to the valuation at the time of the application. In calculating the outgoings for rates, insurance and repairs, only actual expenditure was to be taken into account. In the Amending Act of 1920, the income of 7 per cent, was referred to as net income. How could it be net income, if the amount to be allowed for repairs was to be a mere estimate of what were considered .necessary repairs and not money actually spent? ln the present case there was no proof that any repairs had been effected, so that he could not say what amount should be allowed for depreciation, which was fixed by the Act as such sum as could not be made good by repairs. He fixed the value of the house as on August 3, 1914, at £650. Seven per cent, on this was £45 10s, to which had to be added £5 18s lid for rates and insurance. The total annual rental therefore must be £51 Bg.ll, roughly, £1 a week, which he would fix as the standard rent for the house.