REDUCTIONS IN RENT

Taranaki Daily News, 14 April 1932, Page 7

REDUCTIONS IN RENT

CASE OF HOUSE PROPERTIES. EFFECT OF LIMITATIONS. "No legislation was necessary, as in most cases property owners have already made reductions of, in some cases, considerably more than 20 per cent,” said Mr. Owen Baker, president of the Real Estate Institute, at Christchurch, in giving the opinion of members on the proposed rent reductions. Mi*. Baker said that in the main the proposed legislation would not have a very great effect on property holders, as the limitations contained in the Bill allowed them a fair margin of profit. "I know some property owners who will be very pleased to get a net 7 per cent, on their capital investment, providing they get it steadily,’’ he said. He pointed out that the present difficulties being experienced by the community had fallen very heavily on real estate investors, who had been forced to reduce their charges in a highly competitive field. Some had been compelled to take low rentals in order to keep good tenants in their houses, and considerable reductions had been made by all to attract this type of “guaranteed” tenant. Mr. Baker quoted instances of residential properties in the suburbs for which a short time ago £2 a week was being charged, and for which the rental was now. 30s or 27s 6d. Similarly properties for which owners were getting upwards of 30s weekly, were now being let for 20s and 22s 6d. “The proposal would mainly have effect on shop rents, though here, too, reductions have already been made. On the average, reductions have been on the scale of 10 per cent, though there were a number of instances where rentals had been reduced by 20 per cent, and over. On the whole, I think it would be found that property owners would bo pleased to get 7 per cent, on their capital,” concluded Mr. Baker.