PAYING RENT

Bay of Plenty Beacon, Volume 3, Issue 212, 13 September 1940, Page 5

PAYING RENT

LANDLORD'S UNFORTUNATE POSITION FAIR RENT FIXED The unfortunate position of a landlord who had to pay rent himself because he could not take possession of the house he . had bought, and further, that he was expccted to vacate the house he occupied at present, was revealed in the Magistrate's! Court on Tuesday when John Wilson Gwynne (Mr Barry) proceeded against Sydney H. Olsera (Mr L. M. Goodacre, Inspector of Factories, Tauranga), for £17 and possession of the house. The house, owned by Gwynne, was purchased by him from Mr SV G. Whiteside and Olsen was the tenant at the time of the sale. Mr Goodacre said that the fair rent for the dwelling had been fixed at 10s per week for twelve months in a ruling by the Magistrate on March 9th, 1937, the rental taken as from January 12th of that year, Mr Barry submitting that his client was not bound by the actions of any previous ow T ner. Assessing the Rent. Mr Goodacre said he had inspected the property and after allowing for interest, rates, upkeep, insurance and depreciation, which would amount to a gross of 11/6 per week, lie added that the present tenant was paying 25/-' per week, although the Department claimed that the basic rate was 20/- per week. His Department claimed that- the difference between the 20/-' and the 25/paid by defendant was recoverable* Counsel questioned Mr Goodacre at some length, the principal issues being the decreased value of the remaining part of the property, frontages and valuations of land. Plaintiff's counsel pointed out, respecting depreciation, an item allowed in Mr Goodacre's estimate as I*4 per cent, that the Taxation Department allowed 2% per cent.

Mr Goodacre said lie considered that 15/- per week was a fair rent, the Magistrate observing: "Your figures do not support it." The Government valuation of the property was £250, said Mr Barry. Gwynne had bought the house for his own use knowing that there was already a tenant- The terms of the purchase were a deposit of £100 and instalments of £65 per annum. A Double Dose. Gwynne, continued Mr Barry, was at present living in a smalfl house on a farm at Poroporo and was paying 25J- per week rent. That, of course, was additional to the 25/per week he was paying on his own property. Counsel submitted that the hardship on the owner was more than on the tenant, who had not made any effort to find a house." Defendant, said Mr Barry, worked at the Public Works Department quarry on the Taneatua Road and had been offered a house at Taneatua, refusing the offer because it was situated too far from. Whakatane. Mr Barry submitted-that the landlord wanted possession for his own use and that the tenant was relying on the Fair Rents Act.

Plaintiff, in evidence, said lie had purchased the property for £650. He was now living at Poroporo and paying 25/- per week rent. Answer- 1 ing Mr Goodacre, plaintiff said lie was under the obligation to vacate his present tenancy as the owner of the farm wished to use the house ' for accomodating sharemiSkers. He was not sure when he had to vacate but was positive that it was necessary: ; "The fair rent is fixed at 15/per week," said Mr Walton, who ordered a refund of the excess over the last _six months. Continuing his judgment, the magistrate said that in answer plaintiff's contention of hardship was the fact that he had! bought himself into the position. The claim would fail and judgment would be given fp>r de- 1 fendant on the claim for possession.