BASIC RENT OF FLATS

Press, Volume LXXXII, Issue 24902, 15 June 1946, Page 6

BASIC RENT OF FLATS

AUCKLAND OWNERS APPLICATION FIVE PER CENT. SOUGHT ON (P.A.) AUCKLAND, June u “I shall take time to consider L figures put forward in this Mr L. G. H. Sinclair, S.M.. at Um S' elusion of the hearing of a caiel, which Herbert Friedlander, a lafe lord, made application for an ini-T-SS basic rent for apartments in a tm. perty owned by him known Mayfair Flats. The existing basic mt was given as £2 10s. Messrs and Hart appeared for the tenmS while Mr Scanlen, of the Labour iv partment, also appeared on behaifrf three tenants. Details of outgoings on the fists which were in four buildings, wS’ given by Noel Roycroft Stewart * public accountant. These incluAg £2W for a caretaker-manageress. had a flat in one building, for -Im-. ing £lB2, £lO4 for bookkeeping ud £7B for a gardener. The landlord rs. ceived £2OO for personal mana*, ment. During an extremely heated —aexamination by Mr Terry, witness siS that he did not know what the fist occupied by the manageress ® worth. In fact, he did not know saw thing about it. The occupation of nn. taker-manageress was a full-time fat and she had to be there at all tims to attend to the requirements fif tefc ants. Herbert Friedlander said he sus. chased the flats frpm Fletchers' MSB for £32,500, but legal and other a. penses had made the total exnsn® ture £33.370, A loan of £lB,o® tad been obtained from a loan company and he had put in £14,500 himself. The property had been valued st £38,000. The aggregate rental obtained by the previous owners had tas. £3602, including rental for garagat hut he wished to obtain £4978, pint rental of garages. To Mr Terry, witness said he tnlieved he was entitled to a return < 5 per cent, on his outlay. . Mr Terry: You believe thM. Witness: I was told that before j i purchased the property, I expect flint, but I only want what I am entitled to. Witness agreed with Mr Terry thrt he purchased the property as on investment If he had known at that time what he knew now he would got have bought the property. Mr Terry: If you do not get yaiff 5 per cent, will you sell the flats? Witness: “Even if I get 5 par cent. I m*y sell.” He would not sell for wh& he paid for the flats and did not mind dropping a hundred or two. To Mr Terry, witness said he was an agent for a very well-known fine of wine and' spirits merchants,.ata received commissions. In reply to a auestion by Mr Terry as to wbette lat was a very lucrative business, Ki Jacobsen interjected that witness tad admitted he was a wealthy maa. Mr Terry said that if the Jensnts objected to an increase in rents they would be obliged to stay on in the flats as there was no alternative accommodation to this. Witness replied that he knew el vacant fiats in Auckland, but th* rents were from £4 4s to £4 10*. Mr Terry submitted to the Magistrate that the onus was on the W; lord to produce evidence ot “special circumstances” before an inerease In rent could be ordered. Decision was reserved.