RENT REDUCTIONS

Rotorua Morning Post, Volume 2, Issue 223, 14 May 1932, Page 6

RENT REDUCTIONS

INTERESTIN G RULINGS ON SOME DOUBTFUL POINTS. j Several correspondents ask quesj tions concerning the rent reductions j provide d for by the National Expenj diture Adjustment Act. In the ani swers which are given below it must be understood that in every case the j landlord has a right of appeal against j the statutory reduction. j "Shop and House Tenant" asks on i what basis the 20 per cent. reduction j is calculated and the date from which j it can be claimed. The reduction is j 20 per cent. of the rent charged at 1st j January, 1930, where the contract j was in force at that date. In conj tracts since made or in operation b'efi fore 1st January, 1925, it is to be 20 j per cent. of the rent which would have i been charged at 1st January, 1930. j This hypothetical rent is to be fixed ■ by agreement of the parties, or by j arbitration, or by an adjustment com- ! mission or by the Court. The reducj tions date from 1st April, 1932. j "Rent Cut" has leased at _35s a j weelc a house which was occupied by i another tenant on 1st January, 1930, j at 45s a week under a two years' j lease. "Rent Cut" considers 45s was j too hlgh. In this case, as the 45s j contract was not with the present j tenant, the hypothetical rent must be j the basis for reduction. It is imj possible to say whether a Court or j any other body in fixing the hypo- ; thetical rent would consider itself : bound to accept the rent actually j charged at that date. The words of j the Act are: "Rent that would have ■ been payable under any contract if ! such contract had been entered into i on 1st January, 1930." j "Hard Hit" submits a similar case, j to which the same answer must be I given. I "Interested" asks if the extension j of the Rent Restriction Act to 31st j October means that the landlord can, E after that date, go back to the old i scale of rents. It does not. The 20 I per cent. reduction is under an Act \ which has no reference to the Rent j Restriction Act, which has been in E force in one form or another since \ 1916.