FIXING RENTS

Waikato Times, Volume 119, Issue 19902, 3 June 1936, Page 7

FIXING RENTS

INCREASES FORBIDDEN. MAGISTRATES’ DISCRETION. RETROSPECTIVE TO MAY 1. (By Telegraph—Special to Tlmee.) WELLINGTON, Tuesday. The legislation fixing rents was Introduced In the House of Representatives to-day. The rent paid by tenants of any dwelling on May 1 cannot bo Increased beyond that figure without the authority of a magistrate.

OWNERS RESTRICTED. SAFEGUARDING TENANTS. FACTORS TO BE CONSIDERED. WELLINGTON, Tuesday. With the object of making provision until September 30, 1037, lor restricting increases in the rents of dwelling-houses let at annual rentals & not exceeding £2lO, the Fair Rents Rill was introduced into the House of Representatives by Governor-General’s message yesterday. A dwelling house is defined as any house, or any part of a house let as a separate dwelling, where the tenancy does not include any land other than the site of the house and a garden. The definition does not include any premises let at a rent that includes payments in respect of board or attendance, any premises used exclus.vely or principally by the tenant lor business purposes, or any premises forming part of a building originally erected lor the purpose of being let as two or more separate Hats or apartuieurts. Restrictions Applicable. The restrictions provided in the Bill will not apply in the following instances:—To a house let for the first time after the passing of the Rill, to a house which has not been let between November 27 and the date of the passing of the Rill, to a house let. after the passing of the Rill at a rent exceeding £2lO a year, whether or not the rent is computed on an annual basis, and a house which has been let between November 27, 1035, and the date of the passing of the Bill at a rent exceeding £2lO a year. Provisions for fixing basic rents are set out. In the case of houses let as such on May 1,103 G, the basic rent will be the rent payable on that date. Where houses were not let on May 1 the basic rent is to be the rent last payable before that date. In the case of houses let after May 1 and before the passing of the Rill the basic rent is defined as that first payable in respect of those houses. An increase in the basic rent of any hou>< made between May 1 and the date of the passing of the Rill or after the passing of the Bills is to be irrej coverable, notwithstanding anything to the contrary in any agreement. However, if a fair rent is llxed by a magis- . Irate in excess of the amount now payable the increase in rent will be permitted. Submission to Court. Power is given to either a landlord or a tenant to apply to a magistrate for an order determining the fair rent of a house for a period not exceeding one year. No order by a magistrate can be made to apply earlier than the dale of application, although if the fair rent fixed by the order exceeds the rent payable under the tenancy the order fixing the fair rent is to come into effect only after l i days’ notice. In oases where the fair rent exceeds the rent payable under the tenancy a landlord is not entitled to charge above 1 lie rent llxed by the magistrate, but if the fair rent is less than the existing rent the landlord must reduce the rent to an amount not exceeding tli.it iixed by the magistrate immediately the order takes effect. In dealing with rent cases magistrates are empowered, if they think it fair and equitable, to make an order for the refund or remission by the landlord to the tenant for tile whole or any part of the rent in excess of the fair rent which may have been made or which may be payable by the tenant for any period within the six months immediately preceding that for which the lair rent was llxed. This particular provision Is not to apply to any rent paid or payable for any period for which a fair rent has been llxed. It Is further stipulated that the fair rent fixed by a magistrate is not io exceed the basic rent or the rent, if any, payable on November 27, 11)35. The lower uf these two to be taken A as :ii-' basis, n iwever, if tin' landlord ™ can produce evidence to satisfy the magistrate that in Hie special circumstances of the case i. is fair and equitable, the lair rent may exceed the Inisie rent or lli.it payable oil November 27. Assessment Basis. The fair rent is not to be higher than the rent paid by the tenant on November 27. the date of the last general election, or any reduced rent payable since that date, unless tin* landlord proves that that rent Is, in the circumstances, too low. The fair rent, it is stated, may be altered from time to lime and will only apply as long as the tenancy lasts. a new fair rent may be determined for any subsequent tenancy. Clause eight of the Bill provides that every order fixing a fair rent shall c«ase to have efiect if a subsequent order Is made In respect of the same house or on the expiry of the tonancy existing when the order was made. In all other cases the order will expire at the conclusion of the period for which it was made. \\ here an order lias been made fixing the fair rent of any house no rent in excess of the amount fixed is to be recoverable for any period during the currency of the order. However, if excess renl Is paid it may be recov - ered by the tenant within six months of Hie dale of payment as a debt due to him by the landlord, and may. without prejudice to any other mode of recovery, be deducted by ttic tenant from any luture rent payable by him within the period of six months. Ban on Premiums. J Tt Is also stated that persons who -* itipulate for, demand or accept for

themselves or others any bonus, line, premium, or other similar sum in consideration of obtaining or offering to obtain or doing anything for the purpose of obtaining a dwelling house for the occupation of any other person commits an offence. Sucli sums are also recoverable within six mouths. It will be an offence to demand or accept in payment for furniture, fixtures or other effects, as a condition of tenancy of a dwelling house, a sum in excess of the fair selling value of such articles. No proceedings are to be taken by a landlord for the recovery of possession of any house or for the ejectment of a tenant unless he gives i-i days’ clear notice to the tenant concerned. However, where the tenancy has been determined by 11 days’ notice in writing this provision will not apply. Grounds for Possession. The grounds on which orders may be made for the recovery of possession of a house or for the ejectment of a tenant are listed as follows: Failure by the tenant to pay the agreed rate of rent or the rent fixed under the Bill or to perform other conditions of the tenancy, failure of the tenant to take reasonable care of the premises, or commission of waste by the tenant, the causing of nuisance or annoyance by the tenant to neighbouring occupiers, the’ reasonable requirement of the house by the landlord for his own occupation, the sale of I lie premises to a purchaser who requires them for his own occupation, the sub-letting of the bouse or any part of it by the tenant so that lie makes a protit which, having regard to the rent he pays, is unreasonable. When application is made for an order for recovery of possession or for ejectment of a tenant the Court has to take into consideration questions of hardship that might arise for either j the tenant or the landlord by the granting or refusal of the application, it may refuse an application notwithstanding the fact that it lias been made on any of the grounds listed above. When a landlord recovers- posscssion of a house lor his own occupation it is stipulated that he must not let the house or permit any person other than himself and his family and domestic servants to occupy it. He must not sell or agree to sell the house within six months of the date when he obtains possession without the authority of a magistrate. However, if the house contains more rooms than are reasonably required by the landlord and his family he will oe permitted to let any extra rooms. In taking over possession of a house under an agreement for the sale of the premises the landlord and any other party to the agreement must keep tlie terms of the agreement, which must he proved to be genuine. Ail parties who sign a document which is not a genuine agreement will be | deemed to have commuted an offence, i Similarly when a landlord requires possession for the purpose of sale of the premises the purchaser will not he entitled to sell the premises again within six months, except with the authority of a megistrate. He also ! will be entitled to let extra rooms I which lie may not require. flic Bill was read a. first timo*