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TUESDAY, DECEMBER 18, 1984
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UNDER PART IV, A SIX-MONTH NOTICE MUST BE GIVEN BY THE LANDLORD BEFORE HE MAY TERMINATE A TENANCY BUT THE TENANT CAN SEEK A RENEWAL IF HE DOES NOT INTEND TO LEAVE. IF AGREEMENT CANNOT BE REACHED BETWEEN THE PARTIES, THE TENANT CAN APPLY TO THE LANDS TRIBUNAL FOR THE GRANT OF A NEW TENANCY.
AS REGARDS THE SYSTEM REGULATING RENT INCREASES OF DOMESTIC TENANCIES OF POST-WAR PREMISES PROTECTED UNDER PART 1 OF THE ORDINANCE, THE SPOKESMAN EXPLAINED THAT PRIOR TO DECEMBER 19 THE PERMITTED INCREASE IN RENT WAS HALF OF THE DIFFERENCE BETWEEN THE PREVAILING MARKET RENT AND THE CURRENT RENT, LIMITED TO 30 PER CENT OF THE CURRENT RENT BUT, IN ANY EVENT, THE RESULTANT NEW RENT HAD TO REACH AT LEAST 30 PER CENT OF THE PREVAILING MARKET RENT.
FROM DECEMBER 19, THE PERMITTED INCREASE IS DETERMINED BY THE DIFFERENCE BETWEEN THE PREVAILING MARKET RENT AND THE CURRENT RENT, STILL LIMITED TO 30 PER CENT OF THE CURRENT RENT. BUT, IF THE INCREASE SO DETERMINED, WHEN ADDED TO THE CURRENT RENT, RESULTS IN A RENT LESS THAN 45 PER CENT OF THE PREVAILING MARKET RENT. THE PERMITTED INCREASE WILL BE AN AMOUNT NECESSARY TO BRING THE CURRENT RENT UP TO 45 PER CENT OF THE PREVAILING MARKET PENT.
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FOR EXAMPLE, IF THE PREVAILING MARKET RENT OF A FLAT IS $3 303 AND THE CURRENT RENT IS $1 000, THE DIFFERENCE BETWEEN THE TWO WOULD BE $2 000; BUT THE INCREASE IS LIMITED TO 30 PER CENT OF THE CURRENT RENT WHICH IS $300. HOWEVER AS THE RESULTANT NEW RENT ($1 000 + $300 = $1 300) IS LESS THAN 45 PER CENT OF THE PREVAILING MARKET RENT WHICH IS EQUAL TO $1 350, THE PERMITTED INCREASE IS THEREFORE $350, I.E. THE AMOUNT NECESSARY TO BRING THE CURRENT RENT UP TO 45 PER CENT OF THE PREVAILING MARKET RENT.
THE SPOKESMAN POINTED OUT THAT APPLICATIONS FOR A CERTIFICATE OF RENT INCREASE RECEIVED BY THE DEPARTMENT BEFORE DECEMBER 19 WOULD NOT BE AFFECTED BY THE REVISED SYSTEM. THE REVISION WOULD AFFECT LESS THAN 16 PER CENT OF PROTECTED TENANCIES, BEING THOSE WHERE THE TENANTS WERE PAYING RELATIVELY LOW RENTS.
QUESTIONS CONCERNING THESE AMENDMENTS SHOULD BE DIRECTED TO THE RENT OFFICERS OF THE RATING AND VALUATION DEPARTMENT OR THE STAFF AT ANY OF THE DISTRICT OFFICES.
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