XN000022-1974-03-07 — Page 8

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Thursday, March 7, 1974

RENT CONTROL LEGISLATION CLARIFIED

The Rent Control legislation does not permit an automatio

increase of 21 per cent in rents as some landlord and tenants believe,

a Rating and Valuation Department spokesman said today.

Clarifying the rate of increase permitted under the legislation,

he said the amount of increase is determined from the current rent paid

and the fair market rent assessed by the department.

The difference between these two rents is then divided by 5 and

the resultant figure is the amount of the certified increase.

However,

in most cases where the rateable value of the premises does not exceed

$30,000 the increase may not exceed 21 per cent.

With regard to Current Rent, the spokesman explained that this

was defined as "the rent payable, exclusive of rates," i... if the

landlord is responsible for the payment of rates, the amount of such

rates has to be deducted from the rent paid to arrive at the Current Ront.

It is to this figure that the maximum permitted increase in rent

of 21 per cent is applied.

So far, the department has issued some 6,000 Certificates of

Increase/No Increase.

The following table illustrates how the certified increase

is worked out:

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