AGY-2232 | Rent Control Office

Full description

The Rent Control Office was established by the Landlord Tenant (Amendment) Act, 1948. The Act forbade the increase in rent of 'prescribed premises' unless the 'fair rent' was determined by the Rent Controller or a Fair Rents Board. (1) 'Prescribed premises' were all premises except those used for agricultural or holiday purposes or any other premises which the Governor by proclamation excluded from the provisions of the Act. (2)

The lessor or lessee of prescribed premises (other than shared premises) could apply to the Rent Controller for determination of a fair rent. In order to make the determination the Controller could obtain reports, make inquiries, inspect the premises, and/or hear submissions from any person whose rights may be affected by the determination. The Controller was not bound to conduct an oral hearing, but if hearings were conducted they were informal. (3) Persons could be summoned to attend a hearing if held, to give evidence and to produce relevant documentation. (4) Witnesses had the same protection and liability as witnesses in the Supreme Court . (5)  Any person could make representations to the Controller. (6) Any person was entitled to representation by an agent, for example, a legal representative. The fees of such agent could charge were limited by regulations. (7)

The determination of the fair rent was not to exceed 6% of the cost of structural alterations to the property since the last determination, or the prescribed date whichever was the more recent. .(8) The Rent Controller could consider factors such as the capital value of the premises; the rates or insurance premiums payable; cost of repairs and maintenance; depreciation costs; rents of comparable premises in the locality; interest rates; services provided by the lessor or lessee in conjunction with the lease; any obligations of the lessee to carry out repairs and maintenance at his own expense; justice and merits of the case; any hardship which would be caused to the lessee or lessor. (9) The decision of the Controller was conveyed in writing including the date on which the determination took effect. This date was fixed by the Controller but could not precede the application. (10)

The Controller could also of his own volition determine the fair rent of any prescribed premises. (11) He could also determine a fair rent for premises leased with goods. In these cases he could decide whether to set a rent with or without the goods. (12)

Application could also be made for a determination of a fair rent for shared accommodation if the rent due was paid or the premises were vacant.. These determinations were preceded by an inspection, but otherwise the process was the same as premises leased by a sole tenant. Like other prescribed premises, shared premises could be assessed for fair rent on the initiative of the Rent Controller. (13) The rental for shared premises leased with goods could be assessed either including the goods or independently of the goods. (14)

Lessors or lessees could appeal against the determinations of the Rent Controller to the nearest Fair Rent Board. (15) In conducting an appeal the Fair Rents Board made a full investigation using any method it felt appropriate and was not bound by the laws of evidence. The decision reached by the appeal process had effect from the date of the Rent Controller's determination. The Rent Controller was supplied with a copy of the decision. (16) The Rent Controller's decision was final unless an appeal was lodged within 21 days of the initial determination, and if there was an appeal the decision of the Fair Rents Board was final. (17)

A rent determination could be varied on application of the lessor or lessee or on the volition of the Rent Controller. Factors which could influence the variation included: errors in the original decision; changed use of the premises which resulted in alteration of the outgoings or which could result in loss to the lessor; alteration of the terms on which the premises are used; alterations or additions to the premises or the goods leased with the premises; or change in the value of the premises. (18)

Lessors were required to advise the Rent Controller if there were changes to the services supplied with the lease or to the nature of occupancy, for example changes from shared to single occupancy. (19) It was illegal to require a tenant to pay a higher rent that the fair rent determined, and any sum in excess of the fair rent could be claimed in an action for debt in any court with that jurisdiction. (20)

The Rent Controller had the same protection and immunity as a Justice of the Peace. (21) He was required to provide any information regarding any determined fair rent. (22) A certificate by the Controller was adequate evidence that the fair rent had been determined provided that the authenticity of the certificate was verified. (23)

The functions of the Controller could be delegated and the actions of the delegate were as legitimate as those performed by the Controller. (24) Following publication in the NSW Government Gazette some prescribed premises could be exempted from the powers of the Controller in particular actions. (25) The Act provided for the powers of the Controller to be transferred to Fair Rents Boards if specified in regulations. (26)

Regulations under the Landlord and Tenant (Amendment) Act, 1948 issued on 29 October and 19 November 1949 gave the Rent Controller responsibility for fixing rents for all leased premises except shared accommodation in the County of Cumberland and for all leased premises outside the County. (27)

The Landlord and Tenant (Amendment) Act 1949 (Act No.21, 1949) changed the role of the Rent Controller by transferring the rent-fixing responsibilities to the Fair Rents Boards thus decentralising the work. The Rent Controller's office remained with a reduced staff maintaining its responsibility for the general administration of the Landlord and Tennant Act including the receipt of applications and issuing certificates. (28)

The Landlord and Tenant (War Service) Amendment Act, 1949 (Act No.22, 1949) took over from the Commonwealth government the recovery of possession and the acquisition of premises for 'protected persons' , that is returned service personnel.

The Landlord and Tenant (Amendment) Act, 1952 (Act No.55, 1952) provided for some premises to be classified 'special premises' and to be exempt form the Act (29) and extended to powers of the Rent Controller to the determination of rents for letting caravans. (30)

In 1954 the Landlord and Tenant Act was amended again introducing the 5A lease for premises which were not leased between 7 December, 1941 and the commencement of the amended Act on 1 January, 1955. (31) Copies of the leases were retained by the Rent Controller adding substantially to the work of the office.

The 17A lease was introduced by the Landlord and Tenant (Amendment) Act, 1964 (Act No.62, 1964). The leases enabled the fixing of a fair rent by agreement between the lessor and the lessee. Copies of these leases were lodged with the Rent Controller. Who also carried out a range of administrative tasks in relation to these leases.

In 1968 the functions of the Rent Control Office were described as follows:

"To administer the Landlord and Tenant (Amendment) Act and to maintain the machinery for the operation of the Metropolitan Fair Rents Board.

"Metropolitan Fair Rents Board. To receive all applications, list them for hearing and maintain records of proceedings.
Registration and certificates. To receive and register applications, leases, and agreements under various sections of the Act for example Sections 5A and 17A to issue certain certificates under the Act.

"Complaints, inquiries and investigations
To resolve complaints by tenants against their landlords where there have been alleged interference with tenancy rights. To answer inquiries to clarify the rights under the Act of landlords and tenants. To conduct certain investigations, for example overcharges in rent and any other alleged breaches of the Act." (32)

The Strata Titles Act, 1973, (Act No.68, 1973) created the office of Strata Title Commissioner (33) whose role was to resolve disputes between a resident and the body corporate. The Act commenced on 1 July 1974 (34) and the office was combined with the Rent Controller whose title became Rent Control and Strata Titles Office. (35)

Endnotes
1. Landlord and Tenant (Amendment) Act, 1948 (Act No.25, 1948), s. 15.
2. Ibid. s. 8. Definition of "prescribed premises".
3. Ibid. s. 43.
4. Ibid. s. 45.
5. Ibid. s. 48.
6. Ibid. s. 44.
7. Ibid. s. 54.
8. Ibid. s. 20.
9. Ibid. s. 21.
10. Ibid. s. 22.
11. Ibid. s. 24.
12. Ibid. s. 25.
13. Ibid. s. 27.
14. Ibid. s. 29.
15. Ibid. s. 30.
16. Ibid. s. 31.
17. Ibid. s. 41.
18. Ibid. s. 32.
19. Ibid. s. 34.
20. Ibid. s. 35.
21. Ibid. s. 51.
22. Ibid. s. 52.
23. Ibid. s. 58.
24. Ibid. s. 11.
25. Ibid. s.12.
26. Ibid. s. 97.
27. NSW Government Gazette No.125, 29 October, 1948 pp.2790-2793 and No.147, 19 November 1948, pp.3117-3119.
28. Attorney General's Report under regulation 32 of the Public Service Board. 1950, p. 3 State Records NSW [12/1254].
29. Landlord and Tenant (Amendment) Act, 1952, s. 2(3).
30. Landlord and Tenant (Amendment) Act, 1952, s. 31A.
31. Landlord and Tenant (Amendment) Act, 1954 (Act No. 46, 1954) s. 5A.
32. Attorney General 'Outline' 1968 p.40.
33. Strata Titles Act, 1973 ss. 97-98.
34. NSW Government Gazette No.78, 28 June 1974, p.2345.
35. NSW Attorney General's Department 'Outline' 1974 p.50.