Victorian Consolidated Legislation

Landlord and Tenant Act 1958 - SECT 64

Matters to be considered in determining fair rent

64. Matters to be considered in determining fair rent



(1) In determining the fair rent of any premises each Board shall have regard
to-

   (a)  the appropriate capital value of the premises as hereinafter defined;

   (b)  the annual rates insurance premiums land tax and real estate agent's
        commission paid in respect of the premises;

   (c)  the estimated annual cost of repairs, maintenance and renewals of the
        premises and fixtures thereon;

   (d)  the estimated amount of annual depreciation in the value of the
        premises;

   (e)  the rents of comparable premises in the locality of the premises the
        subject of the application;

   (f)  the rate of interest charged upon overdrafts by the Commonwealth
        Trading Bank of Australia;

   (g)  any services provided by the lessor or lessee in connexion with the
        lease;

   (h)  any obligation on the part of the lessee to effect any improvements,
        alterations or repairs to the premises at his own expense;

        (i)    the justice and merits of the case and the circumstances and
               conduct of the parties; and





(j) any hardship which would be caused to the lessor or lessee or any other
person by the making of a determination increasing or reducing the fair rent
of the premises, including (but without limiting the generality of the word
"hardship") any loss which might be imposed upon the lessor by a determination
fixing the fair rent of the premises at an amount less than the lessor's
liability under a mortgage of, or contract of sale in respect of, the
premises, or under a hire-purchase agreement or contract of sale in respect of
any goods leased with the premises.

(2) In paragraph (a) of the last preceding subsection appropriate capital
value means-

   (a)  in respect of any prescribed premises, being an ordinary dwelling-the
        capital value of the premises at the date of the application for
        determination of the fair rent;



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   (c)  in respect of any prescribed premises, being business premises-the
        capital value of the premises at the date of the application for
        determination of the fair rent;

   (d)  in respect of any other prescribed premises-a capital value being the
        base value of the premises.

(3) In paragraph (e) of subsection (1) comparable premises, in respect of
premises which are the subject of an application, means premises which are
comparable if the premises the subject of the application were not prescribed
premises.

(4) In determining whether financial hardship would be caused to the lessee by
increasing the fair rent of any premises the Board may take into account the
total earnings, income assets and liabilities of the lessee and the members of
the family of the lessee ordinarily residing at the premises.

(5) For the purposes of making the determination referred to in subsection (3)
the provisions of subsections (2), (3), (4) and (6) of section 107A shall with
such modifications as are necessary extend and apply to this section, and,
without affecting the generality of the foregoing, in particular with the
modification that a reference relating to the suffering of financial hardship
if the premises cease to be prescribed premises shall be construed as a
reference relating to the suffering of financial hardship if the fair rent of
the premises is increased.



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Fixing Fair Rents by Notice