RJ RHOADES v. LEE WAI LEE

RJ RHOADES v. LEE WAI LEE

The Tribunal exercised discretion to refuse a break clause and to refuse an additional car park; it rejected averaging as a valuation method and held that where the landlord appears to be maintaining rents above the prevailing market (supported by vacancies and a pattern of higher asking rents), direct comparables within the same block are unreliable and comparables from other blocks/locality must be given greater weight. Applying those principles and accounting for inferior view, unrenovated kitchen and noise, the Tribunal fixed the new rent at HKD 21,000 per calendar month exclusive of rates for a two year tenancy from 1 July 1983.

Citation
RJ RHOADES v. LEE WAI LEE
Parties
Applicant (tenant): R.J. Rhoades; Respondent (landlord): Lee Wai Lee
Court
Lands Tribunal
Jurisdiction
Hong Kong
Judgment Date
15 September 1983
Case Number
LDLA42/1983
Procedural Posture
Part IV Landlord and Tenant (consolidation) Ordinance Application for New Tenancy / Hearing and Judgment
Outcome
Application granted in part: new tenancy for 2 years from 1 July 1983 granted at HKD 21,000 per calendar month exclusive of rates; break clause refused; additional car park refused.
Legal Topics
New Tenancy, Prevailing Market Rent, Break Clause, Car Park Allocation, Comparables, Rent Determination Methodology
Source Language
EN
Landlord and Tenant Property Law Rent Assessment New Tenancy Prevailing Market Rent Break Clause Car Park Allocation Comparables +1 more

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Parties

R.J. Rhoades

Applicant (tenant)

Lee Wai Lee

Respondent (landlord)

Procedural Posture

Part IV Landlord and Tenant (consolidation) Ordinance Application for New Tenancy / Hearing and Judgment

Legal Issues

  1. 1 Whether to include a tenant break clause in the new tenancy
  2. 2 Whether to grant a second car parking space
  3. 3 What is the prevailing market rent for the new two year tenancy and proper methodology for its assessment

Ratio Decidendi

The Tribunal exercised discretion to refuse a break clause and to refuse an additional car park; it rejected averaging as a valuation method and held that where the landlord appears to be maintaining rents above the prevailing market (supported by vacancies and a pattern of higher asking rents), direct comparables within the same block are unreliable and comparables from other blocks/locality must be given greater weight. Applying those principles and accounting for inferior view, unrenovated kitchen and noise, the Tribunal fixed the new rent at HKD 21,000 per calendar month exclusive of rates for a two year tenancy from 1 July 1983.

Court Disposition

Application granted in part: new tenancy for 2 years from 1 July 1983 granted at HKD 21,000 per calendar month exclusive of rates; break clause refused; additional car park refused.

Orders

  • Grant new tenancy for 2 years from 1 July 1983 at HKD 21,000 per calendar month exclusive of rates
  • New tenancy otherwise to follow terms and conditions of prior tenancy dated 16 October 1978 (including maintenance charges)