Hangar rents set to rise

Hangars lined up along the tarmac at Northam Airfield.
Hangars lined up along the tarmac at Northam Airfield.

The Shire of Northam, which owns the hangars, chose to defer a decision on increasing rents at its Wednesday meeting until June after concerns expressed by those who use the hangars.

Shire President Steven Pollard said the deferral would give the council and concerned parties time to discuss any increase.

Each hangar site lease states that there is to be a market review every five years and the Shire can charge rent determined by its valuer, or may charge alternative rent that is less than the market rental price.

Once the new rents are determined, the Shire has to give tenants one-month’s notice. The valuation, which is for land only, showed that one hangar site had increased in value by almost 40 per cent from $1500 to $2360.

The number of hangar leases has increased from 15 to 25 in the past five years, in part due to affordability compared with Jandakot Airport.

‘The prices need to reflect market value,’ Mr Pollard said.

‘People will pay a reasonable amount, but it depends how you define reasonable.

‘There were concerns from hangar owners who sent in letters. They thought the methodology used was questionable.’

One Northam resident, who did not want to be named, said the increases would not result in less business for the airport.

‘I don’t think anyone is going to pack up and leave, however I think any rent rise should be spread over the entire base of ratepayers in the Shire of Northam,’ he said.

‘It’s a community asset, so every ratepayer should contribute.’