'3SO





RECORD AND  GUIDE





December i/, 1904





.which the property is taken and providing reasonable means
of enforcing the obligation.

I have particularly iu mind the right to relet the premises for
the account of the tenant and to charge him with the expense
of reletting and the difference, if auy, between the rent obtained
for the balance of the term and that which the lessee had agreed
to pay. There are provided by law, various proceedings for the
removal of a tenant in case of failure to pay rent or breach of
other covenants; but the failure on the part of the tenant to
live up lo his agreement is the exception and not the rule. Care
exercised iu the preparation of a lease is to meet the exception
and jnesents no hardship to a tenant who faithfully lives up
to his obligations, though it appears to be the general criticism
that leases are always written raore strongly against the tenant,
ind. I believe, correctly so, because the landlord has the burden
pf responsibility by having a large amount of money invested
^s against the tenant's agreement to pay an annual rent;  yet,

■there is little or no objection found with the lease by a tenant
B'ho faithfully intends to heep his obligation.
■   For  the  same  reason,  the  careful  lease  protects the  owner

'kgainst the demands  of unreasonable tenants.    It is  usual  to

"Incorporate in the lease a provision that the tenant shall make

'bli repairs and maintaiu the premises in as good condition as
when  they were received, reasonable wear  and tear  excepted.

■^his provision is unnecessary, as the law provides that in the
Absence of a special agreement, the" tenant is liable for all re¬
pairs, biit it is thought best to have the provision thoroughly
Stated so that there can be no question in that regard, and I
fcelieve it is for the best interest of the landlord to see to it
himself and at his own expense, that this is done. A long ex-
Jierience has shown it to be good husiness policy, however, to
make such reasonable repairs as may be necessary to maintain
a good condition; a property neglected as to repairs and im¬
provements, soon shows signs of such carelessness and indiscre-

. tion, and the result is reduced rents and shrinkage in value.
I The agent is bound to diligently look out for the interest of
his principal at all times. The measure of his responsibility
is the care which a reasonable man would exercise in looking
after his own business. By neglect of some ordinary precaution
which a reasonable man would observe in the conduct of his
own business, the ageut may render himself as well as his
■principal liable for the damage caused by his neglect.
OFFICE ACCOUNTS.
The method of keeping accounts depends somewhat upon the
extent to which the agent is to represent the owner. If the
agent is to have complete charge, he should keep a record of
dates for the payment of interest, taxes, insurance premiums,
etc. Records should also be kept of the expiration of the mort¬
gages and insurance policies. Orders for repairs must be care¬
fully   recorded,   the   work   inspected,   and   the   bills   properly

, audited before payment. Copies of all contracts made in regard
to the property, should be kept and recorded. Names aud rec¬
ords of all employees should be filed and indexed to show that
proper care is exercised in their selection. A record should be
kept of all complaints with investigations and action taken in
regard to each. The names of all tenants, records of all leases,
aud the reports of investigations, must be appropriately classi¬
fied and recorded. Al! correspondence should be properly flled.
An account of money received as rents, should be deposited in
a manner to indicate that it is a trust account and should not
be co-mingled with one's own funds. Regular and frequent
reports should be rendered so that the owner may at all times be
fully informed of the condition of his property.

The rate of compensation for services rendered by a managing
agent varies and is dependent upon the special skill of the agent
and the demaud for his services. Custom prescribes the rate
of the broker's commission for renting to he 1% on th'e total
rent for the terra of the lease secured, providing that term is ■
three or more years; for a period of less than three years, 2V^%
on the first year's rental. Established standard of value for
agent's commission for collecting rents services is 214% on the
amount of money collected; agent's charge from three to five
per cent, for renting and collecting, ordering and superintend¬
ing of repairs, etc. The rate varies as to size, condition, and
rental value of the property, all of which is taken into con¬
sideration in each case at the tirae of making the formal agree¬
ment of the relation of landlord and agent.

It is usual to make contracts for management for one year
with proviso that a contract shall continue in fqrce from year to
year thereafter unless either the owner or the agent gives
notice prior to the expiration of any year, that he desires to
terminate the contract, containing also the conditions on which
the relation can be terminated 30 that there will be no mis¬
understanding in case the property passes ont of the hands of
the. .contracting owner.





In the management of property you have a business" which,
lacks the extenuating fascination and occasional large returns,
which follow successful negotiations, but you have a steady
business which requires utmost concentration, the daily per¬
formance.of well defined duties, the constant meeting of new
conditions, and the application of everyday practical common
sense, which, however, will insure a permanent annual income
on which you can depend.

Property wisely hought and properly managed will certainly
pay a reasouable income; property unwisely hought and im¬
properly managed will not pay a reasonable income. A man,
because he has sufficient means 10 purchase a property can no
more expe<'t to at once become a competent real estate manager
by purchasing property than he could expect to become an
expert manufacturer by purchasing a mill. "Whenever you
hear of a piece of property which does not pay you can dependi
upon it that the ownar has either paid too much for it, or Inr-
properly manages the property, or both. No positive rules will
at all times apply to the management of property; practical ex¬
perience is the best educator.

No one man, however, can attempt to satisfactorily perforut
all the varied duties connected with the management of prop-;
erty. The agent particularly devotes his time to the administra-;
tion of the duties of the office'and the property, and cannot|
personally give tihie to the working out of all the duties. He
must, therefore, be surrounded by able lieutenants, such as
lawyers, subsidiary agents, booklteepers, mechanics, etc. Foi
instance, in case of legal trouble, you would not expect tbe
agent to personally conduct a case at court.

The agent must procure the services of a competent lawyer
who is especially qualified in real estate law to protect agent
and landlord at all times against imposing and scheming tenants.
The lawyer muet be one who will take as rauch interest in the
<olle< tion for you of $30 arrears in rent, as he would if he were
retained on an important case for, we will say, the Standard
Oil Company. Again, you do not expect the agent to attend to
the detail of repairs, collecting of rents, ordering of coal. etc.

These various duties are performed by his subsidiary agenTs,
in the selection of which too much care cannot be exercised.
For they daily visit the properties, superintend all work, sueh
as decorating, carpentering, plumbing, and the many other de¬
tails which it is unnecessary to recite here, and a competent
trustworthy force of tms sort is the mainstay of a successful
managing department. In the selection of mechanics the agent,
on account of the vast amount of work and prompt payment of
bills, has not a small advantage over an individual.

But here again he must use discretion and patronize such
men only as will give first-class workmanship at reasonable
rates, for much criticism and objection to the work can be
averted if the agent can convince the landlord that he has pro¬
cured the maximum amount and quality of work at the mini¬
mum price.





National Civic Federaticn.

On Thursday night the annual dinner of the National Civic
Federation was given at the Park Avenue Hotel. 270 members and
friends attending. Samuel Gompers, the first vice-president of the
Association and president of the American Federation of Labor
presided. H. H. "Vreeland, chairman of the "Welfare Deipartment,
Secretary Ralph M. Easley and Francis L. Robbins. chairman of
the Department of Trade Agreements, read their reports. A let-
ter-from President Roosevelt was read. Archibishop Ireland and
John Mitchell, president of the United Mine Workers, delivered
addresses. August Beimont was elected president. The other
oflicers were re-elecled, as follows; Samue! Gompers, first vice-
president; Oscar S. Straus, second vice-president; Henry Phipps,
chairman of the executive committee; C. A. Moore, chairman of
conciliation committee; H. H, Vreeland, chairman of welfare de¬
partment; Francis L. Robbins and John Mitchell, chairman trade
agreement committee; Ralph M. Easley, chairman of executive
committee, and Samuel B. Donnelly, secretary.





^The suburbs of the city, now that the Subway is opening out
and surface railroads are developing their rural accommodations,
and the rivers are being crossed by new bridges and tunnels,
w-ill occupy a far larger place in the minds of city speculators
hereafter. "We mean by this that these fair fields are not to be
left exclusively to the rural operator; city companies will take a
hand in.the developing proceedings. A moderate city compact¬
ness some day will stretch far out into the country; up the Hud¬
son to Croton; along the Sound to New Rochelle; over Long
Island to Jamaica; along the Jersey shore; on the summit and
western slope of the Palisades to Tappan and Plermont, and
across Staten Island. All will be New Tork in fact If not in
name; and beyond Manhattan Island and the old parls of Brook¬
lyn the buildings will be mostly private residences for one or
two families. The construction unit will be small but Infinitely
multiplied;   the operations will  be enormous  in  the aggregate.