Columbia University Libraries Digital Collections: The Real Estate Record

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December IS, 1917 RECORD AND GUIDE 773 BUILDING MANAGEMENT NECESSITY FOR RAISING RENTS EXPLAINED BY WESTERN MANAGER THE necessity for the increased ever, the great amount of capital in- our envy may turn to pity as we hear rentals for many types of both vested in real estate must secure some the wail of the taxpayer on May 31. bii.inp^<; and residence orooerties which i"eturn, and in order to make this pos- Why does this man complain? Why business and residence properties wmcn ^^^^^ .^ .^ p^^^^^^ ^^^^^ rentals cannot does he own property? were put into force this tail has been remain static. Realtors and landlords "Primarily, his purchase of property evident to office building managers and should use every means of informing is an investment. On this investment realtors for a long time. During the the public concerning conditions such he expects to get a fair return, com- summer there was quite a general in- as we have mentioned so that in cases mensurate with the risks of ownership, crease in rentals for residence prop- where it is necessary to advance rentals The money could be put into mortgages erties, especially such as are heated. the public will not feel aggrieved. If or bonds and earn 6 per cent, for all However, there has been no corre- during the coming year it should prove time. If property is purchased instead sponding increase in rentals for busi- necessary to advance rentals still and developed and cared for it cannot ness property. further in order to prevent the wiping be rightfully disputed that its net re- Dunng the past five years rents have out of all net returns the public should turn should be greater than this. This been practically static until this fall. know that such an advance is due percentage of income should not de- This condition has been maintained in entirely to economic conditions, over crease as time goes on. Therefore, as spite of a constantly increasing rise in which the landlord and the realtor have our city grows and the values go up maintenance costs for every type of no control. Practically every article and taxes increase, rents must go up property. necessary for the maintenance of prop- to keep the balance. Rent goes into During this period rentals for heated erty is still increasing steadily in price, overhead; overhead goes into cost, and apartments have been practically sta- and the end is not yet in sight. How the public buys goods enough above tionary. Allowing for the usual differ- far the cessation of the war would cost to giv£ the merchant his profit. ences of rental as between new and affect prices and wages no one can fore- "On downtown property it is the ex- old byildings, and the fluctuations tell. It is not probable, however, that ception if the taxes do not exceed 15 which occur in dift'erent neighborhoods, there would be any immediate recession per cent, of the gross income, while 18 the ordinary householder has, until this of prices. The same is true of wages. to 20 per cent, is the rule. There are fall, been able to obtain an apartment Therefore realtors and landlords will many instances where the ratio of the or a house at practically the same figure be compelled to figure their rentals amount paid for taxes to the gross in- in 1916-17 as in 1912. upon the basis of present prices of come has increased within the last ten The same is true of_ business prop- materials and present wages. years from 18 to 28 per cent, erties as a whole. For instance, a com- Of the relation of taxes to realty in- "This means an increase in some pilation of the average square foot come. Ell Torrance writes: rents, the justice of which it is hard rentals of office buildings in Minne- "Does it mean anything to you when to convince the tenant. The fact re- apolis, including such buildings as the you see a new high value for the tax- mains, nevertheless, that the item of Security, McKnight and the Plymouth, able property of our city? Every taxation is becoming more important shows that in 1912 the gross returns second year the assessor flatters us each year, and the tenant sooner or averaged about $1.14 per square foot. with a staggering increase in the value later will feel the full responsibility of In 1917 the average gross receipts for of real estate, and for the moment we seeing that the money collected through the same group of buildings, including envy the fortunate land owner. Later taxation is wisely expended.'* those given above, averaged about $1.18, ------ showing an advance of 4 cents per PROBLEMS CONSIDERED. the service rendered. Many buildings square foot, or less than 4 per cent. -------- have the night watchman operate the ^iVr/-J^^ ^y^^- ^^^^ .period, from 1912 New York Building Managers' Associa- elevator for tenants. No charge is to 917 inclusive, maintenance costs of ti^„ Receives Reports from "^^de for this service. all kinds have nsen with great rapidity. Committees. i" an effort to lessen the increase in Everythingnecessaryfor the proper up- rj^ hE New York Building Managers' ^^^'' ^"^ ^^^^ ^^ 1^^^ ^''^ property, keep of property, including both labor | ^^ ^^^"^^ lork building Managers Commissioner John J. Murphy of the and materials, has been steadily in- * Association is investigating a num- Tenement House Department; has is- creasing in cost. Below is given a ber of problems which have been the sued to all tenement house owners, a table which includes a. few of the source of a great amount of annoy- warning to keep dumbwaiter shafts free things in constant use in and about an * •. l , from rubbish tn U-ppn f.rp ^cnnr,*>c ;« nfflre hiiilHinp- anrl the inrrpp<;p in nrire ^^^^^' ^^ ^^^ members, and expense to ruDDisn, to keep nre escapes in ottice building and ttie increase m price ^^^ers An investigation has been ^^'^'^ ^""^^^ ^"^ t° ^^^P "leans of egress for a period covering the last three ^vvncii. mi invesugaiion nas oeen from buildino's rlpar Thf> CrMr^mUcfr^-n^^ ^ ^ made of employees m apartment houses, ^[^[^ ouuaings clear, ine Commissioner ^ and reports received from several of f^^?^ ^2^^ ^^'^ Department finds de- Coal .......................... 100% the uptown managers of this class of i^ctive tire escapes all over the city. Waste ........................ 50% structure, indicate that women em- even on new-law houses. The law corn- Oils ........................... 30% ployees make satisfactory elevator P^^^ ^^^ owner to repair fire escapes, Soap ......................... 100% operators. ^^ ^° replace those beyond reclaiming. Brushes ...................... 40% Women have been substituted for V^^ ^o^' situation is becoming more Sponges ...................... 20% men in many of the high-class East serious each day. Freight congestion Chamois ...................... 50% Side houses, and instead of being a f"*^ priority shipments, together with Brooms ....................... 45% makeshift, the service in general has ^^bor trouble at the mines, have brought Toilet Paper.................. 100% improved to such an extent as to excite ^^^otit the most serious shortage experi- Cables ........................ 40% favorable comment from tenants. The enced in years. ^ Paint ......................... 60% wages paid to the women is less than ^"^^^ Administrator Garfield has Oil, Boiled .................... 1007o that demanded by the men, and up to "i"ged the President to endorse the im- Varnish ...................... 17% the present time they have proved more J^ediate enactment of daylight saving Pails .......................... 133% reliable. The shortage of men elevator legislation. It is said that in England, Mops ......................... 75% runners which promised to be serious ^*jO.