The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-04-22
REAL ESTATE.
Rents and How They Are Regarded
by Landlord and Tenant.
Existing Conditions of tho
Market.


the question OF rents prominently forward as an
important item not only In the economy OF the
daily life OF most OF our people, but also as affect
ing real estate An inquiry addressed on Saturday
TO gentleman whose opportunities are not ex-
ceeded by any one In New York for reaching a cor
rect conclusion provoked a reply In answer to the
question.
.'wHAr IS THE PRESENT CONDITION OF THE RENT
MARKET"
Extremely dull, SIR"
Further conversation. covering the whole ground
In connection with this subject developed the fol-
lowing statement OF the existing condition OF
things, previously pointed out here. and which
has provoked such harsh criticism from unln-
structed quarters. In the conversation which en-
sued after the preliminary introduction given above
1t was learned that rents this year drag heavily
much 80 that plain exhibit OF the situation
to the same previously uninstructed intelligence
that dare not look the present condition OF the
real estate market squarely in the face would be
appalling, and the interviewed requested the in
terviewer to so guard his ntterances that these
timid souls would not be driven into Mysteries
over business-like discussion of patent facts.
s'But, I" SAID the interviewed,
''HIGH PRICED HOUSES FIND NO APPLICANTS
The renting this year is more backward than 1t
has been ever before. Business has been so dull
that most men are seeking to reduce their ex-
penses, and those occupying $4,000 and $4,000
houses have notified their landlords that they could
not afford to pay such rent another year. The
landlords, OF course, put up bills and in most
cases those bills still up. In other cases the
landlord has gone TO his tenant, after finding
that the inquiry was short, and asked what
he was willing TO pay. The tenant thereupon felt
embarrassed, his ability and his disposition being
SO much below his previous contracts but the land
al a fanQ fnr q vvhn
and viewing the necessary deterioration which his
property would suffer In that period unoccupied,
as well as the accumulation OF taxes and assess
ments where there was no income, himself pro-
posed
A COMPROMISE.
Thus houses which rented last year for $4,000
have rented this year for $500, and those which
rented for $4,000 have let shis year Tor $780, This
Is not rule, however, nor is it permanency.
Rents are mainly adjusted this year between land
lord and tenant on the basis OF a compromise, the
tenant paying what he can afford and the
landlord taking what he can get. Leases,
however, are mostly for one year only, this
rangement being with the view to preserve prop
erty from damage through lack Of occupancy dur
ing the dull period, the expectation being that
next year there will be revival OF business and
consequently increased ability to pay higher rent
ais. In
the same feeling prevails. Tenants, or those seek
ing tenancy, are unwilling to make engagements
beyond the year and invariably seek concessions.
The quality OF business this year does not justify
heavy engagements hence the almost universal
6esire to curtaH expenses and the purpose Of re-
trenchment which finds this expression at the
beginning Of our rental year. The conviction Is
strong, however, not only among those who make
these concessions but also among those who
them, that it is but temporary, recedng wave
in the great nOod tide OF real estate values, and
that by and by will come o recovery when rents
VIII again go up precisely as prices OF lots Will,
when business Will have revived rom It's present
stagnatiOn and currency obtain more active crcu-
latlOn. The same condition OF things noticed here
in connection with the rent market is reflected in
rents should be the deduction OF the proprietary
right rather than the value OF the fee should be the
outgrowth OF rental value. etsuch Is the ordinary
appraisement made. and IN this pressure Tor lower
rents can be found
THE EXPRESSION OR EVIDENCE
OF the lesser disposition which at present prevails
20 invest in real estate. This lesser disposition
Mr.. Witthaus' property, which had been intro
duced to the market under the most favorable
strlcted oferng. with the only reservation that
the owner would withdraw 1t from the market II
the prices offered were not satisfactory. After one
lot had been knocked down Tor $4,000 the whole OF
the rest was withdrawn. Mr.. Witthaus undoubt-
ed!y did perfectly right. IL is said that lot cost
further sacrifice of this kind when he has the
ability to carry his property over to o
sell now ior what he paid Tor it does
not argue that 1t Will not sell Tor more than he
PAID or Il year from now OF two years or three s
terent to or above the necessities OF converting
real estate into currency he need not care what
may happen IN the meantime. What will happen,
that Is what Is likely to happen, aud which Is best
should happen, Is, that the
WEAK HOLDERS
of real estate will be compelled get out. The hope
iul investors that bought at extravagant figures,
snnking that the pillows OF excitement which sur,
prosperity. must come to grief when the market
relieved Of this perpetual menace to It's future
with fresh capital to stimulate 1t and new
shoulders to urge forward the wheels OF prog
ress In respect to improvements will recover
something OF Its old time vitality and animation,
unhappilv so long dormant, and carry us onward
perhaps TO values that have not yet been touched
In our widest maglnings 1t is favorite argument
among those who deprecate any statement that
might possibly cover the announcement that real
estate values had deprecated, that real estate
values In this city never recede-that they are
sometimes over discounted, when the market
takes pause until the value previously discounted
tervals OF rest that the danger comes from weak
holders, whose strained efforts to carry their prop
vokes dsfrust. and many OF them breaking down
stable values.
But to return to the subject OF rents.
THE QUESTION OF RAPID TRANSIT
becomes IN this connection the most practical
patent issue to real estate men OF the present
century. Our wretched system OF slow transit
dwaris us In the matter OF real estate growth
through the premium It offers by contrast with
rapid transit In New Jersey to citizens to seek
suburban residences. This ID evidenced in the
almost utter absence Of inquiry for the higher
priced houses OF our metropolitan fashion, previous
occupants OF such mansions comps omislng be-
tween the necessity OF reducing expenses, and
their purpose to maintain the same stylc by seek
ing villa residences convenient to the city, rather
than consent to occupy less fashionable or pre-
tenti0us establishment In the city, Cheap houses
that Is, low priced houses-are always In active de-
mand, ana this year does not prove an exception.
THE LOWER PRICED HOUSES
that Is, nom $1,000 to $1,000 also maintain fair
strength, but beyond that the contract Tor rental
appears to be as previously stated special between
landlord and tenant, with the years option. There
Is one thing which helps to maintain rents IN New
YORK, that Is the interruption that has occurred
during the past year in building operations. With
eight hours as days work and wages at their
present figure and money outside of Wall street