New-York tribune., 1902-03-13
a NEW REAL ESTATE SCHEME.
JANITORs SHARE IN THE PROFITS AND LOSS
OF APARTMENT HOUSES.

Owners of apartment houses and real estate
agents are watching with much interest the recent
Introduction in this city of a somewhat novel plan
for the management Of apartment houses whereby
the owner is said TO receive a greater net return
from his property than it has yielded him before,
and is. AT the same time, relieved Of all care Incl
dent to the management and maintenance of the
same. The plan involves an intricate cooperative
scheme, whereby the janitor. the engineer. the hall
boys. the elevator boys and even the scrubwo oman
who scours the doorsteps are alleged to partici-
pate in a share of the net profits which may accrue
from the property under the methods of man
agement.
Just how the properties in charge Of the concern
that has devised this so-caled cooperative plan
can he made to yield a larger income for any
length of time than formerly is quite apparent
Competent and experienced real estate agents de-
clare that such thing is impossible if the houses
in question properly conducted and kept in a
good condition They predict early failure of the
cooperative scheme. and assert that any owner
who falls in with the plan will have pay dearly
for the experiment
The promoters of the new plan, on the other
hand, declare that they have various ways Of
economizing in the expenses Of running a house
which agent or owner knows anything about.
The pay Of their janitors. for example. is based
on what they dO-nOt what they ought to do, 9"
their circular states and their salary is reduced
abused individual has got stand the brunt of the
which, a rule, brings with it the maledctions Of
me tenants and ends in their removal TO another
place.
Another important featae Of the system of the
cooperative management concern is to keep an
elanorate tabuldted record Of each tenant,
what day and hour he pays his rent. how many
complaints he has made in the course of the month
now often his neiEhbors have complained of him,
Wnat repairs ne has demanded, how many chill
dren he has now often he and the members of
MS FAMILY wont 10 ride in the elevator. and
on. with list OF irrcvelant information Calcu-
lated 70 bcwider even Philadelphia lawyer. II a
tenant proves himself too obStreperouS, and Is eX-
pensiVe and Improbable, the mana agement stops
the leak oy. getting another tenant, the natural
inference being that the usual difficulty Of
ing new tenant is unknown 10 this concern. But
this need no longer Worry the owner OF the house
All that he does nov under this new plan is 10
cash the check which the cooperative concern has
promised to send him every month
Tine scheme may look very attra ctive on paper" ="
said prominent Fifth-ave. real estate agent yes
terday. but every experiment of this kind which
has been made before has resulted in a considera-
bic loss 70 the owner Of the property He invara-
ply gets his building back in condition where he
has 20 spend n round cf 90 put ~ in
shape again. If an apartment house has once been
allowed to run down. II IS the hardest thing in the
world to build 4 up again and maintain the old
rent schedule The claim of being able 70 reduce
the cost Of management materially IS all moon
shine 80
Another real estate agent said laconicauy: The
only way lessee can make any money out Of a
house the plan Of this cooperative concern is
get all the milk Of the CoCOanut and give the
owner back the she'll